Tuesday, August 25, 2015

What I learnt from selling my Indian tech startup

What I learnt from selling my Indian tech startup |#shyamis

by Commentary
I started InBoundio in January 2013. After doing a lot of freelancing, services and building casual hobby products, this was my first serious attempt at building a web product and business.
This also made me dive into core technology. Earlier, I only had surface knowledge of technology.
It did well and got reasonable success. We did plenty of iterations with product feature and pricing, and we got a good number of inquiries about our white-label marketing software.
But since I'm was building another company, AeroLeads, too, it became difficult to focus on two products. So, after six months of talks with several businesses, I sold InBoundio to an Australian media company, c9.
The last two years were fun in terms of learning and experience. Now, I have both as well as some cash, and I'll be using all this to grow my current product much faster.

Learning and experience

  1. It was a little tiring since I did all the work of talking and communicating with people. It was rewarding, too, since I now understand the complete business cycle, technology and marketing stack of any business. I was also able to understand the metrics that buyers look for. Saying this, I am very sure I am done selling businesses for a long time since that doesn’t excite me. Building businesses to sell them is also not a good business model.
  2. It is not easy to sell your startup sitting in India to someone in another country. Trust is a major problem as they don't know you, and you don't know them. This also means you will only appeal to buyers who are looking to buy in a certain price range to minimise the risk for them.
  3. I have seen many Indian businesses who go under the radar getting sold in the $1 million range through business brokers. If you think you can sell your business in this range, you should look to engage with brokers who have the right network. Do note that you will get valuation in multipliers of 2x-5x range, which is the industry standard for web businesses. It can be 10x if the buyer sees real growth potential. But do not expect 20x or such valuation as that rarely happens. Being realistic is important.
  4. You can get much higher valuation if you are willing to work with the new buyer for few years, do partnerships or take some money now and the rest later. At the end of the day, everyone wants to mitigate risk. I had few such proposals, but for me, it wasn’t about the money. I knew it could get messy as it isn't easy to partner with someone in a different country. So I went with an outright sale.
  5. The whole process is time-consuming and can take between three and six months. Make sure you don’t rush and cover the legal aspect of transferring ownership and assets.
  6. Prospective buyers will always look for these three parameters: growth potential, minimum liability, and existing revenue. If your startup has them, you should be fine. If not, you will find it difficult to make the calls.

Where to find buyers for your startups and businesses

  1. LinkedIn: I contacted several founders on LinkedIn using InMail, and got good responses. Few of them showed interest, but it was also the issue of “not having enough paying customers.” If you want businesses in a similar vertical to acquire you, remember that most of them only look for paying customers—and not for technology.
  2. Business brokers: There are plenty of business brokers and firms who help you sell businesses in the $50,000 to $10 million range. They take about 10-15% fees. And for someone in India, if you think you have the above three (growth, minimum liability and revenue), you should talk to them as this reduces risk, cuts down your time and effort and speeds up communication.
This post first appeared on pn.ispirt.in. We welcome your comments atideas.india@qz.com.

Women at all levels of UK companies are paid less than men

Women at all levels of UK companies are paid less than men |#shyamis

by Cassie Werber
It's old hat now that women are paid less than men, even if they’re at the very top of their industry. The latest confirmation comes from data in the UK showing that women in senior management or at director level in the country earn 11% less than their male counterparts, and are awarded with slightly more than half the average bonus given to men each year. The Chartered Management Institute, an industry group for managers, commissioned a survey of 72,000 UK managers in a broad set of public and private sector companies of various sizes, to compile the 2015 data.
The pay disparity between men and women is even bigger further down the corporate food chain. The average pay gap across all the survey respondents, which included positions ranging from junior executives to directors, was 22%, meaning women were paid an average of £8,524 ($13,374) less each per year.
“Having more women in senior executive roles will pave the way for others and ensure they’re paid the same as their male colleagues at every stage of their careers,” said Ann Francke, the CMI’s chief executive in a press release that accompanied the findings.
That will require more work. Women in the UK continue to outnumber men in junior management, the survey found, making up 67% of that cohort. But by the time they hit senior management their representation drops to 43%.
A UK government-backed report in March found that the number of women holding board positions in FTSE 100 companies was just shy of the country's 2015 target of 25%, a goal set in 2011 by the previous government when the proportion was closer to 12%. Of those companies' board seats, 23.5% are currently held by women.
So far, the UK hasn't instituted specific policies to promote its goal. For countries like Germany11 and Norway, imposing quotas on companies has helped boost the proportion of women on corporate boards.
Cassie Werber | August 26, 2015 at 1:00 am | Tags: careers, disparity, gender, management,pay, salary, women, women on boards, work | Categories: Uncategorized | URL:http://wp.me/p2G6tR-22Np

Look, a parade! China’s WWII victory march plans clash with falling markets and Tianjin

Look, a parade! China’s WWII victory march plans clash with falling markets and Tianjin |#shyamis

by Zheping Huang
China's woes have been mounting. First, there was the devastating chemical explosionsthat rocked Tianjin a fortnight ago, then an equally devastating market tumble on "Black Monday" that has raised bigger questions about the depth of the country's economic slowdown. But what China's leadership appears to be focused on right now is a massive military parade.
The parade, to commemorate the 70th anniversary of the end of World War II, will take place on Sept. 3, a newly created holiday to celebrate the allied forces victory over Japan. While Europe's (arguably mostly successful)  post-WWII reunification strategy might be summed up as "don't mention the war," in Asia unifying forces have lost out to rising nationalism in recent years. China's plans to commemorate the "War of Resistance Against Japanese Aggression as well as the World Anti-Fascist War" will be Xi Jinping's first non-National Day parade since being declared president.
This "dwell on the war" strategy hasn't sat well with most of the rest of the world. On Aug. 25, the Chinese government released a list of the 30 world leaders that will attend the parade. Except for South Korea's Park Geun-hye and Russia's Vladimir Putin, the others attendees are from small, not very powerful countries. And South Korea's Parkmay not even attend.
Nonetheless, over the weekend, Beijing held a full dress parade rehearsal of 12,000 soldiers and over 500 pieces of military equipment—many brand new—from the People's Liberation Army. The rehearsal showed 17 foreign armies are to march in the parade, but like the attendees, except Russia, they are not major world powers—other participants include Kazakhstan, Mexico, and Cuba.
The Chinese government is also considering amnesty for criminals who fought against Japanese invasions in WWII. But it has also rolled out a long list of public controls, from traffic restrictions in Beijing to online censorship nationwide, that are irritating its own citizens.
Will the parade burnish Beijing's image at home, and inspire patriotism abroad? That remains to be seen.

The Forbidden City

The capital's residents are finding that Beijing itself is more like a forbidden city than ever before in the run-up to the parade.
During last weekend's rehearsal, they were inconvenienced by the shutdown of roads, railway stations, and shopping streets, and a ban on hotel reservations and art events. The same restrictions will be in effect again on Sept. 3. Besides the city's two airports, some public parks, wireless internet, and radio signals near the parade site will also be shut down on that day.
Beijing has banned aerial activities including light-weight helicopters, gliders, hot air balloons and aerostats from Aug. 22 to Sept. 4, state-run news agency Xinhua reported.
Aircrafts okay, drones not.
Aircrafts okay, drones not.
There is even a ban on drone sales. Leading domestic drone maker DJI said on China's major e-commerce platform JD.com that it has suspended drone sales (link in Chinese) in Beijing from Aug.1 to Sept. 3 in accordance with city aviation regulations. Other drone sellers on JD. com have also cancelled deliveries (link in Chinese) to Beijing, without specifying any reason. Alibaba's e-commerce platform Taobao posted an announcement (link in Chinese) to halt all drone sales on the website though some shop owners still offer the service. The sales ban is so extreme that you can't search for the word "drones" on either website.
Anonymous package deliveries are also forbidden in the city. From Aug. 20 to Sept. 12, senders and receivers of packages in Beijing are required to register with post offices and courier companies using their real names, Southern Metropolis Daily reported (link in Chinese). All packages will be scanned for security reasons. Tibet is the only other region that has the same restrictions.
The "show your ID" policy is being rolled out in small businesses like restaurants as well. Pictures posted on Twitter-like Sina Weibo show signs from Beijing restaurants asking people to present ID cards before ordering.
read the placard.
"Please show your ID card before you order," the placard reads.
The Beijing government has mobilized 850,000 citizens to patrol the city to ensure safety ahead of the parade. They will be sent to "every street, every alley" to look for signs of "security hazards" and report them to police.
The restrictions have dampened enthusiasm for the parade itself in China. "Don't come to Beijing during any event. You won't know how long it takes for a safety check." One blogger commented on Weibo.

Parade blue

Beijing's noxious air pollution is not impossible to clean up, as residents have learned before—it all really depends on the government. In the past, Chinese officials have ensured a blue sky for foreign leaders, but not for its own citizens, turning skies "APEC blue" ahead of the economic conference.
Now, the goal is being called "Parade blue."
Starting on Aug. 20, private vehicle drivers will alternate days they can use Beijing's roads, based on whether their license plates end with even or odd number. Most government vehicles are also banned entirely. Starting Aug. 28, some 10,000 factories will be shut down or reduce production, and over 40,000 construction sites will be closed in Beijing and its surrounding provinces, Chinese financial media Caixin reported.
These goal is to reduce emissions of major air pollutants by 40% in Beijing and 30% in nearby areas compared to the same period last year, Beijing's vice mayor told Caixin.
Cycling under a rare blue sky.
Cycling under a rare blue sky.
The People's Daily, the Communist Party's leading mouthpiece, posted pictures of Beijing's recent blue sky and credited it to the government's new measures on Twitter-like Sina Weibo (link in Chinese).
But the post has only invited huge public criticism. As one blogger commented, "it's nothing worth showing off" and instead "we should feel sad about it." Another blogger wrote (link in Chinese): "Instead of Parade blue or APEC blue, I hope there will be a Beijing blue in the future."

Censorship nationwide

The Chinese government has handed out censorship instructions related to the military parade to homegrown websites, according to China Digital Times, a news site affiliated with the University of California, Berkeley, that monitors China censorship.
Leaked instructions from China's top internet watchdog order all websites to review all news and comments related to the parade until Sept. 5 before posting, to guarantee nothing will attack the Communist Party or the army. It also ordered all websites to "promote positive, sunny netizen commentaries."
Big Internet companies including Sina, Tencent and Baidu, as well as some more outspoken media outlets including financial media Caixin and state-run digital publication The Papers are also named in the instructions. These companies must report the names and the contact information of auditors who supervise the websites' online contents, daily.
And Beijing is reportedly cracking down on virtual private networks, which allow internet users to bypass censorship by giving them an ISP address outside the country.
TV programs have been carefully chosen. The state's broadcast watchdog has ordered TV stations to suspend broadcasting entertainment programs including talk shows, reality shows and TV series from Sept. 1 to 5. Instead, national broadcaster CCTV, along with some provincial TV broadcasters, will air "special programs" on the war against Japan instead, the Beijing Youth Daily reported (link in Chinese). Of course, CCTV will air the parade nationwide on the morning of Sept. 3.
Last month, the Chinese government said it will shut down the stock market on Sept. 3 and 4 for the new holiday. This state-mandated trading halt could prevent the stock market from falling further, and distract the public by whipping up anti-Japanese sentiment, as Quartz has noted.
China's internet users joked that retail investors—with green caps, representing the color stocks turn on China's market boards when they drop—should march in the parade, because they've used their hard-earned money to save the market for the country.
RT: Chinese military parade, the legion of stock investors.pic.twitter.com/PrckZkEmwB
— Zijing (@zijing_wu) August 24, 2015
A week ahead of the big event, there's plenty of positive comments online, like this on on Zhihu (link in Chinese), a Quora-like question and answer messaging board:
A powerful country will never treat others’ homelands as weapon testing grounds, but it will display its modern weapons on the capital's square and tell the enemies: Dare you come, you will have little chance of returning.
But it is impossible to tell how many of those come from China's "50 cent party," the internet users paid to post pro-government comments. And plenty of China's citizens sound deeply cynical about the event.
"It will let your blood surge, and you will forget about your pay stub and prices [of food and goods] for a moment,” one blogger wrote about the meaning behind the parade on Zhihu.
“It’s an enthronement that wastes manpower and money," another blogger wrote on online forum Tianya (link in Chinese), describing the parade as as effective as "injecting chicken blood," a form of medical therapy popular in China during the Cultural Revolution. Still, he predicted, "it will make the flunkies feel one climax after another."

Quartz Daily Brief—Europe and Africa edition—Stock market turmoil, Splenda sale, illicit birthday parties

Quartz Daily Brief—Europe and Africa edition—Stock market turmoil, Splenda sale, illicit birthday parties |#shyamis

by Quartz
What to watch for today
Boeing employees take the aircraft maker to court. A class action suit brought by 190,000 workers and retirees of Boeing accuses the US aerospace company of managing their pension investments poorly, resulting in high investment fees. Their federal court case opens today (paywall).
South Sudan flirts with a peace deal. President Salva Kiir said he may sign an agreement with rebel leader Riek Machar to demilitarize the capital of Juba and enable rebels to appoint two state governors. The UN Security Council has threatened to impose sanctions if Kiir doesn't sign by Sept. 1.
WPP's quarterly update. The world's largest advertising company, which owns agencies including Ogilvy & Mather, is expected to report a 12% increase in profits. CEOMartin Sorrell says China will continue to be the most important global advertising market, despite its recent troubles.
While you were sleeping
China’s stocks reacted messily to an interest-rate cut. The Shanghai composite index gained as much as 1.2% in early trading and lost as much as 3.9%; it ended up by 0.8%. The Shenzhen index also rose and fell several times in the morning, ending down 0.2%. The government’s failure to calm market volatility has raised questions (paywall) about whether prime minister Li Keqiang will be forced out of his position.
The US got over the China market panic, briefly. US stock indices experienced a strong surge after China cut the cost of borrowing, but the stocks gave back their gains at the end of the day. The S&P 500 closed down 1.4%, after earlier being up by 2.9%.
Barack Obama gave Joe Biden his blessing for a 2016 presidential run. The US president made it clear that he would neither oppose nor counsel against the current vice president, should he decide to run next year, according to CNN. That adds more speculation to earlier reports that Biden may be canvassing for support among powerful Democrats.
Johnson & Johnson sold Splenda. The sugar substitute brand records annual sales of $300 million, but the company wants to focus more on healthcare products. The buyer, Heartland Food Products Group, paid an undisclosed price.
South Korean retailers got a boost. Department store sales rose 0.7% in July (paywall) from a year earlier, a sign that things are returning to normal after an 11.9% drop in June. That fall was due to the MERS crisis; the respiratory disease killed 36 people in South Korea and damaged its valuable tourism industry.
Quartz obsession interlude
Jake Flanagin on what ending birthright citizenship would mean in the US."Repealing birthright citizenship sends a powerful message: The kind of immigrant who received birthright citizenship in the past (mainly from Europe) was adding to the national equation; the kind of immigrant arriving today (mainly from Latin America) will not." Read more here.
Matters of debate
Stop checking your stocks. The more you look at them, the more likely they are to be down.
Is your summer reading assignment offensive? Too bad. Higher education requires exposure to new ideas, even if they make you uncomfortable.
Black holes aren't inescapable, after all. Stephen Hawking has a theory about how particles' properties can leak out.
North Korea's spat with South Korea was to get China's attention. Nuclear threats are a way to get more aid from its sole ally.
Jimmy Carter's legacy has been vastly underrated. The former US presidentdeserves more credit for his actions in his office, not just afterwards.
Surprising discoveries
Robots are learning how to cook us breakfast. They parse how-to websites to figure out how best to make pancakes, for example.
The Middle East is a bright spot for air quality. It's the only region in Asia wherepollution is decreasing.
Public birthday celebrations are illegal in Tajikistan. One man got busted afterposting party photos on social media.
South Africans found humor in a hashtag when their currency tanked. Lots of things are #StrongerThanTheRand.
The US and Russia can't agree on how to handle outer space pee. The International Space Station has two different purification systems.
Our best wishes for a productive day. Please send any news, comments, Tajikistan birthday invites, and breakfast-cooking robots to hi@qz.com. You can follow us on Twitter for updates throughout the day.

Sign up for the Quartz Daily Brief here, tailored for morning delivery in Asia, Europe & Africa, and the Americas.

 
Quartz | August 26, 2015 at 12:08 am | Tags: daily brief | Categories: Uncategorized | URL:http://wp.me/p2G6tR-22Zw

Quartz Daily Brief—Europe and Africa edition—Stock market turmoil, Splenda sale, illicit birthday parties

Quartz Daily Brief—Europe and Africa edition—Stock market turmoil, Splenda sale, illicit birthday parties |#shyamis

by Quartz |
What to watch for today
Boeing employees take the aircraft maker to court. A class action suit brought by 190,000 workers and retirees of Boeing accuses the US aerospace company of managing their pension investments poorly, resulting in high investment fees. Their federal court case opens today (paywall).
South Sudan flirts with a peace deal. President Salva Kiir said he may sign an agreement with rebel leader Riek Machar to demilitarize the capital of Juba and enable rebels to appoint two state governors. The UN Security Council has threatened to impose sanctions if Kiir doesn't sign by Sept. 1.
WPP's quarterly update. The world's largest advertising company, which owns agencies including Ogilvy & Mather, is expected to report a 12% increase in profits. CEOMartin Sorrell says China will continue to be the most important global advertising market, despite its recent troubles.
While you were sleeping
China’s stocks reacted messily to an interest-rate cut. The Shanghai composite index gained as much as 1.2% in early trading and lost as much as 3.9%; it ended up by 0.8%. The Shenzhen index also rose and fell several times in the morning, ending down 0.2%. The government’s failure to calm market volatility has raised questions (paywall) about whether prime minister Li Keqiang will be forced out of his position.
The US got over the China market panic, briefly. US stock indices experienced a strong surge after China cut the cost of borrowing, but the stocks gave back their gains at the end of the day. The S&P 500 closed down 1.4%, after earlier being up by 2.9%.
Barack Obama gave Joe Biden his blessing for a 2016 presidential run. The US president made it clear that he would neither oppose nor counsel against the current vice president, should he decide to run next year, according to CNN. That adds more speculation to earlier reports that Biden may be canvassing for support among powerful Democrats.
Johnson & Johnson sold Splenda. The sugar substitute brand records annual sales of $300 million, but the company wants to focus more on healthcare products. The buyer, Heartland Food Products Group, paid an undisclosed price.
South Korean retailers got a boost. Department store sales rose 0.7% in July (paywall) from a year earlier, a sign that things are returning to normal after an 11.9% drop in June. That fall was due to the MERS crisis; the respiratory disease killed 36 people in South Korea and damaged its valuable tourism industry.
Quartz obsession interlude
Jake Flanagin on what ending birthright citizenship would mean in the US."Repealing birthright citizenship sends a powerful message: The kind of immigrant who received birthright citizenship in the past (mainly from Europe) was adding to the national equation; the kind of immigrant arriving today (mainly from Latin America) will not." Read more here.
Matters of debate
Stop checking your stocks. The more you look at them, the more likely they are to be down.
Is your summer reading assignment offensive? Too bad. Higher education requires exposure to new ideas, even if they make you uncomfortable.
Black holes aren't inescapable, after all. Stephen Hawking has a theory about how particles' properties can leak out.
North Korea's spat with South Korea was to get China's attention. Nuclear threats are a way to get more aid from its sole ally.
Jimmy Carter's legacy has been vastly underrated. The former US presidentdeserves more credit for his actions in his office, not just afterwards.
Surprising discoveries
Robots are learning how to cook us breakfast. They parse how-to websites to figure out how best to make pancakes, for example.
The Middle East is a bright spot for air quality. It's the only region in Asia wherepollution is decreasing.
Public birthday celebrations are illegal in Tajikistan. One man got busted afterposting party photos on social media.
South Africans found humor in a hashtag when their currency tanked. Lots of things are #StrongerThanTheRand.
The US and Russia can't agree on how to handle outer space pee. The International Space Station has two different purification systems.
Our best wishes for a productive day. Please send any news, comments, Tajikistan birthday invites, and breakfast-cooking robots to hi@qz.com. You can follow us on Twitter for updates throughout the day.

Sign up for the Quartz Daily Brief here, tailored for morning delivery in Asia, Europe & Africa, and the Americas.

Quartz | August 26, 2015 at 12:08 am | Tags: daily brief | Categories: Uncategorized | URL:http://wp.me/p2G6tR-22Zw