Look at this..
Article from Hindu... 20th March 2006.
Entrepreneurs in the making
Entrepreneurship development cells in colleges play a major role in
preparing students to take up business ventures. A look at how students
benefit by their programmes in some regions of the state EDCs focus on
`confidence-building' exercise among aspiring entrepreneurs
THE FIRST STEP: An industrialist providing tips to students at a
residential programme for prospective entrepreneurs at the Institute for
Entrepreneurship and Career Development, Bharathidasan University, Tiruchi.
Photo: M. Moorthy
Last week, we looked at the state of entrepreneurship development cells in
colleges of Coimbatore and Erode regions. It showed that the concept is
picking up fast in institutions there. The situation is changing for the
better among professional and arts/science colleges in a few other regions
too.
For example, 79 colleges out of 102 institutions affiliated to
Bharathidasan University, Tiruchi, have established Entrepreneurship
Development Cells (EDC) — a majority of them coming up only in the last
couple of years. The awareness programmes organised by colleges to expose
students to the nuances of viable projects, finance options and marketing
skills are gaining momentum. Still, it may take three to four years for the
self-employment concept to catch up fully and reflect tangibly in the form
of new start-ups, say EDC coordinators.
"Only the very small section of students inheriting the family tradition
has stepped into self-employment ventures so far. For the rest, risk-taking
is still anathema. But hope lies in students realising that the days of the
white-collar jobs (government employment) are over," says V.K. Boominathan,
Head, Department of Commerce, and a former EDC coordinator.
Self-employment
At St. Joseph's College, Tiruchi, the EDC invites successful self-employed
alumni to interact with students and motivate them, at periodic intervals.
Though students belonging to faculties of Commerce and Economics could
easily be drawn towards self-employment, in general, the economic potential
inherent in risk-taking and innovation is yet to dawn on the students,
notes I. Francis Gnanasekar, coordinator, Career Guidance and
Entrepreneurship Development Cell.
The Institute for Entrepreneurship and Career Development (IECD),
Bharathidasan University, and the Entrepreneurship Development Programme
(EDP) Cell of the Tiruchi District Tiny and Small Scale Industries
Association (TIDITSSIA) also helped the cause by organising programmes last
year.
The IECD has familiarised nearly 500 students of affiliated colleges with
various aspects of entrepreneurship. In all, 47 students from 28 colleges,
who submitted saleable projects, underwent a five-day residential programme
at IECD, said its Director, K. Parthasarathy.
Similarly, the EDP Cell of TIDITSSIA has conducted 14 awareness programmes
in 14 colleges in and around Tiruchi on the methodology of starting a small
scale industry. It has a bank of nearly 500 projects for prospective
entrepreneurs.
The Science and Technology Entrepreneurship Development Project, sanctioned
to TIDITSSIA recently by the Union Department of Science and Technology,
will help the cause, says C. Ramasamy Desai, coordinator, EDP Cell,
TIDITSSIA.
The emergence of Entrepreneurship Development Centres (EDCs) in colleges in
Salem and Namakkal districts has successfully integrated the much-needed
professionalism into their academic pursuits. The EDCs here focus mainly on
the `confidence-building' exercise among the aspiring entrepreneurs and
providing required details.
``We constantly remind the student that funding agencies even give up to 90
per cent of the project cost as aid, if they find an innovative project,''
says Director of Salem's Sona School of Management D. Dhanapal. The school
identifies students with an entrepreneurial spirit and gives them special
training.
The EDCs invite successful entrepreneurs and corporate and financial
consultants to interact where "the students learn the nuances of any trade.
They get motivated. They also come to know about opportunities available in
different sectors,'' says the principal of PGP College of Arts and Science,
Namakkal, S.S. Narayanaswami.
Still, many students worry about mobilising finance for their projects.
Nodal Officer of the EDC, Vysya College, Salem, N. Anbuarasu, says, ``It is
because they do not know about the schemes. Hence, we often invite
officials from the financial institutions to brief about their schemes.We
motivate them to discuss their projects personally with the officials.''
The placement cells of the colleges including Mahendra Engineering College
at Mallasamudram in Namakkal district organise workshops frequently in
which professional consultants and entrepreneurs take part.
The Centre for Entrepreneurship Development (CED) in Madurai, offers a
six-week training programme in entrepreneurship skills. According to R.
Jayaraman of the CED, the typical middle class mentality of getting a
secure job is now being replaced by the thought of going for business. "Our
experience shows that the attitude is changing," Dr. Jayaraman says.
Six components
Dr. Jayaraman says any entrepreneurship development programme has six
components — behaviour, business guidance, preparation of project report,
agencies supporting entrepreneurship movement, regulating loss in business
and overall management of business.
He says colleges and universities have also, of late, begun offering
certificate and advanced diploma courses in entrepreneurship. There are
many opportunities emerging in the service sector and students can make use
of the scope available. And, the first investment is the guts to take risks
and an ability to meet challenges.
The Madurai Kamaraj University has a Department of Entrepreneurship Studies
that offers a two-year Master of Studies Programme in IT and Management
(M.S. IT and M). The Head of Department in-charge, U. Surya Rao, says the
objective is to make the candidates prepare for self-employment.
Dr. Rao, who is also the head of Department of Management Studies, says if
students are trained in a combination of IT and entrepreneurship, results
would be enormous.
Contributed by
R. Krishnamurthy (Tiruchi),
S. Ramesh (Salem) and Shastry V. Mallady (Madurai)
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Interesting Stats (Mobile/InternetUsers/BroadBand)
Source:
http://emergic.org/collections/tech_talk_india_internet_and_mobile.html
TECH TALK: India Internet and Mobile: Issues and Numbers
The US-based VC firm, Kleiner Perkins, along with Ram Shriram, had
organised a panel discussion recently amongst 15-odd entrepreneurs in the
Indian Internet and mobile space to discuss three issues:
We would like to explore the salient challenges facing businesses
predominantly driven by Internet & Mobile.
What is required to service 300 million mainstream connected Indian
consumers with diverse usability requisites & language barriers?
What is the role venture capital can play in addressing these
challenges?
Because of the limited time, each person got an average of five minutes or
so to get their points across. I figured that the questions were
interesting enough to merit a longer and deeper discussion. This Tech Talk
series will provide my views to the three issues. More broadly, it will
focus on the challenges and opportunities in the Indian Internet and
mobile space.
Let us begin by putting together some numbers. I have put these together
from a variety of sources and some extrapolation. (I have also put the
financial figures in dollars that seems to have become the lingua franca
for money-related discussion in India! For easy conversion: $1 = Rs 45; $1
million = Rs 4.5 crore)
India Per Capita Income: $600 [Population: 1 billion]
PCs: 18 million; growing at 5 million/year
Internet users: 35 million; growth 50%/year
Cybercafes: 100,000; accounts for two-thirds of Internet access
Landlines: 45 million (declining slightly)
Broadband users: 1 million (most additions in 2005)
Broadband: $5 per month for 256 Kbps with 100 MB download
eCommerce: $250 million; growing at 100%
Online Advertising: $35 million; growing at 30%; 1.2% of total advertising
spend
Mobiles: 75 million; growing at 4.5 million/month; 77% pre-paid; 75% GSM;
25% CDMA
Mobile Voice calls: 3c/min (avg); SMS: 2c/message
In India, calling party pays for calls. There is no charge for receiving
SMSes.
GPRS-enabled phone: $80+
GPRS Tariff: $8+/month for 100 MB download (plans vary across operators)
Mobile VAS: $90 million; growing at 40%
Mobile ARPU: $8.50 [Split: Voice: 70%; Rentals: 20%; VAS: 10%]
Mobile VAS Split: Person-to-Person SMS, Caller Line Identification,
Roaming: 70%; Content: 30%
Content: Ringtones, Ringback Tones, Games, Wallpapers, Interactive Voice
Response, Person-to-App SMS
Content Providers get about 10-30% of revenue for their content
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Seeking Stellar Software Entrepreneurs
Seeking Stellar Software Entrepreneurs
Source:
http://onstartups.com/Home/tabid/3339/ctl/ArticleView/mid/4112/articleId/487/Seeking-Stellar-Software-Entrepreneurs.aspx
I’ve met my fair share (and then some) of software entrepreneurs – and
would-be entrepreneurs. In thinking back on those I’ve met that I would
consider “successful” (i.e. have built successful companies), I’ve found
there’s a pretty recurring set of “patterns” amongst the successful and not
so successful.
The items below are more about correlation than causality (i.e. manifesting
one or more attributes doesn’t necessarily cause you to become a great
software entrepreneur, but in my experience, those that manifest these
attributes, in my experience, have a strong correlation to long-term
success). Inversely (and very coincidentally), I’ve found that many people
that you would have thought would make great software entrepreneurs ended
up not doing so. In each of these cases, I’ve found that they were missing
over half of the attributes below in some significant way. One of the big
impacts of the dot-com bust was that it gave many mediocre entrepreneurs an
excuse for not having succeeded. This is the classic “I’m great, my
company was great and my idea was great – if only the market hadn’t
collapsed”. And yes, I’ll concede that many great entrepreneurs also got
taken down with the market, but I’m going to argue that many of the
software entrepreneurs that failed in the wake of the bust would likely
have failed anyways (in a “normal” market).
In any case, here are my signals of software entrepreneurs with a high
probability of success. Note: I have a bias towards “technical
founders” (i.e. software company founders with a technical
background). However, I’ve met some great entrepreneurs that weren’t
technical – but were able to join up with someone who was – and who would
have also met most of the criteria below.
Top Signals of Success for Software Entrepreneurs:
1. You like to experiment: You like to play with new software. You’re
one of the first people to try new software (like Google Desktop Search,
Yahoo! 360 and Microsoft Live)) within a week of its introduction. You end
up using < 1% of these applications over the long-term, but still love to
“play with new stuff”.
2. You like to read and learn: You tend to read a lot. A combination
of blogs, books, magazines, etc. You like to read on a variety of topics
(marketing, technology, sales, strategy, etc.).
3. You like to tinker and build: You tend to want to solve problems in
a better way than is out there. You customize, you build extensions, you
write scripts, you improve. You like to build things. You can start with
nothing more than a computer and a compiler and create something that
generally works.
4. You are opportunistic: You’re always looking for leverage and an
opportunity to create (and capture) value. You measure ideas by their
ability to create something meaningful. Though you may not be obsessed
with money, you’ve got a healthy recognition of the fact that money makes
the world go round (and helps you have the resources to do what you love).
5. You are an artist: You love having an audience (users). You’re
fanatically obsessed with delighting your audience (users) with software
that surprises them in positive ways. You like to continually improve.
You take pride in your work by investing in great design that will
withstand the test of time.
6. You Live On Email: You tend to prefer email as your preferred
communication vehicle. Though you see the merit and value of in-person
meetings (and in some cases phone calls), you would much rather have 90% of
your communications over email as you believe it makes you more
productive. Your average response time on “emails that matter” is measured
in hours, not days.
7. You are considerate, respectful and nice: You tend to respect other
people’s time, and show up on time for meetings. When you meet with
someone, you pay attention. You don’t abuse the fact that you may have the
upper hand in a given situation. You are considerate and empathetic and
generally have a high emotional quotient. You tend to genuinely want to
help people (even those from whom you are unlikely to receive anything in
return). You are kind to animals and children.
8. You have a proclivity for action: You are more likely to act than
analyze, plan and obsess. You tend to “jump in” and do it and deal with
consequences after the fact instead of figuring out precisely the right
path, right product, right market, etc. You’d much rather ship a product
that’s not perfect than try and spend another two weeks perfecting.
9. You attract others like yourself: You tend to have a great nose for
talent and your passion is infectious enough to attract them to your
cause. You like to hang around other people that are as smart (or smarter)
than you are. The thought of feeling threatened never even crosses your
mind.
10. You are a realist: You tend to look at most things objectively. You
see them for what they are. You have ambitions, but not unrealistic ones.
When in contentious situations, you’re usually the voice of reason. You
keep things in context and tend not to over-react.
11. You are exceptionally intelligent: Lets face it, software is a mind
sport. Software as a business even more so. I’ve never met a successful
software entrepreneur that I wouldn’t classify as being “well above
average” in terms of intelligence. I’m talking about raw intellectual
capability here (which may or may not have translated into great grades,
exemplary test scores, or other “standard” measures – those these certainly
don’t hurt).
12. You are fundamentally likable.: People want to help you. Customers
want to buy from you. Employees want to join you. Generally, people tend
to return your phone calls and emails and they tend not to avoid you at
parties.
13. You exhibit “balanced frugality”: You tend to have a reasonable and
rational approach to expenses in your business. But, its not frugality
applied evenly across everything. You’re not always looking for the lowest
price or best deal in all cases. In areas that matter (like the product!),
you tend to spend what is necessary (and what you can). You also tend to
let other people make money too (something about the karmic startup
cycle). You avoid the temptation to “do everything yourself” using
cost-savings as an excuse. You place value on your own time (even though
you may not be paying yourself out of the company yet).
14. You work hard: You’re an over-achiever. You’ve never been
satisfied delivering the “minimum”. Though you understand the importance
of work-life balance (you read about it in a book somewhere), you’re not
frequently able to pull it off. When in a group setting where work is
divided you somehow always do a disproportional amount of the work.
15. You just love the game: You’re grateful to have the opportunity to
do your own thing, create neat software products and serve customers. You
love the adventure and the thrill and are not hung-up on the rewards
(though some of those would be nice too).
That’s it. Once again, remember, these are just “patterns” I’ve observed
in many of the really successful software entrepreneurs I’ve
met. Obviously, simply responding to email within minutes or reading the
top 10 business bestsellers each year will not cause you to be a successful
software entrepreneur. But, if you manifest most of the above attributes,
you are generally more likely to succeed than not. You’re the kind of
person I like to invest in (and I’m sure other investors feel similarly).
Notice the stark absence of the idea, or the hockey-stick financial
plan. In my experience, simply having a great idea is not correlated with
success. That is, I’ve met many people with great ideas that haven’t built
great businesses and many people with not-so-great ideas that have done
really well.
So, I think the software industry is desperately seeking great
entrepreneurs. Are you one of these people?
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Entrepreneurial Proverbs
Entrepreneurial Proverbs (Embedded image moved to file: pic21793.gif)
Permalink
Source:
http://radar.oreilly.com/archives/2006/03/entrepreneurial_proverbs.html
By marc on March 08, 2006
I gave a talk at ETech on Monday called "Entrepreneuring for Geeks." I've
given this general talk a few times now -- how can the more technically
minded among us move into making companies of our own? I really enjoy the
talks because I really enjoy entrepreneurs; at least, I enjoy the ones who
are really excited about making something fantastic through their efforts.
"Do you want to sell sugar water for the rest of your life, or do you want
to change the world?" Right.
I started out this year's talk with a set of "proverbs" I've collected or
thought up over the years. I liked the format of a Go book I recently read,
called (not surprisingly!) "Proverbs," and decided to adopt it for the
talk. These are basically little nuggets of wisdom for bite-sized
nutrition. Enjoy.
Starting
It's good to be king -- being an entrepreneur is the best job I've
had. Every day your job is new and different; you constantly have to
push yourself in new directions. You no longer have to say, "Well,
I'm just an engineer, but..." -- you have a great excuse to take an
interest in everything. Working in an environment you shaped to your
own beliefs about how a company should be run is incredible (and
humbling!). And of course there are sometimes financial rewards,
although it's still a great job regardless.
Losing su*ks -- shutting down a company is unbelievably difficult. It
affects your home life, your health, your job prospects, your
financial stability. Professional investors are grown-ups, but it's
still extremely disheartening to lose the money people invested based
on belief in you. If your backers include friends or family, it's
extremely difficult to have to tell them the company is closing and
their money is gone. Most entrepreneurs fail several times before
succeeding, too, so losing is both terrible and nearly inevitable.
Fight as hard as you can against it.
Building to flip is building to flop -- this is taken from Jason
Fried, and he's right. People who start out with only one goal, to
sell to a big portal, will find their options are too limited. Plan
as many paths to success as possible for your company, and always
have a Plan B when acquisition (or whatever path you choose first)
doesn't work.
Prudence becomes procrastination -- it's great to research your
market and talk to potential buyers about your ideas. It's terrible
to let an excess of this become a impediment to getting started. Too
much prudence edges away from research and into procrastination.
Momentum builds on itself -- just start. Do whatever you can. Draw a
user interface. Write a spec. Make something, anything, that people
can see and touch and try. A prototype is worth ten thousand words.
One you start moving, you will find that people start to carry you
along.
Jump when you are more excited than afraid -- lack of fear is
irrational, and too much fear is debilitating. Make the jump into
your business when you have considered the fear, and come out more
excited than afraid.
The Idea
Pay attention to the idea that won't leave you alone -- this is taken
from Paul Hawken's Growing a Business. Sometimes an idea catches hold
of you and you find you can't put it down. Pay attention to that!
Just start working on it. Can't get yourself to do anything on it?
Move on. Find yourself waking up out of bed to write down new ideas
about it? That's a good one to choose.
If you keep your secrets from the market, the market will keep its
secrets from you -- entrepreneurs too often worry about keeping their
brilliant secrets locked away; we should all worry much more about
springing a surprise on a disinterested market (anyone remember the
Segway?). To quote Howard Aiken: "Don't worry about people stealing
an idea. If it's original, you will have to ram it down their
throats."
Immediate yes is immediate no -- does everyone immediately tell you
your idea is great? Run away from it. If the idea is that obvious,
the market will be filled with competitors, and you'll find yourself
scrambling. One good test: when the New York Times Magazine puts out
its annual "Year in Ideas" issue, is your idea in it? Then don't do
it. You're already too late.
Build what you know -- this is the most basic advice of idea
generation: scratch an itch you have yourself. To make a great
company, stop and ensure that your need is broadly felt, and that
your solution is broadly applicable -- not everyone spends their life
in front of a computer, remember.
Give people what they need, not what they say they need -- interviews
are tricky. People will swear up and down that they would buy a
product you describe if only it were available, and then fail to do
so as soon as it is. Likewise, in conversation an idea can sound
terrible, but in actualization the idea can become a compelling
product. You have to sherlock out the truth of the interest people
express, and "yes/no" questions are usually less useful than "how
much" or "how bad" questions.
Your ideas will get better the more you know about business --
engineers hate to hear this, but you can generalize up quite far from
here: the more you know about everything, the better all of your
ideas will get! If you want to start a business and your strength is
in development, learning about pricing, sales, marketing, finance,
and yes, even HR, all of it will make your product ideas stronger and
better.
People
Three is fine; two, divine -- having too many co-founders makes
decisions hard to reach; if you're on your own, you have to bear all
of the stress and worry about the success of the company. In my
judgment, three people can do well together, but having two founders
is best.
Work only with people you like and believe in -- I once heard Eric
Schmidt say something along the lines of, "The older I get, the more
I think all that matters is working with people you like." If you're
smart and talented, you're probably going to like a lot of smart and
talented people. Working with people you like is so much more fun,
and often more productive, than fighting against someone who may be
smart and talented but just isn't a great fit for you.
Work with people who like and believe in you, just naturally -- maybe
you are very persuasive, and can talk people into working with you
against their better instincts. Especially for co-founders and early
employees, don't try that hard. Find the people that naturally want
to work with you, and nudge them into the roles where you need them.
You'll have more fun and get more done.
Great things are made by people who share a passion, not by those who
have been talked into one -- a corollary of the last; you can spark a
passion in someone, but you can't do it without some fuel to catch.
Better to wait, and find the person who is already inclined to
believe in your cause. You may talk someone into co-founding a
company with you, but will they stick with it through ups and downs
if they had to be persuaded that hard?
Product
Cool ideas are useless without great needs -- this is the classic
engineers' entrepreneurial mistake (or at least I'd like to think so,
since I've made it). Techies love tech, and a new technology can
produce a lot of companies that don't really meet a need. Better to
start with the need, and then see how what you know can produce a
better answer to that need. (Marketers tend to have the opposite
problem: real, pressing needs with completely unworkable solutions.)
Build the simplest thing possible -- engineers have the hardest time
with this, with not overdesigning for the need they're addressing.
Make the simplest possible product that makes a significant dent in
that need, and you'll do far better than you would addressing two or
three needs at once. Simplicity leads to clarity in everything you
do.
Solve problems, not potential problems -- you can waste a lot of
money implementing solutions for problems you don't have yet, and may
never have. Work on the biggest, most pressing problems today, and
put aside everything else.
Test everything with real people -- it's unbelievable how helpful
this is. Go find civilians, real people who use computers because
they have to and not because they love to. Find them in Starbucks, or
at the library, or in a college computer lab. Give them $20 for 20
minutes, and you'll be paid back a hundred times over.
Money
Start with nothing, and have nothing for as long as possible -- small
budgets give big focus (probably another line I'm stealing from Jason
Fried: it sounds like something he'd say...) Don't go out and raise a
ton of money right away. Instead, give yourself just enough to get
going, and use the limits that imposes to motivate yourself.
The best investor pitches are plainspoken and entertaining (not in
that order) -- think about what this implies. A plainspoken pitch is
the surface of a very solid business. If you have to fudge and lie to
get investors interested, why is that? If you're running a great
business, it is not hard at all to lure investors into it; the worse
your business, the bigger (and more odious) your fundraising task is.
Entertaining implies a fun person to work with, and VCs like working
with people they like as much as the rest of us do. If you don't
bring the funny, bring the person who brings the funny.
Never let on that you're keeping a secret -- telling an investor "I
don't want to talk about that" is terrible. It's the natural converse
of being plainspoken. It's good to be aware, though, that some
potential investors will listen to you and then share your
information with your direct comptitors, and not always because
they're invested in those comptetitors. Knowing that, you have to
keep some secrets -- but be as diplomatic about that as possible.
Respond to the idea behind the question, without giving away more
than you feel comfortable discussing. Learn to steer the conversation
in the way you want it to go. And then give up more information as
you become more comfortable with the potential investor.
No means maybe and yes means maybe -- you should never take a "no"
from someone you want to work with. Accept the no, ask for feedback,
and then just keep sending them updates on how much butt you're
kicking in the market. During one company, three of the five term
sheets I collected came from VC firms that told me "no" originally.
Conversely, though, the only money in the bank is actual money
actually in the bank. Everything else is just a possibility, and you
have to treat it as such. Don't stop fundraising until you have a
firm commitment for the funding you need, and don't accept halfway
promises like, "We'll fund you if another firm comes in." Keep on
driving until the wire transfer is complete.
For investors, the product is nothing -- the classic engineer's VC
pitch has ten slides about the product and two about the academic
achievements of the founders. That's a terrible pitch. One slide
should be about the product, while the rest cover the market,
competitors, financials, funding history, and the relevant experience
of the team. The product matters far less to most investors than the
reactions of customers, the properties of the market, and the
credibility of the team. Obsess about the product on your own time;
present your business in all of its parts.
The best way to get investment is not to need it* -- if you have a
running business with real customers and you're paying all your
bills, you are much more likely to get a funding round than if you
need the round in order to survive or succeed. The pitch that goes,
"We could accelerate our growth with more money" is much more
compelling than, "I need your money or our doors will close."
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