What is the tag cloud on your blog, Mr. Entrepreneur?

April 28th, 2010

“Startup”, “Entrepreneurship”, “Venture Capital”, “Social Media”, “twitter”, “Facebook”. All the wrong kind of tags are mightily sized on the blog of an entrepreneur who is not building a product around these tags.

An entrepreneur’s job is to build a product, do sales/marketing, evangelize the same and acquire customers! Simple. However, most of the times the evangelism is around entrepreneurship, startup culture, raising money, etc. Instead, the talk should be around the code you write, the product development you do, the travel to the customers and the mechanics surrounding the business.

Either the tags are incorrect or the right kind of evangelism is missing.

So, if you are a startup entrepreneur, don’t talk about startups, entrepreneurship, but talk about product, technology, sales/marketing, user experience, how you scale, how you fix bugs, how you prioritize your tasks, your hardware/software architecture, etc. Those should be the mightiest tags in the tag cloud. The former is implied. It is okay to talk about and evangelize things un-related to your business — but that should be 20% of the chatter.

Here are three tag clouds from the blogs of entrepreneurs who I know for sure are working in areas unrelated to the tag sizes. Guess what is what:

Social Media

Do this little test:

  1. Go to a tag cloud generator like wordle/tagcrowd
  2. Point it to your feed
  3. Analyze the results
  4. What are the dominating words? If the words related to your technology, product, domain are not dominating the tag cloud, then you need to rethink
  5. If you are good in step #4 then analyze your competition’s tag cloud — if they are caught napping, then you are doing your job well.

Information Technology Security for SMB: The big opportunity for startups in India

April 5th, 2010

This post resulted while researching the size and opportunity for the IT security market in India.

Only in last few years, Indian Small & Medium Business (SMB or MSME), have started doing a few of the following:

  • Going online & and maybe having a website
  • Accepting card-based transactions
  • Implementing a cross-office/cross-vendor supply chain or some other rudimentary automation for sales/marketing or customer service
  • Using collaboration tools for inter-company, intra-office communication & data sharing

These are the businesses who have been using a desktop/PC for the last so many years and may have been using 1 or many windows-based applications for accounting, billing, point-of-sale automation, connecting to branch-office over private network, etc.

There is a impending run up in the growth numbers of the SMB sector in India. In the concluded budget speech, the Finance Minister doled out sops Share of MSME in India's GDPfor the fledgling sector including the government’s plan to purchase Rs. 1,60,000 crore worth goods from SMBs in 2010-11, which is 400% up from the last year’s paltry Rs. 40,000 crore. Comparing this to the developed nations the number is less than 10% of all the purchases and the balance lies in the favor of large enterprises. Due to the growth in this sector, the SMBs share in the India’s GDP is pegged at 10% in the closed financial year.

Based on research estimates, the overall IT spend is being pegged at USD $4.5 billion of which IT security spend would be at $450 million (Rs. 1900 crore); 10% of the overall IT budget.  The Indian IT security spend was around Rs. 210 crore in 2006-07 and would surge to a healthy Rs. 1900 crore as stated above. The gut feel is that the spend would be higher than 10% of the overall IT budget due to investments in fundamental infrastructure, consulting, software etc.  for the first time.

From a textile unit in Tirupur, to a manufacturer of automotive accessory in Jamshedpur, to a mini-steel plant in Jharkhand clocking Rs. 5 crore in annual sales; in five years from now, there’ll be easily 20 million businesses that will be using IT as part of their every day life. This all seems to come together.

Sensing the opportunity – IBM, Microsoft, Sun and even desi stalwarts like TCS, Wipro have started focusing on the young but growing segment. IBM predicts that 30% of it’s revenue would be from Indian SMB segment in the next 5 years.

I think the opportunities to innovate & produce products which can be efficiently priced is huge & can be summarized as:

  1. Preventive — customer’s data leakage/theft,  end-point protection of desktop/servers, backup of data on desktop/servers, anti-fraud by customers/employees, etc.
  2. Curative — threat removal, recovery/restoration, essentially tools used when preventive measures have not been taken or failed
  3. Consultative — audit of practices, compliance to regulatory framework related to privacy/card-transactions, risk assessment

It can be argued that a lot of work has been done and the market is mature with products from established companies. However, these products are not suited for small business who is just starting out with it’s IT presence. Apart from the pricing which is ill-suited, the overall total cost of ownership is very high, considering that the businesses aren’t IT savvy. More than that, a lot of them have a feature load due to maturity of their life-cycles.

There are only a handful of startups in Indian segment who are working on products related to IT security, and this is a green field as I see.

Where is India’s CAN-SPAM act? An unsolicited mail for musli power on the way

March 29th, 2010

India is now #2 in generating spam and accounts for 10% of global SPAM. What is not clear from the report is the target of the spam — it only identifies that the source of the spam was from Indian IP addresses.

This is tell-tale and beckons the growing usage of internet in the urban areas of the country. With an impending boom in e-commerce — the day is not far when there will be online shops peddling ‘Musli power’ (the Indian equivalent of Viagra) through spam messages.

India has an umbrella law called the IT Act which governs data privacy, cyber-terrorism, cyber-security and the likes. However, there are a lot of open areas related to personal privacy, sharing of data, personally identifiable information, sharing with consent, etc. The current law talks about penalties related to hardware damages, “insertion” of virus, peddling of porn, etc. But, nothing around annoying marketing messages.

What we need is an Indian version of CAN-SPAM Act which precisely talks about (a) Content compliance (b) Unsubscribe compliance (c) Penalties for sending unsolicited spam (d) Local abuse.net (e) Civil & Criminal enforcement.

A well crafted anti-spam law/act:

  • Allows legitimate businesses to send legitimate messages
  • Prevents harassment of businesses from customers, ISPs, law enforcement
  • Allows businesses to do generate leads and control electronic communications with their customers
  • Creates a compliance guide for businesses for connecting with their customers through e-mail & SMS

Can you solve some email problems for the world?

March 17th, 2010

Email is overloaded. Too many emails, too little time. We still consume email as if it is 1995! I am personally averaging two apologies per week to people whom I have failed to respond in time. email_overload_alerts

Gmail has solved spam issues to a large extent for it’s users, other email providers are still struggling with spam.

More than spam, it’s missing of legit emails which is bothersome.

We at Morpheus have some ideas and are looking for a few smart techies to solve a few problems around reducing the email overload.

Do you think you can solve a few? Then apply to The Morpheus program. You must be a guru in all of the following POP, IMAP, Hypertable/BigTable, Javascript, Java, PHP, and you walk on HTTP, web security standards, Firefox/Chrome Plugins, REST-ful APIs in your dream. Send some cool code of problems you have solved in the past and your vision around solving some of the issues related to user experience, information overload, organization, closing the loop, etc. and we may work with you in the next 4 months (and also put some money) to bring the product to life for the global technology market.

Are you game? Come discuss with us.

Update: It is the company we help you build. You are the founder/CEO whatever.  Thought we should clarify that we are not looking for someone to just “code”.

How much money do you need to get started?

February 23rd, 2010

… You want to raise just enough money to solve a small problem for even a smaller set of customers to start with.

A lot of ventures start with a dream, a vision; to solve a problem in a specific Ruby Throated Hummingbirdway. The dream could be a INR 100 crore product or something as complex as an ERP on the web to a even more complicated, a Hospital Information Systems (.. search engines? they are easier to build these days).

The vision cannot be achieved in 6 months or even 2 years — Takes 5-7 years on an average to build an INR 100 crore company. So you want to start now, and want to start small, chiseling your idea, refining as you go, adding feathers in your cap and changing gears and accelerating as you move.

First, zero in on a handful of customers and a specific problem the customer may have. Do not worry if others mock you for building a feature & not a product. You know your destiny. You know where you want to reach. Validate what you have built. Give the customer something useful so that he can pay for what you have built. Iterate on your product.

There are a lot of examples where the companies started small and began by solving just one small problem and then morphed into gorillas; from companies selling PCs — to cloth merchants now with fully backward integrated perto-products chain.

A large amount of money spoils you, ties you up with your own experiments and forces you to deliver a product which does not have any takers outside your laboratory — You are forced to linger with the experiment because now you have a large amount of an external investor’s money and do not have guts to tell him that it is not working out. There are numerous examples. There are only a few brave entrepreneurs who took $5m only to tell the board in less than a month about change in the business model.

When you are starting out, you are building something and proving your hypothesis. The moment someone starts paying for what you are building, a part of the hypothesis gets proved. You continue to iterate.

Think 6 months, 3 people’s expenses.

Think 6 months, 2 people’s expenses.

Think the amount of first tranche you need to deliver to your first customer.

Think about knowing the sales process yourself before hiring a sales expert.

Think doing zero dollar marketing before doing SEM campaigns.

Think writing the code yourself before hiring a developer.

… start thinking about raising big money after your customer trusts you with his money.

(The thumbnail is of a Ruby-throated hummingbird. These are solitary. Have one of the highest metabolism, and as part of their migration, they fly non-stop across the Gulf of Mexico, a distance of at least 500 miles. Pic courtesy)

My List of Top 25 .com honorees

February 13th, 2010

Verisign announced the 25 years of .com awards. They announced a shortlist of 75. Here’s my Top 25 list of honorees. Surprisingly, ICQ is not listed in the shortlist. I have added ICQ to this at #26.

  1. Tim Bernes-Lee
  2. Netscape
  3. Amazon.com
  4. Vint Cerf
  5. Craigslist
  6. AOL
  7. Cisco
  8. eBay
  9. James Gosling
  10. CNet
  11. Yahoo
  12. Google
  13. eTrade.com
  14. Skype
  15. CNN.com
  16. Paypal
  17. Napster
  18. Netflix
  19. IAC
  20. Monster.com
  21. Flickr
  22. Mapquest
  23. Facebook
  24. Expedia
  25. YouTube
  26. ICQ

Indian judiciary needs to allow the class action lawsuit

February 6th, 2010

In the last 12 months after moving back from the Bay Area — I got cheated several times, small firms, doctors, big companies, public sector enterprises. Services not delivered, money not refunded, products not living upto warranties, the list is endless.

I followed up with some, called up some, emailed up some. A failed piece of furniture from Home Town (a unit of Kishore Biyani’s Future Group) gets dead_tree_arizonafixed after 15 phone calls only to be broken again. A non-delivery of 1Mbps Internet connection from Tata Indicom leads to only 75% of the subscription amount after several phone calls and 8 months of delays. God knows how much the cellular operators are cheating in billing for short minutes and dropped calls. Every month I get charged for roaming even when I haven’t left the home cellular network. The biggest grief is against some of the large public sector companies operating as corporations who do not even have a ‘tangible’ customer service line. The so called mega retail stores have the shoddiest of services without any accountability from the local Food & Drug or health departments/administration.

Where does the hapless customer go? As usual, there is no recourse except knock the local forums and show frustration at the process. The government of India has left it’s consumers to figure everything out on their own. It burns at least an effort of at least 100 man hours to get things resolved at the local consumer forum. If the amount is few hundred rupees, it is too much a chase.

There is corruption on one side where the government does not provide the service for which the officials are paid for and then there are systemic issues in corporations who dupe the customers.

At the minimum, the government should allow class action lawsuits and give an opportunity to service-deprived individuals to take action against companies and get compensated. The judiciary already has public interest litigation against the inaction of government. Now is the time to litigate against large corporations who do the business on their own terms.

I’m not alone when I get frustrated on inactions from the companies. If you troll through the forums, there are plenty with similar problems — They are fighting for the cause individually, to get their own money back. This needs to be fixed at a much bigger level.

The thumbnail is pic of a tree taken in 1972, wilting due to water and air pollution in Utah.

Poet Kabir on mentorship

February 2nd, 2010

I was reading some Hindi literature over the weekend. Found this doha (a kind of verse) from the great Indian poet Kabir on mentorship.

Kabirdas-ji says:

तारा मंडल वैसि करि, चंद बड़ाई खाई |

उदए भया जब सूर का, स्यूं तारां छिपि जाई ||

Shall update with the translation sometime later. Why don’t you attempt translating this in the comment section?

Your sales 101 begins with an email

February 1st, 2010

Downy WoodpeckerAs a Founder, CEO, whatever of the startup — one thing you would be doing in your journey would be Selling. Selling to customers, employees, partners, investors, family members, competitors. And selling 24×7. Pestering. Following up. Closing. The code you write, the product you build, the team you hire is given. People worry about the actual tangible later, but you need to sell it first. Sell the concept. Sell the features. Sell your vision.

The Sales 1:1 101 begins with an email you send to someone — be it the pitch about the company, a proposal for partnership, or looking for some help.

So you send an email and then … days pass and the email silently gets buried down under. As an entrepreneur what do you do? You have two choices (a) Assume the recipient is not interested and never follow up and move on (b) Do a soft reminder and follow up.

People are distracted. Your customers are distracted. Your potential investors are distracted. There is an overdose. Marketing messages. Sales pitches. Attention is short. It is okay to remind. It is okay to do 2-3 follow ups before getting an answer or giving it up (for 6 months!). You double the interval between each follow up. 1st contact –> 7 days –> 14 days –> 28 days.

Which option you choose makes the kind of entrepreneur you will become! (a) The entrepreneur who follows up; who tries to get his attention and makes an attempt to close the deal OR (b) someone who makes an assumption that customer is not interested in “buying”.

Update: Updated the title…dunno why I wrote 101 as 1:1. Ha.

Like everybody else, I also get a fair share of daily dose in our inbox; some get labelled, others get instant attention, some are read/unread. I wish if emails followed the sentence strategy. This is the reality of information overload and the reason for change in our normal behavior of answering the phone on few rings.

The bird is the Downy woodpecker. Pic courtesy

Is it possible to do a venture when you do not have money?

January 18th, 2010

… that was the question from a IXth grader after a talk I gave to the students of IX-XII grade at a recently held event called Disha 2010. The event is an initiative to apprise the students of the potential in alternate career streams. Engineer, MBA, MBBS, LLB are typically the first choice and “viable” (read, monetizable) options for a “normal” career.

After I did my sales pitch of becoming an entrepreneur (slides below); another student asked about finding the information related to venture funding, grants, incentives, seed capital! (Wow, I thought we already talk a lot!) So much so there is a chatter around all of these things, they are mostly targeted around the “grads” and above. We at Morpheus Venture Partners are thinking to do something about it (if you wanna join hands, drop me a note).

So what do you tell a 9th grader to do when he is eager to start and doesn’t have money? “Take the Plunge!”, I said.