Wannabe Entrepreneurs - How/when/where to get started!

[The_Big_K]

CEans,

I know - there is an entrepreneur in each one of us. The world is full of wannabe entrepreneurs. The engineers have been the greatest entrepreneurs: Mr. Edison, to quote an example.

I know, most of you; either working or students; dream about having your own thing one day, but don't know how to start, where to start, when to start etc.

So, let's try to answer these questions in this discussion. I'll wait for your posts before posting my own thoughts. Let's get started!

[ash]

You really love Mr Edison eh?

A friend of mine is hatching a plan (he's an inactive CEan here ) with me to start a small engineering business either right after graduation or some time after. What we plan to do is:

1. Research background on the product/service
2. Research the existing local market for these
3. Research the process needed to start partnership (application for business licenses, SME funds, etc)
4. Prepare business plan

Notice that product research is before market research. Usually you'd try finding a market gap first right? Well, we've already honed in on an area thats relatively new in engineering that me and my friend already share an interest in, so needs a lot of research on this aspect. We have already started the research.

Would really appreciate some additional pointers!

[kidakaka]

Ash,

If your idea is simple enough, then the best rule you can use is "Screw it, Let's do it" ... pardon my french! Let me tell you something about business plans ... they are needed for convincing others

If you are convinced, and if the idea needs small capex, then you can start right away!!

[ash]

True that

But I think its a little more technical. Perhaps its probably an engineering plan for us two rather than a business one.

But, I think we'd need a proper Business plan to convince those folks who holds those "technopreneur funds" for tech start ups. Maybe they want to make sure our business actually works. There has been cases where start ups just fizzle, and burn away those limited and precious funds Oh well.. I suppose we wont really spend TOO much time on it.

[The_Big_K]

Originally Posted by ash

True that

But I think its a little more technical. Perhaps its probably an engineering plan for us two rather than a business one.

But, I think we'd need a proper Business plan to convince those folks who holds those "technopreneur funds" for tech start ups. Maybe they want to make sure our business actually works. There has been cases where start ups just fizzle, and burn away those limited and precious funds Oh well.. I suppose we wont really spend TOO much time on it.

May I chip in my $0.02 [I mean, advice ]

Here's an excerpt from our Small Talk with Guy Kawasaki

CE: We thank you for taking out time to talk to CrazyEngineers. What is your message to the CEans?
Guy: Engineers, not marketers, are the core of enterpreneurship--and I am a marketer saying this. I believe in supply-side entrepreneurship: Build something good enough, and "they will come." Engineering is hard--marketing is easy.

While you will want VCs to chase you; you must build something that is 'Gold'. Initially, focus on building a great product/service and while you're ready with some of it, start studying about writing business plans, funding etc.

The 'business' side of entrepreneurship scares many engineers. Don't let that happen to you !

[ash]

Thanks, thats inspiring indeed

Now I guess the focus is on building a great product/concept!

[mayurpathak]

Well... few tips from me too. I started my consulting business without a business plan or a capex. Yet, I could generate some money for me. But there are still few important things to look at while preparing a business plan to launch a product-

1. You need to show a full conceptual view of your product. I mean people should think beyond the usability of it. Highlight on why did you decide to build this particular product and what are the benefits of it. Also what are the possible innovations.
2. Next, add a section full of only technical information. Load it with unheard jargons and specifications. People should know you have done extreme hard work. Add the number of people you will need for a minimum to keep your design and production unit running.
3. Keep your marketing plan ready, including how many number of people you will need, at what stages and what locations. Give a resource ramp up strategy for an year at least.
4. Show a 5 years revenue growth and expense/investment plan. Assuming you have mentioned the price and cost of the product, do not fail to add a note on why are you charging that much. Keep a buffer aside for R&D.
5. If approaching VCs, tell them where all the money you borrow will be put. If you are asking money from a Bank, give a time line as to when will you need the disbursements (monthly, or quarterly...Bank works that way). Show the break even as per an assumed growth rate. Also add a note on how much time do you need to to agree to the SLAs (for services) and productivity matrices. (The Bank will ask this)
6. Finally, speak about assured commitments, if any and share allotment to the Bank/VC.
7. Add an executive summary of all the above in the beginning.

I hope this helps. If you need assistance for preparing a Biz Plan, let me know. I'll charge on $000.0000 for you

[ash]

Wow, great advice!

*scribbles on notepad*

[mayurpathak]

Thank you! Thank you! Thank you! *comfortably assumes ash's post was for me*

[The_Big_K]

Good stuff @ Mayur!

Oh yes, and one must not forget the Richard Branson's "Screw it, Let's do it" attitude.

It helps, trust me