Startups have fallen prey to groupthink and as a result, exorbitant spending habits have become the order of the day. Deep pockets of venture capitalists are pushing these Startups to spend on slick interior office design, marketing campaigns, recruitment of the best talent pool etc. Millions being spent with no thought on how sustainable these businesses are is a cause for concern. It is wise to be frugal at a stage when one is laying the foundation of the company. Swanky cars and glitzy parties send out the wrong message to employees associated with the company. With funding happening left, right and centre, it is hard to sift through the crowd for companies with character, vision and value. Marketing gimmicks can create an illusion but for how long? Once the money runs out, the company fizzles out too and no one bothers to check what the hell went wrong with that company that seemed so promising a few months back. This has been the story of many a companies in Startup land: Get funding, spend like there’s no tomorrow, make unreal promises, give up and shut shop when the going gets tough.
Before you spend preposterous sums on a fashionable office, ask yourself how it adds value to your product or your brand image for that matter. Great companies in the past who do exceedingly well even today started small and showed restraint required to enjoy long term success. Prices are ever-increasing and one needs to think ahead about sustaining what they begin. By focusing on improving quality of the product or service, one stands a better chance of survival. When one is convinced of the quality of their offering, there’s very little that needs to be done to make the right noises. The brilliance of a diamond is such that it cannot be hidden. People go an extra mile to find the diamond hidden in a mine. It shines through no matter what and it is this brilliance that ensures lasting success. One needs to focus on polishing the edges and give a much needed break to the marketing gimmicks and antics that burn an irreparable hole in the pocket.