Unit 1 for Start up and New Venture Management-Prof. Priyanka Darekar

1. 208 - Start Up and New Venture
Management
Generic Elective – University
Level
UNIT 1
Being an Entrepreneur

5. Flintobox
 Chennai based start-up
 Need – best way to nurture kids creativity and curiosity
 Discovery boxes for age 1-12years
 Create, play, read, explore and such 12 critical areas of
development
 $ 1million in series A round led by Ashwin Chadha, GSF
Global, Globevestor, AECAL, Mauj Mobile in August 2016
 4 lakh customer
 40% in metros, 60 in tier 2 cities,
 Aspiration level – 60,000 boxes per month
 Global aspirations

6. -The entrepreneur, Profile analysis, behavior
and motivations, Lean Start –up
-The entrepreneurial ecosystem, Entrepreneurs
and strategic decisions -Sustainability of
Entrepreneurship: Dilemmas of an entrepreneur
for success;
-Handling doubts on survival of business,
Struggles-Causes of failure–Product/ market,
financing, managerial-Resilience.
-Legal Fundamentals - When, how and where
to incorporate.
CONTENTS:

7. ENTREPRENUER:
 The term entrepreneur is derived from the French word ‘entreprendre’
which means ‘to undertake’.
 It means the person who undertakes the risk of the new enterprise.
 In the 16th century the Frenchman who organized and led military
expeditions were referred as Entrepreneurs.
 According to Richard Cotillion: An entrepreneur is a person who buys factor
services at certain prices with a view to selling its product at uncertain
price.
 According to International Labor Organization (ILO): Entrepreneurs as
those people who have the ability to see and evaluate business
opportunities, together with the necessary resources to take advantage of
them and to initiate appropriate action to ensure success

8. ENTREPRENUER:
 According to Peter F. Drucker: An entrepreneur is one who
always searches for change, responds to it and exploits it as an
opportunity. Innovation is the specific tool of entrepreneurs, that
means by which they exploit change as an opportunity for a
different business or service
 Venkataraman (1997) defines entrepreneurship research as an
attempt to understand how opportunities aimed at bringing into
existence future goods and services are discovered, created
and exploited by whom and to what effect. Morris (1998) asserts
that entrepreneurship is the process through which individuals
and teams create value by bringing together unique packages
of resource-inputs to exploit opportunities in the environment.

9. DEFINITIONS…
 Morrison (1998) defines entrepreneurship in terms of two key concepts of
innovation and creativity. Entrepreneurship is thus defined as the process of doing
something new (creative) and something different (Innovative) for the purpose of
creating wealth for the individual and adding value for the society. Creativity and
innovation have been used complimentarily in the field of entrepreneurship.
 Another definition comes from Drucker (1985), as cited in Landstrom (2005), who
sees Entrepreneurship as an act of innovation that involves endowing the existing
resources with new wealth producing capacity. In fact, this definition negates
creativity as an entrepreneurial act
 From these definitions, we can develop our operational definition of
entrepreneurship as constituting people who have the ability to see and evaluate
business opportunities, gather the necessary resources, take advantage of them
and initiate appropriate action to ensure success.

10. Ritesh Agarwal
Ritesh Agarwal’s entrepreneurial
journey is one of the most successful
entrepreneur stories in India.
After dropping out of college, he
launched his first start-up Oravel
Stays, which was a budget hotel chain
that provided B&B.
And that elevated to OYO rooms from
when he realized no other service
offered a room for a budget traveler.
Begun with only 11 rooms in a
Gurgaon hotel, OYO rooms is now a
hub for elite hotel stays with 65000
rooms in about 5500 properties across
India.
Kunal Shah
Free charge, the popular platform which
revolutionized the online recharge
framework with three-step revives
alongside giving offers of same esteem
was the brainchild of Kunal Shah and
Sandeep Tandon. The organization was
established in 2010 and was as
of late procured by Snap deal

11. Azhar Iqbal
Azhar Iqbal dropped out in his 4th year of
college(seventh semester). He made news by
introducing InShorts the one and only app
which cuts to the chase delivering only vital
details in a news to all those lazy people and
even to those who don’t have enough to go
through all of them.
The app makes sure that each news is
conveyed in less than 60 words. Got a minute
to spare? Keep up with the world with news in
shorts. It started as a Facebook page and now
it has made its share of fame so well that it
received INR25 Cr in
funding three months back.
Vijay Shekhar Sharma
After passing out from college, he
started his first company- ‘XS
Communications’, a college-based
startup that created Content
Management Systems, which was
being used by major publications
including The Indian Express. While
trying to set up (One97
Communications) Paytm. Vijay’s
investors were not confident about the
idea of a mobile-first consumer service
that would cater to the masses, while
India’s telecom infrastructure was
improving in 2010. He personally put
$2 Mn at stake to finally launch
the brand. The rest, as they say, is
history.

12. Profile Analysis:
 Factor 1: Goal orientation – tendencies toward creativity and innovation, degree of determination in
reaching goals, and personal perception as to overall handling of work situations.
 Factor 2: Leadership – aptitudes toward management and leadership.
 Factor 3: Adaptability – ability to perceive environmental change and adaptability.
 Factor 4: Need for achievement – the desire for fame, success and social affirmation and respect
from others.
 Factor 5: Need for self-empowerment – the desire to realize oneself through one’s job which, apart
from any economic goals, must be enjoyable, satisfying and interesting.
 Factor 6: Innovation – curiosity for what is new.
 Factor 7: Flexibility – tendency to reorient one’s goals according to external situation.
 Factor 8: Autonomy – necessity of having one’s own independent space to make decisions and
choices

13. Behavior:
 Need to achieve (goals should achieve)
 Independence (start business their own)
 Risk bearing (ready to face uncertainty)
 Locus of control (governing and shaping the goals with high control)
 Determination (working sincerely on goal achieving)
 Positive self-concept (thinking positive and analyze anything by SWOT analysis)
 Ability to find and explore opportunities (finding/grab opportunities)
 Hope success (feeling success in each and every step they move no failure)
 Flexibility (measuring pros and cons of decision and tend to change if situation demands)
 Analytical ability of mind (unaffected by personal likes and dislikes)
 Sense of efficacy (oriented always to goals no deviation or diversion by external influence

14. Behavior:
 Openness to feedback and learning from experience (ready to accept feedback)
 Confronting uncertainty (they are always optimistic, they take odd as the opportunity)
 Interpersonal skills (they like dealing with people at all levels)
 Need to influence others (they influence the others by their goals and their procedures/convince others)
 Stress takers (ready to work for long hours with full energy)
 Time orientation (they will stick on to the time, time is important)
 Innovators (they will introduce new products and services)
 Business communication skill (they must have good communication to lead market)
 Telescopic ability (they will think every activity in microscope)
 Leadership (they will act as leaders to lead business)
 Business planning (they will plan present and future course of action)
 Decision making (they have quick decision making ability)
 Ability to mobilize resources (they will mobilize 6-M’s: Man, Money, Machinery, Market and Method)
 Self-confidence (they must have self-confidence about their goal achievement)

15. Nandan Reddy
 Nandan Reddy along with his mate
Sriharsha Majety, changed the way India
eats.
 They both started with Bundle, a logistics
aggregator, which connected SMEs to
courier service providers. A year later,
when the business was doing pretty well,
they shifted their focus to the food service
industry when Swiggy, the food delivery
app rolled out into reality. Since its
inception, Swiggy has rapidly grown to
become a leader in the Indian food
delivery sector by consistently shrinking
delivery timelines and improving customer
experience
Phanindra Sama
RedBus has made booking bus tickets
way easier than before and it all started
when its founder, Phanindra Sama could
not go home for Diwali due to the
notorious Bangalore Traffic. He realized
some key issues with the then-existing
bus model and found internet as the best
medium for solving these issues by
putting together information on a platform
where customers could access it easily
and take better decisions. By April 2014
RedBus launched hotel booking powered
by Ibibo Group’s followed by redbus
teaming up with Uber.

17.  About TerraCycle
 TerraCycle is an innovative recycling company that has become a global
leader in recycling typically hard-to-recycle waste
 TerraCycle was founded in 2001 by Tom Szaky, then a student at
Princeton University, on a mission towards Eliminating the Idea of Waste®.
From these humble beginnings TerraCycle has grown into the global
leader in collecting and repurposing hard-to-recycle waste: operating in
over 20 countries, engaging over 60 million people, and recycling billions
of pieces of waste through various innovative platforms.

29. Elements of Entrepreneurial
Ecosystem:
 Individual’s entrepreneurial orientation often linked to
supportive entrepreneurial ecosystem (Mack &
Mayer 2015)
 Strategic resources are essential for entrepreneurs to
exploit entrepreneurial opportunities (Klein et al.
2012)
 Problem is that these strategic resources fall beyond
the control of entrepreneurs
 Need for an enabling entrepreneurial ecosystem?

30. Failure of Entrepreneurs:
 Management mistakes
 Lack of experience
 Poor financial control
 Weak marketing efforts
 Failure to develop a strategic plan
 Uncontrolled growth
 Poor location
 Improper inventory control
 Incorrect pricing
 Inability to make the “entrepreneurial transition”

31. Handling doubts on survival of
business:
 Know your business in depth
 Develop a solid business plan
 Manage financial resources
 Understand financial statements
 Learn to manage people effectively
 Keep in tune with yourself

32. Legal Fundamentals - When, how
and where to incorporate:
 Identifying and engaging good legal help
 Cost-effectiveness
 Attorney-client confidentiality Employment and Employee
agreements
 Employment restrictions
 Post-employment restrictions
 Trade secrets, invention assignments, copyrights, etc
 Leaving on good terms

33. Forms of Business Entity
 Corporations(companies)
 Partnerships
 Limited Liability companies, others
 Conducting business in other states, countries –
Licenses, Insurance, etc.
 Selecting and protecting a name

34. Structuring Ownership
– “Splitting the pie”
– Equity,
- Consideration,
- Vesting
– Transfer of shares
–Shareholder voting agreements
– Proprietary Information and Inventions, Employment
and non-compete agreements

35.  Forming and working with the board
–Having an independent board
–Representation in the board
–Responsibilities of the board
 Contracts and Leases
–Elements of a contract
–Oral Agreements
–General contract terms
–Remedies

36.  Sale of goods and services
 Human Resources
–Employees Vs Independent Contractors
–Employee Privacy
–Employment Agreement and Disputes
–Employment Disputes
–Liability for Employee Acts
–Putting it all in practice

37.  Operational Liabilities and Insurance
 Creditors Rights and Bankruptcy
 Venture Capital
 Intellectual Property and Cyberlaw
–Trade Secrets, Copyrights, Patents, Trademarks,
Domain Names
–Licensing Agreements and other transfers of
intellectual property

38.  Going Global
–Tax Planning
–Selecting from Representative Office, Branch and
Subsidiary
–Establishing a Legal Presence
–Hiring and Employment Overseas
–Distributors, Value-added Resellers, and Sales
Agents
–Intellectual Property, Funding, Operations

39. Buying and selling a business
–M&A
–IPO
–Forms of Business Combinations
–Stock Purchase and Sale
–Pricing Issue and forms of consideration
–Tax treatment
–Shareholder Approval, Due Diligence, Board
Approval, Fiduciary Duties

40. Going Public
–IPO process
–Restrictions
–Prospectus
–Misstatements and Liability
–Insider trading
–Post-IPO disclosures, Communications with Analysts,
Regulation