Vineet Bajpai - Build from Scratch

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BUILD

FR OM
SCRATCH

REAL STRATEGIES AND PROVEN METHODS TO BUILD START - UP BUSINESSES

VINEET BAJPAI

JAICO PUBLISHING HOUSE

Ahmedabad Bangalore Bhopal Bhubaneswar Chennai
Delhi Hyderabad Kolkata Lucknow Mumbai

Published by Jaico Publishing House
A-2 Jash Chambers, 7-A Sir Phirozshah Mehta Road
Fort, Mumbai - 400 001
www.jaicobooks.com

Vineet Bajpai

BUILD FROM SCRATCH
ISBN 978-81-8495-291-9

First Jaico Impression: 2013

No part of this book may be reproduced or utilized in
any form or by any means, electronic or
mechanical including photocopying, recording or by any
information storage and retrieval system,
without permission in writing from the publishers.

Page design and layouts: Special Effects, Mumbai

To Dev and Vano

Contents

Acknowledgement
Preface
Chapter 1	EntrepreneurshipWelcome to the jungle!
Global Business Environment for Start-Ups, Risks and Returns Entrepreneurial Risk The Real Picture Business Risk Phantoms from the Past Tests, Turbulence and Triumph Social Backdrop Family Beliefs and Personal Aspirations
Chapter 2	The Entrepreneurial WarriorWhat it really takes to be one
Professional Excellence Values Do They Really Play a Role? That Something Extra
Chapter 3	Transforming Ideas to ImplementationGetting started
Idea Generation and Market Scanning Research, Feasibility Analysis and Gut Feel The Business Plan and Revenue Model Legal Safeguards
Chapter 4	The First-Generation Entrepreneurs QuestShow me the money!
Funding Options Overview Debt Capital Equity Capital Angel Funds and Venture Capital Back with a Bang! High-Net-worth Individuals Your Best Bet! The Role of Investment Banks Proof of Concept for Investor Confidence Self-Financing
Chapter 5	Starting Your Start-UpPreparing for the battle
Recruiting People The Deciding Factor Setting Up the Infrastructure The Bare Essentials
Chapter 6	That First YearGuts and glory
Training, Leadership and Motivation HR Challenges and the 5-E Solution Rolling Out Your Sales Effort Stayin Alive Work Environment Managing Cash Flow
Chapter 7	Phase Two of Your Start-Up CompanyBuilding an organization for a 100 years
Chapter 8	What NOT to Do in Your Young CompanyThe 20-point list

I'm speaking for all of us.
I'm the spokesman for a generation.

Bob Dylan

Acknowledgement

I often wondered why most books start with an acknowledgement section. It was only during the writing of this book that I realized the importance of these pages. I realized that although a book cover may display the name of only one author, there are many others who play an equally critical role towards the book finally reaching the readers' hands. 'Build From Scratch' is no different.

First things first. At a lot of places in the book I have been forced to use the word 'I'. I want to emphasize that every time an 'I' has been used, it should be read as a 'we' and as salutations for the numerous people who have been my teammates and the real unsung authors of this book. Similarly, each time a 'he' or 'him' has been used, only because it made examples appear more conventional, it should be treated as a 'she' or 'her'. Honestly, like most other things, women perhaps make better entrepreneurs than men!

The single most important point I would like the readers to keep in mind is that while at some places the book speaks about my companies as Magnon Solutions and Magnon International, our status as independent agencies till 2012, we are now a proud member of the TBWA\ network and in turn an integral part of the Omnicom family. Magnon Solutions is now MAGNON\TBWA and Magnon International is MAGNON E-GRAPHICS. Both my companies were acquired by Omnicom / TBWA in December 2012, and this was perhaps the single most rewarding step in our entrepreneurial journey. It is such transformational leaps in an entrepreneur's life that build winning stories.

Unlike popular belief, an entrepreneur is the least independent or self-dependent guy in the world! He or she needs more people-support than perhaps any other professional. So obviously and most sincerely, I would like to express my gratitude to my entire team at MAGNON\TBWA and MAGNON E-GRAPHICS. Vivek Merani, Nitin Naresh, Krishna Jha, Prashant Misra, Naved Aqueel, Sunil Ahuja and many more extraordinary people who have helped me with my company, my book and my life. Vivek, Nitin, Krishna and Prashant you guys are among my life's greatest treasures. Thank you.

The two people to whom I remain deeply indebted are Keith Smith and Alain Rhone. Keith is a rare blend of corporate statesmanship and entrepreneurial energy. His enthusiasm is infectious, his leadership inspirational and his warm demeanor exemplary. He is a visionary. And he is my mentor. Alain is my precious friend, philosopher and guide. I wouldn't be here today without his constant support and affectionate encouragement. He carries a stunning combination of detailed operational prowess and an expansive corporate vision. And I know he manages a lot of my mistakes with his typical large-heartedness. Thank you for being who you are Alain.

There are several other people from the Omnicom and TBWA\ families that I need to express my gratitude to. Dara Akbarian, for being one of the sharpest and most elegantly stylish people I have met in my career. You have unknowingly taught me so much Dara! Thank you for being there. I want to thank Philip Brett, for being the one to notice us in a crowd, and for driving the initial phase of Magnon's acquisition. He continues to be someone I feel both very connected and very indebted to. Thank you, Philip. I have to mention Neeraj Puri, whom I lovingly call my 'guardian angel', for being a brotherly figure and a shoulder to lean-on amidst a tough corporate environment. He is like a walking workbook of Indian company law and taxation, and yet a source of endless laughter!

I'd like to thank Emmanuel Andre for making me feel important and significant in the mammoth TBWA\ universe. Emmanuel you amaze me with your humility, inspire me with your achievements and drive me to strive for more. You are my star! I express my sincere gratitude to Denis Streiff, who is kind, supportive and accessible despite his seniority and enormous stature. Thank you, Denis. I want to thank Stuart Sproule for being a fantastic leader and the truest digital media evangelist I have ever met. His calm demeanor is comforting and his inclusive management style is something to learn. Really awesome to have you around Stuart.

The two people I must thank are Ramzi Raad and my friend, Reda. Thank you both for wholeheartedly welcoming me into the TBWA\RAAD family. I want to thank Darren Jackson for being so patient and so understanding with my team and me. Your support and your warm approach have been truly helpful Darren. I'd like to thank Louise Upperton for guiding me at every step and for carefully planning the rebranding of Magnon Solutions and Magnon International to MAGNON\TBWA and MAGNON E-GRAPHICS respectively. I cannot complete this section without thanking my friend, Jason Kuperman, who has been a support system and without whom the MAGNON\TBWA story wouldn't have started.

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