How To Get a Job With a Contrarian Investor

I haven’t blogged consistently as much as I would have liked to in the past few weeks. However, as I started writing the answer to a question asked on www.showmedamani.com/ama, it went from a short form answer to a full-blown blog. It was the best trigger to restart my daily blogging habit.

The question asked: How can I learn more about investing? How can I get a job with a marquee investor?

The first question to answer is, who is a marquee investor?

A marquee investor is someone that consistently beats the market over a long period. Anyone that has invested for a living will tell you that beating the market is not easy; therefore, the select few that do, do it by refusing to follow the market. These investors few enter (or exit) investments against market sentiments because they figure out that the market has mispriced a stock, sector, instrument, etc.

Investors that invest against the market sentiments get branded as contrarian investors.  I consider myself to be one too.

I  understand why finance or investment professionals want to learn from contrarian investors, and it isn’t about the money.

Contrarian investors represent something far more significant, the ability to speak up (through their investment decisions) against the majority and – win. At its very core, contrarian investing is the classic underdog favorite story of David vs. Goliath.

It isn’t a surprise many contrarian investors get bombarded with requests for “ability to learn” from them. What is surprising (to me) is how individuals that want to emulate contrarians do it by approaching them conventionally. They send resumes with cover letters praising the portfolio picks, but their resumes and praises get lost in a pile of many deserving candidates.

So how can a candidate stand out?

The biggest challenge for contrarians is to find people that want to challenge the status quo. It takes a lot of guts to develop a contrarian thesis and an even stronger constitution to hold onto that belief. Contrarian strategies look incorrect for a long time before they look correct, and a contrarian can lose employees, friends, family, and investors by holding onto that belief.

Michael Burry’s predicament in The Big Short is an excellent example of how lonely (and frustrating) it can be as a contrarian holding onto their predictions.

Therefore If a candidate wants to showcase that they can think, act, and hold onto contrarian views, it shouldn’t it reflect in their attempt to seek a job?

Here is an exciting approach that I thought of (and could work on me, possibly):

  • Study your target investor’s thesis and learn how they pick their investments.
  • Try to find the next investment that would excite your target.
  • Prepare an in-depth investment recommendation note for your target.
  • Your note should highlight your ability to research, analyze, model, and recommend.
  • But it should showcase your nonconformist approach to investing, the ability to find information where no one is looking.
  • Most importantly, it should put it on display that you do not think about where the ball is right now, you think about where the ball is going to be.
  • Send that note to your target with a detailed cover letter explaining why you chose the investment you did and how you went about your process.
  • If you have gone a step ahead to tie up the investment for them too – major brownie points.
  • Most importantly: do not ask your target for a job or an opportunity to work with them. Just ask them for feedback on your investment note.

This approach requires effort. However, if one wants to run ahead of the crowd, like Usain Bolt, they must practice harder than everyone else too.

6 Learnings after 60 days of WFH – for Founders

Yesterday was the 60th day since we shut down our office, but it feels much longer. Partly because of the roller coaster journey I have had with a concept that I could not understand, i.e., working from home. In the last 60 days, I have gone from hating to loving the work from home concept and from working myself to the bone to appreciating the freedom and higher productivity this concept brings to my team and to me.   

There are several posts on how to manage employees that are working from home, but very few focus their attention on the founder that is leading their startup through troubled waters. I had 6 distinct learnings that reshaped the way I thought about working from home: 

 

 

  1. Hyper-productivity has its limitations 

    I was guilty of indulging in this mistake for the first 30 days. Theoretically, I saved 90 minutes of commute time; therefore, I decided that I could take on more tasks and responsibilities. Thus, in addition to my duties as a fund manager, I was reworking budgets with our portfolio companiestook on the chief editor role for Artha’s blogs, and I was conducting multiple team calls a day to keep the team focussed and engaged. 

    It was exciting and new the first couple of weeks, and I enjoyed working myself to the point of exhaustion because it kept all the negativity around the crisis out of my mind. However, hyper-productivity began providing diminishing returns the more I indulged in it. 

    It started with general irritability and slight distractions, but eventually, the focus on work suffered, and the list of tasks pending on me started to pile up. Finally, there was just a general numbness to all the work. The enjoyment of completing one task was quickly replaced by the groan of watching the tasks list continuing to expand

    became aware of the toll my hyper-productive avatar was having on my physical and mental health. Eventually, it started affecting my interpersonal relationships – at work and at home. With some sage advice, I toned down my hyperproductivity ambitions and focussed on quality instead of quantity. I concentrated on completing 5 tasks per day (nothing more or less) and utilizing the extra time to expand my knowledge horizon.

  2. Recognizing and dealing with Zoom fatigue 

    It was fun to be on an endless stream of Zoom calls. The meetings were shorter, I drank fewer calories, and I could do double the number of meetings. Then as Brad Feld put it, I started to experience Zoom Fatigue. I caught myself replying to emails, responding to internal team chats, or editing investor newsletters during these online meetings. I was there, but I was not present

    It did not help that I made my meeting schedule so tightly packed that there was no room for error; therefore, if there was an unscheduled call, it would be a couple of days before I could get back to them. 

    At the start of this month, I reduced the time I allocated for online meetings. Encouraged with the results, I have limited my online meeting schedule to just 3 hours a day from this week. This workaround will give me ample down-time to catch up with my inbox, tasks, and team chat – allowing me to be fully attentive during the online meetings 

  3. Taking a break 

    It is ironic that I would find it challenging to take a break from working while working at home. The opportunity to take a break (my TV) is less than 10 steps away, the bed just another 15 steps. Despite my intense working schedule over my 15year working career, I continued to watch at least 1 new movie a week on averageHowever, in the last 9 weeks, I have watched a grand total of 2 new filmsand I had to split watching each one over 2-3 weeks. 

    The fact that the opportunity to take a break was so close developed a false sense of comfort that I could take a break at any time. That time did not come because there was always something pressing that needed my attention.  

    Although it was late, the benefits of taking breaks finally dawned on me. A couple of weeks back, I took a 3-day weekend (I still ended up working for half a day), caught up with friends, and on my sleep. I had a fresh perspective on projects & a spring in my voice when I resumed work, convincing me that taking a break is an imperative undertaking for any founder.

  4. Setting boundaries 

    When we are done with work, we shut our laptops, stuff them into our bags, we commute back home, switching off all the work-related tabs in our minds and refreshing the tabs for our personal livesWhat happens when that commute is cut down to 90 seconds? 

    In my first month I was taking work calls from 8 am to 10 pm daily, I slept with work and woke up in it. There are several times in a year when VCmust put in those types of hours, especially when we are closing multiple deals. However, this was different.

    I did not have time to work out, I took tons of notes with a mental promise to review them but could not find the time to do it. Many a time, I could not remember what I ate for dinner and in what quantity! These endless hours started to take a toll on the team as well.

    I instituted a pm deadline on myself for all workrelated meetings. Everything that could not get completed by 7 pm would get pushed to the next day. To commit myself to this deadline, I started working out on cure.fit with a partner who would ensure that I did not miss workouts, therefore, ensuring that my work-day had an ending

    Without boundaries, the boon of working from home can quickly turn into a curse. Therefore, it is a good idea to schedule winding up and winding down activities so that there is a psychological boundary between work & home. 

  5. Schedule tasks into your calendar 

    There is a big difference between being busy and being productive. One can be busy all day but have nothing to show for their busyness at nightOn the other hand, productivity demands results, it demands focus.  

    I learned an excellent productivity hack that has worked wonders for me. Instead of having a to-do list or a task list – I get my tasks directly scheduled into my calendar, thereby blocking out time to focusThe scheduled slots are limited to 30-45 minutes chunks, with a 15-mins break at the end for contingencies and to report to the team after the job assigned to me is completed. There is an excellent post on Effective Scheduling for more on this. 

  6. Take a vacation 

    It sounds ironic that I would propose vacation time amid an economic crisis, especially when we are working from home! However, a lot of founders have forgone summer vacations due to the way this crisis creeping upon us. As a founder, we must recognize that vacations are essential with several scientifically known benefits of what breaking routines do for our minds & bodies

    While there are minimal options for us to travel for a vacation, there are other ways to take a break from the world and give the body & mind time to recharge their batteries. The Washington Post provided an excellent resource for vacationing at home, aptly titled, The completely correct guide to vacationing at home.

    Oh! You will find the perfect vacation auto-response in my 18-month-old postPerfecting the vacation auto-response.

Summarizing my exit interview with a venture capital intern 

Two interns finished their learning cycle with Artha this week. One of them wanted to speak to me and get my feedback on his performance during his 4month internshipThe schedule short feedback session went on much longer, and at the end of it, we got into an exciting topic – the importance of forming an opinion.  

I believe our discussion applies to anyone who wants to work in the investment business, especially earlystage venture capital. I am sharing a synopsis of that conversation with the permission of the intern.  

 

Intern: What is one piece of advice for me? 

Me: Form an opinion and be vocal about it. It is acceptable to be wrong, completely wrong, and heinously wrong. However, it is cardinal mistake to have the ability to accumulate and analyze data but lack the courage to form a decisive opinion. The best investors have often sought out views from their peers and from people who could provide them with a fresh perspective. In fact, the investors I emulate often seek out contrarian views to their own to test their hypothesis.  

 

Intern: Why is the trait of forming and communicating our opinions so important? 

believe that investing is the ability to predict future outcomes of current decisions, and an investor’s brilliant foresight finds appreciation only in hindsight. That is why I consider investing more of an art than scienceA room full of experienced appreciators of art would almost inevitably have deep-felt disagreements on the value of Van Gogh. They could all be right or be wrong – we would only find out once the money gets transferred into the sellers account 

 

What should an intern do?  

fondly remember eyeopening realizations I have had during discussions (sometimes heated) with interns, associates, principalspartners, coinvestors, and even entrepreneurs over the last 10 years in venture capital. Initially, it was intimidating for me to showcase my opinions in front of the experienced hands of this game. But I realized that I wasnt learning anything by keeping them to myself. I learned more by expressing my incorrect opinions and recognizing the gaps in my understanding, over keeping my opinion to myself for fear of getting called out.  

A newcomer to the investment industry should seek out experiences where they can form these opinions. Join investment clubs, seek out investors who have strong opinions, even if they are contrarians to their own, but learn how to build and present your investment viewpoint. 

 

Don’t be afraid of being wrong; we learn best through the mistakes we make. Expressing your opinion is a win-win situation. You either get called out and learn where you went wrong, or your opinion contributes valuably to the discussion. Most importantly, you grow with each interaction and learn to receive constructive criticism. 

21 Point Action Plan to Corona-Proof Your Startup Dream

Calling the shutdown caused by the Coronavirus pandemic, an economic crisis is a gross understatement. It could be a crisis for the established business ecosystem, but it is the equivalent of a tsar bomba for the early-stage startup ecosystem. If all of us do not act quickly, the entire venture capital ecosystem is staring down at years of effort, getting incinerated in a matter of weeks.

When the Prime Minister, Mr. Narendra Modi, announced the Janta curfew, he talked about blackout drills and wartime curfews to a population where the majority hadn’t witnessed one. It was a reminder of a dark 15-20 period when India went through several wars with Pakistan & China. That ignited a mortal fear in me as well.

I feared that this crisis could destroy the decades of work that it took to provide confidence to young graduates to convert themselves from job seekers to job creators. We had to show years of results to convince Indian & global investors to pour money into startups via venture capital funds, angel networks, superangel syndicates, and venture debt funds. All this effort all this sacrifice, of the tens of thousands of people that make up the entrepreneurial ecosystem viz. over 39,000+ founders, 10,000+ angel investors, 500+ VC funds, several visionary politicians & government officers is on the brink of collapse.

However, real entrepreneurs are problem solvers, optimists, and overachievers. Any challenge, even something that challenges their mortal existence, will help an entrepreneur find another gear within them. As they say, even in adversity, they only see opportunity.

My team and I started to sound out Artha Venture Fund’s founders on the business impact the coronavirus pandemic was about to make a couple of weeks before lockdown. We asked our founders to create new budgets to account for the onset of nuclear winter in the fundraising world, bring their expenses down to the bare minimum, and to show patience along with courage at this time.

It has not been easy to convince the optimist in them to slow down for now and conserve energy to speed up later. Last week we put all our heads together on a zoom call to chart out an action plan for saving their dream – their startup.

I summarized the call in a 21-point action plan to save your startup memo for the founders. My team went a step further to make it into a beautiful & impactful presentation. In the spirit of joining hands during this adversity, I am sharing that presentation with you:

 

It is important to remember the immortal words of General S Patton:

515f6824aebbd71863babe1bd873d702

Together we will win the coronavirus fight in our homes, in our businesses, and our minds. Let’s roll!
Continue reading

Setting Outcomes for 2020

On our last working day of the decade, i.e., the 27th of December 2019, I asked the Artha team to congregate in our conference room. At 5 pm, 24 Artha team members stuffed themselves into a space built for 8, and another 6 joined in from Ahmedabad on Zoom.
First, I enquired how many attendees had written down their resolution for 2020 – it was less than 10%. From that sliver, I picked on the newest hire, to share her resolution for 2020. Along expected lines, the newbie said, “I want to be fit.”
Thanking her for sharing their personal goal, and I also made a solemn promise that unless she changed how she worded her resolution, she was going to fail. She was shocked, but my reasoning was straightforward.
Her resolution was so generic that even a 100g drop in her body weight would mean that she had achieved her goal. Instead of pointing the finger at their colleague, I asked the team to utilize her example and replace their resolution setting or list of “to-dos” with plans to deliver outcomes that they wanted to achieve.
To help them understand the outcome setting concept, I showed a Tony Robbins video on the Rapid Planning Method (RPM).

As Tony says in the video, it takes a bit of effort to retrain oneself so that we make plans for outcomes, not activities. The good news is that the brain adapts quickly to the new system and starts to deliver fantastic results! I utilize the RPM method for planning and for my weekly reviews with team members that directly report to me. It takes some effort at the start, but I am amazed at the tremendous ability of the mind to find new ways and energy to deliver an outcome. It should not be a surprise that I am a big proponent of this planning method.
I even had a clear outcome for conducting this training. I wanted my team to internalize the message and put the outcome planning into action. Therefore I tasked each team member to share 3 outcomes that they wanted to achieve in 2020. The had to find 3 outcomes for the personal, professional, and social/charitable spheres of their lives in the next 4 days and share it on the company-wide group on Microsoft Teams.

Why share the outcomes publicly?
If writing the outcomes is half the battle, publicly committing to those outcomes is the other half – the winning half!

Because my team (obviously) includes me I, too, wrote down my 2020 outcomes. But in addition to sharing it with my teammates, I am sharing them publicly, today. I had done a similar but unfocussed exercise in 2018. Overall, it delivered fantastic results because of the pressure it put on me. Why then, I thought to myself, should I change something that is working!
So without further ado, here is my list of outcomes.
Professional

  1. Increase Artha’s assets under management to over Rs. 300 crores+ ($40 million+)
  2. Invest in 25+ new start-ups
    1. When I achieve this goal, I will complete a century of start-up investments!
  3. Pay-out bonuses of 60 lakhs+ ($85k) to deserving team members

Personal

  1. Go to Tony Robbin’s Unleash the Power Within with a family member and an Artha team member
    1. Besides, go for Tony’s Date with Destiny and Business Mastery workshops
  2. Author a book
  3. Complete 50 scuba dives

Social/Charitable

  1. Support a crowdfunding project every week (#FundingFriday)
  2. Set aside 2 hours a week to mentor a child (@mentormeindia)
  3. Build or Upgrade ONE school along with the Artha team

That’s the list for you to track and me to deliver, let’s roll…
I wish you a happy new year full of achieving outcomes!
1/2020

Family & Friends – Please Save Your Capital!

A couple of months ago, I found my jaw hitting the floor during a start-up pitch. The founder of an early-stage B2C startup revealed that he had previously raised a family and friends’ round of the princely sum of 5+ crores (~$900k). That capital was exhausted in less than 18 months; the monthly burn was over 50L per month with a double-digit staff strength. All this effort was delivered less than 25 lakhs in sales – since inception!
Runaway spending, low traction, running out of cash are situations that I regularly encounter as an early-stage investor. What worried me was the lack of oversight the family and friends had on how the founder invested their capital and their lack of experience steering the founder from avoidable expenses.
For example, precious and expensive capital found itself funneled into:

  • A massive PR & Branding campaign which wasn’t delivery but continued to burn a hole every month
  • Lobbying for international “paid awards” that cost a bomb but did not deliver results.
  • Massive allocation on R&D, but it was a ruse. The money got spent on traveling to different countries to find manufacturers to white label their products to the company
    • I have seen others do it at 1/10th the cost & time

I cannot hold the founding team entirely at fault here too – part of the blame should be on the investor class. They infused excess capital into the business, thereby encouraging the founder to burn the money on things that don’t matter, ultimately setting up things to fail.
My presentation of these entrepreneurial misadventures is not an attempt to rub salt on the wounds of the family and friends’ investors or the founders.
I want to point out something fundamental. Except for unusual situations* family and friends must limit the amount of capital they commit to an entrepreneur. Leave the larger rounds of capital to the professionals. Not only will it save capital for generous family and friends, but it will also save founders from committing hara-kiri with their startup ambitions.
If this were a one-off situation, I would not have written about it, but I am witnessing a marked increase in the number of ventures backed by family and friends and coming to us for a seed round. We like family and friends supported investments because it shows that those closest to the founder also believe in them, but like healthy foods – too much green can be injurious to health.
Most of the time, family and friends judiciously put in a small amount of capital, just enough to get the venture started. However, there were many examples where family & friends have drowned a lean start-up culture with a deluge of capital – killing the enterprise and blowing away the capital.

So, the obvious question that arises is, how much should a family or friend commit to an entrepreneurial family member or friend?
The good news is that a family or friend need not look too far.

The best accelerator programs in the world, i.e., Y-Combinator or TechStars, commit $150,000 (~₹1 crore) for a 7-10% equity stake in pre-seed ventures. Similar programs in India like 100x.vc, Indian Angel Network accelerator, or VentureNursery (in the past) invested between 25-75 lakhs for a similar equity position.
All the branded investors mentioned above have many good and bad investments; therefore, with their experience, they can guide founders on promoting the right and shunning wrong behaviors in their start-ups. So, for inexperienced family and friends’ teams, the correct amount of capital would be between 50% to 75% of what these guys invest, i.e. anything in 40-75 lakh range.
Family and friends can decide where to invest in this range based on the domicile of the venture but ensuring that the founder has 6-9 months to find a professional investor while they continue to grow their start-up. It is the founders’ responsibility to consistently update their investors whether things are going well (or not). Developing this habit is vital but critical in case things are going well, but finding a professional investor is taking time. Family and friends could opt to put in some more capital IF they are comfortable with the start-up’s progress and are objectively taking the additional risk.
However, the family & friends’ capital tap must end at that.
 
* While It is still advisable to leave the more giant cheques to a professional but in certain situations, it makes sense for a more significant allocation from family and friends. These are exceptional situations, not the norm.

  1. If the family and/or friends have in-depth domain knowledge and are objectively backing one of their own
  2. In Meditech or Healthtech like start-ups that require more massive upfront investments and the family and friends’ investors have in-depth domain knowledge

The passionate vs the obstinate founder

Recently, I had a long conversation with someone about the challenges I faced working with an obstinate founder that they referred to me. The person countered that the founder was passionate about their business idea, and I misunderstood their passion. I disagreed with their assessment.

During the week, I have contemplated the difference between obstinate and passionate. I realize that it was difficult to separate the two. Obstinate is often misunderstood to be obsessive; a term often used to describe Mark Zuckerberg, Jeff Bezos, Brian Chesky, Elon Musk or Jack Ma.

I love obsessive founders. I considered myself an obsessive founder. I am probably even more obsessive as an investor. Why VCs love obsessive founders is well explained by Mark Suster in this Medium post titled Why I Look for Obsessive and Competitive Founders. If you are a VC investor, then you should read this post.

Moral: Obsessive is good, but obsessive is not obstinate.

Obstinate is what Oxford defines as stubbornly refusing to change one’s opinion or chosen course of action, despite attempts to persuade one to do so.

Obstinate founders can take a fantastic thing and reduce it to rubble because their need to be right is more important than their need to win. It is the classic winning the battle but losing the war syndrome.

Gordon Tredgold wrote a wonderful article explaining the difference between stubbornness and determination, aptly titled Don’t Confuse Stubbornness with Determination.

In it, he provided a list of signs that can warn a founder whether their stubbornness is becoming an issue.

  • If you never win and you never quit, you’re an idiot
  • Will power vs. Won’t power
  • Remember that your goals must be measurable
  • Think about results
  • Consider adaptability
  • Your goal will remain the same, but your plan for achieving it will be different

His suggestions are absolutely banging on. I encourage you to read the article if you constantly find yourself butting heads with prospective and/or current investors.

The Indo-African perspective on the role of mentors in your startup

Over the weekend, I was a guest of Baljinder Sharma, a serial entrepreneur and a highly respected individual in the India & Africa startup scene. He put together the first India Africa Entrepreneurship & Investment Summit in Mauritius.

The event started as an idea to create a bridge between two ecosystems that houses over 1/3rd of the world’s population. It culminated in a 2-day event attended by over two hundred illustrious participants of the African & Indian early-stage ecosystem.  

The number of close relationships forged at the event is the barometer of success for such an event. On that scale alone – this event was a resounding success. I made several new friends, some from India and many from Africa. I will strongly encourage Baljinder to make the event a permanent annual feature for both ecosystems.

On the first day of the event, I was on a panel with an impressive list of panelists viz, Stephen Newton, Jonathan Mazumdar, Eric Osiakwan. Atim Kabra deftly and expertly moderated the panel channelizing our experiences and energy into a coherent narrative. Our discussion topic – the role of mentors and incubators in our respective ecosystems. Our discussion on mentorship got extremely engaging so much so that we did not enter into any meaningful conversation on incubation.

My co-panelists came up with a host of discussion points, but we unanimously agreed that the title of “the mentor” was thrown around very casually in our respective ecosystems. Often, service providers are self-anointed mentors, and their misrepresentation can have disastrous effects for the founders, their startups, and their investors.

On Sunday night as I boarded the flight back to Mumbai, I put down those discussion points that resonated with me; here is that list.

A mentor should not cost the company money.

This point is not to say that the mentor should work pro-bono. However, mentors that offer hourly/weekly/monthly/annual payment plans are service providers. If your proposed mentor charges money to meet you for an evaluation – please be smart and avoid them. 

A mentor’s role is to guide, not to become the founder.

I have committed this mistake a few times, so it hits home. Many times, founders start abdicating the decision-making role to the mentor, and there are several times the mentor starts getting too deeply involved. The mentor is not the CEO or a co-founder, but neither are they above the CEO or the Founders.

If you have crossed this line in your mentor-mentee relationship already – it is time to scale it back maybe even take a break. 

A mentor’s job is to do /advise you on what is best for you, not to make you happy.

This point is a personal favorite.

The mentor’s role is like that of a coach – they are present for the overall success of your company, not your success alone. Therefore, they must offer advice which is best for the company.

A self-respecting mentor will promptly quit if they get the message that their presence is to be a rubber stamp to your whims.   

A founder should have multiple mentors.

This learning was new to me. A founder should seek out multiple mentors that can help them with different aspects of their business or challenges. As the startup grows, there should be a churn in the mentors with new mentors taking over from the mentors that have finished their role/utility.

A good mentor stands on the side-lines while you make mistakes.

An extension of point 2. Experienced mentors sit on the side-line while you make mistakes even if they could help you avoid them. The lesson of letting you experience failure and learning how to prevent future mistakes is more important than the experience of getting saved by the mentor.

A good mentor will warn the founder of the challenges but leave the final decision on them.

The mentor’s role is to guide the founder through their decisions, but in the end, the founder is the one that must pull the trigger. When a mentor starts making decisions for the founder stops taking responsibility for the results.  

It would be best if you chose mentors that have substantial previous experience in the areas you need help

If you want to learn how to build a billion-dollar startup, who would you go to for help? The founder that built billion-dollar startups a couple of times or the founder struggling to get their startup out of their garage? 

Even though this sounds like a simple point reiterated – I am surprised how many times founders commit this mistake.

The best mentors only take on mentoring projects that challenge them.

Good mentors get sought, but they aren’t running after the money. They are looking for a challenge. A challenge that will stretch them and help them grow thereby (and in most cases) helping the mentor and the mentee.

Mentors that are running after money will accept any project, regardless of whether it intrigues them are not the right choice for you and your startup.  

The very best mentors get involved before the founders know that they need them and leave before the founders question their existence.

An involved mentor that is “in-sync” with their mentee knows precisely when to increase their involvement and when to decrease or terminate their relationship. A mentor that must be asked to leave has stopped paying attention.

It would be best if you convinced the mentor that you are worth their time investment, not the other way around

When a mentor is chasing you, explaining why you “need” their mentoring or pestering you to “sign-up” with them, they are a service provider. Service providers have other motives driving them but they are most likely not in line with your mentoring requirements.

The best mentors are so busy with their projects. They place a high value on their time. Therefore, you must convince them that you are worth the opportunity cost of their time – without using money as the offset.

My takeaway from the panel: Choosing is a mentor isn’t rocket science, but neither is it a game of roulette. Choose wisely through the generous application of common sense.

My atrocious car buying experience is a lesson in after sales treatment for all founders!

I am re-reading How to Sell Anything to Anybody by Joe Girard (book review coming soon).
Earlier today, I finished his chapter on Winning After the Close wherein Joe talks about the importance of ensuring customer satisfaction AFTER completing a sale. He gives examples of how he goes out of his way to ensure that his customers sing his praises to their friends and family. He links the importance of satisfying his customer to the Girard’s Law of 250, i.e., each person has a direct connect to 250 people; therefore, an unhappy customer can directly influence 250 people. Consequently a salesperson or a business that disappoints two customers a week will have 26,000 negative influence every year!
Why is it important to follow what Joe Girard says? For starters, the man still holds the Guinness Book of World Records for being the most successful car salesman in history. This man was selling six cars a day (on average) while the average salesman struggled to sell one. He was out making $500,000 a year selling cars in the 1970s, i.e., eight times the per capita income in the US of A – TODAY!
So yes, when that man says something – it is worth our time and attention.
I am coming back to my point for the post today.
I just bought my first car in India. It was an important moment for my team and me. We were ecstatic on getting the car delivered on Tuesday evening. However, instead of reveling that moment and remembering it for the years to come, all we cannot forget is how the salespeople delivered the car with just enough fuel to get the vehicle to the closest petrol pump!
The saleswoman blamed the empty fuel tank on some dealership policy of ensuring that customers get a bone dry fuel tank. I could not disagree more with her firm, her firm’s strategy, and finally with the saleswoman herself. If she was so embarrassed about her firm’s stingy policy, she could have ensured a happy customer by filling up the tank herself – she would make more than the Rs. 2200 it cost me to fill the tank.
Buying a car is one of the most important purchases in one’s life. I can still remember, like yesterday, the first car I bought with the money I earned by working during the first summer semester in college – a 1996 Mercury Sable with a v6 engine. I was so proud of the car even though it was six years old at the time of purchase. The moment gives me goosebumps even today.
Then 17 years later I buy my first car in India, a Honda Civic, and it is an expensive car (for my standards), but it was delivered as though the dealership was running out of money. It left a sour taste and you won’t have to think hard whether this dealership (Arya Honda) will be recommended by me to anyone. The answer is no.
I must re-emphasize that a happy customer is the best salesperson. He/she will boast about his/her positive experiences to their closest network. On the other hand, an unhappy customer will tell anyone that would like to hear him/her of their negative experiences and feeling cheated by a car dealership. Unfortunately, these car dealerships operate under old maxims therefore continue to misread their customers. Any start-up founder that is reading this post should not.
Your customer whether they are B2C, B2B, B2B2C or B2B2B or B2B2B2C (and so on) must be happy with their purchase of your goods or services. To hide behind the veil of corporate policies is the old way of doing business, and you must ensure that your salespeople are sufficiently empowered to ensure post-sales customer satisfaction, at all costs! It is just as important that those negative experiences are corrected by changing policies and processes.
The process in which the company acquires a customer, gives them lousy experience, and allows the salespeople to blame an insane corporate policy is a sure indication of a deeper rot settled in that organisation.
A rot that every entrepreneur should guard their companies against the cost of all their corporate policies.

The Fastest Path(s)

The fastest path to the CEO chair is very different than what you might believe!

Last week I concluded the appraisals for 2019 as well as inducting two analysts into our team at Artha Venture Fund. I attempt to have a conversation with each of the new inductees, and one of the questions I ask them is where they see themselves in the next five years. Most of them have plans on doing an MBA or becoming a manager, but very few have plans to become entrepreneurs.

Therefore when I do their appraisal, I ask them the same question once again, and it isn’t surprising that most of them have had a shift in their five-year goals. Invariably they would like to be in some entrepreneurial position whether that was in a start, proprietorship, NGO or as a fund manager. I hold the entrepreneurial energy that flows within the walls of our office responsible for this shift, and I am confident that I am the one responsible for dropping cans of fuel to flame any evidence of an entrepreneurial spark.

While I have recalibrated the goals for many team members, I have found that like the entrepreneurs that I have met, my team holds misconceptions about the path one should take to becoming a CEO/Founder. I could harp on my own experiences as a case study for them to follow, but it was a pleasant surprise to learn that the team of Nicole Wong, Kim Powell, and Elena Botelho were conducting a study that I could share!

In a ten year study, the trio assembled data on 17,000 C-Suite executive assessments, studying over 2,600 of them in-depth. They wanted to analyze who gets to the top and how and they went onto publish a book based on their findings called, The CEO Next Door.

Their study (aptly called the CEO Genome project) took a close look at the career paths of individuals that they have (once again) aptly called, CEO-sprinters. Their study discovered that on average, it took 24 years from the date of joining their first job to become a CEO. Therefore CEO-sprinters are those individuals that got the CEO title before 24 years.

Some of the data sharing from the study are thought-provoking:

  • 24% of the CEOs had an elite-MBA
  • 7% graduated from an Ivy League school
  • 8% did not complete college
  • 45% had had a significant career blow-up

The study concluded that the CEO-sprinters had three types of career catapults that got them to the CEO chair early viz:

  • Go Small to Go Big
  • Make a Big Leap
  • Inherit a Big Mess

Understanding these career catapults and experiencing them is crucial. Their importance is inferred by the fact that:

  • 97% of the CEO-sprinters had had at least 1 of those experiences
  • ~50% had had at least 2

I will review the book in a future post, but until then you can learn about the career catapults as well as other findings from the CEO-genome project at   

I concur with the findings of the CEO Genome project, and it has once again confirmed what my mentor & ex-boss used to ingrain into each leader that was led by him

The people that solve the most problems make the most money!