I have finally decided to participate in the SHAASTRA(IIT Tech fest). I wanted to write this particular post around 4 yrs back but due to some or the other reason i was unable to participate in it. I m really really happy 2 participate in this event. Its not that i have worked really hard for this particular write-up but i feel that its bad if i don't participate. I am gonna try in some 3 events which i have short listed from the Shaastra site. As always its not participating which arouses me to such a write up, with obvious reasons i state that in my mind i have only one option i.e. winning;-). Best of luck 2 myself for the part in which they accept my write-up(i have not yet qualified for this event, only the best 8 will be chosen from all the entries). I have presented my WRITE-UP for the breakthrough 2007 event.
SHAASTRA EVENT-
Breakthrough 2007
TITLE: TensionNot Completion
Purpose of the Idea: This idea mainly resides in the software developing arena. Starting up with a Software company seems really difficult to establish and even much more difficult to retain. Considering a startup with great investments and expecting clients to rush in; seems to be the perfect formula for a disaster. Now thinking with the entrepreneurial mind I feel risk factor/risk management is one of the criteria which should be really attended and given high importance.
At this outset, it would not be proper for me to bring in the market facts due to two reasons that I am fresher in this field with not having much of networking with the software industry side and secondly, I don’t have a true picture of the exact problems in the work of the companies, so I would prefer laying down my views over some problems which may be faced in the software industries and which looks really logical to me as I am from this core stream in engineering which I m pursuing. So summing up with the purpose:
- Setting up a software firm with consideration to the risk factors.
- Innovative Ideas for recognition (Main stress).
- Expanding and Developing with respect to the approach.
The Approach: I feel the purpose stated above would make sense if it brings a proper approach to fulfill it. This is the stepping stone for the Startup. I have listed them in points which are in a chronicle order for a better understandability:
- Setup process- To setup an office with special software development team (implementation discussed in the later part of the write-up).
- Contacting major companies- Our thought process, as these major companies are established and have an enormous pool of clients, sometimes they are unable to satisfy some of their clients with the project due to several reasons. Now here comes our part, we would take those incomplete projects from the company and would finish them with a dormant time line and deliver it to the company and not the client directly, the main purpose of this is to set up good relationship with the companies and expand the network, as of now there is minimum concentration in expanding our client pool.
- Expansion- Considering that everything has fallen into its perfect place as required, we would want to expand the company with the utilization of some resources, and we would advertise and grow with our previously handled projects. Here we are self-centered and thinking mainly about growing (client pool) but profits are a secondary botheration.
Impact on market: It is a universal fact that the software market is the fastest growing and there is no possibility of a sudden downfall and would preferably go a long way. So we need not be bothered about the market stability or any such parameters.
- Target Market- it’s the software market being targeted and to be precise it’s the major software companies which are targeted with a good will of earning rewards and recognition.
- Market size- it can be fairly listed with some values presented on the internet but as far as this summary is concern I would stick with what size is being targeted. From the internet fact sheets: “The market for large enterprise software is set to grow at up to nine per cent a year until 2010”. As its clear enough that we have enormous business with the growing market size for the major companies we have a better chance of targeting them.
Economic Dimensions:
Capital generation for the startup: This isn’t a problem as we make use of the most common formula as stated down below.
| [(No. of employees in the team) * (X lakhs)] + Y >= 20 lakhs |
Variables in the equation:
No. of employees in the team= between 4 to 10
X = between 2 to 5 lacks
Y = Miscellaneous expenditure (would be done by the lead in the team)
Main Motive: Here we are trying to generate funds for the company not with any intentions of setting up an office, it’s a startup and I feel it should remain as conservative as possible to save on expenditure because success is not the only option, we can also experience failure (risk factor) at times.
Cost Advantage: This would be inferred to the inlet for the company as expected. Points which possibly can be listed:
- Production charges would be commendably lower that what the major firms charge for the completion of the projects- by this we are not just getting the nominal amount for the project whereas we are profited with the company network and the client project completion, by this the main motive is to lay our hands on the center of influence/confidence of the company and the market.
- Time line for completion will be lower- this would make the company flexible enough to generate results in the least possible time and save the other companies reputation in front of the client in the delivery process.
- Credits to the company- Lower cost of production and generating higher profits without having any hassles in the project delivery phase. This is an indirect way of earning credits for our company behalf as we are indirectly making our impact on the market as well as expanding our network and generating funds for the company to grow.
Expected Cash Flow: The capital for the startup is already discussed above. Here I would want to throw some light on earnings rather than expenditure.
Taking only the project earnings into consideration, we would charge the company nominally lesser than what it has charged its clients, maybe for generating the firms interest in our company, we can reduce it to the maximum of 10%, But with the complexities which are present are:
- Difficulty level
- Client reputation
- Time Line
We can expect the earnings the other to be the way around i.e. we can possibly increase in the earnings by 10% or so.
Expected Competition for envisioned idea: This is a real-time problem which has affected many major enterprises, i.e. these companies are loosing their clients due the crowding of clients which results in their inefficiency with concerns to the customer services. Here our main motive is to setup and earn some reputation and the final ordeal of our company expansion begins, but the main concerns of this summary are with the company establishment.
Problems in the startup:
- Doing a job with such high efficiency requires enormous talent in the software development team- this problem can be tackled by employing those people who are highly efficient in the software development side and as a matter of fact we can also influence the cream of software engineers from the IIT’s for the software development team to ensure that we have one of the best brains employed for finishing the task.
- Known personalities- This can mainly be addressed by some personality who can really work in our ways for reputation and building contacts and influencing the major enterprises with our job plan. Preferably, the person should be a personality with some achievements in the software field and should have some political influence.
Team Profile
Girish Mahadevan
Computer Science Engineering (B.E), Student (in the final year)
College- Sathayabama University, Chennai
Email: mgirish.87@gmail.com
Ph: 9940306690
