Why Startups Should Not Follow Vijay Mallya’s Business Model

A must-have book for all the young entrepreneurs.

A must-have book for all startups. (Photo: Lijumol Joseph/ The Quint)

Ready, steady, startup!

The magical words have cast their spell on the startup universe of India. Today, startup founders are the privileged classes, who get to enjoy government schemes and wear a sorry look on their faces.

Last year on Independence Day, Narendra Modi initiated ‘Start Up India, Stand Up India,’ to encourage the startup industry. The scheme provided that startups would not have to pay any taxes for the first three years from their day of launch.

This is all very noble, dear Prime Minister, but the problem with Indians is that we are a bunch of ‘baniya-minded’ aka money-minded people, and once we get too comfortable with such ‘free’ ka schemes, they make life difficult later on. We wondered if Vijay Mallya too became a victim of the very same thoughts which resulted in banks running after him and him fleeing the country.

Now, you wouldn’t want that. Would you? Let The Quint give you a crash course in what not to learn from Vijay Mallya’s business model.

Profit-Making Business Model

Yes, we know you own a startup and not a genie who’ll make your profitable dreams come true from the word ‘go’. But by the first few years, you should consider the way your company’s profit graph looks depending on your revenue model, and if it doesn’t look good, then it’s time for you to rework the model.

And let’s be honest, every startup’s profit graph cannot look like The Quint‘s (wink, wink).

Be a Good Captain

A good captain is not only one who goes down with his ship, but who at least tries to ensure that his crew is safe. Unfortunately, captain Vijay Mallya failed in his duties.

If, at any point, you plan to shut shop, try to make sure you pay your employees their salaries and inform them of the financial crisis the company is facing. Your employees must be your priority. You’ll not only earn their respect but also their support, which in such situations could be pretty helpful.

Tone it Down!

There’s a golden rule in business: Your company’s money is not your money.

The sooner you remember this, the better it is for your organisation. It’s not just your money, but your investors’ money that you blow while leading the ‘king of good times’ lifestyle.

There are always rough patches in business, and that’s when you need to tighten your purse strings considerably. If only Vijay Mallya knew how to cut down his exorbitant wishlist and plan his annual budget right.

While the airline was on the verge of being grounded, Mallya went ahead and spent big bucks on his IPL team and the Kingfisher calendar.

Own Up and Move On. Not Move Away.

We are human and we all make mistakes. Mallya made Rs 9,000 crore mistake. What he should have done was accept his responsibility and seek help instead of fleeing the country. He should have stood tall and defended himself, instead of defending himself from a distance on social media like a coward.