Cockroach Startups : A Market Survival Strategy

Cockroach Startups : A Market Survival Strategy
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Not only in India but worldwide, the startup ecosystem is flourishing with full fledge. The market also welcomes these new growing businesses as they come up with new ideas and fill the market with new sensations. Startups are different from traditional businesses because they work on new innovative ideas and dare to go offbeat and take calculative risks. Organizations like these are the need of the time. There was a great boom in the market brought about by these new budding companies which played a significant role in the country’s economy. So the need of the market paved the way for many new unicorn companies (companies that reach a valuation of $1 billion without being listed on the stock market)

Need of Cockroach Startup:

The market is infatuated with stories of early success, scaling, and profit growing exponentially in new startups. But the harsh reality is that market competition is beyond imagination. Most startups do not last more than ten years. This means that the market is full of uncertainty and investor money is at significant risk. This risk brought the idea of a Cockroach startup, which can survive in adverse market conditions. These startups adapt themselves very quickly according to the market needs.

What is a cockroach startup?

Cockroach startups are businesses that seek to make a profit with low capital. After the pandemic, uncertainty waves blew the market. They shook it completely which made the investors more aware of their investments creating an even bigger challenge for startups to raise money. As a result, these startups have mastered the art of survival and adapt quickly to the ever-changing market. With the right knowledge and experience, they know where and how to spend and where not to spend their money.

Why the name “Cockroach”?

The name “cockroach” is given to these startups because of these qualities –

  • The ability of cockroaches to sustain for a week without a head.
  • Cockroaches multiply at a tremendous rate.
  • They can survive for a long time without food.
  • They can even survive a nuclear explosion.

In a similar way, these startups also show the following characteristics –

  • Businesses run with a low salary and a low financial cost budget. Obstacles must be resolved to continue living.
  • The rate of growth is high.
  • Constantly adapts to changes according to market conditions.
  • Survive in the worst conditions, like a nuclear explosion, by implementing many strategies.


Key characteristics of Cockroach startup :-


Sustainability: Cockroach startups focus on sustainability and their growth planning is based on keeping costs low and focusing on the product.

Adaptation: A cockroach startup is one that, keeps moving in the forward direction in spite of the challenges, just like a cockroach, by changing its path.

Less investment in fixed assets: These startups avoid spending money on fixed assets like buildings, furniture or gadgets etc. They prefer renting the assets rather than owning them.

Focus on profit instead of market share: Cockroach startups do not make haste to become the favourite in the market by spending bucks on advertisements, their focus always remains on increasing revenues and profits through product qualities and customer satisfaction.

Product quality: The quality of the product is the key to surviving in the competitive market. Hence cockroach startups put their energies and money into improving their product or services.

Skilled employee: These companies hire their employees very wisely as they know that a well-organised team of professional brains is the only way to grow.


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