Expert Speak at India Reports: Entrepreneurship in India

Expert Speak at India Reports gives you an opportunity to ask questions, get answers and gain insights from our thought leaders. We are eventually planning to address a range of strategic and operational issues on various aspects of doing business in India

Expert Speak: Entrepreneurship in India
If you have questions on Entrepreneurship in India, get them answered by Jaishankar B - Founder Director of Second Avenue, which provides advisory services to emerging companies in knowledge and high tech sectors. Get a chance to discuss important issues and opinions with our expert and others interested in the same subject. Your questions and answers will be published on this page.

Send us an email at with your questions.

Q: I have been working on my project for a year now. But with the current downturn I am not sure whether it is the right time to take my product to the market. Please advice.
This is question that many are asking. Yes, one has to be careful on entering the market in a downturn. But it also throws open opportunities. The market will be keen to look at offerings that help them produce their goods at lower cost – so alternate products, cheaper substitutes, efficient processes and such which help in reducing cost per unit will be attractive propositions.

Also innovative and risk-and-reward based business models which reduce cash expenses and capital expenditure will also find takers. Shared services, usage-based payments are some examples.

Q: I am developing my business plan which I will be showing to potential investors. Can you advice on the structure of the plan?
The essence of a good business plan is clarity and clutter-free articulation. And a business plan is much more an Excel sheet with P&L and cash flow statements!

You can consider the following structure :

• Company purpose
• Team strength
• Problem - and how it is addressed
• Market – size, growth, customer profile
• Competition
• Competitive advantage
• Product / services details
• Business related, including pricing & revenue, sales & distribution, customer/pipeline list
• Financials - p&l, balance sheet, cash flow
15-25 slides of presentation with lot of information and minimal words is all that is needed !

Q: I have been working now for 5 years and have been bitten by the entrepreneurship bug. I have come up with a set of projects. But I am not sure what I should finally choose. Please help!

I know this is a tough one! Is there a cordon blue recipe for a Startup?!
My 3-point recipe!

• Market: Large enough to accommodate plan B if plan A fails to take off
• Business knowledge: Deep understanding of market dynamics
• Team strength: Experience and competence of the founding members

Fit in your ideas with the above, and choose the one that comes on top!
Of course, the unsaid ingredient is passion which you seem to have anyway!!

Q: I have been running a portal on training domain. I have provided free access to all content. I need advice as to when I should start charging.

This is a tough one! Typically people will pay if they see if they are getting value. So you need to determine whether people are getting that from your portal.

You can look at continuing to offer ‘basic’ content free , and charge for ‘premium’ content. This way your ‘free content’ will hook the users and will serve as the platform to attract visitors and convert them to paying customers. But remember, your content has to be compelling enough for people to pay!

Q: Are there any specific industries in which VCs are generally interested in?

No. VCs look at returns irrespective of the sector.

What varies are the valuations and the parameters for valuations at different stages; Valuation at early stage it is really more rule of thumb based. Later stage companies are evaluated on specific parameters like revenues, profits, and future earnings/projections, etc.

Another common set of yardsticks that VCs use is market opportunity/size, market dynamics and strength of the team.

But net-net, it is the returns that that drives VCs

Q: I have started my venture recently, with my own money and funding by friends and relatives. I would like to have some advice on general business management.

You are not asking for the world, are you?!

It will do you a lot of good if you practice the following mantra of sustaining business:

• Have clarity of business – can you write it on the back of a small envelope?!
• Address large markets – it gives you margin for error
• Target ‘affording’ customers
• Induct/groom a team that gels well
• Think differently – think about reaching the finishing line first rather than outrunning
• Be agile – use speed and stealth to beat large companies
• Be frugal – spend on what is critical
• Start small – starting with little money forces discipline and focus.

Q: I want your suggestions on entrepreneurship in the manufacturing secto. I have been working with a big manufacturing conglomerate in Chennai for the past four years, and my entrepreneurship dream started few years ago and is still burning, I need your suggestions on entrepreneurship in manufacturing sector and can I get any outsourcing projects. I don't have a manufacturing unit now and will set it up based on customer response. Kindly advice as to the amount of investment required.

There are indeed opportunities of entrepreneurship in the manufacturing sector, and the investments  may range from a few lakhs to crores!

Please remember the principal will continue to subcontract only if the goods are manufactured and delivered when the key parameters are satisfied : competitive pricing, meeting quality/acceptance standards and on-time delivery.

So before you come to the investment itself, you should identify an area / product for sub-contracting where you have strength and knowledge to produce goods at competitive costs and consistent quality.

You can start by making a list, make a back-of-envelope calculation on the investments required,  and then take it from there.

Jaishankar B is the Founder-Director of Second Avenue, which provides advisory services to emerging companies in the knowledge and high tech sector. Jai's career spans nearly three decades in Manufacturing, Industrial Services, Management Consulting and Information Technology. Second Avenue will enable Jai to fuel his passion of guiding and nurturing young entrepreneurs. Read More

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