StartupGully

Lessons to learn BEFORE bootstrapping

Bootstrapping a business isn’t child’s play. You need to have the courage to lose it all, while also thinking that someday you’ll have it all. The journey of bootstrapping your business can be physically, mentally, financially and emotionally tiring. But this becomes a part and parcel of your life, especially in the initial stages when you’re trying to establish yourself. Here are 5 realities you should know before you take on this courageous quest:

Live your mission
When you bootstrap your business, all risks and rewards and decisions are your own. But when you do all of it keeping in mind the core belief of your business, it becomes easier to live with the outcome. Making decisions that do not align with your mission, but with your sudden urges to make quick money, can cause inadvertent errors.

Know your market
This is an unsaid rule. You might face difficulties starting a business in an industry you know, but it could turn out to be a nightmare if it’s an industry you don’t know. Bootstrapping leaders should be able to understand their potential customers, investors, and competitors. This might also help as you could have a pre-established network in the same field.

Outsider’s view
As bootstrapping can be a rather lonely journey in the initial days, exactly when you need the support of many, it’s important for you to have a few connections of current and former successful entrepreneurs to give some fresh perspective to you and your business. This is because you would need some fresh blood while making decisions.

Have the guts to gut it out
Understand that ‘ successful companies make money right away ’ is mostly a myth. It can take a few years or a decade for companies to turn a profit, take any successful venture for example. That’s exactly what you need to prepare yourself for. You need to see if the idea you’re investing in will work after five years or more.

Your environment
Bootstrapping can take a toll on your relationships and quality of life, but it can also be extremely rewarding. You need to surround yourself with people who bring out the best in you and let you know when you’re in the wrong. Your team members, colleagues, and family will all play extremely important roles throughout your bootstrapping journey. Believe in them, and believe in yourself.

Gautam Adani: India’s first to make it to the World’s top 3 wealthiest people

Adani’s early life
Born on 24 June 1962, Adani always exhibited entrepreneurial traits during his childhood. He did not come from a family whose wealth he inherited, rather his parents were involved in humble occupations. Shantilal Adani, his father, was a textile manufacturers. Adani, his parents, and his 7 siblings moved bases to secure better opportunities for themselves.

Adani’s ingress into the business world
He dropped out in his second year of college. Still a teenager, he moved to Mumbai and started working as a diamond sorter for Mahendra Brothers. After doing this for 2-3 years, and trying his hand at his own diamond brokerage firm, he moved to Ahmedabad to help his brother with his newly established plastic business.

Adani’s global quest
After helping his brother by importing PVC for his plastic business, in 1988, he founded Adani Exports Limited, which later came to be known as Adani Enterprises Ltd.. He started expanding his business in 1991, got a managerial contract from the Government of Gujarat in 1993, and Adani Power Ltd. was founded in 1996.

Adani’s diversification
As you mustve noticed, Gautam Adani always focused on diversifying his business. Exporting, agro, power, oil and gas exploration, logistics and port development, he did not leave any stone unturned in the industrial sector. He was always quick to identify business opportunities with India’s constantly changing economic philosophies.

Adani’s world
He’s the main character. It’s his world, we’re simply living in it. Adani’s fortune lies somewhere between $147-$152 billion, putting him SECOND on Bloomberg’s list of World’s Wealthiest People, surpassing Amazon’s CEO Jeff Bezos. He’s the first Indian to ever make it to the world’s top 3 wealthiest people!

Laxman Narasimhan: Another Indian in the pack of global leaders

A demi childhood with a pump of graduating years
Laxman Narasimhan, born on April 15, 1967, in the city of Pune was a bright student who had a rather rocky childhood where, at an early age, he had to witness his siblings passing away. After obtaining a Bachelor’s in Mechanical Engineering from the University of Pune, he pursued MA in German and International Studies from the University of Pennsylvania. Scholarships and multiple jobs helped him get to college outside India. He also holds an MBA in Finance from the reputed Wharton School and the University of Pennsylvania.

A Tall peak into his corporate life
Started his career in 1993 at McKinsey where he flourished a lot and worked for 19 years till 2012. He later joined PepsiCo, where again he flourished- served as the CFO of PepsiCo Americas Foods, and CEO of PepsiCo Latin America. His most recent stint was at Reckitt as the CEO (joined September 2019)- the company that produces Lizol, Dettol, Enfamil baby formula and Mucinex cold syrup.

A Venti Starbucks
Starbucks recently announced Laxman as the upcoming CEO; he would be joining the coffee giant from October 1st. Currently working from London, he will be moving bases to Seattle to work closely with the interim CEO Howard Schultz. They will be working on the company’s “Reinvention” and “Reimagination” plans. Narasimhan will take charge as the CEO from April 2023.

A Grande review
Bringing more than 30 years of experience to the table, Laxman Narasimhan has proven to be an asset to all the companies he’s worked with. With his expertise in operations, he has proven himself in developing purpose-led brands. Howard Schultz also stated that Laxman Narasimhan shares his passion for investing in humanity and in his commitment to Starbucks’s stakeholders.

Lessons to learn BEFORE bootstrapping

Bootstrapping a business isn’t child’s play. You need to have the courage to lose it all, while also thinking that someday you’ll have it all. The journey of bootstrapping your business can be physically, mentally, financially and emotionally tiring. But this becomes a part and parcel of your life, especially in the initial stages when you’re trying to establish yourself. Here are 5 realities you should know before you take on this courageous quest:

Live your mission
When you bootstrap your business, all risks and rewards and decisions are your own. But when you do all of it keeping in mind the core belief of your business, it becomes easier to live with the outcome. Making decisions that do not align with your mission, but with your sudden urges to make quick money, can cause inadvertent errors.

Know your market
This is an unsaid rule. You might face difficulties starting a business in an industry you know, but it could turn out to be a nightmare if it’s an industry you don’t know. Bootstrapping leaders should be able to understand their potential customers, investors, and competitors. This might also help as you could have a pre-established network in the same field.

Outsider’s view
As bootstrapping can be a rather lonely journey in the initial days, exactly when you need the support of many, it’s important for you to have a few connections of current and former successful entrepreneurs to give some fresh perspective to you and your business. This is because you would need some fresh blood while making decisions.

Have the guts to gut it out
Understand that ‘ successful companies make money right away ’ is mostly a myth. It can take a few years or a decade for companies to turn a profit, take any successful venture for example. That’s exactly what you need to prepare yourself for. You need to see if the idea you’re investing in will work after five years or more.

Your environment
Bootstrapping can take a toll on your relationships and quality of life, but it can also be extremely rewarding. You need to surround yourself with people who bring out the best in you and let you know when you’re in the wrong. Your team members, colleagues, and family will all play extremely important roles throughout your bootstrapping journey. Believe in them, and believe in yourself.

Cyrus Mistry: The business legend who left us too soon

The first ever Indian citizen to lead the Tata Group, the industrialist who had years of experience in myriad fields, the man who’s untimely death was indeed a great loss to not only the nation, but the world of commerce and industry- Cyrus Mistry. Let’s have a look at his journey:

Early beginnings
Born in 1968 to the Shapoorji Pallonji Group (Pallonji Mistry and Patsy Perin Dubash), Cyrus was a high profile Indian-born Irish businessperson. After completing his schooling from Mumbai, he did his bachelors in civil engineering from Imperial College London, and masters in management from London Business School (only two of the most competitive schools in the world).

The business realm
Before getting his Executive Masters in Management in 1996, he had already joined his family business in 1991 and went on to became the director of Shapoorji Pallonji & Co. Ltd. After being appointed the Managing Director, the turnover for SP & Co. Ltd.’s construction business grew from $20 million to $1.5 billion.

The Tata journey
In 1930s, Cyrus’s grandfather had acquired a stake in Tata Sons, a prominent one. Cyrus Mistry started his journey in Tata in 2006 after the retirement of his father from the organisation. He was called a ‘studious backroom executive with a sharp mind’ and ‘India’s and Britain’s most important industrialist’ by The Economist in 2013.

The Chairperson of Tata Sons
After being appointed the Deputy Chairman of Tata Group in 2011, he succeeded Ratan Tata as the Chairman of Tata Sons in 2012. Ratan Tata admired Mistry’s humility and astute observations, along with his quality and calibre. However, due to certain unfavourable circumstances, Mistry was ousted from his position following a boardroom coup in 2016.

Early farewell
On September 4 2022, Cyrus Mistry, only 54, was killed in a car accident near Mumbai. The entire nation mourned this unfortunate event. It was a historic tragedy in the world of business.
May his soul rest in peace.

A Podcast: a must

In this era of everything going online and everyone exploiting every single platform available on the Internet, you can not ignore podcasts. With more than 2 million active podcast listeners worldwide, you would be missing out on a large audience hungry for your vantage point. Here’s 5 more reasons why every entrepreneur NEEDS to have their own podcast:

Can we see you?
Having a strong online presence is a must, this includes being active via blogs, videos, social media, websites, and undoubtedly, podcasts. The more content you create online, the more visibility will you get online. You should try googling yourself. Do the first few links reflect your brand personality perfectly? You can better it by being a podcast host or guest.

A new branch to your money tree
Podcasting sure isn’t the fastest way to make lots of money, but it’s a rather slow and steady endeavour. If you’re creative enough, you might just catch the eye of sponsors looking for hosts to promote their brand. Monetisation can be slightly more fruitful if you offer a niched podcast.

Relationship
When you’re talking, having a conversation, and people are listening to you, it creates intimacy. This is because the listeners are able to create a bond with the host because it’s almost as if the host is speaking personally to them. Podcasting helps the customer connect to your brand straight from the heart.

Your brand story
It’s easier with podcasting- shaping your brand personality, and conveying your powerful brand story. It also allows you to know, through analytics, your distinct vantage point as in who is consuming your content. Branding, coupled with the consistency of your voice and powerful messages solidifies your brand and makes it distinct from everyone.

You and I
This is where it gets interesting. You can have conversations with icons of your field, and this creates a ripple effect on your reputation. When everything is going online, why not strategic partnerships? Creating a relationship with your guest and their audience can lead to future collaborations as well!

Bra(i)nd psychology: how it works?
All of us have our favourite brands, regardless of the industry they belong to. Sometimes, we like brands because of how impressive their ecosystem is, how they’re ubiquitous in their own form. For instance Apple, it has its own applications in its operating system, it has its own accessories that its devices are compatible with and it also has its own microfibre cloth? The details. Splendid. Here’s the 4Cs you need to know:

Colours
When you see green, you think safety and medicine. When you see red and yellow, food or something exciting, happening might come to your mind. SImilarly when you think black, its usually elite and masculine. This is how colors play a major role in giving your brand an identity. The color psychology isn’t very straightforward and concrete. But little experimentation with your logos and materials can take you and your brand way ahead of the others.

Consistency
We’ve all heard about how consistency is key, and not very surprisingly, it very much is. If you’re not consistent with your message, people might think that you’re all over the place. Therefore, you must have a set of consistent brand guidelines that everyone must follow. This way there would be a repetitive uniform representation of your brand.

Community
When you build a community with people who you cater to, it’s becomes difficult for them to switch over, and for your competitors to win them over. There’s several ways you can do this- initially having a brand identity that your target audience can relate and connect with. Sending personalised messages, reminders, offers, and providing a pleasant post-purchase experience are some examples.

Creative
To have a compelling brand, one better than your competitors, you need to think out of the box. Copying competition under pressure can blur your identity. Doing the unconventional, deviating from the norm, and calculating your risks well can help you distinguish yourself in an extravagant manner.

Pitch Perfect: Entrepreneur’s edition

Your business idea could be flawless and completely unique. You know it, but your potential investors don’t. And they will only know what you will tell them. They’ll understand and see the business from your perspective, so be a good and sharp lens. Here are a few tips for entrepreneurs to have the ‘pitch-perfect’ (no singing):

Okay Entri, solve this problem
Every business caters to the needs and wants of their target asuience, solving a problem and filling a gap in the process. It’s imperative for the founder to clearly articulate the problem and state the target audience that is impacted by the said problem. It could be a deep-rooted problem, or a ubiquitous one that no one even addresses as a problem. Spot it, and nail it!

So Entri, what’s your journey?
Investors are ultimately investing in the person and the person’s vision. The personal journey of the founder must be conveyed with passion and conviction to the investors so that it ‘touches their hearts’. What inspired the founder to incept their business is not only a story, but a factor as crucial as the idea behind the model.

Entri, do you know the numbers of π?
You might not know that π (pi) is 3.1415926535…, but you must know the numbers of your business. This is a non-negotiable. Having a clear memory and understanding of the numbersand what they signify is indispensable. Having a fumble in this segment can show lack of attention to detail and an unclear understanding of the finances. And you don't want that!

Is Entri’s product ‘all talk no show’?
Investors truly enjoy it when they get to use or feel or eat the product. They are able to better understand and analyse the business. The simplicity, the uniqueness, the interface- all of this matters. It’s the confidence the founder has in their product that they let the investors try and test it that gives them an exquisite connect with and confidence for the business.

They listen to Entri, but does Entri listen to them?
Investors not only invest in the business, but also the person; and they want the person to be humble, co-operative, hungry for knowledge and open to feedback. It so often happens that albeit the idea appeals to the investors, they pass on the deal because of the defensive attitude of the founder regarding the investors’ suggestions.

Will they remember Entri?
The drama, the skit, the props, the uniforms, the music or dance and the creative thinking would be what would add the perfect to your pitch. The pitch has to be precise and concise, but the energy of the same should be contagious. That’s how you create a splash and leave a lasting impression. Get it right in the first go because ‘you never get a second chance to make a first impression’.

India ranked amongst the Top 5 places with the ‘highest ease of starting new businesses’

Although Dubai has been in the talk being named the best place for new entrepreneurs, India itself has done a phenomenal job and has been ranked on top amongst several other low-income economies in the context of various different entrepreneurial frameworks.

What does the survey say
The Global Entrepreneurship Monitor (GEM), a survey conducted across 47 varied countries unveiled that 82% of the Indians find it easy to start a business here. 86% of the respondents also believe they possess the appropriate skills and knowledge and confidence to start their own business.

Was that all?
India also ranked top out of all low-income economies that were a part of this survey on several entrepreneurial framework conditions like ‘ease of access to finance’, ‘entrepreneurial finance’, ‘government policy: support and relevance’ and ‘government support: taxes and bureaucracy’. The government entrepreneurial initiatives also bagged the second position.

However..
The survey result also indicated that 80% of Indian entrepreneurs had weaker growth expectations than they did last year. 54% also cited fear of failure as their reason to not plan for starting up their own venture in the coming three years. Therefore, this highlights a need for cultural change to reduce the stigma of failure associated with starting a new business.

How was the pandemic for us?
Surprisingly, survey showed that 77% of entrepreneurs have been pursuing newer opportunities due to the pandemic! 66% also predicted a long-term positive impact of COVID-19. This reflects how the entrepreneurial ecosystem of our nation has improved, special thanks to government initiatives like- Make in India, and Startup India.

Entrepreneurship ‘round the clock
Change is the only constant. Successful are those who are able to foresee the future or create their own. Entrepreneurs are the same. Even though what entrepreneurs would have thought 50 years ago might vary greatly from what entrepreneurs think today, something that hasn’t changed is that entrepreneurship is on the rise and they were and still are risk takers. Let’s take a stroll down the lane of the evolution of entrepreneurs:

Inception
Defined and introduced in 1723 by French economist Richard Cantillon, later improvised by Jean Baptiste Say in 1803. An entrepreneur was defined as an economic agent who produces using factors of production and sells to gain revenue and profit. Although quite shabby, this was exactly what entrepreneurship was restricted to back then.

Trade and Agriculture
The very first form of business was trade- barter exchange, i.e. exchange of goods between individuals for the overall benefit and satisfaction of society. Then people domesticating plants and animals and the practice of agriculture was born. People would cultivate different crops and trade them amongst themselves. Similar professionals like masons, artisans, carpenters, and potterers emerged as well.

Trade routes and Money
People started exploring places and started trading between countries and continents. They realised that profit could be earned by trading between cultures and cities. Eventually, money was invented. One of the greatest inventions of all time. People transitioned from the barter system to paper money- currency. Acted as a medium of exchange and a store of value. It was great!

Industrial revolution and marketplaces
There was a drastic shift from small-scale to large-scale production. Processes were standardised, and machines were invented. Large marketplaces emerged to serve the increasing large populations. Theories and principles of how employees should work and be incentivised were also written down.

Entrepreneurs now
Technology has changed everything. Either someone is a tech entrepreneur, or they’re using technology in their business. Entrepreneurship is about innovation and contribution to society today. People of all races, ethnicities and genders are setting feet in the entrepreneurial field today. Qatar has an equal or higher rate of female entrepreneurship than males’.

Education and ethics
It’s a course, a subject, a degree now. People are flying continents to study business at renowned institutions. Entrepreneurs today, the Gen-Zs especially, are more concerned than ever before regarding business ethics and societal good from their businesses. Spread across the globe, working from wherever and whenever they want, entrepreneurs are evolving at the speed of light!

Top mistakes beginner entrepreneurs make

Spending in extremes: too much or not at all
A healthy profit margin is extremely important. Keeping it too low, and then increasing the prices later would result in a shrunken customer base. Keeping it too high and not having a decent customer base to begin with would be equally bad. Determine your costs, and keep a decent margin. You might as well start with higher prices, and eventually reduce them, that also world. But do not compromise on your margin.

Product first, customer last
This chronology wouldn’t work if the focus on customers and their needs is compromised. The product will make you money, but its the customers who will ultimately buy the product. You might have the most spectacular product, but if no one’s buying, what’s the point? Have a loyal and satisfied customer base, and sales and money will follow. This is the mantra to a long-term successful sustainable business.

Margins, for the sake of it
A healthy profit margin is extremely important. Keeping it too low, then increasing the prices later would result in a shrunken customer base. Keeping it too high and not having a decent customer base to begin with would be equally bad. Determine your costs, and keep a decent margin. You might as well start with higher prices, and eventually reduce them, that also world. But do not compromise on your margin.

One person army
As inspiring as it might sound, it’s unhealthy and inefficient as well. You are one person, you can not have all the time and skills to do everything. You might think that it’s your idea, your product, your business and you know it the best, and you’re right! But overworking yourself isn’t sustainable. Hire people, they might surprise you and you might also get to learn from them.

Not understanding some things are priceless
Cheap equipments and people are cheap for a reason. Quality must be paramount. Your inexpensive equipment and machinery might break down and eventually result in higher maintenance that a new one would’ve costed altogether. Your cheap employees might be incompetent, lazy, unskilled, or unreliable. They’re going to be the backbone of your business, hire them accordingly.

Competition
If you let your product get to your head and tell you that it’s so unique that it doesn’t have any competitor- neither direct not indirect, you need to rethink. Everyone has competitors. No matter how niche your product might be, it’s extremely rare, mostly impossible for there to not be a competitor. Therefore, plan and act accordingly.

Dubai’s golden visa and opportunities for Indian entrepreneurs, and their reasons to shift bases
Many investors are driven away from investing in Indian companies because of the lengthy paperwork and red tapeism. They’d rather go for something less time consuming, even if that’s slightly expensive, and Dubai is a hub of international businesses. Because of the ease of conducting business and investing in them, along with the added advantages of the Golden Visa, Indians are emigrating to Dubai.ap her golden eggs.
The United Arab Emirates is all set to become the largest importer of ‘entrepreneurial millionaires’ this year, beating canada, the UK, Australia, New Zealand and Singapore to it. But the most noteworthy point is that 8,000 super-wealthy Indians are predicted to move out of the country and shift to Dubai or Singapore. But why? There’s several factors:

The Golden Visa
Great name, because it quite literally is key to gold for the visa holders. Dubai is offering 100,000 golden visas to entrepreneurs and tech-investors which would allow them to live in the country for upto 10 years. India does not have a dual citizenship policy, and entrepreneurs want to be more flexible with the place of their operations, and that is why so many are claiming this golden hen to reap her golden eggs.

Tourist attraction: zero personal tax
This is the biggest advantage of moving base to Dubai. Moreover, taxes in general are also lower for starting and running a business here. Dubai has zero personal income tax. Dubai has no capital gains tax. So, the taxes one might incur while starting a venture in India are substantially higher than they would be in Dubai. In India you’d pay 35-40% tax, but in Dubai you pay none.

The brilliant tax structure
Dubai also has clear cut laws regarding crypto and NFTs. On the other hand, in India, although the laws and rules are quite blurry, there is a 30% tax on virtual digital assets. Meaning, any income earned from cryptocurrencies would be charged a whopping 30% tax with an additional 1% on their transfer. Dubai doesn’t harass its citizens in such a way.

Slew of things they’re slaying at
Dubai offers a higher standard of living, with better housing, educational and health facilitiies for the entrepreneurs and their families. India has rather stringent tax rules, very high taxes for high-net-worth individuals (HNWIs) and doesn’t allow lots of visa-free travel, all becoming drivers towards Indians seeking for alternatives. Even during the pandemic, people had the freedom of moving in and out of the UAE, thanks to Golden Visa.

A Global room
Many investors are driven away from investing in Indian companies because of the lengthy paperwork and red tapeism. They’d rather go for something less time-consuming, even if that’s slightly expensive, and Dubai is a hub of international businesses. Because of the ease of conducting business and investing in them, along with the added advantages of the Golden Visa, Indians are emigrating to Dubai.

Who makes a better entrepreneur- a dropout vs a b-school grad

To start off, the answer isn’t black and white. It’s a long pending conversation and leaves us with several varying opinions and stories, and is mostly a conversation with an equivocal conclusion. The Gen-Zs today understand that a professional degree isn’t the only route to becoming an entrepreneur, so let’s understand both the sides- dropping out vs graduating from a b-school.

Teens who want to become entrepreneurs
Most of the Gen-Zs today choose the entrepreneurial field over the conventional 9 to 5s after their graduation. One might incline towards dropping out of college to take on the quest of becoming a successful billionaire entrepreneur after reading about the infamous stories of Mark Zuckerberg and Bill Gates. But one must also not forget that it Hardvard was the place of inception of Facebook, and how Bill Gates says that not everyone might be as lucky as him.

Dropouts Vs. Grads
Dropouts tend to be future-oriented, curious and quick with their actions. They have a sense of calculating their risks and just shooting the ball in the basket. Even though they believe in ‘tril and error’, they are quick to figure things out. The graduates believe in gaining knowledge and learning first, calculating their risks better, and then putting their skills into action.

The foundation remains the same- go big. Both grads and dropouts can learn from anywhere. The only one who would make a worse entrepreneur is the one who abandons learning.

Classroom Vs. Digital Wisdom
A formal classroom setting can help enhance one’s networks, research, communication and time management skills. But it’s usually a rigid environment restricted to the boundaries of the laid curriculum. In a virtual setting, you can learn anything, any time and at any pace. Digital learning teaches you how to multitask. You might gain more from an online course in a few months than you would from a formal degree of several years.

The new age
The online education market is growing exponentially leading to several teenagers acquiring skills they otherwise would’ve been unable to at a very young age. That’s how so many of them are creating multi-million-dollar businesses. It doesn’t matter if you’re a dropout or a graduate, without acquiring certain skills, you can’t make it big.

What if you fail?
If you dropout and don’t make a successful entrepreneur, it’s fine. It’s not the end of the world. You still have time to figure out what works for you, where you went wrong and start again. If you're a graduate, who landed a boring job, you can still switch gears and start your own business. All that’s important is educating yourself right, regardless of it’s from an institution or the real world.