1. Some Observations on Entrepreneurship Prof Parameshwar P. Iyer Indian Institute of Science Bangalore piyer@mgmt.iisc.ernet.in

2. Outline Who is an Entrepreneur? Risks and Execution Need for Focus Revenue, Profits, Returns Technology is the means to an End Business side, Opportunity, Customer Power of clear Marketing Strategy Power of Teamwork and Networking

3. Who is an Entrepreneur? Assumes the risk of a business, and is rewarded with its ownership Take calculated risks, and create success Money is a result, not the sole objective Is an Entrepreneur born, or is she made? IIT KGP School of Entrepreneurship? Need burning desire and passion to succeed

4. Risks and Execution Have to take calculated risks Money is the result of Entrepreneurship; not the sole objective By itself, the Power of Ideas is not enough Require various other ingredients to convert the “powerful idea” into a “profitable venture” Age no bar: Dr Krishnaswamy founded Aravind Eye Care at the ripe old age of 67

5. Need for Focus Create the core value first, based on your core competency Be clear about your strategy; Normandy Beach head model? Glocalization – think “globally” but act “locally” Establish credibility and confidence at smaller scales, then compete globally

6. Revenue, Profits, Returns VC looks for returning invested money multiplied several times over; X-> 10X VC really not into “venturing”; want to minimize risks; look for high level returns Financials and economic viablility are absolutely important Build a reasonable level of competence” Income Statement; Balance Sheet; and Cash Flow Statement

7. Technology is the means to an End Most start ups are produced by “technologists”; go technology “out”; most often, technological “solutions” trying to find “problems”; inverted model E.g. Interactive IP System to replace Video Conferencing; identify what is the level of interaction, and customer benefits Don’t think technology; think opportunity; Understand the need(s) of the customer; how to solve problem(s); articulate vision; articulate benefits

8. Business side, Opportunity, Customer What does your business/ solution do for whom? How much is it worth? Who is going to pay for it? Business Model Revenue Model Internet is “free”: where is the revenue going to come from? Would you (as entrepreneur) pay to buy your own product/ process/ service?

9. Power of clear Marketing Strategy Need clear “real” marketing strategy This is the “make or break” scenario Needs analysis of “customer” Very strong marketing needed Use all your real world “contacts and influences” Get that “first real paying customer” Try marketing inwards into your organization

10. Power of Teamwork and Networking Need a well balanced team Typically, one “expert” each in Technology, Marketing, and Finance Successful entrepreneurs always have “powerful networks” Use the power of your fellow Alumni, and the reach of your Alma Mater Participative management principles to build team work