Kochouseph Chittilappilly: Take calculated risks, never fear failure

(Excerpts from V-Guard Industries Chairman Emeritus Kochouseph Chittilappilly's interview on the Dhanam Titans Show)

“When an idea crops up, I roll it around in mind. You know, there is a little bit of risk in every business. You should be aware of this before you get going. Not all ventures turn successful, some of them will invariably fail. For instance, we had to shut down V-Guard Clock and PVC Pipes and I lost a lot of money. One can only expect an 80% rate of success. Once you taste success, you should think about what to do next. Only then will there be growth. And, never fear failure.”

Calculated risks

Only those who are ready to take calculated risks should venture into entrepreneurship. Each step is a risk. I was not married when I quit my job and became an entrepreneur. So, I could take more risks.

There was no pre-planning as to what level I should grow. It was a step-by-step growth. Sometimes I wonder why I have grown only this much in 46 years. Companies younger than V-Guard have grown more than this.

Handling crises

There have been labour problems. If you take it too seriously, it will appear to be a huge problem. You can give it a quick fix if you tackle it in an even manner. Crises keep coming in life as well as business. You must learn to overcome them. You will have a lot to learn from them. But, the right opportunity will always emerge.

Accept what is good

I share my ideas with my top executives. I listen to theirs too, and take what is good and reject what is not. The responsibility of taking the decision lies with the entrepreneurs themselves.

The same is the case with consultants. We get to know what is going on in big companies. They provide all kinds of advice. But it is up to you to sift the grain from the chaff. 

Not interested in borrowing

I was not interested in borrowing. There were three ways to raise funds for the company's growth. Borrowing, granting private equity investment and IPO. I turned to IPO as it was the best option.

At the beginning of V-Guard, there was no one to lend us any money. Therefore, we kept costs exceptionally low. This played a crucial part in our growth.

Giving space in business

I did not deliberately bring my children into the business. They came on board when they showed interest after their study. But it was not easy. They were initiated into business at the ground level. They realized that they too were getting a space in the business.

Now I can leave things completely to them and stay away. I cannot forget the role of my wife Sheela. I was able to focus on business because she managed the responsibility of the family so well. Giving everyone space is key in a family business.

Market well  

No matter how good a product is, it will fail if it you do not market it well. That is why we designed the V-Guard stabilizer and launched it differently from other stabilizers.

The first lesson 

Many people these days become entrepreneurs through the startup route. This route is easier to get started. I tell them that it is not enough to move on. No matter how good the idea is, how others receive that idea is important. So, keep improving. The first lesson in business is to innovate the product with time.

Constant desire to learn 

Initially, I was not very confident about my business skills. I had no trouble absorbing new technologies. But I was troubled by finance, marketing, public relations, and other daily concerns. But I overcame most of them through persistent efforts. From being an introvert, I transformed myself into a public speaker. I learned to speak in English. A constant desire to learn is what counts.

Willingness to delegate

I was strict about quality standards. A straightforward mind, a close relationship with employees, and a willingness to delegate have helped me in business.

I made frequent training mandatory for employees. A business can be successful only by bringing together many ingredients. Just like curry is good when you have the right mix of salt, chilies, and tamarind.

Attitude, sincerity, dedication

In the past, we hired only those with an SSLC qualification. This was to prevent them from moving to big companies. But now we hire people even from top management companies.  New employees will be in the role of trainees for six months. It is at that time that we judge them. This is the time when we assess their attitude, sincerity, dedication, and common sense. We can spot their skills during the training period. You know, resumes are not the only way to assess the merit of potential employees.

You can move forward in your entrepreneurial journey only by trusting others, so you need to delegate responsibilities.  After the training is over, ask the employees what they have learned. Only then could you ensure they grasped what you wanted them to.