Part 8 of 22 in The Indian Founder’s Playbook← Part 7Part 9 →
Most Indian startup founders mistakenly believe that product and profits drive the business forward. But here’s a hard truth: it’s people first. If your team doesn’t want to show up tomorrow, you’ve already lost the game. Your product will falter, customers will vanish, and profits will become a distant memory. People aren’t just a prelude to the real work—they are the work’s only engine.
The Myth of Profit-First Strategy
Many founders think that prioritizing profits will lead them to success. But chasing profits while neglecting the team is a recipe for disaster. Take Byju’s, for example. On the surface, it looks like a success story with its rapid growth and high valuation. However, when the focus shifted excessively towards profits and valuations, the trust within the team and among stakeholders eroded. Governance issues cropped up as a result. When people are treated as mere resources, the company’s foundation is shaky.
What Taking Care of People Really Means
Communicate Transparently
Your team should hear bad news from you first, not from Twitter or a WhatsApp group. When you have to share unpleasant updates, do it directly and honestly. A team that trusts you will stick around even when times are tough.
Define Winning Clearly
Everyone on your team should know what success looks like for the quarter. This isn’t about lofty mission statements but concrete, measurable goals that even a new hire can understand and repeat.
Reward and Protect Key Players
Identify those who carry a disproportionate load and reward them adequately. Protect them from unnecessary processes and bureaucracy. This keeps morale high and turnover low.
Handle Layoffs with Respect
If you have to let someone go, do it cleanly and respectfully. Avoid the platitudes about being a “family” if you can’t back them up. A professional company can be warm without being confused.
Infosys: A Case Study in People-First Values
Infosys didn’t become a giant by focusing only on profits. It succeeded because it invested in its people. Engineers trusted that the company would train them, share wealth through stock, and treat them with respect. The company’s slogan, “Powered by intellect, driven by values,” wasn’t just a tagline; it was the operating principle. This ethos allowed Infosys to build a loyal, skilled workforce that delivered consistently.
Hiring as a Product Decision
Every Hire Is a Statement
When you hire, you’re teaching your company what it values. If you choose the brilliant jerk over the collaborative team player, you’re sending a clear message about what matters. Zoho, for instance, bet on rural talent in Tenkasi, creating a loyal and skilled workforce trained in-house. This decision wasn’t just about expanding the talent pool; it was about shaping the company’s culture.
Founders Should Be Hands-On
Don’t outsource your first fifty hires to a recruiter. Founders who are hands-on in interviews set the tone for the company culture. Culture is the behavior you tolerate and promote when you’re in the room—and when you’re not.
The Bottom Line
Put your people first. Not as a slogan, but as a daily practice. If you’re not taking care of your team, no amount of product innovation or profit-chasing will save you. People are not a cost center; they are your only sustainable advantage.
FAQs
Why is a people-first approach crucial for Indian startups?
A people-first approach ensures team loyalty, reduces turnover, and builds a strong foundation for sustainable growth. In the Indian context, where talent is abundant but engagement is often low, focusing on people can be your competitive edge.
How can I implement a people-first strategy without compromising on profits?
Communicate openly, define clear goals, reward key players, and handle layoffs respectfully. These practices build trust and loyalty, indirectly boosting your bottom line by reducing turnover and increasing productivity.
What should I focus on when hiring for a people-first culture?
Look for cultural fit over pure technical skills. Hire those who align with your company’s values and are willing to grow with the team. Be hands-on in the interview process to set the tone for the culture you’re building.
Can a small startup afford to prioritize people over profits?
Yes, because the cost of high turnover and disengaged employees is often higher than investing in your team. A motivated, aligned team will drive the product and profits in the long run.
At Malpani Ventures, we believe in mentoring founders to build sustainable businesses. If you’re an Indian startup founder, reach out for hands-on guidance.