In an online chat with readers on February 6, Amit Grover, founder, Nurture Talent Academy addressed queries on how to be a successful entrepreneur.
For those who missed the live chat, here's the unedited transcript.
entrepreneur asked, sir, what is the best place to start a restaurant? what is the initial investment i will have to make?
Amit Grover answers, at 2012-02-06 15:02:00Best place to start a restaurant is where the footfall of your customers is very high. There are various choices u have - a veg vs non-veg, multi-cuisine, oriental or quick service restaurant. Investment also can range from a small size of a thousands to crores for a high-end restaurant. I will suggest you to meet 5 real restaurant owners to know more practical issues.
TS asked, I want to start a Petrol Pump. How to go about that
Amit Grover answers, TS - you should connect with any sales and marketing officer of the large petrol vendors like HP/BP etc. to get this information. Things to keep in mind include location, capital requirements, vehicle flow, manpower etc.
entrepreneur asked, thank you amit. what about manpower requirement? we have a land of 2 acres
Amit Grover answers, Manpower will also depend on the type of restaurant - chefs, waiters, billing manager, sales/mktg/business development person, procurement head etc. This is after starting. Before starting, u may need architect, designers, contractors, legal consultants etc.
deep asked, what cares to be taken to star a franchisee
Amit Grover answers, Deep - franchisee success depends on the support from the franchisor and entrepreneurial capability of franchisee. I will suggest you to do a background check on the franchisor and talk to people who have taken the franchise earlier - many relationships go sour as sales people promise the moon and deliver nothing later after u have paid franchise fees.
rahul asked, entrepreneur before 25 or after 25?
Amit Grover answers, rahul - it is like love, you or me cant decide the age when it will happen!
deven asked, For my new HR Company's Growth (2 Year old)I want a fund at cheap rates...What are the sources available?
Amit Grover answers, Deven - bank loans are the cheapest sources of funds available. You can try going through CGTMSE scheme and connect with any public sector banks to get loans without guarantee.
deven asked, For my new HR Company's Growth (2 Year old)I want a fund at cheap rates...What are the sources available?
Amit Grover answers, other sources include business plan competitions - there are over 200+ such competitions and all offer 10000 to 5 lakhs of prize money - unconventional but possible way of getting funds!
KMIKJKO asked, Sir, I want to start trading in pharmaceuticals and chemicals. What should I do so that I get 60 days credit?
Amit Grover answers, You can start meeting customers via trade exhibitions or online like indiamart.com and do marketing to them for collecting orders.
DKGAUR asked, Sir I want to start a transport business? what are money required for it
Amit Grover answers, Transport business requires investment in manpower, office, marketing, and trucks. You can calculate based on your plans and scale of business.
xfZSdfsdfsg asked, Which is best online Sell Store Business.... means what should I sell online for good and bright future prospectus
Amit Grover answers, there are multiple products being sold online ranging from travel tickets, books, electronics, jewellery, baby products etc. Office stationery is a new and upcoming category, u can try that.
AK asked, Early funding is always a problem - funds don't come in until you prove yourself, and you can't prove yourself till you have funding. In a situation like this, functions like marketing (high cost), and hiring ppl are a challenge. How do you break this circle?
Amit Grover answers, Ak - you are absolutely right abt the early stage funding issues in India. However, there are some sources like incubators, angel investors, CGTMSE loans, and business plan competitions that provide initial investments. Traditionally, this was done by friends, family and father-in-law!
Shakeeb asked, Sir, Whats your advice for people who would like to be social entrepreneur? Hows the trend in social sector
Amit Grover answers, there are rich people like bill gates, azim premji and warren buffett who are looking for innovative models in social sector. In India, there are various sectors where social impact can be made including financial inclusion, healthcare, energy, housing etc.
Busipa asked, I am a Mech Engr with experience in services(repair/maintenace). can I start a business without any much investments? If yes, what are the legal things, I should get through?
Amit Grover answers, Busipa - degree is not a necessity for starting an enterprise. You can start legally as a proprietor if you are alone by opening a current account in any bank. Keep the focus on getting customers, keeping them and satisfying them. Investments are any way negligible for a small service business for repair etc.
DINESH asked, Sir I have Rs.7 Lacs in hand. What are the good business ideas for me.I am a commerce graduate.
Amit Grover answers, Dinesh - you can start something related to your passion. Dont start with what resources you have and do something. Start with what you love to do and get resources for that.
Illustrations: Dominic Xavier
For those who missed the live chat, here's the unedited transcript.
entrepreneur asked, sir, what is the best place to start a restaurant? what is the initial investment i will have to make?
Amit Grover answers, at 2012-02-06 15:02:00Best place to start a restaurant is where the footfall of your customers is very high. There are various choices u have - a veg vs non-veg, multi-cuisine, oriental or quick service restaurant. Investment also can range from a small size of a thousands to crores for a high-end restaurant. I will suggest you to meet 5 real restaurant owners to know more practical issues.
TS asked, I want to start a Petrol Pump. How to go about that
Amit Grover answers, TS - you should connect with any sales and marketing officer of the large petrol vendors like HP/BP etc. to get this information. Things to keep in mind include location, capital requirements, vehicle flow, manpower etc.
entrepreneur asked, thank you amit. what about manpower requirement? we have a land of 2 acres
Amit Grover answers, Manpower will also depend on the type of restaurant - chefs, waiters, billing manager, sales/mktg/business development person, procurement head etc. This is after starting. Before starting, u may need architect, designers, contractors, legal consultants etc.
deep asked, what cares to be taken to star a franchisee
Amit Grover answers, Deep - franchisee success depends on the support from the franchisor and entrepreneurial capability of franchisee. I will suggest you to do a background check on the franchisor and talk to people who have taken the franchise earlier - many relationships go sour as sales people promise the moon and deliver nothing later after u have paid franchise fees.
rahul asked, entrepreneur before 25 or after 25?
Amit Grover answers, rahul - it is like love, you or me cant decide the age when it will happen!
deven asked, For my new HR Company's Growth (2 Year old)I want a fund at cheap rates...What are the sources available?
Amit Grover answers, Deven - bank loans are the cheapest sources of funds available. You can try going through CGTMSE scheme and connect with any public sector banks to get loans without guarantee.
deven asked, For my new HR Company's Growth (2 Year old)I want a fund at cheap rates...What are the sources available?
Amit Grover answers, other sources include business plan competitions - there are over 200+ such competitions and all offer 10000 to 5 lakhs of prize money - unconventional but possible way of getting funds!
KMIKJKO asked, Sir, I want to start trading in pharmaceuticals and chemicals. What should I do so that I get 60 days credit?
Amit Grover answers, You can start meeting customers via trade exhibitions or online like indiamart.com and do marketing to them for collecting orders.
DKGAUR asked, Sir I want to start a transport business? what are money required for it
Amit Grover answers, Transport business requires investment in manpower, office, marketing, and trucks. You can calculate based on your plans and scale of business.
xfZSdfsdfsg asked, Which is best online Sell Store Business.... means what should I sell online for good and bright future prospectus
Amit Grover answers, there are multiple products being sold online ranging from travel tickets, books, electronics, jewellery, baby products etc. Office stationery is a new and upcoming category, u can try that.
AK asked, Early funding is always a problem - funds don't come in until you prove yourself, and you can't prove yourself till you have funding. In a situation like this, functions like marketing (high cost), and hiring ppl are a challenge. How do you break this circle?
Amit Grover answers, Ak - you are absolutely right abt the early stage funding issues in India. However, there are some sources like incubators, angel investors, CGTMSE loans, and business plan competitions that provide initial investments. Traditionally, this was done by friends, family and father-in-law!
Shakeeb asked, Sir, Whats your advice for people who would like to be social entrepreneur? Hows the trend in social sector
Amit Grover answers, there are rich people like bill gates, azim premji and warren buffett who are looking for innovative models in social sector. In India, there are various sectors where social impact can be made including financial inclusion, healthcare, energy, housing etc.
Busipa asked, I am a Mech Engr with experience in services(repair/maintenace). can I start a business without any much investments? If yes, what are the legal things, I should get through?
Amit Grover answers, Busipa - degree is not a necessity for starting an enterprise. You can start legally as a proprietor if you are alone by opening a current account in any bank. Keep the focus on getting customers, keeping them and satisfying them. Investments are any way negligible for a small service business for repair etc.
DINESH asked, Sir I have Rs.7 Lacs in hand. What are the good business ideas for me.I am a commerce graduate.
Amit Grover answers, Dinesh - you can start something related to your passion. Dont start with what resources you have and do something. Start with what you love to do and get resources for that.
Illustrations: Dominic Xavier
'Besides hardwork, passion and energy is required for success'
ent-guru asked, iam planning to start a farm (poultry and meat), can you suggest somthing
Amit Grover answers, its a nice idea, my suggestion will be to keep the initial costs low and keep meeting more and more customers as early as possible.
ksp asked, how about generating sale lead to ecom site like flipkart letsbuy etc with a model of getting x% commission so that the logistic and warehouse can be effectively used or any other b.model on mutual benefits
Amit Grover answers, yes, lead generation is a good model. For example, ixigo.com is doing it for all online travel agents.
suresh2424 asked, Sir Apart from Hardwork, dedication, etc etc how to boost any business in general
Amit Grover answers, Passion and energy - my 2 words for success. You can learn from Sachin Tendulkar and Vinod Kambli what matters most.
sanjiv asked, What are the ventures to be considered for girls (18-20 years)
Amit Grover answers, sanjiv - girls love shopping, cosmetics, apparels etc. the best. However, online shopping for girls hasnt taken off yet, which is a challenge as well as opportunity.
ari asked, Sir,currently Iam working in a manufacturing unit(vendors of TATA MOTORS) i want to open my own export house.can you please suggest me the place and product?
Amit Grover answers, Ari - its not possible for me to suggest what you should do. Please look within and around you for possibilities. And do some work in the procurement or sales and marketing to get more idea abt what sells in the market and make key customer contacts.
ashish asked, After graduating I have joined my fathers business.I have ideas but the problem is shortage of funds. Should I think about starting something new or concentrate on consoliadating my existing business?
Amit Grover answers, Ashish - i suggest you consolidate first before starting something new. Generate some surplus from your own business, and then also look at outside funds like angel or venture capital, or bank loans for a new venture or expansion.
Abrar asked, Hello sir i have a small business of sending students overs seas for higher studies any tips how i can be helped in doing this
Amit Grover answers, Abrar - build a channel of partners who can give you regular flow of interested students like leading colleges, training institutes etc. and u can share commissions with them.
x asked, Hi Amit, I want to start a social responsible business, but not an NGO as i also want to make profit from it. so how the funding can be arrange as most of the social concerns are not taken care by government.
Amit Grover answers, you can start a for-profit social enterprise. There is no rule that profitable businesses cant do social work.
Rohit asked, How to approach a VC and find right VC?
Amit Grover answers, Rohit - you should take part in networking events organized by TIE, Vccircle, Headstart etc. to make initial contacts. Also check out the list of registered VCs on sebi.gov.in
ksp asked, how about a eCycle renting in a radius of 3km with solar power for battery charge at depot where the bus freq. is less and with a shop for renewable energy product
Amit Grover answers, ksp - model is good but do you have the product ready. Please take the next steps from idea to product and from product to customers.
sakthi asked, hello sir i am in to textile business dealing ladies segment sarees,salwars,tops etc having good reputed customers and still expecting good business whether diversified is good or doing same segment is good,visit my website www.mayurisrees.com
Amit Grover answers, ok, great job till now. As for future, I will suggest that you diversify into new areas like online/mobile or new products to increase your revenues.
Bhushan asked, Sir, Is it necessary to have innovative ideas to become entrepreneur or innovative process/ ways to doing business would sufficient?
Amit Grover answers, Its not necessary - you can start with an existing idea. Just be true to yourself and your customers.
Yogesh asked, I m interested in starting Bank Financing Services such as Debt Syndication, PE and TEV Study. Which Industrial Segments I can target for a positve start.
Amit Grover answers, SMEs are facing a lot of trouble getting finance - if you can build a service for them, it will be great.
Raghav asked, Hi Amit. I have got a showroom for Ladies Salwars in a Mall. We are desgning and manufacturing the exclusive salwars. I would like to take my business further by offering franchises. How to start franchise?
Amit Grover answers, You can offer franchise ads in newspaper or other channels. You can also take part in franchise exhibitions. Franchising is like giving a part of yourself to others - do it with care. And initially, you should give it to only trusted partners who you believe will take care of your brand as much as you do. I also suggest you meet up with 5 businessmen who have franchised their business to understand their points of view and legal issues etc.
'Business is not done by MBA degree, but by people who love doing it'
Paurush asked, What is the biggest advantage of VC versus other sources of funding such as a bank loan, own funds, etc
Amit Grover answers, VCs take bigger risks compared to banks and they also bring in their expertise, network, contacts etc. which is valuable. Have you seen any bank manager visiting your factory after giving loan or attending board meetings or asking for progress reports of your business - but VCs do it.
a asked, I already have a company for publishing... now i want to start an IT company for website development and other small applications. Is it okay to extend my prev company to work on IT, or starting a new company is advisable.
Amit Grover answers, if your previous company culture is not favorable to new IT setup, then start a new one. Dont take baggage of old mindset people along. Bajaj Auto started making bikes with an entirely new team and left the scooters mindset behind.
Bala asked, i want to expand my LIC business , pls advice
Amit Grover answers, start visiting events and exhibitions not related to your industry - you will make new friends and expand your business outside your current comfort zone.
sachin asked, In agriculture filed what are various options (like clod storeage, vegetable process) with an ivestment of 20-30lakhs??
Amit Grover answers, there are various options as you have already highlighted. You can also look at contract farming, weather forecasting information tools, crop insurance selling, fertilizer business etc.
vivek asked, i Amit I'm into recruitment business for past 9 years, But my growth seems to have stagnated. Do you feel feel association or merger with other small recruitment consultancies is a way forward to grow
Amit Grover answers, As its a service business, and probably dependent on you as a person, future growth is limited. I suggest merger option will be good. Else, you can get into training or sales business related to your current customers.
arunav asked, i have a civil engineering consultancy firm though i have a mechanical engineering degree.Do you think it is my right choice even if it is running sucessfully till now?
Amit Grover answers, Some people dont do engg out of choice, but because parents choice - "mera beta engg banega". Go for what you like to do without feeling guilty of leaving your original degree.
amit kr asked, Hi Amit, I have 15 years of international experience in software industrty, I have some funds as well. Do you think it can be viable option to start a software development company? Do you think it is still possible to make a successful start up in this area? How much funds does one require, minimum? thanks
Amit Grover answers, Amit - if you have worked with customers and can handle project development and management, then you can do it. Create and sell - these r the key functions of an entrepreneur. Software is a large field and you can make a niche as a startup.
rasisuresh asked, hello Sir, I planned to start new IT company? Can you tel me what are the factors to consider before start?
Amit Grover answers, IT is a people driven business. If you have good people to create and sell software, then go for it.
Arun asked, I know someone who has made lot of money in technology area if I bring in the right concept. What are all the risks of getting funds from such angel invenstors.. Just remembered what I read years back that "angel" in angel investor is just a cliche. :-)
Amit Grover answers, Arun - your risk is losing your freedom, and some control, some % of your company when you bring in angel investors. If you are ok dealing with that situation, then go for it. else look for other options.
Ahmad asked, I have a produce AB Bulk Mailer.. www.abobjects.com Some companies tell me to rebrand the product under their brand name. They say that I still can generate licenses for them and they will pay, but I will loose my product name and it will not contain my information. The product is selling well. Shall rebranding help me or ruin me... Ahmad BE Comp . Sciences.. Srinagar
Amit Grover answers, What is the incremental revenue you will generate? Is it exclusive contract or you are allowed to make in ur name as well?
Yogesh asked, I have already started targeting SME's. From Where Can I get the List of Potential Clients?
Amit Grover answers, Look for details on sites like indiamart or justdial.
PP asked, Hi Amit, you are answering people 2 times, but not a single time to some of us. I want to start a Subway franchise, please advise is it good, what i need to take care of?
Amit Grover answers, PP - i am sorry i ignored you earlier. Well, as for franchise of Subway, I will advise you to meet a local franchise to know how the company treated him, to understand cost structures etc. Its a good brand but in India i dont see it having a good success.
mukesh asked, i have cyber cafe and computer h/w shop how i incrag my buss
Amit Grover answers, Have you tried marketing your business online/offline - through news papers or events etc.
mutturaj asked, we have idea where we can present it
Amit Grover answers, You can present it in various forums like TIE, headstart, or business plan competitions like Vishishth of IIT Delhi - www.edc-iitd.org.
Sunil asked, Could you suggest ways to build clientsrelationships? (Looking for projectscontracts in IT ServicesConsulting)
Amit Grover answers, Take membership of Nasscom, visit trade exhibitions, take Microsoft/Cisco partnerships to build your brand, list yourself on directories like indiamart, blog abt ur expertise areas, join linkedin groups relevant to your business and comment there - these are some ways that I can suggest.
vikky asked, Hi Amit, I want to start a business in IT Services, how do you this business will fare in class B and C cities.
Amit Grover answers, Where are your customers?
amit grover chat asked, Things to keep in mind for playschool business?
Amit Grover answers, Location, safety of children, teacher quality and curriculum/content.
rudresh asked, Dear sir , I am doing small time online training but would like start pan-India. please guide me. thank you in advance
Amit Grover answers, why do you yourself call it small time - think big only then you can get bigger!
pijush asked, Sir, I want to establish a good resturant. How much initial investment do I require? What are the precautions do I need to take?
Amit Grover answers, Investment can range from thousands to crores - make a choice of cuisine, location, pricing, ambience and all the best.
Anurag asked, Gud after noon sir, after completing CA, I m into practice but I want to be an enterprenuer, which type of business should I start?
Amit Grover answers, Any business that does justice to your passion. Technology, education, healthcare etc. are all having opportunities for you.
kunjal asked, hi amit, we have developed one company ( Growing stage) and one of our partners is not regular and not working at all.....what should be my approach after expaining him number of time ....
Amit Grover answers, Kunjal - if he is not adding any value, then buy him out. Dont carry dead weight.
mugil123 asked, Hello Amit, How are you? I am planning to start my own software concern in near future.I am getting a different picture if i talk to budding entrepreneurs and business guys. budding entreprenerus are saying go by the heart and create the product which i believe in. business guys are freaking me out by asking who wants the product and how much money it can make etc etc. Now whom to follow? and your suggestion to me before starting a new software co. Thanks in advance
Amit Grover answers, Follow your heart - business is not done by MBA degree, but by people who love doing it.
lalu asked, How to handle attrition in the early stages of development ?
Amit Grover answers, Share employee stock options and keep communicating with your people. Also, success and growth of venture keeps all early stage people excited, so grow as fast as you can and all will be kept busy without thinking of new jobs elsewhere.
chau asked, Sir. Can please let me know prospects of Jatropha plantation?
Amit Grover answers, It was exciting few years back but there are some technical issues in scaling this kind of venture.
vinod asked, Dear Amit, can a innovative idea and broad plan be presented to angel investors...do they provide progressive support on how to implement the plan or will they merely invest funds?
Amit Grover answers, They give support after investments too, and it all depends on your relationship with your investors.
VivekJain asked, I have x amount to start my Business. Should I put x/2 in Office, Stock etc and x/2 for marketing. How important media marketing in today generation ?
Amit Grover answers, Office, stocks etc. are fixed costs that should be kept to minimum possible. Marketing should take the most money, whether as advertising or as sales people.
pankajgupta asked, i hv just left a successful job and want to be an enterperuner ..I am getting very nervous...how to deal with myself?
Amit Grover answers, Pankaj - spend 100 days to achieve small targets for your venture and keep looking at those metrics and your progress daily. All the best and welcome to the world of entrepreneurship.
shabbir asked, i have a small time printing unit in navi mumbai, i have little amt of finance to work with but the problem is marketing how to tap clients through internet
Amit Grover answers, You can use search engine optimization, SEM, social media, or put your video on youtube, put your ppt on slideshare, connect with people on linkedin etc. to do online marketing.
kapil asked, Amit - i believe i have a great idea and a execution plan in internet technologies. how can one go about pitching for funding without risking to divulge too much
Amit Grover answers, Kapil - everyone believes the same abt his idea. However, you cant get money if you keep your idea 'secret'. Go ahead, share it but dont disclose your key algorithms, client phone nos., employee contracts etc. - try keeping some of these things protected.
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