Start By Yourself Using Our Support
You are required to have read the home page content before you read the below. This page explains the option 3 presented on Home Page.
People who wish to start have two options – they can either come up with their own business idea or invest/co-invest with others in ready made detailed business plans which have been prepared by aspiring CEOs alongwith our consultants. First, we describe how you can come up with your idea and take our support.
Today, we are living in a world where you can be right in front of a customer when the customer is searching for your product/service on Google Search or on a product/service portal. For example, you can setup a website, start running Google Search Ads and you pay Google only if the customer clicks on your website link and visits your website when they are actually searching/researching online using terms relevant to your product/service online on Google.
However, it is risky to start a business by leaving one’s job as there is risk of losing one’s income and no guarantee of the business becoming successful. The best option for an employed individual to start a business is to start it along with the job which ensures income security as well as helps accelerate the business using one’s employment income in the initial stages. However, it is almost impossible to manage a full time job and a business simultaneously. Also, it is impossible to find an employee who has the capability and skills to lead a business across all functions because most employees come with skill-sets across a small area within a single function and do not have leadership experience across all areas like sales, marketing, finance, recruitment, business strategy, equity fundraising, technology strategies, operations etc. Proactibutors Consulting Services fills this leadership gap on behalf of its busy, employed clients at economical rates with complete transparency and daily client updates. We give each new business a set of consultants (on hourly, part time or full time basis as per requirements) as well as access to its entire network of consultants, investors, bankers and other business contacts.
So, isn’t it possible to hire such consultants yourselves? Well, each of the consultants at Proactibutors are talented gems hired via an extremely selective recruitment process. We have described their skills and role here. Each of our consultant signs a Non-Disclosure Agreement where they agree to not declare employer name on their social media profiles and on their own resumes too and have client performance linked compensation arrangements which vest over a long term of their tenure. Clients also sign non-solicitation and non-poaching clauses to not directly recruit our consultants.
Besides, for businesses which require corporate setup and to be close and proximate to the businesses it consults on an ongoing basis, we also provide an “At-Cost" office space at rates 75% cheaper compared to serviced office providers (who charge 3X-4X of actual rental costs) which helps you save several lakhs annually if your business will have just 1 or 2 employees at start. Usually, renting out a small office space results in costs shooting up as even a small space can accommodate several employees whereas your business needs space for just 1 or 2 employees.
Consulting support is given as per the needs of the clients for as much time as required – whether for a few hours per day, part-time or full time. Interests are aligned by ensuring we have economical fixed fees plus performance based compensation arrangements with client’s business where our company and our consultants get compensated if the business performs. All terms and conditions are negotiated and put in the form of a legally binding contract. Consulting rates range from INR 350/hour for junior consultants to USD 1200/hour (for senior most consultant on high value projects). Hence, for someone who wishes to start a very small business can get a combination of Level 1 and Level 2 consultants to manage and lead the business for 2 hours everyday for just INR 14,000 – INR 16,000 per month (calculation: 350 * 40 = 14,000) and performance based incentives in addition which are negotiated when business is formed. Even junior consultants have training and awareness about various sales and marketing channels and finance and fundraising awareness we described earlier. The difference in rates is due to past experience, seniority, talent and demand for their time from other clients. You can learn more about pricing in Pricing section.
If a business is started by a client themselves then they can put in money into the business gradually as and when required.
Let us take you through a typical client journey who wishes to start by himself!
1) Prospective clients connect with our consultants via Whatsapp chat. They read through the detailed pdf sent by our Consultants via WhatsApp.
2) They start asking questions and clarify doubts, initially over WhatsApp and later over phone to understand our services.
3) To some extent, it is an exploratory journey for the client. They research a bit on which business seems good. They also try to increase their business knowledge using our Gain Business Skills section. However, during this process they stay in touch with the consultant over Whatsapp.
4) The consultant advises on business strategy for various businesses the client starts thinking about and also advises whether it is worthy of being carried out or not. The discussions are fluid, agile and can be considered as brainstorming sessions.
5) Many clients need very specific advice during this stage and have burning unanswered questions for which they cannot find answers. Consultant serves as a one point contact for all such questions. If the consultant is not able to answer a specific question, he connects the client to the right person using his access to database of employment portals (which enable direct access to right people using access to crores of resumes and direct contact numbers) and his current network and business contacts. All this is done for free.
6) Once sufficient clarity is achieved about which direction to go in and what business to start, the detailed business planning stage starts. This is done for free too. A detailed business plan is prepared at this stage by the Consultant along with prospective client. Plan is made across sales, marketing, technology, product development, operations, recruitment, sourcing, loan financing**, equity fundraising*** etc. We source external industry and technical consultants too during business planning stage. We also perform a key employee recruitment process during the planning stage. It is important to remember that we do not support any business you wish to start that will directly compete with your current employer whether your employment contract indirectly allows the same or not as it is unethical as well as can cause legal issues. However, it is important to remember that you can START ANY BUSINESS as you are not limited by your knowledge. You can always hire employees with relevant knowledge.
Before business plan is finalised, we ensure the client can visualise their prospective customer’s journey based on the sales and marketing plans. P&L, balance sheet and cash flow projections are prepared considering various scenarios as numbers do matter!
7) Pricing is negotiated, terms and conditions mutually agreed upon and contract is signed. Company is formed, employees are recruited and the business starts!
8) It is important to note that a lot of things planned during planning stage are not executed and alternative courses of action may be chosen as new information and ideas keep emerging. However, everything is done ensuring the business owner is informed before such alternative actions are carried out. Business owners also come up with ideas and alternative courses of actions. Everything is discussed and the best course of action is taken. Client stays in control and stays continuously informed about what is happening in the business. Client can give strategic inputs and get involved in execution as much as they want.
9) You can put in money gradually as and when required and also keep control of bank account if you wish to. Ideally, it is best to create two bank accounts – one for incoming revenues, cash from equity and loan financing and other bank account for expenses. You can fund the second account on an as required basis and give access to key employees to second account for operational convenience.
10) The consultants serve as a single point of contact for the client (i.e. you) for day to day updates and strategy discussions. However, we shall be more than happy if the clients meet employees and take feedback from them about us. Clients can also review work, give suggestions and get involved in the work whenever they wish to.
11) Most business owners can leave their job after it starts generating sufficient income or after a successful fundraising round.
**– You can get asset financing loans even as a new business. Lenders will typically fund 70% of the asset value (or more in some cases) and use the asset purchased as a security. However, the business plan prepared needs to be exceptionally good. Also, the lenders want to see owner’s skin in the game i.e. how much money you are putting in yourself as share capital. They look at the team and capabilities too. So it helps to have a business consultant like us involved in running the business as lenders feel more assured of the business success.
– If you have started a business along with your job (using help of consultants like us), creditors will view you favourably since they know that even if your company will not be able to repay a loan, you can infuse fresh funds into the business using your employment income to repay them as well as to sustain your business through an unfortunate period. This will help you get significant financial backing at competitive interest rates.
***- If you are starting a traditional business, then you should not approach private equity investors at the outset because they are interested in mature opportunities and Venture Capital/Angel investors are interested in innovative and scalable opportunities.
– With BSE SME (BSE stands for Bombay Stock Exchange) now ANY small businesses can raise capital from public and get listed on stock exchange, provided it is profitable before depreciation after 3 years of operations. Click here to see rules. There is no criteria on size of the business.
– If you have an innovative and scalable business which you think can possibly get funded by an Angel Investor or Venture Capital Fund then you should definitely approach them. But the important point to note is when to approach them. If you are currently doing a job, it is best to use your own funds at the start to fund the business using our execution support rather than approaching angel investors. Once the business starts showing signs of success, you, along with the consultant, can start pitching together to investors. Your equity stake will dilute less and you will get a higher valuation if you can show sufficient business traction to angel investors. An ideal time to leave your job is as soon as you secure a fundraise or when the business starts generating sufficient income. You can also get listed as a startup and you do not need to be profitable for that. Businesses that are categorized as startups can raise funding and get listed provided they have pre-issued share capital of Rs 1 crore and been in existence for 3 years with no requirement of profitability (click here and here to see rules).