From: nikhil.kamath
The intersection of creativity and risk-taking in business is fundamental for growth and success, particularly as companies scale and markets evolve.
Creativity as a Business Imperative
For the interviewee, building or running a business is considered the most creative endeavor one can undertake [00:05:11]. While risk-taking and efficiency are inherent to any business, the demand for creativity intensifies as a business grows and scales [00:05:42]. In this phase, the “low hanging fruit” has already been picked, necessitating constant value creation [00:05:51]. This is when management transitions from a science into an art, requiring “out-of-the-box” thinking, especially for companies seeking a leadership position in their industry [00:05:58].
The Essence of Risk-Taking
The interviewee’s father exemplified a “risk taker,” aggressively expanding business outside the country and making bigger bets compared to previous generations [00:19:03]. This indicates that the ability to take calculated risks is crucial for business expansion and adapting to changing environments.
Contrarian Thinking and Non-Conformity
The interviewee identifies as a naturally “liberal” person who is “quite open” and “strong” about their opinions, even if it means not conforming to expectations [00:38:35]. This non-conformity was a source of worry for their father [00:38:05]. However, the interviewee asserts that not conforming provides more choices and greater latitude in decision-making, making life easier when the pressure to conform is lower [00:40:31]. This perspective highlights the importance of contrarian thinking in entrepreneurship and a rebellious spirit as sources of liberation and competitive advantage [00:44:13].
The interviewee uses their social media platform to voice “contrarian things that maybe I think need to be said and other people are not saying it” [01:37:21]. This approach can lead to being “called out” for frequently changing one’s mind, but the interviewee views this as a necessary aspect of evolution, especially when new evidence emerges [01:37:54].
Practical Application of Creativity and Risk-Taking
When considering new business ventures, the interviewee looks for industries with significant tailwinds, such as paints and jewelry retail [02:01:22]. The paint industry is attractive due to its transition from unorganized to organized, booming real estate, the shift to nuclear families, and the existing dealership network from their cement business [02:01:26]. Jewelry retail is appealing because of the aspirational nature of Indian consumers and the highly unorganized nature of the market, presenting an opportunity for a new national-level player [02:02:15]. A key objective for entering a new business is to achieve a leadership position (number one or two) [02:02:54]. The element of trust associated with a brand is also a significant factor in success [02:03:47].
Key Learnings for Entrepreneurs
- Passion and Teamwork: Do what you love, maintain passion, and build a great team, as a team is crucial for achievement [02:07:48].
- Consistency and Learning Agility: Consistency and “learning agility” are vital due to the constant change in the world [02:12:12]. Businesses must continuously tweak their models to stay current [02:08:12].
- Strategic Pivoting: A business leader gains an instinctual “sense” of when a business is mature enough to pivot and invest energy into new engines of growth [02:10:35].
- Trust and Talent Acquisition: Building a large organization requires trusting people and choosing the right talent, especially those with more experience and diverse skill sets than the leader [02:12:20]. Key traits sought in leaders include the ability to handle complexity, agility in learning, and the capacity to lead large and diverse teams [02:14:21]. This selection process often relies on gut feeling and instinct [02:14:12].
- Hard Work: There is “no substitute for hard work,” specifically “smart hard work,” which is a fundamental work ethic [02:11:37].
NOTE
The interviewee highlights that being “woke” can sometimes be a form of conformity, where individuals adopt popular viewpoints without deep personal conviction, simply because “it’s cool to be woke” [00:39:46]. This suggests a need for genuine belief rather than mere adherence to societal trends, even progressive ones.