enter nship

7/28/2019 Enter Nship

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EntrepreneurWhen we will refer to an Entrepreneur, we

will not limit our definition to include only those

who are founders of organizations or Businesses.

Our definition of Entrepreneur will refer to the

person who has final power in the business, who

directs the company, and the one who takes

commercial risks relating to ownership of thecompany

Profile of an Entrepreneur Profile of an Entrepreneur1 Self Confident

1 Only you Know if you have it Now2 Have you taken major Decisions in

your life?

3 Self Assessment Test4 Self Assessment Test

2 Have you been taking important decisions inyour life?

3 Do you feel alone & helpless when facedwith difficult decisions?

4 Do you hesitate to ask for help when reallyrequired?

5 Can you start a project and take it tocompletion in spite of obstacles?

6 Can you take an important decision and stickto it when challenged?

7 Do you like to be in charge and beresponsible for the situation?

Self Assessment Test7 Do other people deal with you with respect

and trust you?

8 Are you ready to work long hours with littleimmediate compensation?

9 Do you like dealing and meeting with peoplewhen there is no real compulsion?

10 Can you persuade people to go along withyour dream?

11 Do others easily understand your conceptsand ideas?

12 Do you want to start a business more thananything else?

Profile2. Value Freedom and are very Disciplined

1 Freedom is not do what you want todo when .

2 Entrepreneurs do not like some onebreathing their neck. Will take orders

only from competent people

3 Responsible for Employees &Customers

4 BIG B3. Flexible&Opportunistic

1 IBM Computers as a general purposemachine

2 Flowing River, with the emerging flowof events

3 Journey of a Photographer to anEvent Manager

4 Softcell Ability to read patterns onthe wall, flexibility and ability to Seize

the moment

5 Profile4. Entrepreneurs work hard & are Goal

oriented.

1 AzimPremji works 70 hours a week2 Ability to work Unsupervised

5. Entrepreneurship is about being Egoless

1 Success becomes your biggest Enemy2 Customers will keep you waiting3 Rigid Stand in negotiation does not

help

6. Entrepreneurs love and Value money

1 For some it is Power2 For others it is a way to Contribute3 Use it as a Transition

Common Traits


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1 Have they spotted the opportunitiesinstantly?

2 Do they see the big picture?3 Do they have complete conviction about

Idea?

4 Are they able to connect the opportunitywith their innate capability?

5 Are they passionate about their line ofbusiness?

INTRAPRENEURSHIP The Spirit of Entrepreneurship within an

Existing Organization

Interest in Intrapreneurship1 Intrapreneurship is, spirit of

Entrepreneurship within an Existing

Organization

2 Doing your own thing, your way to createsome thing on your own.

3 Xerox Technology Venture (XTV) is aprominent example (PARC)

4 Single Persons Imagination5 Invention & Innovation6 A Cannon Intrapreneur invented Contact

Lenses Software

7 Entrepreneurial spirit is necessary in order toinnovate (Flexibility, Growth &

Diversification)

Intrapreneurial Activities1 New Business Venturing2 Innovativeness3 Self Renewal4 Pro activeness Corporate VS Intrapreneural Culture1 In the Corporate Culture the decision is

based on Data collection

2 In Traditional culture emphasis is onfollowing instructions & protecting oneself

3 Corporate follows hierarchical systems.Intrapreneural system is flat with

1 Networking2 Team work3 Sponsors4 Mentors

Comparison Traditional Manager Intrapreneur Comparison Traditional Manager Intrapreneur Transformation Process1 Organization operates on frontier of

Technology

1 Apple iPhone, iPod &iPad2 Searle Neutrasweet3 Amul VergisKurian

2 Develop processes to Indentify hiddenpotential

1 NEC (Enterpreneur Search)2 Xerox

3 Trial & Error encouraged1 3M2 Searle

4 No Opportunity Parameters1 Does not follow Hierarchies2 No departmental Barriers3 Transformation Process

5 Resources are made1 Available

1 Accessible3 Multidisciplinary Team approach

1 People from different departments


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2 Match employees for creativity withteam diversity (Functions, Age,

Gender, Education, Culture, Mind-set)

5 Long time Horizon1 Outlook of a VC2 Not sitting on your head

6 Voluntary Program Transformation Process9 Multiple Channels for new idea Approval

1 Several Yes. But one No can kill theIdea

2 3M has multiple channels10 Establish Competitive Spirit

1 Motorola several teams for itswireless division

2 IBM had 6 teams working on the PC11 Kill your own Products

1 Star Bucks, Benetton2 HLL & P&G3 Microsoft4 HP mandate - 60 % new products, last

3 years

Leadership Characteristics1 Understands the Environment2 Is Visionary & Flexible3 Creates Management Options4 Encourages Team Work5 Encourages Open Discussion6 Builds a coalition of Supporters7 Persists Establish Intrapreneurship process1 Top management should initiate the process

after getting convinced thoroughly

2 Consultants & Internal Champions to beidentified

3 Focus areas&Ideas to be identified, includingfunding & resources

4 Should use technology to maximum possibleextent

5 Sponsors & Mentors to be identified6 Establish strong support structure7 Reward performance8 Review the performance of the various

initiatives

Success of IntrapreneurshipVenures1 Success not as much compared to the

independent ventures

2 However focused efforts have yielded results1 3M2 IBM (PC, ATM, Industrial Robot)

Family BusinessWhat exactly is a Family Business

1 The family owns a High % of Share Capital2 Family members employed at Higher

Positions

3 Expression of intention for familyinvolvement

4 Generations of the same family involved5 Controledby direct decedents of the Founder6 E.g. Birlas, Khetan, Goenka, Jindal, Bajaj

Unique Position

Advantages

1 Long term Orientation2 Family Culture is a source of great pride3 Functions on a less Bureaucratic manner4 Greater Willingness to come out of bad times5 Training the young members

Disadvantages

1 Confusing Structure


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2 Autocratic Style3 Young Generation may not be worthy4 Strenuous Succession battles5 Family Members may drain money

The Founder

1 Duel Role1 Head of the Family2 Head of the Business

2 Set the Vision3 Build the Organization4 Involve Family Members constructively5 Succession Planning

Next Gen

1 Difficult task to carry the Legacy2 Cant make sweeping Changes3 Load of Expectations4 Faced by Changing business scenario

Entry of Family Members

It is a continuing issue and the Founder must

develop some ground rules

What about those who want to come back?Or wish to have part time involvement?

Should they be first inducted? Or skilled? Should they be encouraged to join

irrespective of their capabilities?

Role of New Entrants

1 Offer Existing Position or New Role ?2 What happens if she is given a preference?3 Should the role suite her abilities?4 Is the entrant interested in existing business?5

Some considerations to be successful ?

Involve the old generation

Step by step approach

Get their trust

Compensation

1 Different family member live different LifeStyle

2 Contribution to the business is not equal3 Older people expect to be paid higher4 Family members are paid more than others5 The rise of a family member is faster &

often

Non Family Members

Challenges

1 Cant aspire for the top positions2 Have to train the young generation3 For FM the challenge to retain them

Creating Environment

1 Discuss career paths transparently2 Offer Compensation benefits at par3 Involve them in top level discussions4 Emphasize their contribution in meetings5 Treat family members at par in office6 Involve in discussion on succession planning7 Offer perks to Senior people8 Periodically assess Motivation & Relationship

Succession Issue

Necessary because of old age, health, death and

legal issues

Emotional, Cultural as well as Legal issues

Choosing a Successor is not easy task

Grooming a Successor is more difficult

Succession Strategy

Benefits of early entry

1

Becomes familiar with the Business

2 Develops relationship with others3 Develops on the job skills4 Good performance leads to credibility


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Benefits of late entry

1 Success outside leads to credibility2 Brings Best practices from the industry3 Broad business perspective4 Competence is jugged objectively

Best Practices for Succession

1 Open communication in the Family & theBusiness

2 Independent roles early on in the business3 Importance of Shared Vision4 Documentation5 Conflict Resolution

Grow or not to grow?

Rajshree Chemicals is one of the oldest chemical

companies founded by the late father of Sunil &

Rajesh, both being equal partners in the family

business. They operate from one office but from

different floors.

Sunil has 2 daughters who are happily married. He is

content with the business, wants the status quo.

His younger more dynamic brother Rajiv, has 2 sons,

both of whom are out of college. Rajiv wants to

expand the business, but is stopped by Sunil every

time there is an opportunity.

You are the CA/Consultant to the firm. What will you

recommend Rajiv as a way out?

Should you get a Professional outside CEO?

Entrepreneurship Technician, Manager & Entrepreneur The Entrepreneur VS Ordinary People1. Warrior takes every thing as a challenge,

Normal people take life either as

Blessing

or

Curse

1. People defend what they already know,Successful people have an insatiable need to

know more

2. Entrepreneurship is a never ending processand not a Stage to be reached

3. Business it a Reflection of life - Honestly,Instantly and Directly

Entrepreneurial Myth1. More businesses close down than they start2. The myth is people who start the business do

so with an Entrepreneurs mindset

3. Most people start with a Technicalbackground

1. Carpenter, Electrician, Plumber2. Hair Dresser, Script writer, Web

Designer

FATAL ASSUMPTION

If you understand the technical work of the

business, you understand the business that does

the technical work

Biggest Limitation of a TechnicianIf the Technician did not know how to do the

technical work of the business, he would have to

learn how to get it done.

The 3 Personalities1. All of us are three personalities in one

1. The Entrepreneur2. The Manager3. The Technician

2. They want to be the Boss but not want tohave a Boss

3. Story of1. Fat Guy2. Fit Guy

The Entrepreneur1. Turns most trivial things into exceptional

opportunities


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2. He is the Visionary, the Dreamer, the catalystfor change, in all of us

3. He is the Creator Steve Jobs, Tom Watson,Ray Kroc

4. Likes change all the time5. The Entrepreneur lives in the future6. Other people are a problem for him7. The Entrepreneur therefore wants control The Manager1. The Manager Brings Planning, Order &

Predictability

2. He fits everything into Boxes3. Entrepreneur lives in the Future, Managerlives in the Past. Hewants status quo4. Enterpreneur wants Change VS Order5. Entrepreneur looks for Opportunities against

Problems

6. Manager lives in a house & wants to staythere

7. The Manager creates rows of things8. The manger cleans the mess The Technician1. He is the doer, believes in doing everything

himself

2. Without him nothing will get done3. He is comfortable with doing one thing at a

time

4. The Technician lives in the Present5. For him the manger is a threat6. Entrepreneur is an idiot, most ideas of the

Entrepreneur do not work

7. And for both the Technician & the Manager,Entrepreneur is the root cause

Evaluate Yourself1 Entrepreneur ?2 Manager ?

3 Technician ? The Technicians Fate

3 Phases

Infancy

Adolescence

Growth

Infancy (Technician's Phase)1 Free of a Boss and do what he wants to do2 Life is easy to start with, he knows the job3 In the beginning, the owner & business are

one thing

4 As business grows, the work gets on him5 He also has to do what he doesn't know how

to do

6 The master juggler begins to drop some ofthe balls

7 There is no getting rid of a boss Adolescence (Managers Phase)1. The technician decides to take some help2. Accountant is the best choice, who knows it

all

3. He starts depending completely on theperson with a hope to get free

4. Shortly, the accountant stats makingmistakes

5. It is because of management by Abdicationrather than management by Delegation

6. You have two choices1. Shrink Back2. Continue Resolutely

What went wrong1. Lack of anticipation & Planning additional

demand, skills, people, capital, space etc.

2. Lack of understanding of the other 2 roles1. Role of a Manager2. Role of an Entrepreneur


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3. He failed to educate himself sufficiently, sothat the businesss foundation & structure

can carry additional weight

4. By asking the right questions where do I wishto be, when do I wish to be there, how much

How to set it Right1. You will be failing at times, but planning is

required

2. Write it down cleanly for yourself and others3. Nothing written, nothing committed, nothing

concrete

4. In the process of defining the future, the newreality emergesYou stat living The future

in the present

5. Mature companies start differently than therest and continue that way (with a vision

that shapes the present)

The Entrepreneurial PerspectiveEvery day was devoted to business development

and not doing business

We didn't do business, we build one

Choosing the Core Team High Performance Entrepreneur Team Capabilities of the Core Team

Ability to bring business, ability to produce & deliver,

the ability to read numbers and the ability to

negotiate with the investors.

The Founding Team1 Proven Competence & Pull ones weight

1 Someone who has created hisenvironment

2 Led the team through corporaterough waters

3 Ability to pull his own weight4 Dont choose a well known retired

person without knowing his

deliverables

2 Complementary Composition1 Competency as well as Attitude &

Temperament

2 The Team can be air dropped in aforest & will Survive

3 Multitasking Capability1 Business should continue without

missing a beat

2 Business is like a relay race The Founding Team4 Shared Vision

1 Leaders job is to create Vision & articulate it

2 Being a leader in the Industry VS first Million

4 Transparency1 Need to sit down &Share before

decide to start

2 What ever impacts the businessneeds to be shared

5 Personal Integrity & Mutual Trust1 Integrity is not about convenience. It

is a non issue

2 Your deserve the employees &customers you get

3 Develop Integrity Policy within theorganization

The Founding Team7

Ability to question & take disagreement

1 Diversity in thinking is constructive2 Take a Strong position. However,

outside the board room we are

friends

8 Resilience is above everything else1 Sheer ability to hang on- Business,

Personal & Other

2 Get back in the Saddle again3 Wipro & IBM in 1990, 88 MG Road

office


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9 Sense of Humor1 Humor is a serious matter2 Company Jokes & Pranks3 Who should you not give Stake

Consultants People promising you business thro contacts Lawyers & Accountants

Venture Capital Breathing life in your Child Stages of Business Development Funding1 Early Stage (Angel)

1 Seed Capital2 Start Up

2 Expansion (VC)1 Second Stage2 Third Stage3 Forth

3 Acquisitions

Description

Small amount to prove concept & financial

feasibility.

Product Development & Initial Set up. No

commercial sales yet.

Working capital for Initial Growth. No positive cash

flow / Break-even yet

Rapid Sales Growth. Positive Profit

Bridge financing. Go Public.

Assuming control of another company

How does a VC operate ?1 Professionally managed pool of EquityCapital2 Equity Pool is formed by Limited Partnership

of

1 Wealthy Individuals2 Pension Funds3 Foreign Inventors

3 The pool is managed by general partner ofthe VC firm in exchange of a fee & % of Profit

4 Investment is done at different Stages1 Early Stage2 Expansion Stage3 Acquisition Stage4 Operations of VC

5 VC participates by involvement1 Monitoring the Portfolio2 Finance Planning3 Impart business skills

6 VC gets his money when1 Firm is taken over by another

company

2 In the event of going for an IPO Nature of Indian VC Industry1 Silicon Valley has popularized concept of VC2 In India it is a nascent industry

1 Local companies have not yetparticipated

2 Some large banks run VCs as a part oftheir portfolio

3 A few foreign VCs are operational inIndia

3 Most wealthy individuals prefer to parkwealth in real estate as

VC $ Invested VC Raised by Stage of Business

(2002)

1 Seed & Start-up 02 %2 Early Stage 23 %3 Expansion 57 %


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4 Later Stage 18 %Factors for Investment Decisions

1 Low Risk2 Lesser deals to be Evaluated3 Less Monitoring4 Quick Returns Capital Raised by Stage of Business Types of Risk Capital Markets1 Informal Risk Capital Market2 Venture Capital Market3 Public Equity Market Informal Risk Capital Market1 Equity participation by Invisible wealthy

individuals

2 Virtually in accessible to manyEntrepreneurs, but it is alargestpool of Risk

Capital Market

3 Investors seek to understand the Industry &have a need to monitor progress of the

company

4 Considerations1 Risk /Return Ratio2 Management Team3 Commitment4 Business Area

Who to approach?1 If your needs are small, raise money from

your own resources - Family, Fools & Friends

2 If your plan is ambitious, approach AngelInvestor

3 As business develops contact a VentureCapitalist

4

Your VC will help get you funds for the nextstage

5 Finally go the Acquisition or IPO route Philosophy of VCs

1 VCs objective is long term capitalappreciation. The companys objective is

survival and growth

2 Early stage financing attracts a risk. VCexpects more return and invests lesser

amount

3 The VC may not seek control of the company.However, will keep at least one seat on theboard

4 He will leave the day-to-day operations tothe company. Will offer financial help,

advice, management planning and contacts

5 Since it is a long term relationship, VC willexpect transparency and trust, no surprises

Investment decisions by VC1 Investment decision is both an Art & Science

1 Art Intuition & Gut feeling2 Science Systemic approach, Data

gathering

2 Investment Portfolio Mix1 Number of Early Stage, Expansion &

Buy outs

2 Nature of Industries & Companies3 Volume of Investment4 Geographical area5 VCs Expectation from the Company

3 Strong Management Team1 Solid Experience & Background2 Personal Commitment & Investment3 Positive Family Support4 Ability of the team to Execute

2 Unique Product Opportunity

1 Growing market2 Diversity of the Market

3 Patents & Certifications

VCs Expectation3 Capital Appreciation


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1 Stage of Involvement2 Amount of Capital Invested3 Return/Risk Ratio4 Available Exit Options

4 Downside Risk

1 Assessment of Risk2 Steps to mitigate the Risk3 Investment Process

2 Preliminary Screening1 Executive Summery2 Detailed Business Plan

3 Agreement on Preliminary Terms1 Compatibility2 Amount of Money Involved3 Control4 ROI5 Exit Option

Investment Process3 Due Diligence

1 Survey & Meetings with all RelatedParties

2 Financial Statements4 Final Approval

1 MOU with all Terms & Conditions2 Engage a competent Lawyer

Self Evaluation1 Do you understand the Market,

Competition?

2 How many similar companies operate in thespace?

3

Why will you Succeed in the market?

4 How will you get your first Customer?5 How will you Reach the customers?

(Distribution)

6 How will you Retain them?7 How will you Scale your Business? Approaching a VC1 Understand the area of his focus2 Approach in a professional business manner.

Send a well conceived Business Plan

3 Take time to seek out an Introduction4 Be ready with a well thought out Oral

Presentation

5 Develop early Rapport & Chemistry6 Do not resort to a very Rigid Approach Guidelines for Dealing with VCs1 Avoid Shopworn2 Do not discuss the deal with other VCs3 Approach thro reliable Contact & discuss

fees

4 Do not include intermediary in initialmeetings

5 Test market the concept for a few customers6 Be careful about what is Projected &

Promised

7 Disclose problems/negative situations rightin the first meeting

Guidelines for Dealing with VCs8 Reach a reasonable understanding with the

VC regarding timeframe of response

9 Do not sell the project based on responsefrom other VCs

10 Be careful about statements like there is nocompetition for this product

11 Do not show Financial Ignorance12 Do not show concern for past problems13 It is not love at first sight Guidelines for Dealing with VCs

14 Do not try to impress the VC or be too friendly


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15 Be careful about VCs who do not want toknow your business (Dumb Capital)

16 Be concerned about the color of money17 Find out the track record of the VC18 Take commitments from him19 Go with a VC who treats you at Par20 Approach VC only when absolutely required21 Frugality is a great Virtue

Factors in Valuation1 Nature and History of the business2 Outlook of the Economy and the Industry3 Net Value (Book Value) of the Stock4 Weighted Average of Earnings of the

company less Costs

5 Dividend paying capacity of the company6 Goodwill and other intangibles7 Previous stock of sale8 Market price of the stock of similar

companies in the Industry

Breaking NewsAssume that you have been very lucky and

get considerably big fortune from an unknown

relative. You have decided to become a business

Angel straight out of college.

What will be your Investment objectives?

The Road not Taken1 Mouthshut.com

1 CEO Faisal Farooque2 P2P information exchange on

products and brands by consumers

themselves

2 Plug HR1

CEO PrashantBhaskar

2 Manages HR in 30 companies across 7industries in 5 cities.

Market Driving Strategies Strategic Perspective CEOs Demand1 CEOs Demand their organizations to be

Innovative

2

Stress Radical & Discontinuous innovations

3 Market Driven Companies:Current practice uses, Market Research for well

defined segments - HLL, P&G and Nestle

4. Market Driving Companies:Successful Pioneers - Amazon, IKEA & Starbucks

have created new markets.

Market Driven Market Driving Market Driving Arvind Eye Hospital1 Founded in 1976 in South India by 58 year

eye surgeon, Dr. Venketaswamy

2 His vision was to serve 20 million residentIndians blind from Cataracts

3 The Hospitals in India fall into 3 categories:1 Private Hospital2 Government Owned3 Rural Areas

4 Dr. Vs vision was to serve both the Rich &the Poor for modern cataract surgery almost

equally

Arvind Eye Hospital5 The Sales, Advertising & Promotion is

focused on serving non paying patients

6 The sales peoples target is to get poorpatients

7 The profit of AEH is 50 % even though 65 %patients served do not pay. No charity

8 The Operative process is like an assemblyline, similar to McDonalds Hamburger


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9 In 2002 AYH served 1.2 million patients &performed 2 Lac eye surgeries

Market Driving Approach1 AYHs approach, resembles that of Amazon,

Dell, IKEA, Wall-Mart & Sony

2 Market Research seldom leads to a Breaktrough

3 Market Driving firms see the worlddifferently, their vision addresses deep

seated, latent customer needs

4 Henry Ford said If I had listened tocustomers, I would have given them a faster

horse

5 Rather than focusing on the market share inthe existing markets, they create their ownmarkets

Market Driving IKEA Style1 The furniture retailer, IKEA in 2008, had

70,000 employees, in 30 nations, turnover of

11 Billion

2 Rather than copying, what everyone else wasdoing, they did things totally differently

3 The model of Traditional Retail furniturestores

1 Established Customers2 Costly retail locations3 Expensive independent designers4 High finished product inventory5

Labor intensive manufacturing

6 Expensive delivery to the Customers

Market Driving IKEA Style4 IKEA Style

1 Young families2 Clean Scandinavian design3 Inexpensive peripheral locations4 Low prices5 Immediate delivery

6 Pleasant shopping experience7 Transportation & delivery by the

customer

5 Instead of learning from existing customers,teach potential customers their drastically

different value proposition

Characteristics of Market Driving Companies1 Lead by Vision rather than Market Research2 Redraw Industry Segmentation3 Create new Price Points for Value4 Educate Customers for Sales Growth5 Reconfigure Channels6 Exploit the Buzz Network7 Exceed Customer Expectations Redraw Industry Segmentation1 AYH did not accept the normal segmentation

as Rich & Poor

2 Southwest Airline destroyed segmentationbetween Ground & Air Transportation

3 Wal-Mart Demonstrated that small ruraltowns can support large discount stores

4 SAP developed and deployed Enterprisesoftware instead of functional

Departmental software

Lead by Vision

1 Customers cant visualize revolutionaryconcepts and technologies by themselves.

2 For Titan, Market research proved otherwise3 Fred Smith of FedEx, track the Package4 Sam Walton of Wal-Mart, Save and at the

same time, enjoy a better life Style

5 CCD, No one will pay Rs. 75 for a cup ofcoffee

6 Employees are motivated by Vision of thefounder rather than the pay cheque

Create new price points for Value


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1 Southwest Airline, AEH, Dell and Wal-Martcreated new price points, which other

companies could not quickly replicate

2 Star Bucks & FedEx, Disney World - Premiumprices and offered the customers a value

proposition and experience they could not

refuse

Educate Customers for Sales GrowthPrimary job of Market Driving companies is, not to

sell but to educate the customers

1 AEH You can have a normal vision2 IKEA Affordable, State of the Art furniture3 Wal-Mart Discount Store4 Amazon Buy Online Reconfigure Channels1 FedEx Used its own planes, in a Hub &

Spoke system, over traditional Point to Point

2 Wal-Mart Insists that P&G rationalizeproduct lines also eliminated the wholesales

are distributors

3 Dell Direct Eliminated middle men4 Amazon Internet over a physical book store Exploit the Buzz Network1 South West Airlines Customers are our

ambassadors

2 Nike did not run a single advertisement ontelevision till it was a 1 Billion company. Their

initial stagey was Word of Foot

3 Virgins Richard Bransons Hot AirExpeditions

Exceed Customer Expectations1 Arvind Eye Hospital2 East West Airlines3 Wal-Mart Stores Barriers to Market Driving in Established

Firms

1 Overturn Industry Expectations

1 Established companies reactnegatively to surprises

2 People cant unlearn existingpractices however irrelevant

3 Kodak & Digital Technology2 Market Driving Ideas are Risky

1 Involve much higher risk of failure2 Even can destroy individuals career

Barriers3 Market Driving Consistently lose to

Incremental Innovations

1 Resources go to well proven,established technologies

2 R&D also favors tangible, familiarbusiness projects

4 Market Driving Ideas kill the existingbusiness

1 IBM Focused too long on MainframeBusiness

2 Microsoft stuck to its productbusiness

Market Driving Transformation Process1 Develop process to Identify Hidden

Potential:

NEC every year invites proposals for their

own start up companies

2 Allow space for failure:

3 M allows 15 % of the time for researchersfor projects of their own choice

3. Match Employees for Creativity:

Mix diverse capacity of people to mix

together Sex, Nationality, Religion, Experience

Transformation4. Multiple channels for new Idea Approval:

Approval of a new business idea needs all Yesand a single No can kill it

5. Establish competitive teams:


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Motorola makes it wireless divisions

compete with each other. IBM had 6 teams working

on the PC

6. Kill your own products:

HP fosters competition amount its own

division. Star Bucks opens a new outlet near to its

successful outlets

Solutions Business Perspective Need for Solutions

Enhance Customer Value Design Products for Services1 In a Product company services are used as a

tactical weapon.

2 Products are developed in a modular fashionto facilitate Plug and Play. Sales value is

always high.

3 Post sales implementation is not easy and istoo costly.

4 For a Solutions company services itself is aproduct. Own, Complementary,Competitors.

Turnaround of IBM1 Between 1991-1993 IBM made a loss of $16

Billions. Lou Gerstner, ex AMEX became the

CEO.

2 Issues at IBM1 Sales people sold what R&D provided

them.

2 Closed Company with inside view.3 Gerstner made customer visits a priority

1 IBM had the entire portfolio.2 Customers needed integration.

4 IBM Global Services (IGS) provided whatcustomer. wanted instead of Greattechnology.

Product Opposite Focus

1. Most companies expect their sales teams to push

products as a part of solutions e.g. Mutual fund

companies.

2. IBM, through IGS has taken a stand to be product

neutral. They have tied up with 200 partners - HP,

Dell & Sun, Oracle.

3. IGS is a part of the larger eco system and trusted

consultant.

4. Taking over of IT of AMEX and HDFC Bank, with

Service Level Agreements.

5. However it has a long way to go. Solutions

provider is a journey and not a destination.

Does having Great Products hinder solutionfocus?

The Price Factor1 Unlike products, Solutions pricing is not an

easy decision

1 Integration of Products and more2 Services are not standardized

2 Solutions Price is a Trade off between1 The Value offered to the customer2 Cost of doing so to the company

3 Pricing Mechanism1 One Time2 Periodic Payment3 Pay as Use4 Investment5 Licensing/Franchising6 Journey of Free to Paid Services

4 Products companies traditionally offerservices bundled free e.g. IBM for

Mainframe, CISCO

5 Later companies took different positions.1 Partial cost recovery.2 Full cost recovery.3 Independent profit centre.4 Independent SBU.


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6 To change the free mindset is difficult.1 E.g. Google, Just Dial.2 Scaled down Version is offered free,

Standard Version at Affordable price

and Enhanced one at a Premium.

3 Practice of sending a Fee Invoice Building Solution Selling Capabilities Change Mindset, Responsibility for

Customers Outcome

1 Typical Product's companys focus starts &ends with Products e.g. Apple & Microsoft.

2 Solutions Company takes responsibility tochange the customer's outcome.

3 Example of Paint company for Automakers4 Wardrobe study by Shoppers Stop5 Practice patience Map the Entire Process1 Saves the company the hassle of

communicating with multiple suppliers.

Single Point contact.

2 Example1 IT implementation2 Tour operators3 Logistic Companies

Access Customers Total CostAcquisition cost

i. Pre Purchase Evaluation

ii. Price Negotiation

iii. Time spent & Paper work

iv. Delivery follow up

Develop Knowledge Bank1. Necessarily of KM within an organization.

i. When People leave, they take knowledge with

them.

ii. A large part of knowledge is not captured at all

2. IBM has a Portal Expertise Locator.

Transforming the Organizationfor Selling Solutions IGS

1. Solution Selling requires Customers Knowledge as

well as understanding Companys Capabilities.

2. IBM : Sales people had to face different

Customers every day Retail, Oil & Gas, Pharma

3. Selling to multinational customers acrossgeographies

4. Power game of Regional, Product heads. Cut thro

rigid processes.

Transition Process1 Difficult phase since both models -

Hierarchies & Team Play have to be managed

simultaneously.

2 Rigid Systems & Pockets of Power as well VSTeam Work.

3 Top Management challengeInitiative

Coaching

Compensation plans

Resource allocation.

1 Gerstner created 14 Industry Heads andgave them the charge.

2 Internal Transfer Price, Incentives andResource allocation all aligned to meet the

objective.

Transformational Leadership1. Gerstner realized that cost of doing business was

high.

2. External point of view to IBMs myopic culture.

3. Got strong outside heads to fight internal culture.

4. He appreciated the IBM Brand Value.

5. And finally, aligned Structure to the Strategy.

Building a Business that Works The turn-key revolution The Turn-Key Revolution


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1. The Turn-key revolution, similar to theIndustrial , Technology & Information

Revolution has changed the society

2. Transformation from Chaos to Order,Excitement & continuous Growth

3. The ultimate balanced model for businessthat works

The Franchise Phenomenon1. In 1952, Ray Kroc, a Milkshake machine sales

man saw a miracle at MacDonalds stand.

2. Hamburgers were produced1. Quickly2. Identically &3. Inexpensively

3. High school kids under supervision ofmanages

4. It was not a Hamburger making but a Moneymaking machine

5. He convinced them to allow him to franchisetheir method and bought them over

Most Successful Small Business

1. In 40 years McDonalds has become $ 40Billion

2. 30,000 restaurants world wide, in 120countries, Serving 50 million people every

day

3. It is the largest Prepared food distributionsystem in the World

4. Represents 10 % of the gross restaurantrevenue of America

5. More profitable than almost any other retailbusiness in the world with 17% pre-tax profit

Franchise Business1. McDonalds has created a model, on which

entire generation of entrepreneurs have built

fortune

2. In 2000 there were 3,20,000 franchisebusiness, in 85 industries with 1 Trillion in

sales

3. Accounts for 50 % of every retail Dollars inUS

4. Largest employer of high school kids in US5. Only 20 % of Franchise failed in the first year

of their operation as against 80 % start ups.

Business Format Franchise1. Earlier format was Trade Name Franchises2. Success of the business runs on the success

of the product it sales e.g. Mercedes & Coca

Cola

3. The Brand is difficult to create and sustain4. Business format Franchises provides the

franchisees with entire system of doing

business

5. True product of business is the business itself6. At MacDonalds, Hamburger is not the

product, McDonald's is.

Selling the Business instead of the Product1. Ray Kroc had a Huge dream but little money2. He began to look at his company as a

product and the franchisee as a customer

3. The franchisee was not interested in aHamburger but in the Business - does it

work?

4. He was not competing with other Hamburgerbusiness, but every other Business

opportunity around the world

Creating a business that would work oncesold

1. No matter who bought it.2. Forced to create a full proof predictable

business

3. System dependent and not Peopledependent

4. A business that would run without the owner5. Ray Kroc went on to work on his business notin it6. Pre production Prototype of a mass product

able business


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7. Each unit worked exactly like the first onelike model T

8. Turn Key Revolution was now like IndustrialRevolution

The Franchise Prototype1. The Franchisor, Prototype becomes model of

the dream - Nursery for all creative thoughts.

2. Prototype acts as a buffer before puttingideas to the real world

3. French fries are left in the worming bin for 7minutes. Thickness of the Patty is not to be

compromised

4. Discipline, Standardization & Order are thewatch words

Turn- Key1. Each franchisee has to attend the Hamburger

University - not to learn how to make

Hamburgers but to run the system which

makes Hamburgers

2. The franchisee is licensed to use the systemand Turn the Keys. The business does the

rest

3. This works at the1. Disney World & Federal Express2. Subway Sandwiches, KFC & Dominos

Works for all 31. For the Entrepreneur, the Franchise

prototype brings its vision to reality

2.

To the Manager, it provides order, systemand predictability

3. To the Technician, it gives him clarity to workuninterrupted

4. For the Business person, it gives a balance forall his 3 personalities

Working On Your Business(Not In It)

1. Your Business is not Your Life. They aretwo different things

2. The primary aim of your business is to serveyour life and not the other way round

3. Assume, the business that you create willbecome a Prototype of 5000 more like it

4. 6 Rules that will make you to win 6 Rules for working on the Business1 Model provides consistent Value beyond the

wildest expectations of all the stake holders

2 Operated by people with lowest possibleskills

3 The Model will stand out as a place ofimplacable order

4 All work in the model will be documented inan operations manual

5 It will provide uniform service to theCustomers

6 The model will provide a uniform color, dressand facilities code

1. The Model will provide a Consistent Value

1. Value is what people perceive it to be,nothing less nothing more.

2. Does the Prototype provide value thatexceeds their wildest expectations for allstake holders?

3. Value is the word you speak to the customerwhen you lose a big order

4. Help, you offer the customer when he isstuck

5. Pat on back on new employee doing a goodjob

6. Simple Thank You to your Banker for hisconsideration

7. Infosys is great Example of a Value Provider

2. Operated by People with lowest Possible

level of Skills

1. If your model depends on highly skilledpeople, it is going to be impossible to

replicate

2. You do not need brilliant attorneys, but verybest system through which to leverage

results


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3. Provide results Systematically rather thanPersonally - System dependent rather than

Person dependent

4. System dependent not Expert dependent5. Great businesses are built not by

Extraordinary people but by Ordinary

people doing Extraordinary things

Lowest Possible Level of Skills6. People are important. They bring life to

System

7. Entrepreneur's job is to develop those toolsand teach the people how to use them

8. If the Entrepreneurs gets outstandingpeople, it makes his job easier. Management

by Abdication

9. Results then depend on their mood10.With ordinary people, you will have to find

ways to make it extraordinary

11.You will be forced to do the work of businessdevelopment

3. The Model will stand out as a place ofImplacable Order

1. The whole world is in a chaos War, Famine,Inflation, Crime, Violence, Corruption

2. People want life Structure, Point ofReference in this disorderly world

3. Structures provide the fixed points ofreference in this otherwise disorderly world

4. Softcell Inside Account Manager, LargeAccount Manager, Technical Team

OrderAlvin Toffler in his book Third Wave writes,

Most people surviving the world around

them, only see chaos. They suffer a sense of

personal powerlessness & pointlessness. Individuals

need life structures. The absence of structure breads

breakdowns. Structures provides the much needed

fixed points of references.

4. All the rules will be Documented1. This is how we do it here

2. Without documentation all routine workturns into exceptions

3. There is a logic to the work that every onehas to follow

4. Operations manual e.g. Call centers,Microsoft Service Centre

5. Operating manuals e.g. manual for Car,Mobile etc. 5. Offer Uniform Predictability Service to the

Customer

1. Hair Dresser who gave a delightfulexperience and took it away

2. Unlike the Burnt Child, customer has achoice

3. Consistency1. Maruti Service Centre2. Airtel Service3. Jet Airways

4. What you do with your model is not nearlyas important as doing what you do, in the

same way each and every time

6. Provide uniform Color and Shape1. Different consumer groups respond

differently by specific Color & Shape

2. Color Code needs to be scientificallydesigned e.g. Dress

3. Logo on your Invoices, Visiting cards, Letterheads, Vehicles, Advertisements

4. Facility Code Flooring, Sealing, Walls,Furniture e.g. Titan Shops, HDFC Bank, CCD.

Work on your Business rather then in IT ?1. How do we Provide Value to everyone?2. How can I get business to work without me?3. How can I Systematize my business so that

5000th

unit runs as smoothly as my 1st

one?

4. How can I own/develop my business and stillbe free of it?

5. How can I spend my time doing what I loveto do rather than what I have to do?


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Systems Run this Place A Cup of Coffee, A News Paper and An Alarm Get to know meeting The Bicycle Experience Check list for Room service

Room cleaning takes 15 minutes Flat A new employee can do it

The Dining Experience Coupons System No Tip

Use of technology to the maximum Swipe Card Sensors

Predictable Results for the Guests

Michael Dell an Entrepreneur At Early Stages1 There is a direct relationship between

making mistakes and learning

2 Lesson of Delegation3 Good people like to work with other good

people

4 Early stage recourse constraints1 Small Cubicle2 Every one chips in to answer phone3 Sales people support by putting chips

5 Culture of being special and can do attitude Advantage to Direct Model Other Companies1 Guess ,what you think the customers want2 Speculate popular configurations3 Had to maintain high level of inventory

4 Two separate sales forces5 Learn multiple products Direct Model1 Provide what customers really want2 Build to specific customers order3 No inventory, sparing space and blocking of

capital

4 Sales people focused5 Focused on customer needs Barriers to Direct model & Differentiators1 Trust a new brand ?

Ans: 30 days buy back warranty

1 QualityAns: Close relationship with suppliers and training

1 PerformanceAns: IBM Compatible PC (8 Mtz to 12 Mtz)

Participating in COMDEX

Direct from Dell Engaging the entire company from

Manufacturing to Engineering to Sales to

support staff in the process of

understanding customer requirements,

became the constant focus of management

energy, training and employee education.

We learned the importance of ignoringconventional wisdom and doing things our

way.

Our competition didnt consider us a threatfor a long time, providing us with even a

greater opportunity to surprise them with

our success.

Mistake No: 1 Too Much Inventory In 1989 Dell bought huge stock of 286K chips Caught Crossing the Signal ,Technologically They were suddenly stuck with too many

Chips which no one wanted


20/26

Value of material or information declinessuddenly Computers, Airline, Fashion to

Broadcasting

Huge Impact Had to sell stock at a loss Share price went down Future plans had to be shelved

Lessons from Inventory goof upImproving the speed of inventory flow is not only a

winning strategy, but a necessarily. It not only

combats the rapid decline of value of materials, but

requires less cash and less risk. We also made a

greater commitment to understanding and utilizing

forecasting.

2 : Ignoring Customers Feedback Dell planned to launch boil the ocean family

of products code named Olympic

It proved to have terrific products ahead ofwhat the customers wanted

Dell did not want to believe what they werehearing

Involve your customers early in thedevelopment process. They are your most

valuable focus group. Listen early and listen

well

Lesson : Technology for TechnologyCustomer

Dell learned the importance of gradualincremental impotents over big bang product

development

Reduced the risk Paced the investments Think like a mature company and not

a Start-Up

Embraced the philosophy ofBuy VS Make The engineers did not know, what customers

wanted

Dell encouraged engineers to get to knowwhat customers wanted & contributions to

business

Mistake 3: Going Direct In 1991-92 Dell was growing at a fast pace Corporate customers were narrowing their

choices. Also the development costs are

distributed widely

On a day-to-day basis you do not noticegrowth. Everything is going in slow motionwhile happening

Dell decided to go for the growth option &went Indirect through some of the large

Retail Chains

This was their third big mistake in a row Customers were dissatisfied, Dell dealt

directly

Learning the Hard Way It has been said that the strength, when used

to excess can become a weakness

In 1990, growth was the only thing Dell hadever known

Growth at certain point becomes yourgreatest venerability

The Correct Perspective Dell was $2 Billion with infrastructure of $50

Million

They had outgrown their phonesystem

Financial System Factory System Most important they had outgrown

people

If you build an infrastructure of $3 Billioncompany before reaching there, it will

eventually weigh you down so that you do

not reach there

You have got to have the confidence inyourself and the opportunity & you have got

to build the infrastructure as your grow

Finding the Footing Dell focused on growth ignoring everything

else.


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It was like driving a car looking at thespeedometer ignoring the fuel meter

First thing they did was to acknowledge theproblem instead of trying to explain it away

Dell need to focus on slow steady growthand liquidity, the profits will come

automatically

Instead of growth growth growth, newmantra was Liquidity, Profitability, Growth

in that order

Achieving balance Dell analyzed each and every segment and

came out with a P &L for each part of it

Each manager was set out for Cash & Profithunt

The managers responsibility wasperformance of their business. Clear cut

matrix was established

Sales could see margin while booking orderson phone

Compensation was linked with profits & cashflow

P&L for each unit as if independent business under promise & OVER DELIVER

Dell had to grow out of Start-up mentality in order

to figure out what to focus on. Instead of pushing

the accelerator towards greater growth, we had to

hit the breaks before we got too far ahead of

ourselves. We had to identify those opportunities

that made more of our strengths and go after only

the best ones, rather than trying to go after everyopportunity we saw. We had to pace our

investments to match our progress and hold

ourselves to a level of growth which would ensure

that we meet our commitments. This painful period

helped to reinforce the Dell philosophy of under

promise & over deliver.

Michael Dell Story Time Magazine named Michael Dell as a

Turnaround CEO of the year at the end of1993, a feast he says I will never will like

to have again in my life.

Someone once said that the differencebetween Dell & other companies is that

while all companies make mistakes Dell

never makes the same mistake twice.

Ground Rules for efficient Cash flowmanagement

1 Ensure that the Billing & Collection systemare monitored on a continuous basis

2 Billing to the customer is done Promptly3 Aggressive follow up on overdue payments4 Collecting advances from the customers5 Hold your payables as long as possible Focus on Collections1 Investigate new customers2 Supply only against formal purchase orders3 Get a PO Number for repeat orders4 Part Delivery, Part Payment option in the PO5 Do not link free Services with payment Collections6 Get repeated positive feedback from the

customer

7 Send invoice as soon as possible8 Contact before sending the Invoice9 Keep track of customers financial condition10 Statutory causes e.g. Sales tax, Octroi,

Delivery Charges

Strong Alliances with Suppliers

Define Your value Clearly

1 Pioneering companies had to createcomponents

2 Later on Specialized Components wereavailable

3 Contrarily to the traditional concept, Dell hadmore control

1 To Select the Best Supplier2 Divide the Risk over Multiple

Suppliers


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3 Dont get stuck with your OwnInvestments

4 This helped the company grow withoutlosing focus. Know when you can add Value

& when you cant

1 Complimentary Strengths for Success5 Find Partners with complimentary strengths& mutual drive for success6 Doesn't mean your job is done. Dont leave it

to chance.

1 Share your Goals & Qualityexpectations clearly

2 Explain them how the Direct modelhelps them

1 Customers shift from 17 to19 monitors

2 Lithium Power batteries - Sony7 In a way Dell has helped entire Industry to be

efficient

Keep your Relations Simple & Close By1 Dell had 140 suppliers of components and

growing

2 Todays rule is to keep it simple, have as lessPartners as possible. 140 to 20 suppliers

3 Follow the Sweet Spot Principle4 Complexity Kills, Proximity Pays5 Global Partners at 5 Centers Malaysia, China,

Texas, Brazil, Indonesia.

6 They asked their Local partners operateGlobally

Flip the Demand Supply Equation1 Traditionally shipments are made at

Warehouses where they were allowed to

ferment

2 Large shipments at quarter end, ChannelStuffing

3 Shipments every day to every hour, SteadySupply

4 Speed - Intel introduces new Chip, what ifyou are 1

st

5 Stop thinking how much inventor . Howquickly it moves

6 How Much to how Fast Never be Content on your Achievements1 Make information flow faster to reduce time

further - Inventory, Quality, Technology and

Requirements

2 Delivery of monitors directly by the logisticscompany by picking up 10,000 computers per

day & corresponding monitors

3 Wal-Mart, the Way to Go4 Feedback on Performance & Defects is

Instant & a Continuous process

Collaborate on R&D5 Investment in R&D has been a source of

pride in the IT Industry. $ 12 Billion is spent

on R&D

6 Dell is clear about when to invest and whento leverage & influence a partner

7 Criteria is general availability of technology.e.g. Development of Video Chip in 1990.

8 It is a decision about ROI as well as Focus

Strong Alliances with Suppliers Case Study of Dell Relationship1 Dell has strong alliances with

1 Customers2 Employees3 As well as its Suppliers

2 Strong Alliances helps in1 Speed of Delivery2 Deliver latest & best Technology3 Ensure highest Quality to its

Customers

3 Its all about Relationship and not abouttechnology


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Define Your value Clearly

1 Pioneering companies in the Industry had tocreate the components themselves

2 Later on Specialized Components wereavailable

3 Option to buy leveraging investments4 Contrarily to the traditional concept, Dell had

more control

1 To Select the Best Supplier2 Divide the Risk over Multiple

Suppliers

3 Dont get stuck with your OwnInvestments

5 This helped the company grow withoutlosing focus. Know when you can add Value

& when you cant.

1 Complimentary Strengths for Success6 Find Partners with complimentary strengths

& mutual drive for success

7 Doesn't mean your job is done. Dont leave itto chance.

1 Share your Goals & Qualityexpectations clearly

2 Explain them how the direct modelhelps them

1 Customers shift from 17 to19 monitors

2

Lithium Power batteries - Sony

8 In a way Dell has helped entire Industry to bemore efficient

Keep your Relations Simple & Close By1 Initially Dell had 140 suppliers of

components and growing

2 Todays rule is to keep it simple and have asless Partners as possible to 20 suppliers

3 Follow the Sweet Spot Principle4 Complexity Kills, Proximity Pays

5 Global Partners at 5 Centers Malaysia, China,Texas, Brazil, Indonesia.

6 They asked their Local partners operateGlobally

Replace the Bid Buy Process1 In most business models, Suppliers are cut

off from manufactures

2 In the Direct Model by Dell, it is about buyingto order

3 Advocate for the customer. To & froCommunication Inventory, Quality, Design,

Technology

4 Suppliers need to have Flexibility & SprintSpeed

1 Production Capacity2 How long for a new plant?3 How much of your Capacity are we

consuming?

4 How fast can you respond from 16to 18 monitor

5 Share 3 Year plan6 Clear Data Based Objectives

5 Dell - Our Toughest customers are our Bestcustomers

6 Suppliers Report Card Standards:1 Heights of Quality (Defects per

million)

2 Efficiency ( Delivery, Logistics, StockMovement)

3 Technology4 Embrace Internet5 Global Outlook6 360 % Evaluation

7 Helps the suppliers to improve their overallstandards

1 Flip the Demand Supply Equation8 Speed - Intel introduces new Chip, what if

you are 1st

to use


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9 Stop thinking how much inventor . Howquickly it moves

10 How Much to how Fast11 Shift from Supply Demand process to

Demand Supply

12 Traditionally shipments are made at theWare houses where they were allowed toferment

13 Large shipments at quarter end, ChannelStuffing

14 Shipments every day to every hour, SteadySupply

Never be Content on your Achievements1 Make information flow faster to reduce time

further - Inventory, Quality, Technology and

Requirements

2 Suppliers are close to the plant. Made toorder takes 4 days flat

3 Delivery of monitors directly by the logisticscompany by picking up 10,000 computers per

day & corresponding monitors

4 Wal-Mart, the Way to Go5 Feedback on Performance & Defects is

Instant & Continuous process

1 Office Environment2 College Tests3 Collaborate on R&D

6 Investment in R&D has been a source ofpride in the IT Industry. $ 12 Billion is spenton R&D

7 Dell is clear about when to invest and whento leverage & influence a partner

8 Criteria is general availability of technology.e.g. Development of Video Chip in 1990.

9 It is a decision about ROI as well as Focus Improve the Customers Working

Environment

1 Most of the R&D is on Software, to improveworking environment, not in the Lab or

factory

2 Diverse Customers have different languages,peripherals and needs customs set-up. Dell

convinced Microsoft to include software

code

3 Software Distribution Mirroring4 Dell Collaborated with Rank Mounting

Company to offer them the miniature

technology

5 The Design team shares the same designdatabase and collaborate in different time

zones

Dells Suppler Philosophy Communicate directly with your customer,

the decision maker. Talk directly with

suppliers. Dont treat them behind the scene.

Your competitive edge depends on howquickly your suppliers can provide you what

you sell to your customers.

Think real time when you communicate withsuppliers. A little too late is just too late in

todays businesses.

Your R&D must do real value add to thecustomer or it is wasted time and money.

RiverdaleOur Mission is to give you Out of the World Vision

The Cutting Edge Team

Rajesh Joshi : Expert in Second Home marketing

projects

Mahesh Kathri: Successful Builder and provider of

Seed Capital

Smita Desai: Will bring financial discipline & raise

funds

Share Holding Pattern

Rajesh : 60 %

Mahesh : 30 %

Smita : 10 %

Mission

To Establish Riverdale as a leading &

trustworthy weekend home company, providing


25/26

customers Exclusive Villas at Out of the World

locations with excellent Facilities

Objective of the Business Plan

Raise funds

Market the project

Understanding the business & issues

Executive Summery

Founding Team

Marketability of the Project

Key factor being the River Side Location

Project Concept

View on Finance

Risks involved

Present Status

The Company has been formed

Neral being the location of choice

Exclusive riverside 5 Acre Plot

45 Acres agriculture land available

Competition from few organized players & small

local players

Customers want to go out of the city buzz

Operations Plan

Acquire land from farmers

Getting a reliable strong contact

Financing

Complete the legal procedure

Construct Villas

Create Infrastructure & Facilities

Security & Maintenance

RESPONSIBILITES ARE FIXED

Market Demographics

Geographical Profile

Demographic Profile

Behavioral Profile

SWOT

Strengths

Relevant Experience

Location

Weaknesses

Finance

Unknown face

Opportunities

High growth & profits

Scope of expansion

Threats

Established Companies

New players

Recession

Competition

Few Trusted names

Small local players

Faciliites

Club House

Swimming Pool

Restaurant

Gym

Indoor Games

River Boating

Product Offerings & Pricing

Classic Villas:

2,500 SqFt, Plot area 5,000 Sqft

3 BHK, Fully furnished, AC, LCD, Swimming Pool

20 Classic Villas

Price: Rs. 75 Lacs, Free Club Membership


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Premium Villas

1,600 SqFt, Plot area 3,000 SqFt

2 BHK, Fully Furnished, AC, LCD, No Swimming Pool

50 Premium Villas

Price: Rs. 45 Lacs. Free Club Membership

NA Plots

No Construction

200 NA Plots

Rs. 10 Lacs

Advertising & Promotion

Weekend launch thro color ads in leading newspapers

Hoardings on Stations & Express High Way

Promoted thro company website

Facility for Site Visit

Call centre for follow up

Sales team on the site to close sale

Special discount of 10 % for early birds

Finance Plan

Initial amount of Rs. 15 Crores to give shape to the

project

Mahesh contributes Rs. 5 Crores seed capital

Balance Rs. 10 Crores raised by investors

Ongoing cash flow will be managed by sales of Villas

More details in the Excel

Financial Plan

Assumptions

Prices are averaged out

Cash Flow managed by ongoing sale

Cost of NA Plots is accounted for in total cost

Investors money to be returned appropriately

For Breakeven, expenses are fully accounted

enter nship

Documents