SPEED PITCHING : An interesting concept

18th July,2008 [i.e tomorrow] would be a memorable day for Vijay Anand and the team behind Proto since, it will be the first time that close to 500+ enthusiasts would be present at the event. Kudos to the organizers of this wonderful COMMUNITY event !!! And guess what, I would be missing all the fun and most of all the Live Blogging competition

We have come across Speed Dating and Elevator Pitches but wouldn't it be exciting to see a bunch of entrepreneurs in a room pitching their ideas to investors in just 7 minutes[also termed as Speed Pitching].Makes me remember of the days where there would be panel of interviewers interviewing a bunch of guys in a single room . Check out Speed Pitching in action below.You can know more about Speed Pitching & Funding Universe [the ideators of Speed Pitching] here & here



Just a Thought:
Though Speed Pitching is not a novel concept, it can be something that can be turned into a Mini-Proto !!! The only drawback being "Speed Pitching does not involve wannabe-preneurs, so does not help much in building a BETTER ecosystem, which Proto does very well !!!"

These are my thoughts on Speed Pitching and would like to hear "WHAT DO YOU FEEL ABOUT THE ENTIRE CONCEPT".

DEAD END for startups

Last few days, have been quite busy for me w.r.t Travel & Work and hence, could not blog for a very long time . Last weekend, I was at an Unconference named IdeaCamp in Pune [about which I would blog later]; where I met a friend of mine, who had an interesting Web 2.0 idea.He explained me about the concept and everything was fine until when he said "The big guys would definitely have a tough time and would face a big competition from me !!!!". This statement made things look so simple like "You have an idea, you execute it [without any problems] and you have a great market share ", but things are not always as easy as he mentioned during the conversation.There are so many uncalculated things that come during the phase of execution that may make a GREAT idea AVERAGE or an AVERAGE idea GREAT !!!

This was the best time to write an article on "Things that may break a Startup", which was featured in the DARE magazine.It is one the most practical article's, I have come across and hence, I thought of penning down the same on my blog [which would serve as a checklist for me as well for others who might have missed the article !!!].

NOTE:
The credit of this article goes to DARE magazine and below are some of the most important points from the article.

1. Your IDEA is STOLEN
Virtually, all the entrepreneurs believe that their idea is path breaking and it would take very less time for someone to steal their idea[if it is been discussed in public].Though this might be true[in some cases] but it is one of the biggest misnomers about entrepreneurship.Assume that you keep your idea trade secret and after few months, come out with your product or service.How much time would it take for a competitor to come up with a better product; learning from the mistakes you made or some of the loopholes that were left in your product, which may lead to another better product idea.If your product is hot, how much time would it take for China to mass-produce it? The first mover advantage does not always work the way it has been advertised.
Who came up with the idea of portable music player[PMP] ? And who made the most money out off portable music players ? One of the last entrants in the field : Apple.Who came up with the first cellphone? Motorola.Who is the lord of the cellphone business? Nokia.

It is not always the idea, but the execution that makes the difference.Being a first mover is not always the best.Learning from others who went before you helps.

2. You got it WRONG
You start off with a wonderful idea and after lot of hard work, realize that the things did not work as per the plan.The limitations could be simple, like you are not able to get the components of the exact precision that you wanted or you make a basic blunder in your calculations or assumptions that were revealed in the later stages. There could be market readiness issues or limitations in the delivery mechanisms.What is the way out to this problem - Stringent and frequent reality checks. At the concept stage, do not make sweeping assumptions.Get the basic figures of market size, technology availability and costs right within reasonable limits[+- 15 to 20%].Cross check these numbers thoroughly and recheck them FREQUENTLY. If your business has come about as a result of some market feedback for example from a market survey, recheck to ensure that the sampling and the interpretation is correct.

3. Takes LONGER than PLANNED
This happens due to the following reasons:

1. The complexities were not very well understood in the beginning.
2. A bigger problem is when the founders fall in love with the product and fiddle around for ages to make one cool feature or trying to make it prefect.

To manage the first problem, budget for more time than you think it will take.Many successful entrepreneurs say that it would be wise to budget for anywhere from 25 to 50% more time than you expected, depending on the scope and complexity.The second one is more difficult to get rid off.Do not fall in love with your idea[though it is easier said than done], forgetting the passage of time even as we make the most minor changes to it.Taking learning from Gmail, which is there in beta from 2004 onwards.The way to handle this is to break down your project into clear activities and milestones and work out how much slack you can afford to take at each point.Having some [co-founder or even an employee] sound an alarm bell on slippages is also a good idea

4. COMPETITOR releases FREE EQUIVALENT
This is a very common problem that is unique to the software industry.But it can happen in various other industries also, where the competitor reduces prices to rock bottom just before you launch.This is the most toughest one to handle and the only solution being to cut your losses immediately and move to Plan-B [if you have one].

5. ONE-MAN shows DON'T WORK
There are very few businesses where a one-man show can pull along and grow for long , which are either in the show business or in sports.If you are not an ace actor or a sportsman, you will need a team that will help you to achieve your goals and grow big.One man shows collapse from sheer exhaustion.
Another version of the one-man show is where the team is kept too small , because the founder does not want to give up control or because of fears of quality being compromised. While this does not lead to the business closing down, it does limit its ability to scale.

6. CO-FOUNDERS fail to GET ALONG
This is one of the most deadliest reasons of all. You have all things in place like your idea, business plan, development team but the only problem is that your top team can't get along.Too many ego clashes, too many instances of my-way-or-the-highway !!! Some differences of opinion are bound to happen and an occasional debate is not a bad thing, as long as you can put all that behind and get back to work.But if these get too frequent, than it is better to part ways than to continue.A clear exit plan is a good thing to have as your agreement.
Worst of them all is when the LEADER himself/herself is responsible for all the troubles,which if not corrected may lead to very serious problems[including closing down] in future.

7. CAN'T AFFORD key skills
You need a specific skill without which your offering is incomplete and that particular skill is not available to you or is too costly to afford.Depending on how critical the skill you are looking for is, and how the demand for that skill in the market is, you need to offer a challenging deal to the candidate. In most of the cases, the right combination of Money and Challenge[in work] would do the trick.

8. MARKETS do NOT accept your PRODUCT
All the things are in place and you are out with your product, but what if the market is not willing to accept your idea. Many startups fail because they have no relevance to the market.Another reason is that they are too overpriced for the market to bear.
It is always advisable to adapt to the market realities and to create a product which is well-inline with the market requirements.Cost effective methodologies for market research like Dipstick Surveys can be effectively used by startups.

9. MARKETS CHANGE
Market and technology changes are a part of the business cycle and like any other business, you need to change your business to be able to survive and prosper.BPO Business took over most of the Medical Transcription businesses.The revolutionary PC completely drove the typewriter out of business.
Those who change with the times survive and prosper, those who don't , become a footnote to history

10. MONEY RUNS out
Most of the startups are conservative in estimating the costs and get too aggressive on income figures due to which, money runs out.Making a good business plan is not a one time activity.As the business environment changes and as you get good understanding of the business, change the business plan[at least for yourself].
Another reason could be a slump in the economy which stops the inflow of money.The solution is to have a realistic plan in place and making it more & more mature as your business gains maturity.

11. YOU GIVE UP
What happens when the leader himself/herself looses the way and gives up.If you fall in the category of startups that cannot make it big, there is no need to loose heart. Try again

I hope that you gained lot of insights from this article, just as I did. Thanks DARE for such a wonderful article, which is an eye opener for all the startups !!!

Is your IDEA a Business OPPORTUNITY ?

All of us get ideas [many of them daily get plenty of ideas ] and feel that we can create a business out of it, but many of those ideas cannot be transformed into businesses. May be some don't make any Business sense at all, some cannot be taken up full-time [ but may be help you in getting some additional income].

Blogging is a good example; it can be thought of as a hobby or a past-time or a way to Change the World , but very difficult to go full time into blogging May be this question would be rightly answered by any of the full-time bloggers in the Blogosphere.

There are a couple of ideas that each and every one of us work on , but very few of them can materialize into a full-time startup.

In my current read Harvard Business Essentials , Jeffry Timmons; a leading expert on Entrepreneurship has highlighted 5 Characteristics that any Business Opportunity [ Product/Service ] should possess to certify it as a business.

1. Creates significant value for customers by solving a significant problem or filling a significant unmet need for which they are willing to pay the premium.
2. Offers significant potential to the Entrepreneur and investors - enough to meet their risk/reward expectations.
3. Represents a good fit with the capabilities of the founder and the management team i.e. something in which they have the experience or the skills to pursue.
4. Is durable - the opportunity for profits will persist over a reasonable length of time - something that is not based on a momentary craze or a need that will quickly disappear.
5. Opportunity that might be eligible for financing.Though the funding scene is very different, yet a commercial idea at least gets the eyes of investors [ if not all, at least few of them ]

Reader Contribution:

1. An article covered in Forbes : Is your great idea a real business [Thanks Nithya Dayal]
2. Few of the points that I missed are:
Passion and Patience of the Entrepreneurial team [Thanks Manoj Awasthi]

Infosys's - InfYi to promote Social Entrepreneurial dreams

Infosys has taken a step ahead and formed "InfYi", a new initiative within the company through which it will support, and in some cases fund, ideas on social entrepreneurship and convert them to viable business plans.

As stated in The Economic Times,23rd May 2007:

The initiative, called InfYi will function as the corporate chapter of the Young India initiative started by the Confederation of Indian Industry. Reflecting that charter, all its members below the age of 35 will be Infoscions.

The stress won't be on funding but to provide guidance to the Entrepreneurs. Based on the inputs that a project or idea needs, a senior council member will contribute to it. The projects could be in youth affairs, education, healthcare, economy or any other socially-relevant area. So far, InfYi has received 13 project ideas. Three of these will be shortlisted taken from concept to execution. They will be put through the paces by a team which has worked out how to capitalise on opportunities and survive downturns.

Read the complete article here