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Money Matters with Ritesh Agarwal - Founder of OYO Hotels & Homes

I'm glad that I got a chance to listen to two of my favorite entrepreneurs, Ritesh Agarwal - Founder of OYO Hotels & Homes and Shradha Sharma, Founder of Yourstory. I thank the Youstory Team for organizing this webinar.



Here are some key takeaways from the webinar:

Customer Economics:

Ritesh was asked this question on '' How was Oyo able to scale up its operations so fast that too in a short period of time?''
If we see OYO has scaled up its operations at a fast pace in the last year. So, the answer given by Ritesh was before launching any country they conduct interviews with customers, hotel owners and other stakeholders to understand what should the value proposition be for them and then launch in that country.

The Tip to Entrepreneurs here is talk to all your stakeholders as much as possible before developing the product as it will help you define their expectations and develop a product that satisfy their needs and meets their expectations.

 Concept of Unit Economics:

This concept is really important for all entrepreneurs as you need to be clear on what is your per unit cost,your marginal cost and the profitability margin. I remember a judge at a B - Plan Competition asking a team who had made a beautiful excel with all the cost and the judge just asked them,what is your unit cost and what is going to be your profitability per unit?

Just a small tip here when you are making a B - Plan presentation try to have the calculations as simple as possible so that the person who reads the excel can comprehend it easily and be realistic with your numbers,just showing a good projection won't help there needs to be a strong backing on how do you come to those figures.

Ritesh Sir has explained the operating cost of hotels in a really simple manner during this webinar. A hotel generally has two major operating expenses which are labour expenses and electricity. So his advice to hoteliers in this covid time is to control the expenses that are in their hand to improve cash flows and reduce capex expenditure.

Perseverance:

You will hear all entrepreneurs tell you that you need to be perseverant. This is an attribute every entrepreneur must have reason being Entrepreneurship is a journey which requires a lot of patience. As it is not necessary that your idea may be accepted by everyone at the first go, it takes time for people to adapt and try products and services, so be patient enough to see the results and don't loose your cool.

I hope you liked the content covered in this blog.


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