Why should we start own business?

Mahendran felt there were three reasons he had to start his business right away. “Firstly, once we had the concept in place, it was important to be the first ones to get there,” he says. Secondly, he feels that the time to set up a business, especially in a city like Mumbai, has never been better. “The environment that we’re in right now is very conducive to start-ups, and definitely better than what it used to be, say, two years ago, when the economy was better.”

Speaking about the monthly meetings organised by local start-up incubators, he says, “You get to meet others like you — those who not only have ideas but are in the same boat as you, looking for resources and capital.”
He feels that this climate is optimistic for first-time entrepreneurs. “These so-called angel investors aren’t anything one would expect them to be,” he says. “Most of them are first- or second-generation entrepreneurs themselves. They are in sync with the times and are always looking for good ideas.”

“For people who’re starting a venture out of passion, it doesn’t matter whether times are good or bad. Some of the greatest businesses in history were started in tough times. The real challenge in starting a business is to have the tenacity to overcome all the obstacles one faces in the beginning. If you’re passionate about music, for example, you will be more motivated to get help, spend more time and deliver a quality product. With smartphones and internet penetration on the rise in India, it makes sense to reach out to consumers through the internet or mobile apps.”

SAMEER GUGLANI, co-founder of The Morpheus, a start-up accelerator

Starting a business in tough financial times has been a challenge, but also a blessing. “With Ok Listen, I’ve been frugal without compromising on anything, from website design to logistics,” he says. “An economic slowdown forces you to think about investing smartly and bartering deals instead of blindly throwing money at everything.”
For example, the website was developed by a software company

Basrur has worked with previously, who agreed to a 60-day window for payment.
The operating costs for OkListen.com aren’t very high, which is helpful in these times. “A year from now, even if the business doesn’t grow as much as I think it will, I might have to take up something else to maintain my income,” says Basrur. “But hopefully, I would’ve created a platform that’s sustainable in the long run.”

When asked why they chose to launch a business even though the economy has slowed down, DaCosta shrugs and says, “Well, what goes down will eventually go up. We have a three-year plan in place.” Two months in, the band, all of whose members are capable of doubling as producers, already have a steady stream of work: they’re producing two indie albums as well as a few ad jingles every now and then.

DaCosta says that Cotton Press Studios is a calculated risk, in the sense that it is being borne by all six band members. He is quick to add, though, that they have been careful not to overthink this. “Hey, if risk were a factor, we wouldn’t have been musicians,” he says, with a laugh.

A growing ecosystem of inspiration and practical support is driving greater numbers of individuals to follow the path of social entrepreneurship. Today there are numerous success stories and channels for people to learn about it. In some ways the economic downturn may even have supported this migration as job cuts in the corporate sector are forcing graduates to look at alternative opportunities and the opportunity cost of leaving such jobs is lower than it has been for many years. As competition increases in traditional sectors the creation of services and products for under-served communities also has greater commercial appeal. Funders are always looking for great ideas and the cycle should not be a deterrent to investment. —TEJ DHAMI , incubation director, UnLtd India, an incubator for social entrepreneurs

Launching a start-up in the midst of a global economic downturn, says Nayak, was an “entrepreneur’s leap of faith”. The couple started with R5 lakh of their own savings because investors were not willing to take risks with fresh start-ups. It took them eight months to finally find an investor and mentor in Freemont Partners, a Mumbaibased start-up accelerator.

The company also had trouble hiring experienced and talented employees during a recession. “Most people want to stick to the jobs they had,” says Nayak, who believes there is never really a “good” time to start a business. “I am selling a product that people need. When the going is good, everyone jumps in, but when it is bad, only the fearless tread.”

The slowdown was not at the top of Kothari’s mind when he began No Nasties, because he was not looking for investors. “I was conscious that getting external funding could reduce the premise of the company to generating profits. I wanted to start small, and I have a triple bottomline ethic, of people, planet and profits,” he says.

But the combined effects of the economic downturn and rising inflation in India, he believes, has led to a slump in the retail sector. “People have become price-conscious and are holding their purse strings tight. But I decided to go ahead with No Nasties because people still need to buy clothes,” says Kothari.

Before quitting his corporate job, Parrikh did not feel the pinch of the global economic downturn. He didn’t look at the market when he invested his money in TracksGiving, which, he felt, offers companies an opportunity to reduce costs during the slowdown. “My model helps companies achieve their goals by cutting costs, because it combines their marketing and CSR budgets,” says Parrikh.

Bad times also present opportunities to hire great talent and build teams. As an investor, I believe that pockets of opportunities appear whenever there is disruption. We are going through an economic downturn, and this is reflected in how families are trying to cope with inflation. Despite this, many middle-class Indians are becoming more and more brand-conscious. They are thinking more in terms of the value of a product or service than its cost. In a nuclear, double-income family, parents don’t mind spending on a book-reading service. Time-strapped women in corporate jobs would happily spend on a convenient pizza-delivery-like doorstep beauty service.

—ANAND LUNIA ,
founder of India Quotient, an early-stage funding firm

The decision to give up a substantial monthly salary in an economic downturn amid rising inflation wasn’t easy. “I spent at least two months studying the beauty industry,” she said. “I could see working women, young mothers and pregnant women paying freelance beauticians for home services, so I sensed there was definitely a big market and a great business opportunity in organising this unorganised sector.”

Realising that inflation might make grooming less of a priority in people’s lives, Jain designed Belita as an affordable beauty service, with only a few high-end offerings for special occasions. “I believe that the retail and services sectors have remained largely unaffected by the economic climate,” she says. “Big brands are setting up shop in India. In metros such as Mumbai, where people are always on the run, there are enough takers for comfort services. I knew this idea had potential and I would be able get funding eventually.”
Belita did get funding in January from India Quotient, an earlystage funding firm

In a downturn, Munje felt that working with a company and striking out on one’s own, both had pros and cons. “Unlike in a conventional job, I chose the control that having my own business would give me — even in a bad situation,” says Munje.
Considering the uncertainty in the job market, Munje didn’t want to give another year to engineering, go through the grind of campsus interviews and then take a job with an ordinary pay package. “My sister works abroad and many of her friends were laid off. I saw the risks that even a conventional job carried.”

Munje doesn’t believe there is an ideal time to start up. “It depends on what the entrepreneur feels about his idea, to what length is he willing to go to execute it, and what external factors are key to its success,” he says.
As transport prices rise, it is certainly more expensive for his staff to travel across town. But in this line, customers pay as soon as they get the service, which helps him plan.