November 13, 2011

"Work-Life Balance" - Article by Sanjay Anandaram


“My wife walked out of the house last week. I’ve known her for 7 years and we’ve been married for 5years and now I feel our relationship is purely transactional. I’m consumed by my startup and think about it every waking minute. Am obsessed with it and want to make it a roaring success. My wife works in the financial services industry and she too works long hours. We moved to Bengaluru from Mumbai so that our quality of life would be better. She travels on work and so do I. I get back home late and she’s either in bed or on her laptop. There’s no time for anything else. I don’t or can’t talk to her about the pressures I’m under. Don’t think she’ll understand. I keep responding to emails and SMS messages  when I’m home. I don’t want to lose out on any business opportunity. She wants children and I am not sure I’m ready to be a dad till my startup is done. Am depressed and lonely. But I cannot give up on my startup dream. What should I do?”

So said the 31 year old CEO of a startup. And he wasn’t the first such person saying this to me. Have rather unfortunately been at the listening and counseling end of such laments increasingly over the past couple of years. It seems that the pressures of a startup are putting enormous strains on personal relationships.

As India undergoes a huge socio-economic change, pressures on each one of us is bound to increase. Pressures brought about by changes in traditional expectations and aspirations in gender-roles. These changes are fuelled by the media, financial independence, confidence and an assertion of individuality. Nothing good or bad or right or wrong about this. These are the ways things are they need to be understood and managed in context. As more and more youngsters decide to pursue their entrepreneurial dreams, they will need to grapple with the issue of managing their work and personal lives.

A digression: in the month that my son was born and my mother passed away, I decided to quit and do a startup. The urge was uncontrollable and I took the decision without consulting my wife! I was in Silicon Valley and she was in India (we had decided to have our son in India). She was surprised and understandably upset but then was fully supportive. I travelled several times from the US to India during those initial days. Those were the days of emotional roller-coaster rides. After several months, my son and wife joined me in the US (visa issues delayed the family reunion!). The startup went through ups and downs – emotional and financial. It wasn’t easy by any stretch of imagination but I was confident that I’d get all the support from my wife. Yes I did get all the support though it wasn’t always visible or expressed!

It is important therefore to ensure the following:
-       That the partner or spouse understands how important the startup is for you and they support it wholeheartedly. Openly talk about the trade-offs and sacrifices both have to make.
-       That you understand how important it is to have that support and therefore make efforts to show it
-       Spend time with the family and don’t keep checking messages during this time. Consciously keep aside time. My time, your time and most importantly, OUR TIME. Be religious about this.
-       You don’t have to respond to every message in the next nano-second. You will be surprised that the world still spins on its axis if you don’t!
-       Be open and discuss things. Take interest in the other person’s day
-       Remember to take pleasure in the small things eg just hang out together listening to music.

It is important therefore to remain grounded in one’s beliefs and values. With a rapidly growing consumerist mindset, there’s this pressure to enjoy the next great car, house, gadget and vacation. The startup doesn’t offer one the luxury to splurge on these or even if it is one those startups that does, then the time to enjoy these isn’t available. Therefore before you jump into a startup, think about why you are doing it and be clear about your motivations. A startup is not a cool place to hang out in or a get rich quick scheme. It is a vehicle to make your passion and dreams come true. And it is very critical that those who you want to share your life with understand this. As you should their point of view and understand the difficult trade-offs before you decide to do the startup.

What do you think?

Sanjay Anandaram is a passionate advocate of entrepreneurship in India; He brings close to two decades of experience as an entrepreneur, corporate executive, venture investor, faculty member, advisor and mentor. He’s involved with Nasscom, TiE, IIM-Bangalore, and INSEAD business school in driving entrepreneurship. He can be reached at sanjay@jumpstartup.net. The views expressed here are his own. 

November 02, 2011

"Develop Selling and Communication Skills" - Article by Sanjay Anandaram

“Who is your customer? Can you create a profile of your ideal customer? How do you find them or do they find you? Which set of customers are your most profitable? With which customers do you think a long term relationship can be established? How many of your customers do you meet regularly? How do you charge your customers? Who do you compete against? Why do you think you’re better? How do you think you will knock the socks of your competitors? What other products and services are you willing to give up to focus on the most profitable ones? How do you sell? What is the cost of acquiring a customer? How long does it take from the first customer contact to receiving an order and then to receive payment? What the specific value proposition to your customers – why should they buy from you and continue to do so? What exactly do you do? What made you choose this offering? What is your personal experience with the pain suffered by customers”

The above is a sample set of the questions asked by a panel at a recent selection of the top entrepreneurial companies. While only a handful were able to respond meaningfully, convincingly and forcefully, the vast majority hadn’t either thought of these questions or weren’t able to articulate their thoughts or were very obviously uncomfortable presenting to a panel.

“Have you contacted the CEO?” I asked the entrepreneur who I’d introduced to a CEO of a company. “No, not yet” replied the entrepreneur. “Why not?” I asked quite flabbergasted. “It has been only 36 hours since you did the introduction and I thought I’d wait for some time before writing to him”. Here was a sales opportunity and the founder of a startup was worrying about waiting! In another case, the founders had to pushed very hard to reach out to potential customers and partners by way of attending industry conferences, becoming members of e-groups, connecting with other players in the eco-system, meeting members of the press and the like.

What is it that prevents or inhibits the founders of a startup from aggressively peddling their company’s value? What is it that prevents or inhibits them from forming partnerships, forging alliances and pursuing sales leads? As India becomes an increasingly market oriented open economy, the “build it and they will come” mindset has to give way to “build something the market desires and make sure that the market knows it”. The production oriented approach has to give way to a market oriented one. As a culture, we’re naturally inhibited about talking about ourselves. It isn’t right. It is a sign of immodesty to tom-tom one’s own achievements and offerings. But as the saying goes, if you don’t talk about yourself, who else will? The rest of the market will then inconveniently and inappropriately perhaps, position you because you refuse to position yourself. As Jack Welch, the legendary Chairman of GE wrote -  “Control your destiny or someone else will!”

Communication and presenting skills are crucial as well. In the limited time available, one has to learn to make a compelling and persuasive pitch. There are no short-cuts to this effort but a lot of practice, taking of feedback and learning are required. No different from any other activity. Perception is reality so it is crucial to make that pitch work. Clarity of thought, focused approach to customers and markets, understanding of what the value to customers are of no use if the person listening doesn’t hear it.

Very many years ago, a very senior well respected VC from Silicon Valley told me this:
All I want to know is:
-       Who are you?
-       What’s the problem you’re solving?
-       Why will you knock the socks of competition?
-       How will you make money?

It is not unusual to find the names of the founders and management team missing from presentations or even web-sites of Indian startups. But remember, people don’t do business with spreadsheets and presentations. They do business with people. So it is always a good idea to talk about the team and its background and why it is doing what it is doing!

So why this strange modesty in discussing oneself and one’s vision? Churchill once famously described someone as “….is a modest man with much to be modest about!” but a confident entrepreneur surely cannot be a person with much to be modest about? Remember, there’s a thin line between arrogance and confidence. Arrogance precludes learning, includes bombast and demonstrates a lack of humility. Confidence ensures humility, learning and certain relentless and adaptable focus.

So please remember, that selling and communication skills are critical for the founding team of a startup. The first set of sales have to be done by the founders. A sharp understanding of their customers, the value being created and the ability articulate this value are skills that are honed through practice. These skills cannot and should not be wished away as being distasteful. Remember company building involves a disproportionate share of these two invaluable skills.
 
Sanjay Anandaram is a passionate advocate of entrepreneurship in India; He brings close to two decades of experience as an entrepreneur, corporate executive, venture investor, faculty member, advisor and mentor. He’s involved with Nasscom, TiE, IIM-Bangalore, and INSEAD business school in driving entrepreneurship. He can be reached at sanjay@jumpstartup.net. The views expressed here are his own.