April india keynote 2011

http://1m1m.sramanamitra.com

To help a million entrepreneurs reach a million dollars in annual revenue and beyond

One Million by One Million

Case Study: IDS Software

$10M a yr semiconductor yield management software company

Entrepreneur owned 80% of the company

Total Available Market (TAM): $150 M

$150 M TAM => Too Small For VCs

Exit price: $30 MEntrepreneur made $24 M

Successful Entrepreneur?

99% of entrepreneurs looking for financing get rejected

Fact:

Yes, Even In Silicon Valley

99% Rejection Rate

Market Opportunity Too Small

Tyranny Of The TAM

Many more $5M, $10M, $20M, $50M, $150M opportunities than $500M or $1B ones

Worth building, especially if you own a large %

90% OWNER OF $5M COMPANY SOLD FOR $25M

Which entrepreneur makes more money?

5% OWNER OF $25M COMPANY SOLD FOR $100M

$22.5m $5m

Ownership Matters

Case Study: Facebook

$500k at $5M$12.7M at $98M

First two rounds:

How do you preserve that much ownership?

Bootstrap to Validation and Momentum

Early stages: Lean, Lean, Lean

Entrepreneurship = Financing

Misconception

Entrepreneurship = (Customers + Revenue + Profits)

Truth: Financing is optional

An old error is generally more popular than a new truth

Unfortunately

Please avoid Silicon Valley’s errors

Indian entrepreneurs

Focus on customers, not investors

Scarce resources

Do not spray and pray1M/1M mantra of lean startups:

Do not try to boil the ocean

Focus:

Case Study: PayCyclePositioning

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PayCycle: Outsourced Payroll Services (SaaS)

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ADP: Payroll Services for Enterprises

Competition:

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Paychex: Payroll Services for the Mid-market

Competition:

Where is the gap?Can’t compete head-on with large companies …

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Payroll SaaS for Very Small Businesses with < 20 employees

Underserved niche:

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Bottom-Up TAM Analysis

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22–25 m small businesses in the US;@ $500/yr, TAM = $11–12.5 b

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5.9 m businesses that employ peopleMajority mom & pops, no employees;TAM = $2.95 b

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5.2 m employers with < 20 employees; TAM = $2.6 b

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Without precise segmentation, TAM appears larger

Entrepreneur Journeys Series

For Inspiration, Role Models, Case Studies, Lessons

Entrepreneur Journeys SeriesOn Flipkart

EJ1: Inspiration & Overview

EJ2: Bootstrapping

EJ3: Positioning

EJ4: Innovation

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http://1m1m.sramanamitra.com

To help a million entrepreneurs reach a million dollars in annual revenue and beyond

One Million by One Million

Vision India 2020

My notebook of ideas45 billion dollar ideas for you to steal, morph, modify, and buildDetailed strategy nuances, market analysisA futuristic retrospectiveBusiness fiction

Sectors

1. Technology and Technology-enabled Services

2. Education3. Infrastructure4. Rural and Slum Development5. Healthcare6. Lifestyle Brands7. Entertainment

I am looking for entrepreneurs to execute on these ideas

A vision for where you can take India

Vision India 2020: Elective Module in 1M/1M