Saturday, December 15, 2012

Technology Product Services : "Putting Eggs On More Baskets"

Dear Readers,

We could see many semiconductor product technology services companies have been launched in last few years. Recently I read one article on EE Times India which says "Indian Startup Stats: 379 tech startups launched; 87 closed" This article describes that Indian entrepreneurs are moving ahead with their technology and business experience. Most of the companies are able to make the success in Product Services, Pure Services, Product Development in the field of Technology Products.

I was discussing these with some of the experienced and successful person in the Technology field and concluded that "Putting Eggs on more Bakets" is the safe and Smart way to get succeed and to make the sustainable business. There are many painful things when somebody is starting a company in technology product service field, like Raising an initial Fund, Quick Revenue flow, To get consumers for business etc. These are the common challenges for any new comers in the business field but analysis says that many Indian companies are able to manage these initial pains and proved themselves and came out from this phase.

Once the company comes out from initial pain and revenue starts flowing with the business expansion, second challenge for company is to improve and maintain the business review flow to make the better place in the business field. Experience and study shows that most of the company follows 'Putting Eggs on more Basket' strategy for better stability for long term future.

Putting Eggs on more Basket means expanding customer base or dealing with more customer. In this type of Business Model, In case if one of your customer failed in their business and you lost them, you wont be in serious trouble (definitely there will be impact on business but mostly those are manageable with quick management decision) because you have eggs (service business) on more Baskets (customers). So you wont be completely stuck or in trouble, your revenue flow will not get completely stopped and you can spend your effort to expand your customer base with the help of your ongoing revenue flow and mostly you can be back on track quickly. Most of the services company works on this type of business model for better stability

Ultimately most of the companies are in service directly or indirectly!

Enjoy
ASIC With Ankit   

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