Start Up India

Stand Up India"
By

Rakesh S K (15A3HP611)
Savali Krishna Chaitanya Yadav (15A1HP078)
Abhishek Suryapeta (15A3HP617)
INSTITUTE OF MANANGEMENT TECHNOLOGY
HYDERABAD

31-DECEMBER-2015

A REPORT
ON

START UPs

BY
RAKESH S K (I.D No: 15A3HP611)
ABHISHEK SURYAPETA (I.D No: 15A3HP617)
SAVALI KRISHNA CAHAITANYA YADAV (I.D No: 15A1HP078)

APPROVED BY:
INSTRUCTOR-IN-CHARGE

A REPORT SUBMITTED IN PARTIAL FULFILLMENT

OF THE REQUIREMENT OF COURSE MGMT581
BUSINESS COMMMUNICATION
BUSINESS REPORT WRITING

HYDERABAD
31-AUGUST-2015

AUTHORIZATION CERTIFICATE

This is to certify that IP Report entitled START Ups prepared by Mr. RAKESH S K,
Mr. ABHISHEK SURYAPETA and Mr. SAVALI KRISHNA CAHAITANYA
YADAV in partial fulfillment of the program PGDM at INSTITUTE OF
MANAGEMENT TECHNOLOGY, HYDERABAD is original and has not been
submitted by him/them in any other institute for the award of the MBA degree.

Date: 31-August-2015

Signature

Name

Designation

Copyright Rakesh S K 2015

This is a work of generating report on the Start-ups. This work has been
accomplished by the collective efforts of Savali Krishna Chaitanya Yadav,
Abhishek Suryapeta and Rakesh S K.

All rights reserved.

No part of this report may be reproduced, transmitted, or stored in a retrieval system,
in any form or by any means, electronic, mechanical, photocopying, recording or
otherwise, without the prior permission of the author.

Preface:
This report is dedicated to the enthusiastic, innovative and determined youth
of our country. Whether its because you want to do for yourself, or because you
want to get rich, or even because youre fed up where you are, this report is for you.
For those who want break free of the shackles of working for someone else, and start
up your own dream business. We hope this will help you to a great extent.
Rakesh S K

In writing this report we have anguished over what to, and what not to include.
Should we talk about computers, or the fancy techniques and tools like websites and
e-commerce? These matters are important so we have included them, but most
important is get going. We try to keep things simple and straightforward. What we
want to ensure is that you start out the right way get the basics right.
Savali Krishna Chaitanya Yadav

This report brings together a wealth of vast useful information that is now
yours to own and apply. It will not give you the answer to every question, but we
hope it will make you want to ask more and will help to make you a real success
story. The hard work you put will always return you back with the sweetness of
success and pride. Good luck!
Abhishek Suryapeta

Acknowledgements

No creation in this world is a solo effort. Neither is this report. From the person who
makes Xerox copies to the person who evaluates and edits this report. In particular,
Id like to thank:
Prof. Dr Nitin Gupta for guiding us in how to prepare the business reports. He
gave us the step by step guidance on report writing which enabled us inn
making this report. Thank you so much sir.
Haricharan P, our colleague for taking some time out of his busy schedule and
helping us in obtaining the necessary information. Even at the stroke of
midnights he had answered our calls. Thanks a lot for your support.

Gooty Karimulla, our colleague, he has never said no whenever we needed his
help, at any time when we needed to travel out of the campus on the report
work, he had made sure his vehicle is available and helped us in this regard.
IMT Reprography, it is not easy without these people to convert this report into
a hard copy, they were always available at the campus and helped us in getting
this report printed on time.

We might have missed some names here but we are deeply thankful to all those
people who are associated with this report. Thank you all for your great support.

Executive Summary:
In this independence speech of our Prime Minister
Narendra Modi, has given a new call to the youth of this nation that is START-UP
INDIA, STAND-UP INDIA. This is not to be taken as just a slogan by our PM, it is
indeed the wake up call to all the young and energetic youth of our country. Once Sir
M Vishveshwaraiah said Industrialize or perish, it is now time to say Innovate and
Ignite the talent and put them to the best possible use.
In this report we extensively discuss on what is a start-up and why, how and where to
start this start-ups. We will also look at some of the best suitable ideas for the Indian
eco-system. In this report all the basics of the Start-ups have been discussed and just
an outline is drawn. More detailed report on the Indian start-ups will be coming up in
our subsequent reports on the start-ups in India

CONTENTS
1. START-Ups

Page No.

1.1 Introduction

1.2 What is a START-UP?

1.3 How to start a START-UP?

10

1.4 Why to start a START-UP?

11

1.5 Where to start a STAR-UP?

13

2. TEN BEST START-UP IDEAS FOR INDIANS

2.0 10 Brilliant Start-Up Ideas for Indians

15

2.1 Flier Marketing Service

16

2.2 Shoe-wash Company

17

2.3 Doorstep Grocery Delivery Services

18

2.4 Wedding Planning

19

2.5 Day Care Centre

20

2.6 Housekeeping for Corporate Firms

21

2.7 Resume Writing Services

22

2.8 Student Awards Programme

23

2.9 Financial planning services

24

2.10 Website for rating professors

25

3. CONCLUSION

26

4. NOTES
4.1 List of References

27

4.2 Glossary

27

4.3 Index

27

1. START-UPs
8

1.1: Introduction:
A start-up company or start-up is a new business, in form of a company or temporary organisation designed
to search for a repeatable and scalable business model. Start-up companies can come in all forms and sizes.
Start-ups usually need to form partnerships with other firms to enable their business model. To become
attractive to other businesses, start-ups need to align their internal features, such as management style and
products with the market situation. The inheritor profile calls for management style that is not too
entrepreneurial (more conservative) and the start-up should have an incremental invention (building on a
previous standard). This profile is set out to be more successful (in finding a business partner) in a market
that has a dominant design (a clear standard is applied in this market). In contrast to this profile is
the originator which has a management style that is highly entrepreneurial and have a radical invention
(totally new standard). This profile is set out to be more successful (in finding a business partner) in a market
that does not have a dominant design (established standard). New start-ups should align themselves to one of
the profiles when commercializing an invention to be able to find and be attractive to a business partner. By
finding a business partner a start-up will have greater chances to become successful.

1.2: What is a START-UP?

A start-up is a small business with the added risk factor that it is defined by something new and unknown,
whether it be a product, service, marketing angle, or something else. While there is risk in all business
ventures, those which are modelled on past successes have history to guide them."
"As it has been said for a while in the Lean Start-up community, a start-up
a human institution designed to create a new product or service under conditions of extreme uncertainty.

is

"A start up differs from a small business as follows:

Small Business follows a defined business model, with previous examples of success in the same area with
the same model to rely on. As an example, a service provider that founds a business using established
practices would be a small business, not a start-up.
Start-up is defined by its innovation - either in the form of its business model, or the total nature of what it
offers. A service provider who comes up with a new service that previously did not exist, or a product
developer who comes up with a new product and builds a business around it, would both be examples of a
start-up.
SIZE DOESN'T MATTER - A start-up is not the same of a small business. It is not the size that defines
what a start-up is, but the search for a new product or service under conditions of extreme uncertainty.
INSTITUTION - A start-up is not an idea, a product, a service. A start-up is an organization, as Steve Blank
says, designed to search for a scalable and repeatable business model;
New - As Elie said, a start-up is characterized by innovation. Innovation must be defined in a broad way: it
can be creating a new technology but also bringing a new product to an underserved set of customers.
UNCERTAINTY - This is the essence of a start-up. A start-up operates in an uncertain environment: both
the problem to be solved and the product to build are unknown. This is why a start-up requires a different set
of management tools.
A small business can be an exact clone of an existing business: business model, pricing, product and so on. It
is not a start-up, because its success depends only on execution. A start-up, instead, must search for "a
scalable and repeatable business model", so there is first discovery and then execution."

1.3: How to start a START-UP?

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Live in the future. Most of us live in the past or the present. It is easier to analyze what already succeeded
and think of ways to replicate the success. Its thinking by analogy. It is a valid way to think, except that this
isnt the way to create a big startup. Big startups are based on ideas of two kinds obvious and hard, like
Elon Musks SpaceX; and non-obvious and hard, like Uber. If you dont see the obvious and hard or the nonobvious, there is a name for it Schlep Blindness. SpaceX is an obvious idea because the only other
enterprise that could send people to Mars, NASA, had no plan to do so at the time SpaceX started. So it is
obvious. Because it is obvious and no one else is doing it a reasonable assumption is that it is impossible.
Yet if you live in the future, it will also be obvious to you that humanity will either go to Mars (or another
planet) or go extinct at some point. More likely we will find a way to leave this blue pebble. So the
impossible must be possible. With UberPool, the idea that at any given point in time there are at least two
people going from about the same location to about the same destination is non-obvious. It requires at least
three assumptions. It is hard because you would have to gather and store mountains of data about where
people actually go in a city. That kind of data analysis is only becoming available now. But Uber thought of
it when they offered their first ride back in 2009. They were living in the future.
See what is missing in the world. You probably noticed that before Uber, taxi rides werent enjoyable. You
probably noticed that before SpaceX people were less interested in space. But that is already the past. What
is missing now? More importantly what is missing from your life now?
Write it down. No matter how smart you are, you will not remember all your insights. Your conversations
with others, random observation, and shower thoughts that are worth following up on. Write these done or
lose them. Daydreaming has value. Einstein had another name for it thought experiment.
Make a prototype. Most of your thoughts, even the best ones, will never see the light of day sadly. You will
forget them into oblivion even if you write them down. The only exceptions are those thoughts you prototype.
Makethem physical if they can be program them, design them, do anything that makes them more than just
thoughts. Most people will stop right here. So if you do this, you are already ahead of imaginary curve.
See what is missing in the world. Now you will need to step out of your comfort zone and seek out people
who will critique your prototype. Ideally, these are both people you already know and complete strangers.

Why 100? Because you need a breadth of perspective and hopefully a pattern to recognize from all the
feedback.
Iterate. Although a few people will get it right on the first try, the odds are you will not. So prepare to redo
everything from scratch. This is your founder MBA, except it is free.
Find a co-founder. When the prototype starts making sense, go find another person who will pour a decade
of their life into this project because it will change the world and they probably dont have a more
meaningful thing to do in life at the moment.
Register your business. Split equity. Finally, an easy step. Get a lawyer who will register your company.
Give your co-founder as much equity as will make them work their hardest, while you keep as much as will
make you give it your all.
Look for funding and build version one. Unless you have enough savings to build version one, go find an
investor. While you are doing that build version one. You have to keep building because there is no
guarantee about when or whether you find an investor. Dont assume that you will just because other startups
are getting funded. Assume the worst, and build your product.
Launch. By the time there is even an iota of usefulness in your product, launch it. Extra features, better
interface, faster load time and other optimizations probably wont save it, if the core features have no use.
Follow up with users. Are users coming back? Find out why they are not.
Launch again. Launch as many times as it takes. At some point, if at least a few dozen people are coming
back on their own, you probably made something valuable.
Get to 1,000 users. This may not seem like a lot, but the first 1,000 users will show the weaknesses of what
you have built. You probably will have to recruit them manually. How manually? Take their computer and
open your website for them. Whatever it takes.
Grow. Paul Graham encourages startups to grow at least 5% a week. If you grow that much, within 4 years
you will get to 25 million users. In other words, you will be one of the largest startups.
Success whatever that is. You can IPO, sell your company to another or stay private by convincing
investors that there is a bigger liquidity event coming. Even now, though, you may or may not have made the
world better. WebVan IPOed, but quickly disappeared. Think about what kind of a dent in the universe you
want to leave with your startup.

1.4: Why to start a START-UP?

You Will Have The Time Of Your Life
I put this first, because it's the reason that will motivate you the most to start a start-up. Doing this may be
hell at times, but boy is it fun. It's an adventure that you will remember for the rest of your life whether
things go very well or things go poorly. They used to say that everyone should try to be a rockstar at least
once in their lifetime. I'm going to add to that and say that in-between being a rockstar and something else,
you should be an entrepreneur at some point just for the adventure. Writing this article makes me realize how
much I truly love doing this - the uncertainty, the victory, the failure, the connections with customers, the
press,etc. I couldn't see myself doing anything else and if this is truly for you, you will eventually feel the
same.

You Have The Power To Create Something From Nothing

Few professions have the power to create something from absolutely nothing whatsoever. Right now, you
may have some crazy idea in your head to bring into the world. It exists on some napkins, photoshop files,
etc. right now, but eventually it will become reality. There's a good chance it's something that will have an
impact on a large number of people... millions of people around the world. That wasn't something many
could achieve, even 20 years ago. Now, it's possible for anyone, anywhere. I rarely use absolutes, since I

11

know what that means, but I truly believe the ability to start a start-up can happen anywhere. It's certainly
more difficult in poor countries, but it's still possible.

You Will Make Friends And Connections That Will Last A Lifetime
This is one of my top three reasons on the entire list on why to start a start up. The friends you will make,
just stay with you forever. There is a certain bond that connects you. It takes an entrepreneur to understand
what another entrepreneur goes through. We tend to all stick together and the bond that is formed is very
very deep. A lot of people will give up along the way and find out entrepreneurship isn't for them. If you
stick around long enough, the pool shrinks, and the people who began their career around the same time as
you have advanced far along too.

Finding Out Whether You Are Right Takes Far Less Risk
It used to take many months and lots of capital to find out whether you were on to something. That just isn't
true anymore. You can find out if you're right in some time period that is under 60 days. If you're right keep
peeling away more layers. If you're wrong, pivot a bit, and move on to the next thing. It's not a zero sum
game. You shouldn't fear failure, but embrace the process that comes with it. Test your ideas via Amazon
Mechanical Turk, talk to customers, buy some basic keyword tests on Amazon, and find out whether you are
right. You can do this with close to no capital and get over one of the biggest humps a start-up faces in its
first 6 months: Knowing whether you are building something people want.

A Traditional "Job" Isn't Much More Secure In The Long Run

Oh sure, you're a great engineer or marketer. You could get a high paying, possibly even six figure job right
now. Add in some benefits and things sound great. Here's the truth: no job is safe in this world. Wall Street
practically collapsed overnight and larger companies do "layoff roulette". At least doing a start-up is some
function of having survival that is within your control. When you're fired, that is usually it. When you go
through the equivalent of "being fired" in the start-up world, you can fight back. You can persevere and stay
determined.

The Worst That Can Happen, Isn't Really That Bad

It seems a lot worse when you think about it now, but it really isn't that bad. If your start up fails you will
hurt afterwards for a decent while physically, emotionally, and financially. People have been in far worse
positions and triumphed. If things fail you either a) try something new start up wise b) join another company
whose mission you believe in c) take a new direction in life. Failure at a start-up, DOES NOT mean failure at
life. I'm not trying to play down the horrible reality that comes with failure. I'm just trying to say this: "You
will bounce back and you will live to fight another day".
Bottom line: If your gut tells you to go for it and there's something you really
believe in, then go for it.

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1.5: Where to start a START-UP?

The reason why startups fail is running out of cash. How can you make sure your cash does not run out
before you make money?
Arguably, if you know what you want to build, you could start your startup anywhere. You could just take
your laptop, sit down in your bedroom, shut the door, and build your product. Done. Seems
straightforward. But the place is very important to get the success, so which is the best place?

San Francisco Sure, If You Already Have Your Product

The top place startup founders want to go is San Francisco. Three reasons: more access to capital, early
adopter community, and the startup flow. Here is the problem: if you get here without your beta ready, you
will not benefited from the investors and the early adopters since you have nothing to pitch investors and
nothing for early adopters to adopt yet. So the flowagain, even if you go to a lot of events and meet the
best people you still wont be able to show them your beta. So why go to San Francisco? Perhaps, a
different perspective? Inspiration? Fair enough. But it will cost you. San Franciscos 1-bedroom apartments
are around $2,000 per month. Monthly cost of living is at least $3,000. And while you are paying $3,000 you
are still sitting in your apartment and, hopefully, building the beta. And if you are not, you really should be.
That means to bootstrap even for 3 months you need roughly $10,000. Now maybe you want to look at other
places to build your product.

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Looking for the Perfect Place

The cheapest place may be your parents basement or your friends couch. These real rock-bottom deals will
cost you freedom, though. What we are looking for here, then, is the best value for your money. A
comfortable hassle-free life for less than $1000/month.
Recently, as we traveled from San Francisco to London, Dubai and then India, it became clear that seedstage startups can have a lot more runway in some locations than others. As we finally settled into an Indian
village to focus on my own project, I wanted to find out what other bootstrapping-friendly locations there are
in the world.

How Cheap?
Here is a rough comparison of my burn rate in San Francisco vs. Bangalore, India:

Expense

San Francisco

Bangalore India

Rent(1-bedroom)

$2000 (+$2,200 deposit, excluding utilities) $275 (+$500 deposit, including utilities)

Food

$1000

$350

Transport

$90 MUNI pass + bike

$60/month to rent a scooter +$20 for gas

Internet

$ 50/month (3G through contract)

$30 (12GB of 3G)

Phone

$30/month

$10 (prepaid)

TOTAL

$3,170

$735

The above table shows you which is the best place to start your start-up considering the cost of living and the
cost of operating.
In India you will also find huge human resource who are very skilled and technically rich. And given the vast
population of India it makes it a huge market for your product. The best place to start your start-up is India
and in India it is the silicon city Bangalore. And other major cities where start-ups can come up are Pune,
Hyderabad, Vijayawada, Chennai and Ahmedabad. So, my friends of young blood exploit the opportunity
and make the success follow you.

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2. TEN BEST START-UP IDEAS FOR INDIANS

10 BRILLIANT START-UP IDEAS FOR INDIANS

It doesn't matter if you are still in college. Murtuza Rohawala, founder and
CEO of Edfin Consultancy suggests a few ideas you can get started with in
India right away.

There's been

a lot of talk as of late regarding young entrepreneurs given the massive

wealth Facebook's IPO has created for its billionaire founder, Mark Zuckerberg.
Google, Microsoft and many other companies were started on campus.
Unfortunately, there simply aren't that many investors in India out there to fund ideas
from mostly unproven young adults, so it remains up to the entrepreneur to do it on their
own.
For young adults, the best place to flex your entrepreneurial muscle is while you are in
college -- or at the very least when you are young enough to not be bogged down with a
career.
College is a great place to start your venture as you have lots of free time, access to a large
pool of human capital and your college can provide much-needed support.
The following ten business ideas are what can be executed while being on campus.

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2.1 FLIER MARKETING SERVICE

Lots of local small businesses are interested in different ways that they can reach the
customers around them for cheap.
Marketing for them usually involves buying space in the local newspapers or cable
channels.
Many small businesses would jump at the chance to have your company design and pass
out fliers around town announcing sales or specials that they are offering.

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2.2 SHOE WASH COMPANY

Previously, canvas shoes were cleaned using old toothbrushes and detergent.
But nowadays people have moved on to trendy sneakers and want the shoes to be cleaned
by people who are experts in the field so that they can be maintained properly.
In order to be successful in this business, it is essential to know how to use chemicals. A
fair degree of marketing skills are also required.

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2.3 DOORSTEP GROCERY DELIVERY

SERVICES

Nowadays,

customers want the groceries at their doorsteps without having to go the

bazaar or wait in long serpentine queues on weekends at supermarkets.

This is where a doorstep grocery delivery company can come in handy.
The main skills needed to run this business smoothly are sales and logistics management.
This business has a break even period of 2 months at the very minimum and can provide
gross profits of nearly 20 per cent.

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2.4 WEDDING PLANNING

Wedding planning, made popular thanks to the Bollywood flick Band Baja Baraat is also
a good business idea for those inclined towards event management and enjoy Indian
weddings!
Nowadays, weddings in India are being celebrated on grand scales and the celebrators
might not have the time to properly attend to every little nuance as a lot of time is involved
in this as well.
Wedding planners can help people in such situations.

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2.5 DAY CARE CENTRE

Given

rapid urbanization, nuclear families and both parents professionally working,

babysitting services is the need of the hour.

One needs to start with friends and referrals to build credulity and confidence of parents.
The ability and tact of handling kids is a pre-requisite. If all is well this is a perfect business
where one can study while being on the job!

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2.6 HOUSEKEEPING FOR CORPORATE

FIRMS

Housekeeping services for a start-up is a proper and innovative business idea.

With corporate firms and offices looking to keep their offices spanking clean, this is a good
business idea. It is also in order to plan your business and human resource as it is one of
the most simple yet much required service.
Good communication and man management skills are necessary to succeed in this domain.

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2.7 RESUME WRITING SERVICES

Are you good at presenting information?

You can start a resume writing service and help students put their experience in the best
possible format and phrasing words to attract interview and career opportunities. It not
only attracts students but also other skilled people who doesnt know how to put such
things into formal way.
It will not stop writing resume but will let you create a market in written communication
and other communication related services based on the quality of the services you provide.

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2.8 STUDENT AWARDS PROGRAMME

Everyone is looking for a way to get ahead in today's competitive job market.
Team up with the Student Affairs in your college or join any club like Lions or Rotary to
start an on-campus student awards programme where students are rated and awarded in
certain categories that are relevant to future career success.
Charge an entry fee and look for sponsors.
This is a cool way for students to get accolades they can add to the list of credentials that
can be presented to possible employers later.

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2.9 FINANCIAL PLANNING SERVICES

Personal financial planning is a field that is expected to grow in the next few years.
You can get an early start by beginning your financial planning business on campus.
Work with students to help them save and manage their money.
College is a time when people can really put a damper on post-college opportunities by
ruining their credit or getting into debt.
Help students avoid this and get paid for it.

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2.10 WEBSITE FOR RATING PROFESSORS

Some professors are amazing, some are more boring than paint drying on a wall.
Your college mates might want to know that and maybe you can start a website to allow
group rating and comments so everyone will know what they're getting into before they
register for a class.
There are possible many other things one can look to start with on campus.
Just get a team in place, stop thinking and start acting. This is the single biggest step for an
entrepreneur, just do it!

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3. CONCLUSION
Picture 3.1

In this report we have extensively discussed on What a START-Up is, Why to start a
START-Up, How to start a START-Up and where to start a START-UP. We have
also placed some best 10 ideas of start-ups which are suitable for Indian eco-system.
This is the time for our youth to best utilize the opportunity and exploit the best of it,
and get the success in their way.
Start-Ups main issue is with fund raising. It is suggested that the government and the
big corporates have to come forward in funding the start-ups considering the future
growth of the country, economy and the global market. You can see how it is
growing from the above picture 3.1.

26

4.1 References:

Wikipedia (2015) Startup Company (Online).Available from: https://en.wikipedia.org/wiki/Startup_company [Accessed

29/08/15].

Wikipedia (2015) Startup Company (Online).Available from: https://en.wikipedia.org/wiki/Startup_company [Accessed

29/08/15].

ANNA VITAL (2013) How To Start A Startup [weblog] Funders and Founders.13 May. Available from:
http://fundersandfounders.com/how-to-start-a-startup/
[Accessed.29/08/15].

JASON BAPTISTE (2010) 14 Reasons Why You Need To Start A Start Up [Web Blog] On startups.15 Nov. Available
from:
http://onstartups.com/tabid/3339/bid/24525/14-Reasons-Why-You-Need-To-Start-A-Startup.aspx
[Accessed.29/08/15].

ANNA VITAL (2013) Best Value Destinations [weblog] Funders and Founders.18 April. Available from:
http://fundersandfounders.com/where-to-start-your-startup-best-value-destinations/ [Accessed.29/08/15].

Murtuza Rohawala (2012) 10 Brilliant Start-up Ideas for Indian Students (Online). Available from:
http://www.rediff.com/getahead/slide-show/slide-show-1-career-10-start-up-ideas-for-college-students/20120629.htm#2
[Accessed 29/08/2015].

4.2 Glossary:
Iterate: perform or utter repeatedly
"The bird's call is a monotonously iterated single note"

Prototype: a first or preliminary version of a device or vehicle from which other forms are developed.
"The firm is testing a prototype of the weapon"

4.3 Index:

How to start a START UP?

Live in the future

27

See what is missing in the world

Write it down
Make a Prototype
See what is missing in the world
Iterate
Find a Co-founder
Register your business
Look for funding and build version one
Launch

Follow up with users

Launch again
Get to 1,000 users
Grow
Success- whatever it is
What is A START UP?

Size Doesnt Matter

Institution
Uncertainty

Where to start a START UP?

San Francisco Sure, If You Already Have Your Product
Looking for the Perfect Place
How Cheap?

Why to start a START UP?

You Will Have The Time Of Your Life

You Have The Power To Create Something From Nothing
You Will Make Friends And Connections That Will Last A Lifetime
Finding Out Whether You Are Right Takes Far Less Risk
A Traditional "Job" Isn't Much More Secure In The Long Run
The Worst That Can Happen, Isn't Really That Bad

10 Brilliant Start up Ideas for Indians

THANK YOU

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