Transcript Entrepreneur Vs. Employee - Magma Research and Consultancy

Entrepreneur
Vs.
Employee
SMALL BUSINESSES DOMINATE THE U.S. ECONOMY
Percentage of all U.S. businesses
100%
90%
90%
80%
70%
20 or fewer employees
60%
21 to 500 employees
50%
40%
More than 501 employees
30%
20%
10%
0%
9%
1%
Number of employees
Source : South Western Publishing Survey Report
People who own, operate, and take the risk of a
business venture are Entrepreneurs
Think beyond the Safe Zone
“True Entrepreneurship comes only
from Risk Taking”
Dhirubhai Ambani
“I studied everything but never
topped.... But today the toppers of
the best universities are my
employees” - Bill Gates
Crowned Entrepreneurs in India
Deep Kalra
Ex-Employee, AMB Amro
Founder, MakeMyTrip.com
Dhruv Shringi
Ex-Employee of ebookers.com
Founder, Yatra.com
(Lost 3 Partners in the beginning)
Sachin and Binny Bansal
Alumni of IIT, Delhi
Ex. Employees of Amazon.com
Founders, FlipKart.com
Initial Investment : INR 4 Lacs
INR 500 Crore Company in 5 Years, 5000 Employees
Acquired WeRead, Mime360, ChakPak.com and Letsbuy.com
Vishal Mehta
Founder & CEO, Infibeam.com
Ex. Employee of Amazon.com
VSS Mani
Managing Director, JustDial.com
Initial Investment : INR 50,000
Current Company Value : INR 600 Crore
Failures :
AskMe in 1989, Wedding Planner with The Times of India
Vijay Shekhar Sharma
CEO, One97 Communications and PayTM
B.Tech., Delhi College of Engineering
(Failures : XS Corps in 1999)
Murugavel Janakiraman
Founder & CEO, Bharat Matrimony
Manik Arora
Director, IDG Ventures India
Ozone Media
Sourcebits Technologies
BrainBees
Goodlife.com
Zivame.com
Watchkart.com
Kreeda Games
Vserv Digital
FirstCry.com
Myntra.com
Lenskart.com
Bagskart.com
Kunal Bahl
Co-founder & CEO, Snapdeal
Started Jasper Infotech in 2007
Snapdeal in 2010
Shantanu Prakash
Director, Educomp Solutions Ltd.
Incorporation - 1994
Bachelors from SRCC, Delhi University and MBA, IIM- A
Launched eCampus
Launched PlanetVidya.com
Launched Smart Class Content solution
Zeebo Inc.
Patanjali Keswani
Lemon Tree Hotels Pvt. Ltd.
Ex. Employee : Taj Group of Hotels
B.Tech (Electrical Engineering) from IIT Delhi
Madhur Bhandarkar
Ex. Exployee :
* Video Cassette Library
* Ram Gopal Verma Productions
Verghese Kurien
Founder, AMUL India
Ex. Employee of Tata Steels
Education : Mechanical Engineering
Anil Jindal
Milkman to Millionaire
CEO and MD, SRS Group
• Companies with less than 50 employees, 44% were
satisfied.
• Companies with 50-999 employees, 31% are satisfied.
• Business with more than 1000, only 28% are satisfied.
Satisfaction Percentage
Employee Satisfaction
50
44
40
31
30
28
less than
50
50-999
20
1000+
10
0
less than 50
50-999
Number of Employees
1000+
Entrepreneurs Vs. Intrapreneurs
• Intrapreneur - in an existing organization turns
new ideas into profitable realities.
• Intrapreneurs - notice opportunities and take
initiative to mobilize resources, however they
work in large companies and contribute to the
innovation of the firm.
• Intrapreneurs often become Entrepreneurs.
• Entrepreneurs - notice opportunities and take the
initiative to mobilize resources to make new
products and services.
Entrepreneurs are Made …
Developed early in life ->
– With Family Environment
Self Employed Parents ->
– Support
– Encourage Independence
– Achievement
– Responsibility
Not Born!
Advantages of a Small Business
• Greater Opportunities
• Feel more important
• Feel more secure
• Comfort Level
Disadvantages of a Small Business
•
•
•
•
•
•
Lower guaranteed pay
Fewer benefits
Expected to have many skills
Too much cohesion
Hard to move to a big company
Large fluctuations in income possible
Successful and Unsuccessful Entrepreneurs
Successful
– Creative and
Innovative
– Position themselves
in shifting or new
markets
– Create new products
– Create new
processes
– Create new delivery
Unsuccessful
– Poor Managers
– Low work ethic
– Inefficient
– Failure to plan and
prepare
– Poor money
managers
Characteristics of Entrepreneurs
Key Personal Attributes
Strong Managerial
Competencies
Good Technical Skills
Successful
Entrepreneurs
Suitability for Entrepreneurship
• Interests
– Hobbies and interests
– Past experiences
• Aptitude
• Assess the advantages of Entrepreneurship
• Assess the disadvantages of
Entrepreneurship
ADVANTAGES OF ENTREPRENEURSHIP
• Own Boss
• Choose a business that interests them
• Creative
• Lots of money
DISADVANTAGES OF ENTREPRENEURSHIP
•
•
•
•
Risky.
Uncertain and Irregular Incomes
Long Working Hours
Must make all decisions by themselves
• Frustration with lack of immediate success
• Inability to make the switch to results, or goal orientation.
• Poor planning and implementation skills.
Entrepreneurship: Corporate INTRA-preneurs
To reap long-term benefits, top management must allow it
to flourish in the day-to-day operations of the business….
This is known as “Skunkworks”
Skunkworks -
Islands of intrapreneurial activity
within an organization.
REMEMBER: On the island, formal rules and policies of
the organization often DO NOT apply.
Evaluation of Opportunities and Risks
• Is there a market? Will people buy?
• How much money would it take? Will I be able to borrow that much?
• How many hours a week are required? Am I willing to commit that
much time?
• What are the risks? What is the rate of business failure?
• Do I have the right background? Do others who own this kind of
business have more experience?
• How much money could I make?
Questions and Factors
• What are my motivations for owning a business?
• Should I start or buy a business?
• What and where is the market for what I want to sell?
• How much will all this cost me?
• Should my company be domestic or global?
Market Research
• Planning & Research essential
• Extensive market surveys (family, friends,
neighbors…)
• Magazines and Polls offer some information
on the market
• Govt. Reports
Entrepreneurship: Managing a Family Business
 Over 50% of the U.S. Gross Domestic Product
(GDP) is generated from family business.
 12% of CEOs on the Inc. 500 list describe their
company as a family business.
Entrepreneurship: Managing a Family Business
Two reasons not to go into business with your family or friends.…
Families fight
Friends fight.
Often, it involves money. So a business environment could potentially
breed arguments, disagreements, and feuds.
Fighting can occur during early developmental stages when hours are
long and pay is low. Or, after success has been achieved.
Basis for a Personal Entrepreneurial Strategy
• Self assessment based on evaluation of
– Your thoughts and actions
– Feedback from others
• Become aware of blind spots
• Reinforces your concepts of your strengths and weaknesses
• Evaluation of data that you gather
• Develop insights about yourself
• Establish goals to fill in the blank spots
– Education
– Experience
• To make appropriate choices-to find fit with the ideas that
present themselves.
Begin with a Personal and Company Vision
• Charts your personal and the
company’s future strategic
course
• Defines the business makeup
for 5 years (or more)
• Specifies future technologyproduct-customer focus
• Indicates capabilities to be
developed
Myths About Corporate Entrepreneurs
•
•
•
•
•
Money is prime objective
High risk takers
Luck is critical
Lack morals or ethics
Power-hungry attitude and must build an
empire
Key Ingredients for Success
Big
Idea
Sufficient
Money
Relentless
Execution
Competent
Team
Good
Plan
And a generous helping of luck…
Elements of this Presentation are Courtesy of Dr. Mohan Sawhney @ Kellogg School of Management
The Idea: Assessing the Balance
What’s in it for me?
Promise
Why is yours better?
What are my costs
of making it useful?
Is it worth it?
Price
Differentiation
Effort
required
Support
Risk
Why should I
believe you?
Target Audience
Is this for me?
Courtesy of Dr. Mohan Sawhney @ Kellogg School of Management
What might
Go wrong?
• Growth vs. Profit
– Growth today is worth many times the profits tomorrow
• Speed vs. Deliberation
– Know your speed limit, and don’t let VCs make you exceed it
• Opportunism vs. Strategy
– Start out being opportunistic, but quickly become strategic
• Service vs. Product
– Servicize to learn, then productize to earn
Courtesy of Dr. Mohan Sawhney @ Kellogg School of Management
Firm and Company Formation
• Proprietary Firm
• LLP Company
• Pvt. Ltd. Company
• Ltd. Company
• Corporation
QUICK TIPS
Find a Vacuum and Fill It.
Do Your Homework.
Make the Most of Lucky
Breaks.
You Won't Be Committed if You're
Not Having Fun.
Embrace Change as a
Way of Life.
Work Hard, Play Hard.
Develop Your Contacts.
Set Goals (but go easy on the
"vision" thing).
Use Your Time Wisely.
Trust Your Intuition.
Reach for the Sky (at least once).
Learn to Sell.
Become a Leader. Recognize a
Failure and Move on.
Don't Put up with
Mediocrity.
Chase Quality, Not
Dollars.
Act Quickly in a Crisis.
After a Fall, Get Back in
the Saddle Quickly.
Thanks …
Dr. Gaurav Kumar
Managing Director
Magma Research and Consultancy Pvt. Ltd.
Ambala Cantt.
http://www.magmaconsultancy.com
[email protected]
+91-9416366178, +91-9034001978