Opportunity is everywhere; you just need to know where

to look!!!
The fundamental of business is TO GET A PAYING CUSTOMER"
The single necessary and sufficient conditions is "TO HAVE A PAYING
CUSTOMERS"
HOW TO FIND A PAYING CUSTOMER?
THEORY Two Step Approach to start a business
Step-A : Market & Customer Analysis (External Analysis using data from survey)
Do Market Analysis Output Market Segments
Pick a Market Segment
Do a Customer Analysis Output Customer Segments
Now we have found a Market and the Customer to Serve.
Position the Business; Create a BRAND
Understand current Competitors in the Market that serve the same
customers
7. Understand the strategy of the Competitors in the current market
8. Devise a strategy that will be more likely to get customers attention (Eg.
Low Price, Highly differentiated product, High Quality, Cust Service, etc)
1.
2.
3.
4.
5.
6.

Step-B : Capability Analysis (Internal Analysis)

1.
2.
3.
4.
5.

Funds Available
Human Resource
Subject Matter Expertise
IT Systems
Market Visibility

EXAMPLE - Two Step Approach to start a business

Step-A : Market & Customer Analysis (External Analysis using data from survey)
1. Market: Delhi
2. Market Segment: Ceramics Industry (Roof Tiles)
3. Customer Analysis: Say by a survey we found 2 categories Segment(1)
and Segment(2)
The histogram shows what is the preference of each segment.
In Segment(1): BLUE, only a few care for low price and most of them care
for Durability
In Segment(2): ORANGE, most of the care for lower price and they do not
worry about Design or Durability.

4. From the study about, let us say 80% of Delhis population are in
Segment(2) and 10% of the Delhis population are in Segment(1)
Say, We have chosen to serve the Segment(2) i.e 80% of the population
we would position our Business Brand as a LOW COST PROVIDER of ROOF
TILES
5. CASE#1: Say there is a heavy competition for Roof Tiles in Delhi
ACTION#1: Since it is clear that the market segment is driven by
PRICE, we need to find means to lower the price.
ACTION#2: Say there are clever competitors who lower their prices
much below because of their ability in terms of money or highly
optimized operation. Then we cannot handle the entire 80% in one
shot, we should be moving slowing part-by-part. For example, develop
contracts and trade relation with only Schools in Delhi, then move to
Resorts then to Construction companies etc
CASE#2: Say there is a low competition for Roof Tiles in Delhi
ACTION#1: We have a good chance to dictate price
6. Understand the strategy of the Competitors in the current market Partly
covered in (5), here is need more fine tuning

7. Devise a strategy that will be more likely to get customers attention (Eg.
Low Price + Quick Delivery (or) low Price + Free Installation, etc
Outcome of (6)
Step-B : Capability Analysis (Internal Analysis)
1.
2.
3.
4.
5.

Funds Available either self-finance or IPO (Stock trade)

Human Resource Setup an office space
Subject Matter Expertise
IT Systems
Market Visibility Market Survey or Study

Some suggestions for Step-B:

1. College Recruitments Both of Execution and Product Development
2. Building business around an Educational Institution, to supply with Idea and
Human resources. Lowering human resource cost by offering internships.
3. Visit a Campus and talk to student if they have any ideas to implement either
for the problem we have at our hand (or) find customers for the ideas
students have.