The Entrepreneur Life

Author: Sri Srikrishna (Page 16 of 22)

3 Steps to Improve Our Hiring Situation

now hiring drug free workplace (new berlin wis...“Can you please talk to my father? I had just finished explaining the offer of a full-time job we were extending to one of our contract engineers.

“Your father? Why?” I asked.

“That way I can honestly tell my friends, who want me to take another job, that my father insisted that I take this one.”

Despite the decade long boom, mini-busts and other bumps along the way, the Indian information technology job market and prospective employee behavior has remained as consistent and confounding as ever.

The recession helped managers find better candidates given the overall market slowdown. Now, the challenge of candidates who’ve accepted your offer actually showing up is likely to reappear. It almost seems as though we have a cultural inability to handle the simple matter of accepting a job or quitting one in a forthright manner.

A hundred years ago the nationalist poet Subramanya Bharati wrote of domestic help and the stories they’d make up for absenteeism: “It was the 12th day since my grandmother’s death” and “there was a scorpion in the rice bowl and it bit me with its teeth” were two of the more outrageous – some say creative – excuses.

Present day job seekers (and changers) have dwarfed Bharati’s imagination with their far greater range of reasons for quitting or not joining after negotiating — often hard — for a better deal.

“I want to work only on communication systems” (or Java or some other flavor of the month.) This from a boy who can barely spell his name. Or, “I plan to go to business or graduate school.” Those are among the most common (and rarely truthful) reasons I’ve heard.

Two of my perennial favorites, even when not true, resonate since they build on the cultural reality of the family’s still influential role in a candidate’s career decision.

“My (future) father-in-law wants to me to work for a multinational corporation” or
“My father wants me to join the family business.”

Of course, none of this can hold up a candle to the candidate who just plain disappears. Emails are not responded to, phone calls are not returned and old-fashioned registered mails are returned undelivered.

Talking with folks who work for us and with peers elsewhere helped identify a number of reasons for this behavior.

“I felt they’d pressure me and I wouldn’t be able to say no.”
Or, “I didn’t want to lie, which is why I didn’t return the calls.”
Or, “I had another offer and was just shopping.”
Or, “I was too embarrassed.”

A surprisingly large number of reasons seem to be about a prospective employer not losing face or potential dire consequences with their present employer. Which makes me wonder about our hiring practices!

As a reader of a previous column suggested, rather than merely wring our hands, here are three things I feel each of us can do to change this.

  • Talk about it with the folks you interview, with your employees and hiring managers in your company and with your peers in other companies. While all of us have moaned about it to others, moaning is not talking. Talking about it makes it easier for all to admit we have a problem and to begin discussing ways to solve it: through greater visibility for hiring managers and HR folks and greater comfort for prospective candidates or resigning staff.
    Having a simple script that emphasizes the need for honest and full disclosure and committing to your part of it, as an employer, is a great place to start.
  • Rope in colleges & recruiters The sooner we catch ’em the better. Sharing expectations and observed behavior with colleges and headhunters helps bring on board folks who have a stake in the outcome. They can influence the candidates a lot sooner. Much like interviewing or presentation skills, how to handle an offer or to decline one can be discussed with — if not taught to — job candidates who, all too often, rely on their peer group. In the Indian context, I’d extend it to building bridges with the families of your employees in a sensitive and non-patronizing manner.
  • Don’t contribute to it How often have you pressured a prospective employee to come on board right away? To buy out their notice period or even to renege on their commitments to a current employer or prospective alternate employers? Quit doing that and we’d have taken a small step towards a better – OK maybe not better — but more predictable and professional staffing scenario.

This article first appeared in the Wall Street Journal as My Father-in-Law Wants Me to Work for a MNC & Other Fables online.

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Entrepreneurship in India – Rules for Spectators – Part 5

Koothu - Chennai Sangamam

Image by Ravages via Flickr

Entrepreneurship 2.0

What should all of us who care about entrepreneurship and helping it thrive in the Indian milieu do? There are three simple steps I believe we can take.

  • Story telling Collect and disseminate stories of entrepreneurial success at every forum and opportunity. Blog about it, write it up in a newspaper, share it at meetings. Just as the story of Dhirubhai or Karsenbhai inspires, stories such as Girish’s or Balan’s can ignite others to follow them. We need more stories of success, small and big, to make entrepreneurial success a realizable dream for more Indians. Every time we read a story of someone who’s made it big, we better find and tell stories of five others who have made it small. Demand that our newspapers and magazines celebrate the little guy as much as they do the big guy.
  • Encourage During and just after the Kargil war, there was a spurt of public appreciation for soldiers and the men (and women) in uniform. Even today when I travel in the USA, I see strangers walk up to soldiers in uniform, in airports or shopping malls, and thank them for doing their job. When was the last time we did that with any entrepreneur or business owner? The gentleman who runs the tyre shop with its six employees may well be tomorrow’s Kishore Biyani with the right breaks. Ask how their business is doing, listen to their story and appreciate them openly and explicitly.
  • Educate Each of us has skills that if we share with entrepreneurs will help them get ahead. It could be teaching them how to raise capital, hire senior staff, make better presentations, manage their cash flow or land major accounts. This education is best accomplished by doing. “Show – not tell!” as good writing coaches say. We can do this even by creating forums for bringing entrepreneurs together. Just by sharing each others experiences they can learn from one another and most importantly gain the insight that they are not alone.

Now as three of us embark on our latest entrepreneurial journey at Zebu, we are once again those little guys starting out (though not in a garage but in a small house). I know we could certainly use all the encouragement, education and story telling to stay the course.

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Entrepreneurship in India – Rules for Spectators – Part 4

LOS ANGELES, CA - JULY 24:  A 'Drive Thru, Ope...

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Rubber meets the road

In early 2004, in its fifth year, our first startup broke even. I recall us making plans to finally buy decent ergonomic chairs for our committed and long-suffering employees. The demands of growth and the challenges of cash flow made sure we never got those new chairs. Yet with more clients, more visitors and greater travel by our staff, we ended up hiring a car and driver on a monthly basis. The same people who’d send us a cab for the airport trips now sent a car and driver who’d be at our disposal all the time, for a flat monthly fee.

Balan* was the driver and in my first trip to the airport I learnt that he owned the car we were in, and he was a sub-contractor to our regular rental car supplier. Over the next two car rides, I picked up his story – high school drop out, set out driving an auto (that he’d rent on a daily basis), then worked as a driver in a company, before saving enough money to buy his first Indica. Now he owned two cars, drove one himself and had another driver on his payroll. He sub-contracted for a number of folks who had small fleets and one day hoped to build up his own fleet.

Last week I got a call from Balan. He was calling to introduce his nephew, who’d just graduated from college. Balan’s fleet has grown from the two Indicas to two eight cars now. Despite the recession his business had thrived and he’s effusive in expressing his gratitude for us giving him a leg up with our steady business. At a time when even basic services such as barber shops and restaurants were seeing customers cut back on their spending, that fact his business had grown is testament to his drive and what Ram Charan terms “business acumen.”

The town and the gown

Once we sold our first startup in early 2006, I have had the time and opportunity to consult for friends and several clients to help with their businesses. These have all been college-educated, entrepreneurs – ranging from manufacturing (electrical gear), distribution (music to mobile phones in Class B towns), software products to training services. In many instances, Prasad the barber, Girish the restaurateur and Balan the fleet owner, have a far clearer sense of where their businesses stood, who their clients were and where they made their margins. And these were the folks without the college (or even high school) degrees. Yet both groups of entrepreneurs are successful and struggling with common questions – from the strategic, “How do I grow my business?” “Should I grow my business?” “How do I raise capital?” “Should I take on debt or do I dilute equity?” – to the tactical decision making on hiring, pricing, marketing and promotion.

Academicians who study entrepreneurship make the distinction between voluntary (those who make a choice) entrepreneurs and those that fall into entrepreneurship, without a choice. Most entrepreneurs that get formal funding or the media mostly talks about belong to the former voluntary group while folks who go into their family businesses or traders and micro-entrepreneurs fall into the latter, involuntary group.

Yet both these groups have far more in common, particularly when it comes to problems they face and mistakes they make. Much like parenting, most entrepreneurship involves learning on the job. While reading up about parenting (particularly in my case about adolescent behavior) will help, it only takes us so far. Grand-parents (for people) and consultants (for businesses) help speed up the learning and avoid the most egregious mistakes, but nothing can replace the learning that experience brings. Yet the journey to achieve such experience need not be as stressful and lonely as it sometimes seems.

 

Entrepreneurship in India – Rules for Spectators – Part 3*

Image via Wikipedia

Watching the numbers, one dish at a time

Ramani, my neighbor is himself a first generation entrepreneur. Though formally trained as a chemical engineer he has built a successful electrical business, initially in trading and subsequently in panel manufacturing. An active member of the morning walking group at the local park, he has roped me in as well to bundle up even on cold Bangalore mornings to put in our six or so rounds. The talk inevitably turns to our businesses and the challenges we face and many a days we lose count of both the rounds we’ve made and time that hurries by. I met Girish (name changed) at one of these morning walks.

A diminutive man, who’s rapid walking pace merely hints at the energy packed in him, Girish came to Bangalore less than 20 years ago. Hoping to be the first person to make it to college in his family, he started on his pre-university course. His father and numerous younger brothers meanwhile were attempting to make a go of the family farm in their village. However, the family soon faced mounting debts and struggled to make ends meet. Girish abandoned his college dreams and returned to take care of the family farm. After several years of being a farmer, Girish found himself running very hard to stay in the same place. The little money they managed to eke out of farming went wholly to service the interest costs of the family’s debt. The principal they owed was untouched. Girish made the bold decision to head back to the city, and figure a way to make his fortune there.

Through a family friend, he got his first job, in a darshini – a fast-food restaurant. Paying a princely sum of Rs. 700 a month, the job required him to stand by the kitchen door, and note down every menu item that left the kitchen through out the day. At the close of business, his numbers had to be reconciled with the receipts at the cash counter. The very first month, the (absentee) owners of the restaurant saw so much savings, that they gave Girish a more than 25% raise to Rs. 900. Within six months Girish became the manager of the darshini, with yet another pay raise. The bulk of Girish’s monthly income was sent home to retire the family’s debt. Through family friends, a marriage proposal came and Girish soon was a married man.

A couple of years of running a restaurant 7 days a week, awakened him to the potential of the business. He approached the owners, who’d pretty much ceded the day-to-day operations of the business to him, with a proposal to expand their single outlet to a chain of fast-food restaurants and a small equity stake for himself. The owners were conservative and a little aghast that this 20-something wanted equity in the business and turned him down. Whilst disappointed, Girish did not give up on his dream and decided to strike out on his own. His father-in-law was prepared to provide him some seed money to get started. So Girish, in his own words, “I sought the permission and blessing of my employers” to set up his own restaurant and never looked back.

When I met Girish on that morning walk, he was handing out laddoos from Tirupathi. His son had just been admitted to engineering school and he wanted to share the good news with his walking friends. His first food outlet had grown into a chain of five restaurants. Starting with his second restaurant, he had taken a (different) partner for each new restaurant – these partners being nephews and other young relatives of his father-in-law who were getting started with their lives. Making them his partners, Girish had groomed a whole new set of entrepreneurs. This was his way to repay his father-in-law’s initial support and faith bestowed in him. He had not only paid off the family debt, but personally paid for the restoration of the village’s dilapidated temple – the prasad from which he was sharing with the Tirupathi laddoos.

Ramani, my friend, piped in as Girish completed his story, “Sri’s a food aficionado. He’s been talking about maybe starting a restaurant.” “You’ve got to watch the numbers, at two places – when you procure your supplies and at the billing counter. That’s all there’s to running a successful restaurant. Happy to talk to you anytime,” was Girish’s immediate response.

Girish’s entrepreneurial story, if seen in a movie or a TV show would seem too good to be true. It might even be dismissed as typical Bollywood fare (without the gyrating damsels, alas). Yet it is, I suspect, representative of a large number of unheralded Indian entrepreneurs.

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Entrepreneurship in India – Rules for Spectators – Part 2*

Lessons from a close shave
In 1996, when I first returned to India, Ramani, my neighbor and friend, took me to the local barber. Harking back to the barber shops of my childhood, it was two barber chairs in a room the size of large shower stall. Prasad (all names changed to protect the privacy of individuals) the owner of the barber shop seemed barely in his twenties and full of life and great enthusiasm for the task at hand. He greeted my friend in Kannada, even as he cropped a customer’s hair, acknowledged me with a quick nod and kept a close eye on the other barber. My positive impressions of that first day were not only borne out but grew stronger, as over the years Prasad bought out the neighboring space and expanded his barber shop. Now renamed as Classic Hair Saloon (CHS), he added head massages first, then facials and subsequently full body massages, in an expanded back room.

Three years after my first visit to the CHS, several friends and I embarked on our own first startup, Impulsesoft. I relocated overseas as we set out to grow our business and in my frequent trips to India, I’d always make it a point to bring my hair cutting business to Prasad and the CHS. The half hour or thereabouts I’d spend on a padded chair having a luxurious shave or an oil-soaked head massage proved to be my own personal MBA class.

In 2000, our chosen market (Bluetooth technology) sputtered in the downturn and well funded competitors threatened to swamp us. Yet as I saw Prasad thrive in a market with nary an entry barrier, hiring more seats and hands, I learned the criticality of customer focus and personalized service. Subsequently when we set out to raise money, capital had dried up as the market seemed stillborn or delayed in 2002. Again the lessons of repeat customers, word-of-mouth referrals and growing existing customers by up-selling (cut to shave; a shave to coloring; to head massage) were apparent in Prasad’s growing business. And whenever we despaired that hiring, training, retaining and motivating software engineers was hard, Prasad’s challenges in ensuring service quality, even as he brought on more barbers, often with few other formal skills, made our own look small.

Even as I write this, the CHS has held its own against newer competitors (including a fancy upscale national chain and another barber shop that sprang up in the neighborhood) and has continued to grow. Prasad has demonstrated bootstrapping success, growth through hard times and sustained product and service innovation. He has built a strong and passionate customer base and seen good financial returns. In other words his business is an immense success by most measures, even though it has yet to figure in any mainstream story or have its own case study.

Indian Standard Time Warp

NYC: Dali at Time Warner Center - Nobility of Time

NYC: Dali at Time Warner Center – Nobility of Time (Photo credit: wallyg)

“I’ve already spent more time on this than this deal is worth to me.”

That’s what a prospective business partner said to me, complaining about the 45 minutes we had spent in a meeting together.

I was taken aback. I had just flown most of the previous 20 hours (from Bangalore to Chennai to Frankfurt then onward to Stockholm before taking my final transfer to get to Gothenburg, Sweden) to get to the meeting.

I had merely asked him to help me understand why I should pay $100,000 to represent his company in India (but that’s another story). While I did manage to keep my cool that day, it brought home to me how direct people can be in a business setting.

Having worked most of my adult life in the U.S. – most of that in California’s laid back Silicon Valley – I was used to plain speaking. However in the year I had been back in India before the Gothenburg trip, I had clearly lost the habit of being direct. I had acquired a more fluid sense of both time and speech.

The move to India opened my eyes to the way things are done in the Valley, sort of like watching an unflattering video of myself at a stag party.

While working in San Jose, I had never quite noticed how rude we were when we failed to return voice mails or in moved meetings at the last minute, even when people had flown in from overseas to attend them.

This was in stark contrast to Japan where a great deal of my business was coming from in the first years back in India. In my first business meeting in Japan, two managers from a $40 billion firm spent two hours with me (the marketing guy from a $5 million dollar Indian company) to understand why we were charging “so much more” than the competition.

Of course, many people have apocryphal stories of negotiating in Japan or China where indirection and opacity seem the norm. In one, two-day session I found out only at dinner that the guy that seemed to spend most his time taking pictures was actually the key decision maker and the two people we hadn’t been introduced to were competitors

India, in many ways, straddles these two very different business cultures. The almost unquestioning acceptance of seniority, the acute awareness of hierarchy and near-obsession with not losing face that Japanese businesses are known for can be found in Indian companies as well.

Still, the Japanese put much more importance on time schedules. In India you could never imagine a client instructing you to take the 7:52 express train to the transfer station where the client would join you at 8:24 to reach their office at 8:50 – the requisite ten minutes before your 9:00 a.m. meeting. I regularly get detailed directions like this from our Japanese clients.

In India “Let’s meet at 11” is generally a suggestion. It means “We should connect around that time and it’s likely that I’ll call you at 10:45 to tell you I am stuck in traffic and will be late by 30 minutes or more.”

This has been the biggest lesson for me about doing business in India. Time and communication (and even space if you try to drive here) take on a sponge-like quality here.

In my unending naiveté, I initially believed that the inability to stick to schedules was the fault of the sales and marketing folks or overburdened C-level executives. That illusion didn’t last long. I started to understand what really happens after sitting through a weekly customer call with my engineering team.

“How can the deliverable slip by a month when we were on schedule last week?” the customer asked. I could visualize the apoplectic look on the client’s face even without a webcam.

Our engineers, I found out, were well aware of the delay that was accumulating daily but had redoubled their efforts to crack the problem on time. They had been confident they’d solve the problem and recover the lost month and wanted to avoid causing anxiety to the poor client.

The most positive way I have found to look at this delivery dilemma is to figure we Indians are eternally optimistic. We are optimistic to a fault. We are certain that we will clutch victory from the jaws of defeat much like a Bollywood hero gets his girl at the end of the movie, just as the police drag away the dastardly villain. When we say the report will be done this evening or we’ll get there in 15 minutes, we believe it – the laws of physics be damned!

As with all understanding about India, there may be exceptions. You might meet an ex-military type or maybe a Bengali or Tamil gentleman who will confound you by always being on time. Worse still, they might expect you to be on time like the Japanese or direct and brash like the Valley types.

Fortunately India is so vast that such encounters are likely to be rare.

This article first appeared in the Wall Street Journal’s India Journal

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Entrepreneurship in India – Rules for Spectators – Part 1*

man_in_fence“If a tree falls in a forest and no one is around to hear it, does it make a sound?” is a riddle philosophers have posed to question reality and its relationship to observation. Much of the entrepreneurship in India is like trees falling (or growing) silently in an unobserved forest. The media rarely notices it and the public is hardly aware that its happening. Does this mean it is not happening?

The casual reader of the business pages could be forgiven if they reckoned that entrepreneurship in India happened only with technology or more recently Internet startups, often venture funded. Coverage outside the technology domain focuses on the hyper-successful and all to often on personalities. The stories of Dhirubhai Ambani, and his humble start in Aden, Karsenbhai Patel’s Nirma taking on the entrenched multinationals and more recently Kishore Biyani and his Future Group’s rise in retail have captivated the media and readers’ imaginations.

In many ways, the recent appointment of Infosys founder, Nandan Nilekani, as the Chairman of the Unique Identification Authority of India (UIDAI) marked a milestone in Indian entrepreneurship. In his own words [Infosys] “… was not a family-owned company. It was not a multinational. It was not a state-owned company. …It’s become a metaphor. If they can come from nowhere and create a world-class organization, then anyone can do it.” The grant of a Cabinet level post to someone who has cut his teeth as an entrepreneur and a professional manager is the most visible sign of mainstream acceptance of entrepreneurs.

Entrepreneurship in new light

However as we have learnt, having a woman prime minister or now a woman president, symbolic as it is, does not automatically solve all the issues plaguing Indian women. So too this recent interest and boosterism for all things entrepreneurial, while welcome, is merely a start. Even today, traders who likely constitute the lion’s share of Indian entrepreneurs are referred to in pejorative terms. Unlike the titans of technology or rajahs of retail, whom we read about on page 3, all of us encounter traders on a daily basis, but rarely recognize them as entrepreneurs. So there is much each of us as individuals, organizations and as a nation can do to encourage, nourish and grow the flame of entrepreneurship. This article is a small step in that direction.

Ram Charan, author and renowned management consultant, frequently points to his family’s shoe shop and to street vendors in India and elsewhere, and the lessons businesses can draw from them. Without romanticizing either the giant multi-billion dollar corporations he consults for, or the fruit seller on the street, he is able to highlight the commonalities that underpin businesses. It is such a balanced view of entrepreneurship – whether small or large, tech or non-tech, urban or rural – that we all need to develop to build an ever stronger ecosystem that will foster Indian entrepreneurship and innovation. The two books, “Stay Hungry, Stay Foolish,” published by the IIM Ahmedabad and “Inspiring Women to Start Innovative Enterprises” by the NSRCEL at IIM Bangalore, are a great start. Whilst still about college-educated entrepreneurs, both books highlight a wide variety of entrepreneurs across various stages of the business cycle. Without focusing solely on the large or “successful” but by including several still-at-an-early-stage businesses, they are a step in the right direction.

In this article I will share a few common but untold stories of entrepreneurial journey, along with my own experience as a first generation entrepreneur. Drawing on these and others’ experiences, I will stake a position on how we can influence the perception, coverage and the course of entrepreneurship in our own communities.

*The fine folks at Indira Institute of Management approached me to write an article for their quarterly magazine Tapasya. This article first appeared in the Summer 2009 issue of Tapasya.

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Founders – Tinker, Tailor, Soldier, Spy (hat tip to le Carré)

the roles we play
Image by Auberon via Flickr

This evening I came across Richard Luck’s post on “5 Things I Wish Someone Had Told Me (about starting a company)” and it triggered thoughts about stuff I wish folks had told me about. Two things that popped up immediately in my head were, about the unstated emotions that surround the phrase founder and the matter of laying people off. In this post, I will confine myself to talk about founders and issues surrounding them and save the cheery matter of having to handle layoffs in your start-up for a future post.

My first thoughts were captured in an earlier post “Do I want to be a founder?

Who’d have thought a simple word, such as founder, could be such a loaded word? Having founded two companies, been part of at least two other early-stage tech firms, and now as an advisor to several startups, I see this is an important matter to address head-on. Prior to my arriving in India, my rather simple view of the founder was a person who was there on day 1 or before day n. In an Indian context, this word has been imbued with so much more context, that it took me a while to recognize that they are there and to deconvolute them. I suspect, even at the end of this piece, there may be a few loose threads which I hope we can wrap up in discussions and comments.

Out of all of the stumbling, fumbling and plain screwing up that I have done, I have come to put down these four points to discuss with folks who join me in business or I see going into business. Rather than achieving alignment, I find that just raising these itself, is sufficient for people to get that “Oh!” expression and think about it some more.

These include their role as a

  • founder – a very influential role in vision and culture, with a huge emotional component, but little legal significance beyond what the other roles provide
  • shareholder as someone who holds a reasonable stake in the company. While usually, founders hold significant shares, others too may be large shareholders
  • board member legally recognized role as a member of the board of directors;  may include executive officers and usually not all founders are members of the board, 
  • operational or day-to-day functional roles as engineering or marketing heads or lead technology person or CEO – the job you are expected to play as a key team member of the startup. These may include founders and will usually be shareholders (or option)

Founder – anyone who joins the company prior to its formation or on its 1st day. This definition is the cleanest that I have found. However all too often, startups—certainly any that I have been involved in—tend to take a while to figure out what they are about. In this phase, which usually is some finite and arbitrary time frame, maybe three or six months, you end up bringing on board others who fill out the founding team. Hence these folks become (co-)founders. If that is all there was to it, I’d have wasted your time reading this far.

Being a founder, brings largely psychic benefits for the foreseeable future, a lot of real expectations (from other founders) and a whole lot of sacrifices when things don’t go well. Sure as a founder, if you own a significant stake in the business you stand to gain a whole lot when the business succeeds but that always seems so far away, that it is better to expect and settle for the psychic benefits. The media in India always like it if you are the founder and happen to be a C-level executive or the tech genius. If, like in many US startups, you are a principal engineer, despite being a founder, not a lot of media people want to talk to you.

Share-holder Prior to being in a startup I had never given this any thought. The Chairman of my previous startup used to often say “We leave our shareholding at home when we come into work,” and I think we all actually believed it. But then again this is easier said than done. I have seen founders and even those amongst the first 10 employees, who owned non-trivial amounts of company stock and were largely in senior individual contributor roles handle this very differently. The extremes, even in my limited experience ranged from the role of a deeply committed statesman to less-than-subtle mini-Carl Icahn in the making.

Board Member or Director – When there are multiple founders, who get to be on the board, what are people’s titles and functional roles become points of heartburn if not stated, discussed and handled up front. Of course, neither the government nor statutory bodies recognize anything called founder, they want to know and care about board members or (founder-) directors (as they are called in the UK or India).

Unlike a founder, a company director, is a recognized statutory role (with its legal repercussions) and often one or all of the founders may start as directors in the company (board). This will change as angels or others invest in the company and take board seats on. Contracts and other legal obligations of the company will be taken on by directors.

To compound matters, the Valley nomenclature has percolated into Indian tech firms so one can be a Director of Engineering or Marketing, and this has nothing to do with being a director in the company. The media seem to prefer talking to the latter and rarely to the former. Which brings us to the matter of functional roles.

Functional roles Startups, particularly ones that survive and thrive grow faster than the founders will necessarily grow. This means a founder who started as Director of Engineering, may end up being program manager or business development manager, whilst someone who has actually managed a 200 person engineering team may come on board as the VP or Director of Engineering. Only one or two of the founders may remain on the management team of the growing company, whilst other will have individual roles or functional manager roles. This whilst easily stated may not be palatable to all founders, who may only then realize they had different dreams or desires.

If all founders were aware of these four distinct roles that they can play, it would help matters a whole lot. If their identities and egos are excessively tied to their titles and functional roles, the decisions they make may not always serve the company, and therefore their own self-interest well.

Business is a whole lot more fun when done with others, especially with a good, strong founding team. The funny thing is that in the heady days when you start, all this seems so academic, distant and meaningless. And it matters little when you are cash-strapped, busting your rear to get the product out the door, finding customers and trying to keep your head above the water. But if you don’t think and more importantly talk and align with these roles and our own expectations, in those early days, this can at the very least cause some major heartache and at the worst cause things to implode, when you actually have a real business, money in the bank and prospective investors or buyers looming.

Share with me your own experiences as a founder or as a witness or participant in founder feuds!

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Do I want to be a founder?

#1 dad

Image by laurenfarmer via Flickr

“We’d like you to come on board as a founder.” After the first few seconds of excitement and dare I say, exhilaration, reality sets in. “Can you explain to me what being a founder means?” Does being a founder mean, like a parent, being present when conceived? And will it seem much like a parent, largely thankless, picking up things behind your offspring and acting as a source of funding for them? Sure you feel good about that first finger-painting up on the refrigerator, or the #1 Dad doodad on your office wall. But when you are up mopping their vomit or worse and staying up all night hoping the fever will subside is it worth the trouble?

My answer is a resounding yes!

And its always better to found a company with others than by yourself. With that said, it’s worth keeping in mind, your co-founders are likely where you will get grief when you least expect it. In almost every startup I have been part of, founders falling by the wayside has been a feature. Before you conclude the problem was me, I am in good company. When Paul Graham spoke at the recent Startup School 09 – he pointed that all the entrepreneurs he spoke to felt picking the right (or rather not picking the wrong) co-founder was the most important lesson they learned.

The toughest lessons I learnt about co-founders, was there can be so many unstated expectations, particularly when it comes to issues around your own evolving roles. Founder, partner, core team member, executive management – words that initially are used interchangeably and seem just so many words. Yet they have so many different meanings and nuances, as I learnt the hard way. Having been a part of five start ups, two as founder and three as early-to-late senior staff or management member, I have been at all ends of this expectation spectrum.

I’ve loved being a founder and will share the ways I have found to deal with the finding, keeping and savouring co-founders in my upcoming post. Share with me your experience with being a founder, what it meant to you and why you would or wouldn’t do it again!

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3 Rules to Keep Your Sanity in Social Media

“It seems like there is always another social network to join or another tool I’m supposed to learn. How can I keep up?”

You can’t, asserts Alexandra Samuel, CEO of Social Signal in her Harvard Business blog.

SM Marketing Madness @HubSpotImage by HubSpot via Flickr

Like all cliches, the assertion that the blogosphere is one giant echo chamber, has a good deal of truth to it. To newcomers, it appears there are the few and exalted stars of the blogosphere, and a vast ocean of unwashed unread masses, that is the rest of the us bloggers. Unlike in Mumbai or Hollywood, it doesn’t seem you can work your way up, being a waiter, then an extra, minor part player and eventually get that big break to become a star. Or then again, even without the casting couch, maybe building a social media brand is not that different from a movie career. A lot of hard work, some teeth gnashing, a great deal more of prayer,and a dash of luck to achieve your dreams goals.

So let’s learn from the folks who’ve gone before us. Having done a fair amount of stumbling myself, here are the insights I have gained, to keep my sanity in social media. And there’s a benefit to taking the long term view as Marc Meyer reminds us.

the summary

  • focus – pick a few sites to make your presence felt and stick with ’em. Use a tool such as Posterous or Tumblr to be able to write once & publish wide
  • specialize – be something very specific, even if it is to very few people. you are more likely to stand out and enjoy doing this in the long run. Others will find you.
  • community – better to have a few highly interactive friends than vast hordes of “ships that pass by the night”. Participate, give and weed periodically.

Focus We all have only so many hours in a day, that we can devote to any one thing. It is therefore critical to focus on a few – be it blogs you track/read (how many of us have more than 1000 unread posts in our feedreaders?), people you follow on Twitter, social media sites you will be on. If you had to pick only one, I’d choose Posterous or Tumblr – as these are simple ways to set up a your blog, even via email and get things sent out to all the other locations you’d like to be seen in. Sure focusing could mean that some times you are going to pick a Hi5 or a MySpace but find the world’s moved on to a FaceBook – you can move then. And using a tool such as FriendFeed or a Twitter client such as TweetDeck or Seesmic

Specialize Don’t try to be everything to everyone. Even when you think you are specialized, you can probably specialize further. Don’t be another parent blogger or Adobe Air specialist, dive deeper – be a father of pre-teens, or focus on UX on Air alone. It will be scary and will at times seem that you have gone too far. You can always step back, but focus on being yourself and bringing things of value to your reader. While Copyblogger.com and Lifehacker.com seem to have built broad based properties, that is not the place to start IMO, given where the world is in 2009.

Community The raison d’etre of social media is to build a community of interested, if not like-minded, individuals – a whole which is greater than the sum of its parts. This implies two-way and many-to-many conversations. The secret to building such a community is to give of yourself first, commenting, re-tweeting, meeting in person and virtually. All best done with small groups first. So focus on building a high degree of interaction, one of high quality rather than quantity. If you view your community as a garden, weeding it is just as important as seeding and watering it.

Focus, specialization and giving to the community will act as a virtuous cycle, if done right.

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