Lean v/s Fat startup: which one do you prefer??

This can be a tough question to answer. It really depends on what's being started, when and how.

Sometimes you should consider the "fat" start-up because sometimes you might need a little extra cushion in case extra problems arise or you need extra support.

If you start out too "lean" then if a need arises you might not have the resources to support you.

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Thanks for the referral Ms.Veena  Ultimately in both cases, the important factor is the Return on Investment. Hence the ivestment needs proper planning and strategy to minimizes wastages and uneconomical & unproductive spending. The mission for the investment should not derail 

Fat funding at the start up is more preferable than lean idea. If our plans, management, budgeting are proper & we are aware about not only for present conditions but also for unforeseen circumstances then i don't think so we will go for lean funding. 

We are going to start up a business which is synonymous of Risk. But if we are not sure in our planning then lean funding are also worthless.

The funding entirely depends on the start up plan as per the blueprint of the company. These matters is always discussed between the CEO and the board in terms of break even time on the funding.

I am taking into account that the product/s are market fit. The initial expenditure on advertisment is much higher than the norm which is 3% and during the end of second year of operation there should be ideally no loss or no profit on acheiving this from third year the profit should come. I dont want to go into further details salary structures, travelling expenses etc since at the begining they will be much higher than the standered norms.

So the funding depends mostly on the above factors for a standered company.

i support Veena,Fat start up for product /Market fit,if the strategy does not die of its own cause.

Starting with fat funding or lean funding depends on the entrepreneur's strategy, capacity and risk taking ability. If entrepreneur has little fund and has risk taking ability then he will start with lean fund with the plan to invest more and more money to bring growth in the business which is the time taking factor. But  if an entrepreneur has fat fund, low risk taking ability then again a lean start will be there. If the big entrepreneur has fat fund, want to get success immediate, high risk taking capacity then a fat start will b there. So ultimately a conclusion is that a fat fund is the actual requirement for creating mind share and grow in the short span of time but if the fund is lean then lean start will always take place.

Dear Friend K.Narayan,

I think now is a different time than when the Big Giants initiated their start-ups. What I feel is to visualize & get it into action are very eminent in such cases. This is an endless debate as according to me every start-up is incubated estimating to succeed. There are many other factors which will influence the failure rather than the funding pattern. Ofcourse I totally agree with fat funding so as to save the failure.

I support more Fat Funding in place of Lean pattern. But one has to be very careful in planning and budgeting the flow & usage of the fund. To me lack of planning, budgeting, execution, experience, strategies, networks, uniqueness and follow-ups are very vital than the question in progress.

Fat funding gives ample space to grow while as Lean doesn't allow to spend wisely keeping the company to shrink. If the CEO and a very small team manages on their own than it's a different story.That is very rare. People try to present themselves as Garage based companies without distinctly owning such qualities.

I understand the market risks but the important point here is that to make one's organization grow gradually initially and than pick-up the pace it is vital to have Fat funding.

Parag Shah