Entrepreneurs don’t fear to tread What takes to get started You are the Man!: How the power of you can make it all happen
Did you Know? <ul><li>Life is about  </li></ul><ul><li>Creating Value </li></ul><ul><li>Taking Risks </li></ul><ul><li>Lis...
Reality of Entrepreneurship <ul><li>Why arn’t there enough Entrepreneurs? </li></ul><ul><li>Failure. Fear of Failure. Road...
Important Quote <ul><li>“ Your work is going to fill a large part of your life and only way to be truly satisfied is to do...
If Decided to love what you do? <ul><li>Welcome to Entrepreneurship </li></ul><ul><li>How do I get started? </li></ul><ul>...
Define Yourself in the Ecosystem <ul><li>Five Species of People </li></ul><ul><li>Inventor </li></ul><ul><li>Investor </li...
Relieve me from pain or Give me a Gain <ul><li>Entrepreneurship starts with </li></ul><ul><li>Innovation-  Ideas & Concept...
What kind of Problems? <ul><li>Solve a Small Problem for huge number of folks OR </li></ul><ul><li>Solve a Big Problem for...
Law of diffusion of innovation
Digital Entrepreneurship <ul><li>“ A specific category of Entrepreneurship that leverages new technologies in noval ways.”...
Transactions are possible Digitally <ul><li>Business plans are Out. Business Models are in. Borders are Out Virtual Inc is...
Transaction based Models <ul><li>E-commerce </li></ul><ul><li>E-learning </li></ul><ul><li>Affiliate Marketing </li></ul><...
Launching the Web Product <ul><li>Costs have gone down. </li></ul><ul><li>Opensource has evolved. </li></ul><ul><li>Cloud ...
Web marketing your Product <ul><li>Focus on Organic Growth </li></ul><ul><li>Build a brand that flows with word of mouth. ...
Jo Kamaao Woh Lagaoo <ul><li>Learn the power of bootstrapping </li></ul><ul><li>Burn what you Earn </li></ul><ul><li>Rotat...
I am a Visinory I think Big <ul><li>What should 1 do? </li></ul><ul><li>A.  Define your vision    Partner with Experts   F...
Quick quiz <ul><li>What’s common to Ford Motor Co, amazon.com and General Electric? </li></ul>
All rishte with Farishte! <ul><li>And so were Google, Yahoo, eBay, Exodus, Napster… </li></ul><ul><li>Almost all modern “h...
Farishta No. 1! <ul><li>Definations:- </li></ul><ul><li>An angel is somebody who invests their own time and money in a sta...
Funds ke funde <ul><li>VCs fund companies till they reach enough size to go public. </li></ul><ul><ul><li>Though some get ...
Who do you need to be blessed by? <ul><li>VC or Angel? Two choices </li></ul><ul><li>Depends! </li></ul><ul><li>How much h...
1. I am changa <ul><li>I have a full team </li></ul><ul><li>My product is working, generating revenues </li></ul><ul><li>I...
2. I am nanga <ul><li>There is a starting team </li></ul><ul><li>We are rich with a great idea </li></ul><ul><li>Poor in e...
Why VCs are now giving haath <ul><li>Have too much money, too little time </li></ul><ul><li>They’ve been burnt, badly with...
Tragedy: we’re cheap & best <ul><li>Our costs are 1/10 th  to 1/15 th  of Silicon Valley costs </li></ul><ul><li>If it tak...
Heaven – where to find angels <ul><li>Very few make a noise  </li></ul><ul><li>But look around you – who can invest Rs. 50...
Apna haath jagannath <ul><li>First look at home </li></ul><ul><li>What can you put in yourself? </li></ul><ul><ul><li>BIGG...
Then look around you <ul><li>Senior management in public cos </li></ul><ul><ul><li>Director, VP Level </li></ul></ul><ul><...
Be a kanjoos, makkhi-choos <ul><li>Pay yourself a pittance </li></ul><ul><ul><li>What we look for </li></ul></ul><ul><li>P...
Sample startup costs, month 6 <ul><li>Founders: 2 x 35k 70,000 </li></ul><ul><li>Seniors: 2 x  25k 50,000 </li></ul><ul><l...
Sample Year 1 <ul><li>COSTS </li></ul><ul><li>Month 1 1 x 5 l   5,00,000 </li></ul><ul><li>Months 2 – 6 5 x 3 l 15,00,000 ...
Apun ka philosophy <ul><li>Assume the angel funding is the last funding you will ever get. </li></ul><ul><li>It might be <...
Apun ka problem <ul><li>Plans by ‘thinkers’, not ‘sellers’. </li></ul><ul><li>Learn from Gates, Ballmer </li></ul><ul><li>...
Saare jahaan se achcha  <ul><li>Look at your knowledge level </li></ul><ul><li>Your language level </li></ul><ul><li>Your ...
Finding your community <ul><li>TiE membership, meetings </li></ul><ul><li>TiE Angel Forum </li></ul><ul><ul><li>Mentors, A...
Yeh aasaan cheez nahin <ul><li>Starting off in a new business is neither easy, nor common </li></ul><ul><li>There are no s...
So Go Ahead! Good Luck Jatin N. Mahindra Website  : www.internetmafia.in Email : jatin@internetmafia.in
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Jatin Mahindra, Founder, InternetMafia

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You are the Man!: How the power of you can make it all happen

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  • Lives on experementation and innovation on ideas. Invests money on validated innovations and business plans. Jack of many trades and takes the risk of building an entreprise or execution plans that he builds. Subject matter expert with experience. Walks on apredefines path in an organisation
  • Solve a small problem for huge number of people or a big problem for small number or people.
  • Jatin Mahindra, Founder, InternetMafia

    1. 1. Entrepreneurs don’t fear to tread What takes to get started You are the Man!: How the power of you can make it all happen
    2. 2. Did you Know? <ul><li>Life is about </li></ul><ul><li>Creating Value </li></ul><ul><li>Taking Risks </li></ul><ul><li>Listening to your heart </li></ul><ul><li>Realising your Aspirations and…. So is ENTREPRENEURSHIP </li></ul>
    3. 3. Reality of Entrepreneurship <ul><li>Why arn’t there enough Entrepreneurs? </li></ul><ul><li>Failure. Fear of Failure. Road to success is paved with failure Bill Gates first company failed. Paypal was Mac Lavchin’s 3 rd company. Facebook is not Marc Zuckerberg’s first site. Fairy tale: All successful companies you hear about never failed. </li></ul>
    4. 4. Important Quote <ul><li>“ Your work is going to fill a large part of your life and only way to be truly satisfied is to do what you think is great work. And only way to great work is to love what you do. If you haven’t found it yet. Keep looking” - Steve Jobs </li></ul>
    5. 5. If Decided to love what you do? <ul><li>Welcome to Entrepreneurship </li></ul><ul><li>How do I get started? </li></ul><ul><li>What value should I create? </li></ul><ul><li>What is my knowledge level? </li></ul><ul><li>How to conquer my fears to failure? </li></ul><ul><li>What are my support systems? </li></ul><ul><li>Can an Idea change my life? </li></ul><ul><li>Think through well & consult your critics </li></ul>
    6. 6. Define Yourself in the Ecosystem <ul><li>Five Species of People </li></ul><ul><li>Inventor </li></ul><ul><li>Investor </li></ul><ul><li>Entrepreneur </li></ul><ul><li>Consultant </li></ul><ul><li>Employee </li></ul>
    7. 7. Relieve me from pain or Give me a Gain <ul><li>Entrepreneurship starts with </li></ul><ul><li>Innovation- Ideas & Concepts </li></ul><ul><li>Problem Solving- Solutions </li></ul><ul><li>Monetization- Transactions Build Something or Sell Something </li></ul>
    8. 8. What kind of Problems? <ul><li>Solve a Small Problem for huge number of folks OR </li></ul><ul><li>Solve a Big Problem for small number of folks. Smaller price for masses </li></ul><ul><li>Higher price for niches </li></ul>
    9. 9. Law of diffusion of innovation
    10. 10. Digital Entrepreneurship <ul><li>“ A specific category of Entrepreneurship that leverages new technologies in noval ways.” </li></ul><ul><li>Digital Entrepreneurs are individuals who use internet technologies and tools to create commercial opportunities, disseminate information and collaborate with clients and partners. </li></ul>
    11. 11. Transactions are possible Digitally <ul><li>Business plans are Out. Business Models are in. Borders are Out Virtual Inc is in. </li></ul><ul><li>A startup doing 30-50 lakh turnover digitally with 2-5 people is not a bad start. Possible via bootstrapping. </li></ul><ul><li>All you need to know is how to brand , package market and sell digitally. Right resources and know how of what is essential. </li></ul>
    12. 12. Transaction based Models <ul><li>E-commerce </li></ul><ul><li>E-learning </li></ul><ul><li>Affiliate Marketing </li></ul><ul><li>Value Driven Digital products </li></ul><ul><li>Blogging </li></ul><ul><li>Niche Communities </li></ul><ul><li>Cloud based businesses </li></ul>
    13. 13. Launching the Web Product <ul><li>Costs have gone down. </li></ul><ul><li>Opensource has evolved. </li></ul><ul><li>Cloud solves all problems but for basic price </li></ul><ul><li>Hire a consulting partner and you may get going with in 2-5 lakhs </li></ul><ul><li>Use opensource & cloud to maximum </li></ul>
    14. 14. Web marketing your Product <ul><li>Focus on Organic Growth </li></ul><ul><li>Build a brand that flows with word of mouth. </li></ul><ul><li>Use Social Media for conversations. </li></ul><ul><li>Look for acquisition based paid marketing deals. </li></ul><ul><li>Average cost per acquisition on paid marketing deals ranges from Rs 500-1500 per sale. ROI is quite clear. </li></ul>
    15. 15. Jo Kamaao Woh Lagaoo <ul><li>Learn the power of bootstrapping </li></ul><ul><li>Burn what you Earn </li></ul><ul><li>Rotate funds properly </li></ul><ul><li>Sell like Hell </li></ul><ul><li>Keep a contingency backup </li></ul>
    16. 16. I am a Visinory I think Big <ul><li>What should 1 do? </li></ul><ul><li>A. Define your vision Partner with Experts Find money to get started </li></ul>
    17. 17. Quick quiz <ul><li>What’s common to Ford Motor Co, amazon.com and General Electric? </li></ul>
    18. 18. All rishte with Farishte! <ul><li>And so were Google, Yahoo, eBay, Exodus, Napster… </li></ul><ul><li>Almost all modern “hit” companies were “angeled” or built in association with experts. </li></ul><ul><li>Important for First time Entrepreneurs . Always partner with Experts </li></ul>
    19. 19. Farishta No. 1! <ul><li>Definations:- </li></ul><ul><li>An angel is somebody who invests their own time and money in a startup, investing at their sole discretion </li></ul><ul><li>An angel may not always invest money but lots value which is priceless </li></ul>
    20. 20. Funds ke funde <ul><li>VCs fund companies till they reach enough size to go public. </li></ul><ul><ul><li>Though some get acquired earlier </li></ul></ul><ul><li>Angels fund companies till </li></ul><ul><ul><li>they can show initial proof of concept </li></ul></ul><ul><ul><li>Enough to be funded by a VC </li></ul></ul><ul><ul><li>OR </li></ul></ul><ul><ul><li>Break even on an operating basis </li></ul></ul>
    21. 21. Who do you need to be blessed by? <ul><li>VC or Angel? Two choices </li></ul><ul><li>Depends! </li></ul><ul><li>How much help, advice do you need? </li></ul><ul><li>How much money do you need? </li></ul>
    22. 22. 1. I am changa <ul><li>I have a full team </li></ul><ul><li>My product is working, generating revenues </li></ul><ul><li>I need money to expand, grow </li></ul><ul><li>I need international contacts </li></ul><ul><li>About Rs. 2 crores to Rs 20 crores+ </li></ul><ul><li>I need a VC! </li></ul>
    23. 23. 2. I am nanga <ul><li>There is a starting team </li></ul><ul><li>We are rich with a great idea </li></ul><ul><li>Poor in everything else </li></ul><ul><li>Need lots of help to execute </li></ul><ul><li>Need Rs 50 lakhs to 1 crore </li></ul><ul><li>God help you! </li></ul><ul><li>If God can’t, I need an angel! </li></ul>
    24. 24. Why VCs are now giving haath <ul><li>Have too much money, too little time </li></ul><ul><li>They’ve been burnt, badly with investments they can’t exit from </li></ul><ul><li>Can, at the most, look at 15 to 20 companies at a time </li></ul><ul><li>A $100 million fund will need an average $5 million investment </li></ul><ul><li>That isn’t startup – that’s 2 nd round </li></ul>
    25. 25. Tragedy: we’re cheap & best <ul><li>Our costs are 1/10 th to 1/15 th of Silicon Valley costs </li></ul><ul><li>If it takes $2 million of angel money, it’ll take $200k here </li></ul><ul><li>Earlier, VCs invested too much for Indian companies to digest </li></ul><ul><li>Tragedy: VCs are making the right move – but not for startups </li></ul>
    26. 26. Heaven – where to find angels <ul><li>Very few make a noise </li></ul><ul><li>But look around you – who can invest Rs. 50 lakhs? </li></ul><ul><li>Who can help you strategically? </li></ul><ul><li>This is more valuable than the Rs. </li></ul><ul><li>Look far and wide </li></ul><ul><li>Wise angel, dumb angel, wise VC, dumb VC – all are around, make your pick! </li></ul>
    27. 27. Apna haath jagannath <ul><li>First look at home </li></ul><ul><li>What can you put in yourself? </li></ul><ul><ul><li>BIGGEST problem! Risk aversion </li></ul></ul><ul><li>Ask family, friends </li></ul><ul><ul><li>Ask a lot of them, collect a lakh each </li></ul></ul><ul><li>Unused assets: jewellery, owned property </li></ul><ul><ul><li>Are you willing to mortgage? </li></ul></ul><ul><ul><li>Every family has 20 lakhs for a wedding </li></ul></ul><ul><li>Getting together your first 50 lakh </li></ul><ul><ul><li>Will save you crores when you go public </li></ul></ul>
    28. 28. Then look around you <ul><li>Senior management in public cos </li></ul><ul><ul><li>Director, VP Level </li></ul></ul><ul><li>Businesspeople with right expertise or connections </li></ul><ul><ul><li>Getting them to invest outside family </li></ul></ul><ul><li>Banks will give upto Rs 25 lakhs </li></ul><ul><ul><li>Collateral-free, guaranteed by SIDBI </li></ul></ul><ul><li>Get this somehow! </li></ul>
    29. 29. Be a kanjoos, makkhi-choos <ul><li>Pay yourself a pittance </li></ul><ul><ul><li>What we look for </li></ul></ul><ul><li>Pay people real salaries </li></ul><ul><ul><li>Not “market”. Look for risk takers </li></ul></ul><ul><ul><li>From Rs 4,000 to Rs 35,000 </li></ul></ul><ul><li>Rent, equipment </li></ul><ul><ul><li>Start from home </li></ul></ul><ul><ul><li>You don’t need the latest computers </li></ul></ul>
    30. 30. Sample startup costs, month 6 <ul><li>Founders: 2 x 35k 70,000 </li></ul><ul><li>Seniors: 2 x 25k 50,000 </li></ul><ul><li>Juniors: 10x 6k 60,000 </li></ul><ul><li>Rent: 600 sft 15,000 </li></ul><ul><li>Comps: 6 x 2.5k 15,000 </li></ul><ul><li>Travel, comm 50,000 </li></ul><ul><li>Misc 90,000 </li></ul><ul><ul><ul><ul><ul><li>3,50,000 </li></ul></ul></ul></ul></ul>
    31. 31. Sample Year 1 <ul><li>COSTS </li></ul><ul><li>Month 1 1 x 5 l 5,00,000 </li></ul><ul><li>Months 2 – 6 5 x 3 l 15,00,000 </li></ul><ul><li>Months 7 – 12 6 x 5 l 30,00,000 </li></ul><ul><li>50,00,000 </li></ul><ul><li>SALES </li></ul><ul><li>Month 1 – 5 0 </li></ul><ul><li>Month 6 – 9 2,00,000 </li></ul><ul><li>Month 10 – 12 5,00,000 </li></ul><ul><li>GOAL : Operational breakeven by month 9 - 12 </li></ul>
    32. 32. Apun ka philosophy <ul><li>Assume the angel funding is the last funding you will ever get. </li></ul><ul><li>It might be </li></ul><ul><li>And if it isn’t, you’ll have the upper hand negotiating, as you don’t need it to survive, just to grow </li></ul><ul><li>Best companies get VC money, don’t touch it </li></ul>
    33. 33. Apun ka problem <ul><li>Plans by ‘thinkers’, not ‘sellers’. </li></ul><ul><li>Learn from Gates, Ballmer </li></ul><ul><li>If you’re ashamed to go out, sell, earn money, DON’T EVEN BOTHER! </li></ul><ul><li>If you don’t have a sales & mktng-focused company, you’ll die. </li></ul><ul><li>Remember, when funding runs out, you and your employees will lose jobs </li></ul><ul><li>For your own sake, SELL! </li></ul>
    34. 34. Saare jahaan se achcha <ul><li>Look at your knowledge level </li></ul><ul><li>Your language level </li></ul><ul><li>Your cost level </li></ul><ul><li>All of these make India along the best places in the world to start a business </li></ul><ul><li>So go ahead! </li></ul>
    35. 35. Finding your community <ul><li>TiE membership, meetings </li></ul><ul><li>TiE Angel Forum </li></ul><ul><ul><li>Mentors, Angels </li></ul></ul><ul><li>National entrepreneurship network </li></ul><ul><li>Intermediaries: </li></ul><ul><ul><li>Nasscom Emerge, Proto </li></ul></ul>
    36. 36. Yeh aasaan cheez nahin <ul><li>Starting off in a new business is neither easy, nor common </li></ul><ul><li>There are no standard processes </li></ul><ul><ul><li>If there were, we all would have successful startups by now </li></ul></ul><ul><li>Huge no. of successful companies started without venture capital or angel funding </li></ul><ul><li>Follow your own hunches, blaze your own trail </li></ul>
    37. 37. So Go Ahead! Good Luck Jatin N. Mahindra Website : www.internetmafia.in Email : jatin@internetmafia.in

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