Can you solve this entrepreneur problem

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A simple entrepreneurial problem posed as an exercise on achieving goals. This presentation contains an easy example of two cases to illustrate the simple route as well as the complicated route to success.

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Can you solve this entrepreneur problem

  1. 1. therodinhoods.com Can you solve… Alok Rodinhood Kejriwal Founder – 2win group & therodinhoods
  2. 2. therodinhoods.com Can you solve 25 * 4 = ?
  3. 3. therodinhoods.com So, you think I’m kidding? Let me ask you again: What is the result of 25 * 4 ?
  4. 4. therodinhoods.com The Answer is obvious… 25 * 4 = 100
  5. 5. therodinhoods.com Now, how about solving this one? (12.5*2) * (8/2) = ?
  6. 6. therodinhoods.com The Answer is … (12.5*2) * (8/2) = 100
  7. 7. therodinhoods.com There is A set of Entrepreneurs who try to solve 25 * 4 = 100
  8. 8. therodinhoods.com There is B set of Entrepreneurs who try and solve (12.50*2) * (8/2) = 100
  9. 9. therodinhoods.com Confused? Let me explain! 100 100 IS THE DESIRED OUTCOME
  10. 10. therodinhoods.com The PATH to the desired outcome can be 25 * 4 = 100 (12.50*2) * (8/2) = 100 Path 1 to outcome Path 2 to Outcome
  11. 11. therodinhoods.com Let’s take an example • Say that Entrepreneurs Alok and Arun independently start up, to set up an Electric Car Rental business • Both determine that the minimum viability of their biz would be 100 Electric Car Rental orders per day
  12. 12. therodinhoods.com The difference between them? • Alok wants to achieve a 100 rentals a day as his only goal. • Arun wants to achieve 100 rentals a day AND MAXIMISE his revenues as his goal.
  13. 13. therodinhoods.com The Approach Alok follows: 25 * 4 = 100 No. of rental orders per day No. of exclusive Corporates signed up TOTAL Rentals per day
  14. 14. therodinhoods.com Alok’s Rentals • Are typically quick turnaround and city-centric that yield average revenues per trip.
  15. 15. therodinhoods.com The Approach Arun follows: (12.50*2) * (8/2) = 100 1 way drop to airport (so half trips) 2 Airports in the city 4 Corporates signed up 2 vendors of the Corporates Total trips
  16. 16. therodinhoods.com Arun’s Rentals • Are focused on Airport Drops that are complex to manage but are high revenue yielding.
  17. 17. therodinhoods.com In his startup, Alok has to deal with 2 variables: 25 * 4 = 100 1.Managing the orders per day 2. Servicing the exclusive Corporates signed up
  18. 18. therodinhoods.com Arun has to deal with 4 variables: (12.50*2) * (8/2) = 100 1. Timely Drop / Pickups from Airport 2. Managing Airport rules and regulations 3. Managing Corporate clients 4. Managing competition serving the Corporates
  19. 19. therodinhoods.com Variable Mitigation Alok 1. Make sure that the cars for the city trips are comfortable and in order 2. Make sure that the 4 Corporate Clients are fully satisfied – meet each of them everyday in rotation. Arun 1. Make sure that the airport drops are on time; each time 2. Keep track of the 2 Airport rules and regulations 3. Manage the 8 Corporate relationships 4. Make sure that the competition serving the Corporates are not getting ahead.
  20. 20. therodinhoods.com Takeaway? • Sometimes, entrepreneurs land up choosing highly complex and difficult to manage paths to achieve their FIRST GOAL.
  21. 21. therodinhoods.com Approach? SET THE GOAL first, THEN the path to the goal The GOAL IS 100 Trips • Path ? 25*4 or (12.5*2) * (8/2)
  22. 22. therodinhoods.com My humble advice Startups and Entrepreneurs should focus on achieving their goals with the MINIMUM number of variables they have to deal with.
  23. 23. therodinhoods.com Real Life Case Examples EARLY DAYS OF Variable 1 Variable 2 Variable 3 Google Get best search algorithm out Get best UX/UI X Twitter Get easy UX/UI Get Star Users X Instagram Get the best picture sharing service out X X Whatsapp Get the best personal messaging service out X X Amazon Make people shop online Make consumer experience GOD X Microsoft Make good consumer products (NOT the BEST) Maximise revenues Stop Competition MySpace Make social discovery for music lovers Make MONEY
  24. 24. therodinhoods.com Homework • If you are starting up, can you write your GOAL with the least number of variables?
  25. 25. therodinhoods.com Liked this presentation? Go through some more! • Basic Funding Concepts for Entrepreneurs • How to Price what you Sell • How to write effective e-mail proposals • How to make an engaging PPT • PR for Startups – a reference guide!
  26. 26. therodinhoods.com Connect with me! e-mail - alok@rodinhood.com Facebook - facebook.com/rodinhood Twitter - @rodinhood Linkedin - alokkejriwal My social network for anyone enterprising! therodinhoods.com Presentations – www.slideshare.net/rodinhood

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