Journey from an Ideato a

Sustainable Business

The Steps, Challenges and some Quick Tips

The Steps

Idea Evaluation

Idea Incubation/Prototyping

Initial Market

Feedback

Scaling up

5 M test Incubators

Early Stage Funds / Crowd - Funding

PE/VC Funds

WHAT MAKES BUSINESS IN BUSINESS PLAN

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• Movement• Marketability• Management• Monetisation• Mitigation

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Movement

Ability of the idea/business to attract consumers and scale up reach

• Does the service/concept holds ‘real value’ for its targeted consumers• Will it ‘Lead’ the markets for tomorrow and holds the potential for

creating disruption• Will it attract even the competition to look up at it• Will it attract other vendors to create an ecosystem around it

We don’t want USD 0 Million ideas……we want USD 0 Billion ideas

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Movement

• Versatility and ease of usage• Innovative form factor• Moving the ecosystem

• ‘Viral’ potential • Enabling other value-adds

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Movement

• Emerging middle class with no time to shop for kids• Brands willing to offer support

• Travel industry growing by huge leaps• Convenience of use

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Marketability

An idea may move people…but will people really give their money to take it

• Is the timing right?• Can existing distribution networks support the product/idea• Is the product a ‘Me-Too’ or just small incremental difference from existing

options• Product demand estimates / benchmarks• Who are your consumers – and do they have wherewithal to buy the

service?• Has the idea being sample marketed?

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Management

We invest in people…and its people who make or break a business

• Domain specific experience• Complementary team skills• Experience of mentors, if any• Other associations – such as working partners• Right resource planning

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Monetisation

It’s all about the money, honey!

• Initial projections – careful analysis of expenses and revenues – for one year

• What are your revenue streams• Value – Cost analysis• Usage of Funds

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Monetisation Myths

Some ‘Danger Signs’ you should look at

• We will get Million eyeballs – and hence Million dollars in advertising revenue

• The Founders will take salaries home• We will grow 200% by year 2• Our break even will be achieved in less than a year• We will exit in year 4

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Mitigation

Plan without risk-analysis is the biggest Risk!

• What risks do you foresee – and how do you foresee mitigating them• How well-equipped are you…or will need to be…when risks arise• Pessimistic market projections – worst case scenario

THE STATE OF START-UP FUNDING

• Have an idea• Investigate the market• Creating a prototype• Demo of product &

services

• Solid business plan• Interested clients• Some initial sales• Key Management in

place

Stages of InvestmentWhere does one invests

• Success in market place• Hiring sales,

marketing & operations team• Office &

manufacturing space• Purchase of further

equipments

• Growing quickly• New production

facilities• Invest in marketing• Product development• Fire fighting, keeping

the wheels on

Stages of Investment…Where does one invests

FUNDINGStart

Initial Screen•Management

Team• Business Plan

Due Diligence• Management• Marketing• Production• Financials

Negotiation• Valuation• Ownership• Control• Management• Legal Contract

Opportunity Introduction• Presentation• Executive

summary• Forecasts

Evaluation Process

Thank you !

Satish KatariaConsultant - DARECybermedia India LimitedMumbaisatishk@cybermedia.co.in