Emtrepreneur November 2012 by Infomedia18

Three Creative Business Ideas That Were Before Their Time PG 70

NOVEMBER 2012  VOLUME 4  ISSUE 3  `100

www.entrepreneurindia.in

DEEP IMPACT

Doing Good, Making Money,

Changing India A bunch of people are using innovation to power their ventures and bring about social change PG44

Naganand Murty (left) and Rahul Panicker of Embrace Innovations, makers of low-cost warmers for premature babies

The Real Batsmen of Meerut PG 62

The Gururaj Deshpande Interview

PG 34

Samsung’s High Note

PG 100

5 Startups to Watch Out For

PG 105

TABLE OF CONTENTS INSIGHTS

COVER STORY

18 The Patent Trap

44 The Good People

R. Jagannathan explains how the recent patent war is an effort to keep competition out

The social sector and business can coexist. Many entrepreneurs have built a business model around the social sector benefitting the target audience and being profitable too. Entrepreneur looks at success stories of some people who have created innovation and technology-based businesses ranging from infant warmers, potable drinking water for rural India, to increasing yield of sugarcane by reducing the use of water, and many more. By Shruti Chakraborty

20 9 Gems of High Growth Ravi Kiran looks at nine elements which are essential for a company to grow

22 No Peak Too High

58 For Goodness’ Sake

Nandini Vaidyanathan talks about the lessons in entrepreneurship she learnt during a recent trip

24 Women in Charge Richard Branson talks about the need for more women to make their presence felt in the boardrooms

Social entrepreneurship is not frowned upon anymore given the fact that many entrepreneurs want to and are venturing into this space. However, the ones who have been around haven’t been able to garner investor attention and a lot more needs to be done By Shruti Chakraborty

IN CONVERSATION

MY STORY

32 ‘There is no shortage of talent’

40 Snap Happy

Rasmus Ankersen, author and anthropologist, talks about the importance of identifying talent beyond college degrees and how to attract good people in the workplace By Shruti Chakraborty

After his entrepreneurial experience in the US, Kunal Bahl, Co-Founder and CEO of Snapdeal, shares the peaks and troughs that define his success as an entrepreneur

IN FOCUS

25 Germany Likes China! Bharat Banka wonders if there is more than what meets the eye between Germany and China

26 The Strategic Sale Fix Manish Sabharwal provides clarity on the role of a strategic investor

28 Nurture to Progress Anurag Batra exhorts established businesses to help aspiring ones to foster the spirit of entrepreneurship

34 ‘Most successful companies started during recessions’ Gururaj ‘Desh’ Deshpande, an Indian-American venture capitalist, shares his observations on the economic slowdown, what makes an enterprise saleable and why entrepreneurship is a journey

31 Strengthen your Assets Rajeev Surana talks about the importance of intangible assets during the sale of a company

62 Bat Men Two companies, located in the city of Meerut, are the biggest suppliers of cricket equipment

By Bindi Shah

By Pranbihanga Borpuzari

WOMAN ENTREPRENEUR

SPECIAL FEATURE

38 The Lady and her Armor

66 What it Takes

Aman Singh, a former school teacher, spotted potential in the security systems market and hasn’t looked back since

There are a few essentials to be kept in mind before embarking on an entrepreneurial journey

By Avanish Tiwary

6 Intelligent Entrepreneur  November 2012

By Abhay Pandey

THE FUNDING

SPECIAL

SUCCESS INC 62 IN A LEAGUE OF HER OWN As Co-founder and CEO of Indus League Clothing, Rachna Aggarwal has built an umbrella of apparel brands, each with a distinct style and place in the industry. By Shonali Advani 68 RULING THE REALTY SECTOR

Even after building millions of houses in the country over four decades, there is no stopping Sushil Kumar Ansal when it comes to the expansion of his construction business. By Sunita Mishra

71 HOME IN ON SUCCESS Know more about affordable housing, an emerging segment in the housing sector in India. By Team Entrepreneur 68

MONEY DEPARTMENT 81 BETTER BILLING

Know the changes you need to make to your invoice to get paid faster. By Gwen Moran

STATE FOCUS 82 WESTSIDE STORY

Gujarat has become the epicenter of economic activity in the country. Besides labor harmony, infrastructure development, socio-economic reforms and an investorfriendly climate, it is the entrepreneurial nature of the people which has gone a long way in making the Gujarat story a successful one. By Pranbihanga Borpuzari

86 CORRIDOR OF GROWTH As the country’s most ambitious mega infrastructure project worth Rs.4.05 lakh crore—the Delhi-Mumbai industrial corridor— gathers steam, Entrepreneur does a ground-level reality check to know how it will help boost trade. By Pranbihanga Borpuzari 92 THE TRICK IS IN THE IMPLEMENTATION Here’s a look at how Gujarat leads the country in ensuring industrial policies are executed properly. By Dinesh Awasthi

December 2011  Intelligent Entrepreneur 7

TABLE OF CONTENTS TECH DEPARTMENT

100 The Notable Note The Samsung Galaxy Note II is a great smartphone for sure, as long as you are okay with its gargantuan size and its equally hefty price

STRATEGY

GETTING THERE

68 The Digital Chord

80 Driving in the Dough

Digital distribution is changing the way music is being made and heard

Central Parking Systems has brought about a transformation in the parking systems space and N Satyanarayanan, the pioneering spirit, is enthused about the next growth plan

By Avanish Tiwary and Pranbihanga Borpuzari

OFFBEAT

Shonali Advani

By Ankush Chibber

103 Teeing off with the T The newly launched Sony Vaio T appeals on many counts as an ultrabook— from its size, style and price By Ankush Chibber

70 3 Creative Business Ideas That Were Before Their Time Timing is of utmost importance to make or break a product By Margaret Littman

71 4 Innovative Business Ideas That Changed Everything These innovations traversed from being mere thought to sound business sense By Margaret Littman

SUCCESS INC

84 The Flying Carpet Jaipur Rugs has given a fillip to the indigenous craft of weaving and provided employment to thousands of weavers in the country By Avanish Tiwary

WATCH OUT 88 ‘Constant market insights are crucial’ Parvati Menon of Innovation Alchemy outlines ways to revolutionize business which will help in scaling the company

GO FRANCHISE 90 The Game Changers Innovations provide the edge to franchising taking it way ahead of its traditional meaning

REGULARS

By Jason Daley

11 FEEDBACK 12 RESOURCES 14 ASK ENTREPRENEUR 16 CAPSULE 134 BACKSTAGE

ONLINE IDEAS 72 Kolkata Chromosome From cement to realty, Harsh Neotia of the AmbujaNeotia group has changed Bengal’s realty market with a turnover of `1000 crore By Sriya Ray Chaudhuri

8 Intelligent Entrepreneur  November 2012

98 5 Scary Mistakes to Avoid on Facebook Getting on to Facebook is the easiest part but to establish your company’s reputation, you should be aware of the pitfalls and how to stay clear of them By Scott Levy

TABLE OF CONTENTS MONEY

STARTUPS

HOW TO

106 Grey Matter

120 Spot a Bad Employee

Recycling waste water is the solution to water scarcity and Harshad Bastikar’s Jaldhara Technologies works on that front By Trishna Guha

A bad employee can prove to be damaging to your company apart from demotivating others in the workspace By Ramanujam Sridhar

122 Create a Social Media Policy It is necessary to have a social media policy to help you empower your brand. Choose the right people to use this medium efficiently

95 Analyze your Business Expenses Find effective ways to evaluate the cash flows in your business which will benefit you in the long run

By Ashok Lalla

108 Insurance for your Wallet Two entrepreneurs, Gagan Maini and Subrat Pani, have devised an innovative way to reduce stress when you lose your phone, wallet or essential documents

124 Deal with an Unsuccessful Franchise

By Shruti Chakraborty

By Pranbihanga Borpuzari

Franchising is a good way to expand your business, but if a franchisee fails to succeed, be quick to take action

Joe Worth

126 Build a Better Brainstorming Session

97 Make your Money Work

Developing an effective brainstorming session will increase productivity and ensure a smoother workflow

A few factors that will help you deal with cash surplus and ensure that your hard work is not diluted

By Caroline Tiger

SPEND IT

By Surya Bhatia

110 Commuter’s Constant Companion From route finders to emergency contacts, Ideophone’s mobile applications ease the traveler’s travails By Shonali Advani

114 Read All the Way Vijayakumar Radhakrishnan and Girish Ramdas’s venture in the global digital publishing industry is set to revolutionize the way one reads a magazine By Avanish Tiwary

127 Quick Peek at Pico Café Pico, a restaurant in Mumbai offers fine dining options making sure it's worth your money By Sriya Ray Chaudhuri

129 Italian Invasion

COVER CREDITS

Shatranj Napoli and the Polpo Café in Mumbai are a good choice to consider for some great Italian food Sriya Ray Chaudhuri

130 Count on Camry The latest version of the Toyota Camry is the costliest sedan with an upmarket feel.But will it succeed? By Pranbihanga Borpuzari

SHELF LIFE COVER DESIGN

Arko Provo Mukherjee

COVER IMAGE Bmaximage

116 After Hours

133 Diamonds, Drugs and a Scam

MAD Orders are among a few startups that has ventured into a space where many entrepreneurs choose to stay away

Excerpts from an interview with Ravi Subramanian, the author of The Bankster, where he speaks about his dual career as a banker and a writer

By Julie Sam

By Sulekha Nair

10 Intelligent Entrepreneur  November 2012

FEED BACK

"O JOUFSFTUJOH SFBE I must admit this is the first time I picked up your magazine. The cover story titled â&#x20AC;&#x2DC;Round Twoâ&#x20AC;&#x2122; featuring Malvinder Singh has been well-reported. It is commendable how the story truly encapsulates the feeling of an entrepreneur. the focus on business philosophies backed with facts and figures for every cover story, is what sets you apart. I aspire to become an entrepreneur, but at this stage, I donâ&#x20AC;&#x2122;t know much about it. Also, none of the folks back at home ventured in the family business. Iâ&#x20AC;&#x2122;m looking forward to your guidance. - Shantunu Tomar Via e-mail

3PMF DMBSJUZ This refers to the cover story titled â&#x20AC;&#x2DC;Round Twoâ&#x20AC;&#x2122; in your magazine dated October 2012. We would like to point out that the sentence in the last paragraph on Pg 52 , â&#x20AC;&#x153;Singh, in his capacity as executive Chairman at Fortis, takes care of the international arm of Fortis Healthcareâ&#x20AC;? conveys a wrong impression to the readers. Mr. Malvinder Singh and Mr. Shivinder Singh, as Executive Chairman and Executive Vice Chairman, are on the Board of Fortis Healthcare Ltd. and provide guidance to the operating team both in India and Internationally.

Mr. Vishal Bali heads the operating team globally as Group CEO. Mr. Aditya Vij Heads India operations and reports to Mr. Bali. On the International side, Mr. Aik Meng Eng has the operating responsibility for International operations and he in turn reports to Mr. Vishal Bali, Group CEO. - Raghu Kochar Sr. Vice President â&#x20AC;&#x201C; Corporate Communications, Fortis Healthcare

7BMVBCMF JOTJHIUT First things first, let me congratulate you guys for the efforts you put for the magazine. I am thankful to Team Entrepreneur for their valuable work. I have been reading your magazine for the past four months. However, there are two concerns that Iâ&#x20AC;&#x2122;d like to raise. I believe that the cost of the magazine is a little too high, hence, I am unable to purchase the magazine. Fortunately, there is a central library in my area and now, I can finally procure a copy of the magazine. Since then, I have been reading Entrepreneur. Entrepreneurship is the need of the hour. Major innovations are still created at grassroot levels. Hence, it would be great if the magazine is published in regional languages too. Cheers! - Manoj Kumar Via e-mail

'SPN UIF 8FC 0O UIF TUPSZ A5XFMWF ZFBST BOE DPVOUJOH This story by Faisal Farooqui made some thought-provoking arguments. This, coupled with a strong connect of words. Keep up the amazing effort, Team Entrepreneur! - Diablo Gold 0O UIF DPMVNO A" NJMMJPO CPTTFT OPX This story was apt and to say the least, encouraging! This column is a must-read for all sales and marketing guys as well. I hope the writer does

write some more such enlightening down-to-earth stuff. - Gyaan Anand 0O UIF DPMVNO A(SBC UIF PQQPSUV OJUZ XIFO JU DPNFT This column, written by K Anji Reddy for the India Inc. Vision 2015 made for an interesting read. I have enjoyed browsing through all the stories on the website and I wish to subscribe to the feeds. - Styro George

CONTACT INFO t 8SJUF MFUUFST UP Entrepreneur Network 18 Publishing 2nd Floor, â&#x20AC;&#x2DC;Aâ&#x20AC;&#x2122; Wing, Ruby House, J.K. Sawant Marg, Dadar (W) Mumbai - 400028 ..................................................... t F NBJM editor.entrepreneur@ network18publishing.com ..................................................... t 5P 4VCTDSJCF SMS IE to 51818 Call 91-22-3003 4631/33, or Log on to http://eshop.infomediaindia.com ..................................................... t 'PS TVCTDSJQUJPO RVFSJFT customercare@ network18publishing.in Letters may be edited for brevity and clarity.

To read more, grab the November 2012 issue of ď&#x201A;&#x201E; November 2012 11 Intelligent Entrepreneur Entrepreneur To Subscribe, visit www.entrepreneurindia.in

IN SIGHTS

NEWTHINK

The Patent Trap It is more about keeping the competition out

[ R. JAGANNATHAN ]

EVER SINCE A US court handed Apple Inc. a muscle into your market and prevent you from whopping $1 billion in damages in its patents overpricing your product. war against Samsung last August, every innoPatent law vs. greater good vator must have seen dollars floating before his There is also the greater good concept with IPR. or her eyes. For example, original drugs cost a lot to create, but You create something new, patent it, and if a government is faced with a public health issue, bang—if anyone copies your idea, you collect a the common good trumps IPR. big booty (at least in the In February this year, the US, where the court system Many thinking heads Indian government directed works perfectly). In India, are beginning to wonder Bayer to license its anti-cancer where we have raised the if patents are being used drug Nexavar to Natco Pharma idea of copying into a fine art, few inventors have made to promote innovations since the former was not making it available at a price that patients a killing out of new ideas or or stifle them could afford. The Nexavar patent patented intellectual propis worth little in India now. erty. Some copycats have A few weeks before Apple won paid for their brazenness, its patent war with Samsung, a thoughtful judge whether it is Bollywood music directors or producin the US simply chucked another Apple patent ers. The latest blockbuster, Barfi! is said to have suit against Motorola (and Motorola’s counterseveral scenes lifted from many Hollywood blocksuit) saying there was no damage caused. In any busters, but, hey, “We are like that only.” case, minor infringements cannot be cause for Anti-patent mood patent cases. To be sure, in India, too, we have a patents law, but The US Circuit Judge Richard Posner’s verdict we are so bad at protecting Intellectual Property said both litigants were fighting a shadow war, and Rights (IPR) that they almost don’t matter. But if not for real losses; though not in so many words. you were to infringe anyone’s patent in the US—as He said, “The notion that these minor-seemSamsung found out to its cost—you have had it. ing infringements have cost Apple market share But a new anti-patent mood is gaining slight tracand consumer goodwill is implausible, has virtution in the US. Many thinking heads are beginning ally no support in the record, and so fails to indito wonder if patents are being used to promote cate that the benefits to Apple from an injunction innovations or stifle them. would exceed the costs to Motorola. An injuncThe reason is simple. Unlike physical goods, tion that imposes greater costs on the defendant ideas and innovations do not actually cause than it confers benefits on the plaintiff reduces much damage to the original inventor (usually) if net social welfare.” they are stolen. Keeping competition at bay If I steal your lunch box, you don’t get lunch. Social welfare is becoming the important issue But if I steal your idea of creating a touchscreen in patents. The problem is companies patent too mobile phone, you can still sell as many phones as much; even simple things like design. Apple, for you can convince customers to buy. I may merely 18 Intelligent Entrepreneur  November 2012

Photo Joshua Navalkar

instance, patents design features like “Slide to sagging bottomlines rather than to encourage power off” or some visual features like square more innovations and discoveries. The pharmaicons with rounded edges. ceutical industry, for example, is one of the stronTim Worstall, a technology writer, said as much gest votaries of strong patent laws and justifies in a Forbes.com column after the Apple-Motorola this protection as vital for ensuring investments verdict: “The important point here (is) that IP is not in costly research. some natural right: it’s a deliberately constructed But what the patenting system actually does is edifice to increase invention and innovation. And enable the likes of Pfizer to produce a Viagra—a there’s an awful lot of people who think that this lifestyle drug meant for male erectile dysfuncsystem has gone too far. Patents are now being tion—and give it the same protection as a discovissued on what 30 years ago would have been ery with potentially life-saving characteristics, considered absurd bases: one-click shopping, slide like an anti-AIDS drug. A Viagra will always make to unlock features.” He added: “Further, these overmore profits than an anti-cancer drug, and so the wide (patent) issuances are being used to restrict best efforts of Pfizer will go in this direction. invention and innovation in subsequent rounds The working paper also notes that great innovaof technological development.” As an example, tion has seldom been the result of patent protecthere cannot be that many outside Apple itself tion. It says: “The initial eruption of small and who really believe that the European case against large innovations leading to the creation of a new Samsung over the Galaxy industry—from chemicals Tablet is really about design to cars, from radio and TV There is a strong case patents. The general assumpto personal computers and tion is that it’s about keeping investment banking is seldom, for either abolishing a competing product off the if ever, born out of patent patents completely market by any means possiprotection and is, instead, the or, at best, giving ble. For long enough that it fruits of highly competitiveprotection only for doesn’t get a foothold in the cooperative environments. said market. It is only after the initial truly earth-shattering In short, many patents are stages of explosive innovainnovation about keeping the competition and rampant growth end tion out, not about encouragthat mature industries turn ing IPR. toward the legal protection of patents, usually because their internal License to hijack innovation growth potential diminishes and the industry A recent working paper by Michele Boldrin and structure becomes concentrated.” David K Levin from the research division of the But won’t the lack of patents make it less worthFederal Reserve Bank of St. Louis makes a bold while to make an attempt at innovation? Boldrin case for abolishing patents altogether. and Levine don’t think so. The authors claim: “A closer look at the historiThey say, “There is no empirical evidence that cal and international evidence suggests that while they serve to increase innovation and productivweak patent systems may mildly increase innoity, unless the latter is identified with the number vation with limited side-effects, strong patent of patents awarded—which, as evidence shows, systems retard innovation with many negative has no correlation with measured productivity.” side-effects. Both, theoretically and empirically, Monopolist gains the political economy of government-operated The message is clear: Patent protection is for patent systems indicates that weak legislation will the failing monopolist. There is a strong case generally evolve into a strong protection and that for either abolishing patents completely, or, the political demand for stronger patent protection at best, giving protection only for truly earthcomes from old and stagnant industries and firms, shattering innovation. not from new and innovative ones. Hence the best India, which has never had much respect for solution is to abolish patents entirely…”. IPR, can take the lead. Clearly, the authors think a strong patent system like the one the US has is actually a license R. JAGANNATHAN is the Editor of Firstpost.com to hijack innovation to favor incumbents with

To read more, grab the November 2012 issue of  November 2012 19 Intelligent Entrepreneur Entrepreneur To Subscribe, visit www.entrepreneurindia.in

IN CONVERSATION

‘Most successful companies started during recessions’ Gururaj ‘Desh’ Deshpande left India in 1973 when he was just a student. Today, he is globally active as an Indian-American venture capitalist and co-chairs the US National Advisory Council on Innovation and Entrepreneurship, a group established to support President Barack Obama’s innovation strategy. In an exclusive e-mail interview with Bindi Shah, Deshpande shares his views on the global slowdown, and why entrepreneurship is a journey and not a destination

Q: We are in the midst of interesting times right now with some parts of the world in deep recession, while many others are inching back to normalcy. In context of the global slowdown, do you think it is right for new businesses to take off? Should entrepreneurs wait for a while before starting up? A: Most of the highly successful companies in the world were started during the financial recession. For an entrepreneur, any day is a good day to start a company. In some ways it is easier during the global slowdown because it is comparatively easier to recruit talent. Also by the time the product is ready for the market, it (the market) would have recovered. 34 Intelligent Entrepreneur  November 2012

Q. You are based in the US, where the economy is showing signs of stability and growth. Also, many new businesses, especially on the technology side have come up. Where do you see entrepreneurship heading in the US? What has changed under Obama’s leadership in the US for entrepreneurship? A: The US has always led the world in innovation and entrepreneurship. For the last 25 years, it has been a nice change to have. For the next 25 years this will be the main thing to have in the US. Hence, the country has to excel in innovation and entrepreneurship to create new jobs and maintain its standard of living. Obama’s administration fully supports the idea that innovation

and entrepreneurship are essential to create jobs. The National Council I co-chair has identified that we need policies to bring together four issues. The first issue is of new ideas. The US funds $150 billion every year to support research. This research needs to create more new relevant ideas that will have an increased economic and social impact. The second relates to entrepreneurs. The

‘Startup America’ campaign has been launched to promote entrepreneurship. The third focuses on mentors. The US has a lot of seasoned, successful entrepreneurs. We are finding deliberate ways to connect them to younger entrepreneurs. The last issue we are looking at is access to capital. Based on our recommendation, both the Congress and the Senate passed the Jobs Act with Photo Rolex Awards/Jess Hoffman

bi-partisan support that eases access to capital for younger companies. Q. Considering the current global scenario, what should be the focus market for Indian entrepreneurs? (Asia, India, the world, etc) What should be their growth strategy if they have to scale? A: The Indian IT industry has shown how they can innovate and execute

services to global markets. The next wave of opportunities for entrepreneurs is to develop products for the domestic market and then take their solutions to the global market. Necessity is the mother of invention. The necessity in India is for very affordable solutions that can scale to millions. This creates an opportunity for Indian entrepreneurs to come up with solutions at cost points that

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COVER STORY

AgSri B Frontier Markets C Promethean Power Systems D Jayashree Industries E Waterlife F Embrace Innovations G Vortex H HarVa A

D B 44 Intelligent Entrepreneur ď&#x201A;&#x201E; November 2012

The American singer-surfer Jack Johnson asked in one of his more brilliant songs—where’d all the good people go? Well, by our account, they are heading to India, if not already here. India’s social sector is open for business. Some might cringe at associating social with business, but there is little doubt that change can be brought about as much by an entrepreneur as any nonprofit entity. Over the last few years, we have seen first hand the growth of innovation-based businesses in India that have done more than their bit in changing the paradigm of rural life—be it by technology or innovative business models. If you looked around, you would see how young entrepreneurs from India, and of course, around the world, are creating businesses far from the public eye that are pushing rural India towards a better tomorrow. We did. HERE ARE EIGHT OF THEM. Shruti Chakraborty With Shonali Advani and Avanish Tiwary

F G

Imaging Chaitanya Dinesh Surpur

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SUCCESS INC

[ HOUSE THAT! ]

KOLKATA CHROMOSOME Harsh Neotia, Chairman, AmbujaNeotia group, has been one of the most prominent faces of Kolkata’s changing realty structure SRIYA R AY CHAUDHURI

he sprawling Ecospace commercial hub in Kolkata stands out like a beacon from a fair distance. As our car eats up the miles and the futuristic glass façade buildings cluster comes closer, it is evident that the AmbujaNeotia group has sprung another successful venture in Bengal’s realty market. The Chairman of the group Harsh Neotia welcomes us into his office, which is located in one of the buildings within the complex. The 51-year-old speaks in a deep baritone, as he takes us down memory lane from the days of his family business of cement (Gujarat Ambuja Cements Ltd and Ambuja Cement Eastern Ltd) to the present day, when the group has interests in a bouquet of realty ventures, including residential complexes, hospitals, hotels & hospitality and offices.

The reality of realty “Our real estate business had a net profit of `6 crore in 2006 with a `90 crore turnover. Today, the turnover is `1,000 crore, with around `125 crore as net profit,” says Neotia. The journey has taken place in a staggered manner, forays into realty were at times put on the backburner, when the family’s core business of cement demanded precedence and manpower help at the top. “Our cement plant was set up in a slightly remote part of coastal Gujarat, at about the same time when 72 Intelligent Entrepreneur  November 2012

I completed my college education. Not wanting to stay in such a godforsaken place, I never had any interest in the proceedings. My father was very keen that I shift there as cement was a sizeable investment for the family,” recalls Neotia. But the young man was overawed by the business whenever he visited the plant. It was too complicated for his liking. He wanted to begin his entrepreneurial journey with something simpler and more creative, and something in Kolkata, as he admits to a ‘Kolkata fixation’. “My family was based in this city but we did not have any business here, just a trading network. This is when fate intervened. One evening, my father’s friend came over to our house and mentioned that he planned to dispose of an over-4,000 sq feet plot he had in central Kolkata. I happened to be sitting there, and someone said this is an opportunity to get into the realty space,” he remembers. The problem was that he didn’t know anything about buildings. The family house too had been built by his grandfather. But the 22-year-old was quick to grab the opportunity as the only means of getting out of moving to Gujarat. “That conversation over coffee was the turning point of my life. It took me 18-20 months to do the project, and it turned out to be much better than we had estimated. It was like a little pat on my back. My father’s friend earned more money than he had anticipated from the sale, so he was happy too. In hindsight, I realize that the profits were like petty change for the family, a few lakh perhaps. But it started the process for me,” says Neotia. He worked on seven-eight projects over the next five years, with 10 buildings. These were small projects, each with 12-20 apartments, which were strewn all over the city. The family had interests in a coal washery in Dhanbad with a partner. This led to securing a couple of building projects there. However, by 1989, Neotia was getting restless doing only small projects. He felt the time was right to something bigger. His fascination for the river took

him on a year-long search for a suitable riverine property. After 50 trips here and there, he chanced upon Raichak. He was told 60 acres were available to be purchased, which was owned by 60-70 villagers. But subsequent meetings revealed that there were actually 400 villagers who owned that 60-acre land. So, it took four years to buy that land, as the owners were spread all over the world and some didn’t have the necessary papers in place. “Twice I felt this is not going anywhere. My father said this was a stupid idea. But I told him, ‘Papa, trust my judgment’. Of course, I must confess that as an only son, I was privy to some parental indulgence. So, though my father never fully warmed up to the business idea, he relented. He was too busy with the cement works

AMBUJANEOTIA PROJECTS

Realty: Residency, township, retail, business parks Hospitality: F&B, hotels, resorts and spa, clubs and banquets Healthcare: Hospitals Education: Neotia Institute of Technology, Management & Science, The Rabindranath Tagore Centre for Human Values anyway,” recalls Neotia. “Also, I had tasted success and independence with my realty venture and didn’t really want to report to my father in the direct sense.” In the meantime, in 1993-’94, the West Bengal government came out with an advertisement asking for participation in housing schemes from the private sector in a joint venture format. Of the 15-odd companies that applied, the Neotias were one of the two selected. In 1997, Ffort Raichak was opened to the public and though in the initial years it did not garner as much business as was expected, it is doing well today. “Here, we have enjoyed a bit of luck and positive circumstances. We were able to capture the imagination of the

people more than we set out to do. It just worked. I put in a lot more effort in Ffort Raichak but it didn’t work so well until recently,” admits Neotia. That brings us to a business philosophy that he believes in: In life, sometimes, some things work, some others don’t. There isn’t always a direct correlation between effort and success. Some things get more due than they deserve, perhaps, and vice versa. In the end, it is all square. “So many things in life leave you wondering… This is one of them,” says Neotia philosophically.

Cementing family ties But the cement segment came back to haunt the budding entrepreneur. This business had become big for the family, with his father and two uncles running the show. He only attended the annual board meetings. “Narotam Sekhsaria, my maternal uncle, would insist I attend the meetings with the heads of departments. I did, though I doubt anything entered my head,” he says. In 1997, Ambuja Cement found itself a front-ranking bidder for Modi Cement through BIFR (Board for Industrial and Financial Reconstruction). “I was summoned and told that I had fooled around for too long, and needed to get into the core family business,” he says, adding, “I attended one or two meetings and saw the BIFR document. The labor liabilities, tax dues, 400-odd litigations, left me flummoxed. The dealer network was also demolished, adding to my woes. I told my uncle that I don’t even know the ‘c’ of cement. He said, ‘Look at the good news. This plant is in east India, so you don’t have to go to Gujarat.’ I could keep my headquarters in Kolkata. He also told me cement is a very easy segment to get into, ‘just go and do it.’” And that was it. Added to this was pressure from his father who dubbed his realty business a ‘sidekick’. Crucially, Neotia also realized about the same time that he didn’t have enough funds to make his realty play big. “I also felt that the family had invested too heavily in cement, and if I didn't get into it, I would keep doing peripheral stuff only.

To read more, grab the November Intelligent 2012Entrepreneur issue of November 2012 73 Entrepreneur To Subscribe, visit www.entrepreneurindia.in

GETTING THERE

[ DREAM WEAVER ]

THE FLYING CARPET A tapestry that changed not only the rugs industry but also weavers' lives in bright hues AVANISH TIWARY

WEAVING LEGACY: Nand Kishore Chaudhary

84 Intelligent Entrepreneur ď&#x201A;&#x201E; November 2012

arhet is a village 110 km from Jaipur, overlooking the majestic Aravalli range on one side and lush green landscape on the other. A 15 feet-wide road connects the village to the Delhi-Jaipur highway. It could be mistaken for just another Indian village off the main highway that tourists pass on road trips around the country. But this is no ordinary village. More than 70 percent of the villagers in Narhet earn their living by weaving carpets and rugs—a traditional art they have learnt and inherited from their forefathers. With a weaving legacy that goes back to the 1970s, most of them work for Jaipur Rugs Company Pvt. Ltd. (JRCPL), a 12-year-old rug and carpet making company founded by Nand Kishore Chaudhary. Chaudhary, now almost a sexagenarian, has been working with around 40,000 weavers in 10 states in India in his over a decade-old social enterprise. In the words of Narhet’s villagers, Chaudhary has changed their lives for the better. Though weaving has been the warp and weft of the villagers' lives, they barely managed to eke a living as they were in the clutches of manipulative middle men for years. Their lives changed for the better with Chaudhary's rugs enterprise. "Earlier, the contractors would not give us money on time, which was anyway a paltry amount. With Jaipur Rugs, we get regular work and good money. Even the raw material is provided to us at our homes,” says Ram Dulal, 42.

Small business Chaudhary entered the business of rugs on a small scale in 1978 with two weavers and two looms. In mid-1999 he set up Jaipur Rugs, expanded the business, widened his weaver base to include local artisans and started exports. The social aspect of the business of involving local weavers was followed in other states too. Chaudhary spent over a decade in the tribal areas of Gujarat, identifying weavers and training them. It was a new opportunity for the weavers, for it only gave them regular work Photos Amit Kumar

GEN NEXT: Yogesh (left) and Kavita Chaudhary

but also a steady income. “I always wanted to do something for the poor in the villages, especially people from the backward class who were during that time considered untouchables. I would go to their houses, motivate them to work for us, explain why and how it would benefit them and their community,” Chaudhary says. Approaching the weavers directly, Chaudhary got rid of contractors and middle-men. “We have full control of the supply chain. Everything from the raw materials to the end product is managed by us. Since we are directly connected to weavers, we are able to get a good price from buyers, and handsomely compensate the weavers. "With no formal degree in management, Chaudhary followed a trial and error method. “I had to learn about different aspects of the business like branding, effective implementation, etc. practically on the ground.”

Local weavers, global customers With the business doing well, Chaudhary felt he could do more for the weavers. In 2007, he separated the notfor-profit part of his business from the profit making company and set up the Jaipur Rugs Foundation, an NGO which identifies and trains weavers in different states and villages. “We connect local weavers with global customers,”

says Sameer Chaturvedi, CEO, Jaipur Rugs Foundation (JRF). The foundation, along with identifying weavers, also works on social development with the Ministry of Rural Development. Under the Swarnajayanti Gram Swarozgar Yojana (SGSY), a self-employment initiative launched by the Indian government in 1999, JRF has trained 4,000 weavers till date. The Foundation has created an awareness about government schemes and how villagers can make best use of them. “Due to our involvement, many artisans have an Artisan Card from the government which provides a number of benefits and perks,” Chaturvedi says, adding that people are now asking more questions with regard to their rights.

Looks matter Products from Jaipur Rugs, for a while at least, looked like they were from a bygone era. This changed in 2007 when Chaudhary asked his 29-year-old daughter, Kavita to step in. Kavita had just returned from Chicago after finishing a course in fine arts. She was keen to redesign rugs in vivid colors and patterns. “Back then, the carpets were really ugly for they were plain and dull colored. God knows who bought them!” says Kavita. Kavita’s work on a few rugs left her father impressed with the designs and

To read more, grab the November Intelligent 2012Entrepreneur issue of November 2012 85 Entrepreneur To Subscribe, visit www.entrepreneurindia.in

GO FRANCHISE

[ GOOD IDEAS ]

THE

GAME CHANGERS Innovations in the franchise world JASON DALEY

can be difficult to think of franchising as an innovative endeavor, when adding avocado to a sandwich may be considered a game-changing move. On the surface, franchising is all about the status quo and attempts at repeatability—making incremental changes that can be replicated across hundreds of units. But more often than you’d think, something new bubbles up from the franchise world. New concepts, new ways of doing business and new technologies create the little ripples that have transformed franchising many times over the last few decades. It’s hard to predict what concept or technology will be the next big winner, but we think the four companies profiled here stand a chance.

Market Driven – StearClear Craig Sher had a friend visiting from South Africa who was surprised at the lack of designated-driver services in the US At home, he said, there were numerous services that drive you home in your own vehicle, while a "chase car" follows to pick up the driver. Sher, who ran a company that built software for Wall Street businesses, looked into the problem and found more than 300 designated-driver services in the US, all very localized, and none very profitable. That's when he got the idea to put his tech wizards on the case. The result was StearClear, a designated-driver franchise that utilizes smart phone 90 Intelligent Entrepreneur  November 2012

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TECH DEPARTMENT

[ NEVER TOO BIG ]

THE NOTABLE NOTE If you can get over its gigantic size, the Samsung Galaxy Note II is a fine phone worth a gigantic chunk of your salary A NKUSH CHIBBER

TWO THINGS ARE PRETTY evident from the recent launch of the Galaxy Note II by Samsung. For one, it is now encroaching into HTC territory in the sheer speed with which it is launching new smartphones. We had only just gotten over working the Galaxy S III and behold, another Samsung smartphone. The second bit is that with the Note II, Samsung is just pushing and sometimes breaching the norms of what designers would call the most apt and ergonomic size for a smartphone. The Note II is seriously big—if you whipped it out at a party, expect the first 50 comments to be about its size. This is dangerous because this form factor threatens to overshadow many of the other things that we found to be good with the Note II. 100 Intelligent Entrepreneur  November 2012

Big goes bigger The Note II comes with a 5.5-inch Super AMOLED display with Gorilla Glass that dictates its design aesthetics. A quick look will remind you of the S III—much like the original Note would remind you of the S II. What we like here is how upmarket the phone feels with that chrome trim and brushed metal finish, even though it is plastic all over otherwise. In your hands, the Note II is a bit more to carry than its predecessor. Having said that, it feels as thin. We understand that thanks to the larger screen, Samsung has managed to slim it down to 9.4mm from 9.7mm. But that giant screen size is just a little too much for our liking— your pockets would be unreasonably out of shape and you would be uncomfortable with it, especially sitting.

As much is it an inconvenience for some, the screen is also one of the strong points of the Note II along with the S Pen. The HD Super Amoled display is one of the best out there in our opinion. We watched an HD movie download on the Note II and let us tell you that it was no different than watching it on a HD display on a high-end personal computer. Also, that nemesis, daylight viewing, was not much of a problem here if you cranked up the brightness a bit.

after you put it against the old TouchWiz user interface. The new Nature user interface, also seen on the S III, really does mesh well with Jelly Bean to work smoothly.

All that you need Apart from the much cooler home screen, we like the little improvements like the notification bar with a number of toggle switches, and the ability to scroll through them—thereby accommodating more of them. And then you have all the new services such as Smart ‘Cause the pen is mightier Stay and S Beam—the latter lets you beam your docuThe S Pen or the stylus on the Note II was something that ments to other Note II units. we were eager to try after the first rumors on its design We can explain it in further detail but it is simpler to and function surfaced. The Note II has its own uniquely say that the user interface of the Note II is nothing to designed S Pen that has slightly better ergonomics than complain about. We rather think it is something to write the one on the original Note—it is more of a pencil than home about. a pen, and hence better drawing. But the interface could not haave been this comfortErgonomics aside, it’s the functionality of the S Pen able or smooth if not for the engine running it. The Note that has us blown. For example, II comes with quad-core Exynos when you now unholster the pen processor that clocks in at 1.6GHZ from its cradle, the phone recoginstead of the 1.4GHz on the S III. nizes it and a page with many And that extra bit of energy is pen-optimized apps pops up. visible on the Note II especially PRICE `38,500 On its basic function of writing when you get on to a heavy task DIMENSIONS 80.5 x 151.1 x 9.4mm and sketching, we saw a marked like using split screens to work WEIGHT 180g improvement on the S Pen that on. Other specs include 2GB of SCREEN Super AMOLED, HD, 1280 x 720 pixels was used on the original Note. RAM and 16GB of storage and an PROCESSOR 1.6 Ghz We are told that this is a result of expandable storage slot that can S & M 16GB and 2GB RAM better pressure sensory function accommodate 64GB. BATTERY 48 hrs on continuous use in this iteration. On the connectivity end of Then there are other things things, the Note II covers all— like the ability to copy only quad-band 3G, LTE, Wi-Fi Direct, specific parts of the screen by holding down the button GPS, GLONASS, DLNA, NFC and much more. The camera on the S Pen and circling the area you want to clip. Or does as much a fine job as any other Samsung device how you can ‘hover’ the S Pen over any email in your with its 8MP and LED flash. With ample light, the shots inbox and a box will pop-up showing you the first few come out great while low light shots are above average. lines of the email. Or how you can now select and copy If we had to compare, we would say the One X still has a text by simply holding down the pen’s button, tapping camera miles ahead of this one. the display, and then running the pen across the text. And then there are others—when you hold the S Pen That little secret over an icon that you do not knowabout, the pen will So the big question remains—would we buy it? At 40k, reveal its function to you . Another cool bit is the way it the Note II does not come cheap. But then the follow-up would give you a short preview of a movie by just using question you should ask yourself is that whether you are the pen and hovering it above the movie’s icon in the buying just a smartphone. folder. Trust me, we are just getting started. The S Pen At more than five inches, the Note II wades into a really does need its own review. min-tablet category of sorts and easily meshes the And do not worry about losing it. A nifty function lets smartphone function into something that has a lot more you set an alarm that goes off if your S Pen and Note get utility. Once you accept that, you can move ahead and too far away from each other. we can tell you of the deciding factor for us in saying Of course all that the S Pen can do is complemented ‘yes’ to the big question—the Note II has an incredible or rather facilitated by the software and interface on the battery life of almost two full days on normal usage. In Note II. This is the first Jelly Bean device we have had a time where smartphones die faster than you can type and we can tell you that we are impressed—especially an email, this is a major win.

GALAXY NOTE II

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TECH DEPARTMENT

[ NEVER TOO BIG ]

THE NOTABLE NOTE If you can get over its gigantic size, the Samsung Galaxy Note II is a fine phone worth a gigantic chunk of your salary A NKUSH CHIBBER

after you put it against the old TouchWiz user interface. The new Nature user interface, also seen on the S III, really does mesh well with Jelly Bean to work smoothly.

GALAXY NOTE II

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THE FIVE FIND-OUTERS

These Ideophone founders are out to drive away the pain points of your daily commuteď&#x201A;&#x2020; PG 114

Photo Bmaximage

START UPS

[ APP ON TAP ]

COMMUTER’S CONSTANT COMPANION Ideophone’s mobile applications are redefining journeys for the average Indian commuter SHONALI A DVANI

ome innovations aren’t a result of necessity, but of insight. This holds true for the founders of Ideophone, who have built a slew of mobile applications for journey and location awareness and to help commuters travel cheaper, faster and safer. It all started in 2009 when BalaSundaraRaman, 32, commuted 22 kms to work daily, while he was employed at Bengaluru-based mobile search firm, Ziva. Like any commuter, he was a victim of the usual pain points—rude drivers and tampered meters. He bounced an idea around the problem with college mates Anenth Guru, 25, and Sandeep Bhaskar, 28, who were in their second semester at the International Institute of Information Technology (IIIT-B). Enthused by its prospects, they decided to build their first mobile application, Suruk for fun in September 2009. It was a hand-held digital meter for auto and taxi rides, and armed with it they applied for Nokia’s B-plan competition.

The test drives “Suruk shows you the tariff based on the city you are in. We also built a crowd-sourcing feature, which allows commuters to provide feedback on the vehicle’s driver and quality of ride,” says Raman, Co-Founder and CEO, Ideophone. It also acts as a mini map through its ‘route finder’ feature. 110 Intelligent Entrepreneur  November 2012

Initially, the app was up on their website for free downloads and was available on Nokia’s OVI store. “I found Suruk was designed elegantly keeping the user in mind and so promoted it on the Nokia App store solely on my faith. Since then, it has gone from strength to strength and enjoys a 4/5 star rating on the store. It continues to be downloaded in healthy numbers each month,” says Jeffrey Rufus, Head, Nokia App Store and Windows Marketplace. In the first year itself, Suruk got 40,000 downloads (between both forums) world-over, including Spain and Germany. By March 2011, they had come up with the second product, One Touch SOS, which allows users to alert any emergency contact through an SMS if faced with such a situation. Unlike Suruk, this was launched as a paid app on the Nokia store costing 1 euro, $1 or `50 per download. “Once both products were launched, we ran a survey with consumers and found their pain points and saw an opportunity there,” adds Raman. Simultaneously, they worked on an Android version as the operating system began to gain traction. By June 2011, it was operational on the Windows platform too after a round of feedback and improvements. “An app like One Touch SOS has to be minimal because users shouldn’t be forced to search for options in an emergency situation.

REDEFINING JOURNEYS: (l to r) Sandeep Bhaskar, BalaSundaraRaman, Koushik Ramachandra, Anenth Guru, (sitting) Kingsley Jegan Joseph

Photo Bmaximage

To read more, grab the November Intelligent 2012Entrepreneur issue ď&#x201A;&#x201E;of November 2012 111 Entrepreneur To Subscribe, visit www.entrepreneurindia.in

START UPS

[ THE PARALLEL LIFE ]

AFTER HOURS MAD Orders and Fly By Knight are just a few of the many new companies that get to work when you get off work JULIE SAM

icture this: it is 11 pm. You are hosting a house party but planning the perfect soiree isn’t exactly your talent. The party’s underway, it’s past midnight, and you have run out of food, drinks, and all else that make a good party. What do you do? Or take another case—It’s 2.30 a.m., the party’s over, your mates are a little inebriated and decide to call it a night. But you know that insobriety isn’t good company for anyone on their drive back home. Would you let your very high mates go home themselves? This is exactly where startups like Groovy Two Shoes, MAD Orders, Party Hard Drivers and Nightcall-Fly By Night come to the fore. Their edge? They get to work much after moonrise—something most services or businesses choose to stay away from.

hunger helpline works just as how a home delivery helpline number would function. Except the delivery boys would not ring your bell—they would call the insomniac you. If an order makes its way through Twitter, the customers receive a call to avoid confusion and a similar procedure is followed from thereon. The orders are delivered in an hour with a charge of `50 per delivery. Currently, even though MAD Orders covers only a few areas in Mumbai (primarily the central suburbs), it is seeing good uptake thanks to the BPOs and KPOs present in those areas. The company has narrowed down their menu to a few vegetarian dishes and desserts rather than whipping up a plethora of options. But their menu also leaves the meat-eating segment out of

MAD Orders One midnight, Jigar Zatakia, the then 20-year-old engineering student, rummaged through his fridge to satiate his hunger pangs. While food may have been a lost cause that night, he did manage to stumble upon a decent business idea. Three years on, in late 2011, Zatakia and his friend Gautam Udani, 28, decided to start a venture called MAD Orders to do exactly what he wanted that night—provide food past the raven hour. Zatakia affirms, “There was a need to break through in this segment. If healthy food was to be consumed, it needed a professional touch." Delivering food happens with a bit of innovation here. The company employs two ways to receive an order—the hunger helpline or a tweet on Twitter. The 116 Intelligent Entrepreneur  November 2012

READY TO ORDER: Jigar Zatakia (left) with Gautam Udani

their customer base. However, Udani insists, “Most customers prefer grub like pastas, nachos and desserts. But if the need arises, we would consider adding a few non-vegetarian options.” At the time of going to print, the company was getting an investor on board, however, more details in that regard are currently not available. Zatakia admits that they have not broken even yet—the company is in its first year of operations. Started with an initial capital of `30 lakh, Zatakia is projecting the first year’s revenue to level off around `25 lakh.

Party Hard Drivers Ankur Vaid, Saurabh Shah and Mishal Raheja, Co-Founders of Party Hard Drivers (PHD) were once regular 25-year-old guys, who enjoyed their

“WHEN PEOPLE GO OUT TO LET THEIR HAIR DOWN, THEY WANT TO MAKE SURE THEY AVAIL THE BEST OF SERVICES. IT IS ONLY NATURAL THAT THIS SECTOR WILL SEE A PUSH IN THE TIMES TO COME”

DRIVE HOME SAFE: Saurabh Shah (left) with Ankur Vaid (extreme right)

- ANKUR VAID, FOUNDER-PARTNER, PARTY HARD DRIVERS

fair share of work and play. But all that changed for good one day when the three lost a lost a mutual friend due to drunk driving. “We decided that something must be done to curb this menace,” recalls Vaid, over the loss of his friend. The trio started PHD in December 2007—a company that provides a pick-up service between 10 pm and 4 am for customers wanting to—well—party hard… and not be worried about driving home their car. The model is simple. The customer calls a designated number and the driver arrives within an hour of the call. The company charges a flat rate of `650 for any drop post 10 pm with overtime charges being `50 for every extra kilometer beyond 4 am. PHD also undertakes services during the day, which includes corporate and outstation trips, and very recently, has started to offer cars as well, via a tie-up with a taxi company. Growth has been good thanks to prudent use of social media. Shah says, “PHD started with initial seed capital of `15 lakh. After five years into the venture, we are showing a stable growth of 20 percent annually. The projected revenue for this fiscal year is `70-80 lakh.” PHD has decided to go in for funding next year. As of date, the company's manpower base comprises 306 people, of which 300 are drivers—this means they are Photos Neha Mithbawkar

KNIGHT RIDERS: Jude de Souza (middle) with Neha Jain (extreme right)

not full-time employees. Hiring drivers is the biggest challenge for the firm as attrition rate in this segment is very high. PHD is currently active in Mumbai, but they recently inaugurated a new branch of their venture in Pune.

Nightcall-Fly By Knight Nightcall-Fly By Knight (FBK) is an online delivery service that started

out as two separate businesses catering to night owls. Neha Jain, 27, a former Google employee, started FBK to deliver chips, colas and cupcakes at night; while Jude de Souza, 25, started Nightcall that initially delivered snacks, alcohol and cigarettes. The duo merged in August 2012 when Jain sensed that with midnight online deliveries being such a niche market segment, joining

To read more, grab the November Intelligent 2012Entrepreneur issue of November 2012 117 Entrepreneur To Subscribe, visit www.entrepreneurindia.in

HOW TO

Create a Social Media Policy Empower people to use the medium efficiently A SHOK LALLA

ooking at how social media has grown in India over the last couple of years with millions of users joining and getting active, it is no surprise that brands have got on to the social media bandwagon too. It is important to market positive aspects about your brand to your customers. After all, marketing your brand to your consumers and prospects makes good business sense. Hence, it is necessary to have a social media policy which will help boost your brand. How will you frame a policy that will work for your brand? What are the key factors that make an effective social media policy? What should you look out for and what should you not miss while doing so. The following may prove to be useful to help you create a social media policy that functions well:

122 Intelligent Entrepreneur ď&#x201A;&#x201E; November 2012

Make your presence felt Most brands have followed the natural path of social media adoption which starts with creating a basic presence on a few social media platforms (Facebook, Twitter, YouTube being the most popular), and often hiring an intern to create and manage their presence. Once they see traction (read: fan and followers coming in), an outside agency is usually retained and more serious use of social media begins. This includes undertaking online reputation management, running social media campaigns, creating content streams for various platforms, finding ways to engage with the audience and looking to create brand influence through bloggers and other online influencers. Illustration Chaitanya Dinesh Surpur

Manage your online presence effectively

Sharing responsibility

Brands may soon find consumers gravitating to their social media pages and using them as default contact mechanism with the brand. It also becomes the place to share their views about the brand and how good or bad it is. A brand realizes soon enough that there is a lot of chatter out there—about the brand, and it is not all controlled or managed by it. But a lot of it is user-generated and includes the brand’s own internal stakeholders (employees, partners), who add to the brand story, usually in their personal capacity as participants in the social media space and often on their own social media pages.

It helps to recall that social media guidelines are not about a show of authority but a sharing of responsibility with your people. Highlight this aspect and treat them as you would your own family; they are after all family.

Create a guideline

Be creative, encourage and focus on offering rewards for the appropriate use of social media, rather than simply laying down rules and penalties for inappropriate use.

The avalanche of brand-related online content that the brand can do little to control or influence makes most brands panic. As a reaction to this panic, the decision to create a social media policy comes into play. This policy can determine and mandate what can be said, what can’t be said, what the hierarchy of online participation is within the organization and the roles and responsibilities of various internal stakeholders in the creation and management of the brand’s social media presence. This outlines the role for every individual in the organization which will ensure smoother flow of work.

Empower people Don’t call it a social media policy, instead call it ‘social media guidelines’. A ‘policy’ reminds one of ‘policing’ and no one likes to be policed. The best social media guidelines empower and enable people to use social media effectively rather than laying out restrictions to the employees of what is not allowed. Simply showing people the power of what social media can do in a positive manner will get them to follow it rather than having strictures that will make them worry and be wary of using social media in the first place. It would also help to write the guidelines in lucid English, not legalese.

Be social Remember ‘social media’ has the word ‘social’ in it and so the way it is written needs to be social too—it should encourage people to participate rather than give them reasons to stay away. You can never have enough eyes and ears out there in social media and what better than the eyes and ears of your own people?

Co-opt stakeholders Co-opt internal stakeholders (ideally those who are active in social media themselves) to help in the development of the guidelines rather than leave it to people who do not communicate often via social media.

Offer rewards

Have easy checkposts Provide easy checkposts so that people can go to for clarifications on what is appropriate. It is better to have ‘peer social champions’ within teams and departments who can give the guidelines a recognizable face which is likely to encourage people to reach out to them.

Tailor guidelines One size may not fit all. Alter your guidelines to bring out the differences in how internal stakeholders ought to use social media. This will help address issues of client confidentiality and legal requirements that may concern some people and not others.

Review and revise Review and revise the social media guidelines every three to six months. Given the rapid changes in the social media space, it is important to realize that social media guidelines cannot be cast in stone. Hence, to be relevant, they need to be current and constantly evolving.

Social business Think of your social media guidelines as a step towards becoming a more social business—not just a business that is present or active on social media but one that is more open, real, transparent, accessible, tuned in and responsive to your stakeholders—both internal and external. ASHOK LALLA is a Digital and Social Media marketer and author of `The Future of Digital for Brands’

To read more, grab the November Intelligent 2012Entrepreneur issue of November 2012 123 Entrepreneur To Subscribe, visit www.entrepreneurindia.in

BACK STAGE

Halloween costumes from the entrepreneurial world

THE TECH-STARTUP CODING GURU: Halloween treats: Red Bull, company-branded laptop stickers, NDAs THE BILLIONAIRE VISIONARY: Halloween treats: Gift cards for a free download, copies of autobiography, charitable contributions THE SOCIALLY CONSCIOUS DO-GOODER Halloween treats: Hemp, seed bombs, kombucha, hugs ©Entrepreneur Inc. All rights reserved.

134 Intelligent Entrepreneur  November 2012

MICHELLE JUERGEN

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R O T R K E C I R

THE SHAPEWEAR DESIGNER Halloween treats: Skinny margaritas, 100-calorie snack packs, “You go, girl!”s THE DAREDEVIL LIFESTYLE MOGUL: Halloween treats: Coupons for hot-air balloon rides, T-shirts bearing the name of his private island, the unintentional message that your life will never be fun as his THE NUMBERCRUNCHER: Halloween treats: Coffee, Adderall, therapist’s phone number

Illustration Chaitanya Dinesh Surpur