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What do we know about “Cockroach Startups”?

by 3dots-blog June 23, 2022

We have seen unicorn startups like Paytm, Zomato, CRED, Dream 11 and many more making headlines every other day. That’s how they became unicorns in the first place. These unicorns also tend to plummet at the same speed at which they ascended to the top spot. That’s the reason they always tend to be an unpredictable lot too. They are the ones who take the risk and enter the realm of IPO with complete knowledge that the equity business is volatile, just like their business. Now, let’s dwell on something completely contrary. Ever heard about the opposite of Unicorns? Cockroach! Yep! That’s what we call a “Cockroach Startup”! This article quite interestingly elaborates on the concept of a cockroach startup and how different it is from a unicorn startup.

The pest way is the best?

If you’ve watched Narcos, the intro scene of the very first season tells you the whole story about how a cockroach can survive a nuclear holocaust, withstand extreme radiation and is capable of living for a week, even after being decapitated. Now, why did the “Cockroach Startups” get christened that way?

Let’s look at the attributes of a cockroach that makes it such a formidable pest, but in the best possible way:

The Bear Grylls on Mission Survive: If pests had a reality show in a parallel universe, cockroaches would be representing Bear Grylls on how to survive every storm. Cockroaches are one of the most prevalent pests who have been in survival mode for over 320 million years, even before the lead creatures on Jurassic Park existed.

They are Hydra: Cut one head, and five more will grow in its place. Yes! Cockroaches have the ability to survive for weeks even after being decapitated. That’s their superpower! Their growth rate is phenomenal.

They are six-legged Monks: If there are anything cockroaches are good at, they are very patient. They can live without food for days and as startups, it is one thing that they learn is, that slow and steady wins the race.

Cockroach Startup Model

Every time we are introduced to something that we cannot relate to, we tend to neglect it or trivialize it. Cockroach startups tend to be that ugly new friend. These startups usually focus on long-term aspects like sustainability, patience and low-risk investments.

Unlike the Unicorns which have a valuation of $1 billion or more, cockroach startups take it slow and sustainably. They focus on cost control and the growth is unaffected by the market condition.

One thing that cockroach startups are good at is their indomitable focus. They have their vision fixated on profit rather than market share. They aren’t in a hurry to become the world’s favourite overnight. They are firm believers of Rome wasn’t built in a day. They take it one day at a time, and spend less on fixed assets. Founders of cockroach startups save bucks by renting a co-working space instead of owning a fancy workplace.

Another reason why cockroach startups survive the storm is they channel their energy towards improving their products or services. Unicorns tend to keep their product or service in the trunk and shine the spotlight on getting more funding. Businesses pick up speed only when the core offering is concrete and in a condition to using. There’s no dream that they sell. These kinds of startups build up to something the customers can use right away.

In its totality, in the startup realm, resilient, shudder-worthy cockroaches that survive the day, are more looked up, to rather than the unrealistic, mythical, dreamy, Unicorns. At 3 Dots Design Pvt. Ltd., being one of the best advertising agencies in Pune, we cater to businesses across all categories. With our diverse clientele ranging from healthcare, retail, and real estate, to events, our team of strategists, artists & content writers, we take our creative game a notch above, one campaign at a time. If you wish to know more about who we are or what we do, please visit www.3dotsdesign.in or get in touch with us at [email protected]

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