Indian startup founders prepare two operational routes during a daylight meeting about Plan B and business risks.

Chapter 9: Step 6, Always Have a Plan B

2 min read

Part 9 of 19 in How to Make Your Own Luck: A Guide for Indian Founders

This chapter explains why Indian companies need backup plans for funding, regulation, and key employee changes. It helps founders prepare alternatives for major risks and avoid depending on a single outcome.

Quick Summary

  • Funding winters, regulatory circulars, and key employee resignations can happen without warning.
  • Companies that survive have already thought through alternative paths.
  • Zerodha stayed profitable and avoided venture capital for years, reducing dependence on its next funding round.
  • Many SaaS founders keep a 12-month path to profitability ready while pursuing growth.
  • Founders should document one rough Plan B for each of their top three risks.

In India, Plan B is not optional. A funding winter, a sudden regulatory circular, or a key employee resignation can arrive without warning. Companies that survive have pre-thought alternatives.

Zerodha’s decision to remain profitable and avoid venture capital for years was itself a form of Plan B, they were never dependent on the next round. Many SaaS founders now keep a “path to profitability in 12 months” scenario ready even while pursuing growth.

Document at least one rough Plan B for your top three risks. AI can generate scenarios quickly: “If our next funding round is delayed by six months, what are three viable paths that keep the company alive?”

Frequently asked questions

Why is Plan B important for Indian startups?

Funding winters, sudden regulatory circulars, and key employee resignations can arrive without warning. Pre-thought alternatives help companies survive.

How did Zerodha use a Plan B?

Zerodha remained profitable and avoided venture capital for years, so it was never dependent on the next funding round.

What should founders include in a Plan B?

Founders should document at least one rough alternative for each of their top three risks.

How can AI help create startup backup plans?

AI can quickly generate scenarios, such as three viable paths to keep a company alive if its next funding round is delayed by six months.

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