What it takes to become a successful entrepreneur!
There are a few essentials to be kept in mind before embarking on an entrepreneurial journey
November 30, 2012 / 16:03 IST
By Abhay Pandey
I am frequently asked this question in the forums I attend: What does it take to be an entrepreneur? It obviously takes a lot to decide to start a company spurning the obvious advantages of working in a comfortable professional setup. If I look through the Sequoia Capital portfolio in India, I see a very diverse set of entrepreneurs. From the 25-year-old fresh-out-of-college graduate who has decided to start his own company to the 55-year-old experienced professional who has retired as the chairman of a public limited company and then decided to start a company.This diverse set brings many qualities to the table-passion, ambition, knowledge of their domain and a desire to ‘make a dent in the universe’. Besides these, there is one common quality that stands out-guts.The thesaurus defines ‘guts’ as: “The alimentary canal or a portion thereof, especially the intestine or stomach.” More appropriately for this discussion, courage, fortitude, nerve and audacity.”One needs all of these qualities in ample measure to shrug off a cushy job in an MNC that most in one’s peer group has opted for, and venture into the unknown. But that is usually only the beginning of the risks that one is embarking on in the entrepreneurial journey.Let me share a few examples of entrepreneurs we have partnered and who have displayed courage, fortitude, nerve and audacity to continuously challenge conventional wisdom (listed below) in their respective categories as they followed their passion and went about building world-class companies:‘Free customer service will never create value’
Business gurus rubbished the idea of free-servicing customers by calling it ‘charity’; how can you build a business by giving away anything for free?VSS Mani, Founder and CEO, Justdial, has created an enviable business model catapulting the company to market leader status by doing just that.He has proved that it is not only possible to monetize a business where the primary search service is offered free to the end consumer, but also to run a very profitable business by doing so.‘You cannot change an existing habit’
V G Siddhartha, Founder and Director, Café Coffee Day, heard a constant refrain when he first spoke about selling coffee at his outlets for `50. “North Indians do not drink coffee and the South Indians won’t pay for it.”Undeterred, Siddhartha dragged people out of their homes and into his smart, hip cafes and proved that they would pay for the experience and the coffee, too. Today I wonder, if there is a single neighborhood in the country that does not sport the Café Coffee Day signage and this is testimony to an entrepreneur’s belief in his idea that flew in the face of existing norms.‘Healthcare delivery cannot be standardized’
Dr. AM Arun, Chairman and Managing Director, Vasan Eye Care met us when the day-center was a 12-clinic chain and surprised us with his dream of wanting to build a 100-plus chain of clinics all around the country. We know that healthcare is a high doctor-dependent category and hence it is resistant to standardization. But it was difficult not to believe Arun’s vision and ambition.Today, Vasan Eye Care is an institution of 100 plus centers ensuring standard, consistent and high quality service across all centres. And yes, it is the largest chain of its kind in the world.‘Old Institutions cannot be transformed’
Shravan Talwar, CEO, and Vibhu Talwar, COO, Moolchand Healthcare took over the reins when it had all the problems of an old, struggling institution—anemic growth, union issues and no profitability.Few experts gave them a chance. They believed in their own perseverance and transformed the organization to an efficient, growing and humming one.They could have chosen to enjoy this early success. But this dynamic duo has chosen to build the Moolchand brand in exciting new directions including acquisitions, to move into other parts of the country and building a very large chain of IVF centers.‘Managing young companies gets tougher with age’
When Prizm Payments was started in 2008, Managing Director, Loney Anthony, and team didn’t have many believers, after having very successful corporate careers. Business schools teach the value of persistence and how to stay undeviated from one’s business plans and goals. Sometimes market factors force one to adapt and adjust.Prizm is an example of a business pivot that has revolved into a great success story. The experienced team managed to navigate the company through numerous regulatory hurdles.Today Prizm has created its mark in the payment industry and fundamentally changed the way banks view ATM operations. These examples outline the necessary qualities needed to satisfy the thesaurus’ definition of guts. However, the story of guts to glory has another necessary ingredient-loneliness.It is rare to have a roomful of colleagues or partners who have agreed with the decisions taken and the paths thus charted. But these successful entrepreneurs have relied on their vision, domain knowledge and experience to take the lonely and unused path for their journeys.ABHAY PANDEY is a Managing Director with Sequoia Capital© Entrepreneur India November 2012
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