In an online chat with readers on December 21, Amit Grover, founder, Nurture Talent Academy, an institute that trains young entrepreneurs in the country addressed reader queries on how to become a successful entrepreneur, mistakes one must avoid to be successful and more.
For those who missed the live chat, here's the unedited transcript.
Amit Grover says, Good Evening Friends, I am Amit Grover, Founder of Nurture Talent Academy (www.nurturetalent.com). Welcome to the session on entrepreneurship. Hope to have a nice discussion with all of you.
dany asked, hi i am actually running a direct marketting company,last couple of yeaars not been grt to be frank,i was doing very well in 2006 to 2008.but then i m not able to come back on form what sd i do boss ?
Amit Grover answers, Dany - form is temporary, class is permanent. Work on something new, or see what area of ur direct marketing company need focus, and start resurrecting it.
Dhananjay asked, Good Afternoon, Amit. I have a startup called "BanyanTree Software Solutions", and we provide customised Software to Businesses and Industry. We have sustained since 3 yrs (2008) but I don't see any growth. Would it be wise to re-consider and go back for job-hunting?
Amit Grover answers, Dhananjay - once an entrepreneur, always an entrepreneur. You can look to grow in ur area of interest, and if that means partnering BanyanTree with someone else, or hiring someone in ur team, then do it. See what ways u can leverage what u have already build. After 100 days if u dont succeed on ur new path, then reconsider.
raguss asked, Hi Amit now i am an 43 i would like to become an entrepreneur what your advice and which field got good opportunities to start from scratch.
Amit Grover answers, Raguss - age is not a bar in entrepreneurship. Start with something of ur interest, whether it is a factory, services or technology business. Also, see if you can join another person who is like-minded and start something together.
usingh asked, Is it good Idea to go for Franchise?
Amit Grover answers, Usingh - Franchise is a low-risk business compared to starting from scratch. And it is also low-return in the same vein. I will suggest you to see your area of interest, visit few exhibitions, events related to that sector and meet people in that business. Then you should speak to franchisors (who will always try to sell u there license) and some franchisees (they can share real experiences) - then take an informed decision.
smartguy asked, hi amit pl tell the basics how to start a business
Amit Grover answers, smartguy - basics of starting a business: 1. chose an idea (spend about 100 days shortlisting ideas, chosing the right one, market research, meeting connected people etc.) 2. make a team (for creating and selling the product) 3. make a product (from idea to prototype to product - and keep talking to few customers for real feedback) 4. manage the finance (can be ur personal money, family investments, angel investors or venture capital) 5. try to sell and ask for money from customers (1 paying customer is better than 10000 fans on facebook) 6. manage the legal aspects (pvt ltd, tax registrations, licenses etc.) Other details could be idea/business specific.
kannan asked, Hi Amit I have already read article about you in Rediff Its nice my best wishes to you and it is needed now for the young entrepreneur ecosystem I am planing to start solar energy project for house holds and by hiring rooftop for power generation to house and grid at range of 1KW to 25KW decentralized which can be used even for eCar eBike to get charged I am passionate and able sense the future how the solar energy will be used I think this is the right time to kick start also a site which gives all available manufactures of solar panels and accessories with best offer and price to user and online based calculators for customized need
Amit Grover answers, thanks kannan, ur idea is good. start executing it in small ways, and manage the hurdles along the way before u scale up.
vvv asked, Amit, What are the basic rule to b a successful entr.?
Amit Grover answers, vvv - passion and energy are required to be successful, that is what differentiates a sachin tendulkar from vinod kambli.
Husain asked, Sir, 4 friends have started a social media agency called Hats-off based in Mumbai and Pune..Just recently we got on board and silicon valley geek and a Harvard Grad...But the issue we a facing is in scaling up.
Amit Grover answers, husain - scaling up means more customers and more resources required to satisfy those customers. Where is your problem lying - try to go after that.
Girish asked, Hi Amit I am 29 years and i have failed in establishing business couple of times. My friends, family and colleagues iam good at planning and very bad at executing. Could you let me know the key areas to focus while implementing any plan?
Amit Grover answers, Girish - good planning is the first step towards good execution. In my sense, a good idea should convert into a good product and it should be marketed well to get customers. Take the example, a great idea (1 lakh rs car for indian middle class) - an average product and bad marketing led to initial failure of NANO. So focus on these basics. Also, if u r not good in product development or marketing, try to get someone in ur team by sharing ur equity.
jiban asked, After graduation what should be the best option,being a entrepreneur or looking for a job and then start some small business.
Amit Grover answers, jiban - if u have an education loan, or any other liability, then do not get into entrepreneurship. do a job, and later start something of ur own. else, if u wish to start, NOW is the right time.
Illustrations by Uttam Ghosh
'Should I invest my own money or take loan from a bank?'
Ali asked, Hi This is Ali from Gulbarga I want to kknow as a start up how we should over the challenges like 1) competition 2) Marketing 3) quality of staff or work force and 4) politics and backstabbing Please be kind and give us your inputs Ali
Amit Grover answers, Ali - ur best competition is you (so work on ur personal capabilities). Remember, u r not competing with a large company - u r competing with the best employee of the large competitor. Take ownership and respond quickly to customers, this will help u in beating competitors as well as help in marketing. As for politics, staff quality - take good people (maybe freshers and train them well).
Nitin asked, Is this the right time to go in construction business-- we are planning do this think in Residential construction in Baramati Maharshtra with investment of around 2-3 cores
Amit Grover answers, Nitin - i am not aware of the ground level situation in baramati. please study the local competition and speak to few people who u think will buy real estate from you. You can also talk to bank managers who sanction real estate loans - they can give u some idea of the demand.
vimal asked, Sir I want to make quiz website based on generl awareness questions for students taking various exams like Bank PO , SSC and others , I contacted two web developers but don't know how to get cheapest one without compromise on quality ? should I go for crowd sourcing web developers or any other suggestions ,
Amit Grover answers, vimal - crowdsourcing will work if ur statement of work is clearly defined. else u should hire 1-2 people and get work done from them. Which ones to chose - i will suggest the one who is near, and easily accessible. U can ask both to start and judge their commitment after 1-2 weeks and fire 1 if it doesnt work.
vikas asked, hi, i m planning to start up a new business of service providing. should i fist get the client assurance of work or fist i should purchase the required equipment, coz investment is too high for initial purchase.
Amit Grover answers, vikas - u should speak to ur customers, to get some projects in advance or even if to understand their interest. If lead time in procuring equipments is very high, only then u shud place the order for it.
golu asked, how to check feasibility of our idea?
Amit Grover answers, golu - feasibility maybe technical or commercial - some ideas are not feasible at the stage of prototype (for example - population reduction) and some ideas are not commercially feasible (for example - poverty eradication). There are also some ideas which are feasible only at large volumes - for example, a 10 Rs cold drink or 1 lakhs Rs car.
dio asked, hi amit my age is 28 i wanna start spices door delivery business.. how i can make it success?
Amit Grover answers, dio - start doing the right things, look at customer requirements, manage ur inventory, keep ur costs low, motivate ur team, scale rapidly and it will be a sure-shot success.
inspiret asked, sir dealing in computer hardware bussiness kindly share some tips to in crease sale in local market and how to target big as there is a crisis of man power in small city
Amit Grover answers, inspiret - there is no dearth of manpower - enough Indians are unemployed - u can hire freshers and train them for 1-2 months and they will be a great addition to ur company. As for marketing, I suggest u go after 5-10 large customers in ur city and offer them personalised services or low-cost or what they need - and sign them up for the long term. Once these customers give u steady business, u can use local media like newspapers, just dial etc. to generate more leads.
kap asked, Hello Amit!! Good Eve.. I am starting an IT company whch will serve only for 1 technology, what wuld be the best way to get the database of client and pls let me know how to make it visible. thanks, kapoor
Amit Grover answers, Nasscom events and programs are good for IT companies - u can take part in some and network for generating leads. U can also visit relevant industry exhibitions, events, forums to generate leads for ur business. Dont go for buying any database of clients, build ur own. U can also write a blog, make a linkedin profile and engage in groups to build credibility for ur business.
Danish asked, Hi Sir, i have started a deals and discount site, also introducing e-commerce based on Cash on Delivery Model, please let me how do i market and advertise my site as initially it is not possible to spend hugely on advertisement with my little investment?
Amit Grover answers, Danish - u can use social media, affiliate marketing, seo etc. this is what large businesses like Flipkart did when they started.
venu asked, hi what would be the minimum investment to start a business
Amit Grover answers, venu - if u have a laptop and know coding, then u can start a website business with Rs 1000 as well. Else, investment amount varies and depends on the type of business and revenue/expenses.
riteshsangwan asked, Hello sir What one has to do to start a business while still in college and is it really possible. We are in our 3rd year B.tech and we want to start a website. Please tell us something about challenges to start the website
Amit Grover answers, 1. domain name - 500-1000 rs 2. hosting - 1000 rs 3. marketing - free 4. manpower - hire interns or freshers 5. office - ur hostel room 6. internet - free 7. others - based on ur business I dont see a challenge in starting a website related business in college. Maybe ur professors will not like that u r ignoring studies to start a business, but, frankly - do u care abt them?
mubarak asked, What is the diference between CEO, Chairman, Founder, Director in companies. Which designation one has to give for a person who starts the company. Which is the highest post in a company
Amit Grover answers, Mubarak - u can give urself any designation when u start. In large companies, Chairman is the head of Board of Directors, CEO is the employee who executes the plans and strategy of the Board, Founder is the initial shareholder of the firm, and Director is the representative of shareholders.
Navin asked, Hello Amit, could you pls tell me is it better to invest own money and start my business or take loan from bank to start bigger business?
Amit Grover answers, Navin - it is always better to start with ur own money, but if u need more money than u have, then banks or angel investors are a good option rather than mortgaging ur property.
kumar asked, Sir, As an engineering Company pvt ltd, new company for founder which designation i have to give for myself. I have also have two partners & the required designations i have to give for them.
Amit Grover answers, kumar - designation does not matter. U can give any designation, just make it fair for urself and ur partners.
sri asked, how to start trading business mainly to import goods from china
Amit Grover answers, sri - which goods - is there a market for these goods? who is the customer - find them, and start the trading business.
enter asked, Amit can an NGO be termed as a venture? What kind of venture funding is available for starting an NGO?
Amit Grover answers, NGOs are funded by large investors like Bill Gates, Michael Dell, Azim Premji, Warren Buffett - u need to show the social impact ur venture will create for the society.
Kiran asked, Hi Amit, I am Kiran from Bangalore and right now I am in the software industry working for someone else. I am still 27 and have no liabilities. Right now I am working towards accumulating a huge corpus to spend towards constructing a asset generating real estate. My plan is to be financially free by 32-35. Now, let me be frank. I am not liking working under someone. It is just that I am wasting my talent. But even though I am 27, I am not sure what I really love to do. I like trekking and value investing in stock markets and love to read philosophy. How can I get to know about what I truly love so that I do not have to work again? Are there any psychology related tests or hynotherapy etc to determine what I truly love?
Amit Grover answers, Kiran - i wish there were something to determine what a person should do. Then we will have the child's future decided on the day he/she was born. I suggest that u work in 2-3 different companies - startup, large firms, related/unrelated to ur qualification and keep discovering ur passion for the long term. U can also use weekends to learn and try new things partime.
sandeep asked, hi Amit, how r you my question is i am doing MBa in finance but rather doing job after mba i am planning to do business like medical shop what exactly procedure and can i get drug license or hire drug license
Amit Grover answers, sandeep - for getting license, one of the owner needs to have a Pharmacy qualification. Also, u shud speak to a nearby medical shop owner to get specific inputs and challenges faced in medicine retail. U can also work partime in related business to learn specifics of this business.
dfdfdaw asked, Mining Business: In orissa, guys are millionares by mining business. What are the key areas in mining where we can venture into. 1. What is the approximate expenditure 2. What are the key obstalces and issues 3. What are the key areas that are sustainable
Amit Grover answers, dont go after a business because someone is a millionaire by doing it. Go after a business u r passionate about. Will u write software because Bill Gates did? As for mining, getting a license is key. After that, u can hire people who understand mining, and install equipments for excavation. Next step would be to sell the minerals.
'You can start a small retail shop within Rs 5-10 lakhs'
Nath asked, Hi Amit, I wantd to start a BPO with call center in mind to begin with. to run a callcenter one should have osp licence for which prerequisite is to be Pvt Ltd company. What is the Total cost to be PVT ltd company. Is there any govt loan available in India for small scale industries with low interest? How to repay the loan if anyhow we go to loss?
Amit Grover answers, Nath - for pvt ltd, the expenses come to about 15000 - 25000 rs. Govt runs CGTMSE schemes through public banks, SIDBI schemes etc are there for small scale industries. if loan goes bad, then u can go for debt restructuring of worst case BIFR.
sree asked, dear amit i am very interested in starting a school. how should i plan my finances. in our place we already have 15 schools including 3 corporate schools. what are the factors i should be looking what permissions i should get from government and what will be its cost plz guide me.
Amit Grover answers, Sree - the biggest cost in a school is land and infrastructure. This will be followed by investment in marketing, teachers, licenses and other running expenses. U can earn revenues by tuition fees, selling dress, books or franchising etc. U should download the annual report of some public listed companies like Treehouse to understand this more in detail.
max asked, hi i am running a education business giving vocational training to under graduates and graduate in computerised accounting and communication skills, we want to increase our fees by 20% from current amount. Is this the right time to do so?
Amit Grover answers, Max - it will depend on ur history, brand and competition. I cant say yes or no.
mukesh asked, Hi Amit, what are the legal things one should know when starting a private ltd company
Amit Grover answers, 1. ur company name cannot be similar to any other pvt ltd company 2. articles and memorandum should clearly state the type of business. 3. need to have paperwork like PAN card, shops and establishment license, service tax/VAT registrations etc. in place. 4. if u r exporting, then u need to have an import/export license.
ram_qns asked, Hi Amit, i've been doing apps for mobile devices, now planning for my own concern and make it as a Mobile App Solution provider. Please share your thoughts on how i go about it.
Amit Grover answers, ram - mobile apps is a large space, but the problem is very few app developers make money. 1% of apps are paid, rest are free. So, work on ur revenue model - based on app sales, advtg or virtual goods. Try to get 1-2 customers for ur business and then expand into other areas.
IMPERIAL asked, I wanted to start an retail shop which consist of medical, FMCG retail etc. I wanted to know how much capital etc? What abt online business what is the profit idea behind online business ? How does import export business let say u want to import emulsion paint, flooring oxide adhesive to foreign countriees
Amit Grover answers, Imperial - u have too many business ideas in mind - focus on 1 or 2 for next 100 days. As for investment, a small retail shop can be started with 5-10 lakhs Rs - to be invested in land/infra/inventory/manpower etc.
venugopal asked, I am in marketing of cnc machines and wants to put 10 lakhs in business and balance in loan and now I want to leave my job at the age of 55 and start business is it right thing to venture at this age .
Amit Grover answers, Venugopal - age is never a criteria in business. However, u should be aware of the risks. I suggest u to meet 5-10 customers and understand their requirements and then start.
dfdfdaw asked, Few queries regarding online sales: 1. Where do these guys get the stocks so as to sell it at such discounted rates - Yebhi, letsbuy etc. -at sometimes 40% discounts 2. Do these guys keep stocks or order as required(once order is placed)...Even if they keep one or two, that would be massive amount to invest.. 3. Can you help in better model if any for low cost investment
Amit Grover answers, 1. they have a procurement department which keeps negotiating with vendors for stocks. 2. they stock some fast selling items and rest they ask vendors to ship on a regular basis.
Sushil asked, Hi Amit. Very Good Evening. I am Planning to start a Business of Custom Clearance. Though i dont have my own license. I will be doing it with my friend, cuz he has. I will be looking Importers. How do i approach them and let them trust on us because they must be doing it from other vendor. First way is of face value through personal contacts. What could be the other ways??? Thank you
Amit Grover answers, sushil - u can attend events related to that business, list urself in Import-export directories and write personally to all ur potential customers - if they have a fight with ur competitors, they will come to you.
anchit_sood asked, hello sir, we being students see a lot of business plans that amaze us. but the thing is that we are not able to zero it to that one business idea that i think i would be able to carry. like eg i want to start my own restraunt but the obstacles are capital and no one in my family has done business of this sort. also should we go for jobs right now and then mba or what should i do? thank you.
Amit Grover answers, anchit - dhirubhai ambani's father hadnt started reliance. just go for what u feel is right - but execution is key. u wont love it until u do it.
sohrab asked, Hi Amit.. this is pointed question.. If I have a business plan that requires Rupees $ crores over a period of next 12 months.. largely for WIP requirements... but have no operations today.. should I approach angel investors or VC's.. also would I be required to invest as well... a token investment, say INR 5 lakhs (I wouldnt have more).. and lastly, would I be allowed to draw a salary, say Rs 75,000 per month over the course of that 12 months... I do realize my venture's valuation will be hit if I do that, but I want to know whether it is a possibility at all?
Amit Grover answers, Sohrab - angels are a better bet when u r starting a venture. VCs can come in at a later stage. U can start approaching both angels and VCs to get a better idea of their expectations and learn personally. As for salary for entrepreneurs, it depends on ur negotiations with the investors but yes it is possible.
GM asked, HI Amit, Is the lower cost is the only point where any Indian IT (Software/hardware) product can sustain against big guys?
Amit Grover answers, GM - no, cost is not the only criteria. Service is a major reason why people switch. Also, in India, if u manage ego of a customer, then he can buy from u at a higher cost also!
Nilesh asked, what is the future of MLM company in India??? I want to start parttime business with MLM company
Amit Grover answers, nilesh - the future is bad, as most of them have cheated. Look for better opportunities, create a product and sell - satisfy ur customers.
palahanmireddy asked, Is there income source via facebook and twitter?
Amit Grover answers, yes - u can create brand pages, generate leads, make apps and sell them etc.
ram asked, Hi! Amit this is RAM from Bhubaneswar. I am planning to start a fresh business in IT education in Bhubaneswar. Whereever Bhubaneswar is crowded with IT institutes. In such case what is your suggestion?
Amit Grover answers, ram - speak to few customers and ask them what they need. is it IT training or something better can be done?
cldsdp asked, Hi Amit, We are a Terchnology start up ( about 4 months old). We are looking for Investors to our company and when we meet investors, they always ask for Customers, Revenue, Proof of concept. What methods/tips should we adopt to get to people who might invest on a concept/idea first, so that we have funds to build prototype, study market and get customers
Amit Grover answers, you are meeting the wrong investors at a wrong stage of your business. u should start with small money, make a small prototype, ask for small investments - then repeat this cycle to grow to a level where u can approach the large venture capitalists. Alternatively, take part in business plan competitions - most of them offer 1-2 lakhs prize money, mentoring etc. U can also take an advance from few customers to build a product and give them heavy discounts for using it.
Sushant asked, Hi Amit, my age is 34 and m electronics engineer with 8 yrs of exp...i want to start business other than electronics or technical thing..could you please suggest me any business with low investment
Amit Grover answers, no sushant - u should come up with ur own ideas based on ur passion. nowadays, there are big opportunities in education, healthcare, technology - u just need to keep ur eyes and ears open.
Taher Mandiwala asked, Hi Amit, I am Taher from Pune, I with my team of around 4 more people have started an Social Media Company just a month back we all have good Expertise in the same field, but we are having lots of difficulties in getting Clients.We have got many opportunities to meet good potential clients, even they seem to be quite convinced with our services & our presentation but for some reason all of them keep delaying the confirmation with some excuse. I want some Guidance as to what can be done to get a quick confirmation, shall we have some tact to convince the client & get a confirmation right on or is it that it usually takes that long to get a confirmation?
Amit Grover answers, taher - there are over 100 social media agencies so u need to create a differentiation. u can do 1-2 projects for free to have tesimonials and use them as a refernence for next clients. also, offer 1-2 services at a low cost and then increase ur services and charge extra like cafe coffee day charges extra for cream, ice-cream, toppings etc.
BasilLifecare asked, We are looking for second of fudning for our Wellness & Healthcare company. What all points we should concider before approaching VC.
Amit Grover answers, have an answer to following: 1. how much money u need? 2. what will u do with that? 3. who are the team members? why r they the best? 4. how fast this business can grow and to what revenues? 5. what is the exit strategy? also, be prepared with all documents, paperwork etc. for due diligence.
kannan asked, Amit: Do we have any site for Startup with domain clasiffication and their needs and funding and facilitation centre data, in zone wise, can it be be wise idea to start one such to support and give visibility to startup and investor and also site displaying product of starups with virtual mall model where they can customize their shop Also site with zone wise events and platforms for startup and the date details of sector too
Amit Grover answers, meraevents has event listing, yourstory has startups listing, vccircle has investors news plus there are many more related to startups.
bhagwan asked, Hi amit - Is it compulsary to do the same business which we have shown in the AOA, MOA. Can we start some other business which we don't have indicated in the AOA, MOA of a pvt ltd company
Amit Grover answers, bhagwan - u need to amend the articles for doing new business.
pi asked, what would be a best business, if i plan to invest twenty twenty five thousand. basically i am thinking to quit job and start something of my own without maor risk involved.
Amit Grover answers, pi - whatever small amount u invest, do it in a business u r passionate abt.
bhagwan asked, Which will be the most important criteria for the founder of a business to suceed ( a) Money ( B ) Qualification ( C ) Experience ( d) Knowledge, skills
Amit Grover answers, Knowledge/skills are the most important - they help generate money and others.
Entrepreneur asked, Hey Amit ! how to think of a good business name ? because i dont want to chose a business name just bcuz of domain availability.. please suggest some good tips, what are the suffix or prefix to use in an educational sector business/service for academic institutions ..
Amit Grover answers, EDU is a good prefix/suffix for education related business.
Ankur asked, Hi Amit - I am a software professional and have more than 6 years of exp in that. My father is in construction line and done OK in it. I have also been involved with him on his site work but could not participate actively due to office commitments. I have a strong desire to take my father's business to next level but my father is not convinced. I see a lot of opportunities in construction business. Pleae prvoide your thoughts on this?
Amit Grover answers, ankur - u shud convince ur father and do it. ask him to give u small projects to execute and show him the worth that u can bring.
sharma asked, Hi Amit - My Business Partner is unemployed for the past 2 yrs, but has a burning desire to succeed in business with me . Can i allow him as my partner.
Amit Grover answers, yes, legally there is no problem
sharma asked, how to select a business. Even though i had a deep desire for entrepreneurship, still i had a fear, anxiety. How to develop myself & get confidence for a succesful entrepreneur
Amit Grover answers, take small steps, and go beyond ur comfort zones.
tty asked, Hi Amit, I have been working in a niche domain of mobile wallets (banking the unbanked) for the past few years. I have already started my own company a few months ago to get into this space on my own. Apart from this industry being in its infancy and largely untapped, I personally feel it would be fantastic for the Indian economy and am keen to ride the wave. How would I go about generating interest from leading thinkers in India about this?
Amit Grover answers, do some PR, attend industry events and be a speaker in them. share ur thoughts via linkedin. thats how u can build a personal brand.
Comment
article