starting up: planning growth by

ENTREPRENEURSHIP

Starting-up

Pramod Kumar GothiNorthStar Advisors

www.ns-advisors.com

So YOU want to be an Entrepreneur?

Let’s do a self-assessment first…

NOW WHAT!

Who is an Entrepreneur

A person who

Starts a new venture and takes full responsibility

of the outcome

Has an effectual thinking

His key driving factor is the desire for

freedom and empowerment

Who Am I

Passionate

Committed & very hard working

Motivated - More notably Self-Motivated

Self-belief/ Emotional resilience

Skilled enough to assemble teams

Visionary

Inspires confidence

Risk taker

Patient and persistent

Fair

Rebellious

What is my knowledge base

Education

Training

Experience

Expertise

Whom do I know

What is your support system

Social and professional network

Reach out to as many people as possible

More importantly, leverage your network

Conduct Due Diligence on your IDEA

Is it do-able

Technological feasibility

Market potential

Marketing feasibility

Economical feasibility

Financial feasibility

Before writing business plan, answer the following:

Define your IDEA in few lines

Develop a description of the system, features

and processes that will allow you to discuss the

idea with others

To create a successful company you should be

able to define the business model

Manufacture product or provide service

B2B or B2C

Determine the Strategy

Your strategy will depend on

Goal as an entrepreneur

USP

Ability to manage the ecosystem

Sustainability

Business environment

Make an initial estimates of…

Investment in assets and working capital

Team

Product pricing and rough costs

Create a Business Plan

Initial projection that provides a frame

work for more formal business plan

Arrange Capital

The source could be

Personal savings

Your family and friends

Banks

Angel Investors

Investor’s Perspective

In evaluating a plan investor will look into a

value that is tangible, they won‟t be impressed

only with subjective statements

People are ready to put money in an upturn. In a

downturn people want the best bank for their

buck

Legal procedures – filing papers of incorporation,

partnership, etc.

Finding office or manufacturing space

Expectations for research and development

Product development

Getting all necessary licenses and permits

Purchase or lease of equipment

Hiring of personnel

Purchase of materials

Start date for marketing activities

Opening date for business

Schedule 3 times more

time for regulatory

related activities

Timeline should include…

Time to start a business – Top 10Number of calendar days needed to complete procedures to legally

operate a business at no additional cost to speed it up

Source: World Development Indicator

Time to start a business in IndiaIndia ranked 113th with 30 days to complete procedures


Rankings – Ease of doing business

Country Rank

Singapore 1

New Zealand 2

Hong Kong SAR, China 3

United States 4

United Kingdom 5

Denmark 6

Ireland 7

Canada 8

Australia 9

Norway 10

India 133

High ranking means that the regulatory environment is conducive to

business operation


Do’s

Do what you like and are passionate about

Get people smarter than you

Attract and retain the best talent

Be respectful

Be prepared to work very hard

Be prepared for the hardships

Always have provision for kitchen money

Remember that „Cash is King‟ – Be Frugal

Seek a mentor

Review regularly

Don’ts

Procrastinate

Ignore the competition

Be overconfident

Ignore importance of good planning and business

Ignore the power of a good team

Ignore customer service

Push away cash flow problem

Mix personal and professional issues

Be prepared-You will be CXO

Initially you will be CEO, COO, CFO, CMO,

CIO

All value added activities are to be controlled

by the owner

Work 24/7 hrs

May feel lonely but,

“ You have your freedom”

ALWAYS REMEMBER

You are among the 1% who have taken a

step to make a difference

SOMETIMES THE IDEA MAY FAIL

BUT YOU WILL NEVER FAIL

PICK ANOTHER ONE AND RUN!

Thank You