Blog of An Indian Entrepreneur

Recession Proof a Business - BUILD A BRAND THAT IS RELEVANT

In one of my earlier posts I had mentioned that recession has been good for us. Recession has indeed  helped us differentiate ourselves - its has helped us think and act differently and most importantly it has helped us gain valuable market share from our competitors.

The number of new tests we conducted in H1,09 was more than what we did in entire 2008. A lot of the tests were just focused on "how to break out from the industry clutter". After multiple iterations and infinite attempts to create relevant positioning, we finally, came up with a differentiating claim that "resonated with our target market". (Hmmmm.. and to think of it..MBA text books make positioning look soooo simple (-:).  Brand recognition - brand recall - sweet... and they translate into new business.

The interesting part is had we not tried and failed so many times, we may never have got here. I am glad that we never stopped trying. Try to look at it from your customer's point of view - sounds so simple - even, I thought as much. And I was so extremely wrong.

Only time will tell whether our attempts at building a brand are successful. However, its a start. And, maybe.. had it not been for recession.. we may not have got this "start".

- Udayan

Brand Sense in Action

I have been intrigued by the Martin Lindstrom's ideas first published in his path breaking book - BrandSense (http://books.google.com/books?id=ecfahP4jmrAC&dq=martin+lindstrom&printsec=frontcover&source=bl&ots=rhVSe-lLoz&sig=AKT2HcaQPsDUZA0CJnQ6DlJWvFg&hl=en&ei=3QChSo6fEYSItgfZz6n3Dw&sa=X&oi=book_result&ct=result&resnum=3#v=onepage&q=martin%20lindstrom&f=false) and then in Buy-o-logy.

Last week during a visit to the famed Hershey Park, http://www.hersheys.com/chocolateworld/chocolate_tour.shtml,  I had the opportunity to "experience" Martin's ideas, during the chocolate factory tour.

The chocolate factory tour puts visitors through an experience that appeals to all 5 senses. You can smell chocolates (at each stage), you can hear the sound of raw materials being added to the equipments, you can "obviously see" each stage and the free samples they distribute ensure that you "touch and taste" the chocolates.

Its understandably difficult for all businesses to appeal to all senses - especially service businesses. However, if service can be "productized" (sic), there is a good possibiility of appealing to at least 3 out of 5 senses. Disney does a great job of doing that.

I would recommend reading Buy-o-logy and Brand Sense to get a "sense" of where the branding world is going.

- Udayan

Talk Show Appearance, 22 July 2009

Today is an important date for me. I am scheduled to appear on a US talk show in about 7 hours from now.

Online Marketing with RSS Ray
Wednesdays at 1pm Eastern/10am Pacific
http://www.wsradio.com
Radio about Online Marketing

 

The details can be found here - http://www.rssray.com/blog/tag/udayan-bose/

 

The challenge is for me to combat the sore throat and cough I have been suffering from since I got back from India on Sunday. More than 10 doses of medicine and infinite number of gargling sessions have improved the condition a bit. I know its going to be yet another "mind battle" for me, today. I will give it my best shot, today and make the session relevant and useful for the audience.

 

- Udayan Bose

When Dreams come true

In 2005, operating from a two room office in India, I got to know of the Internet Retailer Conference - a large - first of its kind tradeshow exclusively for US online retailers. It was fascinating to read about the show, the participants and all the new exciting stuff in the online retail industry. For me .. sitting 12,000 miles away in Hyderabad.. this seemed like a different world. A world that seemed so distant and so impossible to get to.

When you are an entrepreneur you may not have clients or cash or resources... one thing that you definitely have is an ability to dream. No one can control your dreams. That's all yours. I also dared to dream. My dream was to one day become a speaker at the Internet Retailer Show. It was an audacious dream for someone whose firm had zero revenues, no US presence and very little cash (as I have mentioned in one of my earlier posts, we had at one time, approximately $5 in our corporate bank account) to survive on.

On 15th June 2009 (2 days back) I was lucky enough to fulfill my dream.

I spoke in front of an audience of 500+ online retailers and online advertising experts at the Internet Retailer show in Boston. It was a very important moment in my life. The presentation was well appreciated. More than 20 retailer attendees walked up to me and expressed their appreciation.The Director of Online Marketing of one very large retail firm mentioned that his only complain with my pesentation was that it was too short.

 Needless to mention, I was humbled.

As I write this post sitting in Amtrak from Boston to New Jersey, I can't help feeling nostalgic. I am so very thankful to God and my family, friends, team, clients and well wishers for helping me realize my dream.

I remember those days of desperately trying to build contacts in US through LinkedIn sitting in India, the endless number of 3am India time phone calls to US hoping to get new business or sales partners, the struggle to remain cheerful and positive even when nothing seemed to be working, being literally lifted and carried into the AA flight from Atlanta to Detroit in an unconscious state (I was in hospital for 15 days after reaching Ann Arbor - typhoid+pneumonia+severe sodium-potassium imbalance), mustering courage and cash to exhibit in 2006 edition of Internet Retailer, devoring any material that I could lay my hands on related to online retail and online advertising...

Yes, Dreams do come true. Life gives every person a fair chance to achieve his dreams. I believe this 100%. It is all about being patient and persistent, maintaining razor focus, working very very hard and believing in one's dreams.

- Udayan

Time zones

I am really bad with time zones. Embarrassingly bad. I need to blame my passion for some of the confusion.

For example, I grabbed my German friend, Jens Bargmann on Skype, today and wanted to show him the latest version of our product. Jens - forever the perfect gentleman, was silent for a bit and then said, "I need to spend some time with my family...". I checked the time - it was 9.45pm Germany time. Was I embarrassed.

A few days earlier I had messed up again. I called up my colleague Dominik and was wondering why he did not pick up the phone after 2 rings(as he normally does). Dominik picked up the phone and answered in a sleepy voice - "Udayan it is midnight, here.. anything urgent?" 

Its difficult. Especially as an entrepreneur you experience these surges of excitement and you need to share that with as many relevant people as possible. Time zones become secondary.

Jens and Dominik are both great friends. They know me and my crazy levels of optimism and excitement. They have been patient enough (-:

But all said and done.. time zones drive me nuts.

Cheers,

Udayan

Recession is Good

Recession has been good for us. In the first 4 months of this year, we have launched two new products, started the office in London and conducted 2 solid research studies in our industry, one of which was recommended and published by Center for Media Research.

We are able to buy advertising at 50% of the 2008 price. I would not be surprised if the relevant visibility that we have gained this year, in the first 4 months, is more than what we got in entire 2008 and 2007 put together. (Of course, had we not created a base in 2007 and 2008, we would never have got here in the first place).

Warren Buffet stated a simple rule: Be fearful when others are greedy, and be greedy when others are fearful.

We are just following the rule.

- Udayan Bose

A long time dream realized - Starting an office in London

Just got back to NJ after a wonderful trip to London, Frankfurt and Munich. Realized a long time dream of starting an office in London. Feels good. Feels .. AHA (-:

I can not help getting awed by how in Europe business talks take anywhere between 2% to 5% of total meeting time. Its all about relationships.

Despite the on-going economy horror stories, I could not see signs as prominent as I could in US. Maybe, I was there for a very short period of time.. too short to notice any major impact. Swine flu, though, had generated significant scare. People with masks were everywhere.

London on a bright and sunny day can be amazing. To top it all, I was lucky to get an accomodation in Novotel, Paddington. Delightful hotel and exceptional service. This was the first time ever that I was so happy staying in a hotel anywhere in the world that I left a thank you note for Novotel's hotel manager, Nicolas Lazarou.

Also, tried to "get a hang of" the underground(tube) network in London. I think I am fairly familiar already.

Can't help feeling nostalgic and proud.

Indeed, the sweetest thing about entrepreneurship is - "you are only restricted by your ambitions and vision". I am fortunate to be able to work with people from so many diverse cultures. American, English, German, Korean, Dane, Croatian and of course Indian. This undoubtedly has been one of the biggest gains for me from my entrepreneurial journey.

- Udayan

Plan B and Plan C

Its a funny situation to blog. But, still..

We are participating in a tradeshow in Phoenix from 23rd - 25th of Feb. We have invested more time preparing for this tradeshow than we have ever before.

Since, 18th Feb - this Monday, something "funny" started happening.

Our booth, marketing collaterals and giveaways (that I had carried myself from India) were "misplaced" by the shipment/logistics Company, Yellow Freight. After non-stop phone calls by our team to Yellow Freight, they were able to track one box (we had shipped two large boxes). The box that had the giveaways has been declared "lost" (at 7pm EST, Friday, Yellow Freight called us up to inform).

It was too late for us to get into a mega salvaging plan. Still, we worked non-stop on 19th and 20th on Plan B.

Its 6pm EST on Saturday, 21st Feb, and it seems our Plan B has gone for a toss, as well.

We are working on Plan C - however, it may be too late to execute..

The pre-show direct mailers that our printer - Alpha Graphics - was supposed to print and mail on 12th, never reached the prospects. My umpteen calls and email to their contact person did not get answered.

All the above lapses are 100% due to the trusted service providers who have served us well earlier. What is even more infuriating is the atrocious customer support - no one has a clue of whats going on.

Its both surprising as well as disturbing to see customer service levels plummet to un-imaginable levels. This is a relatively new phenoemon. We think it has to do with a relentlessly sliding economy. However, isn't it counter - intuitive? One would think the customer support levels should actually have improved in these difficult times.

Has the uncertainty about future driven people to this state? I hope not.

Paranoid people can never reverse the track of a free-falling economy.

- Udayan

2009 Resolution#1:Aggregating Knowledge

I am an avid reader of business books. New ideas, new concepts and applicability of the concepts entice me. About 20% of the business books I have read so far have been truly outstanding and very helpful. These include books like The Profit Zone, Execution, Crossing the Chasm, Made to Stick and theKnack. In any business book the key ideas can be summarized on a single page. I have not done that so far. But, intend to do so this year.At least for the most "thought provoking books". I also hope to be able to share the key learnings with the readers of this blog once a month.

Have a wonderful 2009!

- Udayan

PS: I am now reading a book that may well be in the top 20% - its called "The Back of the Napkin" by Dan Roam.. check it out.

GoodBye 2008! Welcome 2009!

We will open the book.  Its pages are blank.  We are going to put words on them ourselves.  The book is called Opportunity and its first chapter is New Year's Day.  ~Edith Lovejoy Pierce

2008 glides into history. It has been an epic year. Only time will tell whether 2008 has been the "landmark year" of our times.

2008 has been a historical year for many reasons - Obama's victory, Wall Street collapse, Mumbai Terror Attacks. To rate the events in terms of impact and importance would be "cheap".

2008 will stand out as the year when the world changed. There is a silent sociological change that is sweeping the globe. There have been multiple events that lack precedence. While election of Barack Obama was "the big change event" of the year. There were events that - according to me - were equally important. Important because they symbolized change.

The peace march in Mumbai post the terror attacks showed the determined face of India. The New India. The fact that the Indian of the Year 2008 is "the Unknown Soldier" (and Mr.Hemant Karkare was rated second) not a cricket player or a Bollywood artist is so extremely encouraging. Or the fact that the "socially underprivileged" stormed a temple that was "closed for them"- demanding equal rights. So refreshing. So different.

I have read commentaries by prominent global magazines on how Indian growth engine has been jolted because of western world's economic turmoils and then the terror attacks. I think all such commentaries are shortsighted. They are based on short term economic fluctuations (and needless to mention, any predictions on economic parameters in today's world will be flawed). 2008 showed the world, the face of the New Indian - a resilient - confident - progressive face that will build the New India.

Any change comes with its share of pain. And 2008 has been no different. (Many if not most people are happy that 2008 is finally over).However, I have no doubt in my mind that when we look back in time - we would realize that 2008 was the year when the world became a bit different or maybe a lot different.

Happy New Year to you and your families.

Udayan

One of the best books on entrepreneurship

Just finished reading The Knack by Norm Brodsky and Bo Burlingham.

http://800ceoread.com/products/?ISBN=9781591842217

I would rate this as one of the best if not "the best" for entrepreneurs.

You can relate easily to the cases mentioned in the book. Moreover, the lessons offered are very practical.

I had got so tired of books about "changing the world", the Knack came as a gust of fresh air. 

- Udayan Bose

The importance of steady progress

We will end this year with revenues approximately 80% higher than 2007. More importantly, we will have a profitable 2008. Our competitors focus on top line. Most if not all of them are in red..they have been in red since they started operations. While our revenue growth is lower than my expectations, the profits make me very happy. Understandably.

After having spent 4 exciting entrepreneurial years, I have acquired a certain set of funadmental beliefs ("fundas"). I must state that as has been the case over the past 4 years, some of these fundas may change with time. (Though, I suspect the core should stay unchanged).

Start Up Funda List#1 -

• A firm has to progress continually - if growth stops, the firm would perish (in 9 cases out of 10)
• Topline growth is important (and in our industry has been the key focus), however, profits are equally important if not more.
• Each business has a certain zone in terms of revenue and profits - its a very thin zone - but it is a zone that every entrepreneur should focus on and remain in. Needless to mention, the profit zone varies from industry to industry.
• Lean operating structure helps. Lean is not only a "recessionary fad" - it is here to stay for ever
• While listening to a pitch focus on content and don't get blown away by style
• Its key to understand the "gut of a business" (hat tip to Ram Charan for this)
• Every individual - I mean every individual, has immense potential.. she just needs an environment to realize the potential
• Long term and short term plans are worth spending time on (I must confess I tried to dispute this for long.. and gave up)
• Do not act in a "crooked way" or for short term gains. It does not work. You get trapped in your tricks and fall flat on your face
• Finally, Small is beautfiul. Stay small. You serve your customers better. You act more responsibly. You are more nimble and aggressive. You are just.. better in every way.Period.

More fundas in a later post...

- Udayan Bose

Anarchy

The Mumbai terrorist attacks - that are still on as I write this post - resemble a Bollywood potboiler.

80 have been killed and 250 injured (so far as reported by TOI).

The way the attacks have been (or, are being) conducted is audacious to say the least. The "I couldn't care less about law and order" attitude is concerning. I hate to sound judgmental but the current Government's spinelessness has been responsible for this. This is the seventh major attack in 2008 itself.

These are the other attacks that happened in 2008:

May 13, 2008: A series of six explosions tore through Jaipur, a popular tourist destination in the Rajasthan state in western India, killing 63 people and injuring more than 150.

July 25, 2008: Seven blasts in quick succession across the south Indian tech city of Bangalore killed one and injured more than 150 people.

July 26, 2008: Serial blasts in the western Indian city of Ahmedabad killed 45 people and injured more than 150. A group calling itself Indian Mujahideen claimed responsibility.

Sept. 13, 2008: Five bomb blasts in New Delhi's popular shopping centers left 21 people dead and more than 100 injured. The Indian Mujahideen claimed responsibility.

Sept. 27, 2008: A blast in a New Delhi flower market left one dead.

Oct. 30, 2008: Thirteen bomb blasts in India's northeastern state of Assam and three other towns left at least 61 people dead more than 300 injured

Unless we all take this seriously and take STRONG STEPS to curb terrorism such incidents will keep happening and innocent people will keep losing their lives.

Nothing is worse than a sense of helplessness which such incidents create. Ineffective governance in India is the sole reason for this.

- Udayan

Power of Dreaming

Entrepreneurship provides you with some AHA moments. These moments are immensely satisfying and energize you like nothing else can.

Yesterday, my Technology Team presented me one such AHA moment through the new version launch of our technology platform. I couldn't help thinking about the last 3 years of the journey. A concept that was on paper has become an immensely powerful product today that is beating the world leaders in our industry hands down. And the best part is the product was built from scratch by a small team of people who dared to dream big and live their dreams.

Indeed, Impossible is Nothing!

- Udayan Bose

Making a Difference- Block by Block

A few days back I read a nice article in Mckinsey Quarterly by Prof Tarun Khanna on Nurturing Entrepreneurship in Indian villages.

Here is the link (registration required):

http://www.mckinseyquarterly.com/Strategy/Globalization/Nurturing_entrepreneurship_in_Indias_villages_2237

I posted my comments on the article. Here is what I wrote -

The lack of homogeneity in wealth distribution in India is shocking. The world relates India with the glass towers in Gurgaon and Bangalore. What it does not see is the real India that lives in Indian villages.

In 2000 during my stint as the Sales Manager of a Large Indian CPG company I had an opportunity to visit the most remote villages in Orissa (one of India's poorest states). During a visit to the Kalahandi(Koraput) region (area rich in coal)an unusual site greeted me. I always knew that this was one of the poorest places in the world where laborers slaved in sub-human conditions for less than $1 per month income. The shocking part was, the number of Mercedes Cars I saw there on that day in 1999 was far greater than what one might expect to see even in the most affluent parts of New Delhi.

This article by Professor Khanna touches a pertinent issue and suggests a relevant potential solution. However, the magnitude of task on hand is unfathomably large. It calls for a combined effort from not only from large corporations but also small businesses. Just think,how powerful India would become if each business with an annual revenue in excess of Rupees one crore (~$200,000) were to support one entrepreneurial initiative in a small town or village.

I am suggesting a "mass entrepreneurial movement" at a level that has never ever happened in India. However, there would be numerous road blocks that would have to be surmounted. It also does not help that we as Indians are not the best team workers. There has to be a force or forces that keeps the movement united and focused. Media's role would be critical.I already see and know of localized examples of inspired work. It just needs to be amplified a million times.

There is hope. The Indian youth today is developing an increasing level of social consciousness. There is this willingness to "go beyond".

- Udayan Bose

The importance of "not panicking"

Tough economy continues to pose unique challenges. In normal conditions the challenges have a certain level of predictability. In today's scenario, predictability is non existent.

Its also quite an experience watching senior business executives in various businesses react. Understandably, different people have different "stress threshold". The real trouble starts when business veterans start "panicking". Its not easy not to panic when your revenues have gone down by 30% - your bank has cut your credit line - your account receivables position has spiralled out of control. An uncertain future and constant dosage of gloom and doom stories compound the restlessness.

Panic is bad because it has a domino effect. Attempts have to be made very consciously to look at the bigger picture (easier said than done). Data helps. Rational thinking helps. Smart Advisors help. Taking more time for critical decision making helps. In today's world, where businesses are so very interconnected and interdependent, any hasty action is bound to have a much larger impact than what one might expect.

Its important to control a situation before panic creeps in. Its easier said than done. However, its do-able. In prevailing economic conditions, all of us need to act and think differently and have to be responsible for not only our actions but also the "overall outcome of our action".

- Udayan Bose  

More Learnings

Our firm has been going through yet another interesting phase of evolution. Even during times when things keep changing at a furious pace, our vision keeps us on track and our values act as support blocks.

Its interesting to see how people respond when you "believe in them". Good people need challenges.I can't contain my excitement when I see how they stretch themselves thereby exceeding all expectations.

I have touched upon this earlier but still can't help emphasizing the importance of "respecting individuals". Each action - each decision - anything that we do has to adhere to this core value. Every person deserves respect - yes, every person. Just because the situation has prompted the individual to do something that you did not agree with, does not mean that the individual is "bad or wrong". That does not mean that the individual deserves any less respect.

Any decision needs to be based on three elements - a) facts b) context c) future impact/implications. Trusted advisors help in sound decision making. Different viewpoints - different angles always help. I am so very thankful that I have Professor Ramachandran of ISB  and Manas as advisors. Their contribution to our Company has been enormous (to say the least).

Happy Durga Puja and Dussehra to All!

Udayan