50 posts tagged with "business"

Whatsapp is the new SMS​

Whatsapp has deteriorated significantly in the last few years. From a default secure chat, it has become an avenue for businesses to push for more products and services. There's nothing wrong in it, but add to it the almost infinite number of groups, it is better to not be on Whatsapp. I am thinking if now is the time. I keep my Whatsapp notifications on mute nevertheless.

In other words, I open my SMS application only to look for OTPs. I am thinking of doing the same with Whatsapp.

Whatsapp Spam Blast​

I have received the following business promotional messages in the last 24 hours - HDFC Bank, Jupiter, bbdaily, Prepladder, Clove Dental, 99 acres, Jumbaya.

I understand the businesses seeking the same as Whatsapp provides a great curated audience for push sales. I wonder, how much are the Whatsapp users enjoying the same.

Standardization of products​

The life of middle class India has transformed in the last 15 years. The standardization of products have compressed costs massively. Add to it, the growth in income, more people are able to afford a lot more products.

I tend to 'splurge' for convenience. I'll pay a lot to not waste time.

Standardization of services​

With Uber & Ola, we have standardized cab experience. With Urban Company, we have standardized AC and home cleaning experience. While they are great services, I share my sentiment about Finding a Taxi by Kunal Kamra.

How many of us love the experience of Blu over Uber due to the quality of cars?

With the convenience & goodness of an app comes the stagnation of average quality. Local experts who provide high quality & nuanced services stand out.

The standardization of service can sometimes lead to a reduction in quality. When businesses strive for consistency and efficiency by implementing standardized processes and procedures, it can inadvertently result in a decline in the quality of the service provided. Standardization often focuses on streamlining operations, minimizing variations, and increasing productivity, which can overlook the individual needs and preferences of customers. This can lead to a lack of personalization and a diminished customer experience. Additionally, standardized services may prioritize speed and cost-effectiveness over delivering exceptional quality, leading to a compromise in the overall value provided to customers. It is crucial for businesses to strike a balance between standardization and maintaining a high level of quality to ensure customer satisfaction and loyalty.

I recently got AC servicing done via Urban Company and found the experience average at best. Of course they have standardized the experience and compress costs, but by design, Experts would not stick around on the platform or marketplace. They will command a premium for their additional efforts and skill.

Bharat vs India​

Bharat and India are two distinct facets of the country, differing significantly in various aspects. Firstly, in terms of population density, India is densely populated, with bustling cities and towns teeming with people, while Bharat has a comparatively lower population density, with vast open spaces and scattered villages. Secondly, infrastructure and amenities vary greatly. India boasts of modern infrastructure, well-developed transportation networks, and access to healthcare and educational facilities. In contrast, Bharat often faces infrastructure challenges, limited access to basic amenities, and inadequate healthcare and educational resources. Another crucial difference lies in the lifestyle and occupations. India tends to have a more cosmopolitan and fast-paced lifestyle, with diverse professional opportunities in industries, services, and technology. Bharat, on the other hand, follows a predominantly agrarian lifestyle, with farming and agriculture as the primary occupations. Additionally, cultural practices and traditions may also differ significantly between rural and India. However, it's essential to note that both rural and India contribute to the country's social, economic, and cultural fabric, each offering unique strengths and challenges.

Digital access of Bharat vs India​

Bharat has grown leaps and bounds vs India in data consumption. Triggered by Reliance Jio’s entry in 2014, India’s data consumption has exploded with all other operators also offering cheap data tariffs. Mobile data traffic is growing as more Indians spend time streaming live videos, which is expected to account for 75% of overall mobile traffic by 2024. Read more.

Digital transactions in India​

The table below rehashes the, Digital Transactions in India report. Digital Payment modes considered are: BHIM-UPI, IMPS, NACH, AePS, NETC, debit cards, credit cards, NEFT, RTGS, PPI and others.

BHIM UPI has emerged as the preferred payment mode of the citizens and has recorded 803.6 crore digital payment transactions with the value of ₹ 12.98 lakh crore in January 2023 => Average transaction value on UPI in Jan 2023 was Rs 1615.

Digital transactions learnings​

The following are important learnings from the above data:

1. UPI has massively increased the number of transactions, average transaction per person and reduce the average value of transaction i.e. introduced micro transactions.
2. CAGR of Count per person i.e. number of transaction per person in India is 27% i.e. doubling every 3 years.
3. It is shocking to see that the total value of Digital Transactions has a CAGR of 0%. The total transactions grew and peaked during Covid and shrank again.
4. The average number of transactions per person in a year are only 65 i.e. 5.4 transactions per person or one transaction every 2 months. I wonder how the stats will look if you take away the power users i.e. the top 1% of population.

Bharat and Financial Digital Services​

I met Neha Singh Rana who is the Chief Business Officer of Pay Point. Paypoint delivers financial services to the last mile i.e. they are GIG + Financial Services where they empower the dealers (independent contractors) to educate & enable transaction for their neighborhood. The services include - Kiosk Banking, M-ATM / AEPS, Instant Money Transfer, Pre-Paid Reloadable Cards, Bill payment & Recharges, Amazon Retail Store, PAN Card, Insurance, IRCTC & Travel Booking, Gift Vouchers & OTT. PayPoint claims to have a retail network of 64,000 shops and is one of the forefront players to do offline to online transformation for Bharat.

They are similar to e-Mitra in Rajasthan. Do you remember the days when we used to visit a shop for recharging the mobile phones in the early 2000s? If you step out a few kilometers outside the city and you will find people seeking help to perform transactions. I wonder how much of this digital literacy be disrupted by YouTube and similar platforms whereby Bharat will feel confident in performing financial digital transactions. They are very confident in browsing videos and navigating content in a very short span of time!

Your role as a boss​

The role of a boss in leading a team is crucial to the success of the venture. A boss is responsible for setting the tone and direction of the team and ensuring that everyone is working towards common goals. They need to be able to communicate effectively, inspire their team, and provide guidance and support as needed. A good boss also needs to be able to identify each team member's strengths and weaknesses and assign tasks accordingly, while providing opportunities for growth and development. Additionally, a boss must foster a culture of trust, collaboration, and respect within the team, and address any conflicts or issues that arise. Overall, the role of a boss in leading a team is to provide direction, support, and mentorship to ensure the team is working efficiently towards achieving their objectives.

No one can whistle a symphony. It takes a whole orchestra to play it.​

Your role as a leader​

The role of a leader in inspiring a team goes beyond just managing day-to-day operations. A leader sets the tone for the team, creates a vision, and inspires others to work towards that vision. Leaders inspire their team by empowering them, encouraging them to think creatively, and providing opportunities for growth and development. They also communicate effectively, actively listening to feedback and addressing concerns. Unlike a boss, who often focuses on delegation and control, a leader leads by example and earns the respect of their team through their actions. They prioritize collaboration, build relationships, and foster a culture of innovation and continuous improvement. A leader recognizes and values the unique strengths and talents of each team member and creates an environment that allows everyone to contribute and grow. In summary, while a boss focuses on managing tasks and delegating responsibilities, a leader inspires their team, encourages creativity and innovation, and fosters a collaborative culture that enables individuals to thrive and reach their full potential.

If you want to lift yourself up, lift up someone else.​

Showing confidence in your team​

Showing confidence in your team is crucial to building a successful and productive team. When you demonstrate confidence in your team members, you are empowering them to take ownership of their work and make decisions that can positively impact the team's success. This also shows that you trust and respect their abilities and are willing to support them in achieving their goals. When team members feel confident in their abilities, they are more likely to take risks, share their ideas, and work collaboratively to solve problems. As a leader, it's essential to provide feedback and recognition for a job well done, which can boost team members' confidence and motivate them to continue performing at a high level. When you show confidence in your team, it creates a positive work environment and can lead to increased productivity, higher job satisfaction, and overall team success.

Today was one such day, where I entrusted my team to rise from within and break the barriers. A lot of times, communicating the ask to your team depicts your confidence in them. I hope that my team breaks through and kicks ass soon!

Many ideas grow better when transplanted into another mind than the one where they sprang up.​

Old friends​

Today, I caught up with Suresh Singh who is the founder of ConnectedH and Entrepreneur India 35U35. He is also my batch-mate from IIMB and our rooms in campus used to be opposite to each other. Amongst other things, Suresh is also passionate about Cricket, cars & bikes and photography.

Meeting old friends can be a heartwarming and nostalgic experience. It's an opportunity to catch up with people who were once a big part of your life and reminisce about old memories. Seeing how everyone has grown and changed over time can be both surprising and comforting. Even if it's been years since you've last seen each other, the bond of shared experiences and history can quickly bring back a sense of familiarity and closeness. It's a chance to laugh, share stories, and reconnect on a deeper level.

Startups are tough​

Startups are tough because they require a significant amount of effort and resources to get off the ground. Starting a business from scratch means there is no established brand, no existing customer base, and often no revenue. Founders need to wear multiple hats and handle various tasks such as product development, marketing, sales, fundraising, and more. There is also a high level of uncertainty and risk involved in starting a new venture. It's common for startups to fail, and even successful ones face significant challenges along the way. This pressure can take a toll on founders' mental health and personal lives. Building a successful startup requires a combination of vision, hard work, resilience, and a bit of luck. While the journey can be challenging, the potential rewards of creating something impactful and meaningful can make it all worth it.

Meeting Suresh was nice to share the journey of building something from 0 to 1. It takes time and is a noisy process. Sometimes things work and sometimes they don't. What's worth appreciating is the journey and the fearless spirit of founders. More power to you, Suresh! All the best!

Ambience mall​

Ambience Mall, Gurgaon was opened in 2007. It has a retail floor area of 18 lakhs square feet and has 230+ stores or food outlets and parking for 4000 cars. It is estimated to have an average footfall of ~ 7 lakh people per week in 2016. Located between Delhi and Gurgaon, it hosts major brands and exclusive restaurants.

AOV in malls​

Ambience Mall attracts customers with higher AOV and propensity to spend compared to others in Delhi NCR. Compared to the rest of India, it is amongst the top 1% malls of India. Many customers might order the same product online for pricing, convenience or product availability - but they might not order at all before checking out the product in the mall.

Malls vs D2C​

As per the report, Beyond E-Commerce 3.0, by 2025 D2C brands are expected to do $50 bn in annual sales (out of which $15 bn via brand’s direct channel) with a base of 350 mn users. Published in Jan 2023, the report equates to Rs 12,000 on an average spent by 350 mn users on D2C brands each year. That's imaginable but optimistic. A very interesting stat to guesstimate is the overall spend of these top 350 mn users via offline channel (malls & stores), e-commerce (Amazon, FlipKart) and D2C.

Petrol pumps​

Petrol pumps are rent seeking businesses typically owned by influential old families - politicians, business families and similar. You need a big piece of land, typically on the main road and earn a meager return per sale.

A fair & just petrol pump makes Rs 2.90/litre on petrol and Rs 1.85 on diesel. In other words the commission varies between 2%-3% and they make ~Rs 100 on every 40L filled (typically full tank).

Auxiliary services​

Things appear better in policies than execution. So, as per policy, you should get Washrooms and Free air on every petrol pump. But, in practice, you get neither - at least not consistently.

Typically you would pay Rs 10 for getting the gas filled. While meager, it is 10% of the margin and an astute petrol pump manager will solve for it.

Modern Fuels Gurgaon​

Around a month ago, I took the initiative of giving feedback to Bharat Petroleum about the lack of air facilities, especially in the morning. I had forgotten about it and of course, they did not act upon it. I was reminded about unprofessional retail business practices again this morning when no one was there to fill the air. At the end of the day, I will find an alternative that will be a bit more professional than the usual chalta hai attitude.

No where else to go​

Many a times, dealing with counterparts is impossible. They are willing to provide you the services but they charge exorbitantly. They do so with a smile and subtly communicate it to you. In other words, through their words or actions, they let you know that you have no where else to go. It can be because the business is a monopoly or that the business knows that you have high switching costs.

High switching costs​

High switching cost also happen due to moats or regulations in place. It is typical of financial institutions. Once in such a situation, it is a pure negotiation - where you are trying to minimize your cost and they are trying to maximize the revenue. In addition, they are aware that you have you have no where else to go.

I was squeezed today such an issue today with our bank for rolling our FX hedge. While, I am fully aware that my bank charges my corporate account more than what it charges a retail account. On top of it, it added a obscene fees and tried to justify it as "process" of the bank. Sometimes there's nothing much you can do in such a situation except pay up. I was able to negotiate the fees down to half of the initial ask but still got squeezed.

What happened to Silicon Valley Bank?​

Silicon Valley Bank (SVB) collapsed last week at a very rapid pace. Customers withdrew a staggering $42 billion of deposits between 8th and 9th March 2023. In simpler words:

• SVB was looking to raise around $2.25 billion
• There was a hysteria-induced bank run caused by VCs
• California Department of Financial Protection and Innovation closed the bank and started proceedings to protect the interests of depositors.

Why care about Silicon Valley Bank?​

Financial Institutions fail more frequently than we like. Silicon Valley Bank, as the name suggests, was geared more towards technology companies and related ecosystem. A few reasons will be:

• Many Indian startups (especially SaaS firms) have credit lines and/or deposits with SVB. Almost all SaaS companies with US presence will have an SVB account.
• Most YCombinator funded companies park their capital with SVB
• SVB has a office in Bangalore at Manayata Tech Park
• Banking is a lifeline of exchanging value. Your team members will not care about you if their payouts are delayed because of the banking partner.

Learnings​

I have never banked with SVB, but as they say Learn from the mistakes of others. You can't live long enough to make them all yourself. The following are learning from SVB:

• Managing risk is a primary job of an Entrepreneur. Always be switched on.
• Things do break and will break at a greater frequency in the modern world. Be prepared with a plan when you are on the receiving end.
• If a bank collapses in India, there's little to none immediate relief offered by the regulator vs USA. Always keep a rainy day fund.

There's no such thing as a free lunch​

One of the major learnings from There's no such thing as a free lunch for me has been that everything costs in either time, resources, opportunity. The person/entity that ends up paying for it may or may not be the inefficient person/entity.

Inefficient people cost double​

In my experience, working with people who know what they are doing is 5x better than people who are not. The reasons are:

1. Inefficient people suck time and energy
2. After a few tries, both the efficient and inefficient entities are frustrated from the interaction
3. Inefficient people make their work your work

Looking back​

I have enjoyed working with people who are organized, manage their work & calendar effectively. Typically anyone who maintains a workbook and has the patience to understand the problem/process on an atomic level becomes efficient. Typical examples of inefficiencies which have costed me are:

1. The member does not maintain compliance and you end up paying for it.
2. The member does not understand the process/task but claims to. It leads to misplaced faith in execution.