Entrepreneurship Awareness Program Key strategies for budding entrepreneurs Starting UP Presented By Venkat & Srivalli Founders,eFarm
Introduction : The Founders Venkata Subramanian , COO Srivalli , CEO MS (Computer Science), SUNY Albany, MBA (ICFAI), 2000 Newyork , 2003 B.Com Taxation, NMKRV, 1997 B.Arch , IIT Kharagpur , India , 1995 Over 12 years experience (1995-2007) in IT 8 years experience in Sales, Marketing, & industry in roles such as Program Operations. Has run two start-ups and organised management, Portal development for BFSI fund raising for NGOs as part of CSR programs. clients, Outsourcing and Consulting Technology & Marketing and Operations HR Domain IT / Call entre Operaions Call centre Marketing HR Finance ConsultantsIT Dev. & Testing Purchase & Call centre / BPO Interns Team Delivery Team staff 2
Currently Better known as …. ‘Hi-Tech Subziwallahs’ of Chennai Can privatizing agriculture solve marketing problems? Farmer’s Notebook , M.J. PRABU A network of collection centres and distribution centre in Chennai and surrounding districts, procuring daily from over 2500 farmers and supplying to leading retail outlets,hotels, caterers and restaurants in the city.Most PromisingStartup 2011 3
Audience activity with studentsWHO ARE POTENTIALENTREPRENEURS ?
World Most Famous College Dropouts who became successful entrepreneurs … •Dropped out of Harvard after 2nd year in 1973 •In 2007, thirty years after he left Harvard, he would finally receive his degree (an honorary doctorate) from his alma mater. At the commencement, said, "Im a bad influence. Thats why I was invited to speak at your graduation. If I had spoken at your orientation, fewer of you might be here today.“ •The software company he built runs almost every PC today
•dropped out of ReedCollege after just sixmonths because of theundue financial strain onparents• found NeXT Computerand Pixar•.. Apple, ipod, iPad ….• Steve Jobs
• architect, thinker, inventor, futurist, engineer• Expelled from Harvard not once, but twice• string of bad business ventures and years of depression following his daughters death• Inventor of Geodesic dome• Buckminster Fuller
• enrolled in Fullerton College to study physics.• He would drop out, marry a waitress and eventually become a truck driver for the local school district• he saw Star Wars in 1977 and decided to join movies• Director of award winning sci-fi movies like avatar, titanic , terminator , aliens …..• James Cameron
• did his schooling in Chorwad but couldn’t continue to college, as he couldn’t afford• started by selling bhajias to pilgrims visiting Girnar peak.• came to Mumbai in 1959 with Rs 500 in his pocket and today his business empire is worth over Rs 62,000 crore• Dhirubhai Ambani
Are you ‘Passionate’ about your Idea ? • Spa = ‘Thel Malish’ ? • Waste Recycling = ‘Kabadiwallah’ • IT firm = ‘Software Coolie’• Starting a business is like “Falling in Love”• Don’t chase something which is NOT yours• Follow Your Instinct
Ideas Need Not Be Unique .. But Implementations Are • Software – Microsoft v/s IBM • Search engine – Google v/s Altavista • Social network – Facebook v/s OrkutOften ‘first movers’ loose the advantageSmart Entrepreneurs often ‘improve’ an existingidea !!
Building a Team• What we can learn from ‘ants’ …• Founders : Friends v/s Family v/s Professionals ?• Whom to recruit – Brand college grads or Tier II ? – Family v/s Outsider : Pros and Co• One good person knows another good one : Referrals
Learn Excel and How to make nice charts ;-) 15 crores target in 3 years MONT Base M H SALES (IN arch Rs) M April -O-M % I 136400 nc Net M ay Profit als 321700 June 135.85% Actu 405800 27300 July 462200 26.14% Aug 48400 526400 13.90% Sep 13100 596650 13.89% Oct 30200 663700 13.35% Nov 730750 11.24% Dec 825000 10.10% d Jan ecte 925000 12.90% Feb 1040000 12.12% Proj Mar 1190000 12.43% 1375000 14.42% 15.55%
Know Your Numbers• Credit/debit• Profit & Loss• Balance sheet• Cash Flow statement• Read a good book which explains ‘Finance for Non-Finance people’
Elevator Pitch |What is <your company> ? What does the Company do? In ONE sentence explain your product / service Who is the customer ? Key pain points for end customers addressed ?A Simple Vision / Mission Top 3 MAJOR value additions of your service or product statement Current status / competitors What is your GOAL ? How are you different from the ‘crowd’ Avoid Blah .. Blah .. Blah … How will you make Money ? How much money do you need to ‘start’ and get to ‘break even’ ?
Your 1st Investors • Family – Father , Father-in-law ! • FriendsYou can’t fool them..They know too much aboutyou..Will give you money either toencourage you or just to avoidbeing ‘bugged’ by you !
Professional InvestorsYou get You sing If you Start Retire =money for Baba black pass exam making Exitjust being sheep you get moneycute And u get your toy and money support your self and your Remember :Investors family want their money ‘BACK’ with ‘RETURNS’ Angel VC PE IPO
Fear of ‘Fa(i)lling’ Running a new business is like learning to cycle first time … None has ever learnt cycling without FALLINGSuccessful entrepreneurs are those who haveFALLEN many times ,but still get UP and move on …
The Ideal Entrepreneur .. Ready to jump into fire …Have thediscipline of asoldier …. .. But still ‘enjoys’ doing the impossible !
eFarmEnabling FArmers to Reach Markets Part II The Making Of eFarm The Inside Story Of a Social StartUp
Why I Became An Entrepreneur ? • An ‘empty’ feeling within that ‘I• Coming from a have not accomplished anything typical ‘Tam-Bram with my life’ ‘ family , It took • Motivated by other entrepreneurs me 12 years of • The ‘India Inc’ rising stories in press preparation to feel I am ‘ready’ • Movies – Swades !!! to be an • Growing support structure for entrepreneur. startups – mentors, incubators, forums, magazines
Why a ‘Social’ Business ?• NGOs – driven by passion & cause , very fulfilling but lack sustainability, funds to operate• Corporates – Driven by financial profitability as success, but no commitment to social upliftment• Social business : Best of both worlds
Why ‘Bottom of Pyramid’ ?• Poverty is relative – an analogy : Bill gates v/s Azim Premji v/s ME v/s Muniyamma v/s Unemployed MBA (?)• Poor people Pay MORE for LESS• CK Prahlad and the BOP mirage – BOP as a ‘buyer’ v/s BOP as a ‘seller’ – Farmer BUYING cellphone or insurance • v/s – Farmer SELLING rice
Only a crystal clear question yields a transparent answer – Zen sayingPROBLEM STATEMENTWHY IS THERE A CRISIS IN INDIAN AGRICULTURE ?
Pain areas | The Agri Supply Chain Current State : Too Many Steps , Too Little Value Addition Harvesting of • Unorganized , unregulated , Terminal markets to Vegetables unprofessional & unprofitable neighborhood wholesalers •A Middlemen’ dominated market 1 •Adhoc /Arbitrary Decisions on quality & price 5 Regional mandi to Wholesalers to Retailers 4 Terminal markets near A local mandi large cities auctioning 2 Local to Regional mandis for Auction 6Loss in transit 40% Price hike Retailers to Dining Table 3 End to end > 400% 7
So many solutions , but why still a crisis ? “Blind men and the elephant” syndrome in agri R&D Without FDI in Retail reliable Increase yield and LIVE dataContract anyfarming Export market agri intervention Or agri-business will be A Cold chain Subsidies, failure GM foods Loans, 28 grants
Number #1 problem of Agri IndustryTHERE IS NO ACCURATE DATA OF SUPPLY OR DEMANDWho are the ‘REAL’ farmers ? What are they growing ??What is available RIGHT NOW ? Who are the END buyers ?What are they buying ? Reality Check India’s largest What price is END customer willing to pay ? industry isWhat is the cost of growing for farmer ? running with NO DATA How to arrive at correct pricing for produce ? == DAILY CRISIS 29
Pain areas | The Farmer’s ‘REAL’ crisis Reality Check •Farmers cannot do “everything”. They need professional help and organizational support •Farming needs to become self sustaining and HENCE a business activity •High uncertainty and risks = Very low investor interest •Years of neglect & low esteem = educated youth avoid an agri career =Labour problems Need role models and pioneers to build the road to recovery
Pain Areas | Customer Spectrum Huge domestic demand, Escalating prices & Unmet needs Organised retailers are crowded in this space Competition highLow Income Middle High Hotels & Food & ExportGroup Income Income caterers Drink • ~1% of• > 40% in Group Group • ~25% of processors volume volume • ~ 20% in • ~5% in volume volume • ~5% of • Best quality /• Buy from volume • Buy from volume specific • Buy from products only neighborhood • Buy from retail chains wholesale • Product markets street vendors • Quality & mandi specific buyer (evening) • Price + Quality variety • Large volume• Pay more for conscious conscious + fixed price less quality range Efarm targets entire B2B segment and currently untapped areas
"We cant solve problems by using the same kind of thinking we used when we created them." Albert EinsteinTHE SOLUTION
Key Innovations 1) Weighing machine = standardise agri business transactions ! Bundles, baskets , bags Kilograms , Counts 2) Simple grading = right quality to right customer!! Mixed grades S / M / L (Or) excellent / OK /bad 3) Simple technology = widest usage !!! PCs, Websites Mobile phones , Voice, SMS
Value proposition | Connecting the Dots Cleaning / Packing QualityInspection/ Grading Routing Every stakeholder is alternately a Long haul buyer or seller of agro goods, linked Transportation together by a common system. Thus : Develop Online supply chain Rural Produce Collection Centres Small retailers Local vendors Technology backbone with offline distribution mechanisms Farmers Create a network of farmers, Urban area intermediaries, logistics providers, Distribution centre Local Distribution distributors and retailers Provide common support services like marketing , training , Compost/Manure from waste Food Processing units technology and agri business consulting Bulk buyers (Hotels / Caterers / Retailers) Exports ‘Organize’ the ‘un-organized’ rural eFarm Common Services to urban supply chain Planning &Coordination Research Call centre / Communication Technology Training & Support Manage the network to ensure sustainability across the chain
eFarmDirectEnabling MORE farmers Reach WIDER Markets..In Seconds
What is eFarmDirect ?Key problems for farmer Suppliers Transporters1) Limited choice of buyers2) Lack of Labour3) Rising Input Costs of agro-supplies Buyers Labour4) Rising Transport Costs5) Unviable market prices eFarmdirect.com All other Industries use Web portal | Call centre| SMS ICT tools and Software applications to manage operations Whereas, efarmDirect is a Farmers have not been B2B online platform which uses IT enabled and are cut simple ICT tools to off from the ‘new’ CONNECT farmers with all the agri world supply chain stakeholders to build a nationwide farmer’s marketing portal 44
Some Real World Examples of How Technology has enabled comman man in India Removing the agents : IRCTC train ticket booking No more touts . No more queues !! Hassle free train ticket booking from home or browsing centre ! India’s Most successful e-commerce ventureB2B Business directories : Justdial / India martAny business/trade information is just a ‘phone call’ away . Detailsavailable over call centre or via SMS Logistics : Call Taxis ( Meru / Fast Track etc.,) Cabs available on-call .Timely pickup/drop, Economical fares – combination of technology & well trained staff for great serviceBrown Collar Job Board : Babajobs.comJob portal for brown collar job seekers – connects maids, drivers, plumbers,technicians to customers via call/mobile/sms . …eFarmDirect is a combination of such business models to solve the ‘farmer’s crisis’ 45
What all products ?Vegetables and Fruits Over 5000 crops, varieties and farmCereals & Pulses based products are already listedFlowers and Aromatic productsHerbs ,Spices and Forest productsPlantation crops (cash crops) More produces, categories will be added based onLivestock & Poultry needProcessed products / Value added productsSpecial category for ORGANIC PRODUCE 47
Who are the buyers listed in portal Organised M andi/ Hotels Exporters Organic retail chains Major retail/whole markets salers Caterers Food Local shops processors Traders Niche Restaurants product Vegetable buyers vendors Wholesalers 48
Who are the agro-suppliers ? Input Irrigation Tools and Storage Institutionssuppliers equipments Farm equipments Cold storage Banks / MFI Seeds Drip Tractors Warehouses NGOsFertilisers Pumps Machineries Ripening Agri-clinics / Motors chambers Labs Rentals /Lease 49 Consultants
DATA COLLECTION - FARMER Production data • Produce name, variety • Grade • Typical yield at harvest • Harvest cycles • Cost price at farm gate • Organic ? Certifications ? Farmer informationHow data is collected ? • Name • Address•At farmer mela’s and • Contact numberexhibitions • Preferred mode of payment•Through partners like NGOs, • Bank / Post office detailsKVKs, Agri institutions, rural • Photobanks and MFIs • Attestation•Through franchisees Other information • Land type/irrigation type • Banking information 50
Basic Buyer-Seller Search and FeaturesSearch by produce, availability,quantity, price Demand / Supply projections for future planningFarmer/buyer Map view fordetails with locatingcontact info farmers by area 51
Advanced Features Rating and review mechanism farmers and buyers can provide feedback which builds transparency andAudio Visuals Marketing identifies ‘good’Farmers can add performersaudio/videos/picturesabout their produce /products to showcaseuniqueness GROUP view map small farmers to respective SHGs, Federations and Institution – enables ‘aggregate’ of quantities to meet larger demands as a ‘combined entity’ 52
Roll Out Plan Will create over 3 Million jobs in villages and rural areas in 4 years 53
Livelihood Generation and Social Impact • Creating Agri entrepreneurs in Rural Areas • Rural youth/ Women are trained as local representatives for data collection/updation • Revenue from commissions and value added services • Providing Employment for Disabled and Under : priveleged • Call centres/BPOs operated by differently abled – visually challenged , speech/hearing impaired • Job opportunities for those tapping unconventional talent pool of India • Reverse migration to villages • Create labour pools of semi-skilled labourers for farm work who are available ‘on-call’ • Create central equipment leasing model so that farmers can ‘hire-an- equipment and operator’ to reduce equipment costs 54
Current Status•Inaugurated in Bangalore krishi mela by Viceof Feb 2012 as Chancellor of UAS, hebbal on 20 Nov 2011•Stalls in major krishi melas – bangalore, nasik, Pune drew over 1 lakh farmers•Over 5000 registered farmers , 1000 buyers, 150 suppliers PAID in pilot phase and operational•Next version to be inaugurated at FOODS 2012 Global conference at MOP vaishnavaAwards and Recognitions–Proto.in ‘Most promising startup of 2011’–Best Stall award at Bangalore krishi mela and runner up inNasik krishi mela–Presented to Sam Pitroda’s Action For India Forum in NewDelhi under’ innovations of ICT in Agriculture’Pilot projects (under discussion/planning stage )–Uttaranchal government’s aajeevika – pilot at Uttarkashi–NABARD,Chennai – Pilot in Chennai and surrounding districts–IFAD – Roll out in Project areas of IFAD in India–NSDC – Rural jobs training and portal 55