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Infosys is celebrating its 25th anniversary this year. Started in 1981 by seven people, it has turned into a billion dollar company. But can such a success story be repeated or better still, be outdone? This is not just for the IT sector but also for the entire gamut of engineering and technology. It is impossible to build Brand India, without having a whole lot of successful Indian entrepreneurial ventures leading the fray. It is not enough to have Infosys, Wipro, TVS, Bajaj, TCS, Reliance, NIIT, and a few others and be content. The much-touted slogan, “India is a land of employees” can be proved wrong only if more Indians are willing to set up their own companies.

Now Is The Time
Unlike a decade ago, most engineering and technology graduates are not burdened with “better safe than sorry” mentality that their parents' generations were stuck with. This is giving rise to a new breed of entrepreneurs and new companies. Take the example of founder-CEO of Paramount Airways, M Thiagarajan. He is a 29-year-old engineer. He is the youngest CEO of an airline company in the world. He hails from Madurai, a city more famous for its Meenakshi Temple rather than its entrepreneurs. Many of us can start our own companies if we wake up the entrepreneur in ourselves.

There are two types of entrepreneurs. First are those who build a company from scratch and would never sell it like the Infosys team and second are those who build and sell like Sabeer Bhatia, the man behind Hotmail. Both are required to set up top-notch Indian companies.

The latter type is especially more vital, as most people are afraid of taking risks. They fear starting from scratch but would not mind buying a running company. This attitude is very much peculiar to our Indian mentality of buying a house rather than building one. So if you are good at building and selling, you can't ask for a better time to be an Indian in India as you can rake in money easily. 

Challenges That Inspire 
For those who think that they can quit their jobs and start your own companies, there are a few things they need to consider. It is great to be your own boss, but remember you will have to work harder, be more disciplined and organized than ever before. Don't think you can sit back in your seat and watch money pour in or expect instant gratification. Also, if you manage to get the capital, then you need to understand, India doesn't have bankruptcy laws, which means if your venture fails, then the money goes with it too and the banks and investors will be after your life, even if it is your own relatives.

However, the challenges can be met if you follow these five steps before you start.

1 Plan ahead: It is important to raise enough capital to meet the company's needs for at least the first year including bank loan payments.

2 Get a good team: Build a trustworthy team with different talents-marketing, collection, conflict resolution, and day-to-day management. Get a good and honest accountant instead of making one of your friends the accounts keeper. Most importantly one person shouldn't invest more than the other partners should even if they are your best friends, at least in the first ten years. This is business and not a friend's reunion. Keep your private and business relationships separate. Also, reward your employees as you grow and don't be stingy with bonuses.   

3 Know your market: If you are starting a company in a particular field, study the market, customers, and competitors. See if it can add anything extra to your company that will give you the edge and sell this edge to your customers.

4 Be prepared: If you make a profit in the first few years, save most of the money for the tough times, as there can be eventualities. It is not sensible to go on a spending spree. While it is true you need to reward yourself, it is also important to set aside amount for the times when payment is delayed. 

5 Get a mentor: This is important, though most people don't realize it. A mentor could be a retired businessperson with contacts, your professor, a fellow competitor who has been in the field for long, a sensible relative or friend, a finance professional, etc.

As the saying goes, the difference between the poor and the rich is in their spending habits. “The rich reinvest majority of their income and spend what is left over. The poor spend their income and invest what is left over.”  So the mantra is to reinvest, reinvest, and reinvest! It could be in a new machine, a new technology or in your employees by sending them off to improve their skills in another field. This will only increase your company's assets and value.

Enterprising Entrepreneurs
To be an entrepreneur it is not necessary to build a company in the traditional sense. If some of you are grumbling, over the product type that he doesn't have a product but still wants to start his own company. One can even start a no-product company. One could start a consulting firm instead. He could be a home-based consultant, an Internet consultant, or someone who telecommutes. Alternatively, he could do online projects or be an “expert” speaker at various forums. For most of this, one would need some work experience under your belt and one would need to specialize in one particular area. His/her success rate depends upon his/her responsiveness. Repeat orders show that. The person's reputation matters a lot. In addition, this sort of company is very low on investment, but one has to work hectically without expecting much workplace related benefits. However, it is extremely satisfying and is ideal for people who find it hard to get back into the workplace after taking a break to pursue something else. 

Then there is the services sector. One could start a company to satisfy specific needs in an area. This requires small or large investment, depending on the customer needs. It could vary from machine/equipment rentals, machine processing for small–medium companies, customer services for large companies to building septic tanks for houses in a developing area. In a country like India, needs vary from area to area, which is a huge advantage.

If you are the inheritor of an already established company, diversify and start up in a new field.

If none of the above ideas work for you, remember, you are a customer of a wide range of products and services. If you find a product or service less than satisfactory and know how you can improve upon it, start your company. No, I'm not talking of manufacturing new motherboards but customer statements, product recycling, machine refurbishing or a new design of an already available product that has the “extra” edge to the old one be it price or improvement.

Encourage Research and Innovation
It is true that not all of us can be inventors. But most of us can be entrepreneurs. For those who would like to start a product-based company or belong to already established companies, but would like to diversify, it is extremely important to encourage research. You don't need a whole lot of money to do this.

Follow the five steps:
1 Hook up with a local university or your old university or a technical institute.

2 Create annual scholarships in either your name or your parents name or in your favourite professor's name. This will encourage budding scientists to think and not “mug and vomit”. The amount can be 5% of your annual income or if you would like to give it in your company's name, which should be fine too. 

3 Try out the final year project reports of the students at your local college in your company if they are product oriented. We have a lot of them collecting dust in university libraries.

4 Hold annual contests in your local schools and universities to solve problems with attractive prize money. If it works, this could be your company's product and you get automatic media coverage too!

5 Keep in touch with your professors and other academics, who may ask your help for a promising student or students' project.

Remember, engineering and technology are diverse and not confined to IT, so try an inter-disciplinary approach. Even if you are not starting a company, follow the above five steps to encourage innovation and who knows you may become one of the primary shareholders in the next big venture.

Become an entrepreneur or help a budding entrepreneur and innovator to flourish. It is not tough to start a company in India. Don't wait to become an entrepreneur. Start young. If you are 25, don't wait until you turn 40. If you are 40 already, don't wait until you turn 60. Start small, think big, and persevere. Wake up the entrepreneur in you.

Deepa Kandaswamy
The author is the founder-moderator of the IndianWISE e-group
maildqindia@cybermedia.co.in

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