Ready Reckoner for your Entrepreneurial Dream

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Presented By:

Dr. Sachin S. VernekarDirector, BVIMR – New Delhi

Ten Tips to Become Your Own Boss:

What is Entrepreneurship? “Entrepreneurship is all about an idea which

creates differentiated business value to customers”, said Mr. N.R. Narayana Murthy, Chairman Emeritus of Infosys Technologies. (Source: The Hindu – Business Line in an excerpt from “TieCon Hubli-2012”).

JOSEPH SCHUMPETER View on Entrepreneurship, “A process where established ways of doing things are destroyed by the creation of new and better ways of getting things done.”

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What drives Entrepreneurship?

“A principal factor in entrepreneurial achievement is persistent curiosity.”

The above statement is the key factor for major revolutionaries like Steve Jobs (Co-founder of Apple), Bill Gates (Microsoft's software wizard), Mark Zuckerberg (Founder of Facebook), Sergey Brin & Larry Page (Co-founders of Google) who have been the renaissance in their own industries, delivering the world new products and businesses and creating enormous wealth for themselves, their associates, stockholders, and society at large.

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Ten Commandments of Entrepreneurial Dream

1. Prepare Your Family – Pillar of Support – My wife wasn’t too comfortable with my entrepreneurial zeal, so we agreed to give it a year. If I failed to zero in on something within this period, I would return to a job Rivi Varghese, Customer XPs ( A Real - Time Intelligent Customer Experience Management Solutions for Banking, Retail and Telecom Industries).

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Ten Commandments of Entrepreneurial Dream

2. Plan Your Finances –You might not earn anything in the first 2-3 years, so you need to plan your family’s finances accordingly. A capital cushion is essential to ensure that your family lives comfortably – Ashutosh Garg, Guardian Lifecare (Guardian Lifecare Private Limited is an eight-year-old retail chain of health and wellness stores ).

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Ten Commandments of Entrepreneurial Dream

3. Forget The Job Perks – As a manager in a company, you are accustomed to other people doing things for you. In a start – up, you have to care of everything yourself – from operational expenses to food bills – Jiggy George, Dream Theatre (Official site for band and some of their side projects. Information includes tour dates, discography, album reviews, tablatures, sound clips, photos, links and an online shopping store).

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Ten Commandments of Entrepreneurial Dream

4. Learn to Cope With Failure – I met 15 VCs before one agreed to fund me. One investor rejected my proposal within five minutes of a presentation. Instead, he spent an hour trying to convince me to go back to my job - Treat failure as a Stepping Stone – Kunal Bahl, Snapdeal (Snapdeal is India's best daily deals website offering up to 90% discounts on dining, health & beauty services, travel, apparels & branded products like mobiles, clothes, watches etc. )

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Ten Commandments of Entrepreneurial Dream

5. Have a Plan that is Unique – The business plan should be unique and clutter free. An entrepreneur must look into his area of core competence and use it to devise a strong plan – Kavindra Mishra, Zovi.com ( An exclusive online apparel brand in India; quality mens & womens apparels, formal shirts and leather belts )

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Ten Commandments of Entrepreneurial Dream

6. Belief in Yourself - Belief in one’s idea can take you a long way. Our concept was ahead of its time, but I didn’t give up on my vision. At every step, there were people who ridiculed the idea. I had the last laugh– VSS Mani, Just Dial (Just Dial India's No.1 local search engine provides comprehensive updated information on all B2B and B2C Products and Services).

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Ten Commandments of Entrepreneurial Dream

7. Interact with Like – Minded – My partner Abhishek was running an e-commerce portal, which was acquired by a bigger website. He expressed interest in working with me and we launched our site – Chetan Bafna, Fetise.com (Fetise is India's first online shopping community for Men - selling apparels, shoes and accessories from contemporary luxury brands).

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Ten Commandments of Entrepreneurial Dream

8. Gain Enough Experience – I used to teach at a diving centre in Lakshadweep. After teaching more than 600 students for eight years. I decided to float my own diving company – Anees Adenwala, Orca Dive Club (Orca Dive Club offers dive solutions for beginners and experienced divers, our aim is to bring the sport of SCUBA closer to the people of India).

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Ten Commandments of Entrepreneurial Dream

9. Don’t Take Too Much Debt – If you are thinking of starting up, this is the best time. But don’t take a home loan since it kills entrepreneurship. You can never get out of it – Binny Bansal, Flipkart (Flipkart is among India's largest online retailers. It is an electronic commerce company headquartered in Bangalore, Karnataka, India).

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Ten Commandments of Entrepreneurial Dream

10. Have a Plan “B” Ready – After the first few months, we realised that service was not our core competence. Besides, the margins were quite low. This was the time we concluded that it was better to focus on products – Rahul Anand, Happily Unmarried (Happily Unmarried is a product design brand from India).

(Source : Excerpt from “How to Fund a Start – Up, The Times of India, February 6, 2012, Page No. 18 ).

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How to Fund a START-UP :

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Ideal Time for Start - Up

Students, Women, the unemployed facing a mid-life crisis have succumbed to the e-bug.

Conducive Environment for Venture Capitalists.

Landing Funds to fuel your venture has become more easier.

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Fudging between alternatives of Financing

Bootstrapping – falling back on savings, fixed assets and money from friends and family is no longer the key mantra but still the most preferred alternative.

It usually means scrimping on capital, which in turn curtails the flexibility and ability to grow.

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Fudging between alternatives of Financing contd..

A less risky way to raise seed capital (at the initiation stage) is to pool resources with a group of people who have shared interests and work together to escalate a business idea to at least a prototype.

A good option when one is sure of the scalability of one’s venture, not obsessive about retaining independent control.

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Fudging between alternatives of Financing contd..

Private Funding, a good option and comes in various forms typically catering to different stages of a start –up such as the seed stage, early stage and growth stage.

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Venture Capital – The New Buzz Word

In India the Venture Capital operates through a Network of :

Angel Investors Venture Capitalists Incubators

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Angel Investors:

These are high net worth individuals who invest in a start up in return for a minority share in the business.

They are usually serial entrepreneurs or heads of major multinational firms.

They can also be a group of individuals who pool in funds to invest.

Key Networks include Mumbai Angels, Indian Angel Network, Pune Tech Angels.

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Venture Capitalists:

Invest at an early stage of a start-up; invest their shareholders money in start-ups in return for a minority share in the company

Practically the only option that gives entrepreneurs access to deep pockets at a time when they are trying to build the company.

Examples – Accel India Venture Fund, Seedfund, Nexus India Capital, Sequola Capital. 21

Incubators:

Incubation is a dynamic process of business development.

Incubators nurture young firms, helping them to survive in their early stage.

Incubators provide: Infrastructural support i.e. physical (office) space,

meeting room Platform to do networking, capital, coaching Management assistance Other support services, specific to incubators Example - STPI (Software technology parks)

and CIIE, IIMA.22

Five Entrepreneurial Skills You Need To Build a Successful Business

1. Personal Skills2. Communication skill3. Negotiation skill4. Leadership skill5. Sales skill

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Entrepreneurship Development in MSME’s – A Road towards Sustainabilty India devised a definitive development strategy

since Independence for achieving economic growth with self-reliance, social justice and alleviation of poverty.

In this strategy, the micro, small and medium enterprise (MSME) sector has been accorded a pivotal role in the industrial resurgence of India.

Entrepreneurship Development in MSME’s is playing a vital role in generation of employment, dispersal of economy and better utilisation of resources.

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Entrepreneurship Development in MSME’s – A Road towards Sustainabilty The National Small Industries Corporation, the

Khadi and Village Industries Commission (KVIC) and the Coir Board provide promotional and developmental policies provide support in the areas of finance, technology and quality upgradation, marketing and infrastructural support, entrepreneurial development and fiscal incentives to the MSMEs.

The policies to encourage the development of micro and small industries, which include khadi, village and artisanal enterprises, is a vital component of the Indian industrial growth.

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Entrepreneurship Development in MSME’s – A Road towards Sustainabilty The continuous support provided to the sector

has resulted in the development of a large reservoir of first generation entrepreneurs and has facilitated the sector to acquire a place of prominence in the socio-economic development of the country.

The Government has launched Rajiv Gandhi Udyami Mitra Yojana, for “Promotion and Handholding of Micro and Small Enterprises” to help and facilitate potential first-generation entrepreneurs to complete various formalities and tasks necessary for setting up their enterprises. 26

Entrepreneurship Development in MSME’s – A Road towards Sustainabilty It is a significant initiative with attractive

subsidy levels for promoting self-employment setting up micro enterprises with special focus on rural areas.

It has led to significant developments in food processing industry, IT industry/IT-enabled services, machine tools, medical equipment, textile machinery, pharmaceuticals, mining equipment, auto-component, etc. incorporating pollution control measures in the rural sector thus providing a means to achieve sustainability in the long run for India.

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Entrepreneurship Development in MSME’s – A Road towards SustainabiltyThus, Entrepreneurship Development will lead to: To increase production and to achieve a high

level of national and per capita incomes. To achieve full employment. To reduce inequalities of income and wealth. To create a society based on equality, justice

and absence of exploitation.

LEADING TO SUSTAINABLE DEVELOPMENT

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Think and Act !!!!!!! – Be the Agent of Positive Change

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Thank You

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