In an online chat with readers on December 14, Amit Grover, founder, Nurture Talent Academy addressed reader queries on how to be a successful entrepreneur.
For those who missed the live chat, here's the unedited transcript.
Amit Grover says, Welcome Friends, I am Amit Grover, Founder and CEO of Nurture Talent Academy
mast asked, can you suggest any start up ideas
Amit Grover answers, at 2011-12-14 15:57:25Yes, there are many start up ideas in sectors like education, healthcare, clean energy, technology, mobile etc. However, you should chose something that appeals you personally, and for which you are really passionate. Personally, I am passionate about training and education and see a huge scope given there are 10000+ colleges and over 1 crores+ professionals/entrepreneurs in India itself!
red asked, everytime i start up something new i go in full swing bt after some time even though things start gettin materialised i loose interest/ focus / strength and my hard wrk goes in vain. how to hold up the motivation and keep workin??
Amit Grover answers, Red - Motivation is a very personal thing - it is by your choice that you started your venture or was it forced upon you? If something is forced, then we lose interest. Also, if we get early success in a venture - which could be financial, customers, or society recognition, then also it keeps us motivated. I suggest you also look at expanding your team, working with positive people - this will keep you energetic all the time.
ChandraMohanSingh asked, How Entrepreneurship feeling can be ignited in anyone?
Amit Grover answers, Chandramohan - entrepreneurship is like love, we cannot force anyone to do it! Yes, it can be ignited in some minds by pull/push - pull meaning that we give them examples of really successful entrepreneurs, learnings about how people made it big or opportunity areas available for new startups. Push means people will get frustrated by their current status, lack of career growth or other reasons.
Santosh asked, Do you think Dry Fruit processing and marketing idea will . how to go abt this???
Amit Grover answers, You should check out with suppliers (the rates that you will get) and with customers (what will they pay) - then you will have an idea of how you can proceed. Also, you can check out few existing ventures like inkfruit, myntra, teesort etc. which are doing well in the t-shirt business.
vijas asked, Is it gud idea to start Software business? luk likes there are lots of start up coming up and hyd looks like of of those...Do you have any idea?how abt software testing..or Training...need your inputs
Amit Grover answers, Vijas - software is a mature and growth industry and there are ample opportunities. However, due to competition, you should chose a niche area whether in training or testing - for example, if you get into Java training, there are lot of players. But in HTML5 training, its a new and niche area. So see where you can specialise and add value.
Illustration: Dominic Xavier
'The key is to find a niche, make a good product and focus on taking it to customers profitably'
rahul asked, how can I rate my entrepreneurship skill? is there any questionnaire?
Amit Grover answers, Rahul - entrepreneurship skill has both soft (risk taking, leadership, teamwork) and hard (sales, marketing, finance, business plan)aspects to it. I am not aware of a test or rating available that can measure entrepreneurial quotient.
chssrikanth asked, can u suggest what exactly are less investment business. Which are good at revenue generation?
Amit Grover answers, Srikanth - there are lots of less investment business - for example, a HR Outsourcing firm needs just you, few contacts and a small office/laptop to start. The bigger challenge is in marketing and growing to higher scale revenues. Even websites can be made for 500 Rs these days, and you can start generating some revenue.
Pranav asked, No any bank help to startups.. fake addds they designed when u ask them loan u never get............
Amit Grover answers, Pranav - banks feel startups are a big risk, so they avoid giving loans to startups. They will go after safe projects. But there are some schemes like CGTMSE that can help entrepreneurs.
chethan asked, Instead of Re inventing the wheel..should we just take on Franchise model and start?
Amit Grover answers, Chethan - risk and rewards are correlated. If you take a franchise, you save on some risks like marketing, product development etc. but you get less share of the outcome. However, if you develop something from scratch, then the risk as well as returns are all yours.
ravi asked, I want to start cement brick industry,how to start
Amit Grover answers, Ravi - you should meet your potential customers, thats the starting point of any business. Then you can study the other factors like demand-supply gap, which location to start with, need for funding/finance etc. and how are competitors doing. In cement brick industry also, you should spend 1-2 months in understanding the situation and start with proper planning.
rrramesh2007@rediffmail.com asked, iwant start detergent powder how this market whatis mains points in this segmeant
Amit Grover answers, Ramesh - detergent powder is a stable growth category, with large players like HLL/P&G, local players like Ghadi/PSM etc. and many other small suppliers. The key is to find a niche, make a good product and focus on taking it to customers profitably.
Arun asked, I want to start with Disposable Plastic Cups, Plates and Glasses etc.. can you suggest me the potential in this industry?
Amit Grover answers, Arun - disposable cups are a mass product, the potential will depend on which area/geography you are targeting.
su asked, hai, iam working in marketing field for almost 15 years,and am fed up working any more, could you please give me some input to start something on my own with little investment
Amit Grover answers, Su - do not start something due to being fed up - it is a dangerous state of mind for becoming an entrepreneur. Spend time in the entrepreneurial ecosystem, attend events, networking programs, take part in training for startups, meet other businessmen - then go for the decision of what and where to start.
GP asked, Hi Amit? Is network marketing a safe buy? I have a friend successful in teh business, and he has proposed the business to me.
Amit Grover answers, GP - network marketing has earned a bad name for itself due to few fraud companies. Also, if you do not have a good product or service to sell to customers - then do not join any pyramid schemes. Just by appointing members below you in the tree, you cannot make money in the long term.
SUMAN asked, Dear sir iam engineer and running a small manufcturing unit suppllyinf plastic engineering products to automobile sector but i have not got returns as expected plz guide me
Amit Grover answers, Suman - you should find out what are the reasons for not getting good returns - high cost of capital, lack of marketing or pricing. Then work on 1-2 points and make it a strong point of your business.
zakir asked, hi,i started in erp solution company for education sector 1 year back but though there is need of software in schools but the response is very slow can you please tell me is there any scope for erp sw for schools
Amit Grover answers, Zakir - there is a need for software in schools, but the customer adoption has been slow. Most schools are run by non-profit trusts and are happy to just run their business as they have done for years. However, there are new - age schools with international curriculum coming up so there is an opportunity for you. Also, you should talk to all the customers who have rejected you and ask them why. That will give you good insights on next steps and remedial measures.
cj asked, hi i used to be a successful enterpreneur and was never shy of using loans to grow business but after seeing my brothers go bust due to bad loans and their family going in a turmoil i started fearing expanding debt and that has lead to my downfall in business how to get out of that state of mind.
Amit Grover answers, CJ - taking debt for expansion is not a wrong thing. Just speak to your brothers, and find out what was the real reason behind their failure.
vinay asked, i don't ve a brilliant idea but still my inner feeling is that i should do business how to start? thx
Amit Grover answers, Vinay - first step will be to start meeting some entrepreneurs, or join a small company that has recently started. You will see very closely how things work in a startup. You can also attend training sessions to learn more about specific areas of business like business plan, finance etc.
Illustration: Dominic Xavier
'Social media is a good tool to spread your word'
ARINDAM asked, Hi Amit What are the fundamentals to become a successful enterpreneur ?
Amit Grover answers, Arindam - the fundamental thing is to CREATE and SELL - if you can do these two activities, then you can be a great entrepreneur.
sats asked, Running a IT education business in a 'B' level city is quite a challenge. Retention of good, qualified staff at salaries which cannot match metro levels and compete with local mnc's is getting very very tough. So they dont stay. Whats the way out?
Amit Grover answers, Sats - is there something that stops you from going to metros for expanding your business. Or using technology to market your services to other cities? Find new areas of growth and also give challenging opportunities to your staff so they feel motivated. You can also look at innovative ways of retaining staff like Employee stock options (ESOPs)
SANJAI asked, I am an exporter facing tremendous problems due to uncertainity in Europe, can you suggest alternative ideas?
Amit Grover answers, Sanjai - Europe has been in a bad situation for over a year now. Look at new geographies like Indian domestic market or new products for Europe if you have established customer contacts.
lanka asked, Dear Sir we have started a biotech r and d and the gestation period is 3 years in this field.we would like to generate some money in same field.suggest some ideas
Amit Grover answers, Lanka - you can get into consulting, training, conduct events, write blogs etc. which are relatd to biotech industry itself.
kush asked, What is the equity given for the co-founder who has fund raising ability and has connections to venture capitalists
Amit Grover answers, Kush - "Connections to venture capitalits" has no long-term value so do not share equity. You can pay investment banking/advisory fees or % of money that the person raises for your venture.
Muruganandam asked, HI, i have 10 yrs experiance in telecom field and i have started an export company last year... slowly im getting leads and i have done some shipments to UK.. i thought of quiting the job and look after the business fulltime.. Also im afride to loose my 10L CTC and thinking of my own family members will critise me.. Kindly suggest
Amit Grover answers, Muruganandam - if you have 10 lakhs salary now, next year it will become 12-15 lakhs, and 3 years later it will become 20 lakhs, which will be even tougher for you to give up. Talk to your family, and go by what your instinct suggests. Keep some cash for family commitments, emergencies etc. but if you get into business, do it with full commitment.
sreeni asked, I have designed and developed Software solution(product) for car service centers. Currently marketing in Chennai only. I would like to know how to market it throughout India. Planning to tie up with any marketing agency who can sell it for me on profit share basis. Or let me know if you have any suggestion.
Amit Grover answers, Sreeni - if you know of any such agencies, then contact them and start marketing. I will suggest you to also approach for tie up with other partners like Maruti, Hyundai, Tata, Carnation etc.
sakshi asked, Dear Mr.amit , I want to start manufacturing ballpens ,but am weak in accounts & sales, how to move further .please advise
Amit Grover answers, Sakshi - if you are weak in some area, then start learning it. You can attend our training programs. Also, you can find a partner and ask him to join your team - he/she can take care of sales and accounts.
Arun asked, is there any organization that helps startup like how to collect stats, funding (how much and from where?), potential customer etc..?
Amit Grover answers, Yes - you can connect with local TIE chapter, attend NASSCOM events for startups or attend Nurture Talent programs.
jay asked, I have a business with a niche product. From 5 lakhs to 1.2 crores turn over the company has grown in the last three years. I know I can take it nationwide. I am looking for a large company with whom I can tieup. How do I prospect large companies with whom I can share my vision and take the business to other states of India.
Amit Grover answers, Jay - its an interesting stage of business that you are in. You should meet the owners of such large companies and propose an alliance - but before that make a list and see how both of you can benefit with the tie up. Try meeting people through references to build trust.
akhil asked, hi amit, i am an MBA student,i want to start my own e-commerce business and have done everything in regard to that. but the thing is i am not sure whether i will be able to take that much risk and the thing being i dont have any work ex?
Amit Grover answers, Ajhil - when you started bicycling or swimming, you didnt jump into the deep end directly - right? Start with small steps and move fast, make few mistakes and you will learn along the way. Experience is not a criteria for success in entrepreneurship.
Sankar asked, Amit, I am a software person with 13+ yrs,exp and started a software firm. We developed a healthcare product for practice management for US health care, and had 2 clients. We are unable to proceed further, for the marketing and upgradation, for want of Capital. What are the steps to take to solve this situation?
Amit Grover answers, Sankar - first make a business plan and find out your requirements. If you need upto 2 crores, then go to angel investors like Mumbai Angels for funding. If its more, then you should approach venture capital investors. If you wish to take a loan, then you can approach banks with a detailed project report.
mohit asked, Hi, I am planning to start pre-school. What is your take about the future of this kind of business.
Amit Grover answers, Mohit - pre-school is an evergreen business. There are large chains like Tree House that have grown fast in past few years, and there is a potential for many more to enter.
anand asked, I am into manufacturing Analytical instruments and done 10 million Indian Rupees turnover last financial year. What are the best ways to expand and how to find cheap resources
Amit Grover answers, Anand - if you can determine a channel of growth (direct sales team or distributors/partners), then go after them aggressively. I do not understand your query about cheap resources - is it money with low interest, people with low salaries???
avin asked, hi mr amit, what is ur advice for an upcoming artist who wants to market his products
Amit Grover answers, Avin - social media is a good tool to spread your word as an upcoming artist. Look at the example of "why this kolaveri di" and see how it spread virally!
sundar asked, How is the Retail market in india..Apart from starting kiarana stores, what will be other opportunities in retail industry??
Amit Grover answers, Sundar - Retail analytics, visual merchandising and branding, training of retail personnel - these are the business areas in retail.
kalra asked, for vegetable seed company start, how much money is required to earn 2lakh per month
Amit Grover answers, Kalra - it depends on your expenses.
jaydave asked, Which bank will finance your project if the enterpreneur do not have financial back up.
Amit Grover answers, Jaydave - check out the CGTMSE scheme of certain banks. Also, meet a few Bank Managers to understand their perspective and present your plans accordingly.
Raj asked, I have started up a Industrial consumable trading business and have 2 reputed companies (Both world no1) as my principles....i currently face the below issues .. 1. People - Getting qualified people is extremely difficult... even placment agencies refer people who are not good at tech sales.. 2. Have invested approx 35L in the venture.. Need more funds as business grows.. what are the finance options available
Amit Grover answers, Raj - getting good people is a big issue in many indusries. I suggest you to give a chance to freshers, train them and share ESOPs with your team. As for funding, make a good business plan and start approaching right investors.
Prasad asked, Hi Amit, I am plannign for business in Home Care service for elderly and new born babies. I have business plan but not able to finalize costing model, how can I go aboit it?
Amit Grover answers, Prasad - cut your costing into variable costs (per unit basis) and fixed costs (monthly expense that will be there even if you do not get any customers). This will give you an idea of your costings. Also, check out the annual reports of some large companies to get a range of expenses that happen in business.
Illustration: Dominic Xavier
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