Brief Summary
This podcast episode features an interview with Sanjay, the founder of StartGlobal, a company that helps non-residents start businesses in the US. Sanjay shares his entrepreneurial journey, starting from his early days as a programmer in Kerala, India, to his decision to move to the US and build StartGlobal. He discusses the challenges he faced, including his hearing loss, the difficulties of starting a company in the US as a non-resident, and the importance of finding the right business model. Sanjay also shares his insights on bootstrapping vs VC funding, the importance of automation, and the future of AI.
- Sanjay's journey from a programmer in Kerala to a successful entrepreneur in the US.
- The challenges of starting a company in the US as a non-resident.
- The importance of finding the right business model and automating processes.
Introduction
This episode introduces Sanjay, the founder of StartGlobal, a company that helps non-residents start businesses in the US. Sanjay's company has achieved a million-dollar revenue, operating from Kerala with a small team. He has received funding from prominent investors like the founder of Twitter and Balaji Srinivasan of Coinbase. The episode highlights the unique challenges and opportunities of starting a business in the US as a non-resident.
Where did you start?
Sanjay started his journey as a computer science student at a government college in Thrissur, Kerala. He was already programming during his studies, but he experienced a significant hearing loss during his second and third year. This made it difficult for him to attend classes and interact with people. He relied heavily on lip reading and online resources to continue his learning.
Sanjay's hearing loss led him to focus on email communication. He started sending cold emails to prominent figures in Silicon Valley, including Elon Musk and the CEO of Apple. While he didn't receive replies from everyone, he did get a response from Balaji Srinivasan, who eventually invested in his company. Sanjay emphasizes the importance of persistence and building relationships through email.
Started learning Android/first job
Sanjay started learning Android development when it was gaining popularity. He took a course at an institute in Kochi, but quickly realized he could learn more effectively on his own. He started taking on freelance projects, building apps for clients and learning from online communities like Stack Overflow. This experience led to his first job at a company that provided project services to engineering students.
Online communities/Stack Overflow
Sanjay credits online communities like Stack Overflow for his early development as a programmer. He actively participated in the community, answering questions and learning from experienced developers. He even earned a badge for answering questions on Stack Overflow for 365 consecutive days.
Google Developers Group
Sanjay started the Google Developers Group (GDG) in Kerala, the first of its kind in the region. This initiative brought together developers and provided them with opportunities to learn from industry experts and connect with other professionals. Sanjay organized events with speakers from major companies like Infosys, and the GDG became a valuable resource for developers in Kerala.
Partnered with Uber for an event
Sanjay's GDG initiative led to partnerships with companies like Uber. He organized an event where attendees received free Uber rides, providing exposure for Uber and convenience for attendees. This demonstrates Sanjay's ability to leverage community building for business opportunities.
What made you start your own business?
Sanjay's desire to start his own business stemmed from his early experiences working on freelance projects and his time at the engineering institute. He realized the potential for building scalable products and wanted to create something that could benefit others.
How Sanjay reached America/Draper University
Sanjay's journey to the US began with his acceptance into Draper University, a business school founded by Tim Draper, a prominent venture capitalist. He secured a scholarship to attend the program, which involved a rigorous three-month training program in Silicon Valley.
Draper program experience
Sanjay's experience at Draper University was transformative. He learned from successful entrepreneurs and investors, including Elon Musk and the founders of Airbnb. He also participated in a challenging military-style training program, which instilled in him a sense of resilience and discipline.
Applying knowledge from 'Traction' in business
Sanjay applied the knowledge he gained from the book "Traction" to his business. The book emphasizes the importance of finding the right marketing channels and focusing on customer acquisition. This helped him understand the importance of marketing and how to reach the right audience.
How Sanjay registered his company in the U.S.
Sanjay faced challenges registering his company in the US as a non-resident. He had to navigate complex legal and tax regulations, and he learned the importance of having the right legal and accounting support. He eventually registered his company with the help of a lawyer, who he compensated with equity in the company.
StartGlobal
StartGlobal was born out of Sanjay's experience navigating the complexities of starting a company in the US as a non-resident. He realized that many other non-residents faced similar challenges and wanted to create a platform that simplified the process. StartGlobal provides a one-stop solution for non-residents, offering services like company registration, tax ID acquisition, and legal and accounting support.
Launching the first version of his product
The first version of StartGlobal's product was a simple landing page. Sanjay focused on providing a clear value proposition and highlighting the benefits of using StartGlobal. He priced his services competitively, offering a comprehensive package for a lower price than competitors.
First client
StartGlobal's first client came from Argentina. They found the company through Google and were impressed by the value proposition. This initial success encouraged Sanjay to build out the backend of the platform and provide more comprehensive services.
Time taken to acquire 10 clients
It took StartGlobal about a year to acquire its first 10 clients. Sanjay focused on building relationships and providing excellent customer service. He also started experimenting with Google Ads to reach a wider audience.
Growth after the second year
StartGlobal experienced significant growth after its second year. They started offering additional services like tax filing and accounting support, and they continued to refine their marketing strategy. They also built out their internal tools to automate processes and improve customer support.
Current status after 5 years into StartGlobal
After five years, StartGlobal has served over 1,000 clients from over 123 countries. The company has generated over 2,000 crore rupees in revenue, with clients primarily from countries like Argentina and Brazil. Sanjay emphasizes the importance of focusing on small businesses and bootstrapping the company.
Types of businesses registering through StartGlobal
StartGlobal primarily serves small businesses with 1-5 employees. They also work with venture-funded companies, but their focus is on providing a comprehensive solution for bootstrapped businesses. They offer services like company setup, payment processing, and legal and accounting support.
Shutdown process
StartGlobal also provides a platform for shutting down companies. They have developed a process that ensures compliance with legal regulations and provides a smooth transition for clients. This demonstrates their commitment to providing a complete solution for businesses at all stages.
Tools Sanjay is using
Sanjay uses a variety of tools to manage his business, including Google Ads for marketing, Help Scout for customer support, and Bolt for rapid prototyping. He emphasizes the importance of automation and building internal tools to streamline processes.
Managing customer support with only 2 people
StartGlobal manages customer support with a team of just two people. They have developed a system that uses pre-written answers and automated processes to handle a large volume of inquiries. This demonstrates the power of automation and efficient customer support strategies.
Company automation
Sanjay believes in automating as many processes as possible. StartGlobal has built internal tools for tasks like sending invoices, generating legal documents, and managing customer support. This allows them to operate efficiently with a small team.
Bootstrap vs VC funded
Sanjay prefers bootstrapping his company over VC funding. He believes that bootstrapping allows for more control and flexibility, and it forces entrepreneurs to focus on building a sustainable business. He acknowledges that VC funding can be beneficial for scaling, but he prefers to maintain a more grounded approach.
Good, bad, ugly, and key takeaways
Sanjay reflects on the good, bad, and ugly aspects of his entrepreneurial journey. He highlights the importance of persistence, learning from mistakes, and staying grounded. He also emphasizes the importance of finding the right business model and automating processes.
Experience with Lulu
Sanjay shares his experience working on a project for Lulu Hypermarket. He developed a mobile app that allowed customers to scan items, generate bills, and make payments. This project demonstrates his ability to identify opportunities and develop innovative solutions.
Building from Kerala to the world: Is it necessary?
Sanjay believes that building a business from Kerala to the world is possible and advantageous. He highlights the lower cost of living and the availability of skilled talent in Kerala. He also emphasizes the importance of focusing on the right market and building a sustainable business model.
Does Trump's victory in the election affect business in America?
Sanjay acknowledges that political events can impact businesses, but he believes that StartGlobal's platform is relatively unaffected by political changes. He cites the example of the war in Ukraine, which impacted some of their clients in Russia. He emphasizes the importance of being adaptable and prepared for unexpected events.
Long-term goals
Sanjay's long-term goal is to make StartGlobal a global platform that enables anyone to start a business in the US. He plans to expand into new markets like Dubai and Singapore, and he believes that the company has the potential to become a major player in the global business landscape.
Plans on scaling the team
Sanjay plans to scale his team gradually, focusing on referrals and building a strong company culture. He believes in keeping the team small and efficient, and he emphasizes the importance of hiring people who are passionate about the company's mission.
Thoughts on AI
Sanjay sees AI as a tool that can empower people and automate processes. He believes that AI can help businesses operate more efficiently and create new opportunities. He also acknowledges the potential risks of AI and emphasizes the importance of using it responsibly.
KPH Mafia
Sanjay is a member of the KPH Mafia, a group of entrepreneurs and developers from Kerala. He shares his experiences with the group and highlights the importance of community support and knowledge sharing. He believes that the KPH Mafia has played a significant role in his entrepreneurial journey.
Making a 100 crore company vs 1 crore company
Sanjay believes that building a 1 crore company can be more impactful than building a 100 crore company. He argues that smaller companies can have a greater impact on individual lives and communities. He also emphasizes the importance of focusing on building a sustainable business that creates value for customers.
Decrease in building time
Sanjay highlights the significant decrease in building time for software products. He attributes this to the availability of tools like Bolt, which allow for rapid prototyping and development. He believes that this trend will continue, making it easier for entrepreneurs to build and launch products.
Spending project funds
Sanjay emphasizes the importance of spending project funds wisely. He shares his experience with a company that received funding but spent it on personal expenses instead of building the business. He believes that entrepreneurs should prioritize building a sustainable business and avoid unnecessary spending.
Phases in product building
Sanjay outlines the different phases of product building. He emphasizes the importance of customer feedback and iterating on the product based on user needs. He also highlights the importance of building a strong team and creating a culture of continuous improvement.
BMW milestones
Sanjay shares his experience with buying a BMW as a milestone for his company's success. He emphasizes the importance of setting goals and celebrating achievements. He also acknowledges the importance of managing expectations and staying grounded.
Next milestone (accelerator)
Sanjay's next milestone is to launch an accelerator program for entrepreneurs in Kerala. He wants to provide support and mentorship to aspiring entrepreneurs and help them build successful businesses. He believes that this program will contribute to the growth of the entrepreneurial ecosystem in Kerala.
Health, wealth, and relationships
Sanjay discusses the importance of balancing health, wealth, and relationships. He shares his own experiences with managing his time and prioritizing his well-being. He emphasizes the importance of finding a balance that works for each individual.
Solutions for pivots and buyouts
Sanjay discusses the challenges of pivoting and buyouts. He shares his experience with a venture that failed and the importance of letting go of projects that are not working. He also emphasizes the importance of having a clear exit strategy and being prepared for unexpected events.
Procedures for starting a company in India vs USA
Sanjay compares the procedures for starting a company in India and the US. He highlights the ease of starting a company in the US, especially for those with a social security number. He also discusses the challenges of starting a company in India, including the need for multiple documents and approvals.
Experience of military training in Draper University
Sanjay shares his experience with the military training program at Draper University. He describes the physical and mental challenges of the program and how it helped him develop resilience and discipline. He believes that this experience has been invaluable in his entrepreneurial journey.
Recommended book
Sanjay recommends the book "Traction" by Gino Wickman. He believes that the book provides valuable insights on finding the right marketing channels and building a sustainable business.
Book by Sanjay: 'How to Start a Million Dollar Business in 24 Months'
Sanjay has written a book titled "How to Start a Million Dollar Business in 24 Months." The book provides a step-by-step guide for entrepreneurs who want to start a business in the US. It covers topics like finding the right idea, fundraising, building a team, and marketing.
Tools currently using
Sanjay continues to use a variety of tools to manage his business, including Bolt for rapid prototyping, Slack for communication, and Help Scout for customer support. He emphasizes the importance of finding the right tools for each task and automating processes to improve efficiency.
How money reaches the account during fundraising
Sanjay explains the process of receiving funds after a successful fundraising round. He emphasizes the importance of having the right legal and financial documentation in place to ensure a smooth transfer of funds. He also highlights the importance of building relationships with investors and maintaining transparency.
How Twitter's founder invested
Sanjay shares the story of how the founder of Twitter, Jack Dorsey, invested in his company. He received an email from Dorsey's financial handler, who was impressed by StartGlobal's story. The investment was made quickly and efficiently, demonstrating the power of building relationships and having a strong value proposition.
Crowdfunding
Sanjay discusses his experience with crowdfunding. He found that crowdfunding was not as successful as he had hoped, but he learned valuable lessons about building a community and engaging with customers. He believes that crowdfunding can be a viable option for some businesses, but it's important to have a clear strategy and a strong community.
Ending notes to the audience
Sanjay concludes the episode by encouraging listeners to pursue their entrepreneurial dreams. He emphasizes the importance of persistence, learning from mistakes, and building a strong community. He also highlights the opportunities available to entrepreneurs in Kerala and the potential for building successful businesses from the region.
