New waves of entrepreneurship (or, why Mumbai is no longer the entrepreneurial capital of India)

Mumbai is dead...long live India!

Mumbai has long accounted for all the largest number of entrepreneurial ventures - the birthplace for all large corporates - the Tatas, the Ambanis, the Godrejs...and many more...all of them are credited with making Mumbai the commercial capital of India.

But I believe that the days of Mumbai as a entrepreneurial beehive are numbered.  And these are the reasons for my prediction:

1. Entrepreneurship requires lotus eaters.  People who are willing to set aside the daily hub-a-hub of life to dream of doing something different, even the ridiculous.
2. The single minded focus on commercial success does not drive entrepreneurs.  Entrepreneurs are more interested in the success of their dreams and not in the money that they can make, Mumbai has passed that stage.
3. The opportunity costs are too high.  In any other part of India, the opportunity costs of not working for immediate financial needs are still not high, and therefore one can afford to want to start something; not, I am afraid, in Mumbai.
4. Mumbai is overcrowded - not just literally.  Everyone is jostling to be the next millionaire.  The scope for aiming for a few hundreds (against the millions which every Mumbaikar dreams of) are very restrictive, and not attractive to the average intending entrepreneur.

So; is there hope?  Certainly, but only for the rich and the leisurely; this is the crowd to watch out for.  Until then, expect more GVKs and GMRs to capture the entrepreneurial space even in Mumbai.. And look out for the Lucknows, Hyderabads, Bhopals, Mysores, and Coimbatores to emerge.

Watch the results from the ET sponsored Power of Ideas campaign participants (you can check out www.powerofideas.co.in)  and you will know what I mean.

Lessons in Entrepreneurship

This is now the third year of running DATAWISE and tremendous learning for me.  While the first couple of years was spent on learning how to build a business, now, sustenance becomes more important.  I thought that other budding entrepreneurs, who must be going through similar travails would benefit from my own experience. This is my Saath Sutra (the seven principles)  from the last three years of running the company:

1. Building a philosophy: It is easy to build business: do prospecting, send proposals, sign contracts, and deliver.  However for sustained growth, everything must revolve around a philosophy. In my case, I took some of the elements which are closest to my heart and built these as a foundation to the company.  these have now become a part of the values of the company.  Invariably, every new staff member realizes that these are the essential qualifications required to belong.  You will be surprised as to how easily both internal and external alignment are achieved.
2. Delegation blues: While initially I would get involved in everything, slowly I started delegation to others.  While delegating, be prepared to step in anytime; in fact, breath down the necks of the persons you are delegating to (to pucca officewallahs this may sound sacrilege!) only to ensure that there is complete alignment. Nonetheless, be prepared for mishaps and changes in both execution quality and styles - condemn mistakes, but cover up for them.  
3. Overcommunication: I spend more time nowadays in informal communication than I have ever done in my entire life! I find an occasion to drive a point, either to one person, or to the entire staff.  I ask for feedback, but do not get swayed by it.  After all, it is my company and I need to drive it the way I want to.
4. Expect people to leave: This was one big learning.  I assumed that my team would remain with me forever! My investment in time in bringing all to the same level as I expected them to come to has been tremendous - and painstaking.  Yet, I suffered from instant heart-breaks the first time someone wanted to leave the company. I now realize that only a few of the staff will stay.  I now plan to have more people in the pipeline than business would normally call for.
5. Scouting for talent: The first few staff are the reluctant ones, those who do not know your reputation and are pay-day oriented.  As the company's reputation grows, I am now able to attract talent, and am in a position to pick and choose.  In the last few months, there have been more people that I have rejected than selected. However, I need to keep this as an on-going exercise. Instead of now looking for 'employees' I look for 'partners' - someone who is willing to invest time and effort to make the business grow.
6. Surprise Element: Over a period of time, my staff knows exactly how I would tend to behave or react, and this predictability makes it difficult to elicit behavior which is expected from them.  I now make it a point to do or say things which they would never expect from me. Creating moments of surprise, crisis, joy... all go towards making a livelier set up.
7. Focus on Customer: This is an old one.  However, when dealing with multiple customers, I realize that this is easier said than done.  Typically, I expect to have more than one customer calling up at the same time with an issue.  The only way I deal with it is continue to work the long hours.  

Happy Entrepreneurship!