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Posts Tagged ‘Business’

Mix-Up! Users Uninstalled Snapdeal Instead of Snapchat.


 

 

Indians were outraged at the ‘alleged’ comment of Snap Inc. CEO, Evan Spiegel that Snapchat is not mean for poor countries like India and Spain. well, no one is sure that whether he said it or not. But just this allegation was enough for the every charged Indians to start berating the company and its CEO. Thousands of users uninstalled snapchat app and gave it a one-star rating on Google Playstore. The outrage was so high that the Snapchat was reduced to a one-star rating on the store. Bad.

The worse was that many un-initiated souls who did not even know what Snapchat is and what it does, started uninstalling what they had on their phone- the Snapdeal app.

Now, that act borders on stupidity. This is the second time when Snapdeal have had to bear the users’ wrath on the playstore. The first was when its brand ambassador Amir Khan’s wife made a statement which did not go well with the Indians. The outrage that time started with boycotting Amir but then led to the brands that he endorsed.

While I reserve my opinion for a later blog-post, but this is a sad case where one company suffered because of someone else’s ‘alleged-not-proven’ fault.

 

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Which Candy Did Rs 300 Cr Sales In Just 2 Years? Just Amazing.

March 8, 2017 1 comment

 

 

FMCG market is tough to crack. There are hundreds of thousands of products in each category. Launching a new product and making it a star is a daunting task! But one product launches a couple of years ago has done wonders. And, its a candy!

Pulse was launched exactly two years ago by the DS Group (makers of Pass-Pass and Rajnigandha) and has crossed Rs300 Cr in sales since then. Just to put things in perspective, some of the products by much bigger and better known brands don’t even come close to what Pulse has been able to achieve. Oreo. launched in 2011 has done Rs 283 till date and Mars bars, launched in 2011 again has done only Rs 270 crore in sales till date.

I am writing a blog on identifying the factors that led to the amazing rise of the Pulse product. Keep tuned in for more.

More details on the blogging platform WordPress, do visit http://www.wordpress.org

Grind Your Axe. Often!

February 9, 2017 Leave a comment

 

Harshdeep Rapal

 

Last evening I was sitting with my team (mostly comprising of your just-out-of-college grads) at a bar near our office. One topic led to another and we started discussing on how important it is for someone in today’s world to keep updating and polishing his/her skills. The discussion reminded me of a story I heard a long time ago. Thought of sharing it here with the readers.

This is a story of a young lad who starts his career as a lumberjack. No, not the lumberjacks we have these days with chainsaws and all other machines, but with a modest axe- yes like in the good old days.

Like any another youngster, he was full of energy and bursting to seams with enthusiasm on his first day at work. He wanted to work hard, work long and make a lot of money. The lad started his first day by working 8 hours and chopping four large trees. For every tree chopped, he got $10.

“40 dollars a day are not going to take me anywhere, I need to earn much more than this” he thought.

Next day, he started early and worked till late. Working 12 hours, he chopped six trees. “60 dollars is good, but still not what I am looking for. I need to work harder and longer”.

Third day, the young lad started even before sun had risen and worked till there were stars in the sky. He managed to chop eight trees.

“Damn! 80 dollars are day are good, but not for me. I definitely want more!”

So, to achieve more, next day he started even earlier and worked 16 hours straight. To his surprise and shock, he could chop no more than eight trees! Next day he tried even harder, but was again stuck at eight. He tried even harder the next day, his number was still stuck at 8!

Dejected and confused the young lumberjack was walking his way home. On the way he met an older lumberjack who had been in the trade since last 25 years. On asking what the matter was, the young lad told his story. “I am working so hard, working really long hours, still not able to increase the number of trees cut beyond 8”.

“So, you work for 14-16 hours straight, still stuck at 8 trees a day. Ever thought of taking an hour’s time to grind your axe?” said the experienced lumberjack and walked away.

End of the story.

Almost every one from my team looked at smiled at me. Hope, now they understand the importance of continuously upgrading, sharpening and polishing their skills. Every one, including me should!

This Entrepreneur Sold His Business for $1.25 Million in 10 Minutes!

February 3, 2017 1 comment

Jeff Stroope had been a fireman for 15 years before he invented a revolutionary fire hose connection that saves a lot of time and trouble for connecting the hose to the water pipeline in the time of a fire tragedy when every second counts.

Jeff came on Shark Tank and did a demo for his product. Not only did the Sharks like the product but he got an offer from Mark Cuban to sell off his whole company for $1.25 million plus a three year job contract at $100,000 per year and a royalty on every product sold by the company.

Here is the amazing pitch.

 

F*ck The Unicorns and Cockroaches, become a Business First!

December 2, 2016 Leave a comment

 

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Two years ago, everyone wanted to become a ‘Unicorn’ (the term that is used to refer to a rare mythical creature in general and to a billion dollar company in the startup world). Every morning there was news of one more startup raising a few or a few hundred million dollars in funding at a valuation, which you would have never heard of earlier. Fast-forward to 2016, the funding freeze has set in and there are people advising on how to become a cockroach startup. Scores of articles have been written on how to survive the funding winter till the sun rises again and investors start showering you with millions- not sure if that is going to happen anytime soon.

As a founder of two ventures earlier where I did not have any funding and then having led a venture of where I had a few million dollars at my disposal from Rocket Internet and now again when I am building a seed-funded startup, I have been through the grind. These few years spent in building startups have given me a perspective of how important it is to create a business out of an idea.

There would be millions of businesses across the globe. The range of size of these businesses in terms of revenues and employees would be astonishing. There are businesses run by the single-man show of a roadside street-food vendor and then there are the likes of Coca Cola and Boeing. How many of them have raised funds? The answer is – A negligible minority. One thing they all have in common is that they focused on creating sustainable businesses. I consider an idea to transform into a business when there are people willing to pay for your service or product and this number, at a certain size, can help run the business profitably.

As I mentioned earlier, I am currently running a venture that is seed funded since January 2016. At the outset, with my previous experience, I was clear to create a business and not a unicorn or a cockroach. Since last six months we have customers who pay form the service we provide and although we are small, we will turn operationally profitable I next two to three months. This does not mean that we do not want to become a hundred million or a billion dollar company- we do want to, but in a planned manner. Now that we have converted out idea into a business, there is confidence in the team, the seed investor and also the prospective investors on the growth path of the venture.

My advice to fellow startup enthusiasts and entrepreneurs is to have a plan to convert the idea in to business, focus on execution and then utilize funding to scale the operations. Do not startup just with the sole aim of raising funds. In the past many have done so, have even succeeded in raising millions but failed to survive- just because they could not turn into a business even after raising millions.

Forget the unicorns and cockroaches, let’s build businesses and enjoy the exciting journey as we do it!

[The writer is the co-founder and CEO of Feelance Co. and has been involved with the Indian StartUp ecosystem since 2009. He can be reached at harshdeep.rapal@feelance.co or harshdeep.singh.rapal@gmail.com ]

2 Companies Who Will Hit the Most from WhatsApp Video Calling

November 20, 2016 Leave a comment

 

Many users of Whats App were surprised yesterday when they could update the app and start video calling their contacts. With a lot of people using WhatsApp for texting and calling video calling was the next logical extension of the app that has taken the world of communication by storm (I am not talking about Line, WeChat and China for a reason here).

Everyone know who will benefit the most from this new feature- Yes! You guessed it right. WhatsApp and its parent company Facebook.

But who will get ht the most? 1. Apple (FaceTime) 2. Skype

Most of the time when I have to video-call my wife or take interviews of candidates, I generally use either Skype of Face Time. For that matter if e have to slit the two between business and personal use of the video feature, I use Skype for Business and Face Time for Personal (family and friends) use.

WhatsApp has been till now the medium of choice for many of us for texting, sending images, voice message and various other attachments. I have seen people of all ages using WhatsApp for one to one messages, group messages, coordinating for executing various events- parties, birthdays surprises, delivery of packages etc. Now with the video call option on the same application, there is no need to open Skype or FaceTime.

Since the time WhatsApp has rolled out video calling feature, I have stopped using FaceTime or Skype for at least personal communication. Skype is still my medium of choice when it comes to professional/business communication. I know a lot of people around me who have made the same move- from Skype & Face Time to WhatsApp Video Calls. Having said that, most of my views are based on observing the behaviour of people around me rather than surveys and data. This, similarly, is my personal view. It might take a few months or even a year to see who actually benefits and who loses. For now, its a Thumbs Up to WhatsApp!

 

 

Learnings From AskMeBazaar Shut Down


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Today morning I woke up to the news of AskMe shutting down its services leaving thousands of its employees and lakhs of its vendors and partners in quandary. It is not unusual for startups to stumble and fail. Globally more than 95% of the startups shut down.

AskMe was a different care altogether. The startup had raised $119m from Astro Holdings and other investors and were in talks to raise another $200m at a valuation of $1b. But then Astro decided not to participate in the next round. Things came to a dead end when Astro skipped the last Board meeting and AskMe wrote a letter to Registrar of Companies not to let Astro wind up their operations before clearing their dues (Approx Rs300 Cr).

I was surprised why it came to such a situation that the company had to shut overnight and lay off all its employees. The reason I found out was that Astro Holdings owned a whooping 98.5 % stake in the company. Let that sink in.

I am not sure what the founder were thinking while raising funds, but this is an insane amount of stake to be offered to a single investor. It does not leave room for other investors to have their say. In this case Astro did not want to participate in the next round of funding and I am sure the legal formalities would have got messed up for bringing in new investors of raising funds from other minority investors (if any).

The biggest learnings that the other entrepreneurs should learn from this incident are:

  1. Never have one single investor own an insanely large chunk of your company. 98.5%….never!
  2. When you get money in the bank, try working out the unit economics rather than burning the money at an insane rate. AskMe spend a large chunk of money hiring Bollywood brand ambassadors for TVCs. The same would have given much better ROI had the amount been spent on online marketing.
  3. In case such a situation arises, take care of your people. They trusted the startup ecosystem and toiled for your venture day in and day out. Never leave them high and dray by wrapping up operations overnight. I am sure the founders would have known the situations months ago. They should have told the truth to the employees and held them in faith to turn around things. Now the employees will not only lose the faith in the founders, but also the Indian startup ecosystem.