Want to be an entrepreneur? How Frantiger's journey can help you start a successful service-based startup In the third part, Yasmin Hussain finds out what it entails to launch a service-based startup by talking to Frantiger Founder, Ankush Mehrotra
When Ankush Mehrotra was rejected by the NDA on medical grounds, it clipped his dream of joining the Indian Air Force. It hasn’t, however, stopped him from flying high—as an entrepreneur. In 2017, Bengaluru-based Mehrotra set up Frantiger, a management consultancy, currently valued at Rs. 77.9 crore. What started as a franchise brokerage firm with just Rs.1 lakh has become a game changer in the industry.#sr_widget.onDemand p, #stock_pro.onDemand p{font-size: 14px;line-height: 1.28;} .onDemand .live_stock{left:17px;padding:1px 3px 1px 5px;font-size:12px;font-weight:600;line-height:18px;top:9px} #sr_widget.onDemand .sr_desc{margin:0 auto 0;} #sr_widget.onDemand .sr_desc{color: #024d99;margin-top:10px;} #sr_widget.onDemand .crypto .live_stock .lb-icon{8px 6px 5px 3px !important} #sr_widget.crypto.onDemand a.text{border-bottom:1px solid #ccc;padding-bottom:5px;display:block;width:100%} #sr_widget.onDemand .sr_desc .text p, #stock_pro.onDemand .sr_desc .text p{font-size:12px;font-weight:400;}
Budget with ET
Budget Highlights: Gareeb, youth, annadata and naari feature in Budget. What about taxes?
New vs Old tax regime: Here's a decoder to help you choose the right one
Will you pay more under new tax regime or old? Calculate here
Mehrotra was 27 when he launched Frantiger from his apartment, having dabbled in various jobs in the previous decade. His last stint was with Franchise India, where he noticed inefficiencies like heavy reliance on human intervention, high cost for franchise expansion, and lack of accessible solutions for middle-class entrepreneurs. So he decided to streamline franchise expansion while reducing costs and empowering people. Over the years, he has expanded to include turnkey solutions, management consulting, and mentorship programs.
Frantiger was launched as a private limited company as “this structure gave me the flexibility to take risks without jeopardising my personal finances”, says Mehrotra. He has invested Rs.28 lakh in the course of seven years, with 55% used for technology and R&D, 35% for training and remuneration, and 10% as operating expenses. Most of the R&D budget has gone into developing new solutions, including its own client relationship management software, HR management system, even a custom AI model, which can track every person who visits their website. “It can even read the text people write but never send to us,” says Mehrotra about the approach that has been key to its success.
However, the early days were tough, with Frantiger generating only Rs.50,000 in revenue, without profits, in the first year. The trade receivables piled up to Rs.42 lakh and losses continued for the first three years. However, persistence paid off and the company is growing at 14% CAGR today. Pricing your services right is crucial to being profitable, says Mehrotra. Frantiger charges Rs.4,999 per month, billed annually, to brands for listing. For investors, minimum billing starts at just Rs.249 and can go up to Rs.11,000 per quarter for consultation.
The challenges
Like most service-based enterprises, acquiring clients was a big challenge for Mehrotra. To build a strong foundation, he worked for free initially, focusing on delivering solutions that created an impact. “I concentrated on solving problems rather than selling services,” he explains. “When you focus on solving problems, your services sell themselves,” he adds. This mindset not only helped him gain his first few clients, but also laid the groundwork for Frantiger’s growth. Things started to change by the end of 2018, when they bagged a project from Bajaj Electricals under the Saubhagya scheme, providing electricity connections in 84 villages. This gave them the credibility they needed.
Artificial Intelligence(AI)
Java Programming with ChatGPT: Learn using Generative AI
By - Metla Sudha Sekhar, IT Specialist and Developer
Artificial Intelligence(AI)
Basics of Generative AI: Unveiling Tomorrows Innovations
By - Metla Sudha Sekhar, IT Specialist and Developer
Artificial Intelligence(AI)
Generative AI for Dynamic Java Web Applications with ChatGPT
By - Metla Sudha Sekhar, IT Specialist and Developer
Artificial Intelligence(AI)
Mastering C++ Fundamentals with Generative AI: A Hands-On
By - Metla Sudha Sekhar, IT Specialist and Developer
Artificial Intelligence(AI)
Master in Python Language Quickly Using the ChatGPT Open AI
By - Metla Sudha Sekhar, IT Specialist and Developer
Marketing
Performance Marketing for eCommerce Brands
By - Zafer Mukeri, Founder- Inara Marketers
Office Productivity
Zero to Hero in Microsoft Excel: Complete Excel guide 2024
By - Metla Sudha Sekhar, IT Specialist and Developer
Finance
A2Z Of Money
By - elearnmarkets, Financial Education by StockEdge
Marketing
Modern Marketing Masterclass by Seth Godin
By - Seth Godin, Former dot com Business Executive and Best Selling Author
Astrology
Vastu Shastra Course
By - Sachenkumar Rai, Vastu Shashtri
Strategy
Succession Planning Masterclass
By - Nigel Penny, Global Strategy Advisor: NSP Strategy Facilitation Ltd.
Data Science
SQL for Data Science along with Data Analytics and Data Visualization
By - Metla Sudha Sekhar, IT Specialist and Developer
Artificial Intelligence(AI)
AI and Analytics based Business Strategy
By - Tanusree De, Managing Director- Accenture Technology Lead, Trustworthy AI Center of Excellence: ATCI
Web Development
A Comprehensive ASP.NET Core MVC 6 Project Guide for 2024
By - Metla Sudha Sekhar, IT Specialist and Developer
Marketing
Digital Marketing Masterclass by Pam Moore
By - Pam Moore, Digital Transformation and Social Media Expert
Artificial Intelligence(AI)
AI-Powered Python Mastery with Tabnine: Boost Your Coding Skills
By - Metla Sudha Sekhar, IT Specialist and Developer
Office Productivity
Mastering Microsoft Office: Word, Excel, PowerPoint, and 365
By - Metla Sudha Sekhar, IT Specialist and Developer
Marketing
Digital marketing - Wordpress Website Development
By - Shraddha Somani, Digital Marketing Trainer, Consultant, Strategiest and Subject Matter expert
Office Productivity
Mastering Google Sheets: Unleash the Power of Excel and Advance Analysis
By - Metla Sudha Sekhar, IT Specialist and Developer
Web Development
Mastering Full Stack Development: From Frontend to Backend Excellence
By - Metla Sudha Sekhar, IT Specialist and Developer
Finance
Financial Literacy i.e Lets Crack the Billionaire Code
By - CA Rahul Gupta, CA with 10+ years of experience and Accounting Educator
Data Science
SQL Server Bootcamp 2024: Transform from Beginner to Pro
By - Metla Sudha Sekhar, IT Specialist and Developer
Securing capital has been another ongoing challenge. While they are currently exploring funding options, the company has been completely bootstrapped so far. “Don’t build a business with someone else’s money until you have complete control over it,” he advises. “Investors can steer your business in directions that may not align with your entrepreneurial goals,” he adds. To achieve shared goals, a good team is also essential, but hiring the right people proved daunting. Mehrotra first tried to employ Gen Z staffers, but soon discovered that many lacked the drive and passion for a fast-paced startup environment. He then moved to recruit experienced professionals with 5-10 years of expertise.
Marketing and expansion
While most businesses opt for advertising, Mehrotra channeled his marketing budget to hire people to write about Frantiger on various platforms and engage with organizations. “I wish we had started advertising earlier. What’s the point of creating something remarkable if no one knows about it?” he says. Mehrotra too is active on LinkedIn, Quora, Facebook, and X, helping search engines to know more about his business.Frantiger is now focusing on developing an AI-powered tool that matches brands with potential investors, reducing franchise acquisition costs by 98%.
How to start a service-based business
STEP 1Gain expertise
Before venturing on your own, acquiring deep industry knowledge is essential to identify gaps and opportunities. Mehrotra spent years working in various companies to gain insights and clarity on the niche he wanted to pursue.
STEP 2
Register your business
Registering as sole proprietorship is an option, but Mehrotra suggests forming an LLP or a private limited company for limited liability protection. An LLP will cost under Rs.2,000 depending on the capital invested. Setting up a private limited company cost Mehrotra Rs.8,000.
STEP 3
Set up a point of contact
Every business needs a point of contact—website, physical office, or both. A website is often the most cost-effective option. Leverage affordable tools like WordPress and Elementor to create a professional website for under Rs.5,000.
STEP 4
Build portfolio, advertise
Start by working for free to build a strong portfolio of case studies and testimonials. After establishing credibility, invest in targeted advertising across platforms like Facebook, LinkedIn and Instagram. Ensure your ads highlight your unique selling proposition and the problems you solve.
STEP 5
Build team & network
Focus on hiring self-driven individuals who can handle pressure and align with your vision. Networking too is vital. Attend events to connect with prospective clients and industry peers.
STEP 6
Monitor & adapt
Success demands continuous refinement and evolution. Mehrotra emphasises on using data to track performance, identify what’s working, and make informed decisions. “Treat data as your best friend,” he advises, as it provides a clear direction for your next step.
The Author is Ankush Mehrotra: Leading Frantiger from the front
#sr_widget.onDemand p, #stock_pro.onDemand p{font-size: 14px;line-height: 1.28;} .onDemand .live_stock{left:17px;padding:1px 3px 1px 5px;font-size:12px;font-weight:600;line-height:18px;top:9px} #sr_widget.onDemand .sr_desc{margin:0 auto 0;} #sr_widget.onDemand .sr_desc{color: #024d99;margin-top:10px;} #sr_widget.onDemand .crypto .live_stock .lb-icon{8px 6px 5px 3px !important} #sr_widget.crypto.onDemand a.text{border-bottom:1px solid #ccc;padding-bottom:5px;display:block;width:100%} #sr_widget.onDemand .sr_desc .text p, #stock_pro.onDemand .sr_desc .text p{font-size:12px;font-weight:400;}
This story originally appeared on: India Times - Author:Faqs of Insurances
