Venture Adventure - B. Neelakantan

In his book The Road Less Traveled, M. Scott Peck starts off with a chapter titled “Life is difficult.” In the world of MBAs, entrepreneurship is the road less travelled and what Peck says of life can well be applied to entrepreneurship. Entrepreneurship is not an easy road to travel. Having said that, when pursued for the right reasons and in the right way, it can be a more rewarding and satisfying path than any other.
In this article on entrepreneurship, the writer discusses why a biz-grad should, or should not, consider it as an option and the thorny first steps that are inevitable when one decides to walk this path.

Why Entrepreneurship?
‘Businessman’ was the old tag attached to an entrepreneur. The very word conjured images of a man, usually portly, owning a factory, wearing shades, driving a swanky car and with nothing much to do except order people around here and there. However, nothing could be farther from this stereotypical depiction of a businessman. Entrepreneurship or becoming an entrepreneur is to a great extent about following your own dream. The dream could be something as unpretentious as running a small business on the Internet or as large as setting up your own manufacturing facility. It could be related to cooking, writing, photography, yoga or even singing. In short, an entrepreneur is one who organises, operates and assumes risk for a business venture.

Of late, many MBAs seem to be bitten by the entrepreneurship bug. The first thing that one should remember is that like everything else, the desire to start an entrepreneurial venture, too, may be guided by the right reasons and the wrong reasons.

A note of caution: frustration with the corporate environment due to boring jobs, too much pressure in these jobs (or too less) are among the wrong reasons. “I want to do something on my own” is also not sufficient, unless that something is very clearly defined. You cannot and should not start something just because it’s the latest fad – the ‘in thing’ to do. 

The right reasons can best be captured as: the motivation of a great idea, following one’s dream and listening to one’s inner voice to “do what you are most happy doing.” There are many exemplary people: those who have carved a profession out of the things they love to do. One such entrepreneur is Rashmi Bansal of JAM magazine. There is another set of IIT engineers who formed their own political party, Paritrana. Each of them in their own way has ventured into something they most believe in.

How essential is an MBA for Entrepreneurs?
Now, to the oft-asked question: Is an MBA essential for an entrepreneur? Absolutely not. But if you ask, will an MBA help, then the answer is yes, surely it will. Almost all the skills that one learns while pursuing an MBA degree viz., number crunching, the ability to apply processes, teamwork, organisational behaviour, management practices and networking all come in very handy while running a business. Very often, networking and alumni support turn out to be big gains from the MBA course. An MBA, therefore, is “a nice degree to have” for an entrepreneur.

The important thing is that while there are many MBAs who have taken the entrepreneurial route to success, there are many successful entrepreneurs who have never studied for an MBA.

Entrepreneurial Training
Many institutes offer training for entrepreneurs. Then there are also courses within MBA programmes that have a specific focus on encouraging and promoting entrepreneurship. Such formal training while not exactly vital can prove to make a positive difference to the first time or first generation entrepreneur. Some companies allow entrepreneurs to incubate their ideas within the company’s facilities, thus helping them with initial advice, networking and marketing.

The Importance of Work Experience
As I already said, opting out of corporate careers to start their own venture is not uncommon among business graduates. However, it has been observed that it is only after gaining a few years of work experience, after getting their degrees that many MBAs decide to move into their own. If you ask me, that is a smart and sensible move. Many entrepreneurs I have spoken to admit to having gained a lot from their experience at work. Working in a corporate environment gives wannabe entrepreneurs a view of how a company functions. Apart from teaching them “what to do”, it also provides valuable insights into “what not to do”. Knowledge of processes, systems and other control measures is invaluable when you are starting a new business and your on-the-job experience offers you all that and more.

Stark Realities
Not intending in any way to sound discouraging, let me tell you that entrepreneurship is difficult – there are no beds of roses to begin with. You have to be extremely meticulous and attentive to detail. When one starts a firm, there are legal, regulatory approvals to be got. Once the money comes in, tax planning is a big issue. Those who were salaried employees prior to starting out on their own also need to get used to the feeling of not having a fixed amount being credited to their bank accounts on an appointed date each month. Believe me, that’s not an easy task. Travel brings in stark reminders of budget. When companies send you on travel as executives, you are pampered but even as the CEO of your fledgling venture, you may have to take the sleeper class at times.

Office boys, typists, and secretaries – their services cost money. Whether you are making money or not, these entities have to be paid. From the point where you were dependent on a company, you have come to a point where many individuals are dependent on you for their daily bread. It’s a big responsibility. The initial days, I therefore reiterate, can be tough. There are no casual leaves, no slack times and no leave without pay. The comfort and the backing of the company are no longer there. Every rupee that goes out pinches the pocket of the start up. The weekends, which you earlier used, to refresh yourself for the week ahead, are now filled with things to do.

It is therefore vitally essential that you plan every step of the way before finally embarking on the journey. While no amount of planning can prepare you for the uncertainty of starting off on your own, it helps when your decision to start on your own is a well thought-out one and not one guided by impulse. At this point, you may ask me, how then do I know if it’s the right thing to do? I would say, start off on a small scale. Take a vacation and try doing what you love doing all day long. Try doing this for a week and your passion for it will be evident. To sum up using supply chain terminology, the entrepreneurial decision should be all about “pull,” where the desire to do something pulls you into entrepreneurship. It should not be brought about by a “push”, where the fact that you hate your job pushes you into starting a new venture.