The current global financial crisis is our generation's first brush with "reality". Growing up in 90s, we read, heard and saw the great Indian dream coming true. We saw the cable TV revolution happen in front of our eyes. We stood in long queues to buy our first Mc-burgers and we ordered our first pizzas on the phone. We saw our elders jubliantly discuss the stock market which could only go in one direction - up! We read in newspapers about the fat pay checks the new "MNCs" were offering to kids fresh out of college. While ourselves in college, we learnt about this place called "Silicon Valley" which was apparently dominated by the Indians and "every third company there was started by an Indian". Yes there was minor blip of a "dot com bubble" but we quickly forgot about it as we ourselves joined the hordes of young educated Indians who were going to shape the future of the country.
Life was good. In contrast to the socialist 60s, 70s and 80s, 90s and the current decade were all about capitalism. Capitalism brought with itself growth, oppurtunities and wealth. In terms of making money, the new generation started where their parents used to retire. So, in the context of all this, the current financial crisis and the breakdown of large captialistic economies can only leave the likes of myself confused and bewildered.
But having said that, I feel almost thankful that this crisis happened when it did. As the first generation that grew up wearing rose colored glasses, we are still young and nimble to adapt ourselves. Had the utopia of past 15 years lasted another 10 years, a lot of us might have found ourselves too entrenched to dig ourselves out. Secondly, the shake up of the financial world is likely to create a recession like environment for at least the next couple of years. This will be a great time to build new companies. This will be an excellent time to identify and recruit top notch talent at reasonable costs. While raising capital for new ventures will certainly be hard, it might actually get easier to raise money for existing businesses that are relatively safe and established.
Personally, now more than ever, I feel thankful that Tekriti is a cash flow positive business. Our choice of starting with a core services business was, in retrospect, very much correct. Our conscious decision to focus more on domestic business should help us in these times. For companies that are cash flow negative and will need to raise money to survive, things are going to be very hard. This turn of events is completely unexpected and almost no business could have foreseen it or be prepared for it. So, as all of us gear up for the things to come, I only hope that this down turn will not dampen the entrepreneurial spirit that has just started to grow in our country!
Very well put and I kind of agree that its good to have a reality check and its kind of necessary to get our feet back on ground. Maintaining the same pace shouldn't be a problem for companies who've had their basics right while starting up during the 'good' times.
This would certainly segregate the boys from the men :P
Thats true. The reality check given by the stock market crash and the loop holes of capitalist system are glaring at us. I hope we learn from it and not only make "greed" and relentless pursuit of money our main motive. That, according to me is the biggest message of the current mess. I hope too that entrepreneurial spirit do not take a hit, but more importantly, all of us realize that there is more to life than only working for profits.
Gaurav: Good that Tekriti is cashflow positive but not a listed company yet!
Prateek - I think its a little harsh to say that this crisis will separate the men from the boys. This is an unprecedented situation and almost nobody could have been prepared for it. Those (especially startups) who survive will do so in part due to their prudence but also in large part due to good fortune!
Pravesh - I agree. Unfortunately even those who were not greedy do get affected in such circumstances.
Manik - good to hear from you! Where have you been? Havent seen you any of the barcamps lately!
Gaurav,
Haven't been to the last 2 barcamps. Will definitely be there for the facebook garage if it does happen.
And all the best with CusineCheck. Congratulate Palak on her (I assume) maiden venture :)
Hi Gaurav ,
Really good that you blogged about this -Recession and Reality Check. There's one *+ve* side to it which you possibly missed out. Ever since you passed out of IIT, times have changed and a ridiculous number of people (after studying CS, EE for undergrad) were taking up Analyst roles in Consulting and Finance and doing nothing more than working on spreadsheets all day long. Maybe the recession might cause them to scurry back to their roots and contribute to the Tech front ! I've blogged about it too, read it and comments are welcome :)