A head start: Book Review 11th May 2014

HOW EASY is it to start one’s own enterprise? Maybe around a decade back, it was fairly cumbersome, as it involved a long wait until plans were put together, premises obtained, resources mobilised, clearances obtained and so on. In fact, there were several barriers to starting a business, as there were too many constraints, especially for a small entrepreneur. So invariably, it was always big companies competing against each other, while small ones struggled to find their bearings. But things have changed now. If we were to go by what Scott Duffy has to say, we can actually start our business in a span of 90 days. While this sounds simple, it is not quite so, as there are lots of things to be put in order before reaching that mark. In fact, for starting a business, Duffy says, 90 days are actually the upper limit. Ironically, while things are easier now, they are also more challenging, as there is always the fear of someone getting ahead of us. This is the basic theme of Duffy’s book Launch, in which he lays down steps to be traversed to launch a business. As per Duffy, gone are the days when one could sit, think and research intensively before zeroing in on an idea and then start looking for finance, the right people and so on. Today, everything is available at the click of a mouse. With the help of the Internet and social media, we can get ideas, discuss them, communicate with the world, take inputs from others and bring the project to fruition. Almost all administrative processes can be addressed through a single click. This way, individuals score over large companies, which are more structured and process-driven. This means that they invariably take much longer to implement things. Duffy believes that when we have less time, we tend to be more focused and hence efficient. In fact, in 90 days, one can go to the market, test the efficacy of the product, take feedback and make a well-informed decision on what to do next. Launch is like a guidebook with a lot of common sense. What Duffy says is not really a revelation, but practical wisdom. He breaks up the 90 days into three phases of 30 days each. Let us look at these three phases: the first stage is what he calls a checklist for the pre-launch. Here, we need to crystallise what our big idea is and be clear about it. It needs to be broken into small pieces, so that we can take them up sequentially. Duffy’s advice is that we need to surround ourselves with the right people and, more importantly, think big. That is the only way to succeed. Among the preliminaries is that we should be clear about how much we are willing to risk. We should avoid mixing personal wealth with business capital. Duffy talks about having separate accounts and hiring a book-keeper and attorney to ensure we are on the right track. Interestingly, he also talks of the need to have a chief venting officer. This could be your spouse who hears out your frustrations with no obligation to provide solutions. Duffy gets a bit philosophical and says when things do not go well, we should learn from these experiences. We have to ensure that one’s personal risk is minimised. This way, even if things do not work out, one can come back to the starting line without much loss. The second stage is what Duffy calls fuelling the tank, where one has to put together essential resources: human and capital. Here, the suggestion is that we need to be sure of what we want and which product to sell. We need to start from the last page and identify what can possibly come in our way, so that we have an exit strategy in place before we start the enterprise. As an entrepreneur, one also has to decide which jobs are meant for us. Should we be looking at the larger picture or try to do all the jobs: being a CEO, administrator, accountant and so on. Clearly, we need to work on our strengths and let other recruited experts look after their core competencies. This way, attention is not diverted from the core objective. However, one has to keep a check on the cash box to ensure that money is spent on the right things. The last stage, which Duffy calls the countdown and blast-off, is where we take the product to the market. His suggestion is to do one thing at a time. He explains this with the example of using a hammer and nail, as opposed to using multiple hammers and nails—the latter approach doesn’t work. It is better to create a single, perfect product. For salesforce, he favours crowdsourcing. The power of social media can hardly be emphasised upon here. Launch is more of a help book on what should be done when one is planning to start a business. The stress is on the steps that need to be taken and these hold for any line of business. Most of what has been espoused in the book cannot be contested, as it is based on simple logic. More importantly, it makes sure that we work with timelines and protect our wealth by separating it from business capital. Realising our own strengths, working on them, leaving other jobs to experts and understanding the risks and potential losses will make the journey safer. That, in short, is the essence of launching a successful business.