http://1m1m.sramanamitra.comTo help a million entrepreneurs reach a million dollars in annual revenue and beyond<br />One ...
Case Study: IDS Software<br />
$10M a yr semiconductor yield management software company<br />
Entrepreneur owned 80% of the company<br />
Total Available Market (TAM): $150 M<br />
$150 M TAM => Too Small For VCs<br />
Exit price: $30 MEntrepreneur made $24 M<br />
Successful Entrepreneur?<br />
99% of entrepreneurs looking for financing get rejected<br />Fact:<br />
Yes, Even In Silicon Valley<br />99% Rejection Rate<br />
Market Opportunity Too Small<br />
Tyranny Of The TAM<br />
Many more $5M, $10M, $20M, $50M, $150M opportunities than $500M or $1B ones<br />Worth building, especially if you own a l...
90% owner of $5m company sold for $25m<br />Which entrepreneur makes more money?<br />5% owner of $25m company sold for $1...
Ownership Matters<br />
Case Study: Facebook<br />
$500k at $5M$12.7M at $98M <br />First two rounds:<br />
How do you preserve that much ownership?<br />
Bootstrap to Validation and Momentum<br />
Early stages: Lean, Lean, Lean<br />
Entrepreneurship = Financing<br />Misconception<br />
Entrepreneurship = (Customers + Revenue + Profits)<br />Truth: Financing is optional<br />
An old error is generally more popular than a new truth<br />Unfortunately<br />
Please avoid Silicon Valley’s errors<br />Indian entrepreneurs<br />
Focus on customers, not investors<br />Scarce resources<br />
Do not spray and pray<br />1M/1M mantra of lean startups:<br />
Do not try to boil the ocean<br />Focus:<br />
Case Study: PayCycle<br />Positioning<br />
PayCycle: Outsourced Payroll Services (SaaS)<br />3/28/11<br />One Million by One Million<br />30<br />
ADP: Payroll Services for Enterprises<br />3/28/11<br />One Million by One Million<br />31<br />Competition:<br />
Paychex: Payroll Services for the Mid-market<br />3/28/11<br />One Million by One Million<br />32<br />Competition:<br />
Where is the gap?<br />Can’t compete head-on with large companies …<br />
Payroll SaaS for Very Small Businesses with < 20 employees<br />3/28/11<br />One Million by One Million<br />34<br />Under...
Bottom-Up TAM Analysis<br />3/28/11<br />One Million by One Million<br />35<br />
22–25 m small businesses in the US;@ $500/yr, TAM = $11–12.5 b<br />3/28/11<br />One Million by One Million<br />36<br />
5.9 m businesses that employ peopleMajority mom & pops, no employees;TAM = $2.95 b<br />3/28/11<br />One Million by One Mi...
5.2 m employers with < 20 employees; TAM = $2.6 b<br />3/28/11<br />One Million by One Million<br />38<br />
Without precise segmentation, TAM appears larger<br />3/28/11<br />One Million by One Million<br />39<br />
Entrepreneur Journeys Series<br />For Inspiration, Role Models, Case Studies, Lessons<br />
Entrepreneur Journeys SeriesOn Flipkart<br /><ul><li>EJ1: Inspiration & Overview
EJ2: Bootstrapping
EJ3: Positioning
EJ4: Innovation</li></li></ul><li>Free, 1M/1M Strategy Roundtables<br />Every Thursday, Online<br />
Join 1M/1M Premium for Extensive Methodology Guidance, Curriculum, Business Development, and Strategy Consulting<br />For ...
http://1m1m.sramanamitra.comTo help a million entrepreneurs reach a million dollars in annual revenue and beyond<br />One ...
Vision India 2020<br />My notebook of ideas<br />45 billion dollar ideas for you to steal, morph, modify, and build<br />D...
Sectors<br />Technology and Technology-enabled Services<br />Education<br />Infrastructure<br />Rural and Slum Development...
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April india keynote 2011

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Sramana Mitra's speaking tour in India April 2011 - keynote.

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April india keynote 2011

  1. 1. http://1m1m.sramanamitra.comTo help a million entrepreneurs reach a million dollars in annual revenue and beyond<br />One Million by One Million<br />
  2. 2. Case Study: IDS Software<br />
  3. 3. $10M a yr semiconductor yield management software company<br />
  4. 4. Entrepreneur owned 80% of the company<br />
  5. 5. Total Available Market (TAM): $150 M<br />
  6. 6. $150 M TAM => Too Small For VCs<br />
  7. 7. Exit price: $30 MEntrepreneur made $24 M<br />
  8. 8. Successful Entrepreneur?<br />
  9. 9. 99% of entrepreneurs looking for financing get rejected<br />Fact:<br />
  10. 10. Yes, Even In Silicon Valley<br />99% Rejection Rate<br />
  11. 11. Market Opportunity Too Small<br />
  12. 12. Tyranny Of The TAM<br />
  13. 13. Many more $5M, $10M, $20M, $50M, $150M opportunities than $500M or $1B ones<br />Worth building, especially if you own a large %<br />
  14. 14. 90% owner of $5m company sold for $25m<br />Which entrepreneur makes more money?<br />5% owner of $25m company sold for $100m<br />$22.5m<br />$5m<br />
  15. 15. Ownership Matters<br />
  16. 16. Case Study: Facebook<br />
  17. 17. $500k at $5M$12.7M at $98M <br />First two rounds:<br />
  18. 18. How do you preserve that much ownership?<br />
  19. 19. Bootstrap to Validation and Momentum<br />
  20. 20. Early stages: Lean, Lean, Lean<br />
  21. 21. Entrepreneurship = Financing<br />Misconception<br />
  22. 22. Entrepreneurship = (Customers + Revenue + Profits)<br />Truth: Financing is optional<br />
  23. 23. An old error is generally more popular than a new truth<br />Unfortunately<br />
  24. 24. Please avoid Silicon Valley’s errors<br />Indian entrepreneurs<br />
  25. 25. Focus on customers, not investors<br />Scarce resources<br />
  26. 26.
  27. 27. Do not spray and pray<br />1M/1M mantra of lean startups:<br />
  28. 28. Do not try to boil the ocean<br />Focus:<br />
  29. 29. Case Study: PayCycle<br />Positioning<br />
  30. 30. PayCycle: Outsourced Payroll Services (SaaS)<br />3/28/11<br />One Million by One Million<br />30<br />
  31. 31. ADP: Payroll Services for Enterprises<br />3/28/11<br />One Million by One Million<br />31<br />Competition:<br />
  32. 32. Paychex: Payroll Services for the Mid-market<br />3/28/11<br />One Million by One Million<br />32<br />Competition:<br />
  33. 33. Where is the gap?<br />Can’t compete head-on with large companies …<br />
  34. 34. Payroll SaaS for Very Small Businesses with < 20 employees<br />3/28/11<br />One Million by One Million<br />34<br />Underserved niche:<br />
  35. 35. Bottom-Up TAM Analysis<br />3/28/11<br />One Million by One Million<br />35<br />
  36. 36. 22–25 m small businesses in the US;@ $500/yr, TAM = $11–12.5 b<br />3/28/11<br />One Million by One Million<br />36<br />
  37. 37. 5.9 m businesses that employ peopleMajority mom & pops, no employees;TAM = $2.95 b<br />3/28/11<br />One Million by One Million<br />37<br />
  38. 38. 5.2 m employers with < 20 employees; TAM = $2.6 b<br />3/28/11<br />One Million by One Million<br />38<br />
  39. 39. Without precise segmentation, TAM appears larger<br />3/28/11<br />One Million by One Million<br />39<br />
  40. 40.
  41. 41. Entrepreneur Journeys Series<br />For Inspiration, Role Models, Case Studies, Lessons<br />
  42. 42. Entrepreneur Journeys SeriesOn Flipkart<br /><ul><li>EJ1: Inspiration & Overview
  43. 43. EJ2: Bootstrapping
  44. 44. EJ3: Positioning
  45. 45. EJ4: Innovation</li></li></ul><li>Free, 1M/1M Strategy Roundtables<br />Every Thursday, Online<br />
  46. 46. Join 1M/1M Premium for Extensive Methodology Guidance, Curriculum, Business Development, and Strategy Consulting<br />For $1000 annual membership fee<br />
  47. 47.
  48. 48.
  49. 49.
  50. 50. http://1m1m.sramanamitra.comTo help a million entrepreneurs reach a million dollars in annual revenue and beyond<br />One Million by One Million<br />
  51. 51.
  52. 52. Vision India 2020<br />My notebook of ideas<br />45 billion dollar ideas for you to steal, morph, modify, and build<br />Detailed strategy nuances, market analysis<br />A futuristic retrospective<br />Business fiction<br />
  53. 53. Sectors<br />Technology and Technology-enabled Services<br />Education<br />Infrastructure<br />Rural and Slum Development<br />Healthcare<br />Lifestyle Brands<br />Entertainment<br />
  54. 54. I am looking for entrepreneurs to execute on these ideas<br />A vision for where you can take India<br />
  55. 55. Vision India 2020: Elective Module in 1M/1M<br />
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