It is very important to not give up too early after starting a firm. That’s one big mistake a lot of people make. Many people start but the mortality rate of companies is 90 per cent-plus in the first year and 99 per cent by the third year, said Venkat Viswanathan, Founder of Chennai-based LatentView Analytics.
On November 23, the data and analytics company made a stellar debut on stock exchanges by getting listed at a premium of 169 per cent over its issue price on the Bombay Stock Exchange. The stock price has been soaring since then.
Viswanathan said that it is very important for entrepreneurs to survive through the first five years.
He added, once you do that, you may realise that while you may not be working in the same idea, you will be rewarded for your sheer persistence as opportunities come in your way. Customers will believe in you more and people will see in you the importance of persistence.
“If there is one message that I can tell, this is the one,” he said when asked what was his message to founders who are in the scaling up period. He was interacting with V Shankar, Founder, CAMS, in a Fireside at CII Connect2021.
When asked how to handle failures, Viswanathan said, “I am eternally optimistic and quickly forget failures. I can’t even recall anything going wrong in the last 15 years but entrepreneurship is all about High Highs, Low Lows.”
Also see: Investors have rewarded our GOPGC model, says LatentView Analytics CEOHe added that it is good that India has normalised some of this in terms of being able to take risks and not be so much worried about consequences. “We have had, as a small company, many setbacks in customer relationships, financing lines or other issues. But, as long as you maintain a positive attitude and believe that good things happen to good people, you have to stay put and things will come around. Invariably it has and that’s the way we have approached this,” he said.
“I don’t believe that failure is a blackmark and people don’t need to worry so much,” Viswanathan added.