Sunday, July 28, 2013

Why Young Entrepreneurs MUST Go to Entrepreneurship College

Why Young Entrepreneurs MUST Go to College

should young entrepreneurs go to college
While there have been articles on there being no need of young entrepreneur to go college and even some lists of entrepreneurs who succeeded without having a college Degree (also suggesting that going to college is a waste of time), there have been a lot of confusion for the budding young entrepreneur with a lot of vigor and passion for business and the action these young entrepreneurs take will have a lasting effect on their lives.

For the sake of complete transparency I’d like to tell you that I have also battled with the idea of going to college or not with a lot of pressure from parents and others and I’m a kind of person who doesn’t change my mind once it’s fixed. I even went on to back up my argument with examples of l entrepreneurs successful like Bill Gates, who are making it as college dropouts but now I can simply say my decision then was as a result of childhood foolishness – I know a lot of people will disagree.
I’m not trying to say going to college is a must to succeed in life, far from it, but there are so many importance of going to college that I’d advice young entrepreneurs not to try to play with it.
This is not a rule and I know you have the final say on what goes on in your life, this article is only expressing my views on the subject.

College Increases the Chances of Your Success in Life
If you take a look at most of the young entrepreneurs and entrepreneurs who believe going to college is not important to succeeding in life you will also notice they’re always citing examples of great and extraordinary entrepreneurs like Bill Gates. If I may ask, how many young entrepreneurs are as extraordinary as Bill Gates? Being extraordinary is not all about having a great idea or knowledge about a subject but knowing how to present your ideas in a very effective way.
We hardly have one extraordinary entrepreneur in a million and if this is considered you’ll notice that deciding not to go to college is a very dangerous decision for a young entrepreneur to make.
We only hear about college dropouts who are successful entrepreneurs, and we only hear about them because they are successful. You have read a list of college dropouts who are successful but have you ever read a list of college dropouts who are complete entrepreneurial failures? Never! You can’t even see a list like that because most of these entrepreneurs are not ready to own up to their “foolishness”.
I have enough facts to back up my argument and I have read interviews about successful entrepreneurs who wish they didn’t drop out of college, like this one. The truth is that many entrepreneurs eventually discover their mistake (of not going to college) later in life and in order to protect their ego they still go on saying it’s a good thing to be a college dropout.
If we take a look at the numbers, very few college dropouts become super successful as an entrepreneur and many of the unsuccessful ones end up blaming themselves in the future, they end up saying something in this line, If Only I had a college degree!

It Increases Your Self-Esteem
Imagine speaking in the midst of CEO’s, highly educated people and even some uneducated people and starting your statement with something of this nature, I am a college dropout…, irrespective of your achievements you’ll still see people shaking their heads at you and asking themselves if that is a thing to pride yourself at.
It is always great to go against the norm and I am a great fan of that, but you should also realize that going to college is a life of its own and people have a separate way of thinking about those who don’t go to college. They have been taught that going to college is the only way to succeed in life and even if they love you and your achievements as a successful college dropout they will still relate with you in a different way because they can’t control that feeling of theirs with which they were brought up (that going to college is essential to success).
If you see a successful entrepreneur who has a lot of achievements under his belt start a speech with something in this line, I have a PhD in applied mathematics, but I’m happy I’ve never used it to work…because being an entrepreneur was my best decision in life. You will be filled with awe and respect for the fellow, you will begin to see the person as a highly intelligent, educated fellow who knows what he is saying, not just an illiterate.

You Have a Fallback Option
While most of the time there isn’t a need for a fallback option, it isn’t a bad thing to have it. Since there is very little guarantee of you succeeding as an entrepreneur you at least have something to back you up.
Take a look at the most successful entrepreneurs we have in history and you will notice that a large percentage of them worked on their business for at least five years before they could succeed. If you don’t have a job, if you don’t have a degree, even if you have the motivation, you should know that it isn’t easy to succeed as an entrepreneur. I am not trying to tell you to neglect your ventures and kill your dreams of being a successful entrepreneur, I’m only telling you that it takes time, it takes real time, and your college degree can be a great thing for you to get a job, funds and respect for the main time.
You will notice the use of respect in my last statement and you might be asking that of what importance is respect to success as an entrepreneur. It has been proved that over 70% of Start-up Fail in their first year and if you imagine yourself being the founder of one of these startups and you’re a college dropout. You will have lost your public image in the first place (a dropout?) and the inability to build a successful business for years with that bad public image will make you frustrated, quit and almost think of committing suicide.

You Get More Knowledge and Experience
Many entrepreneurs will question this and eventually reiterate by saying that real experience comes from maintaining a business. That is no doubt the truth but there is some truth to what I’m saying here.
Going to college enables you take a course and with constant learning and practice your knowledge of that course will no doubt improve. You will also be able to meet a lot of like-minded people and you will be able to learn from them, you will also gain experience in networking and communicating with people.
Many young entrepreneurs have poor networking and communication skills and this will go a long way to affect their success in business and in life – going to college will help you learn a lot of things along this line and one of those things will be the ability to sharpen and improve your communication and networking skills.

A Different Approach

After taking a look at most of the entrepreneurs who supported not going to college, a common theme I noticed among them is that most of them are enrolled in courses they have little to no interest in. An entrepreneur can’t succeed in every business because interest is important, for example, a sound programmer will hardly succeed in building a diaper business – the same thing applies for going to college. Your approach must be different; going to college shouldn’t be about getting the best grades but going to learn more about what you love.

Conclusion
Without doubt, as backed by the above argument, my advice is that young entrepreneurs should go to college. Even if only to improve your self-esteem, you will be very happy you did.

Apurv Bhansali
apurv15@ediindia.org

Sources : Young Entrepreneurs "writtersincharge"

101 Ways to Reward Employees Without Giving Them Cash

Cash has proven to be a short-term motivator for employees. Save yours and try one of these more-meaningful (and less expensive) ways to show them you care.


When it comes to rewarding your employees, cash is king—but only for a few hours. Money is not a long-term motivator. Sure, employees love a check—who doesn’t?—but finding ways to engage with them rather than pay them off will result in more loyal, harder working employees.
Here are 101 ways to say, “I appreciate you and all your hard work,” without breaking your budget.
1. Flexible Hours. Let your team work when they want to work. The flexibility can be worth a lot more than cash. Maybe they won’t need daycare services for their child, for example, if they can make their own schedule.
2. A Thank You Note. Saying thanks about something specific may be the ultimate reward. If you do it selectively yet authentically, a thank you note may be pinned above your employee’s desk for years.
3. Pizza Party. Lunch with colleagues is fun, breaks up the routine and keeps employees in the office. It’s an all-around win for anyone who likes to eat.
4. Guess the Baby. Reward your team with a break from work by having a "guess the baby" event. Have everyone bring in their baby photo, then have everyone guess who’s who.
5. The Boss’s Office. Swap desks with your employee for a day, as a reward. They still do their work of course, but with their feet up on the desk (and yours in the cubicle).
6. Primo Parking. This is an old-school reward that has been around forever ... because it works. It's a great form of public recognition.
7. Flip Flop Day. Casual Friday has turned into casual every day. Change things up by allowing flip flops as a fun way of recognizing success.
8. Day Off Pass. An extra day off from work always helps, and is even better when employees can pick the day and get paid to boot.
9. Tour Time. Take your employees for a tour of one of your vendors or suppliers' facilities. It’s a cool way to learn more about who you work with, and can be as fun as a field trip was in grade school days.
10. Presidential Seal. Create a formal letter recognizing your employee’s achievement. Sign it and use the company’s seal to give the letter something extra. If you really want to do it right, frame it too.
11. Let Them Eat Cake. Any celebration is that much better when there's yummy cake.


Photo: Thinkstock 
12. Standing O. Get all your employees together in the same room. Really pack them in. Then invite in the employee you're recognizing and give him or her a standing ovation.
13. Gourmet Coffee. Replace that burnt coffee pot with a selection of gourmet coffees.
14. Breakfast from the Boss. Bring in a catered breakfast for your team, and designate yourself as the main waiter, serving all your wonderful employees.
15. Rented Wheels. Rent a nice car for a week and give it to your employee.
16. History Lesson. Have the local historian take your company for a tour of your town or city. Share the history of where you are today and what used to be there.
17. Company Scrapbook. Create a scrapbook as your company grows over time. Each month start off a scrapbook page with the employee you're recognizing. Their names will be part of history, literally.
18. Monopoly Money. Reward employees with your own custom phony money (or use Monopoly money) and allow them to redeem it for gifts at the end of each quarter.

19. Wall of Fame. Create a wall of fame for each recognized employee. Be sure to write below their picture what they did that you're recognizing them for.

20. Helmet Stickers. 
Get a football helmet from each employee’s alma mater and put it on their desk. Every time they do something great, give them a helmet sticker ... just like the college sports teams.

21. The Amazing Office. Set up one amazing office in your building (yes, better than yours). Each month, for an entire month, give the employee you're recognizing the office to work out of.

22. The Morphing Trophy. We did this at my first company and it always brought fun, laughter and recognition. Get a big trophy and give it to the employee you are recognizing for the week. At the end of the week, they must return the trophy but they need to add one thing to it. (You would be shocked how many things can stick to a trophy.) Then next week give it to the next winner. At the end of the year, you'll have a trophy with 52 things stuck to it. It looks hysterical and has lots of memories. At the end of the year, retire the trophy and put it in your reception area. Do it every year.


Photo: Getty Images 
23. Wax On, Wax Off. Have their car professionally detailed while they're at work. If you want to save a lot of money, do the detailing yourself.
24. In the News. Tell your local paper about your employee’s success. Also tell the paper in the town where your employee lives. Run a press release too. Then, when it gets printed in the paper, get the article framed and give it as a gift to your employee.
25. Dump It. Let your employee ditch one project they like the least, and you do it yourself instead.
26. Name the Room. Name an office, lounge, conference room or any room in your office building after the employee. Be sure to put a plaque right outside the room.

27. Massage. Have a massage therapist come to your office for the day and give every recognized employee a chair massage. A chiropractor isn’t a bad idea either
28. The Oscars. Have your own annual Academy Awards ceremony (or name it whatever you like). This can be done in the summer to offset the annual winter holiday parties.
29. Life Coach. Hire them a life coach to work on whatever they want. Just be careful with how you present this one. You want to make sure it's seen as a reward and not a hidden agenda to fix something.
30. Adult Education. Pay for one adult education class of their choosing. My preference? Cooking class.
31. Any Magazine. Give them a subscription to any magazine of their choosing. This gift shows up monthly (or weekly) all year round, reminding them of your appreciation.
32. Picnic Basket. Get them a catered lunch, in a picnic basket, and invite their spouse or significant other to enjoy it with them during an extended lunch break.
33. Recognition Circle. Get each employee to write something positive about the person you're recognizing on a piece of paper. Either give them the box of collected sayings or frame them for the person.
34. Commute on Me. Give them a gas card (or public transportation passes) to cover a month’s worth of travel expenses.
35. Movie Time. Give them a pair of movie tickets, and the time off to go see their favorite movie during the workday.
36. Support the Girl Scouts. Have the company buy dozens of boxes of cookies from your employee’s daughter (assuming she's in the Girl Scouts) and give out the boxes to all the other employees at the office. You shouldn’t be eating that much anyway.

37. Just Say it. The words “thank you” are powerful. And sometimes all you need to do is to say it sincerely. 
38. A Concert Shout Out. Get your employees tickets to see their favorite band in concert. Call the event in advance and see if you can get the band to give them a shout out during the concert. (You'd be surprised at how many bands are willing to do it.)
39. Family Thank You. Take the thank you card to a whole new level, and write a card to the employee’s entire family explaining how much you appreciate your colleague.
40. Pick a Door. Put a gift in each of three offices and close the door. Then have the employee choose the door they want, and they get the gift behind it.  
41. Collectors' Paradise. Find out what your employee’s passions, hobbies or interests are. Then give them a gift in that field. Collectors are the easiest to do this for—they always love to get that perfect coin or stamp, etc.
42. Thank You Video. Create a video recognizing your employee. Post it on YouTube for your employee and anyone they want to share it with.
43. Flowers. The all-time classic method of giving recognition. Add a handwritten thank you note for an important personal touch.
44. A New Chair. Many employees sit for at least eight hours a day. Reward their exceptional effort with a new comfortable, supportive chair.
45. Sticky Notes. Post a sticky note on their monitor, saying thanks and saying why. Simple, but effective, when it's authentic.
46. Email Everyone. I'm not a big fan of email blasts. But in this instance, I encourage it. Send an email to the entire company explaining how impressed you are by your employee for going above and beyond.
47. Double Time. Double the time of their breaks for a full week—double the lunch break, coffee break, any and all breaks.
48. Lottery Tickets. Give them the chance to win millions, and it only costs you one dollar.
49. Have Their Home Cleaned. Who wants to come home from work, to work on the home. Hire a maid to clean their house for a full year!
50. Bring the Pooch. Allow your employee to bring their dog (or other pet to work). Be sure that a crate or cage comes along. A snake slithering around or a bird landing on your colleague’s head may not be well received.


Photo: Getty Images 
51. Donuts. While not necessarily a healthy choice, they're super yummy. Bring in donuts for the team you're recognizing.
52. Company Newsletter. If you have one, feature them in it.
53. Team Jerseys. Recognize team players with a team jersey from their favorite sports team, and their name on the back.
54. Singing Telegram. Have a gorilla, or whatever creature is available, show up at work with a singing telegram about how great the employee is. Videotape the song and response and post it on YouTube or your website.
55. Say it with Fruit or Cookies. Send the employee a bouquet of healthy, edible fruit or cookies. Have it delivered to their home, or in the office if they live alone.
56. Name a Beer After Them. Microbreweries will often brew a small run of beer, slap a label with your employee’s name on it—Magnificent Mike Michalowicz Mead for instance. Or create a label and stick it over their favorite beverage.
57. King for a Day. Buy an elaborate costume jewelry kind of crown (the more elaborate and gaudy, the better) and crown them during a morning meeting. “King” for the day privileges includes primo parking, free lunch at their desk and the option to leave 30 minutes early from work.
58. Their Own Personal Assistant. Hire a temporary assistant for the day, week or month to help them with whatever work tasks they have, from filing to answering phones.
59. Ice Cream Party. There’s nothing like an old-fashioned ice cream party where the teams you’re appreciating make their own sundaes and desserts from a selection of ice cream and toppings.
60. Popcorn. Buy or rent an old-fashioned freestanding popcorn popper. Break it out to pop popcorn only when it’s time to recognize someone, or show appreciation for a great effort by a team.
61. Music. If your business has music playing in the background all day, show your appreciation by letting the employee you’re appreciating select the music for the day. I personally suggest some Iron Maiden, Def Leppard and Judas Priest.  
62. Appreciation Jar. Have every employee write up a gift, privilege or recognition they’d like (or just use this list) and then put each item into an Appreciation Jar. Have the employee being recognized select their method of appreciation at random from the jar.
63. Talking Plaque. Buy one of the talking photo frames available at any photo store. Place a certificate of appreciation inside, and record a personal 10-second message of appreciation in your own voice.
64. Talking Fish. If you’re not a fan of plaques, hire someone to rewire a “Billy Bass” or “Frankie Fish” talking fish to convey your gratitude with attitude.
65. Letterman Jackets. Get employees vests or jackets with the company name or logo on it, but then award them “letters” or bling. (Think restaurants whose waiters show off their awards and pins on their vests.)
66. Employee of the Month. This can be a great way to show recognition as long as employees take the award seriously and it comes with real perks, like a parking space for the following month, flexible hours or a longer lunch hour.
67. Founder’s Wall. Instead of just a wall of fame for employee photos, create a wall that not only recognizes employees with a photo, but with a short description and timeline of how they have contributed to where the company is today. Make sure you can add to their accomplishments as they keep succeeding.
68. Appreciate Personal Wins. Don’t just appreciate employees for what they do for you. If they’ve achieved a milestone in their lives outside the office, celebrate with them in the office. Decorate their cubicle with balloons and cards when they achieve a personal win, like completing a marathon, winning a tournament, losing weight (if they’ve been public with their diet), having a baby, buying a new home or graduating from a class.
69. Celebrate Birthdays. Everyone likes to be remembered on their birthday. Celebrate with a cake, or take the whole office to lunch and buy the birthday person’s lunch.


Photo: Getty Images
70. Performance Hours. If employees consistently perform well, give them “performance hours” tokens they can redeem to take a longer lunch, run errands or use for personal reasons.
71. Special Causes Board. Employees almost always have a special cause or group they support. Show your employees you appreciate their outside interests and causes by allowing them to post flyers, cards, photos and forms on the special causes board.
72. Acknowledge Employees in Meetings. When an employee has a good idea, performs above and beyond, secures a big win or account, or does something worthy, acknowledge him or her by name in meetings.
73. Dinner With the Boss. There’s no better way to get employees' attention than to take them and their family to dinner. Make it a nice restaurant of their choice from a list you provide.
74. Put it in the File. After you write a personal, handwritten note to the employee, thanking them for their effort or accomplishment, put a photocopy of the note in their file.
75. Compressed Workday. Pick a day and let employees come in late and leave early.
76. Random Gifts. Leave token gifts like Starbucks Cards, movie tickets, candy bars or gift cards on employees' desks with a note that says, “Thanks for all your hard work. I noticed!”
77. Show and Tell. Set aside one day a month for “Show and Tell.” Cater in lunch and have employees bring in something from home (hobby, accomplishment, video game, etc.) to “show and tell” other employees about. It doesn’t have to be a trophy, just an interest—such as a cake recipe (with samples), a new video game.
78. Family Day. Set aside one afternoon a month for employees to bring in family, kids or friends for a pizza party, or other activity. Set up tours of the company so their family can see where they work and what they do.
79. Employee Appreciation Barbecues. Hold an annual summer or fall barbecue to recognize employees and their families.
80. Music Video Day. Have employees create a music video (shoot, edit and show) of their favorite song. The Gangnam style song has about run its course, but the Harlem Shake and whatever is trending on YouTube is fun.
81. Training and Conferences. Provide training opportunities to high performing employees, or send them to an annual conference they’d enjoy.
82. Website Recognition. Post appreciation of employees on your website. Have a photo and description of what they’re being recognized for, and any client or customer testimonials as well.
83. Training Videos. Put high-performing employees in your training videos. This gives them exposure to the rest of the company and says “job well done” at the same time.
84. Talk About Anything But Business. Take time to have coffee with your employees. Chat, ask them about their life and family. Take time to get to know them as people. It shows you’re interested and that you appreciate them for being them.
85. Know Everyone’s Name. Learn everyone’s name and use it. Say, “Thank you, Carol,” not just “Thanks!” People love to hear their names, so use them and use them often, especially when acknowledging their efforts and achievements.
86. Nicknames Rule. Use name placards with fun titles and nicknames of the employee’s choosing. You can even post or paint the names in their parking spots as one computer game company did, naming the parking spots after characters from the Lord of The Rings.
87. Learning Library. Create a “learning library” of CDs, DVDs and audiobooks that employees can check out. Show your appreciation to employees by allowing them to select new programs based on what they want to learn.
88. Lifetime Achievement Award. Every time you hire new employees, have a “Lifetime Achievement Award” luncheon where you acknowledge every employee who has been with the company for a year or more. This lets the newbies in on what's valued and who gets valued. It sets expectations and provides a benchmark for future efforts.
89. Brag Boards. Create a board where anyone in the company can post a “brag” about their accomplishments or that of a co-worker.
90. Stock the Kitchen. Most places stock coffee, creamer and sugar for employees, but go a step further. Fill the fridge with juice, sodas, water, fruit and nuts.
91. Innovation Day. Have a half day a week where employees can work on a personal project, or volunteer at the organization of their choice.
92. Tuition. Offer to pay a percentage of the employee’s tuition, or books and supplies, for all courses related to their job, dependent upon their length of employment or level of work.
93. Taxi Service. Many employees have spouses, babysitters or other people dependent on them for rides. Offer free taxi service for people who depend on your employee when you’ve asked them to work late.
94. Perk Your Part-Timers. Not all employees are full-time workers, but treat them like they are. Acknowledge their contributions. If they’re temps, write notes to their representative about their great work.
95. Thank the Entire Family. When the employee has to go out of town, work longer hours or weekends, or is taken away from their family for work-related reasons, write a note, send flowers or gift cards for dinner out to the employee’s spouse, acknowledging the family’s sacrifice and thanking them for it. Tickets to a local amusement park or museum for the entire family (including your employee) to visit for the day is also a nice gesture.
96. Start a Team. It doesn’t matter if it’s summer softball, bowling or badminton. The idea is to build relationships, camaraderie and respect among employees.
97. Name it and Claim it. Name a product or award after a really stellar employee who invents, suggests or comes up with a new process, product or service.
98. Time. Give the gift of your time and attention. Offer to mentor or coach employees you truly appreciate.
99. Close Early or Open Late. Close down unexpectedly early one day and give everyone the afternoon off. Or, open half a day later after a holiday like St. Patrick’s Day.
100. The Dunk Machine. Set up a dunking machine in your parking lot. Go sit in there (in some business attire you don’t mind getting destroyed), and let your employees throw softballs at the target. It's a fun release for them, and shows you're one of the team.
101. Show Respect in Everything You Do and Say. All your hard work and appreciation of an employee can be destroyed in an instant if you yell at them, disrespect or belittle them in private or public. They won’t remember the 100 times you said you appreciated them. They’ll remember the one time you didn’t. Bite your tongue, smile and always show respect regardless of your personal feelings.
Apurv Bhansali
apurv15@ediindia.org

Leader v/s Boss


How a boss/leader is perceived by the workers- workers working for the boss vs workers working with a leader. Would you rather have a boss or a leader? Likewise if you could choose, would you be a boss or a leader?

Apurv Bhansali
apurv15@ediindia.org

Interaction With Mr Pranav Parikh MD Parikh Packaging


Interaction with Mr. Pranav Parikh made us realize that even a person born with golden spoon have to face this tough world. Money is not everything, each one of us has to face challenges to achieve success.
A person with passion and strong belief can make very strong impact on the world. These lines are very apt for Mr. Pranav Parikh. After completing Master in USA, he and his brother wanted to start there own venture in India. Being new in the market, they faced many problems at initial stage, but there hard work and perseverance could not delay there success for long. They always believed in doing things differently. Today they have a very huge clientele which is spread over various countries of the world but still they give equal importance to small clients as they were the one who helped them climb the ladder. They believe that one should be always ready to face the challenges and think outside the box.

Apurv Bhansali
apurv15@ediindia.org

Friday, July 26, 2013

Amazon Q2 revenue up 22% at $15.7B, international sales lag expectations

amazonAmazon.com Inc forecast disappointing income and revenue as it grapples with a weaker international market, overshadowing improving profitability and economic conditions in the United States.
Amazon and other multinational corporations are being pressured by a declining European economy that is sapping consumer spending across the region. While North American sales jumped 30 per cent in the second quarter, its international segment did not earn a profit and revenue rose 13 per cent.
“International was far weaker than expected and that plays into the guidance. We’re seeing weakness on the international side that the domestic business isn’t able to make up,” said Scott Tilghman, an analyst with B. Riley & Co.
“The European consumer has been weak. It’s a tremendous opportunity for Amazon. International margins have been constrained. If they can get to 5 per cent profit margins or more, that’s tremendous operating leverage. But you need the macro environment to be better.”
Amazon shares fell 2.8 per cent to $294.95 in after-hours trade. The stock hit a record of $309.39 on July 16.
After the bell on Thursday, the company reported a second-quarter net loss of $7 million or 2 cents a share, compared to a profit of $7 million or a penny a share a year earlier. Revenue in the latest quarter was $15.7 billion.
The largest Internet retailer had been expected to earn 5 cents a share on $15.73 billion in revenue in the latest quarter, according to Thomson Reuters I/B/E/S.
Amazon also issued a cautious third-quarter outlook. It forecast revenue of $15.45 billion to $17.15 billion and operating results ranging from a loss of $100 million to a profit of $275 million.
Wall Street was looking for third quarter revenue of $17 billion and operating profit of $390 million.
Amazon is trying to turn itself from an online retailer into a broader technology company offering consumer gadgets like tablets and cloud computing services to corporations and governments. It is doing this while expanding in competitive overseas markets such as China.
It is spending billions of dollars on this expansion, which has taken a toll on its earnings. However, investors have so far trusted that Chief Executive and Founder Jeff Bezos can pull it off and produce big profits in the future. That’s help pushed Amazon shares to new records.
International Struggles
Amazon’s International business broke even in the second quarter, leaving it nursing a $16 million operating loss in the first half of this year.
Revenue generated by the company’s International media business, which includes books, music and movies, shrank 1 per cent in the second quarter, compared to a year earlier.
Overseas, Amazon is in the early stages of a transition from physical media products like books and CDs to digital media such as e-books and MP3s, Chief Financial Officer Tom Szkutak said.
This shift requires lots of up-front investment, developing and marketing gadgets like the Kindle Fire tablet for new markets and buying digital content to sell through such devices. The company is also investing heavily in fulfillment centers in relatively new countries like China and Spain.
Szkutak said the Internet retailer is spending heavily on digital video content – in Europe as well as the United States – ahead of the holidays. This spending is partly responsible for a cautious third-quarter forecast, the executive added, during a conference call with reporters.
Strength in Amazon Web Services
Amazon’s domestic business performed much better in the second quarter. North American operating profit was $409 million, up from $344 million a year earlier.
The company’s cloud business, Amazon Web Services, grew strongly. Amazon includes results from this unit in its “Other” segment for reporting purposes and revenue from this area jumped 61 per cent to $892 million in the second quarter.
“AWS continues to power through, driven by broader adoption from larger enterprises,” said Ben Schachter, an analyst at Macquarie. “And that certainly helps the gross margin.”
Amazon does not disclose AWS profits, but Wall Street reckons the business has higher profit margins than the company’s main retail business. So as AWS grows, Amazon’s margins expand.
Amazon’s gross profit margin – a closely watched measure of earnings that excludes several expenses – was 28.6 per cent in the second quarter, up from 26.1 per cent a year ago, according to Tilghman.
“That’s very high – higher than anybody was looking for,” the analyst added.
AWS growth helped, but also more sales of higher-margin digital products and the expansion of the company’s online marketplace for third-party merchants.
Apurv Bhansali
apurv15@ediindia.org

HUL Q1 sales disappoint as volume growth slows

Personal care products unit has been a laggard for the firm while packaged food and beverages businesses were the best performers in terms of both sales and margin growth.
The country’s top FMCG company Hindustan Unilever Ltd reported 7 per cent net sales growth in the first quarter ended June 30, 2013 accompanied by slower volume growth both sequentially and over the year ago period. Net sales grew to Rs 6,787 crore for the quarter led by 16 per cent growth in beverages business as also 8 per cent growth in its key soaps & detergents business.
The firm also announced a top management shuffle 
Its domestic consumer business grew 7.1 per cent with 5.9 per cent growth in home and personal care unit and 12.5 per cent growth in food business.
Overall volume stood at 4 per cent as against 6 per cent year-on-year growth clocked in Q4 FY13. The company's operating profit was up 12 per cent with 70bps margin expansion.
HUL scrip tanked over 5 per cent ahead of the results announcement only to recover partially and was quoting at Rs 661, down 3.7 per cent as of 3.30 PM on the BSE in a weak Mumbai market on Friday.
The firm saw net profit skid 23.4 per cent to Rs 1,019.25 crore over the year ago period. However, the firm’s profit in the same quarter last year was boosted by an exceptional item from sale of assets worth Rs 607 crore which shrunk to a one-time gain of Rs 106 crore last quarter. Profit after tax from ordinary activities before exceptional items net of tax and prior period adjustments for the quarter stood at Rs 885.13 crore, up 3.6 per cent over Q1 of FY13.
Soaps & Detergents which contribute around half of total business of HUL, reported 8 per cent growth in sales and improvement in margins. The firm said Skin Cleansing sustained its strong performance, registering another quarter of double digit volume growth. Lifebuoy, Breeze, Dove and Lux delivered robust volumes. The quarter witnessed price deflation as the benefit of lower commodity costs were passed on to consumers.
In laundry, Surf and Rin maintained double digit growth as they continue to drive category upgradation. The liquids portfolio was expanded with the launch of Surf Excel Detergent Liquid. Household care grew in double digit and Vim Anti Germ Dishwash and Domex acid based toilet cleaners were introduced.
Personal care products grew 2 per cent in a slowing market though the firm reported double digit growth in hair, oral & colour cosmetics business. The unit, however, saw margin pressure last quarter.
In Skin Care, Ponds, Lakmé and Dove delivered double digit underlying volume growth. Fair & Lovely maintained its strong position in the mass skin lightening segment. However, it was impacted by a challenging market context and a strong base effect according to the firm.
Hair care had another good quarter with volume led double digit growth. Sunsilk and Clinic Plus sustained robust growth momentum and Dove growth was led by bottles.
Oral care segment registered double digit growth driven by the Close Up and a step up on Pepsodent Expert Protection.
Colour cosmetics did particularly well, delivering stepped up double digit growth across both Lakmé and Elle 18 brands. Lakmé continues to strengthen its position in premium make up driven by the growing momentum on Absolute and ‘9 to 5’ which nearly doubled sales last quarter.
In skin care, Ponds BB Cream and Lakmé CC Cream were introduced and the facial cleansing portfolio was further strengthened with a new Lakmé Fresh Fairness Clean up range. Hair care saw the launch of Sunsilk Radiant Shine, Dove Cellular Repair and TRESemmé Keratin Smooth.
Beverages & Packaged Food
Beverages grew 16 per cent with tea delivering one of its strongest quarters with double digit growth across all key brands. Taaza in particular had one of its best performances last quarter, on the back of a reinforced marketing mix.
Packaged Foods grew 5 per cent driven by double digit growth in Kissan and Knorr Soups. The Knorr portfolio was expanded with the launch of the ‘Easy to Cook’ range of meal makers. Kwality Walls grew modestly, impacted by a slowdown in the ice cream market.
Overall both the packaged foods and beverages unit, which are smaller part of the business mix of HUL, saw sharp margin expansion.
Harish Manwani, chairman commented: “While there are near term concerns particularly around slowing market growth, we are confident of the medium to long term growth prospects of the FMCG sector and our strategy of driving growth and profitability through innovation and operational excellence.”

Apurv Bhansali
apurv15@ediindia.org

Thursday, July 25, 2013

"The Secret of Leadership"

Have you heard the story of the Zen master and the dogs in the temple? It has a message that has changed lives.

While travelling through a little Himalayan kingdom,the master decided to visit the temple there.As he walked in through the temple gates with his local guide,he saw two large,ferocious dogs chained to the iron grilles at the entrance.They were straining at their chains,their tongues were wagging,the saliva was dripping and they were barking non-stop.Just the kind of sight that could instill fear in anybody's mind!

Don't worry,master! said the helpful guide.'I know they look really scary.But the chains are very strong and there is no way the dogs can break free!" The master continued to walk down the long courtyard towards the main temple.Even as he tried to concentrate on the temple's history that the guide was narrating,he kept looking back at those dogs.The sound of their barking seemed to be echoing in his ears.

And as he looked back one more time,he could not believe what he saw.The dogs had broken free from their chains and were running towards him.Instantly the master started to run too directly towards the dogs! Yes he began to run not away from the dogs,but towards them! And guess what happened? The dogs were so surprised to see the master running towards the gate!

Think of those ferocious dogs as symbolizing the biggest fears in your life.What do we all tend to do? We tend to run away from our fears.Confront your fears,embrace them and you will find that you can conquer them!

Source of the article:
From the book "The Secret of Leadership" by Prakash Iyer (Foreword by Rahul  Dravid)


Amarnath Shetkar
amar15@ediindia.org

Wednesday, July 24, 2013

Big Data intelligence startup Minetta Brook raises $2M from Naya Ventures & TiE Angel Group Seattle

Minetta Brook Inc, a Big Data intelligence startup, has come out of stealth mode and announced it has raised $2 million (Rs 11.8 crore) in seed funding from TiE Angel Seattle or TAGS, an angel investment group, and naya ventures LP, an early-stage venture fund. TAGS led the seed funding round. The company also closed a convertible note round in February this year, which was led by Keiretsu Forum Northwest , an investment community comprising angel investors.
As part of the investment, Gowri Shankar, venture partner at Naya Ventures, will join the board of Minetta.
Company Abstract
Founded in 2011, Naya Ventures is a $50 million early-stage investment firm that invests in India and US-focused companies operating in mobile and cloud space. It invests anywhere between $250,000 and $3 million in startups and has already funded companies such as BoxFish, GlobalOutlook, Glympse and Zoomingo. Headquartered in Dallas, the company has its India office in Hyderabad. Naya Ventures was founded by Dayakar Puskoor, executive chairman at Motivity Labs and at GlobalOutlook; Prabhakar Reddy, an active angel investor and board director at GlobalOutlook and Motivity Labs; and Gowri Shankar, former president and CEO at SinglePoint.
Commenting on the investment, Shankar said, “We are focused on investing in early-stage companies that can use our operational expertise and ecosystem knowledge. Minetta Brook’s team developing a Big Data intelligence platform was the perfect fit for us.”
“The investment allows us to bring to customers our intelligence engine with applications across multiple sectors. Our first application targets the financial sector and will change how news, market and reference data are synthesised to provide hyper-relevant, real-time information to traders and analysts,” said Deepak Bharadwaj, co-founder and CEO of Minetta Brook.
The Seattle-based startup was founded in early 2011 by Bharadwaj and Prabhu Venkatesh (president). Prior to setting up Minetta, Bharadwaj had founded Aelego, a global services firm where he also served as MD and CEO. Earlier, he had served in senior roles at Aqva Group (president) and Microsoft (general manager), and also worked at companies such as Sun Microsystems and Axil. He holds a BS degree in Electrical Engineering from Birla Institute of Technology and an MS degree in Computer Science from University of Oklahoma.
Venkatesh had earlier worked at several companies including Banc of America Securities LLC, GemStone Systems, Bloomberg, Salomon Brothers, Sound Financial Technologies, Telekurs Financial, Convergent Technologies and Fortune Systems, LLC. He holds a BS in Electrical Engineering from Birla Institute of Technology and an MS in Aerospace Engineering from Indian Institute of Science.
The company’s core technology is its Big Data intelligence platform that enables fast discovery of relevant information from streaming structured and unstructured content. The technology development has taken around two years and the company is now planning to transition from beta to revenue mode. Minetta will be shortly announcing its first product running on its Big Data intelligence engine to rope in paid customers.

Apurv Bhansali
apurv15@ediindia.org

Industry wants seed culture, SEBI prefers venture capitalism

In the current economic situation, where the government is trying hard to push for reforms, it is important to appreciate the role played by angel investors in promoting a culture of entrepreneurship.

In recent years, the creation of a viable ecosystem for startups has been a key agenda of the government and the regulators alike. The notable initiatives in this regard include the framing of an umbrella regulation for alternative investment funds – the SEBI (Alternative Investment Funds) Regulations, 2012 (SEBI AIF Regulations) – aimed at providing tailor made concessions to different categories of investment funds, the grant of tax pass through status to venture capital funds (VCFs) and the recognition of contributions made by companies to certain technology incubators as corporate social responsibility expenditure under the proposed Companies Bill, 2012.
Yet the run up to the recognition of angel investors as a special class of investors has been full of surprises for the angel investor community, perhaps the biggest being the introduction of a provision in the Income Tax Act, 1961 to tax funds received by unlisted companies from residents at a premium as income from other sources, unless such funds were raised from a VCF. The intention of the provision was to curb circulation of unaccounted for money; however, the same had an unintended adverse effect on the ability of startups to raise funds from angel investors. Subsequently, it was acknowledged by the government that angel investors bring both experience and capital to new ventures and accordingly, in the budget speech of 2013-2014, it was announced by the finance minister that SEBI would prescribe requirements for angel investor pools by which they could be recognised as VCFs.
In line with such an announcement, SEBI in its board meeting on June 25, 2013, has approved amendments to the SEBI AIF Regulations, permitting the inclusion of angel funds within the definition of VCFs. This move has been largely welcomed by the investor community as a positive step towards recognising angel investors as a distinct asset class and providing them with special concessions as are available to other categories of investors, which are registered with SEBI as alternative investment funds (AIFs). However, the salient features of such amendments contained in the press release issued by SEBI suggest that it may well fall short of industry expectations, as it appears that pooling of funds by angel investors would be a pre-requisite for availing of benefits proposed by SEBI.
In this context, it may be worthwhile to point out that angel investors are generally understood to mean high net worth individuals, who provide initial capital to startups or persons with innovative business proposals and assist them in implementing their business proposals. Apart from providing the initial risk capital, the essential characteristic of an angel investor is the mentoring and guidance provided to startups, by bringing on board industry experience, domain knowledge and industry connections to help the startup mature into a viable business venture. Further, the key difference between a pooled fund and an angel investor is that the decision to invest is taken by the angel investor alone and investments are made by the angel investor solely out of its own funds.
As per the release, angel funds proposing to seek registration with SEBI, as a sub-category under Category 1- Venture Capital Funds, would be required to have a corpus of at least Rs10 crore (as against Rs 20 crore for other AIFs) and minimum investment by an investor shall be Rs 25 lakh, which may be accepted over a period of maximum three years. Since SEBI envisages a pooling of funds, like other AIFs, SEBI expects such angel fund to have a sponsor/ manager, which will have a continuing interest in the angel fund of not less than 2.5% of the corpus or Rs 50 lakh, whichever is lesser.
The release further mentions minimum qualifications and net worth requirements for individual angel investors and corporate angel investors. Individual angel investors would be required to have net tangible assets of at least Rs 2 crore, whereas corporate angel investors would be required to have a minimum net worth of Rs 10 crore or be a registered as an AIF/VCF. Further, individual angel investors would be required to have early stage investment experience, experience as a serial entrepreneur or be a senior management professional with 10 years’ experience.
Accordingly, it appears that SEBI’s intention is to limit the participation by individual angel investors and corporate angel investors in angel funds registered with SEBI, with their attendant benefits, to only those investors that fulfil the aforesaid eligibility requirements. Angel investors that do not qualify for participation in such funds may invest in startups directly without the tax and other benefits. While the intent behind drawing such distinction between different sets of angel investors seems clear, the rationale behind imposing such net worth and qualification requirements, thereby limiting access to capital, may be clarified given the (relatively smaller) minimum investment for angel investors and experienced fund managers to oversee investments by the angel fund.
Similarly, the proposed amendments place several restrictions on the nature of the investee companies in which angel funds may invest. For example, angel funds can only invest in companies, which are incorporated in India and are not more than three years old, have a turnover not exceeding Rs 25 crore and are unlisted. It is appreciated that SEBI is seeking to provide adequate safeguards to ensure that only those enterprises, which inspire growth potential but do not have easy access to capital should be permitted to raise capital from angel funds. However, certain other investment conditions and restrictions applicable to angel funds, as per the release, appear to curb the investment freedom an angel investor would reasonably expect.
To illustrate, angel funds cannot invest in companies in which they have a family connection. This requirement is somewhat flawed inasmuch as being the initial round of funding, the chief source of funding for a startup generally comprises family and friends. Furthermore, in the context of pooled funds, it may be noted that the SEBI AIF Regulations provide for restrictions on investments by AIFs in associate companies to avoid any conflict of interest vis-à-vis the investors in a particular AIF. That said, such restriction is subject to waiver by 75% of investors by value of their investment in such AIF. Hence, it is not quite clear why angel funds should be made subject to a more stringent requirement in respect of investments in related entities.
Again, the minimum investment threshold of at least Rs 50 lakh and an upper ceiling of Rs 5 crore appear to be against the investment strategy of angel investors. Angel investors typically provide initial capital to operationalise the project and not for purposes of expansion, which requirement is typically met through venture capital and private equity funding. Further, such investments are required to be held for three years, as per the proposed amendments. In this regard, it may be mentioned that often, if a startup performs well, it is in a position to access venture capital funding within one to three years of the angel investor funding and inter alia provide an exit opportunity to angel investors.
In view of the above, it is important that SEBI acknowledges that the mere ability to set up a pooling vehicle with a relatively smaller corpus and minimum investment threshold may not necessarily encourage angel investors to come forward and set up angel funds (as opposed to VCFs, for instance), particularly given the investment conditions and restrictions applicable to angel funds, including the conditions pertaining to the investment size and lock-in restrictions.
One would need to await the final text of the proposed amendments to the SEBI AIF Regulations to understand better the extent to which SEBI seeks to regulate angel investor funding. Needless to say, in the current economic situation, where the government is trying hard to push for reforms and promote a culture of entrepreneurship, it is important to appreciate the role played by angel investors in promoting such culture and to repose necessary confidence in the angel investor community, which remains the mascot of innovation, entrepreneurship and excellence for aspiring entrepreneurs

Apurv Bhansali
apurv15@ediindia.org

Wednesday, July 17, 2013

Pearson and Village Capital have entered into a partnership to support and fund EDUpreneur's in India

Pearson and Village Capital have entered into a partnership to support and fund education ventures in India. The initiative tries to support entrepreneurs who provide education solutions to the less privileged students. Winners would be entitled to $75000 and would be selected through the peer review model developed by Village Capital.
Pearson, had launched a $15 Mn Pearson Affordable Learning Fund which invests in quality education for poorest families in the world last year. It had made its first investment last year by investing in Omega Schools, a privately held chain of affordable, for-profit schools based in Ghana.
The fund in collaboration with Village capital will offer Indian entrepreneurs to receive seed investment through a programme. The programme involves participation by 16 startup companies who would be offered mentoring advice from other entrepreneurs, investors and professionals. These entrepreneurs will then assess one another against six criteria, with the top two ranking companies receiving up to $75,000 each.
The winners would receive the capital from the corpus created by Pearson and Village capital that have committed $100000 and $50000 respectively.
Village Capital, based in the US, specialises in using the power of peer support and mentoring to build investment-ready companies and to allocate capital through peer selection.Village Capital has supported nearly 300 mission-driven entrepreneurs across six continents worldwide. It has raised more than $30 million, created over 5,000 jobs, and served over four million customers. It has supported 60 entrepreneurs through four programs in India, investing in eight innovative enterprises.
Village Capital has also teamed up with Arohan Ventures to form the Centre for Innovation, Incubation and Entrepreneurship at IIM- Ahemdabad to accelerate ventures operating in 5 sectors namely mobile/IT, health, agribusiness, education and livelihood enhancing technologies.
Pearson is a global learning company, providing educational materials and services, business information through the Financial Times Group, and consumer publishing through the Penguin brand. Pearson serves learners of all ages around the globe, employing 41,000 people in more than 70 countries.
It publishes across the curriculum under a range of respected imprints including Scott Foresman, Prentice Hall, Addison-Wesley, Allyn and Bacon, Benjamin Cummings and Longman.
Recently in this space; Pearson had fully acquired TutorVista; Digital learning solutions provider - Learnpedia Edutech Solutions raised undisclosed amount of angel investment from Ixora Ventures and a consortium of angels; Kaizen and German Media Company – Bertelsmann co – invested R22 Cr in Authorgen Technologies which operates WizIQ.

Apruv Bhansali
apruv15@ediindia.org

Social Tech Firm - Gram Vaani Raises Funds

Gram Vaani, a social tech company has raised $500,000 from undisclosed investors. The funds will be used to expand the team of the company.
Iamwire stated the  funds have been invested by Indian angel investor  along-with few other investors.
Founded in 2009 by Aaditeshwar Seth and Mayank Shivam, Gram Vaani is a social development organization building open-source technologies for community media in rural areas. Its flagship product is a radio automation system called GRINS - Gramin Radio Inter-Networking System. The GRINS box is a plug-n-play server to run a community radio station.
It also has vAutomate suite of voice applications which is being used by several partners, including PATH (community mobilization), CEDPA (health accountability), Inventure (financial profiling of people), Video Volunteers (self help group surveys). Its Mobile Vaani network which according to the company has seen huge uptake in Jharkhand and has found several sponsors, including Sesame (education) and Oxfam (gender equality).
The company caters to more than 2 Mn users in over 15 Indian States, Afghanistan, Pakistan, Namibia and South Africa.
Indian Angel Network has funded 50 start-ups across multiple sectors like IT, mobile, Internet, healthcare, e-commerce, gaming and education. Its portfolio includes - Aurus Network, Alma Mater, Vienova, Druvaa Softwares, Kwench, Gamiana among others.

Recently, it announced setup a base in Kolkata to fuel startup ecosystem in the east. 
Compiled by 
Apruv Bhansali
apruv15@ediindia.org
The DICCI SME Fund, a venture capital fund initiated by the Dalit Indian Chambers of Commerce and Industry has received SEBI’s approval to raise R500 Cr for 10 years through close ended fund, Indianexpress states.
According to DICCI President, Milind Kamble, SIDBI has already committed R10 Cr while talks with other banks and financial institutions are on. The plan is to create entrepreneurial role models within SC/ST communities that will attract educated SC/ST youth to the entrepreneurship.
The Varhad Group is the fund manager of DSF. Prasad Dahapute is the founder of the Varhad Group and MD of Varhad Capital.
Fund plans to raise money from banks and HNIs.This fund for Dalit entrepreneurs follows the new public procurement policy of the government which mandates that 4% of all procurement by public sector undertakings and government departments must be from SMEs owned by scheduled caste and scheduled tribe entrepreneurs.
This is Category-I SME Fund and aims to raise R160 Cr in the first closure.It aims to finance around 25 Dalit entreprenuers initially. Along with financing their projects, it would also support them to grow and exit when they become of running the business smoothly.Fund is looking forward to create four kinds of social impacts while generating internal rate of return of over 25%: Financial inclusion for SC/ST SMEs through access to equity capital markets, economic empowerment through wealth creation, employment creation for SC/ST youths and capacity building through the investee companies.
Business houses like Tata Group, Thermax, Godrej, and Forbes Marshall were keen to help DICCI in setting up the fund. A number of companies including a pipe manufacturing unit have approached DICCI for funds.

Compiled by 
Apurv Bhansali
apruv15@ediindia.org