The famous Mumbai Dabbawalas were at our college a few days ago for a workshop on six sigma wherein we as a management student had a great learning as to how to run a organisation with a high quality of attitude,fairness, understanding and generosity between the management, staff and customers. It was unlike other workshops which would run for minimum of eight hours followed by an exam, wherein there is no other option than to have a good meditation during the class. However, what I took home was not just management fundas but lessons that I will cherish all my life. Since these lessons impacted me greatly, I felt that I must share my learnings with you. Therefore I decided to write this blog.
Some of the business practices that i realized that made them unique was their Organisation Culture which is generally defined as the shared values, norms and expectations that guide organisation members in terms of how to approach their work and deal with each other and their customers.
We, try to promote by aligning the organisation's vision, structures, systems, job design, leadership behaviour n blah blah blah..by hiring management gradutaes from premier institutes but they have done it the best way possible, not having any HR manager or any policies and most of the employees are just 8th standard passed.
People in the organisation are the ones who are responsible for making that business sucessful by having a right attitude and commitment towards their work which would only be possible if the employees within the organisation are satisfied.
'Customer Service' is the main idea of the organisation
'No matter what, your lunch would be delivered at your office before time'. is the theme that each and every dabbawala follows.
Utmost dependence on Human Capital
The most vital link in this chain of food delivery is human capital. The procedures could have been laid downover a century ago, but it is the implementation of the procedures that makes the system work. The Mumbai dabbawalas propagate that correct amount of human dependence can yield amazing results.
Honesty and Integrity
The threads of integrity and honesty hold the dabbas together. Though it is lunchtime for dabbawalas also, the aroma wafting from the dabbas has never tempted them. Overcoming a basic instinct like hunger is possible only because of strong roots in a culture that encourages truthfulness and integrity.
Discipline and Time Management
The dabbawalas operate on the Chanakya system of Sama-Dama-Danda-Bhed for the errant members. This ensures that the errant member stays within the system. Secondly, they are extremely particular about time and realise the value of every second in the value chain. So much so that when Prince Charles wanted to meet them, they gave him a precise time slot so that the thousands others would not have to skip their lunch.
Pride towards their work
The dabbawalas take their role as 'Annadatas' very seriously. For them, the delivery of tiffins is much beyond a job – it means q uelling the hunger that strikes the customer when lunch hour approaches. And so they move about their mission briskly with a smile, making sure they are never late.
Recruitment policies and manpower management
Over the years, the dabbawalas has become a growing community of busy delivery-men who carry out theirwork with honesty and commitment. This is because each person in the value chain is selected very carefully and with due recommendation only. The implication of the word 'recommendation' is different from the common parlance – the referrer assumes responsibility for the incumbent's conduct throughout the working life.
Complete Contentment
There was an unseen halo of positive vibrations around the members who delivered the talk. The glow on their faces came from complete contentment with their lives. They seemed as if they possessed all the happinessand riches in life. 'Be contented in what you have' is the principle that governs their life. This is particularly surprising because the members earn not more than 5-6 thousand a month and lead a very hard life comparedto most of us. Still there was not even an iota of stress on their faces – quite contrary to many others who earn much more than them.
Musical Meditation
The dabbawalas belong to a sect called Warkari that regularly chants songs of praise to the Lord. Their daily bhajans sessions seem to play an important role in relieving the day's stress. They truly embody a living where one looks beyond materialistic earnings and serves with commitment for a cause.
Sustained success will lead to fame
The dabbawalas believe in doing their work properly and have been ensuring that the 'zero error' flag is held high. The one thing that emerged very strongly is that they continue to do their work without thinking about any gain. Maybe that's why success and popularity is chasing them .
I do not know about you, but I could not help thinking about these humble angels all night. Is it not strange that though the Mumbai Dabbawalas have been operating since 1890 and it is only recently that you and I have noticed them? If the Dabbawalas had not received due recognition from Prince Charles, Harvard and C K Pralhad, would there be packed audiences to listen to their talk? The answer is obvious. Why does one need a phoren certificate to appreciate local goodness?
If one develops a keen eye to notice positives, one can achieve success in every endeavour. So, begin fishing for goodness - starting today.
Monday, January 21, 2008
Taking Action..
Somebody once told me, "you don't have to get it right, you just have to get it going." It was then that I had one of many ah-ha moments.
When you think about it, nothing ever goes perfectly the first time around. We do things, then we make them better, and continue changing things up as we go.But when we have plans or ideas for things we want to accomplish in our lifetimes, most people will put them off and delay ever getting started simply because of the unknown. We tend to have a fear of failure or the ever pressing need to want to get it just right & make sure all is perfect before we take that first step.
I just want to say, no one ever gets it right the first time. Everything that has ever been created or done has gone through it's own system of trial & error. When we consider how much things have changed over the last 50 years, many have become more economical, simpler and easier to use.If you have been researching and planning and going over every minute detail to make sure everything will be just right before you actually do something, whether it be a business you'd like to have, or a way of making money through the internet, or maybe even a blog. You have to just do it. Honestly, when I started this blog, I had no idea how or what I was suppose to do. In fact, it took me almost 2 days to figure out how to set it up and how the layout stuff worked. (No joke!) All I knew was that I had information that I wanted to share with people.
Take some time getting to know the basics of whatever you plan to do. Then just put it out there. You will be able to tweak it and improve things as you go. In time, it will become as it is meant to be. If you spend too much time trying to get it right, somebody else is going to do it, and then it won't seem so great anymore. Like they say..."You don't have to get it right. You just have to get it going."
When you think about it, nothing ever goes perfectly the first time around. We do things, then we make them better, and continue changing things up as we go.But when we have plans or ideas for things we want to accomplish in our lifetimes, most people will put them off and delay ever getting started simply because of the unknown. We tend to have a fear of failure or the ever pressing need to want to get it just right & make sure all is perfect before we take that first step.
I just want to say, no one ever gets it right the first time. Everything that has ever been created or done has gone through it's own system of trial & error. When we consider how much things have changed over the last 50 years, many have become more economical, simpler and easier to use.If you have been researching and planning and going over every minute detail to make sure everything will be just right before you actually do something, whether it be a business you'd like to have, or a way of making money through the internet, or maybe even a blog. You have to just do it. Honestly, when I started this blog, I had no idea how or what I was suppose to do. In fact, it took me almost 2 days to figure out how to set it up and how the layout stuff worked. (No joke!) All I knew was that I had information that I wanted to share with people.
Take some time getting to know the basics of whatever you plan to do. Then just put it out there. You will be able to tweak it and improve things as you go. In time, it will become as it is meant to be. If you spend too much time trying to get it right, somebody else is going to do it, and then it won't seem so great anymore. Like they say..."You don't have to get it right. You just have to get it going."
Friday, January 18, 2008
Last Few Days In Campus..
And that means it's the last post from the campus. Can't really believe it's all over so fast. I was told by many that the academic learning from a B-school is the best part, but I now believe that the whole experience is what we take home.
I guess the magnitude of leaving this wonder of a place will hit hard when I wake up few days from now to hear no music or hostel-ruffles. Or when I wake up someday a year later to see only deadlines and targets to meet. Or when I'm forced to follow a clockwork sleep-and-wake-up routine. Or when there aren't any late night maggi or ‘chai’(i will miss the most) or movies to look forward to. For now though, I'm kind of glad it hasn't really set in, coz I know its going to be painful.
It’s that time in life when you don’t want something to happen, but know real well that it’s going to. Yes, at long last, I’ve decided against prolonging the ‘parting’ post.With just few more days to go, the mood is all set for departure from the campus. All classes, exams, parties, last minute games, eat-outs, movie outings, digital collections and group outings are over. For the ones who have got the placement , there isn’t even a placement process to look forward to..Lol...It’s like a double edged sword. For people who are participating in the placements, the ‘departure’ feelings are subdued with the expectations of how they are going to fare in the process. For the rest who don’t have the burden of mulling over what companies to apply to and what not to, the fact that life in the campus is over looms hard.
For me though, it’s been a mixture of feelings. I wonder why I really have been significantly impacted by the prospect of leaving. May be because of friends, or was it something else? I myself don’t know..., but what is true is that it’s been a terrific fun-filled ride throughout, with arguably some of the smartest people. And I’m so glad I went through this. [But yes, almost everyone in a similar situation says such stuff. So, what the heck? I’ll stop right here. I’d probably devote a separate post to what my initial expectations from a B-school were and how much I’ve been satisfied.]
I guess the magnitude of leaving this wonder of a place will hit hard when I wake up few days from now to hear no music or hostel-ruffles. Or when I wake up someday a year later to see only deadlines and targets to meet. Or when I'm forced to follow a clockwork sleep-and-wake-up routine. Or when there aren't any late night maggi or ‘chai’(i will miss the most) or movies to look forward to. For now though, I'm kind of glad it hasn't really set in, coz I know its going to be painful.
It’s that time in life when you don’t want something to happen, but know real well that it’s going to. Yes, at long last, I’ve decided against prolonging the ‘parting’ post.With just few more days to go, the mood is all set for departure from the campus. All classes, exams, parties, last minute games, eat-outs, movie outings, digital collections and group outings are over. For the ones who have got the placement , there isn’t even a placement process to look forward to..Lol...It’s like a double edged sword. For people who are participating in the placements, the ‘departure’ feelings are subdued with the expectations of how they are going to fare in the process. For the rest who don’t have the burden of mulling over what companies to apply to and what not to, the fact that life in the campus is over looms hard.
For me though, it’s been a mixture of feelings. I wonder why I really have been significantly impacted by the prospect of leaving. May be because of friends, or was it something else? I myself don’t know..., but what is true is that it’s been a terrific fun-filled ride throughout, with arguably some of the smartest people. And I’m so glad I went through this. [But yes, almost everyone in a similar situation says such stuff. So, what the heck? I’ll stop right here. I’d probably devote a separate post to what my initial expectations from a B-school were and how much I’ve been satisfied.]
Wednesday, January 16, 2008
Your Career..
It's funny. Everyone thinks that once you get a job you just stop caring, but we still have quite a bit to learn.....and that is something we need to realise.
"It's over. No more vertical. No more ladder." That's not the way careers work anymore. Linearity is out. A career is now a checkerboard. Or even a maze. It's full of moves that go sideways, forward, slide on the diagonal, even go backward when that makes sense. (It often does.)
A career is a portfolio of projects that teach you new skills, gain you new expertise, develop new capabilities, grow your colleague set, and constantly reinvent you as a brand.
As you scope out the path your "career" will take, remember: the last thing you want to do is become a manager. Like "résumé," "manager" is an obsolete term. It's practically synonymous with "dead end job." What you want is a steady diet of more interesting, more challenging, more provocative projects. When you look at the progression of a career constructed out of projects, directionality is not only hard to track -- Which way is up? -- but it's also totally irrelevant.
Instead of making yourself a slave to the concept of a career ladder, reinvent yourself on a semi regular basis. Start by writing your own mission statement, to guide you as CEO of Me Inc. Ask questions..
What turns you on?
Learning something new?
Gaining recognition for your skills as a technical wizard?
Shepherding new ideas from concept to market?
What's your personal definition of success? Money? Power? Fame? Or doing what you love?
However you answer these questions, search relentlessly for job or project opportunities that fit your mission statement. And review that mission statement every six months to make sure you still believe what you wrote.
No matter what you're doing today, there are three things you've got to measure yourself against. First, you've got to be an exceptional expert at something that has real value.
Second, you've got to be a broad-gauged visionary -- a leader, a teacher, a farsighted "imagineer." Third, you've got to be a businessperson -- you've got to be obsessed with pragmatic outcomes.
Remember, You are a brand. You are in charge of your brand. There is no single path to success. And there is no one right way to create the brand called You. Except this: Start today. Or else.
"It's over. No more vertical. No more ladder." That's not the way careers work anymore. Linearity is out. A career is now a checkerboard. Or even a maze. It's full of moves that go sideways, forward, slide on the diagonal, even go backward when that makes sense. (It often does.)
A career is a portfolio of projects that teach you new skills, gain you new expertise, develop new capabilities, grow your colleague set, and constantly reinvent you as a brand.
As you scope out the path your "career" will take, remember: the last thing you want to do is become a manager. Like "résumé," "manager" is an obsolete term. It's practically synonymous with "dead end job." What you want is a steady diet of more interesting, more challenging, more provocative projects. When you look at the progression of a career constructed out of projects, directionality is not only hard to track -- Which way is up? -- but it's also totally irrelevant.
Instead of making yourself a slave to the concept of a career ladder, reinvent yourself on a semi regular basis. Start by writing your own mission statement, to guide you as CEO of Me Inc. Ask questions..
What turns you on?
Learning something new?
Gaining recognition for your skills as a technical wizard?
Shepherding new ideas from concept to market?
What's your personal definition of success? Money? Power? Fame? Or doing what you love?
However you answer these questions, search relentlessly for job or project opportunities that fit your mission statement. And review that mission statement every six months to make sure you still believe what you wrote.
No matter what you're doing today, there are three things you've got to measure yourself against. First, you've got to be an exceptional expert at something that has real value.
Second, you've got to be a broad-gauged visionary -- a leader, a teacher, a farsighted "imagineer." Third, you've got to be a businessperson -- you've got to be obsessed with pragmatic outcomes.
Remember, You are a brand. You are in charge of your brand. There is no single path to success. And there is no one right way to create the brand called You. Except this: Start today. Or else.
You : The Brand
Make no mistake, we all represent a brand. It's the brand of you. How you talk, walk, and look reflects on that brand. Do you come across as trustworthy, confident, and competent, or do you fail to captivate your listeners? As I told , your work, references, and portfolio set the stage, but when you take "the stage," you are the sole experience a listener has with your brand. Whether you're pitching a service, product, company, or cause, there are some qualities you need to posses.
Remember that if people like you -- and feel good about you -- they are more likely to invest in you, your service, or your project. So whether you're speaking to an audience of one or 1,000, think about how you project the brand of you. Your brand deserves an extraordinary spokesperson -- and you're it!
Remember that if people like you -- and feel good about you -- they are more likely to invest in you, your service, or your project. So whether you're speaking to an audience of one or 1,000, think about how you project the brand of you. Your brand deserves an extraordinary spokesperson -- and you're it!
Monday, January 14, 2008
Things that they don’t teach at B-school, but which you learn anyways..
When people ask me about what I learned during my year as an MBA student, a lot of things come to mind. Did I enjoy Management course more than orkutting, surfing and googling??Or maybe it was the corporate finance and strategic management classes that really got the juices flowing. But if I really think about it, it was 'developing a perspective' that really made a difference to the person that I am today. Ability to respect others for their views. It honed my way of thinking. I was amazed to see so many ways to look at a single thing.It taught me to have different persectives and have a groomed personality.
So, as a tribute to the unsung learning sessions that are never mentioned in many MBA brochures, I thought that some of my class mates and me could sing a few praises to these, in a short series.
The MBA degree is a high risk proposition because MBAs tend to adopt 'herd-like thinking'.What does this mean?
Basically, that MBAs are under the perception that by getting an MBA degree they will be immune to adversity in their careers. MBA students are in an environment that breeds conformity and risk averseness. The truth is that life is full of uncertainty. To be successful, one must find one's passion and pursue it enthusiastically.
Shortcomings of MBAs:-
They expect a high degree of structure.
They have a false sense of arrogance.
They have a sense of entitlement.
They underutilize the alumni network.
Well, To being with I wanted to highlight the lessons that I learned as during the group work performed during our year at B-school.
LESSON 1: GROUP WORK and BALANCE
For those that are unfamiliar with our curriculum, it emphasizes on group work rather than on individual contributions for completing majority of the course assignments. To make matters more complicated, the groups are shuffled every now and then, during the year. So everyone is a member of different groups. I’m not sure if the same procedure is followed at other schools, but in my opinion it is something that should be highlighted as a 'Best practice'. Let me explain why….
The first group is the one that brings the most anxiety and is also the one that sets the trend for the year to follow. At this time, people are just getting to know each other and impressions are being formed. So the way that we behave and react in our first group defines how we get recognized for the rest of the year. For example, if you are a hardworking individual that always does his work on time, then you will come to be recognized as a reliable and efficient individual (or, in some cases a nerd). If you are always late and lazy with your team assignments, then lazy and fun loving is what defines you. I guess the best one to be, is the person who manages to achieve a balance between these two extremes. Everyone needs to have a mix of seriousness and fun that manifests themselves at the right times. And to add to the complexity, the balance shifts with each group. Hence, we find some groups that are serious achievers whilst others always seem to have fun while working together. I guess that finding the balance that fits the group is one of the toughest and best lessons that one learns during the MBA.
LESSON 2 :
In addition, the learning curve was extremely high, with the constant pressure of studying, group work and social activities (which are numerous to say the least). I have heard that an MBA is about balancing all of ones responsibilities and sorting out what is the most important to each individual. I believe the brief experience I have had here at B-school, has been a valuable learning experience in prioritizing 'what is important to me', because people will always try to make a fool of you at each and every step and its you who is going to suffer.
LESSON 3 :
Prioritizing things : At any point of time, inundated with assignments and projects to be submitted, the trick is to identify and prioritize things to do.
LESSON 4 :
Balancing Your Personal and Professional Life, individuals learn how to establish priorities and make their daily life reflect those priorities. They explore ways to identify and manage the sources of stress in their life and pursue lifestyle changes in order to help manage various sources of stress. There woud be lot many things to distarct you during your studies, which could even divert your mind but that all has to be managed so that one comes out doing what he realy wants to do.
LESSON 5 :
Putting a argument has to be bound with data. Without data, any argument look fake. Data supports your point or argument.
LESSON 6 :
Logic, whatever one does has to have a logic. Before doing anything we need to ask 'WHY' five times. When we are clear in our thinking as to why we are doing this, we have better understanding as to where we are going and we can better communicate.
LESSON 7 :
When faced with our own experiences,(professional as well as personal) many of us wonder if we have made the right choices and what other paths we could have chosen.
LESSON 8 :
People would'nt do anything, unless there is some interest. So one needs to identify that interest and set it as a goal and communicate that to them. People would be more than happy to work towards it.
However, there were lot many things that we tried and have learned, but stil there's lot to be done on that.
More lessons to follow…….
Things we did not Learn.......
B-school for me was an amazing world of learning. Sure, some subjects were rather dry, but I suspect most of it was in the way the subject was taught.
I recall that a full credit course in Sales and Marketing, was one of the most attended classes in my batch, because it was taught outstandingly well by one of the most renound professor in the industry. Overall, I would attribute a lot of my professional success to what I learnt at B-school. That said, I still think there are things a B-school education does not prepare you for, or does not teach much about.
Real life decisions are more than "class participation": People here are at the same wavelength like us. More or less, dealing with this crowd is easier. How about real life situation, when your customers are uneducated? Some how we dont know how to communicate and respect their point of view.
Brevity, Someone said "Brevity is the soul of wit". Real world has no time. When one presents anything to a client or a customer, these guys dont have time. There we need to sell ourselves within seconds. Dynamic environment today demands that one is precise and succint. But through out the course we kept giving more than 20 pages write-ups and more than 50 slides PPTs! Exams always were lenghty and testing the memorizing aspects not the ability to execute any learning from the book.
Execution, In B-school, all that you learn is from books, periodicals, case studies, which do not prepare you for the biggest differentiator in the real world.
Moreover, B-school teaches you to have 'ego'. One feels as if he knows everything and that applies to all of us. It this cockiness and complacency that sometimes becomes his own adversary.
Dealing with Failure: learning comes from experience and good learning from bad experience. But no B-school teaches you to take failure in your stride.
So, as a tribute to the unsung learning sessions that are never mentioned in many MBA brochures, I thought that some of my class mates and me could sing a few praises to these, in a short series.
The MBA degree is a high risk proposition because MBAs tend to adopt 'herd-like thinking'.What does this mean?
Basically, that MBAs are under the perception that by getting an MBA degree they will be immune to adversity in their careers. MBA students are in an environment that breeds conformity and risk averseness. The truth is that life is full of uncertainty. To be successful, one must find one's passion and pursue it enthusiastically.
Shortcomings of MBAs:-
They expect a high degree of structure.
They have a false sense of arrogance.
They have a sense of entitlement.
They underutilize the alumni network.
Well, To being with I wanted to highlight the lessons that I learned as during the group work performed during our year at B-school.
LESSON 1: GROUP WORK and BALANCE
For those that are unfamiliar with our curriculum, it emphasizes on group work rather than on individual contributions for completing majority of the course assignments. To make matters more complicated, the groups are shuffled every now and then, during the year. So everyone is a member of different groups. I’m not sure if the same procedure is followed at other schools, but in my opinion it is something that should be highlighted as a 'Best practice'. Let me explain why….
The first group is the one that brings the most anxiety and is also the one that sets the trend for the year to follow. At this time, people are just getting to know each other and impressions are being formed. So the way that we behave and react in our first group defines how we get recognized for the rest of the year. For example, if you are a hardworking individual that always does his work on time, then you will come to be recognized as a reliable and efficient individual (or, in some cases a nerd). If you are always late and lazy with your team assignments, then lazy and fun loving is what defines you. I guess the best one to be, is the person who manages to achieve a balance between these two extremes. Everyone needs to have a mix of seriousness and fun that manifests themselves at the right times. And to add to the complexity, the balance shifts with each group. Hence, we find some groups that are serious achievers whilst others always seem to have fun while working together. I guess that finding the balance that fits the group is one of the toughest and best lessons that one learns during the MBA.
LESSON 2 :
In addition, the learning curve was extremely high, with the constant pressure of studying, group work and social activities (which are numerous to say the least). I have heard that an MBA is about balancing all of ones responsibilities and sorting out what is the most important to each individual. I believe the brief experience I have had here at B-school, has been a valuable learning experience in prioritizing 'what is important to me', because people will always try to make a fool of you at each and every step and its you who is going to suffer.
LESSON 3 :
Prioritizing things : At any point of time, inundated with assignments and projects to be submitted, the trick is to identify and prioritize things to do.
LESSON 4 :
Balancing Your Personal and Professional Life, individuals learn how to establish priorities and make their daily life reflect those priorities. They explore ways to identify and manage the sources of stress in their life and pursue lifestyle changes in order to help manage various sources of stress. There woud be lot many things to distarct you during your studies, which could even divert your mind but that all has to be managed so that one comes out doing what he realy wants to do.
LESSON 5 :
Putting a argument has to be bound with data. Without data, any argument look fake. Data supports your point or argument.
LESSON 6 :
Logic, whatever one does has to have a logic. Before doing anything we need to ask 'WHY' five times. When we are clear in our thinking as to why we are doing this, we have better understanding as to where we are going and we can better communicate.
LESSON 7 :
When faced with our own experiences,(professional as well as personal) many of us wonder if we have made the right choices and what other paths we could have chosen.
LESSON 8 :
People would'nt do anything, unless there is some interest. So one needs to identify that interest and set it as a goal and communicate that to them. People would be more than happy to work towards it.
However, there were lot many things that we tried and have learned, but stil there's lot to be done on that.
More lessons to follow…….
Things we did not Learn.......
B-school for me was an amazing world of learning. Sure, some subjects were rather dry, but I suspect most of it was in the way the subject was taught.
I recall that a full credit course in Sales and Marketing, was one of the most attended classes in my batch, because it was taught outstandingly well by one of the most renound professor in the industry. Overall, I would attribute a lot of my professional success to what I learnt at B-school. That said, I still think there are things a B-school education does not prepare you for, or does not teach much about.
Real life decisions are more than "class participation": People here are at the same wavelength like us. More or less, dealing with this crowd is easier. How about real life situation, when your customers are uneducated? Some how we dont know how to communicate and respect their point of view.
Brevity, Someone said "Brevity is the soul of wit". Real world has no time. When one presents anything to a client or a customer, these guys dont have time. There we need to sell ourselves within seconds. Dynamic environment today demands that one is precise and succint. But through out the course we kept giving more than 20 pages write-ups and more than 50 slides PPTs! Exams always were lenghty and testing the memorizing aspects not the ability to execute any learning from the book.
Execution, In B-school, all that you learn is from books, periodicals, case studies, which do not prepare you for the biggest differentiator in the real world.
Moreover, B-school teaches you to have 'ego'. One feels as if he knows everything and that applies to all of us. It this cockiness and complacency that sometimes becomes his own adversary.
Dealing with Failure: learning comes from experience and good learning from bad experience. But no B-school teaches you to take failure in your stride.
Issues to be consider before jumping into 'Entrepreneurial Fray'
The 9 most important questions in business ..
- What is your value proposition?
- What differentiates your product from the competitors'?
- How much cash do you need to survive in the early years?
- What are your strengths?
- How big is the threat of new entrants?
- How much power do your suppliers have?
- Does the business scale?
- What price will your customers pay?
- How committed are you to making this happen?
"There are three sets of issues that one must consider when thinking about how to become an entrepreneur, particularly if you are born into a middle-class family of professionals (one or more of your parents work for a large company).
The first involves getting started, leaving a safe job or career prospects and jumping into the entrepreneurial fray.
The second issue has to do with maintaining and building a viable business, successfully scaling up so that one has not just managed to 'survive' but also to grow the business and create great value for investors.
Finally, there's the issue of knowing when to move on, either by selling the business or handing over to someone who can bring new energy, skills and ideas to bear.
Let's take each of these issues in turn, and examine some of the things you can do to address them...
- SO WHAT’S YOUR BUSINESS ALL ABOUT?
The wording of this question will change, but this is the classic “elevator pitch” question. Translation: “In the shortest amount of time possible, grab my interest by the proverbial you-know-whats.” Sell them quick, with something simple and powerful they can remember; and keep reiterating that message throughout your presentation.
- WHAT’S THE BARRIER TO ENTRY FOR COMPETITION?
- WHAT’S GOING TO STOP BIG MONSTER COMPANY IN YOUR SPACE FROM COPYING YOU?
This is almost identical to Question No. 2 but it’s more commonly asked because there’s always competition. And, it’s usually from the “big bad wolf” company that’s got tons of money, lots of market share, a huge staff and years of experience. For starters, don’t say, “What competition? We don’t have any.” There’s always competition. Secondly, this is a tough question to answer. What is stopping “big bad wolf” company from copying you instantly and smashing you like a bug? Generally, you can argue: We can move more quickly. Big bad wolf is too busy managing what it’s doing to innovate. They’ll acquire us rather than copy us.
- HOW FAR DOES THAT MONEY GET YOU?
Have a good answer to this question. Couch this in product and financial terms, i.e. “It gets us six months past launch, when we expect to be cash flow positive.” The best way to think about this is to calculate how long the money will last if you earn zero revenue. Count backwards by four-six months and that will tell you when you need to start the process of raising more money. If the money is only going to last you four-six months, you need to start looking for more money almost immediately (which isn’t a pleasant thought.)
- WHY ARE YOU RAISING THE MONEY YOU WANT TO RAISE?
The amount you’re asking for is critical. Make sure you’ve done your financial homework. Don’t tell them your numbers are conservative, just explain to them how you arrived at them.
- DO YOU HAVE ANY CUSTOMERS? HAVE YOU SPOKEN TO POTENTIAL CUSTOMERS?
Investors are looking for traction, or at least the inkling of traction. As soon as possible, try and get a few potential customers to say, “Sounds interesting.” You might even use them as references. This raises the comfort level for investors and helps answer the question, “What’s the market?”
- WHAT’S YOUR MARKETING STRATEGY?
For early stage companies this is a very tough question. Chances are “just getting to freaking launch” is what you’re thinking, but that’s not good enough. And “launch big” is equally uninspiring. Think about presenting a timeline of events and customer acquisition numbers that you’re anticipating, tied to marketing. Throw in a variety of strategies that you’re going to do or researching. Marketing will be critical to your success, so you better plan for it sooner rather than later.
- HOW ARE YOU HANDLING TECHNOLOGICAL INFRASTRUCTURE FOR SCALING?
Investors want technical details. They want to know that you’ve thought about the behindthe-scenes technology to support your system. When customers are signing up faster than you can process their credit cards (don’t let that happen!), will the system stay running at a reasonable speed? The further you get along in the process with investors, the more technical details they’ll want.
- WHAT’S THE TEAM LOOK LIKE? WHAT ARE YOUR BACKGROUNDS?
Investors want to know the backgrounds of the founders. If you’ve got people on staff, they’ll want to know who, why you hired those people, and who else (and how many) you need to bring on board. They’ll want to know how quickly you expect to grow the team over time as well. Although there are common questions you’ll get from venture capitalists and angel investors, what’s more fascinating is that each investor will ask different questions. You can’t be prepared for every question, but even if you get new ones, the more comfortable you are pitching (because you’ve done it so many times), the better.
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