April india keynote 2011
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Transcript of April india keynote 2011
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To help a million entrepreneurs reach a million dollars in annual revenue and beyond
One Million by One Million
Case Study: IDS Software
$10M a yr semiconductor yield management software company
Entrepreneur owned 80% of the company
Total Available Market (TAM): $150 M
$150 M TAM => Too Small For VCs
Exit price: $30 MEntrepreneur made $24 M
Successful Entrepreneur?
99% of entrepreneurs looking for financing get rejected
Fact:
Yes, Even In Silicon Valley
99% Rejection Rate
Market Opportunity Too Small
Tyranny Of The TAM
Many more $5M, $10M, $20M, $50M, $150M opportunities than $500M or $1B ones
Worth building, especially if you own a large %
90% OWNER OF $5M COMPANY SOLD FOR $25M
Which entrepreneur makes more money?
5% OWNER OF $25M COMPANY SOLD FOR $100M
$22.5m $5m
Ownership Matters
Case Study: Facebook
$500k at $5M$12.7M at $98M
First two rounds:
How do you preserve that much ownership?
Bootstrap to Validation and Momentum
Early stages: Lean, Lean, Lean
Entrepreneurship = Financing
Misconception
Entrepreneurship = (Customers + Revenue + Profits)
Truth: Financing is optional
An old error is generally more popular than a new truth
Unfortunately
Please avoid Silicon Valley’s errors
Indian entrepreneurs
Focus on customers, not investors
Scarce resources
Do not spray and pray1M/1M mantra of lean startups:
Do not try to boil the ocean
Focus:
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:
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
04/07/2023 One Million by One Million 38
5.2 m employers with < 20 employees; TAM = $2.6 b
04/07/2023 One Million by One Million 39
Without precise segmentation, TAM appears larger
Entrepreneur Journeys Series
For Inspiration, Role Models, Case Studies, Lessons
Entrepreneur Journeys SeriesOn Flipkart
EJ1: Inspiration & Overview
EJ2: Bootstrapping
EJ3: Positioning
EJ4: Innovation
Free, 1M/1M Strategy Roundtables
Every Thursday, Online
Join 1M/1M Premium for Extensive Methodology Guidance, Curriculum, Business Development, and Strategy Consulting
For $1000 annual membership fee
http://1m1m.sramanamitra.com
To help a million entrepreneurs reach a million dollars in annual revenue and beyond
One Million by One Million
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
Sectors
1. Technology and Technology-enabled Services
2. Education3. Infrastructure4. Rural and Slum Development5. Healthcare6. Lifestyle Brands7. Entertainment
I am looking for entrepreneurs to execute on these ideas
A vision for where you can take India
Vision India 2020: Elective Module in 1M/1M