The Hustle in the Business
Dinesh K Kapila
This is the most difficult part of teaching entrepreneurship, specially as often the faculty has itself very limited hands on experience of entrepreneurship or exposure to a business. The concept, the laws, the mode of raising resources and recruiting staff is often easy to impart but on the financials there is always a fine line. Marketing and sales also normally sails through. Though it would be better picked up by experience. But the hustle, in attracting and retaining customers and more importantly on arriving at the margins and sales cost, Is often a major concern. This can often mean being satisfied with a minimal surplus while a sharp entrepreneur could spot the areas to hustle and enhance margins and even identify opportunities for a spike in pricing with a few tweaks of the product or service.
This comes by experience and delving deep into the area by way of the knowledge of the trade / supply chain and it’s intricate working. But the actual value to be arrived at is always a concern for an entrepreneurship venture. To undercut, discount or match or go premium are always open to discussion plus in a start up more so. Revenue has to flow in and more so a steady surplus. And relationships have to be cultivated and maintained over the long term alongside and repeat orders and footfalls ensured. Mutual satisfaction and at the same time maintaining margins and planning for premiums within a category is the key.
Once I read a short piece about being effective in the hustle of a business. The author argued that she actually left her position at a then start up in the cab aggregator business as she felt uncomfortable with the value being extracted and the hustle in the business. She was comfortable with the analysis of data and spotting opportunities but the hustle involved in the actualisation of the opportunity and generating a surplus made her uncomfortable.
Being a DFI guy I discussed this with my brothers, both senior executives in private sector large businesses. Their immediate response was what’s a business without a hustle. As long as it’s within the law and general principles of business, it’s all in the game if entrepreneurship . It’s like a weaver I know from the southern parts of India. He sells his Sari say for Rs 16200/- to some one I have recommended him. The same sari is also being sold by an aggregator for Rs 21500/-. And at a good sari shop for Rs 25000/- and at a premium store for Rs 30000/- nearly. All are making money. After all even at Rs 16200/- the weaver made his money. All are happy. I mean the entrepreneurs !
Going forward, as a lady running a beauty parlour (post training and among the better ones) told me long back it’s a cream Of Rs 15/- and a massage of Rs 100/-. She had picked it up fast. One relation in a major textile company told me if they changed just the weave and pattern they would extract more value within the same range as the customer perceived it as a better product ! Lawyers and Doctors in independent practice are also entrepreneurs. While the doctors do charge a uniform fees per consultation, a lawyer has to decide his own value before naming his fees for a particular case. Starting out often a young lawyer is under stress about the amount to be quoted and often underplay themselves. And a doctor once told me he was fretting and fuming as the previous patient had stated he was over charging. He told me you pay a lawyer the quoted fees but with a doctor you at times do not perceive our value as medical advisors. Here also I know a doctor who hands out imported products along with the advise and then charges a hefty premium but often patients pay up with a feeling of gaining a premium service. Interesting is what a young doctor did on setting up his own practice. He requested his cousins and friends to sit in his reception room so that an outsider felt he was busy. Or a lawyer who would keep the lights on and air conditioner on to project he was busy and doing well. Watch the packages of the telecom companies- to give a wide range of services but all the same designed so well that they lead you to the enhanced revenue streams.
And to end it off, here is the story of a farmer who could hustle. From the times when The Gods walked the Earth. Which place and which religion is not relevant. The Gods had been told about this financially wise farmer and they approached him to test him. They stated 50 % of what he grew and harvested was theirs. The farmer decided not to make it an issue but stated would their condition apply to the crop above the ground. They said of course and what else would it be. Well when the time came, the farmer had sown peanuts. ! They were left with leaves. They immediately decided that the next crop was theirs but only below the ground. Being Gods they did not know Agriculture. Well the farmer quietly cultivated wheat. This time the Gods said 50 % of the crop at harvest was theirs, below the ground and above. The farmer simply stated obviously the top part above the ground and they agreed after holding mutual consultations. All the while the farmer maintained a gracious cultivated air. Well he actually cultivated maize!! Nothing at the top and nothing below. That left them flummoxed but amused by his ability to hustle ever so nicely and politely and smoothly. They thanked him for the lesson and went away.
This then is the context. Hustle not in the negative sense but the ability to bargain and anticipate and negotiate the advantage in a deal while keeping the relationship engaged.
It’s a lesson most learn ever so slowly unless a wise mentor or advisor is around. Give value but earn your justified value. Plus try for a bit more. Just a share.
DKK
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