The document provides advice for entrepreneurs on starting a business, including how to get funding from angels or VCs. It notes that most successful companies faced initial failures and discusses the importance of solving problems for customers. Digital businesses are highlighted as a good option that requires low costs to launch online using open source tools and cloud computing. Bootstrapping and finding angel investors locally are advised over relying on large VCs. Developing a minimum viable product and focusing on sales and marketing are also emphasized.

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. Did you Know? Life is about Creating Value Taking Risks Listening to your heart Realising your Aspirations and…. So is ENTREPRENEURSHIP

3. Reality of Entrepreneurship Why arn’t there enough Entrepreneurs? 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.

4. Important Quote “ 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

5. If Decided to love what you do? Welcome to Entrepreneurship How do I get started? What value should I create? What is my knowledge level? How to conquer my fears to failure? What are my support systems? Can an Idea change my life? Think through well & consult your critics

6. Define Yourself in the Ecosystem Five Species of People Inventor Investor Entrepreneur Consultant Employee

7. Relieve me from pain or Give me a Gain Entrepreneurship starts with Innovation- Ideas & Concepts Problem Solving- Solutions Monetization- Transactions Build Something or Sell Something

8. What kind of Problems? Solve a Small Problem for huge number of folks OR Solve a Big Problem for small number of folks. Smaller price for masses Higher price for niches

9. Law of diffusion of innovation

10. Digital Entrepreneurship “ A specific category of Entrepreneurship that leverages new technologies in noval ways.” Digital Entrepreneurs are individuals who use internet technologies and tools to create commercial opportunities, disseminate information and collaborate with clients and partners.

11. Transactions are possible Digitally Business plans are Out. Business Models are in. Borders are Out Virtual Inc is in. A startup doing 30-50 lakh turnover digitally with 2-5 people is not a bad start. Possible via bootstrapping. All you need to know is how to brand , package market and sell digitally. Right resources and know how of what is essential.

12. Transaction based Models E-commerce E-learning Affiliate Marketing Value Driven Digital products Blogging Niche Communities Cloud based businesses

13. Launching the Web Product Costs have gone down. Opensource has evolved. Cloud solves all problems but for basic price Hire a consulting partner and you may get going with in 2-5 lakhs Use opensource & cloud to maximum

14. Web marketing your Product Focus on Organic Growth Build a brand that flows with word of mouth. Use Social Media for conversations. Look for acquisition based paid marketing deals. Average cost per acquisition on paid marketing deals ranges from Rs 500-1500 per sale. ROI is quite clear.

15. Jo Kamaao Woh Lagaoo Learn the power of bootstrapping Burn what you Earn Rotate funds properly Sell like Hell Keep a contingency backup

16. I am a Visinory I think Big What should 1 do? A. Define your vision Partner with Experts Find money to get started

17. Quick quiz What’s common to Ford Motor Co, amazon.com and General Electric?

18. All rishte with Farishte! And so were Google, Yahoo, eBay, Exodus, Napster… Almost all modern “hit” companies were “angeled” or built in association with experts. Important for First time Entrepreneurs . Always partner with Experts

19. Farishta No. 1! Definations:- An angel is somebody who invests their own time and money in a startup, investing at their sole discretion An angel may not always invest money but lots value which is priceless

20. Funds ke funde VCs fund companies till they reach enough size to go public. Though some get acquired earlier Angels fund companies till they can show initial proof of concept Enough to be funded by a VC OR Break even on an operating basis

21. Who do you need to be blessed by? VC or Angel? Two choices Depends! How much help, advice do you need? How much money do you need?

22. 1. I am changa I have a full team My product is working, generating revenues I need money to expand, grow I need international contacts About Rs. 2 crores to Rs 20 crores+ I need a VC!

23. 2. I am nanga There is a starting team We are rich with a great idea Poor in everything else Need lots of help to execute Need Rs 50 lakhs to 1 crore God help you! If God can’t, I need an angel!

24. Why VCs are now giving haath Have too much money, too little time They’ve been burnt, badly with investments they can’t exit from Can, at the most, look at 15 to 20 companies at a time A $100 million fund will need an average $5 million investment That isn’t startup – that’s 2 nd round

25. Tragedy: we’re cheap & best Our costs are 1/10 th to 1/15 th of Silicon Valley costs If it takes $2 million of angel money, it’ll take $200k here Earlier, VCs invested too much for Indian companies to digest Tragedy: VCs are making the right move – but not for startups

26. Heaven – where to find angels Very few make a noise But look around you – who can invest Rs. 50 lakhs? Who can help you strategically? This is more valuable than the Rs. Look far and wide Wise angel, dumb angel, wise VC, dumb VC – all are around, make your pick!

27. Apna haath jagannath First look at home What can you put in yourself? BIGGEST problem! Risk aversion Ask family, friends Ask a lot of them, collect a lakh each Unused assets: jewellery, owned property Are you willing to mortgage? Every family has 20 lakhs for a wedding Getting together your first 50 lakh Will save you crores when you go public

28. Then look around you Senior management in public cos Director, VP Level Businesspeople with right expertise or connections Getting them to invest outside family Banks will give upto Rs 25 lakhs Collateral-free, guaranteed by SIDBI Get this somehow!

29. Be a kanjoos, makkhi-choos Pay yourself a pittance What we look for Pay people real salaries Not “market”. Look for risk takers From Rs 4,000 to Rs 35,000 Rent, equipment Start from home You don’t need the latest computers

30. Sample startup costs, month 6 Founders: 2 x 35k 70,000 Seniors: 2 x 25k 50,000 Juniors: 10x 6k 60,000 Rent: 600 sft 15,000 Comps: 6 x 2.5k 15,000 Travel, comm 50,000 Misc 90,000 3,50,000

31. Sample Year 1 COSTS Month 1 1 x 5 l 5,00,000 Months 2 – 6 5 x 3 l 15,00,000 Months 7 – 12 6 x 5 l 30,00,000 50,00,000 SALES Month 1 – 5 0 Month 6 – 9 2,00,000 Month 10 – 12 5,00,000 GOAL : Operational breakeven by month 9 - 12

32. Apun ka philosophy Assume the angel funding is the last funding you will ever get. It might be And if it isn’t, you’ll have the upper hand negotiating, as you don’t need it to survive, just to grow Best companies get VC money, don’t touch it

33. Apun ka problem Plans by ‘thinkers’, not ‘sellers’. Learn from Gates, Ballmer If you’re ashamed to go out, sell, earn money, DON’T EVEN BOTHER! If you don’t have a sales & mktng-focused company, you’ll die. Remember, when funding runs out, you and your employees will lose jobs For your own sake, SELL!

34. Saare jahaan se achcha Look at your knowledge level Your language level Your cost level All of these make India along the best places in the world to start a business So go ahead!

35. Finding your community TiE membership, meetings TiE Angel Forum Mentors, Angels National entrepreneurship network Intermediaries: Nasscom Emerge, Proto

36. Yeh aasaan cheez nahin Starting off in a new business is neither easy, nor common There are no standard processes If there were, we all would have successful startups by now Huge no. of successful companies started without venture capital or angel funding Follow your own hunches, blaze your own trail

37. So Go Ahead! Good Luck Jatin N. Mahindra Website : www.internetmafia.in Email : jatin@internetmafia.in