April india keynote 2011

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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

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Sramana Mitra's speaking tour in India April 2011 - keynote.

Transcript of April india keynote 2011

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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

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Case Study: IDS Software

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$10M a yr semiconductor yield management software company

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Entrepreneur owned 80% of the company

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Total Available Market (TAM): $150 M

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$150 M TAM => Too Small For VCs

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Exit price: $30 MEntrepreneur made $24 M

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Successful Entrepreneur?

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99% of entrepreneurs looking for financing get rejected

Fact:

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Yes, Even In Silicon Valley

99% Rejection Rate

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Market Opportunity Too Small

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Tyranny Of The TAM

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

Worth building, especially if you own a large %

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

Which entrepreneur makes more money?

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

$22.5m $5m

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Ownership Matters

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Case Study: Facebook

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

First two rounds:

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How do you preserve that much ownership?

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Bootstrap to Validation and Momentum

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Early stages: Lean, Lean, Lean

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Entrepreneurship = Financing

Misconception

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Entrepreneurship = (Customers + Revenue + Profits)

Truth: Financing is optional

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An old error is generally more popular than a new truth

Unfortunately

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Please avoid Silicon Valley’s errors

Indian entrepreneurs

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Focus on customers, not investors

Scarce resources

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

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Do not try to boil the ocean

Focus:

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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:

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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

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Entrepreneur Journeys Series

For Inspiration, Role Models, Case Studies, Lessons

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Entrepreneur Journeys SeriesOn Flipkart

EJ1: Inspiration & Overview

EJ2: Bootstrapping

EJ3: Positioning

EJ4: Innovation

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Free, 1M/1M Strategy Roundtables

Every Thursday, Online

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Join 1M/1M Premium for Extensive Methodology Guidance, Curriculum, Business Development, and Strategy Consulting

For $1000 annual membership fee

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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

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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

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Sectors

1. Technology and Technology-enabled Services

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

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I am looking for entrepreneurs to execute on these ideas

A vision for where you can take India

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