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Company: Current situation Worlds Largest manufacturers of herbal products 400 products for various beauty and health needs Strong presence across the globe, from the USA to Asia. 2002, Shahnaz Husain Group, New Delhi, worth $100 million. 4200 people in 650 salons spread across 104 countries. Good growth rates in 25 years Average growth rate (1970s -80s) 15-20%.,1990s --- 19.4%. INDIAN ENTERPRENAUR National and international awards "The Arch of Europe Gold Star for Quality" "One of the Leading Women Entrepreneurs of the World" "The 2000 Millennium Medal of Honor" "Rajiv Gandhi Sadbhavana Award"

"I do not sell products. I sell an entire civilization in a jar."Shahnaz Husain.

"She lives, sleeps, breathes her business. She is consumed with building a successful company which she has done."- Janine
Sharell, Correspondent, CNN.

Background of the entrepreneur Shahnaz Husain is one of India's most successful women entrepreneurs. Captured the markets around the world Now wants to conquer space. Innovative Move formulations that astronauts could carry, their extraterrestrial sojourns Skin Protection from the ravages of space travel and slow down the ageing process. Sent National Aeronautics and Space Administration (NASA) free samples Moisturizers,

What was the idea and what solution she has for his customer's problem? Learnt harmful effects of chemicals on the human body. Turned her attention to Ayurveda Belief - Ayurveda an ideal alternative to chemical cosmetics, o Chemical cosmetics - not only harming human system but also led to deterioration of environment o Ayurvedic products well suited to human skin and hair ( non-toxic and no harmful side effects. ) Human body adapts well to the natural Ayurveda treatment Human body an inbuilt resistance toward chemical treatments.

How did she arrive at that idea? The Making of an Entrepreneur Belonging to a royal Muslim family ,migrated from Samarkhand to India Held high positions in the princely kingdoms of Bhopal and Hyderabad prior to India's independence. Schooling in an Irish convent Under influence of her father, Chief Justice N.U. Beg, Developed love for poetry and English Literature. Dual advantage of growing up in traditional family with modern education. Married at 15, mother next year. ,husband posted in Teheran, Iran, How did she arrive at that idea? The Making of an Entrepreneur Developed interest in beauty treatments and decided to study cosmetology. Trained extensively in cosmetic therapy for 10 years, London, Paris, New York and Copenhagen. Returned to India in 1977, set up own salon at her house- Delhi initial investment - Rs 35000 Turning point in her business Represented India at the Festival of India in 1980. Counter in the perfumery section of Selfridges in London. Sold off entire consignment in 3 days Record Braking Cosmetics sales

Personal Characteristics Dedication, Determination & Drive Shahnaz believes that a true entrepreneur is a person who has independence of spirit. "One should be innovative, dynamic and willing to try every avenue towards success" How did she go about funding/capital? Wrote articles for the Iran Tribune on various topics under different names. Trained extensively in cosmetic therapy for 10 years, London, Paris, New York and Copenhagen. Returned to India in 1977, set up own salon at her house- Delhi - initial investment - Rs 35000 In contrast to salons offering chemical treatments, Shahnaz offered Ayurvedic products.

Strategy on 5 P's (Product, place, price, promotion and people) what did they do about it? Strategies and Tactics Strategies ---direction marketing effort takes over some period of time Tactics ---- actionable steps or decisions made in order to follow the strategies established. Product

Ayurvedic method of treatment, Natural formulations to cure ailments. Natural Care and Cure. Exclusive salon treatments geared to individual needs Common commercial formulations acne, pimples, pigmentation, dehydration, alopecia

Packaging Specially packed in such a manner that the potency will remain guaranteed for the shelf life Place Simplistic distribution model like from wholesaler to a retailer Geographical dispersion - metros & SEC I & II towns. Medical shops, Ayurvedic shops & beauty saloons. Promotion Elements in promotion mix Advertisements in Women Magazines, News Papers Personal selling, Training in beauty parlors. Tie up with Pharma companies like Elder (Fair One) Advertisements include advertising through mediums like Hoardings Newspapers and Magazines. Through Television and on Radio

Literature includes Corporate Brochures Pullouts - here, AIRTEL provides its SIM cards in a CD like packaging within which is enclosed the literature of the company. Celebrity Endorsements Freebies include Providing free messaging facilities Free samples Value added services Event Management that includes Glamour shows. Fashion shows like The Femina Show. Award nights like Filmfare Fairone Awards. Music shows hosted by music channels like Radio Mirchi.

Promotion Mix

Price Market Penetration (decrease initial prices, increase adoption) Market Skimming (charge high prices - recover major investments in short term) Competitive pricing (charge prices as per the comparable & direct competitors in the given market) Survival Pricing (reduce prices due to overcapacity, completely changed habits) Psychological Pricing (appeal to emotion, not logic) Premium Pricing (to build image) Pricing is the only element which generates volume. Affordable to general public Value for money. Price is not a prohibitive factor for buying decision.

People M / F age group 15-30 who would like to look young (Trade Channel) Wholesaler, Retailer, Beauty parlors How they differentiated their product and positioned in the market? Ayurvedic centers for Panchkarma, Dhara and Kerala massage. Two Shahnaz Husain Ayurvedic Health Resorts, (near Delhi and another in collaboration with Hyakumata group of Japan in the US island of Saipan ) Accommodating about 200 people at a time, aim at providing urbanites treatments and programs designed to counteract the stress of modern life. How they differentiated their product and positioned in the market? Holding discussions with major five star hotels in New Delhi and New York to set up health spas. Ayurveda, - ideal alternative to chemical cosmetics, chemical cosmetics- Harming , leading deterioration What are/were the challenges they faced ? Cluttered market Me Too brands On slaught by the cheaper brands MNCs & Global brands like Lakme, L-oriel to the environmental

Trade threat for better margins Availibility & accessibility Going forward what are your suggestions for her Skin is almost 1/5 the of the body weight & most neglected. She is in essentially fairness market (People, who are dark, would like to be fair). Move up into the value chain like Anti aging, Age defying ( People would like to be young ) Anti wrinkle, ( People would like to have a smooth skin) Anti glow , ( Fair People would like to have a glow ) Matt finish ( people who have excess glow want to have a matty finish ) Penetrate into all skin care areas like Hair care. Body care, Nail care, Lip Care. In Metros, SEC I & II towns where she has a good acceptability, she should start skin & Beauty clinics like Kaya clinics

WHO IS AN ENTREPRENEUR? An entrepreneur is a person with a dream, originality and daring, who acts as the boss, who decides as to how the commercial organization shall run, who co-ordinates all activities or other factors of production, who anticipates the future trend of demand and prices of products An entrepreneur is one of the important segments of economic growth. Basically he is a person responsible for setting up a business or an enterprise.

Infact, he is one who has the initiative, skill for innovation and who looks for high achievements. He is a catalytic agent of change and works for the good of people. He puts up new green-field projects that create wealth, open up many employment opportunities and leads to the growth of other sectors.

The entrepreneur displays courage to take risk of putting his money into an idea, courage to face the competition and courage to take a leap into unknown future and create new enterprises/ business. This creative process is the life blood of the strong enterprise that leads to the growth and contributes to the national development. The entrepreneur will always work towards the creation and enhancement of entrepreneurial society.

The best entrepreneur in any developing country is not the one who uses much capital but an individual who knows how to organize the employment and training of his employees. A classic example is that of Mr. Dhirubhai Ambani because he had all the dynamic qualities of a successful entrepreneur, as a result of which today, he was the owner of the largest private company in India. All decisions which he had taken to grow were instinct and no one had taught him to take decisions.

Entrepreneurship Entrepreneurship refers to the functions performed by an entrepreneur in establishing an enterprise. Just as management is regarded as what managers do, entrepreneurship may be regarded as what entrepreneurs do. In other words, entrepreneurship is the act of being an entrepreneur. Entrepreneurship is a process involving various actions to be undertaken to establish an enterprise. It is thus, process of giving birth to a new enterprise.

Entrepreneurship is composite skill, the resultant of a mix of many qualities and traits- these include tangible factors as imagination, readiness to take risks, ability to bring together and put to use other factors of production, capital,labour, land, as also tangible factors such as the ability to mobilize scientific andtechnological advances. A practical approach is necessary to implement and mange a project by securing the required The basic two elements involved in entrepreneurship are as follows;-

INNOVATION Innovation, i.e. doing something new or something different is a necessary condition to be called a person as an entrepreneur. The entrepreneurs are constantly on the look out to do something different and unique to meet the requirements of the customers. They may or may not be inventors of new products or new methods of production but they possess the ability to foresee the possibility of making use of the inventions for their enterprises.

In order to satisfy the changing preference of customers now a days many enterprises have adopted the technique of innovation. For instance, pidilite industries innovated the new pack of fevi quick which was accepted by the customers as it was easy to use when it was needed.

Other example would be of the mobile enterprise which came up with the scheme for the customers of refill pack of which says Zindagi bhar mobile raho which was accepted bye the customers. Since customers taste and preferences always keep on changing, hence the entrepreneur needs to apply invention on a continuous basis to meet the customers changing demand for products.

RISK- BEARING Entrepreneurship is the propensity of mind to take calculated risks with confidence to achieve a predetermined business or Industrial objective. The capacity to take risk independently and individually with a view to making profits and seizing the opportunity to make more earnings in the market

FAMILY BUSINESS IN INDIA In India, family business accounts for about 70prcent of the total sales and net profits of the biggest 250 private sector companies. Big families

have carved up the big industries. In vehicles, for example, the Tatas make Lorries, the Birlas make ambassador cars, the Bajaj family makes two wheelers and the Mahindras make jeeps. They diversified into any business where they could get a permit to operate. Borrowing, mainly from public sector institutions, was easy, and company law makes it simple to control subsidiaries through very small shareholdings. The Tata Empire, for example, embraces some 70 companies, making everything from tea to watches in which the parent companys average stake is rarely above 15 percent. Entrepreneurship is not just a way to- increase the level of innovation and productivity of organizations, although it will do it. More importantly, it is a way of initiating vast business so that work becomes a joyful expression of ones contribution to society. The Indian entrepreneur, intrapreneur and/or manger of the 90s have to be molded in psycho- philosophy rooted in the QUALITIES OF ENTREPRENEURSHIP The qualities that contribute to the success of an entrepreneur are as follows: Risk Taking: Entrepreneurs are moderate risk takers. They enjoy the excitement of a challenge, but they do not gamble. Entrepreneurs avoid low- risk situations because there is a lack of challenge. They avoid high risk situations because they want to succeed. They like achievable challenges. They do not tend to like situations where the outcome of a quest depends upon a chance and not on their efforts. They like to influence the outcome of their quest by putting in more efforts and then experiencing a sense of accomplishment. A risk situation occurs when an entrepreneur is required to make a choice between two or more alternatives whose potential outcomes are not known and must be evaluated in advance, with limited information.

A risk situation involves potential gain and potential loss. As the size of the business expands the problems and opportunities become more numerous and complex. Business growth and development require an entrepreneur not to be afraid of taking decisions and certain risks. Most people are afraid to take risks because they want to be safe and avoid failure. An entrepreneur always takes a calculated risk and is not afraid of failure. 2. Self- Confidence: - A man with self confidence has clear thoughts and well- defined goals to achieve in his life. An entrepreneur gets into business or industry with a high level of self- confidence. He is able to evaluate his competencies and capabilities in a realistic manner. He can set realistic and challenging goals. He is confident of achieving these goals. He possesses a sense of effectiveness, which ultimately contributes to success of his venture. He puts forward his case confidently and gets needed help from concerned agencies/ authorities. 3. Optimist: - An entrepreneur is able to visualize the hidden opportunities in the environment and translate them into business realities. An entrepreneur exhibits a positive and optimistic attitude towards such opportunities. The entrepreneur approaches his task with the hope of success and not with a fear of failure. In the process of accomplishing his task he may also fail but the failure experience does not change his thinking. He is always an optimist in his outlook. The positive outlook develops a drive in the entrepreneur to attempt new things and innovate. 4. Need for achievement: - The need to excel known as achievement is a critical factor in the personality of an entrepreneur. People with high need for achievement have desire for success in competition with others or with a self- imposed standard of excellence. They try to accomplish something new and try to innovate themselves in long term goals. They try to accomplish challenging tasks. They know their own strengths and weaknesses, the facilitating factors and constraints in the environment and the resources needed to accomplish their tasks. If the objectives are accomplished they feel elated.

Need for independence: The need for independence is the prime characteristic that has driven the entrepreneurs to start their own business. These entrepreneurs do not like to be controlled by others. They do not wait for direction from others and choose their own course of action. They set their own challenging goals and put efforts to achieve this goal. The independence provides opportunity for trying out new ideas and helps them achieve their goals. 6. Creativity: - Entrepreneurs are highly creative people. They always try to develop new products, processes or markets. They are innovative, flexible and are willing to adopt changes. They are not satisfied with conventional and routine way of doing things. They involve themselves in finding new ways of doing the things for the better
Imaginative: - Successful entrepreneurs possess a high degree of imagination and foresightedness. Entrepreneurs have a great vision. Knowing the present and the past the entrepreneur is able to predict the future events the business more accurately than others. It is because of their visionary nature and power of imagination that helps them in anticipating problems and evolving actions strategies for such problems. 8. Administrative ability: - A successful entrepreneur is always a good administrator. He knows the art of getting things done by other people without hurting their feelings of self- respect. He has strong motivation towards the achievement of a task and puts in necessary efforts in getting things done by others. 9. Communication ability: - Communication ability is the ability to communicate effectively. Good communications also means that both the sender and the receiver understand each other and are being understood. An entrepreneur who can effectively communicate with customers, employees, suppliers and bankers will always succeed in their business. 10. Clear objectives: - An entrepreneur has clear objectives as to the exact nature of the business, the nature of the goods to be produced and the subsidiary activities to be undertaken. A successful entrepreneur has the objective to establish the product to make profit or to render social service.

11. Business Secrecy: - An entrepreneur who is successful always guards his business secrets. Leakage of business secrets to trade competitors is a serious matter; therefore an entrepreneur should carefully guard it. An entrepreneur must be able to make a proper selection of his assistant since most of the time it is the assistant who leaks the trade secret. 12. Emotional stability: - The most important personality factors contributing to the success of an entrepreneur are emotional stability, personal relations, consideration and tactfulness. An entrepreneur must maintain good relations with the customers if he wishes to enjoy their continued patronage. He must also maintain good relation with his employees, whom he shall motivate to perform their jobs at a high level of efficiency. An entrepreneur who maintains good human relations with customers, employees, suppliers and the community has a better chance to succeed in his/ her business. 13. Open-mindedness: - Open- mindedness means a free and frank approach in accepting ones own errors and change for the better

An entrepreneur is said to perform the following functions: 1. Assumption of risk: - Risk bearing or uncertainty bearing is the most important function of an entrepreneur which he tries to reduce by his initiative, skill and good judgment.

2. Business decisions: - The entrepreneur has to decide

a. To enter the industry this offers him the best prospects b. To produce goods that he thinks will pay him the most c. To employ those methods of production which seem to him the most profitable. d. To effect suitable changes in the size of the business, its location that are needed for the development of his business Managerial Functions: - The entrepreneur performs the managerial functions such as a. Formulating production plans b. Overseeing finances c. Dealing with the purchases of raw materials d. Providing production facilities e. Organizing sales In large establishments these management functions are delegated to professional managers an entrepreneur performs many useful functions such as Undertakes a venture Assumes risk and Earns profits Identifies opportunities to start business either as a manufacturer or a distributor. The entrepreneurship exists in every field of economic endeavor. Entrepreneurship has also been developed in the trading sector. A manufacturing entrepreneur demonstrates his entrepreneurial talents by bringing out new products while a trading entrepreneur performs his entrepreneurial functions in creating demand for the business he deals.

Fig.2 E

The entrepreneurs have been broadly classified according to Types of business Use of professional skill Motivation Growth Stages of development ENTREPRENEURS ACCORDING TO TYPES OF BUSINESS Business entrepreneurs are those individuals for a new product or service and then translate the same into business reality. Tap both production and marketing resources to develop a new business opportunity. Setup big establishment or small unit such as printing press, textile processing house, advertising agency, readymade garments or confectionery. In majority of cases, entrepreneurs are found in small trading and manufacturing business. Entrepreneurship flourishes when the size of business is small.

Industrial entrepreneurs are essentially a manufacturer who identifies potential needs of customers and products or service to meet the marketing needs. He should have the ability to convert economic resources and technology into a profitable venture.

Corporate entrepreneur is an individual who demonstrates his innovative skill in organizing and managing corporate undertaking. He plans, develop and manage a corporate body. Agricultural entrepreneur are the ones who undertake agricultural activities such as raising and marketing of crops, fertilizers and other inputs of agriculture. They are motivated to improve agriculture through mechanization, irrigation, and application of technologies for dry land agricultural products. ENTREPRENEURS IN TECHNOLOGY Technical entrepreneur is the one who is essentially a craftsman. He develops improved quality of goods because of his craftsmanship. He concentrates more on production than on marketing. He demonstrates his innovative capabilities in matter of production of goods and rendering of services. Non- technical entrepreneur are those who are not concerned with the technical aspects of the product in which they deal. They are concerned only with developing alternative marketing and distribution strategies to promote their business. Professional entrepreneur is interested in establishing a business but does not have interest in managing or operating it once it is established. He sells out the running business and starts another venture with the sales proceeds.

ENTREPRENEUR AND MOTIVATION An entrepreneur is motivated to achieve or prove his excellence in job performance. He influences others by demonstrating his business acumen. Pure entrepreneur is an individual who is motivated by psychological and economic rewards. He undertakes entrepreneurial activity for his personal satisfaction in work, ego and status.

Induced entrepreneur is one who is induced to take up an entrepreneurial task due to policy measures of the government that provides assistance, incentives, and concessions and other facilities to start a venture. Enter business due to financial, technical and other facilities provided to them by the state agencies to promote entrepreneurship. Motivated entrepreneur: they come into being because of the challenge involved in developing and marketing a new product for the satisfaction of consumers. If the product succeeds, the entrepreneur is further motivated for launching of newer products. Growth and entrepreneur are those who take up a high growth industry which has substantial growth prospects. Super growth entrepreneurs are those who show enormous growth or performance in their venture. ENTREPRENEUR AND STAGES OF DEVELOPMENT First generation entrepreneur is the one who starts an industrial unit by his innovative skill. He is the one who combines different technologies to produce a marketable product or services. Modern entrepreneur is one who undertakes those ventures which go well with the changing demand in the market. He undertakes those ventures that suit the current market needs. Classic entrepreneur is one who is concerned with maximizing the economic returns at consistent level. He is concerned more about the survival of the firm with or without an element of growth. Apart from the above, there are entrepreneurs who can be classified into innovative and imitative categories. Innovating entrepreneurs are generally aggressive in collecting information, analyzing and experimenting attractive possibilities into practice. They are quick to convert old established products or services by changing their utility, their value, their economic characteristics into something new, attractive and utilitarian. They can see the opportunity for introducing a new technique of production process or a new commodity or a new service or even the reorganization of an existing enterprise. They are very commonly found in developed countries while there is dearth of such entrepreneurs in underdeveloped countries. They are always creative and bringing in innovation in their work. Imitative entrepreneurs are ready to adopt and are more flexible in imitating techniques developed by others. They exploit opportunities as they come and are mostly on a small scale. He is more of an organizer of factors of production than a creator. In the context of a poor country, he is definitely a change agent and hence he is important in underdeveloped countries.

INTRODUCTION TO BUSINESS PLAN The business plan is written document prepared by the entrepreneur that describes all the relevant external and internal involved in starting a venture. Entrepreneur should consult with many other sources in its preparation like lawyers, accountants, marketing consultants and engineers. Business plan could take more than 200 hrs to prepare but varies from person to person according to their knowledge and experience, with purpose about a new venture to a potential investor.


A. Name and address of business. B. Name(s) and address (es) of principals. C. Nature of business. D. Statement of financing method. E. Statement of confidentiality of report.


Three to four pages summarizing the complete business Plan.


A. Future outlook and trends. B. Analysis of competitors. C. Market Segmentation. D. Industry forecasts.


A. Product(s) B. Service(s) C. Size of business. D. Office equipment and personnel. E. Background of entrepreneurs

Franchising is a business method that involves the licensing of trademarks and methods of doing business. The word franchise comes from an old dialect of French and means privilege or freedom. owner(franchisor), affiliated dealers(franchisees) it is one that's providing increasing opportunities for companies and individual entrepreneurs alike.

Today franchise concepts span over 70 different product and service sectors, including such businesses as auto-repair shops, children's art centers, fitness clubs, law & consulting practices, and many home based businesses Jumbo vada pav

o o o o

Entrepreneur : Dheeraj Gupta Company : Jumbo King Foods Pvt. Ltd. Based In : Mumbai Founded In : August, 2001 Industry : Hospitality/ Service

The Journey 23rd August 2001 First Outlet was opened 23rd August 2003 2 outlets existed 23rd August 2004 Jumbo King reached to a figure of 6 outlets 23rd August 2005 15 outlets were in the operation mode 43 stores in Mumbai &1,50,000 vada pavs are sold every day JumboKing Plans to Open 250 Store This Fiscal year


Cyber Cafes Bio Tech Apparels Rural Products like Handicrafts etc Beauty Parlours
Venture ? A risky or dangerous undertaking; esp., a business enterprise in which there is danger of loss as well as chance for profit Types of Venture 1. Incremental Venture. routine business exhibiting modest novelty, like: new coffee bar or new online game; 2. Innovative Venture. business based on an innovation, such as: new cure for cancer; 3. Imitative Venture.

imitation of a novel business or venture, such as: most franchise businesses; regional branches; 4. Rent-seeking Venture.

business that utilizes standards, regulations and laws to share in some of the value of an existing enterprise, such as: company licensing its patented ideas or

Characteristics of the Entrepreneur

Strong predisposition to be your own boss High energy Willingness to risk money and security Ability to inspire and energize others Strong will Ability to learn from failures Devote a proportionate time to your business Fiercely competitive A "never, never, never quit" attitude

Creating & Starting The Venture 1. Creativity & Business Idea To Identify various source of ideas for new ventures To discuss methods available for generating new venture ideas To discuss the aspects of the product planning & development process To discuss aspects of e-commerce & starting an ecommerce business . Legal Issues To understand the nature of patents, rights they provide, & process for filing one To understand the purpose of a trademark & the procedure for filing

To learn the purpose of a copyright & how to file for one To identify procedures that can protect a ventures trade secrets . Business Plan: Creating & Starting the Venture To define what the business plan is To understand the scope & value of the business plan to investors, lenders, employees, suppliers, & customers To identify information needs To understand how to monitor the business plan Marketing Plan To understand the relevance of industry & competitive analysis to the market planning process To describe the role of marketing research To illustrate different creative strategies that may be used to differentiate or position the new ventures product or services . Organizational Plan To understand the importance of the management team in launching a new venture To understand the advantages & disadvantages of legal forms To learn the importance of both formal & informal organization To illustrate how the Board of Directors/Board of Advisors can be used to support the management of a new venture

. Financial Plan To understand the role of budgets in preparing pro forma statements Sources of Capital To explain the application & calculation of the BEP for the new venture To illustrate the alternative software packages that can be used for preparing financial statements Fast followers & the product life cycle

New Venture Key Success Factors

Offer a unique solution Your product: distribution, technology, pricing, promotion, packaging; No such thing as new market; Incumbents, direct competitors and competition (substitutes) abound; Your unfair advantage? Their advantage? In what way is your product unique? How do you protect your uniqueness? IPP through patent, trademark, trade secret Barriers to entry; use of technology