Nikhil Sanghvi, MD, BEICO Industries Limited

A second-generation family business leader, Mr Sanghvi transformed the family business, of trading in electrical insulating materials and enamelled copper wire, that he inherited, to a respected manufacturer of these products. Today, BEICO is the generic name for a range of composite electrical insulation materials and its name is synonymous with quality. It is also the second largest domestic producer of fine and superfine enamelled copper wires.

Mr Sanghvi spoke about the factors that help entrepreneurs successfully manage the start-up stage of the business. In his opinion, management education is particularly useful to entrepreneurs as it helps develop a systematic approach to problem solving. In his experience, garnered over two decades, the following aspects were of vital importance in managing this stage of an enterprise:

An achievement orientation: Entrepreneurs must be driven by a need for achievement and must display a strong will to succeed against odds.

Creating a Unique Value Proposition: The key to success is the configuration of a product or service idea that delivers unique value to the customer.

Careful assessment of opportunities and strategies to exploit them: It is well known that new ventures suffer from a high risk of failure. These risks can be reduced if the opportunities themselves, and the strategies to exploit them, are subject to a careful and detailed analysis.

Effective pricing: One of the critical aspects of managing the start-up process is to price effectively. Effective pricing begins with the realisation that customers will not pay higher for the same perceived quality. It is important that pricing reflects the value delivered to the customer.

Taking calculated risks: It is crucial that the entrepreneur take only those risks wherein potential losses can be absorbed.

Mr Sanghvi also had the following prescriptions to offer to manage the growth phase of a business:

Appreciate the role of technology: Technology plays an important role in improving and growing a business. An appreciation of its role goes a long way in helping manage the process of growth.

Take assistance from talented people: As the business grows, it goes beyond the ability of a single individual to manage it. The entrepreneur needs the assistance of a talented pool of colleagues and supporters to help him manage growth.

Leverage your strengths: The growth process that leverages the core strengths developed by the company over a period of time is a sustainable one.

Respond to market changes: The dynamic and highly competitive market place will throw up many challenges to the process of growth of the company. The entrepreneur must be courageous enough to reorient the business, if required, in response to changing market conditions.

Care for employees: A crucial aspect of the process of managing the growth of a business is the resourceful management of the human capital of the company so that they actively and effectively contribute to its growth.

Persevere: It is important to be consistent in action and to persevere despite setbacks if the course of action being pursued is considered right.