2. Yagna Entrepreneur Success Services LLP
• Increasing ‘certainty’ for SMB Owners to lead
their organizations to Growth with Stability in
an uncertain environment.
3. Yagna Entrepreneur Success Services LLP
Wants to partner with owners of Small / Medium
Businesses in Manufacturing, Distribution,
Projects and Services to improve their Order
Fulfillment and allied processes tapping the
immense potential offered by growing Indian
economy, and in doing so, create a massive
new revenue stream for the SMB owners and
themselves.
4. The Market Problem
• SME’s account for >50% of
Manufacturing output in India.
• Many start-ups come into existence
but their survival rate is dismal.
• 20% survive after 5 years and only 4%
after 10 Years
• Only a small fraction develop into
the high-growth firms which make
important contributions to job
creation.
• Such high mortality results in
wastage of scarce resources and
reduces productivity of economy
as a whole.
5. A known fact!
• An SME owner usually has to
wear many hats -- CEO,
accountant, human resources
manager, purchasing
manager, financial officer
• In most of these fields she
lacks adequate management
skills
• This usually results in a
number of mistakes, including
poor time management,
inadequate record keeping
and financial controls, pricing
mistakes, faulty hiring, and so
on.
7. TOC by Dr. Goldratt - elegant repeatable
solution
8. Identified
poorly
addressed
significant need
of the market
Build capability
to deliver to the
significant need
better than the
competition
Capitalize on
the unique
capability to
generate higher
throughput.
People – Involvement through
Measures
People – Involvement through
Measures
ITSolutions
ITSolutions
Sustain the
increased flow by
managing capacity
enhancement
smoothly.
1 2
4
3
9. YAGNA – Client Engagement Model
Awareness Assessment Adoption
10. Our Insight
• SMB owner is handicapped by lack of steady talent in
her team. Focus is the key ingredient to conserve
limited time and attention.
• Every improvement is a CHANGE, but not every change
is an IMPROVEMENT. SMB owner stumbles around in
the futile search of ‘that’ change which would lead to
growth and stability
• TOC, propounded by Dr. Eliyahu Goldratt, is a proven
technology to identify the area of focus, designing the
desired change and implementing the same in a true
WIN-WIN fashion. Viable case studies exist (Top-line ➔
Bottom-line in 4 years)
• Improvement focus areas taken up sequentially afford a
steep learning curve for the SMB owner and her team.
• There are ready solution templates applicable for
Production (both job-shop and mass production),
Distribution, Project Management and a critical mass of
global success stories.
11. Under the Hood
• Illustrative example of how a “FOCUS” facilitated SMB reaps by
improving resource and capital productivity
Viable Vision Challenge - Generic Company XYZ
What % annual improvements in Sales, Costs and Investment is needed to achieve Profits equal to current Revenue in four years?
Description
Year 0 + Change = Year 1 + Change = Year 2 + Change = Year 3 + Change = Year 4 Total %
Growth in 4
Years
Value
[$m]
% of
Sales
Qty Price
Value
[$m]
% of
Sales
Qty Price
Value
[$m]
% of
Sales
Qty Price
Value
[$m]
% of
Sales
Qty Price
Value
[$m]
% of
Sales
Sales Revenue SR $1,000 100% 20% 5% $1,260 100% 20% 5% $1,588 100% 20% 5% $2,000 100% 15% 5% $2,415 100% 142%
Variable Cost VC $400 40% 20% 0% $480 38% 20% 0% $576 36% 20% -5% $657 33% 15% 0% $755 31% 89%
Throughput T $600 60% 30% $780 62% 30% $1,012 64% 33% $1,344 67% 24% $1,660 69% 177%
Operating Expenses OE $500 50% 5% $525 42% 10% $578 36% 5% $606 30% 10% $667 28% 33%
Net Profit NP $100 10% 155% $255 20% 70% $434 27% 70% $737 37% 35% $993 41% 893%
Inventory In $250 25% -20% $200 16% 0% $200 13% 10% $220 11% 10% $242 10% -3%
Assets Ia $250 25% 0% $250 20% 5% $263 17% 0% $263 13% 5% $276 11% 10%
Total Investment I $500 50% -10% $450 36% 3% $463 29% 4% $483 24% 7% $518 21% 4%
Return on Investment ROI 20% 57% 94% 153% 192% 859%
Note
The increase in Sales can come from either increase in Volume AND OR increase in PRICE. Remember that when Selling Prices go up, Variable Cost don't necessarily go
up…This really provides a leverage point to increase NP and ROI…
Play with the numbers to prove it to yourselves...!
12. Our Business Proposition
• Is to approach SMB owners who have growth appetite to
implement our solutions to streamline operations – with
a nominal cost to them and also with a promise to derive
our total consulting and solution fees from additional
value generated by our intervention.
• As a Company, we want to initiate low risk actions for
SMBs and benefit from the upside when these entities
become successful.
13. How the business process will work
Attract SMB owners with
growth appetite through
references, workshops,
self-authored books
Pitch the low risk actions
to the owners of these
entities
BUILD on the initial
successes to embark on
full-fledged growth road-
map
Facilitate GROWTH in
profits, profitability,
cash-flow and earn our
‘just dividends’.
14. How the business process will work
Attract prospective
consultant entrepreneurs
with growth appetite
through references,
workshops, self-authored
books
Pitch the YESS
implementation framework
and ready knowledge base
BUILD on the initial
successes to embark on full-
fledged growth road-map
Facilitate GROWTH in
profits, profitability, cash-
flow and earn our ‘just
dividends’.
15. Our Clients and Partners
RAMDEVS MOTORS
https://www.demanddriventech.com/about/partners/#asia
Client Testimonials available at yagnaworld.com
16. Proof of Concept
• We worked with on many TOC implementations and have
turned around stagnating SMBs: A small sample
Description Before our engagement Post our engagements
Kohli Industries – Printing
Machines manufacturer for
Indian and Export markets
Assembly time on shop
floor = 60-80 days
35 days
A leading locking solutions
company
Channel Partners
inventory turns = 4-6
12-18
Availability of Made to
Stock SKUs = 60-70%
>95%
Lead time for Made to
Order SKUs = 45-60 Days
Lead time reduced by 50%
Two leading tools
manufacturing companies
Availability of Made to
Stock SKUs = 60-70%
>95%
17. The Market Size and Potential
~ 40% of
Manufacturing
output by S&M
enterprises
India likely to
become a $5
trillion economy
by 2025
India becoming a
single market
through GST
Make-in-India, Start-
up India, Stand-up
India, Skill India
Public
Procurement
Policy, Pradhan
Mantri MUDRA
Yojana
Rise of SME
focused B2B
ecommerce
Improving SME
lending with
growth in FinTech
firms
18. Competition Mapping
Company Primary Audience Revenue Stream Estimated Annual
revenues 2011
Vector Consulting Large Corporates Mult-year consulting
engagements
₹100 Crs
Goldratt India Cash Constrained
Companies
Cash release solutions ₹10 Crs
Aspire Infinite SMBs SAS software and onsite
facilitation
₹10 Crs
▪ The early movers are scaling well in revenues. They will be our primary
competition (As TOC becomes mainstream, SMB owners would search).
▪ It’s possible that other consulting companies will want to add TOC offerings
to their portfolio.
▪ We will win because we will be focused and have proven SOP for TOC
implementation.
19. Go to Market Plan
Complete our GOAL
like Novel, publicize
the book through
events
Pitch a ‘risk’ free
proposal to SMBs
Sign agreement and
implement a 3-6
month BUILD action
plan
Demonstrate
significant results of
Inventory Turns, Lead-
Time, OTIF
improvement
CAPITALIZE through
Mafia offers to their
clients, increase sales,
profits, profitability,
cash-flow
Establish 3-5 year
SUSTAIN road-map
Iterate and repeat
success with new
prospects
20. What are we looking for?
• 3 million US$ cash investments (covers 3 years
of cash cost and basic Capex)
• Introductions to online game companies and
game owners with whom we could get started
immediately.
Shared in confidence
21. US$ X.0 million over 3 years to be used for:
Cost for making 24 Freemium
Games in 36 months
Cost per
month in US$
Costs for 36
months in US$
Notes
Salary Cost of 3 founders 15,000 540,000 CEO, COO, CTO
Occupancy Cost 5,000 180,000
Office rent for 25 seater office in South
Mumbai
General Office Overheads 2,000 72,000 General office costs
Technology Costs 4,000 144,000 Costs of Hosting, Bandwidth, etc.
Game teams – 7
engineers/programmers,5
artists, 3 creative, 2 marketing,1
admin and accounts 36,000 1,296,000
Averaged at 2000 US$ per person per
month
Travelling and Accommodation 10,000 360,000 Local and International traveling, etc.
Marketing and Advtg 10,000 360,000 Test marketing, PR costs, etc.
TOTALS 82,000 2,952,000
Effective cost of each game = 123,000
US$
Shared in confidence
22. Revenues Potential of CHAOS TO SUCCESS Journeys
Key Metric Addressable
Audience
% who
convert
Revenue per
user – over the
game life
Revenue
Potential
per game
Smash Hit 15 mn 20% 3.00$ 9 million
Huge Hit 15 mn 15% 2.00 $ 4.5 million
Hit 15 mn 10% 1.50$ 2.25 million
Just Miss 15 mn 2 % 1.25$ 400 k
Forgive and
Forget
15 mn 0.5 % 1.00$ 75 k
Tragedy 15 mn 0.1% 0.70$ 10k
•Angry Birds has 12 million paying consumers from 41 million downloads –
conversion of 30%
•Talking Tom has 6 million paying consumers from 40 million downloads – 15%
conversion
Shared in confidence
23. Conservative Revenue, Profits and
Cash flow Projection of YAGNA over 3 years
Key Metric –
performance of the
24 games
Games that we
will create in this
category
Revenue Potential
game in US$
per Total Revenues
Smash Hit Nil 9 million US$ 0
Huge Hit Nil 4.5 million US$ 0
Hit 1 2.25 million US$ 2.25 million
Just Miss 4 400 k US$ 1.60 million
Forgive and Forget 10 75 k US$ 0.75 million
Tragedy 9 10k US$ 0.09 million
Totals Revenues
Less costs held back
24 total games 5.50 million
3.00 million
Revenue available to
share
2.50 million
Our 50% share and
net profit
1.25 million
Shared in confidence
24. Core Strategy – why will YESS work?
• SMB owners need not risk additional expenses
and investments in search of GROWTH with
STABILITY
We promise to EXPLOIT
existing investments (YESS
what is already sown)
• We offer a hassle free, lean back methodology
to SMB owners to transform their companies to
lean mean value generating outfits.
We offer knowhow
• We create a community of successful
entrepreneur consultants who thrive on
tackling challenges faced by SMB owners
We promote and market
25. What’s the Financial Model of YESS?
Build long
term equity
Earn quickly
after launch
Invest
upfront
In creating critical
mass of solutions,
clients and consulting
team
Novel Sales and
Workshop revenues
Variable performance
fees for Operational
improvements
Variable performance
fees for Profits and
Profitability
improvements
Implementation fees
for initial offering
License fee for
continued usage of
software solutions
26. Our Threats/Deaths/Weaknesses
• Bad choice of implementation team members who are
looking for “JOB” instead of entrepreneurship
• Competitive market leads to SMBs companies
demanding results guarantee
27. YESS founding team
Aniruddha Joshi
COO
He pays attention to
details
Deepak Nagar– CKO
He Googles …
Aysuh Agarwal - CTO
He weaves magic with
software …
Sachin Shete - CSO
He sells …
LinkedIn Profile LinkedIn Profile LinkedIn Profile LinkedIn Profile
28. Did you have these Q’s in mind?
Q - Will YESS be a software company also?
A – No. YESS will leverage software solutions for quick
implementation. Solution development will be
outsourced on results sharing basis.
Q – Who will own the IP of the solution developed by
you?
A – It’s a good question. We will own the IP in the 50-
50 ratio or higher depending on how we
negotiate the deal (e.g. IP ratio starts with 100%
for our existing solutions and sets to 50% when
we co-develop with software outfit).
29. Did you have these Q’s in mind?
Q – How will you handle logistics of
implementation? Don’t consulting
engagements involve extensive travel and
time?
A – Well, we will focus on specific geographical
area to begin with and work on cluster
concept so that we handle multiple
engagements with shared face-time.