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BOOTSTRAPPING A SOFTWARE COMPANY -A BOOK FOR STARTUPS

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					ENTREPRENEURSHIP DEVELOPMENT
        PROGRAM (EDP)




                     Author           :
                              Pawan Yadav
                                       Bootstrapping a Software Company
                                                   The Essence of Experiences




               USPs of this Book
Cracking stories of 17 CEOs for booting their first venture.

An Entrepreneurs Guide

The essence of Experiences

A step by step guide to open and run a start- up

Eye model
                                                   Bootstrapping a Software Company
                                                                The Essence of Experiences




Who is Entrepreneur ?
An entrepreneur is a leader who combines the resources like land, labor and capital
to create and to market the new goods or services.


      Motivated
      Seldom are willing to submit to authority
      Optimist
      Enthusiastic Vision
      Unique Ideas
      Positive Thinker
      Inspirer sensible decision maker
                                                    Bootstrapping a Software Company
                                                                 The Essence of Experiences




Few words to aspirants….
                    Fostering Entrepreneurship in India


With India's economy doing well, opportunities in entrepreneurship are immense.
Funds and capital, even mentorship is available for those who want to set up their
own operations.

For youngsters, it is advisable to gain experience in the industry, preferably in
small and medium enterprises where they can learn the ropes of business and use
the knowledge and skills to launch their own enterprise when they are ready.

Setting up your own company calls for a lot of hard work, so get into this business
only if you are passionate about it. Many organizations now exist to support
fledgling entrepreneurs, including government agencies, business incubators,
science parks and even non-government organizations (NGOs).
                                                         Bootstrapping a Software Company
                                                                        The Essence of Experiences




Why one should become Entrepreneur ?
Although a lot of challenges are faced by the Entrepreneur but still it has certain
advantages

    Enormous personal financial gain
    Self-employment, own bossing, offering more job satisfaction and flexibility of the
    work force
    Freedom from the dependency on the jobs offered by others
    Employment for others, often in better jobs
    Ability to have great accomplishments
                                               Bootstrapping a Software Company
                                                           The Essence of Experiences




Why only IT Industry..

     Major contribution to country's GDP and export earnings

     Contributing to employment up to significant numbers.

     India developed a number of outsourcing companies specializing in

      customer support via Internet or telephone connections.




  With Such a wonderful growth in this sector it makes the wise decision
                  to start a business in this Industry.
                                                 Bootstrapping a Software Company
                                                               The Essence of Experiences




Why we initiated this concept….


                               Entrepreneurs




                 Successful                 Unsuccessful



              Too busy to share the       Demoralized / lacked
             knowledge or secrets of    motivation to research their
                    success                       failure

 Some one needs to compile the actual requirements of a budding entrepreneur
                  and the secrets of successful entrepreneur.
                                      Bootstrapping a Software Company
                                                  The Essence of Experiences




How We Make The Difference ??

There are books available in the market which tell you what
to do to become good managers…….
but none of the books will tell you how to become a good
entrepreneur

There are books which tell you what to do…….
but none of them will tell you what not to do.
                 Bootstrapping a Software Company
                             The Essence of Experiences




   WHAT IF …….

YOU GET ALL THESE

GUIDELINES FROM

   THOSE WHO

 BOOTSRRAPPED

   THEIR OWN

 COMPANIES ???
               Bootstrapping a Software Company
                           The Essence of Experiences




WHAT WILL

 BE YOUR

REACTION ???
                      Bootstrapping a Software Company
                                  The Essence of Experiences




Bootstrapping a Software Company

                     The Essence of Experiences
                                            Bootstrapping a Software Company
                                                        The Essence of Experiences




A book which can be used as a guide by the budding entrepreneurs to
start up a software company.


This book is not based on theoretical aspect to start the company but
on a practical approach as it includes suitable formats for planning
required during each phase of company and also it carries the essence
of the experience shared by the successful entrepreneurs.
                                                            Bootstrapping a Software Company
                                                                          The Essence of Experiences




What is Bootstrapping ?

Bootstrapping stands for:


The term derives its meaning from the expression "lifting oneself up by one's own
bootstraps", referring “to raising oneself up by one's own means”.




A step-by-step approach to open Software Company with little or no money
                                                    Bootstrapping a Software Company
                                                                The Essence of Experiences




 Aim
 Making the knowledge available to the potential contender so as to make them a
successful entrepreneur in Software Industry.
                                                       Bootstrapping a Software Company
                                                                    The Essence of Experiences




Objective
   Creating Entrepreneurs in software Industry.

   Steer to start a software company with almost no money.

   Creating a right knowledge platform for Budding Entrepreneurs.

   A Real source for strategic approach to minimize the chances for startup's failure.
          Bootstrapping a Software Company
                      The Essence of Experiences




Introduction
                                                            Bootstrapping a Software Company
                                                                          The Essence of Experiences


This book is divided into following
        PH 1 : Entrepreneur corner
                   The Entrepreneurial concept
                   Face to Face Talk
                   The Golden Words from Entrepreneur
                   Why to not start a start up ?
                   Building up the entrepreneur spirit
        PH 2 : Software Industry – An Overview
                   Evaluation of Software Industry
                   Current situation for Indian Software industry
                   Future of Indian Software industry
                   Opportunities of Aspirant Indian
        PH 3 : Pre Planning
                   Have a best failure plan
                    Market Research
                   Investment planning
                   Capital Expenditure (CAPEX) budgeting
        PH 4 : Post Planning
                   Roles   &   Responsibilities   of   Top Management
                   Roles   &   Responsibilities   of   HR Deptt.
                   Roles   &   Responsibilities   of   Marketing Deptt.
                   Roles   &   Responsibilities   of   Software Development Deptt.
                   Roles   &   Responsibilities   of    Finance Deptt.
        PH 5 : Helping Hands
                   Link to Funds & Knowledge
                   Software Technology Parks of India (STPI)
                   International Organization for Standardization (ISO)
                   Capability Maturity Model (CMM)
                   Lean in IT
                  Bootstrapping a Software Company
                              The Essence of Experiences




Let's HAVe A quick Look…….
                                                       Bootstrapping a Software Company
                                                                    The Essence of Experiences



PH 1: Entrepreneur corner      Fact to Face Talk




    In the beginning it is important to get the correct information which is
   required to execute the setup. Now the question is from whom to get the
   information & guidance.
    How about getting the guidance form the one who on their will started from
   the scratch? For this reason we started interacting with the so called ‘GURUS’ of
   IT world who can enlighten the way.
                                                        Bootstrapping a Software Company
                                                                     The Essence of Experiences



PH 1: Entrepreneur corner      Golden words from Entrepreneur




    These are actually the small stories of the GURUS who had paved path for
   their own fate & still continuing to achieve their dream goals because success is
   not destination ,it’s a journey.

    These GURUS started their journey with almost zero pennies but still tasted
   the success. A sharing of experience form them.
                                         Bootstrapping a Software Company
                                                     The Essence of Experiences

Golden words from Entrepreneurs Include following Jewels
                                                              Bootstrapping a Software Company
                                                                           The Essence of Experiences



PH 1 : Entrepreneur corner       Why to not start a startup



   This chapter dearth the reasons why people says “They Can Not”.

   It lists out all attributes of people’s all reluctance to start a start up

   But actually these attributes is a State of Dilemma

   After Knowing why we can not , we have given the cause why we can start a

   startup.

        BE POSITIVE… GO AHEAD TO CHASE YOUR DREAMS…

                             BECOME AN ENTRPRENUER
                                                          Bootstrapping a Software Company
                                                                         The Essence of Experiences



PH 1: Entrepreneur corner       Building up the entrepreneurial Spirit


   The successful entrepreneurs have the FIRE in them to chase their dream and
   bring it to reality . They may be from different arenas, having different skill sets
   and all of them may have different way to achieve their goals but one thing
   which is common in all of them is ATTITUDE towards their life

   This parts helps to develop the entrepreneurial spirit with help of small
      anecdote which helps to know more about …….

          Attitude
          Team Work
          Keep Spark Alive
          Failure A night Mare
          Don’t let anyone steal your dreams
          Secrets of Success
                                                          Bootstrapping a Software Company
                                                                      The Essence of Experiences



PH 2: Software Industry          Evolution of Software Industry


   Here we have tried to give the major milestone achieved by the Software
   Industry in it’s so far journey.

   How the journey started
   Gain in Pace
   Acceleration in it’s effect
   Beginning of new era
                                                        Bootstrapping a Software Company
                                                                      The Essence of Experiences



PH 2: Software Industry        Current Situation of Indian Software Industry

   The Indian Software Industry has brought about a tremendous success for the
   emerging economy. The software industry is the main component of the
   Information technology in India. India's pool of young aged manpower is the
   key behind this success story.

      The Indian software industry specializes in the export of low-end software
       development services.

      Competing primarily on cost and availability of software talent.

      Presently there are more than 500 software firms in the country which shows
       the monumental advancement that the India Software Industry has
       experienced.
                                                          Bootstrapping a Software Company
                                                                      The Essence of Experiences



PH 2: Software Industry          Future of Indian Software Industry




     The rapid globalization of the software industry in recent years has
    focused a great deal of attention on India whose software industry is now a
    small but a growing part of the international division of labor.

     The rise of the Indian software industry has provided substantial benefits
    to U.S. firms, both users and developers of software. U.S. firms benefit
    because Indian software firms compete fiercely among themselves for
    contracts.

       The Future is Bright !
                                                        Bootstrapping a Software Company
                                                                      The Essence of Experiences



PH 2: Software Industry        Opportunities For Aspirants in India



      WHO ARE THERE TO GUIDE ? ?

      Various agencies participate in entrepreneurial development across
      India

      To coordinate and oversee their activities, the Ministry of Industry –
      Govt. of India has established the National Institute for
      Entrepreneurship and Small Business Development (NIESBUD).

      There are other Institutes to promote entrepreneurship in India

       DARE
       Tie
       NEN
       KICKSTART
       EDII
                                                        Bootstrapping a Software Company
                                                                      The Essence of Experiences



PH 3: Pre Planning             Planning Before starting the company



        Preplanning is all about aligning your self with

        The current scenario of market to begin with specific arena (i.e.
        Market research for potential business),

           Analyzing risks on your head,

         Arranging the funds for capital expenditure as well as for revenue
        expenditure to keep yourself in phase of financial freedom at least for
        six months.



        FAILLING TO PLAN IS PLANNING TO FAIL
                                                                Bootstrapping a Software Company
                                                                              The Essence of Experiences



PH 3: Pre Planning                    Planning Before starting the company

   Have   best Failure Plan- What if you fail
              •   Do the Impact & Risk analysis.
   Market    Research - Discovering your business arena
              •   Doing the Marketing Homework.
   Investment      Planning-Raising the Start up Capital
              •   Finding a Angel Investor
   Capital   Expenditure (CAPEX) Budgeting
              •   Justify to penny plan for spend.
   Capital   Expenditure Vs Revenue Expenditure: The Financial Freedom
              •   Required to maintain the Financial health of the organization.



    Your Starting CAPEX should not exceed more than 30% of money committed by Angel OR
      Venture Capitalist. If it is so please re-justify to your each penny planned to spend in
                                           Starting CAPEX.
                                                          Bootstrapping a Software Company
                                                                      The Essence of Experiences



PH 4: Post Planning             Execution of Project once started

       What is Post Planning ?

       Preplanning is required to build up the minimum level of company.

       Post planning is a phase where one is ready to execute the project
        with the help of all the departments of organization.

       Post planning is a total teamwork where department’s contribution
        counts.

       Post planning is required to execute the company once it is built up
        to a minimum level, sustaining and expanding it successfully.

       This is a phase where one can plan for all integral departments’
        functioning methodology, Roles and responsibilities required for
        smooth execution.
                                                               Bootstrapping a Software Company
                                                                           The Essence of Experiences



PH 4: Post Planning              Execution of Project once started

   One must have done the followings before Post Planning


  One must have got Angel/venture capitalist who is ready to
  become your strategic partner/ready invest on your idea.

  At least a few links are located few links to get the projects on
  regular basis .

  Market research done during preplanning phase helps to get the
  Projects , if not projects at least a positive indication.
                                                        Bootstrapping a Software Company
                                                                    The Essence of Experiences



PH 4: Post Planning           Execution of Project once started

     Department Formations

   Every body can not perform each and every task. Each individual has to
   Perform it’s function in an organization. Similarly the Departments are formed
   to perform specific functions.

   Each department may have the different objective but they work together to
   accomplish organization GOAL.

   The Integral departments of any software organizations are as follows
    Top Management
    HR Department
    Marketing and Sales Department (Business development Department)
    Software Development Department.
    Finance Department
                                                         Bootstrapping a Software Company
                                                                     The Essence of Experiences



PH 4: Post Planning            Execution of Project once started

    Significance of each Department
   The significance of each department can be understood with the help of
   “ Eye Model”

      HR Departments : Mouth - Arrange the resources required to run the company.

     Technical &Marketing Department : Eye - Provides methods of execution and
   links for projects on regular and standard basis.

    Finance & Accounts department : Nose - Senses the profitability on execution of
   projects and its track record.

    Top Management : Ear & Brain - Listen; analyze the issues of company and final
   authority for decision-making.

    For any startup, Functioning & execution of every department is must rather than
    creation of department physically. Number of people allocated to department for
      any start up hardly matters but execution of roles and responsibilities is must
                                                      Bootstrapping a Software Company
                                                                  The Essence of Experiences



PH 4: Post Planning         Execution of Project once started


This section of the book will help to know the each department by their function
and the resources required by them.


PART 1: Roles and Responsibilities of Top Management

PART 2: Roles & Responsibilities of HR Department

PART 3: Roles &Responsibilities of Marketing Department

PART 4: Roles &Responsibilities of Software Development department

PART 5: Roles &Responsibilities of Finance Department
                                                        Bootstrapping a Software Company
                                                                     The Essence of Experiences



PH 5 : Helping Hands             Who can help you meet your dreams


 There are many enthusiastic people out here who start there companies but face lot
 of problems because lack of proper help in terms of finance guidance, support and
 exposure to the market. This Phase talks about same.

 PART-1: Links to Funds & Knowledge :
          Here we have told the about various organization that helps a startup.
 PART2 : Software Technology Park of India (STPI) :
          Brief overview of theme .
 PART-3 : ISO- International Organization for Standardization :
          Benefits of ISO to the new setups..
 PART-4 : CMM -Capability Maturity Model :
          Overview & benefits.
 PART-5 : Lean in IT :
          Introduction to the concept & it’s applicability in IT industry.
                           Bootstrapping a Software Company
                                       The Essence of Experiences




DON`T PUT CLAMP TO CEILING OF YOUR DREAMS
                                           Bootstrapping a Software Company
                                                       The Essence of Experiences




                               Because


                      FORTUNE FAVOURS THE BRAVE,
                                    &
                   INITIATIVE PAYS THE RICH REWARDS
                                   &
OPPORTUNITY NEVER KNOCKS TO YOUR DOOR, YOU HAVE TO CREATE IT & GRAB IT
                                    Bootstrapping a Software Company
                                                The Essence of Experiences




For Any Query, write us at:
   bootstrapping.pawan@gmail.com




     www.bootstrappingasoftwarecompany.com
       Bootstrapping a Software Company
                   The Essence of Experiences




THANK YOU
                    Bootstrapping a Software Company
                                The Essence of Experiences



Pillars behind this concept
                    Bootstrapping a Software Company
                                The Essence of Experiences



Pillars behind this concept
                                             Bootstrapping a Software Company
                                                         The Essence of Experiences




                   NOTABLE MILESTONES
Recently , MET -CORPORATE B SCHOOL
 incorporated this book as part of their
    Curriculum under EDP Program
          www.metbschool.com



 This book has been launched at
         International level
                    by
         Shroff publishers
     ( Among Top Ten Publishers of India).

 Available on all best websites of
                 world
www.amzon.com
www.flipkart.com
www.indiaplaza.com etc.
                             Bootstrapping a Software Company
                                         The Essence of Experiences




       Appreciated
           by
     Indian Express




  Best on- line seller for
          Month
      of Nov -2010
   on following portal

www.shop.socialworker.com
               Bootstrapping a Software Company
                           The Essence of Experiences



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Description: We have great pleasure in presenting this book to forthcoming & budding Entrepreneurs in the software development arena. The future of Indian software industry is bright and we want to help create leaders in the software industry. This book throws light on a step-by-step approach to set up a software company with little or no money known as bootstrapping. This book is an essence of experiences of people who worked hard to become Entrepreneurs. This book does not describe the theory but presents a 100% practical approach. It doesn’t matter whether you are experienced in this field, are looking to invest or making a fresh start, we hope that this book will boost your confidence tremendously. We express our sincere thanks to all Entrepreneurs who helped us in sharing their valuable time, experiences, guidance and knowledge to make this project a grand success. In fact, without them it would have remained a mere hypothesis. With the help of our expert entrepreneurs, we have divided the majority of our concepts into two parts: 1. Pre-planning: Planning is required before starting the start up. 2. Post-planning: Planning required for sustaining the company with profitability after you have started it. In spite of our best efforts, the book may contain within it some shortcomings. We would be thankful if they are brought to our notice. We shall consider our labor amply rewarded if this concept is appreciated for whom it is meant. About the Author Pawan Yadav is an enthusiastic writer on entrepreneur skills and youth expert. He writes extensively on youth, careers and entrepreneurship. Recently he has written a book "Bootstrapping A Software Company" which is sole source of inspiration and motivation for budding entrepreneurs. This book ensures a step by step approach to start and run a software company even if you have no budgets. The bootstrapping stands for same. He took three plus years to compile this concept for aspirants which is hundred percent practical