Working from home she runs a Rs. One Crore (INR 10 Million) Company

"That's very easy," laughs Namita Sibal when asked how she manages both business and family. The 35-year-old mother of two, along with friend Manisha Gupta started indianartcollectors.com a Web site that acts as a platform between art collectors and artists/painters.

Her day begins at 6.30. After packing off her kids to school and husband to office ("husbands are like children too", she chuckles) by 9.30 she gets back to work. Two hours of web surfing later she goes to the gym for an hour.

By the time her children come back home at 2.30 pm she has almost done a good part of her job.

"It is such an easy business model and that's why I opted for it," she says about Indianartcollectors. In just three years this team of two has notched revenue of Rs 60 lakh just by helping get art collectors (buyers) and artists (sellers) together. They estimate to end the year 2008 with a revenue of Rs one crore says an emphatic Namita.

Here she discusses the story behind Indianartcollectors and how the business actually works.

The story behind Indianartcollectors

There was this thing called the Internet waiting for us to take advantage of. Being collectors we wanted to meet collectors of Indian contemporary art from the other countries.

We thought why not post our works, collections on a Web site we would make ourselves. We have art collections, paintings that we wanted to post on the Web site and share it with other people interested in arts. The Indian collector community is so scattered and we wanted to share our art with them.

Suppose you have a beautiful painting and want others to comment on it, know (details like) where we bought it from for how much. This was a nice way of meeting different people.

The other thing that inspired us was the huge commissions charged by art galleries when we wanted to sell our collection. These art galleries charge as much as 25 to 30 per cent of the cost of the paintings. Suppose I bought a painting for Rs 100,000 and it appreciates by Rs 25,000-30,000 in a year. Now if I have to sell it then all my profits get eaten up by the commission we pay to the art galleries.

So we thought why not take advantage of the Internet. Put it online and let the best bidder buy art posted by artists from all over the country. The interesting thing is that we charge no commission at all from the buyer and that is how it started.

We got lots of collectors coming to our Web site, exchanging their art with each other, talking about which work they got from which gallery, which auction and such other discussions. Once we had a sizeable number of collectors on our Web site artists started approaching us asking us to sell their works through our Web site.

How does it work then?

We act as a platform between the buyer (art collector) and the seller (artist, painter). Once the buyer decides to buy a piece of art through our Web site we forward the same to the respective artist. The artist then ships the painting to the address given by the buyer.

In the meanwhile we collect the money from the buyer and keep it in our custody. Once the buyer confirms the safe and undamaged receipt of the painting we give the money to the artist less our commission.

So the artist is assured of the payment and the buyer is assured of her/his painting. If there is some damage to the painting during the transit then the artist pays for it. The artist also bears the shipping charges. So we are like a trust in which both the buyer and seller have faith.

We don't charge the buyer. We take a commission of 15 per cent from the artist. We also ensure that the artist is a genuine artist; we get them authentication certificates personally signed by an expert panel that comprises of known names. This helps when collectors want to re-sell it to others.

Prices are all inclusive and there are no hidden costs.

Challenges that you faced while changing the way art is bought-sold in India

Actually we haven't had much of a challenge. This is because we are a one-stop-shop for collectors to buy genuine piece of art and paintings and for artists to sell their art in an open transparent manner. We are not in competition with all those galleries that have their individual Web sites.

Our Web site gives a very empowering experience. The artists can reach a global audience by posting their work on Indianartcollectors.com. We have people from Greece and Rome buying Indian contemporary art.

Here again, if the artists sells her/his piece at say Rs 100,000 then s/he gets Rs 85,000 after paying a 15 per cent commission to us. The shipping charges, replacement of painting or returning money if the painting reaches the buyer in bad shape rests with the artists.

Profile of your artists

Though we have registered artists belonging to all age groups most of them are young. There is a bit of polarisation in the art world. There are extremely expensive artists and there are these young and emerging artists.

We have a range of artists on our Web site -- from the first-timers to those who have had many a successful exhibitions to their names. We have a very young artist called Durbanand Jana from Bengal who is still studying in college. There is another young artist Upasana Tripathi from Lucknow. Both are in the 22 to 23 age groups. While both of them are very young they had wonderful exhibitions recently and their art was much appreciated by collectors.

The minimum and the maximum amount an artist has fetched

The work of our artists range from Rs 7,000 to Rs 200,000 and we sell 30-40 paintings every month.

How do you zero in on a promising artist?

We have an art panel which comprises of famous art collectors. So it is the art panel that decides on which artists to feature on our Web site. We get as many as 10 to 15 applications every week out of which we short list only a couple.

Artists who are rejected can come back again after six months when their latest work is reviewed anew and a call is taken based on that. However, this does not mean that the artists whom we don't select are not good artists.

What is indianartcollectors' annual income?

Last year we earned Rs 60 lakh (Rs 6 million) in revenues and this year we are confident of notching a revenue of Rs one crore. Interestingly, we have no other costs besides Web site development.

How do you ensure that collectors/buyers get what they see on your Web site?

As you know art is a visual medium and hence the Internet as a medium is best suited to buy and sell art. They do quite a big image of paintings that they intend to buy. But sometimes collectors do call us and tell us that they want to see a bigger image. So we ask respective artists to send the collectors a bigger image.

Early childhood, college days, family background

My father was a senior officer in the railways (general manager, Northern Railway) and my mother was working with a political weekly called Mainstream. I went to Hindu College New Delhi for my BA in Economics. Following that, I completed the International Marketing programme (a one year diploma then and now an MA programme) from the Delhi School of Economics. I worked with CII for two years lobbying for industry groups. Then I shifted to the US. When I had kids I joined the masters programme in childhood education at Columbia University, NYC. This was a subject dear to my heart because I had small kids of my own.

The India-US-India journey

I got married (her husband is a computer scientist) and went to the US. Love for the country brought us back home. My husband was there for 16 years and I was there for six and half years. I came to India to for both my kids' delivery as we wanted them to be pure-bred Indian citizens.

My husband is a computer scientist and we came to India after he got a job as Mukesh Ambani's technology advisor. Now he is working with Qualcom as country head, technology.

I have two kids studying in Dhirubhai Ambani International School. Aged 8 and 9 they are studying in Class III and Class IV.

How do you manage both business and family?

(Laughs) That's very easy. It is such an easy business model -- and that's why I opted for it.

After my husband leaves in the morning I start working on the Internet for about two hours looking at new applications, following up with artists if the paintings have reached their buyers and with buyers to get their payments in.

When my kids come back from school I sit with them for about two hours from about 4 to 6 pm preparing them for their tests. After they go out to play I am again on the Internet looking after indianartcollectors.com.

Basically I believe that my children should be able to study on their own. I am trying to build a strong foundation so that they will one day be able to study on their own, have a passion for learning and reading. I do a lot of math exercises with them and lots of creative writing.

A Millionaire who lives in a hut!

E Sarathbabu, Founder, Foodking

E Sarathbabu with his mother in-front of his house. He still lives in the same hut.

His story is an inspiration for millions. A self-made entrepreneur, his mission is to help the poor through job creation. E Sarathbabu hit the headlines after he rejected several high profile job offers from various MNCs after he passed out of IIM, Ahmedabad two years ago. He instead started a catering business of his own, inspired by his mother who once sold idlis on the pavements of Chennai, worked as an ayah in an Anganvadi to educate him and his siblings. As a child, he also sold idlis in the slum where he lived. "We talk about India shining and India growing, but we should ensure that people do not die of hunger. We can be a developed country but we should not leave the poor people behind. I am worried for them because I know what hunger is and I still remember the days I was hungry," says Sarathbabu.

In August 2006, Sarathbabu's entrepreneurial dream came true with Foodking. He had no personal ambition but wanted to buy a house and a car for his mother. He has bought a car but is yet to buy a house for his mother. The "foodking" still lives in the same hut in Madipakkam in Chennai. Today, Foodking has six units and 200 employees, and the turnover of the company is Rs.32 lakh a month. But it has not been a bed of roses for Sarathbabu. After struggling and making losses in the first year, he managed a turnaround in 2007.

How has his experience as a 'Foodking' been in the last two years?
As I am a first generation entrepreneur, the first year was very challenging. I had a loan of Rs 20 lakh by the end of first year. I had no experience in handling people in business, and it was difficult to identify the right people. Though I made losses in the first year, not even once did I regret my decision of not accepting the offers from MNCs and starting an enterprise of my own. I looked at my losses as a learning experience. I was confident that I would be successful one day.

Sleeping on the railway platform!
My first unit was at IIM, Ahmedabad. When we started our second unit in October 2006, I thought now I would start making money. But I made losses of around Rs 2000 a day. A first generation entrepreneur cannot afford such a loss. But I worked really hard, working till 3 a.m. in the morning. What reduced my losses were the birthday party offers. I started the third unit again in Ahmedabad but it also made losses. All my units were cafeteria and I understood then that the small cafeterias do not work; I needed huge volumes to work. My friends who were extremely supportive in the first year when things were difficult for me. I had taken loans from my IIM-A friends. They were earning very well.

In December 2006, an IIM Ahmedabad alumni event took place in Mumbai and I decided to go there mainly to get a contract. I was hopeful of getting it. I also knew that if I got the huge contract, I would come out of all the losses I had been incurring. I booked my train ticket from Ahmedabad to Mumbai for Rs 300 and I had Rs 200 in my hand. As the meet went on till late at night, I could reach the station only at midnight. I missed the train. I decided to sit on the platform till the morning and travel by the next train in the morning. I didn't have the money to check into a hotel. I didn't want to disturb any of my friends so late at night.

It was an unforgettable night as I was even shoved off by policemen from the platform. It was quite insulting and embarrassing. After two hours, people started moving in, I also went in. A man who sat next to me on the platform gave me a newspaper so that I could sleep. I spread the newspaper and slept on the platform! I sleep well. I got my ticket refund in the morning and went back to Ahmedabad. And, luck did not favour me, I didn't get the contract.

In March 2007, I got an offer to start a unit at BITS, Pilani (Sarathbabu was an alumnus of BITS, Pilani). That was the first medium break for me. For the first time, I started making profits there though the other units continued to make losses. The reason for our success at BITS, Pilani was the volume; there were more students and there was a need for a unit like ours while in Ahmedabad, they have at least a hundred options.

If I made Rs 5000 a day at Ahmadabad in two shifts, here I made Rs 15,000 a day. BITS, Pilani unit gave me the confidence to move on. Unless you make money, you can't be confident in business.

What changed my fortune?
When all my friends who worked for various MNCs made good money every month and I made losses with my venture. But I kept telling myself, I am moving in the right direction to reach my ambition and vision. My dream was to provide employment and I was doing just that. I continued to work till 3 a.m. but I never felt tired.

Through BITS, Pilani, I got the BITS, Goa contract and that was the biggest break for me. It was not a cafeteria like the earlier ones but the dining hall that we got. We had to feed 1300 students. We started our operations in July 2007. At Rs 50, for 1300 students, our sales was Rs 65,000 per day. We soon started making a profit of Rs 10 to 15,000 a day. Around 60 to 70 people work there. I gave the charge of the Ahmedabad operations to one of my managers and moved to Goa.

I was still in debt by Rs 15-20 lakhs but I knew BITS, Goa would keep my dream alive. Within six months of starting our operations in Goa, I repaid all my debt.

I was called to give a speech at the SRM Deemed University. After the speech, I asked the Chancellor, can you give me an opportunity to serve in your campus? He said, "If not you, to whom will I give such an opportunity?" It's a food court but a big one, similar to the one at BITS, Pilani. There are around 17,000 students there.

Now, I have the BITS, Hyderabad contract, ready to start in July 2008. Other than the six units, I have approached a few more universities and corporate houses too. In the first year, I had made a loss of Rs 25 lakh. Right now, we have a turnover of Rs 32 lakh every month, which works out to 3.5 crore (Rs 35 million) a year.

I have hired about 200 people. Indirectly, we touch the lives of around 1000 people. By this year end, we will have 500 people working for us. Only 10% of my workers are educated, the rest are uneducated. I want to make a change in their lives. If they have any problem, I will take care of it. We support the marriages and education of poor families. We are paying more to the employees as the company is doing well. Now that the foundation is strong, I plan to have ten units and a turnover of Rs 20 crore (Rs 200 million) turnover by next year.

His advice: Never give up!
In the last two years, I have given more than 120 lectures in various institutions in India. When I got the first opportunity to speak, I thought God had given me an opportunity to encourage or inspire entrepreneurs. When youngsters tell me they are inspired, I feel good.

When you just dish out the theory, nobody believes you. But when you do it, they believe you. What I tell them is based on my own experiences.

When I thought of starting a company, I felt India needed 100 people like Narayana Murthy and Ambani. If 100 such people support 2 lakh people each, imagine how many Indians get supported.

Entrepreneurship is needed to uplift the poor. It is not easy to be an entrepreneur, especially a first generation entrepreneur.

There will be lots of challenges in the beginning but you should learn to look for the light at the end of the tunnel.
Never give up even if there are hurdles. There are many who give up within a week.
You need determination and a tough mind to cross the initial hurdles.
If you are starting without much money, you should not have any overhead expenses.
As I am in the food business, I know how much the price of every food item has gone up. Many people will languish in poverty because of inflation. Had my mother been working as an Anganvadi ayah today and earning Rs 1500, she would not have been able to feed us and educate us.

On the one side, we talk about India shining and India growing, but we should ensure that people do not die of hunger. We can be a developed country but we should not leave the poor people behind. I am worried for them because I know what hunger is and I still remember the days I was hungry. That is why I feel it is our responsibility to take care of them.

I wanted to buy a car and a house for my mother. I bought a car first, not a house. I still live in the same house, the same hut. I can build a house right now but I want my business to grow a little more. I feel good in the hut; that's where I get my energy, that's where I lived 25 years of my life. I want to remind myself that the money and fame should not take me away from what I want to achieve.

But within six months, I will build a good house for my mother. Her only advice to me is, don't waste money.
Till I was in the 10th, there was no electricity in my house. I had to sit near the kerosene lamp and concentrate hard. That's how I learnt to concentrate.

The two year journey has been very enriching. It seems like a 20-year journey for me. I was living every moment of the two years, from sleeping on the Mumbai railway station platform to this level.