can you solve this entrepreneur problem
DESCRIPTION
A simple entrepreneurial problem posed as an exercise on achieving goals. This presentation contains an easy example of two cases to illustrate the simple route as well as the complicated route to success.TRANSCRIPT
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Can you solve…
Alok Rodinhood KejriwalFounder – 2win group &
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Can you solve
25 * 4 = ?
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So, you think I’m kidding?
Let me ask you again:
What is the result of 25 * 4 ?
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The Answer is obvious…
25 * 4 = 100
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Now, how about solving this one?
(12.5*2) * (8/2) = ?
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The Answer is …
(12.5*2) * (8/2) = 100
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There is A set of Entrepreneurs who try to solve
25 * 4 = 100
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There is B set of Entrepreneurs who try and solve
(12.50*2) * (8/2) = 100
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Confused? Let me explain!
100 100 IS THE DESIRED
OUTCOME
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The PATH to the desired outcome can be
25 * 4 = 100
(12.50*2) * (8/2) = 100
Path 1 to outcome
Path 2 to Outcome
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Let’s take an example
• Say that Entrepreneurs Alok and Arun independently start up, to set up an Electric Car Rental business
• Both determine that the minimum viability of their biz would be 100 Electric Car Rental orders per day
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The difference between them?
• Alok wants to achieve a 100 rentals a day as his only goal.
• Arun wants to achieve 100 rentals a day AND MAXIMISE his revenues as his goal.
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The Approach Alok follows:
25 * 4 = 100
No. of rental orders per day
No. of exclusive
Corporatessigned up
TOTAL Rentals per day
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Alok’s Rentals
• Are typically quick turnaround and city-centric that yield average revenues per trip.
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The Approach Arun follows:
(12.50*2) * (8/2) = 100
1 way drop to airport (so half trips)
2 Airports
in the city
4 Corporates signed up
2 vendors of the
Corporates
Total trips
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Arun’s Rentals
• Are focused on Airport Drops that are complex to manage but are high revenue yielding.
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In his startup, Alok has to deal with 2 variables:
25 * 4 = 100
1.Managing the orders
per day
2. Servicing the exclusive
Corporatessigned up
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Arun has to deal with 4 variables:
(12.50*2) * (8/2) = 100
1. Timely Drop / Pickups
from Airport
2. Managing Airport rules
and regulations
3. Managing Corporate
clients
4. Managing competition serving the Corporates
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Variable Mitigation
Alok1. Make sure that the cars
for the city trips are comfortable and in order
2. Make sure that the 4 Corporate Clients are fully satisfied – meet each of them everyday in rotation.
Arun1. Make sure that the airport
drops are on time; each time
2. Keep track of the 2 Airport rules and regulations
3. Manage the 8 Corporate relationships
4. Make sure that the competition serving the Corporates are not getting ahead.
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Takeaway?
• Sometimes, entrepreneurs land up choosing highly complex and difficult to manage paths to achieve their FIRST GOAL.
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Approach?
SET THE GOAL first, THEN the path to the goal
The GOAL IS 100 Trips
• Path ?
25*4 or (12.5*2) * (8/2)
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My humble advice
Startups and Entrepreneurs should focus on achieving their
goals with the MINIMUM number of variables they have to deal
with.
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Real Life Case ExamplesEARLY DAYS OF Variable 1 Variable 2 Variable 3Google Get best search
algorithm outGet best UX/UI X
Twitter Get easy UX/UI Get Star Users XInstagram Get the best picture
sharing service out X X
Whatsapp Get the best personal messaging service out
X X
Amazon Make people shop online
Make consumer experience GOD
X
Microsoft Make good consumer products (NOT the BEST)
Maximise revenues Stop Competition
MySpace Make social discovery for music lovers
Make MONEY
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Homework
• If you are starting up, can you write your GOAL with the least number of variables?
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Liked this presentation? Go through some more!
• Basic Funding Concepts for Entrepreneurs
• How to Price what you Sell
• How to write effective e-mail proposals
• How to make an engaging PPT
• PR for Startups – a reference guide!
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Connect with me!
e-mail - [email protected]
Facebook - facebook.com/rodinhood Twitter - @rodinhood
Linkedin - alokkejriwal
My social network for anyone enterprising! therodinhoods.com
Presentations – www.slideshare.net/rodinhood