SMALL BUSINESSES DOMINATE THE U.S. ECONOMY Source : South Western Publishing Survey Report
People who own, operate, and take the risk of a business venture are Entrepreneurs “I studied everything but never topped.... But today the toppers of the best universities are my employees” - Bill Gates “True Entrepreneurship comes only from Risk Taking” Dhirubhai Ambani Think beyond the Safe Zone
Crowned Entrepreneurs in India Deep Kalra Ex-Employee, AMB Amro Founder, MakeMyTrip.com Dhruv Shringi Ex-Employee of ebookers.com Founder, Yatra.com (Lost 3 Partners in the beginning)
Sachin and Binny Bansal Alumni of IIT, Delhi Ex. Employees of Amazon.com Founders, FlipKart.com Initial Investment : INR 4 Lacs INR 500 Crore Company in 5 Years, 5000 Employees Acquired WeRead, Mime360, ChakPak.com and Letsbuy.com Vishal Mehta Founder & CEO, Infibeam.com Ex. Employee of Amazon.com
VSS Mani Managing Director, JustDial.com Initial Investment : INR 50,000 Current Company Value : INR 600 Crore Failures : AskMe in 1989, Wedding Planner with The Times of India Vijay Shekhar Sharma CEO, One97 Communications and PayTM B.Tech., Delhi College of Engineering (Failures : XS Corps in 1999)
Murugavel Janakiraman Founder & CEO, Bharat Matrimony Manik Arora Director, IDG Ventures India Ozone MediaKreeda Games Sourcebits TechnologiesVserv Digital BrainBeesFirstCry.com Goodlife.comMyntra.com Zivame.comLenskart.com Watchkart.comBagskart.com
Kunal Bahl Co-founder & CEO, Snapdeal Started Jasper Infotech in 2007 Snapdeal in 2010 Shantanu Prakash Director, Educomp Solutions Ltd. Incorporation - 1994 Bachelors from SRCC, Delhi University and MBA, IIM- A Launched eCampus Launched PlanetVidya.com Launched Smart Class Content solution Zeebo Inc.
Patanjali Keswani Lemon Tree Hotels Pvt. Ltd. Ex. Employee : Taj Group of Hotels B.Tech (Electrical Engineering) from IIT Delhi Verghese Kurien Founder, AMUL India Ex. Employee of Tata Steels Education : Mechanical Engineering Anil Jindal Milkman to Millionaire CEO and MD, SRS Group Madhur Bhandarkar Ex. Exployee : * Video Cassette Library * Ram Gopal Verma Productions
Companies with less than 50 employees, 44% were satisfied. Companies with 50-999 employees, 31% are satisfied. Business with more than 1000, only 28% are satisfied.
Entrepreneurs Vs. Intrapreneurs Intrapreneur - in an existing organization turns new ideas into profitable realities. Intrapreneurs - notice opportunities and take initiative to mobilize resources, however they work in large companies and contribute to the innovation of the firm. Intrapreneurs often become Entrepreneurs. Entrepreneurs - notice opportunities and take the initiative to mobilize resources to make new products and services.
Entrepreneurs are Made … Not Born! Developed early in life -> – With Family Environment Self Employed Parents -> – Support – Encourage Independence – Achievement – Responsibility
Advantages of a Small Business Greater Opportunities Feel more important Feel more secure Comfort Level
Disadvantages of a Small Business Lower guaranteed pay Fewer benefits Expected to have many skills Too much cohesion Hard to move to a big company Large fluctuations in income possible
Successful and Unsuccessful Entrepreneurs Successful – Creative and Innovative – Position themselves in shifting or new markets – Create new products – Create new processes – Create new delivery Unsuccessful – Poor Managers – Low work ethic – Inefficient – Failure to plan and prepare – Poor money managers
Characteristics of Entrepreneurs Key Personal Attributes Good Technical Skills Strong Managerial Competencies Successful Entrepreneurs
Suitability for Entrepreneurship Interests – Hobbies and interests – Past experiences Aptitude Assess the advantages of Entrepreneurship Assess the disadvantages of Entrepreneurship
ADVANTAGES OF ENTREPRENEURSHIP Own Boss Choose a business that interests them Creative Lots of money
DISADVANTAGES OF ENTREPRENEURSHIP Risky. Uncertain and Irregular Incomes Long Working Hours Must make all decisions by themselves Frustration with lack of immediate success Inability to make the switch to results, or goal orientation. Poor planning and implementation skills.
Entrepreneurship: Corporate INTRA-preneurs To reap long-term benefits, top management must allow it to flourish in the day-to-day operations of the business …. This is known as “ Skunkworks ” Skunkworks - Islands of intrapreneurial activity within an organization. REMEMBER: On the island, formal rules and policies of the organization often DO NOT apply.
Evaluation of Opportunities and Risks Is there a market? Will people buy? How much money would it take? Will I be able to borrow that much? How many hours a week are required? Am I willing to commit that much time? What are the risks? What is the rate of business failure? Do I have the right background? Do others who own this kind of business have more experience? How much money could I make?
Questions and Factors What are my motivations for owning a business? Should I start or buy a business? What and where is the market for what I want to sell? How much will all this cost me? Should my company be domestic or global?
Market Research Planning & Research essential Extensive market surveys (family, friends, neighbors … ) Magazines and Polls offer some information on the market - Govt. Reports
Entrepreneurship: Managing a Family Business Over 50% of the U.S. Gross Domestic Product (GDP) is generated from family business. 12% of CEOs on the Inc. 500 list describe their company as a family business.
Entrepreneurship: Managing a Family Business Two reasons not to go into business with your family or friends. … Families fight Friends fight. Often, it involves money. So a business environment could potentially breed arguments, disagreements, and feuds. Fighting can occur during early developmental stages when hours are long and pay is low. Or, after success has been achieved.
Basis for a Personal Entrepreneurial Strategy Self assessment based on evaluation of – Your thoughts and actions – Feedback from others Become aware of blind spots Reinforces your concepts of your strengths and weaknesses Evaluation of data that you gather Develop insights about yourself Establish goals to fill in the blank spots – Education – Experience To make appropriate choices-to find fit with the ideas that present themselves.
Begin with a Personal and Company Vision Charts your personal and the company’s future strategic course Defines the business makeup for 5 years (or more) Specifies future technology- product-customer focus Indicates capabilities to be developed
Myths About Corporate Entrepreneurs Money is prime objective High risk takers Luck is critical Lack morals or ethics Power-hungry attitude and must build an empire
Elements of this Presentation are Courtesy of Dr. Mohan Sawhney @ Kellogg School of Management Key Ingredients for Success Big Idea Competent Team Sufficient Money Good Plan RelentlessExecution And a generous helping of luck…
Courtesy of Dr. Mohan Sawhney @ Kellogg School of Management The Idea: Assessing the Balance Promise Differentiation Support Price Target Audience What’s in it for me?Why is yours better? Why should I believe you? Is this for me? What are my costs of making it useful? Effort required Is it worth it? Risk What might Go wrong?
Courtesy of Dr. Mohan Sawhney @ Kellogg School of Management Growth vs. Profit – Growth today is worth many times the profits tomorrow Speed vs. Deliberation – Know your speed limit, and don’t let VCs make you exceed it Opportunism vs. Strategy – Start out being opportunistic, but quickly become strategic Service vs. Product – Servicize to learn, then productize to earn
Firm and Company Formation Proprietary Firm LLP Company Pvt. Ltd. Company Ltd. Company Corporation
QUICK TIPS Find a Vacuum and Fill It. Do Your Homework. You Won't Be Committed if You're Not Having Fun. Work Hard, Play Hard. Set Goals (but go easy on the "vision" thing). Trust Your Intuition. Reach for the Sky (at least once). Learn to Sell. Become a Leader. Recognize a Failure and Move on. Make the Most of Lucky Breaks. Embrace Change as a Way of Life. Develop Your Contacts. Use Your Time Wisely. Don't Put up with Mediocrity. Chase Quality, Not Dollars. Act Quickly in a Crisis. After a Fall, Get Back in the Saddle Quickly.
Thanks … Dr. Gaurav Kumar Managing Director Magma Research and Consultancy Pvt. Ltd. Ambala Cantt. http://www.magmaconsultancy.com firstname.lastname@example.org +91-9416366178, +91-9034001978