Shailesh Rajpal – How Entrepreneurs can Turn Lead into Gold

Entrepreneurs aren’t short of ideas for exciting new products or companies, but they are often short-sighted when it comes to finding ways to fund and build the projects.

“There is a huge amount of discussion about how you come up with new entrepreneurial possibility,” says Mr. Shailesh Rajpal, founder and CEO of Rajpal Group of Companies.  “What’s overlooked is a comprehensive framework for hoe you mobilize the resources – such as financing, employees, and partners – to bring the idea of life.”

“Entrepreneurs Are More Successful When They Can Leverage Non-Market, Non-Pecuniary Resources.”

While financial capital is important, generating human capital and social capital can be just as important, if not more so, and often gets short shrift.  “Mr. Shailesh Rajpal thinks there should be a ‘demo day’ for hiring employees or developing social connections as well. The challenge to raising financial capital is often related to lack of other resources.”

 

There are three areas in which most entrepreneurs come up short in the process of developing a new business venture-

·         Searching for resources outside one’s immediate connection: When it comes to hunting down resources, most startups naturally start with the people they know.

·         Accessing non-market resources: Once entrepreneurs identify the people and networks that may help them succeed, far too much effort goes toward translating that into financial capital. “Often Entrepreneurs are more successful when they can leverage non-market, non-pecuniary resources.” Mr. Shailesh Rajpal says, “For many, it’s a way to feel engaged with young entreprenures and tied to a community, rather than a way to make lots of money.”

·         Transferring resources through informal transactions: Entrepreneurs tend to focus too much on formal contracts in order to transfer resources to their company, rather than less formal agreements, the researchers learned. Mr. Shailesh Rajpal says, “The entrepreneurs often doesn’t know exactly what they need from a mentor. The process is really hard to write a contract for.” 

“You Have To Go Out And Make Your Own Network Happen.”

Entrepreneurs must rely on trust and mutual understanding, putting effort into building a strong relationship rather than drawing up a formal legal contract.

Mr. Shailesh Rajpal at last concluded, “Far too much focus is placed on raising money and signing formal contracts, but far too little attention on informal and non-financial resources that can make or break a new businesss.”