Vision vs reality
was having a conversation with a young entrepreneur, who was facing a dilemma in his venture. He wanted to achieve his vision of bringing objective analysis, opinions and news to his young and loyal customers, thereby enabling a change in individuals, hence the society and ultimately the country — a grand vision. But the catch is that this is barely helping him meet his expenses. There is a large team to feed — servers, office rent, travel and all that you need to keep moving. This situation is typical of 99 per cent of entrepreneurs in India. Let me share what I told the young man.
If the venture is not yet cash flow positive, then it is advisable to raise capital. Plenty of sources are available for raising capital including debt from banks, financial institutions, equity viz, angel investments, incubators, venture capital and grants via CSR funds, trusts, prize money from business plan competitions, etc. If you have a clear-cut business plan and a strong team to pursue it, then things are smooth. However, given the huge gap between demand and supply, it takes time to raise outside investments. Facebook managed this with right dosage of product focus, building communities and followers, while attracting investments and giving returns to venture capitalists and investors.
For a content website, there are lots of resources other than advertising money — including content licensing to bigger players like Yahoo! and MSN. This is a good way to continue to build your content while the sales and marketing is taken care of by others, and enables you to keep your system afloat.
Femina makes less money by selling magazines and advertising than by organising Femina Miss India contest. Events and exhibitions give additional avenues of monetising what you have — customer loyalty is a natural brand extension strategy. However, it takes lot of bandwidth and you should be careful not to overdo it, plus it takes patience to build an event brand.
Article originally Published : http://expressbuzz.com/education/vision-vs-reality/393294.html