tag:blogger.com,1999:blog-21115536896641596852024-02-08T09:41:00.933-08:00Meta YageThe Meta Yage blog on Business & Entrepreneurship. I am the founder of Meta Yage IP Strategy Consulting (see www.metayage.com). This blog will feature my thoughts, values, approaches, and experiences in business and entrepreneurship.Arjun Balahttp://www.blogger.com/profile/00259489357796048607noreply@blogger.comBlogger12125tag:blogger.com,1999:blog-2111553689664159685.post-6076413040467020452009-08-12T03:54:00.000-07:002009-08-12T04:12:27.333-07:00Written Agreements<div><br /></div><div>There comes a time in business when it grows to the extent that you need systematic systems and processes to manage it, and if you don't put them in place, things get out of hand. One such important process is having clear legally binding agreements with clients, business partners, employees, vendors, stakeholders etc. </div><div><br /></div><div>In India, where people are more relationship focused, agreements are seldom written down, and business is done based on a word, or a handshake, some times in coffee shop. However if an agreement is not written down, there is ample scope for future misunderstandings and mismatch in expectations from both parties on what is expected, what is covered, and what is not. In the case of a person who is self-employed, the worst loss due to such misunderstandings is of one's own time or a small amount of resources, however if the contract is a high value one undertaken by an organization that extends over several months and involves a high investment of time and resources, the loss could lead to employees careers being affected, and the future of the organization itself could be in jeapordy. </div><div><br /></div><div>Hence although both parties must put in place measures to ensure good relations, clarify expectations and establish trust in each, they must also insist on a written contract. A good amount of time can be spent in negotiating such a contract, but once the contract is in place, it saves time on renegotiating and reduces chances of relationships being damaged due to misunderstandings or gaps in perception. </div><div><br /></div><div>Early in business, one must choose clients wisely. If you or your client are not in a position to sign a contract due to uncertainties of any kind, then it is best to not enter into any medium or long term engagement at all.</div><div><br /></div><div><br /></div>Arjun Balahttp://www.blogger.com/profile/00259489357796048607noreply@blogger.com0tag:blogger.com,1999:blog-2111553689664159685.post-42064512801881735952009-04-26T23:50:00.000-07:002009-04-27T02:49:32.032-07:007 Characteristics for EntrepreneurshipBeing an entrepreneur is tied to a state of mind and a self-image. One need not be born with the state of mind and identification with being an entrepreneur. This can be cultivated, and once you cultivate the state of mind of an entrepeneur, entrepreneurship will be a part of your identity and your self-image.<br /><br />One can easily distinguish a serious entrepreneur from someone who is temporarily passing through a stage of entrepreneurial activity based on how deeply ingrained entrepreneurship is in his/her psyche.<br /><br />Some characteristics that indicate that one is suited for entrepreneurship long term, include<br /><br />a) Ability to take charge of a business from start to finish (not just in parts) - One need not be an expert in all departments (e.g., HR, Marketing, Finance etc), but needs to possess a working knowledge of all departments and see the big picture of how they are inter-related and lead to the success of an enterprise. One should be able to have a balanced view of all departments and not a skewed one. Some people give excess credit to business development related contributions as compared to execution and HR and vice versa. A balanced view is required.<br /><br />b) Ability to generate revenues and profits on your own - This is a strong indicator of entrepreneurial capability. If you are capable of heading and taking charge of a profit making center and scaling it up without being dependent on other business units to sustain, you are a strong candidate for entrepreneurship<br /><br />c) High level of ambition and aspiration - If you are not content with a steady income. Do you need constant growth to such an extent that you reach increasing levels of discontent with stagnation?<br /><br />d) High level of disdain for being an employee - If you cannot imagine yourself in a job either now or ever. If you feel like showing contempt for any competitor who offers you a job (no matter how lucrative).<br /><br />e) Good people skills and ability to work well in a team - If you get along with clients, partners, employees, consultants etc well and are able to complement others in a team environment to achieve a common goal, you can be a successful entrepreneur.<br /><br />f) Commitment to a goal and passion to achieve it - If you have a vision and a goal and you are passionate to achieve it. The goal may be part monetary and part game changing. Pure monetary goals or pure non-monetary alone may not be sufficient. A balance is required between making money and impact on the industry and society. If you are committed to make an impact on the industry, generate employment etc and you are passionate to do what it takes to make that impact.<br /><p>g) Responsibility and proactive attitude - If you avoid blaming external circumstances, employees, clients, partners, investors etc and take responsibility for the outcomes of your actions. You believe that you can make a difference and do what it takes. If you make a mistake, you admit it, learn from it, and move on.</p><p>If you look at only one piece of the puzzle at a time and blame the inputs, resources etc that you were given for your lack of success, perhaps a job with limited responsibility would be good for you. If you have a 'chalta hai' (It's alright. That's the way things are) or 'main kya karoon' (what can i do? i am helpless) attitude, entrepreneurship is not for you.</p>Arjun Balahttp://www.blogger.com/profile/00259489357796048607noreply@blogger.com0tag:blogger.com,1999:blog-2111553689664159685.post-33354964674530690662009-04-21T23:07:00.000-07:002009-04-21T23:30:27.199-07:00Mahesh Murthy on Marketing your startupI saw this video on blip.tv (proto.in's official channel)<br /><a href="http://blip.tv/file/1995301">http://blip.tv/file/1995301</a><br /><br />These were the main points in his talk that i could gather<br />1) If you don't have a product that is insanely great, don't bother. Only if your product is great, the first customer will recommend you to 5 others. The most successful companies are those that can run for 3-4 years without advertising. If you need to advertise, you need to die. Advertising comes into play much later. Get customers to viral you. Spend as little time as possible on advertising and as much as possible on the product.<br /><br />2) Charge, Charge early, and Charge a lot. When you don't have advertising, the only thing that builds your brand is your pricing. Have super premium products and super premium pricing. You can win against the market leader by outcharging them. Price is a very powerful positioning weapon. It should appeal to the customer and make your competitor nervous. Price is not a function of cost plus some profit margin. No company has won by being cheaper. First badge on quality is the cost.<br /><br />3) The UI has to be much better and classier than the competition.<br /><br />4) A great place to get customers is at conferences. Find out where your buyers are and meet them at conferences. The best way to attend conferences without paying is to become a speaker. Carve a niche for yourself as an expert. Go to places where your customers have stalls, and sell to them. Be where your customers are and where your audience is<br /><br />5) Use funds to build a great product and not for marketing. Your competence as a marketer is inversely proportional to your marketing budget. The more the budget, the smaller your marketing brains and the crappier the product. Build a great product and people will line up to buy it.<br /><br />6) Be seen in your field as a thought leader. Present credible information to journalists. Do research, industry studies and data and present it to the audience. Position yourself as a thought leader. Carve a niche for yourself.<br /><br />7) Don't be a trend follower. Be a trend setter. If you are not the 1st, 2nd or 3rd company in the field, get out of there. A really bad idea is to start a company is based on what you read in the press. If someone has written about a trend and showed you the top 3 trend setting companies, it is already too late. Do not expect to be covered for the 1st 2 or 3 years of your life.<br /><br />8) Don't do the .....of India. The ..... of India is ..... There is almost no merit in copy paste. Where there is a need to be local and there are barriers for foreign companies, you can enter.Arjun Balahttp://www.blogger.com/profile/00259489357796048607noreply@blogger.com0tag:blogger.com,1999:blog-2111553689664159685.post-75670060236600702362009-03-30T22:54:00.000-07:002009-03-30T22:58:16.231-07:00Hiring & managing senior employeesIn an entrepreneurial organization enthusiasm, eagerness to contribute and make a difference, passion, and desire for growth count for more than paper qualifications. Even senior persons need to be directed, motivated and managed to help them achieve their goals. An entrepreneur cannot assume that an executive can share the same desire to contribute as the entrepreneur. An executive also cannot be expected to see the big picture and to balance the short term with the long term. For this, it is important to constantly share the organization's vision and mission, list short term and long term goals, and constantly track progress with respect to these goals.Arjun Balahttp://www.blogger.com/profile/00259489357796048607noreply@blogger.com0tag:blogger.com,1999:blog-2111553689664159685.post-42704958738560301132009-02-02T19:29:00.000-08:002009-02-02T19:42:31.578-08:00Managing expenses and cash flowThe economic recession has affected all business, some more than others. As a startup, managing cash flow is critical to survival. For a self-funded startup, apart from savings, there is nowhere to turn to when business slows down. If timely and systematic action is not taken to manage expenses, there may no alternative but to shut down abruptly These are some of the things a startup can do to manage cash flow and improve efficiency<br /><br />1) Track and chase receivables<br />2) Ask for advance payments where possible<br />3) Complete pending projects at the earliest<br />4) Communicate to all team members transparently about the cash flow situation and tell them to take necessary steps to minimize expenses and maximize productivity.<br />5) Set clear and bigger goals and targets with timelines for team members<br />6) Measure performance of team members<br />7) Mentor/guide team members who are lagging behind<br />8) Plan to let go of those team members who are unable to cope with the revised goals and targets<br />9) Try to negotiate rent for infrastructure<br />10) If rent is too high, look for options to share office space with other startups<br />11) If sharing is not possible, move to a smaller space<br />12) Delegate operational aspects to senior team members and focus more on business developmentArjun Balahttp://www.blogger.com/profile/00259489357796048607noreply@blogger.com0tag:blogger.com,1999:blog-2111553689664159685.post-53935172636252852932008-04-28T03:47:00.000-07:002008-04-28T03:52:57.954-07:00Office Space in BangaloreChoosing the right office space is a big decision for a startup. The factors that i would take into consideration include<br />1) Security<br />2) Apporach and surroundings<br />3) Accessibility for employees and clients<br />4) Space available<br />5) Water, Restroom facilities, lighting<br />6) Ventilation<br />7) Noise levelArjun Balahttp://www.blogger.com/profile/00259489357796048607noreply@blogger.com0tag:blogger.com,1999:blog-2111553689664159685.post-15095476838191571262008-01-01T22:06:00.000-08:002008-01-01T22:20:35.021-08:00Doubling volumesScaling up operations in a high value service industry has its own unique challenges. Quality cannot be compromised at any stage. Whether the team is executing x projects, or 2x projects, the emphasis on quality has to be the same. The first step is to execute x projects from start to end in clear, detailed and high quality manner. Then the approach that was used in the x projects needs to be broken down and distributed in the remaining x projects. This may mean that the first x projects will take up a considerable amount of time, but if the method is clearly documented and disseminated, the remaining projects will take less time to complete.<br /><br />The first half of the work plus documentation of the process should take 3/4th of the time, and the remaining half should take 1/4th.Arjun Balahttp://www.blogger.com/profile/00259489357796048607noreply@blogger.com0tag:blogger.com,1999:blog-2111553689664159685.post-34194214870418698852007-10-09T00:34:00.000-07:002007-10-09T00:44:33.141-07:00What do you look for in a job?Rate the following factors in a scale of 1 to 10<br /><br />1) Fixed pay<br />2) Performance based pay<br />3) Benefits<br />4) Flexibility (in timings, taking time off, weekends)<br />5) Challenging work<br />6) Opportunities to pick up new skills<br />7) Training<br />8) Leadership opportunities<br />9) Opportunities to travel<br />10) Boss<br />11) Colleagues<br />12) Office, infrastructure, and overall workplace environment<br /><br /><br />If there any other important factors, please contribute.<br /><br />All people working for an organization should have a blueprint of their ideal job and work environment, and should work towards creating the same.Arjun Balahttp://www.blogger.com/profile/00259489357796048607noreply@blogger.com1tag:blogger.com,1999:blog-2111553689664159685.post-89749872233804012092007-09-05T04:51:00.000-07:002007-09-05T05:00:31.762-07:00P/PC - Dynamic approach"One type of balance, as described by Dr. Stephen Covey in his book ‘‘The Seven Habits of Highly Effective People,” is the balance of production with production capability, or the ‘‘P⁄PC” balance. This P⁄PC balance is essentially the right amount of<br />(a) getting ready to do something (that is, working on your ability to produce) with<br />(b) actually doing it (that is, actually producing something).<br />The story that Covey tells to illustrate this point is Aesop’s fable of the goose that laid the golden eggs. A man had the good fortune to possess a goose that laid a golden egg every day. Lucky though the man was, he soon began to think he was not getting rich fast enough, and, imagining the bird must be made of gold inside, he decided to kill it to secure the entire store of precious metal at once. But when he cut it open he found it was just like any other goose. Thus, he neither got rich all at once, as he had hoped, nor enjoyed any longer the daily addition to his wealth."<br /><br />from <a href="http://www.dcmilitary.com/stories/090706/tester_20060907002.shtml">http://www.dcmilitary.com/stories/090706/tester_20060907002.shtml</a><br /><br /><br /><br />Most businesses focus on P while ignoring PC. This is why they grow quickly in the beginning by reaching the numbers in the plan, but once they reach a certain stage, saturate and are unable to grow further. This is because they produce golden eggs without taking care of the goose, which dies a premature death.<br /><br />The value of a business is the sum of its P and its PC. P is easily measurable by parameters such as annual revenues, profits, number of employees on the rolls, number of branch offices etc.<br /><br />PC involves value of intangibles such as brand identity, customer satisfaction and loyalty, goodwill, competitive advantage and barriers to entry, processes, knowledge and know-how, trade secrets and quality of people.<br /><br />In the early stages, a startup should focus on building PC, even at the expense of short term P. Once the startup has a certain level of PC, P can be generated, maintained, and expanded with ease.Arjun Balahttp://www.blogger.com/profile/00259489357796048607noreply@blogger.com0tag:blogger.com,1999:blog-2111553689664159685.post-52122430182431850862007-08-30T05:12:00.000-07:002007-08-30T05:25:04.788-07:00Scaling upOne of the biggest challenges for a startup, after surviving for a year or so is to scale up. The challenges associated with running a small business on your own are quite different from the challenges of scaling up. When we talk of scaling up in a services company, the following are to be considered<br /><br />1) Increasing the number of clients - business development<br />2) Expanding the scope of services to existing clients and getting repeat business<br />3) Getting in place a strong management team<br />4) Recruiting the right people and training them<br />5) Delivering consistently while maintaining standards of quality and turnaround times<br />6) Upgrading infrastructure<br />7) Improving visibility and brand recognition<br />8) Developing a strategy for competitive advantage<br />9) Increasing reach and expanding to various geographical locations<br />10) Generating sufficient revenues and/or funds to fuel growth<br /><br />These encompass sales & marketing, PR, HR, Finance, strategy and execution, hence 3) Getting in place a strong management team is very critical.Arjun Balahttp://www.blogger.com/profile/00259489357796048607noreply@blogger.com0tag:blogger.com,1999:blog-2111553689664159685.post-27440055264831408482007-07-19T21:22:00.000-07:002007-07-19T22:02:08.633-07:00High Performance EntrepreneurYesterday i attended a TiE networking event with Subroto Bagchi, Co-Founder of MindTree Consulting. He showed a video featuring high performance entrepreneurs V.G. Siddhartha (Cafe Coffee Day), Captain Gopinath (Air Deccan), and Kiran Mazumdar Shaw (Biocon).A point Subroto was trying to make was that these people stood apart from others because they had a vision of a future that did not exist when they started out. They looked at a bigger picture rather than just one cool product or gizmo. Once they had their focus on the bigger picture, the pieces begin to fall in place. In the video Kiran says 'I've been lucky, but one thing that always helps is to be prepared." Gopinath says ' In hindsight, its easy for people to say that something will not work, but i never thought along those lines, i always focused on how to do it, how to help every Indian fly". Siddhartha says " Initially my friends said that why would Indians pay 25 bucks for a cup of coffee when they can get it for Rs 5 at a Darshinis", so his business model wasn't the most obvious at that time, though today we take it for granted that coffee is an experience (not just a drink) that we are willing to spend on. Kiran's message was 'if i can do it, everyone can'. I think that Kiran's story is one of determination. She wanted to make a mark in her career, and when she couldn't find a job as brewer, she didn't let her efforts end there due to temporary failure or setbacks. She went on to create a career for herself that she could not have through a job, because such a job did not exist at that time. She has created jobs for many, and she is a huge inspiration for entrepreneurs and woman entrepreneurs in particular.<br /><br />In his presentation, Subroto talked about the attributes of a high-performance entrepreneur, of which he said that what was most important is "Love for money." This is a quality that Donald Trump calls 'Wealth motivation", which i will discuss in another post. Subroto says that unless you want to make lots and lots of money, you won't become a high performance entrepreneur. This concept doesn't contradict social entrepreneurship according to Rostow Ravanan (CFO MindTree), because even to contribute to society, you need to make money. With limited financial resources, it is difficult to even make a considerable impact on society through entrepreneurship.<br /><br />Subroto says that while building a team, do not go by familiarity or personal comfort, but by proven competence. Friends rarely disagree (e.g., to drink beer or not, which movie to see) and when they do, they do not handle conflict well. It is important to understand that it is OK to disagree when you have complementary team. Also, he stresses on ability to multi-task, shared vision and transparency.<br /><br />Other points Subroto makes are to focus on completing the business plan (once you have a strong business plan, raising funds will not be difficult), get a CFO who looks at finance as strategy (not just a bookkeeper), invest in an accounting package, get processes and systems in place early on, raise money ahead of time, and report accounts to investors on time.<br /><br />Also, he spoke about choosing your customers wisely, not just on short term monetary gains, but to choose customers who will enrich you intellectually. Also to choose investors not just on 'non-interference' but choose those who will question and guide you. Finally, as an attitude, he says we should focus on feeding opportunities, not just on solving problems. The only way to combat problems is to stay ahead of them.Arjun Balahttp://www.blogger.com/profile/00259489357796048607noreply@blogger.com2tag:blogger.com,1999:blog-2111553689664159685.post-80035949515592353182007-07-18T23:07:00.000-07:002007-07-18T23:41:35.482-07:007 Habits of highly effective peopleI've been reading Stephen Covey's book. The first habit is to be proactive. We just cannot stress how very important this habit is. Without this habit, the others cannot be cultivated. It is the most essential habit to be effective. Various issues that concern us are placed in the Circle of concern, and those of which we have some control over are placed in the Circle of Influence. By focusing on what we have control over and not on what we do not, we gradually expand our circle of influence. Proactivity leads to increased control and influence. Proactive people as a rule are much more effective than reactive people, who tend to worry and crib, while choosing to neglect what they can and should be doing.<br /><br />Proactivity is an essential aspect my own personal values, as well as those of my organization, Meta Yage IP Strategy Consulting. We do whatever we can to add value to our clients to the best of our abilities. We do not focus on limitations and instead focus on our client's business objectives and how we can help achieve them. Where we reach a roadblock, we seek help and from a network of experts to get over limitations. By taking a proactive approach, we shall gradually be in a position of influence in the Intellectual Property space.Arjun Balahttp://www.blogger.com/profile/00259489357796048607noreply@blogger.com0