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Category Archives: Lessons from recession

Sequoia Capital

   

 

 

 

 

 

 

Sequoia Capital, the VC firm which gave seed funding to CISCO, Apple Inc. etc. had sent the following  message to the companies in their portfolio. This seems to be a lesson applicable to all.

  1. The Good Times are Over!
  2. Cut spending. Cut fat. Preserve capital.
  3. Focus on quality.
  4. Reduce risk.
  5. Make sure you have one year’s worth of cash.
  6.  If you have a product, reduce expenses around it and boost sales. If the product is ready, cut the number of engineers.
  7.  Be brutal when it comes to marketing — anything that isn’t working, cut it.
  8. Don’t burn through your cash, for cash is king.
  9. Cut base salaries on sales people and leverage them with upside.
    10.  Most importantly, be true to yourself.

The last one is really hard, i guess
So it is better to be objective with your own business ideas.
Be realistic.

Indian Village School

A Village School in India

 

It’s not surprising that well-travelled professionals living in global cities, such as New Delhi, New York, Paris, Rio, and Shanghai, have more in common with one another, in lifestyle and values, than they do with rural citizens in their respective nations. In general, villagers, particularly in the emerging world, have benefitted less from globalization than urbanites have. Seventy percent of India’s citizens, for instance, live in rural isolation, largely disconnected from the benefits of their nation’s fast-paced economic growth.

These are globalization’s forgotten frontiers, where more must be done to connect urban markets with rural ones in order to speed their development. How this happens will vary from nation to nation. In China, for instance, the government actively spurred the village economy, largely through agricultural-reform measures implemented during the 1980s. By contrast, India’s government has only a limited ability to bring about real change in the country’s villages. Private entrepreneurs might well be more effective.

Recently, I trudged through the mire of a government-run food auction yard, or mandi, in Bangalore, the global economy’s offshoring capital. Piles of supposedly fresh produce lay everywhere, rotting in the sun and competing with mangy dogs and scampering mice for my attention. Huddles of impecunious farmers, wearing the traditional dhoti, looked on with resignation. A government agent, pen tucked behind ear, offered a pittance for the produce on display.

The farmers’ day had started before dawn. Chugging along on narrow so-called highways, they came to the auction yard in ramshackle public buses, bullock carts, trucks, and even tractors. Their produce unloaded, they accepted whatever they got. After snatching a few hours’ sleep in a shady corner, they retraced their steps home.

Read the full article on The McKinsey Quarterly,

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