When it comes to startups, there seems to be a big debate going on over profitability and growth potential. Interestingly, this discussion continues from both a startup owner’s perspective and an investor’s perspective. If there is a problem with deliberations in an interactive session hosted by the Bengal National Chamber of Commerce and Industry (BNCCI), Kolkata, it is not a question of choice, but of balance. Therefore, growth is necessary not only in the first year, but also on an ongoing basis. On the other hand, profitability varies from sector to sector, so each sector has different growth and profitability prospects in terms of years. Both profitability and growth are critical to a successful business continuity and are necessary for a company to survive and remain attractive to investors and analysts. Of course, profitability is important for a company’s survival, but growth is important for its long-term survival. Panel discussion speakers on ‘Startup Focus – Profitability or Growth’ included Professor Santanu Ray, STPI Director Manjit Nayak, Sunetch Venture CEO Digbijoy Chakraborty, and PKS Capital Advisory LLP CEO Somenath Chatterjee. It contained the brains of
Keep in mind that startups have always been a key driver of economic and business activity for India. The greatest driver of their success is the policy environment created in this country. With some of the government’s recent announcements, startups are getting a huge boost leading to endless growth potential in India. India has the fastest growing startup ecosystem with technology investments reaching peak scale. The good news is that startup funding opportunities have been enhanced through the Fund of Funds Scheme with an overlay of Rs10,000 crore and the recently launched Startup India Seed Fund Scheme with an expenditure of Rs 945 crore . Aspiring entrepreneurs should take advantage of this and take the startup ecosystem to the next level.
But what should investors look for while pumping money for a startup? Growth or profitability? Experts say that both profitability and growth matter in today’s terms. thinking about. There is no future profitability without growth. Companies need to get on a growth trajectory. But it’s equally important for startups to look at operating profit. Growing companies may not be profitable yet, but they can still offer great investment opportunities. In some cases, lack of profitability can be a big red flag that something is wrong with your company. Determining and weighing profitability at the time of company launch or start-up is essential. Market and sales growth, on the other hand, are the means to achieve that initial profit. Identifying growth opportunities should be the next big item on a company’s list of goals after the company moves beyond the start-up stage. So decisions about whether to drive more profitable growth will vary and need to change from time to time and from startup to startup. There is no “one size fits all” strategy for funding a startup.