The truth about MBA- How to choose the right job on campus?

Ever wondered what does MBA stand for? I, mean, literally it stands for Master of Business Administration, but what exactly does it imply? Does it imply working for hefty salaries in dream roles or something slightly more? Most MBAs in this country are concerned about two things during their MBA: Salary and Profile. These two factors along with the location of job provide the basis for decision making about which enterprise to join after finishing their education.

If we look at the first factor, salary, can anyone say for sure they would be happy with the salary they are going to get? Normally every MBA sets a ball park figure in the mind that this is the salary he should get at least. For some, it is a figure in the range of 6-10 lacs while for some even 25 lacs is not enough. Now imagine, you get your dream salary of 20 lacs. What next? Will you be happy with the salary regardless of the role on offer? If the answer to the question is yes, this article is definitely not meant for you. 

If the answer is no or you are not sure at this moment, perhaps you should read on to discover the answer. Most aspirants have their own set of dream companies predefined in their minds which might be big league giants like HUL and Dabur for few while for others it might be VC and PE firms like Blackstone. Here are the roles that normally come on B-school campuses.

Finance

The finance MBA is normally offered the following roles:

i.Relationship Manager- While it sounds good to be working with a bank for a finance grad, this role is essentially a pure marketing role. Just like an FMCG sales profile, you will have monthly targets to fulfill towards placing financial products. Many marketing MBAs feel they are not adequately skilled for this role and those majoring in finance are more suited for it. The reality is just the opposite. If your strength is sales and basic finance interests you, this role might be a good option for you.

ii.Research Analyst- Perhaps the most coveted and best suited role for a finance MBA starting his career. The career demands will be high and one can gain an in-depth insight of a particular sector. Though, this might not be the highest money making job on campus, it definitely pays a lot in the long run. If this interests you, go for it!

iii.Operations- Not sure what kind of role this actually is- I mean I know few people who just copy one excel to another. In some ways, this is a pure low skill job and only exists in India owing to its cost advantage. For instance, you will rarely see a European or American involved in it (though it might be headed by them) in the top league companies. Having said that, you can decide if this fascinates you but I will definitely not recommend it!

iv.Investment banking-The roles that mostly come to campuses in India are back-end jobs where you act as providing supporting analysis towards clinching a deal. A few companies like SBI Cap Markets do offer front-end roles in this profile. This might be a very interesting and challenging path to begin your career and is definitely recommended.

Marketing

There are majorly two kinds of roles that come on campuses- sales and brand management. Both the roles have their unique set of challenges. Like Finance, experience in marketing will prove useful in multiple domains and one can easily move across wide array of companies. Ideally, an individual should work in a sales role for 2-3 years before moving to brand management, if that fascinates him. Brand consulting and advertising agencies are interesting career prospects to look out for in this area, even though FMCG companies remain the clear favorite of the MBA students.

Operations

If you aspire to run your business in the manufacturing sector in future, this should be your forte during placements. All the jobs here are perfect in facilitating the learning curve of a newly graduated MBA and can open doors for a consulting career in future. Moreover, in-depth understanding of any particular product, its manufacturing process and managing bottlenecks etc. is bound to pay rich dividends and one can easily find opportunities as a freelance consultant. Roles that cater to supply chain management and logistics management should be preferred.

IT

There are multiple roles that companies in this sector offer on campuses including Sales, Business Analyst, Consulting, Engagement consultant, pre-sales, etc. However, IT may not be the right sector to begin the career as an MBA as one becomes overly dependent on two factors to move ahead Technology & ‘Gas’, besides not utilizing his true potential. Ideally one should work for few years in core sectors and then switch to IT (if desired) as it offers good work-life balance along with hefty salaries. Having said that, IT companies offer similar challenges as non-IT companies at senior management level. In terms of career options, prefer product companies over service companies and in a business oriented role. So if you feel you are made for IT, go for it.

Human Resource

Roles offered on campuses are normally recruitment related. HR consulting companies that specialize in head hunting is an interesting area to target for new MBAs. In such firms, one can specialize in hiring for a particular sector and over time build his/her reputation in the market. This area too offers significantly high pays along with perfect work-life balance with plenty of time for leisure.

In case you are specializing in general management, you should choose any of the areas (excluding HR & IT) whichever interests you more. Once that is done, you should take a call on how to plan your career ahead. In case you intend to opt for a consulting career, it would be more apt to build related experience of at least 2-3 years before entering this arena. In addition to this, it would be advantageous to work in a boutique consulting firm owing to the exposure one can get.

Location, too, plays an important part in your decision making process, especially if you have family issues. But if it can be resolved, always make your decisions on the basis of the role on offer for the initial 4-5 years of your career. 

Always ensure that you work in the profile that you want to. If not, it is never too late to seek opportunities outside. However, it becomes difficult to have a profile change once you have worked in another sector (unrelated to your aspirations) for beyond 2-3 years. So make your choices wisely.

About the Author:

Abhirup Bhattacharya 

The founder of the site, he holds an MBA in Finance from School of Business Management (SBM), NMIMS University, Mumbai prior to which he has worked in the apparel sector in Egypt. He has passed CFA Level 1 examination from CFAI,USA, FRM Part I examination from GARP USA and has also cleared CAPM certification from Project Management Institute, USA. Abhirup presently works as a Senior Consultant with an IT Major and has a deep interest in Chinese Economy, Geo-Politics, Consulting and Business Valuation.

7 Reasons You Stink As A Leader

It may come as a shock to you, but just because you’re a business owner doesn’t mean you’re a great leader. If you’re the one your staff looks to for direction, this is something you’re going to have to address sooner rather than later. Here are the top 7 reasons your staff might view you as a poor leader.

1.    You Don’t Have Leadership Talent or Experience

Most entrepreneurs start a business because they love doing something, like baking cupcakes or designing websites; not because they love managing other people.

However, as businesses grow, entrepreneurs hire staff. And that’s a good thing, right? While it’s a natural course of action of any growing business, hiring staff also highlights glaring weaknesses in leadership talent within entrepreneurs.

Successful entrepreneurs often don’t know if they have leadership talent until they start hiring staff. Many others commonly demonstrate their desire and talent for leading, prior to becoming an entrepreneur. Whatever your scenario, seek leadership training if you haven’t had leadership experience before; it’ll save you from finding out you don’t have leadership talent the hard way.

2.    You Don’t Trust Your Staff

Type-A personalities tend to run rampant among entrepreneurs. And while that attention to detail and insistence on perfection will serve you well in most areas of your business, managing staff isn’t one of them. When you turn into a control freak, you tend to micromanage, which makes your employees feel like you don’t trust them to do their jobs. And maybe you don’t. Unfortunately, you have to, because you can’t do it all; this is one of the hardest lessons for an entrepreneur to learn, as giving up control can be scary for entrepreneurs who strive for perfection.

In order to maximize the value of their time, entrepreneurs should only do the things that only they can do. The rest should be outsourced.

3.    You’re a Poor Communicator

Clear communication is the key to a well-oiled machine. But nearly half of employees get confusing or unclear instructions from their superiors, which causes misunderstandings, missed deadlines, frustration, and ultimately employee turnover. If you want to hire applicants that are great communicators, you have to first teach yourself a few things about how to do it well yourself.

Make sure your instructions are clear by asking your employee to repeat them to you. Read through your emails before sending them out to ensure they’re relaying what you want, minus any emotional undertones. Consider the channels you use and choose the best for communicating what you need to say.

4.    You Have No Company Culture

Remember: this is your business, and you’re here every day because you love it and want to nurture it. But let’s be honest; your staff is there, primarily, because they want to make money. Is that really the motivator you want for people you’re paying to help you run a successful business? Do you want them counting down the hours until they can leave the office? Or do you want them to feel invested in your company, and that they’re part of something bigger than themselves?

If it’s the latter you want, you’ve got to establish a company culture. What makes working at your business a benefit to people? What ethos guides you? Are you a fun and quirky company with a foosball table in the break room? You don’t have to be to connect with your team, but you do have to have some sort of culture to serve as the glue that binds your team.

5.    You Can’t Handle Criticism

Like many entrepreneurs, you became the boss because you didn’t like taking orders from other people. Now, however, you refuse to see your own flaws and how they’re damaging your business. Your staff is afraid of you, and will never come to you with a suggestion on how to improve the company. And that’s your own fault.

Without your employees, you’re a solopreneur. And if you’ve built up your business enough, at some point, you won’t be able to be one-man (or woman) show anymore. Reaping the benefits of entrepreneurship doesn’t include being glued to your computer or office 24/7 after all, right? Take a long, hard look at how you lead your staff, then be open to improving your strategy.

6.    You Don’t Listen

You talk more than you listen, and you think you have that privilege because you’re the head honcho. But you’d be surprised what you can learn from your staff if you only listened, and allowed them to be honest with you. Being a better listener will make them feel like you value what they have to say, and they’ll open up in a way they didn’t before.

If you’re an interrupter, catch yourself before you start talking over other people. It belittles others, discourages honest communication, frustrates people, and shows you weren’t listening to begin with. Take a deep breath before talking, and don’t always feel like you have to fill silence with words.

7.    You Have No Interest in Niceties

Maybe your pet peeve is when everyone comes into the office and starts the early-morning chatter.

Hey Bob! How was your weekend?

I caught the last soccer match yesterday on TV. Can you believe they won?

Beth! That’s an adorable skirt! Where’d you get it?

Whether you subscribe to chit-chat or not, it’s got a place in the office, and you need to use it to your advantage. While you don’t need to make friends with your staff, you should be friendly and develop a positive relationship with each employee.

It might not seem like much, but when you say hello to one of your staff as you walk by, ask about their kids, or just show interest in them as human beings rather than cogs in your machine. They’ll develop a bond with you, and will be more willing to go the extra mile for you and your business.

Conclusion

Sucking as a leader, fortunately, is reversible if you’re willing to invest some time and energy into improving your management tactics and learning better communication strategies. Just set your ego aside, be open to what your staff has to say, and trust them to do their jobs. It’s a challenge for many new entrepreneurs, but a major stepping stone on the path to entrepreneurial success.

4 Things NaMo can do to help entrepreneurship eco-system in India

Narendra Modi or NaMo is perceived to head the new government in India. But is he ready to meet the expectations of the masses especially of entrepreneurs? He may get an opportunity for changing the course of this country. The entrepreneurs especially young are looking up to him with great hope given that in the last decade no concrete measures have been taken to eliminate unwarranted delays in starting a business or for reducing hassles of reporting with various authorities.

According to ease of doing business index, India ranked 134 in 2014.Why India is not able to climb up the ladder and still lagging behind? Why is it so hard to start a business in India compared to other emerging economies of the world? 

New government needs to take actionable steps to encourage entrepreneurship and investment in India. It has to pay high and right attention to improve India’s doing business rankings. In this article, we will discuss what changes new government which is perceived to be headed by Narendra Modi can do to help overall business eco-system of India.

Reduce time taken to start a business by automatic approval & Single window system

The current structure has very difficult compliance requirement for businesses. New Government needs to plan for minimal regulation, compliance and remove paperwork hurdles for starting a business. 

The measures should be taken to reduce time taken to start a business in India which is currently more than 35 days. We as a consultant have to convince and explain our clientele especially foreign clients, who comes and ask questions as to why in India the registration process takes 35 days while in other country it is just 24 hours, or 2 or lesser number of days than India. In addressing some of these challenges, the government should start auto approval system or “Straight through Process” procedure by casting more responsibility on the professionals. 

An entrepreneur in addition to registration of his business entity also has to go through the process of getting host of other state and central specifics registrations / approval like trade license, environment approval, Service Tax registration, Excise, VAT and a few more. The most difficult part of this is that these registrations are obtained from different departments of the State or Central government. 

Instead of going through all this processes, why can’t there be a single window(an online platform or offline) where he gets end to end information about the registration, compliances, taxes, etc. The platform should provide a common place to get clearances for central as well as state level formalities.

Give Time bound Tax Exemption / relaxation to new businesses 

In terms of taxation, its time taking and complexity of the system results in a slow rise in new ventures. The New Government should simplify the tax rules; improve tax compliance and lower tax litigations. 

IT services giants like Infosys and Wipro benefited immensely with tax holidays on IT exports. Similar tax incentives are much needed for current IT startups as well and for startups in industries like healthcare and manufacturing. 

The startups in India can be given tax exemptions on the line of Singapore tax exemption scheme for new startup companies as per which a newly incorporated company that meets certain qualifying conditions can claim for full tax exemption on the first $100,000 of the normal chargeable income for each of its first 3 consecutive assessment years. A further 50% exemption is given on the next $200,000 of the normal chargeable income for each of the first three consecutive assessment years. This will give great boost to our startups that have to start paying taxes right from the first year onwards and on every single penny of profit it makes.

Focus on Skill development and make young population employable 

As per a research, India has a youth population of 300 million but it has just 100 million jobs available. However, another research shows that only 3 out of 10 are actually employable based on the skill sets. 

Focus should to improve on skill sets by introducing special training course, development & skills programs to develop skilled talents thus helping entrepreneurs who are always hungry for good candidates. 

There are more than 5000 Industrial Training Institutes (ITI) in India. However, the quality of training is not up to the mark. They have poor infrastructure, outdated curriculum, less qualified instructors and limited interaction with the industry. 

The entrepreneurs who hire them spends considerable amount of time to first train them and then use them. 

Infact businesses and Government can work together on this, wherein businesses can train young force on the job and government motivating businesses by providing wage subsidy for a defined period.

Make Access to Funding, bring transparency & remove startup tax

Startups require a financial system which is supportive and which provides the necessary risk capital to aid innovations and enterprises. The government should ensure that funding programs should focus equally on small early stage start-ups also and not only into relatively large and safer investments. 

The government should start a dedicated fund, seeded by the Government, and targeted at promoting innovative initiatives. 

Today our startups are primarily dependent on private investments coming from India or abroad. The main reason for this is that the Government designated fund is hard to get due to unnecessary bureaucratic bottle necks and lack of transparency. The new Government should allocate funds sufficiently for entrepreneur’s related investment schemes with the aim should be that no startup with a potentially great and innovative idea will suffer for lack of funding. 

It is not a secret that Startups are funded based on future prospects of the business idea and not on the current value of the assets of the company. 

Government sometime back amended the law to restrict issuance of equity shares at a premium and attached various conditions on it. The law states that that portion of consideration received for the issue of shares of a public unlisted company or private company that is in excess of the fair market value of those shares, will be subject to tax in the hands of the companies under the head “income from other sources”.

 With the introduction of this clause the participation of private equity funds or high net worth individuals has been affected and there is a serious impact on genuine start-ups and other Small and Medium Enterprises, as they largely depend upon angel investors or private equity funds for their funding. Such funding is normally at a substantial premium as the underlying assets of the startup do not support a higher fair market value. 

New government should give relaxation in this aspect since this provision is creating hindrance in the developing culture of angel investors and private equity funds, funding innovative entrepreneurs, who have the desired skills but have limited resources.

To Conclude:

New government should manifest their role as catalyst to stimulate entrepreneurship.  In a developing country like India, downturn of entrepreneurship will be a serious threat to the economy.  Narendra Modi supposedly heading the new government should help, as he would be benefited with his past proven work and with vision for holistic economic development for India including start-ups. 

1) My idea of a group discussion is to look in the mirror 
2) I don’t try to jump over seven-foot bars; i look for one-foot bars that i can step over 
3) It is impossible to unsign a contract, so do all your thinking before you sign 
4) Rule no.1: Never lose money, Rule no.2: Never forget rule no.1
5) Never ask a barber if you need a hair-cut
6) You have to think for yourself. It always amazes me how IQ people mindlessly imitate. I never get good ideas talking to other people 
7) I want to be able to explain my mistakes.This means i do only the things i completely understand
8) If you let yourself be undisciplined on the small things, you will probably be undisciplined about the large things as well 
9)The most important thing to do when you find yourself in a hole is to stop digging
10) It takes 20 years to build a reputation and five minutes to lose it.If you think about that, you will do things differently

Best motivational video ever for creative people and startups..

The Start-Up of YOU: Rediscovering the Entrepreneurial Spirit in All of Us

5 lesser known reasons why entrepreneurship will make you happy

Almost always starting a business or owning or managing a business is perceived as a highly stressful occupation. We wouldn’t want to dispute it by any means but there’s proof that entrepreneurs are also among the happiest people in the world. Don’t take our word for it. According to the Global Entrepreneurship Monitor 2013 Global Report, entrepreneurs are among the happiest individuals across the globe when it comes to individual well-being and satisfaction with their work conditions. The report said that entrepreneurs worldwide – at both the established and early-stage phases – exhibited higher ratings on subjective well-being compared to those not involved in entrepreneurship activities, suggesting that entrepreneurship could be a good career choice for most.

1. Entrepreneurs do what they love How often do we hear our friends whining about their job, lousy boss or terrible workplace? Well, don’t blame them. There are surveys which show that almost 80% of workforce worldwide hates their jobs. But entrepreneurs are not among them. In fact, many of them got an extra push to startup on their own because they were earlier in a job they disliked. Every entrepreneur who starts a business, owns or manages one, is in love with his or her job. They are passionate about the startup, and are committed to nurture it as if it’s their baby. As we spend a great deal of our life working, if we love what we do at work even if other things in life aren’t all that great, we are happy.

2. Entrepreneurs are constant learners It is the nature of an entrepreneur to learn, constantly, continuously. There are no two ways about it. Each CEO has to be personally responsible for seeking out and committing to professional development. They keep up to date with the latest in their industry, are determined to learn about everything around it. Every day entrepreneurs are confronted with new situations that require constantly innovative approaches. Apart from professional growth, entrepreneurs also grow and evolve as they learn to tackle on crisis after another and keep themselves on their toes. The ability to learn, self-study, and apply new concepts is part of the human experience.

3. Entrepreneurs are busy problem-solvers Entrepreneurs startup with an idea that tackles a key pain-point. So problem-solving is at the core of entrepreneurship. Everyday they have a new problem or two to grapple with, so they have no time to brood over setbacks or wallow in self-pity. As soon as they face a challenge, they have to think on their feet and get busy finding a solution. The obstacles they face are so many that they just learn to trust their gut instincts and march on. They have no time to waste worrying or in idle talk. They have very less trivial chit-chat or gossip as there is almost always a fire to douse. Entrepreneurs are indeed the blessed few who have time to delve only into what makes their hearts swell.

4. Entrepreneurs are resilient What’s the opposite of depression? Not happiness but it is resilience, according to psychologist Peter Kramer. Psychologists use the word resilience to describe this ability to bounce back from adversity. Someone has to take a chance. Someone has to care enough to take risks, spend time, effort and money on something new. Entrepreneurs are those bravehearts who do. We all know human beings can survive all kinds of situations, the ones who survive are those who are resilient. When someone chooses to be an entrepreneur, he is prepared, at least to an extent, to face many challenges. He is an optimist, who can see the silver lining in most situations. Optimism touts plenty of health benefits, including less stress, a better tolerance for pain and, even longevity among those with heart disease. Confronted by a bad situation, successful entrepreneurs perceive it as a challenge and try harder.

5. Entrepreneurs are focused Psychologists have long since studied how when you’re immersed in an activity that is simultaneously challenging, invigorating and meaningful, you experience a joyful state. You get into what is called “flow.” Entrepreneurs are almost always completely engrossed in their startup, and get “caught up” or “carried away” by their ideas. They are so focused in making their business work that this reduces self-consciousness and promotes the feelings of joy. According to Pursuit-of-happiness.org, “In order for a “flow” state to occur, you must see the activity as voluntary, enjoyable (intrinsically motivating), and it must require skill and be challenging (but not too challenging) with clear goals towards success” – all of which are perfect descriptions of what an entrepreneur does