Key strategies for budding
entrepreneurs
StartingUP
Presented By
Venkat & Srivalli
Founders,eFarm
Entrepreneurship Awareness Program
Introduction : The FoundersVenkata Subramanian , COO
MS (Computer Science), SUNY Albany, Newyork , 2003
B.Arch , IIT Kharagpur , India , 1995
Over 12 years experience (1995-2007) in IT industry in roles such as Program management, Portal development for BFSI clients, Outsourcing and Consulting
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Srivalli , CEO
MBA (ICFAI), 2000
B.Com Taxation, NMKRV, 1997
8 years experience in Sales, Marketing, & Operations. Has run two start-ups and organised
fund raising for NGOs as part of CSR programs.
Technology & Operations
IT / Call entre
IT Dev. & Testing Team
Operaions
Purchase & Delivery Team
Call centre
Call centre / BPO staff
Domain Consultants
Marketing and HR
Marketing HR
Interns
Finance
Currently Better known as …. ‘Hi-Tech Subziwallahs’ of Chennai
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Most Promising
Startup 2011
Can privatizing agriculture solve
marketing problems?
Farmer’s Notebook , M.J. PRABU
A network of collection centres and distribution centre in Chennai and surrounding districts, procuring daily from over 2500 farmers and supplying to leading retail outlets,hotels, caterers and restaurants in the city.
WHO ARE POTENTIAL ENTREPRENEURS ?
Audience activity with students
World Most Famous College Dropouts who became successful entrepreneurs …
•Dropped out of Harvard after 2nd year in 1973
•In 2007, thirty years after he left Harvard, he would finally receive his degree (an honorary doctorate) from his alma mater.
At the commencement, said, "I'm a bad influence. That's why I was invited to speak at your graduation. If I had spoken at your orientation, fewer of you might be here today.“
•The software company he built runs almost every PC today
•dropped out of Reed College after just six months because of the undue financial strain on parents
• found NeXT Computer and Pixar
•.. Apple, ipod, iPad ….
• Steve Jobs
• architect, thinker, inventor, futurist, engineer
• Expelled from Harvard not once, but twice
• string of bad business ventures and years of depression following his daughter's death
• Inventor of Geodesic dome
• Buckminster Fuller
• enrolled in Fullerton College to study physics.
• He would drop out, marry a waitress and eventually become a truck driver for the local school district
• he saw Star Wars in 1977 and decided to join movies
• Director of award winning sci-fi movies like avatar, titanic , terminator , aliens …..
• James Cameron
• did his schooling in Chorwad but couldn’t continue to college, as he couldn’t afford
• started by selling bhajias to pilgrims visiting Girnar peak.
• came to Mumbai in 1959 with Rs 500 in his pocket and today his business empire is worth over Rs 62,000 crore
• Dhirubhai Ambani
SO WHATS THE BIG IDEA ?
Are you ‘Passionate’ about your Idea ?
• Spa = ‘Thel Malish’ ?
• Waste Recycling = ‘Kabadiwallah’
• IT firm = ‘Software Coolie’
• Starting a business is like “Falling in Love”• Don’t chase something which is NOT yours• Follow Your Instinct
Ideas Need Not Be Unique .. But Implementations Are
• Software – Microsoft v/s IBM
• Search engine – Google v/s Altavista
• Social network – Facebook v/s Orkut
Often ‘first movers’ loose the advantageSmart Entrepreneurs often ‘improve’ an existing idea !!
Building a Team
• What we can learn from ‘ants’ …
• Founders : Friends v/s Family v/s Professionals ?
• Whom to recruit
– Brand college grads or Tier II ?
– Family v/s Outsider : Pros and Co
• One good person knows another good one : Referrals
BEFORE YOU MEET YOUR FIRST INVESTOR
Learn Excel and How to make nice charts ;-)
MONTHSALES (IN Rs) M-O-M % Inc Net Profit
Base March
136400April
321700135.85% 27300
May
40580026.14% 48400
June
46220013.90% 13100
July
52640013.89% 30200
Aug
59665013.35%
Sep
66370011.24%
Oct
73075010.10%
Nov
82500012.90%
Dec
92500012.12%
Jan
104000012.43%
Feb
119000014.42%
Mar
137500015.55%
Actu
als
Pro
jecte
d
15 crores target in 3 years
Know Your Numbers
• Credit/debit
• Profit & Loss
• Balance sheet
• Cash Flow statement
• Read a good book which explains ‘Finance for Non-Finance people’
A Simple Vision / Missionstatement
What is your GOAL ?
Avoid Blah .. Blah .. Blah …
Elevator Pitch |What is <your company> ?What does the Company do?
In ONE sentence explain your product / service
Who is the customer ?
Key pain points for end customers addressed ?
Top 3 MAJOR value additions of your service or product
Current status / competitors
How are you different from the ‘crowd’
How will you make Money ?
How much money do you need to ‘start’ and get to ‘break even’ ?
Your 1st Investors
• Family – Father , Father-in-law !
• Friends
You can’t fool them.. They know too much about you..Will give you money either to encourage you or just to avoid being ‘bugged’ by you !
Professional Investors
You get money for just being cute
You sing Baba black sheepAnd u get money
If you pass exam you get your toy
Start making money and support your self and your family
Retire = Exit
Angel VC PE IPO
Remember :Investors want their money ‘BACK’ with ‘RETURNS’
Fear of ‘Fa(i)lling’
Successful entrepreneurs are those who have FALLEN many times ,but still get UP and move on …
Running a new business is like learning to cycle
first time …
None has ever learnt cycling without FALLING
The Ideal Entrepreneur
Have the discipline of a soldier ….
.. Ready to jump into fire …
.. But still ‘enjoys’ doing the impossible !
eFarmEnabling FArmers to Reach Markets
Part II
The Making Of eFarmThe Inside Story Of a Social StartUp
Why I Became An Entrepreneur ?
• Coming from a typical ‘Tam-Bram ‘ family , It took me 12 years of preparation to feel I am ‘ready’ to be an entrepreneur.
• An ‘empty’ feeling within that ‘I have not accomplished anything with my life’
• Motivated by other entrepreneurs
• The ‘India Inc’ rising stories in press
• Movies – Swades !!!
• Growing support structure for startups – mentors, incubators, forums, magazines
Why a ‘Social’ Business ?
• NGOs – driven by passion & cause , very fulfilling but lack sustainability, funds to operate
• Corporates – Driven by financial profitability as success, but no commitment to social upliftment
• Social business : Best of both worlds
Why ‘Bottom of Pyramid’ ?
• Poverty is relative – an analogy : Bill gates v/s AzimPremji v/s ME v/s Muniyamma v/s Unemployed MBA (?)
• Poor people Pay MORE for LESS
• CK Prahlad and the BOP mirage – BOP as a ‘buyer’ v/s BOP as a ‘seller’– Farmer BUYING cellphone or insurance
• v/s
– Farmer SELLING rice
PROBLEM STATEMENTWHY IS THERE A CRISIS IN INDIAN AGRICULTURE ?
Only a crystal clear question yields a transparent answer
– Zen saying
Pain areas | The Agri Supply Chain Current State : Too Many Steps , Too Little Value Addition
Wholesalers to Retailers
Terminal markets to neighborhood wholesalers
Regional mandi to Terminal markets near
large cities
Harvesting of Vegetables
A local mandi auctioning
Local to Regional mandis for Auction
• Unorganized , unregulated , unprofessional & unprofitable•A Middlemen’ dominated market•Adhoc /Arbitrary Decisions on quality & price
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2
3
4
5
6
Retailers to Dining Table
7
Loss in transit 40%
Price hike
End to end
> 400%
So many solutions , but why still a crisis ?“Blind men and the elephant” syndrome in agri
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Without reliable
and LIVE data
any agri
interventionOr
agri-business will be
A
failureCold chain
GM foodsSubsidies,
Loans, grants
Increase yield
FDI in Retail
Export market
R & D
Contract farming
Reality CheckIndia’s largest
industry is running with
NO DATA==
DAILY CRISIS
Number #1 problem of Agri Industry THERE IS NO ACCURATE DATA OF SUPPLY OR DEMAND
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Who are the ‘REAL’ farmers ?
What are they growing ??
What is available RIGHT NOW ?
Who are the END buyers ?
What are they buying ?
What price is END customer willing to pay ?
What is the cost of growing for farmer ?
How to arrive at correct pricing for produce ?
Reality Check•Farmers cannot do “everything”. They need professional help and organizational support
•Farming needs to become self sustaining and HENCE a business activity•High uncertainty and risks = Very low investor interest•Years of neglect & low esteem = educated youth avoid an agricareer =Labour problems
Need role models and pioneers to build the road to recovery
Pain areas | The Farmer’s ‘REAL’ crisis
Pain Areas | Customer Spectrum Huge domestic demand, Escalating prices & Unmet needs
Low Income Group
• > 40% in volume
• Buy from neighborhood markets (evening)
• Pay more for less quality
Middle Income Group
• ~ 20% in volume
• Buy from street vendors
• Price + Quality conscious
High Income Group
• ~5% in volume
• Buy from retail chains
• Quality & variety conscious
Hotels & caterers
• ~25% of volume
• Buy from wholesale mandi
Food & Drink processors
• ~5% of volume
• Product specific buyer
• Large volume + fixed price range
Export
• ~1% of volume
• Best quality / specific products only
Organised retailers are crowded in this spaceCompetition high
Efarm targets entire B2B segment and currently untapped areas
THE SOLUTION
"We can't solve problems by using the same kind of thinking we used when we created them."
Albert Einstein
“Desi” Problems need ‘Jugaadu’ solutions
Key Innovations
1) Weighing machine = standardise agri business transactions !
Bundles, baskets , bags Kilograms , Counts
2) Simple grading = right quality to right customer!!
Mixed grades S / M / L (Or) excellent / OK /bad
3) Simple technology = widest usage !!!
PCs, Websites Mobile phones , Voice, SMS
Value proposition | Connecting the Dots
Farmers
Rural Produce
Collection Centres
Quality
Inspection/ Grading
Cleaning / Packing
Routing
Long haul
Transportation
Urban area
Distribution centre
Small retailersLocal vendors
Food Processing
units
Exports
Bulk buyers
(Hotels / Caterers /
Retailers)
Compost/Manure
from waste
eFarm Common Services
Planning &
CoordinationResearch
Call centre /
CommunicationTechnology
Training &
Support
Local
Distribution
Every stakeholder is alternately a buyer or seller of agro goods, linked together by a common system. Thus :
Develop Online supply chain Technology backbone with offline distribution mechanisms
Create a network of farmers, intermediaries, logistics providers, distributors and retailers
Provide common support services like marketing , training , technology and agri business consulting
‘Organize’ the ‘un-organized’ rural to urban supply chain
Manage the network to ensure sustainability across the chain
Rural Collection Centres
Collection centres
Chennai Distribution Centre
Distribution centre
Kisan To Jawan : Retail Outlet For Indian Army
Value addition Cut
vegetables
Peeled
onions
and garlic
Agri waste
collection
and
composting
Value added lProcesing team at our Mylapore centre
Natural
Ripening
Of fruits
Training / Workshop
Enabling MORE farmers Reach WIDER Markets..
In Seconds
eFarmDirect
efarmDirect is a
B2B online platform which uses simple ICT tools to
CONNECT farmers with all the agrisupply chain stakeholders to build a
nationwide farmer’s marketing portal
What is eFarmDirect ?Key problems for farmer 1) Limited choice of buyers2) Lack of Labour3) Rising Input Costs of agro-supplies4) Rising Transport Costs5) Unviable market prices
All other Industries use ICT tools and Software
applications to manage operations
Whereas,Farmers have not been IT enabled and are cut
off from the ‘new’ world
Buyers
Suppliers Transporters
Labour
eFarmdirect.comWeb portal | Call centre| SMS
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Some Real World Examples of How Technology has enabled comman man in India
…eFarmDirect is a combination of such business models to solve the ‘farmer’s crisis’ 45
Removing the agents : IRCTC train ticket booking No more touts . No more queues !! Hassle free train ticket booking from home or browsing centre ! India’s Most successful e-commerce venture
B2B Business directories : Justdial / India martAny business/trade information is just a ‘phone call’ away . Details available over call centre or via SMS
Logistics : Call Taxis ( Meru / Fast Track etc.,)Cabs available on-call .Timely pickup/drop, Economical fares – combination of technology & well trained staff for great service
Brown Collar Job Board : Babajobs.comJob portal for brown collar job seekers – connects maids, drivers, plumbers, technicians to customers via call/mobile/sms .
PORTAL DEMO
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What all products ?Vegetables and Fruits
Cereals & Pulses
Flowers and Aromatic products
Herbs ,Spices and Forest products
Plantation crops (cash crops)
Livestock & Poultry
Processed products / Value added products
Special category for ORGANIC PRODUCE47
More produces, categories will be added based on need
Over 5000 crops, varieties and farm based products are already listed
Who are the buyers listed in portal
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Organisedretail chains
Local shops
Vegetable vendors
M andi/ Major
markets
Traders
Wholesalers
Hotels
Caterers
Restaurants
Exporters
Food processors
Organic retail/whole
salers
Niche product buyers
Who are the agro-suppliers ?
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Input suppliers
Seeds
Fertilisers
Irrigation equipments
Drip
Pumps
Motors
Tools and Farm
equipments
Tractors
Machineries
Rentals /Lease
Storage
Cold storage
Warehouses
Ripening chambers
Institutions
Banks / MFI
NGOs
Agri-clinics / Labs
Consultants
DATA COLLECTION - FARMERProduction data
•Produce name, variety
•Grade
•Typical yield at harvest
•Harvest cycles
•Cost price at farm gate
•Organic ? Certifications ?
Farmer information
•Name
•Address
•Contact number
•Preferred mode of payment
•Bank / Post office details
•Photo
•Attestation
Other information
•Land type/irrigation type
•Banking information
How data is collected ?
•At farmer mela’s and
exhibitions
•Through partners like NGOs,
KVKs, Agri institutions, rural
banks and MFIs
•Through franchisees
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Basic Buyer-Seller Search and Features
Search by produce, availability, quantity, price
Farmer/buyer details with contact info
Demand / Supply projections for future planning
Map view for locating farmers by area 51
Advanced Features
Audio Visuals MarketingFarmers can add audio/videos/pictures about their produce / products to showcase uniqueness
GROUP view map small farmers to respective SHGs, Federations and Institution –enables ‘aggregate’ of quantities to meet larger demands as a ‘combined entity’
Rating and review mechanism farmers and buyers can provide feedback which builds transparency and identifies ‘good’ performers
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Roll Out Plan
Will create over 3 Million jobs in villages and rural areas in 4 years
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Livelihood Generation and Social Impact
• Creating Agri entrepreneurs in Rural Areas • Rural youth/ Women are trained as local representatives for data
collection/updation
• Revenue from commissions and value added services
• Providing Employment for Disabled and Under priveleged
• Call centres/BPOs operated by differently abled – visually challenged , speech/hearing impaired
• Job opportunities for those tapping unconventional talent pool of India
:
• Reverse migration to villages • Create labour pools of semi-skilled labourers for farm work who are
available ‘on-call’
• Create central equipment leasing model so that farmers can ‘hire-an-equipment and operator’ to reduce equipment costs
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Current Status as of Feb 2012• Inaugurated in Bangalore krishi mela by Vice Chancellor of
UAS, hebbal on 20 Nov 2011
•Stalls in major krishi melas – bangalore, nasik, Pune drew over 1 lakh farmers
•Over 5000 registered farmers , 1000 buyers, 150 suppliers PAID in pilot phase and operational
•Next version to be inaugurated at FOODS 2012 Global conference at MOP vaishnava
Awards and Recognitions
–Proto.in ‘Most promising startup of 2011’
–Best Stall award at Bangalore krishi mela and runner up in Nasik krishi mela
–Presented to Sam Pitroda’s Action For India Forum in New Delhi under’ innovations of ICT in Agriculture’
Pilot projects (under discussion/planning stage )
–Uttaranchal government’s aajeevika – pilot at Uttarkashi
–NABARD,Chennai – Pilot in Chennai and surrounding districts
–IFAD – Roll out in Project areas of IFAD in India
–NSDC – Rural jobs training and portal55
How you can engage with us
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For Further Details
•efarm company website : www.efarm.in
•efarmDirect : http://www.efarmdirect.com/
•FAQ
•Videos and Training materials
•Registration
•Facebook : www.facebook.com/myefarm
•Blog : http://groups.google.com/group/efarm
Venkata Subramanian Founder & MD /COO
(M) 98847 61354
Srivalli Krishnan Co-Founder, Director /CEO
(M) 7418844275
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