Lessons For Startups From The Indian Demonetisation Drive

Should startups be only learning from startups, or do lessons from all walks of life apply? Well, at least those lessons can't hurt to study. Photo credit: Creative Orange

To many the world over November reminds of ‘No Shave November’, but this time around in India it’s come to be dubbed as ‘No Cash November’. While that’s said to be a short-term affect of a massive demonetisation move initiated by the government, it’s led to a lot of talk. Some hail it, and some trash it.

Whatever side you are on, we think there are a lot of lessons that young entrepreneurs and startups can derive from it. And while the size of the move is mammoth, it’s nature permanent and the force behind it is equally overpowering, here’s what it taught and reminded us about:

Don’t Shy Away, Be Bold

In startup language: Do Epic Shit

While all of us get ideas all the time, we don’t execute all of them. Sometimes we even reject them before giving them some thought. But this move by the government reminds us that no idea should be rejected straight away without much ado. Can you imagine what this idea may have sounded like when first mooted? Could even have been ridiculed, but it still came through and is now being touted as a big bang measure. So don’t shy away and think big and fresh.

But Do Thorough With Research

In startup language: Beta First

The aftermath of the announcement showed that the government was found wanting in quite a few areas – from the recalibration of ATMs to confusion in rural markets – things could have been done differently. Perhaps some more groundwork could have helped, that’s what the imperfect execution suggests. While the government can say the surprise element could not be compromised, startups don’t have that option. That’s where good research and Beta testing really matter. Let them inform your decisions.

Execution Trumps Idea

In startup language: Get Shit Done

Yup, Trump is everywhere. Anyway, while we can take time to try and find loopholes in the move, one must recognise that such a big move really was made. It’s a move that was proposed even two years back and ignored. It’s something that’s been on the table for quite sometime, but being on the table doesn’t always cut it. So while there may be political motivations too, this is a reminder that an idea by itself is nothing unless executed. Have an idea? Then get to work!

Team Work Is Crucial

In startup language: Great Teams Win

There are multiple ways of looking at it. Let’s take these two – the move is a success in terms of how the government, bankers and bureaucrats together are keeping things going while mitigating chances of a mass protest. The other is that it’s a failure with long queues, deaths, and some protests. Either way, this underscores the importance of a team. Ultimately, it’s the team executing the idea and that’s what defines how it performs. So always work on building a strong and diverse team while keeping everyone involved. Internal communication is key too. Can you imagine this move with the Prime Minister not taking the RBI Governor into confidence? It also, in the same breath, underlines the role of a good leader. So take note.

So Is Getting Word Out

In startup language: Buzz & Hustle

Ever since November 8, the day the move was announced, many faces from the government and the party have been out there – speaking at conferences, TV shows, writing articles or even addressing the music concerts. There’ve had ads informing about the scheme in papers and ads praising it on radio. There’s always been buzz around it and that’s what every startup craves. Understand the importance of the various channels of communication and use the well. Move around, hustle because getting things done is important, but conveying that it’s done and that it’s good is equally important.

Capacity Building & Using It

In startup language: Scalability Is Core

Now here’s something that is very different in this case when compared to startups. The state is huge and has at its disposal machinery it can use to take actions at all levels. A startup, however, is not as equipped in terms of physical assets. But both have different assets too. While the state has spent time building that capacity to enact such decisions, a startup has spent time ideating and hustling too. Either way, building those capacities that help you play the long innings must always be a priority because scalability shall always remain crucial to startups. It matters in the long run, like the team.

Seek Expert Opinion

In startup language: Validate The Idea

Some say that the government did not consult enough experts or that it consulted only those it agreed with. Others say many experts were spoken to and suggestions noted. However, names of no venerable economists have been cited to say they were consulted. Whatever the case, this is another reminder that opinion from experts in that space or industry and the immediate users must be sought to try and validate the idea. But then the secrecy of the project and the need for opinion do make for a fine balance to look for. And that’s what you must seek. It’s also important to know who to take opinion from, how to use it and when to stop seeking it because you don’t want too much of it, but only the right kind. Let’s say the jury is still out on this government move and if the idea was or should have been validated.

Don’t Stop Making Corrections

In startup language: Fix Those Bugs

One thing the government has constantly shown ever since the move was announced is that there have been new relief measures coming out everyday. Some days those with weddings in the house had some respite, other days the government said farmers could use old notes to buy seeds. These were cases that were left out in the initial plan and are only being considered now given that grievances caused and inability to suffice them. While many call it confused policy making, there’s one important lesson here for startups – never stop learning, identifying bugs (albeit through the help of a competitor) and fixing them because that’s what will keep the product running and attuned to the market. While we can argue the government should have been more considerate and careful, let’s promise that we’ll be, at least.