Why Kawasaki at Nasscom ?

Bangalore played host to the Nasscom Product Conclave over the last couple of days, and it was a brilliantly organized event. The best part of it, imo, was the cross section of participants the event was able to pull in. Such major industry events usually get a little intimidating for the smaller, just starting out guys - but this conclave easily avoided that. The sessions were useful, deeper than usual, and because of these reasons, packed. The networking was very very active, and I pretty much caught up with everyone I've met and come across over the last four years!

Amidst the relevance, interactivity and focus of the event, Guy Kawasaki - as a keynote speaker and twitter specialist :) - added the superstar draw for many folks. Guy's a great speaker with ready wit and humour, and very, very approachable. He's also a persistent marketer.

However, I do think he wasn't the best choice for the keynote. Also, the session he conducted was as much a distraction from the theme of the event as it was an attraction for many. Why do I think so?

Guy Kawasaki @ Nasscom 2009 , Bangalore

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• The keynote presentation above was not the most relevant to the ground reality in India. At all.
• We do NOT get people for free here - not that much of a resession after all.
  
• We also are awesome "value" creators and it often makes sense for a large chunk of startups (especially as they learn about business) to start in the lower right quadrant - a small chunk of startups can shoot for uniqueness, and especially building a business around it. Execution, value hold they key to getting a shot at stage 2.
• Twitter as a marketing tool in India ? Hmmm. I'd almost say a large chunk of active Tweeters were actually in that room :) I exaggerate, but you get the idea.
  
• We need a couple of home-grown superstars who, like Guy, are great speakers and approachable, and are less jargon-laden than anyone who gets to some level of success has a tendency to become. Entrepreneurs building products need stellar examples they can relate to, as well as understand!
• The Twitter 101 was a little too basic for a lot of the crowd. Some of the ideas shared both in the keynote as well as the sessions would be very very useful in a college, or what-do-I-need-to-know before I start out crowd, but a lot many attendees have progressed beyond that. We needed Marketing 102, or Sales 102, etc. more than this.
  
• I'm completely guessing - but it must've been expensive :)
• The Indian product space needs a little more grunt and grassroots and less superstardom-aspirations - and getting a major star like Guy can reinforce the wrong message. Too many folks already confuse the superstar dreams for passion.

Apart from this, though, I had a terrific time at the event. Made connections, and started out on my journey to understand the fascinating world of real world marketing and sales (I'm still in Kindergarten wrt those, especially sales). The CIO session was very useful (wow, people who really spend money on software :D) though one always would love more direct, straightforward and precise ideas about how the real world operates (no discussions on size difference related issues, kickback-demand handling, etc)

Nasscom has taken a very conscious step towards supporting product creation out of India. And from the evidence at hand, its at most an iteration or two before the geeks really connect with the biz folks, and magic happens.

Chamak washes dirty linen in public. Execution, Execution!

Just yesterday, we had been discussing what else hyper/local play could do to expand business and create differentiators, and I'd mentioned to Indus that ironing services inside apartment complexes have always been a major point.

This morning, went downstairs to drop the kids to the school bus, and what do I see ?

Chamak - Neighborhood Washing & Ironing Services

Each kg of clothes is 40/- and they even SMS you once its done!

Quite obviously, its intended to be a big chain over time - a la Ferns And Petals for flowers. They seem to have about 10 locations in Bangalore itself. Someone obvioulsy heard the chatter about the pain points with the existing vendors etc and decided to give this a shot. I'm not yet debating about it being a great idea etc, but its and opportunity, and its heartening to see someone take a crack at it.

On digging just a little, here's what I found - introducing the Village Laundry Service funded by Innosight Ventures, and promotes individual entrepreneurs to run their rigs.

One's heard often that 10 other people have exactly the same idea at the same time as you have it (or even earlier), and it boils down to execution, but it was still a very wow moment to come across a real world example of one such.

The Ecosystem is Broke(n)

During the course of a conversation-over-chai after a meeting with fellow entrepreneurs, we eventually got to the usual analysis of whats happening in the startup and entrepreneurial space around here.

Surely enough, the echo-chamber that resonates its own thoughts, and has little connection with those outside, soon came up.

So what's paining/failing early startups/small companies/first time entrepreneurs ? What does a business need to make it ? You've got the idea, you might get to the product, or some version of it, but then you sometimes kinda get stuck. For lack of decent, honest, precise advice, information, knowhow, or even plain awareness.

Distribution, the right pricing, what should your outbound communication be ? Are the buyers interested ? Why not ? Is it technology, or support, or something else ? Do we even know what's really happening in the spaces we're trying to connect to ? Is there any form of market intelligence at all ? (I do not include a critical analysis of launches, PR statements and quarterly results in this - that often does not help a startup too much). What's the government's take on issues ? What are the infrastructural changes in the offing and their likely impact ? How do you engage in a dialogue with these (you're already drowning in work) ?

An early entrepreneur would surely love an ecosystem into which inputs that cover the above aspects are drawn in. An ecosystem, again, is not the creation or sole preserve of this forum or that, or some or the other online publication. Its the coming together of all of these, with dialogue flowing between the various stakeholders.

That ecosystem is quite inadequate in India, as of now.

As I see it now - be it major startup events (both structured and otherwise), or online coverage of entrepreneurial activity - there are two major problems:

There's no EcoSystem (but only a part of it)

Sure there's a bunch of enthusiastic VCs who participate. There's a few industry people who even mentor folks. There's a lot of aspirants who want to get going, and then there's a bunch of people who've seen and done a little, and pass off a lot as knowledge.

There's a lot of hype, jargon and very little honest learn-as-we-participate happening inside this echo-chmaber.

More importantly, where are the people who're connected to the real world ?

Are there any top sales folks from FMCGs, Financial Services, Retail, etc, who're telling it how it is ? Do we get real info on what directions business development is taking in healthcare, telecom, energy, real estate, etc ? Yes, you sure pick up bits and pieces of info as you run into these industries, but you're on your own, and its a very incomplete ecosystem without these inputs.

Things are being built, reviewed, validated in isolation from these realities, and only a rude jolt much much later in the process forces a rethink. By such time, some have lost too much money, or people, or enthu, or time. People seem to go through entire entrepreneurship lifecycles with little connection to their real markets - and with a very fuzzy understanding of its behavioural traits. User personas are tough, but even worse, they're probably non-existent in our startups!

A few honest tips from people who've sold stuff "out there", figured out causes and relationships on the ground, would go a long way. Having access to thoughts from a senior bureaucrat who might be able to analyze government policy and directions better than techie-turned-analyst/VC/blogger would give the ecosystem a serious leg up. And so on - for media and communication, for figuring out pricing, and a whole lot more.

We need "more-360". Its a very very small world right now with few connects into reality. Gotta change.

There's no co-operation

This is true for both the players that help create the current ecosystem, as well as for co-operation amongst startups. Everyone is trying to do everything, be everyone, and seems a little fearful of opening up to inviting folks with other competencies. The expansion of the ecosystem needs an honest appraisal of whats available today, and whats missing. There needs to be a concerted effort to expand it, collectively. Each resource, each forum is so small and ineffective at this point that talking about competition is plain short-sighted.

Some gaps that I think exist:

• Experts for many aspects of entrepreneurship are missing from the discussions/fora.
• The entire focus is on "how to start" and "how to get funded". Even the words mention otherwise, the actions focus on these two. What about the startup which has been around for a while ? What about those who need a redo, or are about to pack up ?
  
• Exploration of new models. Right now - pretty much everything is a lift-and-fit from the Valley, and there's a tonne of traditional business knowhow thats ignored. The Nano was not created by adopting and stripping down an existing design. Need models for small ticket M&As, newer funding models that may not work like the current fund-of-risks model we see today (and that may have different investors from the essentially financial players one sees now), newer kinds of VCs, different models for hiring/organizational structure.
  
• Way more co-operation between startups. Trying to focus on what one does best, and keeping burn rates ridiculously low, will help get better success. There's often failure induced by a lack of understanding of competencies that could easily be co-operated on, but that essentially smart folks fail at trying to understand and learn quickly enough. If you can get products out fast, marry someone who buys in and sells well. If you can network, help create and manage partnerships for others. More distributed ownership, higher stakes and commitment, lower "salary" costs.

Someone's gotta to take the lead on some of this. A few success stories (to whatever extent - its not just $100 million exist that count) and we'll see more entrepreneurial activity that's built on newer models, for our own markets, at our price points, and stuff that sustains.

Xtreme Startups @ IIM Bangalore

NSRCEL hosted Xtreme Startups - an event where entrepreneurs share experiences and discuss issues that could affect us all - last Sunday. It was a very candid, open discussion and fortunately, the discussion was much better than the usual level at which it ensues at BarCamps etc. Khaitan (representing MVP) did a great job of keeping a lively discussion going. He can also blow a whistle like he could in college!

The founders from Muziboo, LifeMojo and RedBus shared their diverse experiences - the great thing was that all three were as different from each other as possible:

Muziboo is done by a couple - Prateek and Nithya - working out of home over the last two years. They did little market research, but had a very strong sense of how online communities might work - and music was an area they thought would attract a passionate enough crowd and one which was a need not met online yet. They've done some consulting on the side (No end to end projects, low end stuff that keeps the cash flowing and lets them experiment with stuff they can then use on their site as well!), kept costs low, the team small and growth plans flexible enough to not need to go to a VC yet. They've tracked and cracked - through some trial, error and insights developed first-hand - a lot about what different segments of their traffic means in terms of value - what behaviour they want to encourage, and what will get their users to talk more about them. They seriously think SEOing, "buying CPCs" and beating your own drum about the product is best avoided early until such time as you attain critical mass, and its best to keep working on the product till it gets users to talk to others about it ("People try something when they hear about it from at least three others").

I loved the courage they've demonstrated to do things differently from the regular startup-VC-conveyor-belt approach. I liked the fact that understanding the market happened as a process (which is the real truth anyhow) and not as some upfront spreadsheet and search-engine derived wisdom. Their apparent willingness to experiment, learn, rinse, repeat and total honesty about it was heartening, and I think this will grow into a very successful business over time. They have a very healthy percentage of prosumers already - and I wish them godspeed.

LifeMojo's Namit went next, and his motivation was the clearest from the word go! He got very serious about pursuing a dietary plan to lose weight, and spotted the market and acted on it, along with his friends. They managed to rope in professionals to both advise them, and be their reference customer. Their learning curve for both the B2B space as well as the foray into the B2C story has been quite steep, and they seem to be evolving quickly. Again, the market research was informal and intuitive, and they were sure they wanted to have a positive impact on personal healthcare management much before they'd figured out the exact ideas and form those would take. Business and product development have become two separate focus areas quite early, and its good to see the revenue focus right upfront though the exact models are still on the evolutionary treadmill. Their enthusiasm and the proactiveness in engaging various stakeholders of their industry is something that should stand them in good stead.

RedBus and Phani are well known as are their stories. What was surprising was his attributing a lot of their success to mentors whom he's consulted each time they had a dilemma, and whose advice he always goes with. His focus on, and efforts to rope in seriously big names as mentors were awe-inspiring.

RedBus was born of an opportunity spotted when Phani missed a bus. He then spent months traveling (in buses that I guess he did not miss) and understanding his market, and months again convincing the first few operators of the need for and value in making inventory available to them. To me, this was the most critical differentiator of the business that depends on relationships and efficient operations. RedBus has been pessimistic in its projections, efficient in its operations and has consistently beaten its projected numbers. The investors have reposed their faith multiple times already, and Phani seems to be thinking big, while being very focused on building a business which can sustain growth. Decision making is not a CEO-only thing at RedBus, and the fact that 170 families depend on the business makes him avoid whimsical decision-making completely.

It was a great session - and nice to see that entrepreneurs have varied motivations, and paths to and even definitions of success. Its important to "not just read blogs" and latch on to someone else's agenda as your own. Phani will learn from everyone because he's looking out to doing that. Prateek/Nithya can easily question conventional wisdom because of a deep understanding on how his users behave and what they're looking for. Namit is likely to brave any storm cause he's pretty sure there's so many folks out there whom he can help and that they understand that better than most.

Its the optimism, the focus on the goal (though those vary a lot) and the willingness to learn along the way that were common across all of them.

The Passion of the Entrypreneur

There are businesses, and there are businesses. Some become big brands, some get into franchising, some are huge enterprise-driven cash cows.

My favourite kind of business is a little more romantic though - the kind where the passion of it rules - its size is almost guaranteed to be single-store or small otherwise because the energy and keenness it needs pretty much cannot be replicated. Its rarely the most profitable (in cash terms) but usually extremely loved and respected, and sustains. The brand is huge in its own niche, and its amazingly satisfying in its own way.

I'd place some of these in that category:

BOTS : Bums On The Saddle

Nikhil and Rohan are regular software guys who are passionate about bicycles, and dared to try and change the cycling scene in Bangalore on their own! They rented "space" on the terrace and built (by hand!) their showroom. They've got a lot many customers over the few hours every weekend that BOTS opens, and even more friends because of the amazing community they're helping create. They participate in biking forums as riders, enthusiasts and also as people who sell Treks if you need those. The DIY workshops at BOTS, the biker-movie-nights, the wiki/FAQ for rentals, what bike etc, and the readiness and enthusiasm with which every question - even from non-Trek owners such as myself - is answered - is what differentiates their approach to business as compared to the Firefox Stations which also carry Treks. I would not say they know everything about bikes (though the fundaes collected and worked upon has grown to a formidable volume over time) - but they're the most willing to learn quickly and even better, share widely.

Auto Service

Venkat Shyam's love for all things mechanical, especially bikes, and his never-say-die attitude when it comes to analyzing issues makes him a pleasant surprise in the otherwise murky two wheeler service space. Add to that his willingness to help anyone and everyone on the fora he's a member of, and his amazing innovativeness in running the service station be it customer friendly initiatives, employee benefits, or even helping out the parent brand with field level R&D, and to me he's a great case study for biz schools - how to think like a world class org even at a small family owned business level.

He's probably got more brand value than most big Auto Sales/Service chains in Bangalore or perhaps across India, and people have sometimes ridden down from Pune to get a decent job done :)

Rainwater Club

This is now part of Biome - which includes Chitra Vishwanath's efforts towards energy friendly, yet aesthetic architecture and construction.

I had interacted with Vishwanath about 6-7 years ago when we were considering inplementing RWH for our apartment complex. Recently have gotten to know more about him and the others who're part of this when my wife started working with the Rainwater Club. His determination to make a difference one little bit at a time, and the perseverance which has sustained the effort over years amazes me. Its not a not-for-profit venture, yet its focus is not profit. The impact, organizing the sector and its players, and defining a path for better water management is their agenda and given how critical water and energy management will become, its a great business to be in without being all "business-like" about it - if you know what I mean :)

GettOffUrAss

Santosh is more of a traveller and dreamer, but unlike the rest of us, has had the conviction and guts to follow up on these, and over the years, have seen him establish himself as a specialized, niche player in the travel space. He probably has more repeat customers (and even repeat non-customers like yours truly ;)) that most travel portals. He's also having lots of fun, probably making decent money and growing business while keeping it really really close to his vision of what it should be. I would be surprised if any large travel outfit can even come close. You need to be a traveller/biker/dreamer to get this far, and the average cometravelwithus.com just does not cut it! No VC, no IPO plans, no projections. Just does what he loves, and thats to get people off their asses and out there :)


MapUnity

Ashwin has a very very different approach to startups. While I will not claim to understand it, its probably not about VC funding in the classical sense, 10x returns and exit options. He's dared to create a very different model, build brand equity amongst the players that matter in the mapping space, learned how to work with governments and large organization without monetary transactions alone driving the relationship.



I cannot imagine how large orgs - an Oracle or a Reliance or an AirTel could ever hope to do anything like this. This is surely a beautiful form of entrepreneurship, and I hope to keep running into more of these examples. Keeps the enthusiasm going like little else. Their passion, their dive-into-it attitudes and their honesty is very refreshing. Its not unsurprising that bums and ass are part of the names of two of the businesses I've covered :) These guys are serious about what they do, but not everything is immediate RoI alone.

O perhaps their definition of "Returns" encompasses more than what shows up in the next quarter's balance sheets, and therein lies the "differentiator".

Edit : Some that I forgot to mention

Starc Audio

Rajesh Nair has a passion for music - and understands his valves and crossovers. Years ago, based on a reference, I'd prodded him to make me a home theater system from a scratch - and was very happy with the results. Rajesh has since embarked on a fantastic journey thats taken him to explore new heights of the high end audio market - stuff I cannot afford or even begin to understand, but for which there's a strong niche market of affinciados. Again, Rajesh has followed his dreams and lived them.

EasyLib

A lending library thats more than just that. They were small and fledgling when I first heard of them, and now are a business thats positively impacting the reading habits of many. They organize reading/storytelling sessions for kids too! No funding, projections etc, again.

BookMyShow Searches "Shortcut"

If you wanna just look for BookMyShow tickets - when you already know you want tickets - here's how:
http://www.zook.in/wap/search.jsp?query=bookmyshow+kuselan+bangalore
Then pick your show/theatre, and just hit "call".

Do let friends know about this - this is available across India - 30+ cities.

Zook Updates

Zook Updates Presentation:



We added BIAL bus routes - as a major one for Bangalore folks.

And, btw, the Zook blog is finally alive. Needs some polish, but its up for good, now.