The Entrepreneur Life

Tag: failure

Entrepreneurship is a Team Sport

As entrepreneurs it is easy to miss or even gloss over lessons that other entrepreneurs have learnt and more importantly shared! It is human nature I suspect to avoid or deny things that we don’t want to face! I suspect i won’t be th last one to have thought “Oh, I’d never do or feel that way” or “Not going to happen! These are different times or circumstances!”

Umang Gupta, founder of Gupta Technologies recently passed away. As someone who lived in the Bay Area through the mid-80s and 90s, I knew him as one of the many pioneering Indian-American entrepreneurs who paved the way for all the others who’ve followed.

His obituary in the Wall Street Journal recounted his journey as an entrepreneur and brought to fore many nuggets, one of which I resonated with me. It was advice given by my Umang’s father—much like my own did often.

Oracle considered acquiring Mr. Gupta’s company in 1994, but he couldn’t bear the idea of selling what he called his baby—a decision he later regretted. In 1996, he resigned as chief executive and left the company.

“My dad once told me, ‘No victory is final, and no defeat is fatal,’” he said. “I hadn’t paid attention.”

James r. hagerty wall street journal

Mr. Gupta went on to speak about the lessons he took away from this.

“I started to think of all the things I should have done to make the company outlast me,” he said.

One of his conclusions was that he should have hired people willing to challenge his ideas. “Decisions can’t be based just on what the founder knows or his gut feels,” he said.

This has been my experience too. Having good people around you, who can question or challenge you and hold you to account make all the difference between achievable success and avoidable failure!

Ask yourself who around you, whether a business partner, colleague, mentor or a spouse can hold you to account! Better and cultivate that ecosystem starting today!

3 Reasons Why Rejection Can Be Good For You

In 1988 just as I was about to finish up my Ph.D. and finally graduate, a good friend Murali arranged for me to interview with his group at Intel. My father, who was visiting, insisted on driving down with me to Santa Clara, as he was bored out of his mind hanging around my apartment. I dropped my dad at the Marriott, I think, around the corner and went on to my interview with Intel.

It did not go well.

I recall Murali’s boss asking me about how a PN junction works and being greatly offended mostly because I flubbed the answer. I don’t recall how the rest of the meeting went, safe to say not too well. In an ego-protecting move, my brain seems to have blanked it out completely. Needless to say, I never heard back from them.

It stops you from being complacent I realized that I’d just not prepared for my interview. I’m not sure what I’d thought – that I was a Berkeley grad or that I could answer anything on the fly. The interview that day made me face, how clueless and complacent I was.

It makes you better prepared It was not easy to admit to myself, the assumptions I’d made had made me complacent in the first place. Challenging the assumptions was a start but not sufficient. I realized being better prepared was the answer. Of course it took me more than one screw up, to learn this lesson and even today I find I could always be better prepared.

It leaves you open for better opportunities Little did I realize that flubbing the Intel interview was not a bad thing, for that’s how I ended up at National Semiconductor. Intel’s enormous success stemmed from their relentless and singular focus on what needed to be accomplished – this translated to new graduates often having to work on a reasonably narrow scope of things, for a good deal of time. That is not a bad thing! In fact, it’s a good thing to focus and go deep but just wasn’t my thing. Guess my inability to do one thing at a time is not a recent phenomenon.

At National, they just threw you at a problem, often a big one, and let you go at it – not pretty or efficient, but enormously educational. And if you were interested in something and prepared to put in the hours they were happy to hand it to you. Of course, this may explain their meanderings and lack of profitability the first five years I was there, but talk about learning on the job. Over the last 20 years, many of my successes and particularly my problem-solving expertise was built in those early years at National. They also spent a great deal on educating me on things that I felt then, as unrelated to my job role. This is something that I’m immensely grateful for, particularly to my managers and colleagues who guided me with great patience and fortitude.

Of course, if I’d paid attention in school and actually learned how a darn P-N junction worked, I might have learned just as much or even more at Intel, but I suspect given my own personality I wouldn’t have. So despite the disappointment, I felt that day driving back – with my father trying to assure me that he was sure I’d done well in the interview – it all turned out well.

And I’ve learned since then rejection need not be bad always.

As I’ve heard my wife say often to our daughters, when one door closes, God opens another. This has been my experience and I’m grateful for it.

Are you a failure if your startup fails?

Circuit City going out of business
Image by F33 via Flickr

“Son, businesses can succeed or fail. Because your business fails doesn’t mean you have failed!”

My father said this to me, one evening as the two of us sat down to discuss how the startup I headed was doing.

For a little over four years I had been running my startup. Months after we got started, the dot-com bubble peaked and burst. We had also chosen a technology, that everyone felt would not take off despite the initial hype. Our two nearest competitors where both American companies – one, also a startup, that had raised about 100 times more money than we had and the other a listed company with well over a 1000 customers. We’d over committed to the first three customers we’d acquired – miraculously in three different continents – and ultimately failed to deliver outright or were so late as to be not useful for the customers.

We had borrowed money from the bank (another of my father’s favorite piece of advice – debt is a good thing) and from family including my father. Just the previous year, we had to cut back on a rather ambitious – and poorly thought out – plan to design chips and keep our focus on software. We also had to let go nearly fifteen people, whom we’d hired in a burst, without much attention to culture fit, while persuading the people who remained to take 10-20% pay cuts with no commitments on when these cuts would be reversed.

This was also a time when I was commuting – spending two weeks every other six weeks in Bangalore, whilst my family lived in California. So between hotel rooms and my sister’s house, I spent many a night tossing and turning, worrying how we were going to make payroll that month and not sure if we’d ever turn the corner.

To add to the pressure, the senior staff, who’d been putting in 10-12 hours a day were buying first cars or homes incurring debt, getting married and now had spouses who now wondered what they really did. Once when we had to send a key engineer to a customer site overseas, we packed his new bride with him – so that they are not separated within weeks of their wedding! We’d had actually celebrated with a cake, when the company made its first million in revenue but ten minutes later had to dash off to dampen new fires.

This story did have a good ending. Despite ourselves we turned a small profit in year five and a real one in year six. We sharpened our business focus and were gaining traction.  Newer challenges emerged as pricing pressures drove deal sizes down, competitors were gobbled up by customers in some instances and the market adoption was slower than we anticipated, and the payroll bill continued to grow each year. Whilst my partners and our immensely committed employees along with some luck, brought us to a successful and profitable M&A conclusion, it was my father’s words that kept me going.

“Son, the failure of your company doesn’t mean you have failed.”

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