Customer intel is the key

In this interview, Mr ArjunValluri, a multi-faceted entrepreneur, shares with passion the lessons learnt in his entrepreneurial journey.

Mr ArjunValluri served as the Founder, Chairman, President and Chief Executive Officer of Intelligroup Inc., from 1993 till 2005. Intelligroup Inc., the first Indian company to go public on the Nasdaq (1996), provides systems integration and IT outsourcing services and employs over 3,000 professionals worldwide.

In 2005, he diversified into hydropower, consumer electronics and Food & Beverage sectors. He is also a strategic investor in real estate and agriculture.

He is an investor in the companies of HUL Hydro and Indus Renewable Energy. He is the Managing Director of Blaze Automation Services Pvt Ltd, which designs, compiles and manufactures Home Automation, Security and RFID Technologies. He is a key investor in the food and beverages sector and owns the brands of “Xtreme Sports Bar” – chain of sports bars, “My Café Latte” – chain of coffee Shops, “SUN” – corporate catering services, “Quiznos” –Master Franchisee of South India and also runs a supply chain and logistics company “Quattro” Logistics.

What are some of the mistakes committed by you in your initial stages of being an entrepreneur?

Mistakes are committed not necessarily during the early stages but throughout the journey of being an entrepreneur. It is important for entrepreneurs not to repeat the same mistakes. Some of the ones that are vivid in my memory are:

When I recruited my sales force I trusted them to deliver at least 50 per cent of what they had committed to. Their commitments remained a “pie in the sky”. I gave them a real long rope to perform.

Going after loss making customers with the hope that it is going to turn around one day. Assessing the potential of a relationship during the early stages of servicing the customer is critical.

Share two lessons that you have learnt that stands out in your entrepreneurial journey.

Cut your losses fast – Any business that you build when you realise that one outlet is doing well then it is natural that you try multiple units in order to scale the business. You give the new outlets some time to make profits. You also start taking money from profits of other businesses and put into these new outlets. The key is for you to know when to pull out and cut your losses on the outlets that don't perform well.

Watching your customers closely - You have to keep looking at what they want. In the F&B business, the customer requirements are constantly changing. Your product offering has to keep pace with the need. You have to be creative and offer alternate products to always meet the ever-changing need of the customers.

What is your advice to young entrepreneurs?

Keep your eyes on the ground all the time. You need both formal and informal channels to understand what your customers want.

Look at various ways to cut costs. This will help build a viable business. Know your cash flow position all the time.

Lastly, most important is to do what you love. Chase the joy of doing something that you will do because you love it so much. The joy of playing cricket or billiards or singing is what is chased by Sachin or Geet or Lata. What the society bestows upon you is called ‘success' which may or may not be permanent.

(The author is the CEO of Energeate, an advisory firm for early stage ventures and cross-border companies. He is a Charter Member of TiE Chennai)