Contents Is your Start-up killer or should it be killed
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A Journey From Litigation to Expansion
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Cover Story : Poster Boy of Indian E-Commerce
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A Start at Start-up Saturday
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Big Data: The Now Big Thing
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Let’s Get “SMARTER” 14
LOGISTICS: Not only a Support System
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FROM THE EDITOR Dear Readers, It has been a while since our last edition but the product has been worth the wait. The magazine in your hands is a result of considerable efforts and time invested by the authors. As you being our regular reader know that we here at L’Entrepreneur magazine are constantly experimenting and trying newer additions to make the magazine a valuable read for you. The turnaround journey so far has been interesting with some changes working to our favour while some didn’t, which have helped us take wiser decisions in the latest edition. As with the last edition we here at Maçon are proud to present, yet another edition completely crafted by our junior Maçonites. I congratulate all the team members and contributors for their efforts and the time that they invested towards the success of yet another edition. I hope the readers find this edition a better read and encourage us to write more. This magazine edition contains a rich variety of articles from the world of Entrepreneurship. The range extends from personality of the month to the realms of technology. This edition presents the story of Sachin Bansal, one of the flipkart founders as the personality of the month. The story of his entrepreneurial journey would surely inspire readers to act. On the other side we have mapped the entrepreneurial journey of Sajid Dhanani founder of Sayaji Hotels & Barbecue Nation. Further we have an article presenting some practical techniques on how to be a Smart Entrepreneur. The next article throws light and clarifies our understanding of ‘Big Data’ freeing us from the ambiguity we carry about the topic. The last article focuses on points to be considered while making some critical decisions at the initial stages of a start-up, so that we not only know what to do but are also wiser about what not to do. Hope you too will enjoy reading the magazine the way we did. But, please don’t hesitate to send us your valuable feedback and grab the opportunity to be a part of the transformational change to make the magazine better. Happy Reading !!! Regards, Anup Yeolekar Chief Editor, L’Entrepreneur
Editorial Team Anup Yeolekar Nikita Kiran Karthik Jairam Priyanka Malik Budhaditya Mukherjee Omkar Tawade Gomathi Priyanka Brinjrajka Crystal D’Souza
Creative Team Rishab Nigam Arunbalakrishnan Rahul Bongoni Subin Domini Manikanta Gundipati
L’ENTREPRENEUR - IBS, Hyd 3
IS YOUR START-UP KILLER OR SHOULD IT BE KILLED? T he
solution to an unsolved problem or unmet need results into a start-up. We are inundated with problems that need a solution, it’s just that no one has figured out a viable solution. If you are indeed interested in pursuing “the dream” of not working a 9 to 5, you need to pay a lot of attention to the habitat you live in. If you think that generating an idea for a start-up is difficult, you could not be more wrong. Anybody that has ever even attempted a new venture knows that executing it is far more challenging. The crux of a start-up is the idea itself. So let’s start there.
Keep your eyes open!! WIDE OPEN!! We confront many issues on a daily basis, typically personal. The dire need of a solution leads to wonderful ideas that earn millions. The invention of the yellow ‘Post-it’ was a complete fluke. A pissed off 3M employee, frustrated with his bookmark that kept fall4 • L’ENTREPRENEUR - IBS, Hyd
ing off his choir book, applied some glue onto his bookmark to keep it in place. And Eureka! The idea ended up making more than $1 billion by 2012. Every time you find yourself thinking, “I hate it when that happens” make a concerted effort to analyse the problem and develop solutions. Everyone has million dollar ideas but rarely do they act on them.
function can be embedded into the site. Further, using AdSense and Ad-Words to promote the idea will not only increase popularity but also pay off your bills at a bistro for a couple of beers. Facebook has also become a powerful tool for marketing. You can always provide links to your page through statuses or direct messages. If you get stuck or can’t figure out something, you can always use a search engine like Google, Yahoo, Bing or Youtube and go through tons of “how to..?” videos.
If we knew what we were doing, we wouldn’t call it If you have to ask how much research, would we? does it cost, you can’t afford You could end up spending a lot of time it working on your new idea only to realize that it already exists. Time is money, right? So why waste it? Spending even half an hour would make a world of difference. Doing a quick search on google.com/patents can help you know if your idea has been already patented. If it doesn’t appear immediately, you are in luck! But you will still need an Intellectual property attorney to do a patentability search later when you are ready to invest into your venture.
Necessity is the mother of all invention! You, your family and the people around you may think that your new idea is awesome, right? Well, others may disagree. You must determine the true potential of your million dollar idea. The need for your product or service must be weighed against the emotional strings attached to the success of your idea. It is good sense to put your idea to the test before exorbitant spending. Develop a name for your product and register a domain and a landing page. You could include some basic ideas with or without imagery in WordPress or Geosites. Now, to monitor interest a simple analytic
Often we find ourselves in a situation where the idea that we are working on turns out to be too expensive. You might have a really great idea for a product or a service that you think you can sell for say 500 rupees before you work out the costs to be 450 rupees to make it. In such a case, you do not have a viable business model. In case you want to sell your product through a standard distribution channel, you would want to sell it for at least six to nine times the cost incurred to make the product. When selling a product can itself be a tricky business, selling a service could be far more problematic. You need to consider every bit of expense you put into formulating your product or service. Cost per unit must be inclusive of the most trivial things like bubble-wrap packaging to substantial things like the manufacturing setup. If you want your idea to evolve from your last weekend’s cocktail napkin to a potential business, you might want to consider the aforementioned points. There is no reason you should be spending all the money you have been saving up all your life without knowing its full feasibility.
KARTHIK JAIRAM
L’ENTREPRENEUR - IBS, Hyd 5
A JOURNEY FROM LITIGATION TO EXPANSION “Men go to far greater lengths to avoid what they fear than to obtain what they desire.” - DAN BROWN
F ear is an intense emotion which majorly
governs our lives. Fear of failure; fear of losing our priceless possessions and moreover fear of losing important people from our lives, just a mere thought of the same is capable of giving goose-bumps. But, it’s also the same emotion which acts as a driving force to go through the Herculean tasks. Probably, this fear would have been a major reason wherein Sajid Dhanani, the owner of a renowned hotel chain Sayaji Hotels, was denied the complete family support while starting the venture. Back then when he was 22, he decided to part his ways from the established family business of fertilizers, and pursues his dream of getting into hospitality. His father bought him his first hotel in Vadodra in 1988 and he was
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left on his own even when the property got stuck in litigation for 2 years. Service differentiation occurred when the hotel was popularized as in-house dining destination unlike the other hotels which offered the dining facility only for the residing guests barring outsiders. Further, a major step taken in the history of this chain was when the company went public and raised Rs 2.15 Cr for setting up a hotel in Indore. The central location, epicurean crowd and innovation in providing centralized server for internet connection and movie playback when internet was considered as novelty forced even Taj to withdraw from Indore market. The major source of revenue was marriage packages.
The Pune property is further unique in its own way. It claims not only to be the first in the world to provide touch screen variant wherein all the workings in a room are controlled through an ipod but also, the first one to offer personalized services at a new level all together. It tends to provide a personal butler and chef services for every room. The hospitality and comfort provided are at such a level that the guests are sure to cherish the experience for a long time. While the company was doing reasonably well in different regions, it received a major set-back when the Gandhidham property was in shambles after the earthquake in Bhuj in 2001. Mr. Dhanani’s dream of becoming a national player in the hospitality industry came to reality soon. At Indore property, there were constant complaints from the pool side guests, about the kebabs getting cold while serving, specifically during the winters. That’s when the idea of live grill was born. The kebabsville restaurant incorporated this concept and 90% of the kebabs being served were cooked on the live minigrills at the table itself. Further a large variety included in the buffet acted as a cherry on the top. Kebabsville acted as a prototype for the
further expansion of the hotel chain wherein the live grill concept was taken to all the metros through the name Barbeque Nation. The authorities were apprehensive of the fact that a little known brand might not be able to do that great in other cities. Barbeque Nation has not only done justification to the very concept of live grill but also to its parent company Sayaji. A perfect blend of cuisines from different parts of the world, soothing ambience, limitless varieties and no tip policy makes it a perfect value for money and fine-dine experience. It has 5 outlets in Mumbai as of now and 36 outlets as of August 2013. Starting with a property stuck in litigation to expanding the chain to become a national player is a classic example of getting over your apprehensions and being guided by a ray of hope. Mr. Sajid Dhanani was able to establish Sayaji, what would you do, if you were not clutched by your fears???
PRIYANKA MALIK L’ENTREPRENEUR - IBS, Hyd 7
COVER STORY
POSTER BOY OF INDIAN E-COMMERCE Born on 5th august 1981 is a software engi-
neer and an internet entrepreneur by profession. Born in Chandigarh, he went onto do his schooling from St Anne’s convent and later completed his graduation from the prestigious IIT Delhi.
The Journey Begins The story revolves around two young men who wanted to make it large/big, wanted to create something of their own, they being Sachin and Binny Bansal. ‘Although we carry a common surname nothing between us is common except for our destiny. From early days we shared a common school then went on to the same college landed up together in Bangalore and eventually ended up working for the same company’ says Sachin laughing. An idea made the difference! While working in Bangalore with amazon they felt a constant feeling of incompleteness and a
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stagnating job which prevented their freedom in all the aspects. They left their job at amazon in 2007.It was their decision to start up with something on the very footing of amazon, but for a smaller segment and smaller business model. It was only a matter of time they left their job to start off with something new and Flipkart was born! They started with selling books online. Both the Bansals contributed an initial seed of 2 lakhs each, rented a flat and started working on their dream project. Initial days were the toughest, where on an average only 5 books could be sold. Their existence had become a struggle where they could only manage thanks to their family funding, where they managed everything in mere 10,000 a month in a cosmopolitan outing, recalls Sachin. The main intention of starting up with such a business plan was because the industry in the initial days was not being served properly and had many loopholes in the way other companies operated. They were quick in identifying
Don’t start out alone, it helps to have a co-founder when things are not going your way. Perseverance and hard work is very important. The core of any business is to earn money. You have not done your job well until you find a stranger who is willing to open his/her wallet to give you money for the services/products that you a offering. The next step after that is to focus on scaling it up well – Sachin Bansal
the opportunity and grabbed onto the first mover advantage and held onto it. They also successfully used word of mouth marketing and social media to get word out.
”Don’t count your customers before they smile’ is the company’s operating mantra, and it’s a mantra they’re applying successfully alright!”. “A simple desire to create a tailormade product for the Indian consumer has grown into something beyond what we imagined“ ,says a thrilled Bansal
Taking A CLUE GLOBAL SUCCESS
FROM
Sachin Bansal is good with the numbers. He had seen this revolution coming to India with the increased penetration of the internet across towns and developing cities. The Government’s National Broadband Plan, pegged at $4.5 billion, proposes to connect nearly 160 million additional Internet users by 2014. India’s retail market is estimated at $470 billion in 2011 and is expected to grow to $675 Billion by 2016 .and $850 Billion by 2020, – estimated CAGR of 7%.There was an even-
tual trend of the online shopping spree across other foreign countries with sales touching upto $169.6 and $63.9 billion in countries like China and Japan respectively. India has an internet user base of about 250.2 million as of June 2014 says forester research,a leading global research and advisory firm. The spread, and subsequent adoption of e-commerce, thus, only seems logical. With several reputed brick-and-mortar retailers also offering online services, it seems natural this trend of shopping, will scale up substantially. “The value proposition in either formats of retailing, physical and online, is different. It’s the experience of touch-and-feel that makes physical shopping exciting. In the online context, convenience and comfort takes over. There’s ample scope for both to grow,” Sachin avers. Like a true entrepreneur, he belives innovation to be the key to his company’s success. Extending services like cash-on-delivery and credit card payment at doorstep were introduced to provide ample choice, comfort and reliability to customers.
L’ENTREPRENEUR - IBS, Hyd 9
Taking on the Mighty Amazon Flipkart
always had the first mover advantage, starting way ahead in the year 2007, Flipkart came out as the lone poster boy of the Indian e-commerce industry with brand recollection at its highest. Soon was the weary wolf following the prey to hunt it down, Amazon entered the Indian e-commerce market in the year 2013 and gained lost momentum by generating revenues which were half of Flipkart. Sachin Bansal,surely a man of mettle put everything on stake. He went on to acquire the fashion online store of Myntra by engaging into a whopping $370 million deal to regain the lost ground and to give amazon a run for its money. Remember Amazon has been a destroyer, it has come out as the ultimate champion where it has laid its foot. Not to forget countries round the globe like Austria, Usa, Brazil, UK etc. to name a few. Challenging Flipkart at every step, bringing in loads of experience and investments from its past Amazon is raising the bench mark constantly.Employing economies of scale it is able to reduce prices to drastic levels which Flipkart has to match even if it means losing out on the profit factor.
in September. Dragoneer Investment Group, Morgan Stanley wealth management Sofina and Vulcan inc with participation from existing investor Tiger Global were some of the funding sources. Flipkart has raised its investment by receiving funding of about $540 million so far. Sachin Bansal made his intentions clear by throwing out a grand sale by the name,”The Big billion day” Which attracted many online shopaholics and managed a turnover of about Rs650 cr in a day. Inspite of this there was havoc, disproportionate sale and the consumers were not satisfied with the overall experience of the big day.Sachin Bansal had to come out with an apology letter to many of the customers. He believed and promised for a better tomorrow, he made the attempt to set things right. He pulled out all the barriers and stretched pass his limits. Competing a Grand Multinational of a multitude such as that of amazon requires character,Sachin Bansal showed the very trait of an effective leader, giving us the glimpse of the epic Jach Snyder movie 300,with a paltry 1:13 workforce and 1:74 revenue turnover ratio. Sachin Bansal is taking on the odds and marching on for glory!!
BANSALS V/S BEZOS Sachin bansal did not stop here, raising $200 million in this July and another $160 million
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OMKAR TAWADE
A START AT START-UP SATURDAY! It was never the less a fairy tale, few steps of climbing the hill and there it is, the white building
with small wooden stairs that takes you to the underground. A backyard that was completely shadowed by trees, the now and then falling leaves welcomes your presence. We were not on time alike every other Macon meeting :P I happen to see people getting immersed in business ideas which was made successful years or months back. Curve of semicircle and pleasure of I have won was eventually noticed on everyone’s face who ever went on the stage.. • Color D earth – a jewelry made of clay, the founder was a HR yet the marketing strategies which she has used, have made me to grant her a faculty post in my own non existing college. • “Being from the background of popular family owned business, is like entering the ground after sachin had hit a century” said a tiny girl. That is how the women who spoke after the tiny girl addressed her. • Just food in a capsule – a nutritionist entrepreneur explained her product category and how she paved a way for herself through the hospitals she works, optimum utilization of resources is what I would say. • An IIT alumni showcased her Bplan of retaining the customers in small retail outlets by giving gift coupons with codes which the customer has to upload in their site to get % of discount they are availed for the next visit, in turn it triggers the online ad about the small retail outlet. • Bharatiya yuva shakti trust (somebody gave me this piece of paper) Their support services: - Financial assistance from nationalized banks without collateral and without guarantee up to 50 lakhs - Mentoring support - Marketing and network support - Exhibitions Eligibility criteria: - Age bet 18 to 35 - Business sector – manufacturing or service - Area limit - Hyderabad and secunderabad - Existing / new enterprises Contact details: Bharatiya yuva shakti trust c/o confederation of Indian industry. Plot no 07, regal house, motilal Nehru nagar, begumpet, Hyderabad-16 byst.hyd@cii.in www.bystonline.org 040-27765774/27765889, 9618453891 The day out at startup saturday was an unexposed experience, to realize that you are not yet born and they are all growing.
GOMATHI
L’ENTREPRENEUR - IBS, Hyd 11
BIG DATA: THE NOW BIG THING A staggering 2.9 billion by a billion bytes of
data are created every day, enough to fill 5.8 billion average-sized PC hard drives. Every aspect of calculation requires data and more the data, more the accuracy. Big Data is the buzzword used to describe this exponential growth of data. This available Data could be structured or unstructured and has become extremely important to any type of business. The hope is that organizations can use this data, harness and analyze it to find solutions such as cost reduction, time reduction, new product development and smarter decision making. In 2001 Doug Laney gave the three big V’s to describe Big Data and is now being used in its mainstream definition. The first and most prominent attribute is volume. Many factors have contributed to the growth of data volume namely Transaction based data collected by the countless busi-
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nesses over time, unstructured data from social media, sensor or machine to machine data collected over years. The next big V is Velocity meaning the data streaming in at unprecedented speed and this data should be dealt with in a timely manner. Sensors fitted, RFID tags and smart metering are driving the need to deal with mountains of data in nearreal time. The last and final V is Variety. Data is processed today in all types of formats. Structured numeric data created from traditional methods or information made from line-of-business applications. Unstructured data created from emails, random documents, video, tweets from Twitter, audio, YouTube posts and financial transactions. Recent technological advancement has enabled the processing of big data and big data analytics. Cheap and abundant storage has helped in the accumulation of this data ,faster processors , open source Big Data platforms
(e.g. Hadoop) , parallel processing , larger grid environments, high connectivity , Cloud computing are few of the technologies that have played a hand in the development of such data. The challenges faced in Big data is that the data is so large that is becomes difficult to determine what pieces are relevant and which are just outliers. Another challenge is the storage of such kind of this data. Do you store all the data or what data do you analyze and from how do you use this outcome to your best advantage?
PIG is another software that brings Hadoop closer to the realities of developers and business users. The cloud is closely related to most of the technologies used for Big Data computing. Most cloud vendors already offer Hadoop inbuilt so that startups can scale up to the level they want to, when demand requires. Big Data and cloud computing are two sides of the same coin and if one grows, so does the other.
Marketwatch conducted a survey to forecast the future of BigData in today’s market, more precisely 2014-20. Their key findings showed that Big Data vendors will pocket nearly 30 billion from hardware, software and professional Take UPS (United Parcel Service) for example. services revenue. Investments in Big data are UPS began to track its packages and transac- to grow at a CAGR of nearly 17% over 6 years, tions as early as 1980s. It now tracks data on drawing up to 70 billion by 2020. Nearly every 16.3 million packages per day for 8.8 mil- IT company will have a Big Data Portfolio, the lion customers, with an average of 40 million future marks for a large number of Big Data tracking requests from customers who placed startups. Software vendors in the Big Data orders per day. It used telematics sensors in Analytics sector are expected to significantly more than 46000 vehicles. With all this data increase their stake in the Big Data market as collected it managed to save more than 8.4 it matures. million gallons of fuel in 2011 by cutting 85 million miles of daily routes. With Big Data This just shows the scope and growth that is it determined that saving one daily mile per present in Big Data and the opportunities it driver saved the company 30 million. provides in budding businesses. Big Data is being intensive researched as it shows great There are a number of technologies to handle potential for our time and has turned into a Big Data. The traditional method of Column multibillion dollar industry. Big Data is the oriented databases is great for online transac- Now Big Thing Happening. tion processing but fails in query performance as data volumes grow and data gets more unstructured. MapReduce is the skeleton so far for the best software’s developed to handle Big Data. It is a programming paradigm that allows for massive job execution scalability against thousands of servers or clusters of servers. Hadoop is the most widely used platform used to analyze Big Data. This is mainly due to the fact that it is open source. It is an implementation of MapReduce and is flexible enough to be able to work with multiple data sources.
CRYSTAL D’SOUZA L’ENTREPRENEUR - IBS, Hyd 13
Let’s get “SMARTER” The very word smart includes “art”. There is
always a way to do tasks. We as entrepreneurs really need to know to work smart than to work hard. Gone are those days where people used to quote that “Only hard work is the key to success”. If that was true then there are tons of people in the market who work very strive to achieve their goals, but in the real time, it’s the smart work which takes away the prize. As Bill Gates Says that “I choose a lazy person to do a hard job. Because a lazy person will find an easy way to do it. ”. Obviously! Why would a lazy guy even work hard? Hence proved. So now that we know that smart working counts … we need to kno w how we are going to start working smart. • S tay calm:- if it was only us to take up all the stress and tension it will only affect our health and there is no point of doing any task cause there will be no efficiency, accuracy & interest in the work done due to ill health • M aterialistic facts: - Include only material facts in our observation. Other issues fall out of our scope • A ttitude: - passion and interest in the work is very much essential. If this lacks then there shall be no need of performing your task • R ate :- start rating yourself and the work done by you. Theoretically we say that we use equity theory of organisation management here. But it’s always a wide array of improvement if this is done. • T ime Management: - :- start prioritizing your work. Work that has been given the latest deadline is to be done first • E merge :- learn to be curious. Emerge with new and innovative ideas. This makes your work easier, quicker and interesting, and interesting work increases intrinsic values in a person leading him/her to work more. • R esponsibilities: - don’t ever take all the bur-
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den of work on your shoulder. We as managers learn how to get the work done by others. Right delegation is required. By this we mean the right job is to be given to the right person so that the tasks can be completed at a faster pace with less no. of errors.
OTHERS:Other ways could be to make a to-do list and jot down all the requirements of the day and act or frame plan of action accordingly. We could also make a time table (which is rarely followed by us though) but at least give it a try, because not all of us are lazy. There are people who abide by the schedule made Making stick notes could also possibly be a great option to look at. Important tasks can be written on a small piece of paper and the same can be stuck at convenient locations which constantly reminds of the the work to be done instead of forgetting the same. So u don’t really have to strain yourself to remember things. Why leave technology then? Large organisations use databases to store information and use the data related to potential customers to reap the benefits. Also as individuals, we could set up reminders in our phones and that eases the half of the work that was to be done. With the running pace of life in today’s world, all we get is stress, high blood pressure with a gold medal. My question is that is it worth it? Success at the cost of health is not an achiever, a go getter should believe in, when the same task can be done with easy techniques & without hurting ourselves mentally or physically. So WHY WORK HARD WHEN YOU CAN WORK SMART!!
PRIYANKA BINJRAJKA
LOGISTICS: NOT ONLY A SUPPORT SYSTEM The
flow of goods and services from the point of origin to the point of consumption to meet requirements of customers, corporations may be termed as logistics. These goods may include raw materials required for production or finished products that are ready to be delivered. It consists of physical goods such as food, material animals, equipments and liquids as well as abstract items such as information particles and energy, information flow, packaging; material handling, inventory management, transportation, warehousing and security are integral parts of logistics management. Logistics are of two specific viewpoints-one being inbound logistics and other being out bound. Inbound logistics mainly concentrate upon procurement of goods and services for the process of production. It aids the production process in the form of raw materials or information. Outbound logistics consists of packaged products or information to be delivered. Warehousing inventory management, packaging, transportation are indispensible towards the completion of outbound logistics. Logistics is a field that is perceived by many as just being support function for various other operations. It is not given enough important as a standalone management domain .But easy and confined as it may sound, logistics is a vast area that has lots of intricacies that do not meet the eye. Logistics can be of various typesProcurement logistics, distribution logistics, disposable logistics, reverse logistics, asset control logistics, emergency logistics to
name a few, There are several more like military logistics that is used to procure as well as send out food, apparel and ammunition for the defence sector. To make our understanding of logistics clear we may take the example of a company who has logistics as one of its main profit earning sector-Balmer Laurie. BL co ltd is a mini ratna company which is presently in the business of logistics, providing, transportation solution for several government and corporate houses both nationally and internationally. It is India’s no 1 in ocean cargo operations. They control both inbound and out bound logistics for even goods that come with specification like perishable or temperature sensitive items. These services include transportation of goods nationally or internationally by ocean or by air which is facilitated by their state of the art container freight stations at Kolkata, Mumbai and Chennai. There are several warehouses that aid in their stocking transportation and delivery of their goods. They even go into the trouble of door to door delivery for optimum customer satisfaction. Thus we may conclude by saying that logistics in itself consist a major part in facilitating the smooth floe of operations in firms. It may be considered as an integral part of business functions.
BUDHADITHYA
L’ENTREPRENEUR - IBS, Hyd 15
DISCLAIMER: The views and opinions expressed in the article are soley those of the author and donot necessarily reflect the official policies of the Cell. Reasonable Care has been taken to provide accurate up to date information at any time of publication , L’ Entrepreneur does not take any responsiblity of the decisions or outcomes based on the content herein. No part of the magazine is to be copied , stored or format without the prior permission of MAÇON The Entrepreneurship Cell of IBS Hyderabad. For any feedbacks and comments mail us at: ecellhyd@ibsindia.org Connect with us at: https://www.facebook.com/TheECell . Our Website at: htttps://theecell.org. You Can access our Exclusive videos Interviews at:
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