Eighth wonder - Power of Compounding

This article is based on a common thread of thoughts across various walks of life - be it investing, career, personal growth and so on. The common thread is the discovery of the inflection point when results far outweigh the ongoing efforts. When money grows at a much faster rate than the ongoing contributions; when the efforts put in a job are far less than the results coming out of it; when the physical output of the body (in a race) is far faster then the recent routines; when your followers on social media engage with you more than it used to; and so on.

In my opinion, the common thread in all the above scenarios is Power of Compounding. As #Einstien famously said - "Law of Compounding is the eighth wonder of the world"; it actually applies everywhere. What is compounding? Compounding is multiplication of small contributions done on a frequent basis till a fixed time when the output results much more than a linear addition.As learnt in mathematics, Vs a simple interest (SI=P*R*T), it is CI = P*(1+R/n)^nT where P is principal, R is rate of return, n is frequency of contributions within T, and T is time period and is always higher than SI. The key elements in this power are - P, R,n & T.

Lets look at investing, if you keep focusing on these 4 parameters - Start the investing process early say at the age of 18 (T is on your side), pick instruments which give higher returns (R) & keep putting these amounts at high frequency (say small investment but every day/week/month/yr (n), so that amount invested grows faster (P); you are looking at financial freedom. SIPs in mutual funds is an implementation of the same idea.

Lets look at sports/fitness, if you need to run a marathon in a stipulated time, you have to start with a discipline of effort every day (frequent contributions); followed by increase in durations (5k->10K->15K and so on); multiplied by a duration of such effort. At one stage, you will realize that you are clocking a mile much faster, also the effort it needs to consistently clock a 5K is slowing down. Most runs get converted into easy longer runs Vs when you first started. That's the inflection point. And what it means is that compounding of small disciplined efforts is now paving way for faster results.

Malcolm Gladwell, in his book, "Outliers" talks about 10,000 Hrs rule - If you invest 10,000 hrs into something; you master it. He says Why Beatles or Bill Gates were extraordinary success because the circumstances around their lives made them invest 10,000 hrs in playing or programming leading to mastery. Now, that's to an extent is also a result of application of power of compounding.

Take Career. The effort needed to make the first sale obviously is more than when you have mastered it. First you apply more hours and make up for lack of skill through quantity; but later as you develop the networks, the persuasiveness; you put in lesser quantity as power of compounding of consistent action is on your side. That is precisely the reason, as why most successful people mention 'Daily Habits' as the number one reason of their success. Good things done daily make themselves excellent over a period of time. And that is exactly why great quotes like these exist -

"You will never change your life until you change something you do daily”— Mike Murdock. “Little strokes fell great oaks.” –Benjamin Franklin

Slow and Steady wins the race - from the Hare & Tortoise story, is nothing but power of compounding! Small but consistent contributions will result in far greater results vs infrequent sprints. That's what stock markets are about. That's what careers are about. And i think, that's largely the life is about. Keep believing in the process, put in consistent efforts and you shall see the results coming through! Believe in the Power of Compounding. Ending this piece with another Einstein quote - "He, who understands the power of compounding, earns it and he who doesn't pays it".

Disruption = Demand, Supply and medium. A case of hotels

Disruption = Demand, Supply and medium.

In all industries, its the above 3 factors which define the transaction. And there lies the opportunity of #disruption.

Take example of #Hotel industry, demand was managed thru special travel agents who worked with special tieups and codes, making a booking a closed game. Boom. Came OTAs (Online Travel Agents) - #MakeMyTrip, #Ibibo of the world and disrupted the demand piece opening it for consumers.

Then came, #socialmedia and review sites like #Tripadvisor which forced the supply side to fix things up or perish as #consumer started booking basis reviews, giving power to the consumer and putting focus back on customer service.

And, sheer power movement from supply end to the consumer was not enough, boom, came #Airbnb/#oyo of the world which created newer ways of stays and created newer supply, right from consumers itself.

The disruption is because of change in the Medium which intersects demand and supply where all the above .coms and apps thrive. And it applies everywhere. Taxi industry - From power to suppliers like Meru its now with 'medium' of #Ola and #Uber.

The future belongs to those who take care of consumer and keep looking at disruption opportunities and embrace change.

Patanjali & its captive consumer

With news of #Patanjali realizing its apparel dreams with 'Patanjali Paridhan' coming to fore, one can imagine what opportunity it is trying to tap in this category.

Its the big mass of loyal #customers who use patanjali ayurvedic medicines and FMCG products. Demographics - Everywhere, middle aged to old, across SECs. Psychographics - Faith in roots: be it ayurveda, swadeshi, religion, indigenous culture and so on.

What kind of #apparel will make sense? - All growing categories in apparel - Ethnic wear, athlesiure (read yoga wear), inner wear (closer to skin organics) and basic essentials in western wear.

#Brand Promise - Sasta, Shudh & Swadeshi.

"Clothing is Baba Ramdev's next big bet. His enterprise Patanjali — which has disrupted India's FMCG market — is set to enter the apparel business by May, The Ken reports (behind paywall). ‘Patanjali Paridhan’ will have 600-700 retail stores across the country in Tier 2 and 3 cities, though it has also partnered Big Bazaar’s fashion arm, FBB, for distribution. The products, priced at Rs 300-2,000, will compete with the likes of affordable fashion store V-Mart and FBB itself." - Linkedin News

2018 - Finance Goals

As new year arrives every year, we make a lot of resolutions and goals, out of  which there goals to manage our finances.

One would realize in life, that money can only be multiplied through investing, rather than putting endless hours in a job. Most of us, dont focus on multiplying money that we make, we just focus on making the money which is a much smaller amount than our life goals.

As stated in Rich Dad Poor Dad book, rich make thier money work while poor work for money.

Thus think about how to make your hard earned money work this year.

Here is an article on few thumb rules to fix the basics of your finances. Begin.

9 Thumb Rules Of Investing: Where & How Much to Invest? http://www.magzter.com/articles/2829/237142/599ca0cd36795?mg_pf=android_magzter&utm_ID=6585486

New Year #Resolutions & 'how' to stick to them in #2018!

New Year #Resolutions & 'how' to stick to them in #2018!

We all have this 'resolution syndrome' to pick up all should do(s) at least this year...every new year. But it doesnt happen.

Here is how you can do it in 2018 -

First, the resolution has to be something with a big '#why', something which is more than just a 'should do'. What is it that you want to offer the world? Who do you want to be, what do you want more of in your life? And then asking: “How might I get there? What would create that as a consequence?”

Second, outsourcing #willpower really works. Share your resolution with somebody to have a collective force to force you to stick to it. A friend, partner, etc can really pull you out of bed on your weakest days.

Third, #Bribe yourself. As with any habit making, add a reward after the act or reaching a milestone. A reward that obviously doesnt impact the resolution.  Eg, a shopping spree after a monthly goal.

Fourth, making your #goal public gets you #socialsupport. When you share something in public, say facebook; people's likes/comments add to the fuel.

Go ahead! And make it real this 2018!! It has given me the power to stick to mine in terms of #running as a #habit.

Summarized from this nice article -
https://lnkd.in/fjuRmVh

Zomato MC BC campaign - Hot n Delivered

Zomato Campaign - Hot n Delivered in time! But erred on one.

The recent outdoor campaign by #Zomato, a food search and ordering app #brand; gotten itself mired in a #controversy trying to be too cool.

In my opinion, the #campaign did deliver in terms of first objective of being noticed with its clever one-liners inspired by pop culture.

Oonchi hai building lift teri band hai..
Rajni cant do it, we can..
Crime master b.o.g.o...
Acche din..
Mc. Bc...

Err..the last one didnt go well with a lot of people. Rightly so. If pop-culture is abusing (say in delhi), u cant use it to attract eye balls. That too from a brand seemingly anchored in a sage + explorer space archetypes.

However, i think after a long time, a fantastic and optimal usage of #OOH media with clear agenda of Noticeability, Simple Messaging (just words, no image) ,clear 'brand colour+logo' presence and optimal usage of space on varying sizes without impact on readability.

That too from a category, which has just been putting food pics every now and then across media types. #Brilliant!

Just with that error of one creative...going awry. The lesson is to mind the gap between 'excellently relevant and creative ' and 'creativity going over the top'.

Pic credit - #livemint

Understanding Social Media and Donuts

Social Media decoded in one picture! Thats a fantastic way to explain #socialmedia platforms and thier usage by audiences!!

#Twitter is about immediate information and news while #Facebook is a richer way to exhibit your interests with your friends.

#Foursquare is locational vs #Instagram/#Pinterest is more about romancing the visual medium with filters and edits.

#YouTube obviously is about extremely rich audio visual content for storytelling while #LinkedIn is all about telling the world about your skills and experiences to add value to the network.

#Google plus's narrative is something which is not what i subscribe to, though it speaks of its least usage and fading away.

#Donuts for eating!!

However how #brands use it mostly? Same content (shots/vids/pics) on donuts replicated all across platforms!

What they get out of this lesson? Irrespective of nature of social media platform, just plug in the donuts!!

And show it bigger and better! Zoom on it, show it big size; anybody whether on twitter or facebook or Instagram should not miss my BIG DONUT!! Its all about the Donuts!!

Pic Credits - #MadOverMarketing.

Millenials behaviour and opportunities

#Millenials consuming behaviour and #privatelabels push of online retailers, is seriously cooking up a #retail #storm!!

Few key symptoms -

1 Millenials demand #performance vs #logo - Its not about flaunting a logo that labels them as connesieurs, its more about understanding what they possess. Its like apple vs nexus or one plus. Explains the rise of such brands.

2 Millenials seem #practical in price value equation - Marketing and Brands is about profits, doesnt appeal to them, they are ok with private labels with quality output. They read #reviews to trust a new brand and easy return policy makes it work.  Shows growing emergence of private labels like amazon basics.

3 Millenials #search #google or app for literally everything - Thats a big one! Thus, white dress shirt search will land them to more often than not to private labels rather than the white shirt from ralph!

Imperatives??

#Brands need to create an unmatchable offering mostly thru fantastic quality at the right price. And engage in whys of #storytelling of how the brand aligns to thier #pragmatism. Curate personalized collections via #VisualMerchandising in a physical store. Plan #human-interaction to aid in story-telling and #feedback so that u appear as a brand that cares.

Elephants can Dance! - From Maruti to Haldirams

Elephants can Dance!!

Haldiram & Maruti on the front page of The Economic Times Times today for positive reasons.

With 'natural', 'authentic' and 'indigenous' elements creating a new trend and increased demand, #Haldiram toppling #Pepsi from No 1 snacks player by turnover is a sign testifying the wave.
From humble beginnings in Bikaner to chance expansions in other parts and later managing the entrepreneurial spirit thru 4 generations; Haldiram story has its share of ups and downs, as mentioned in a book - Bhujia Baron. But today's news makes a new cover page!

#Maruti, from a brand that ran its 800 model for more than two decades with incremental changes; today is a model churning behemoth.
From mass to class, the brand has brought numerous car brands with 'ferrarian' speed to make it premium and yet with volume. From Swift to Dzire to Ciaz to Baleno to Grand vitara, it has some 6 cars in top 10 passenger car market by volume.
From a brand around value (kitna deti hai?) to premium appeal (Nexa experience) it has hit home run everywhere. No wonder the stock is pricier than #Ferrari.

Indian #Elephants are starting to #Dance, a properly  choreographed one!! #MakeinIndia

#consumer #businesses #india

Movie Review - Dangal

There are movies which are made for pure entertainment, to be watched at one time to let go of your realities of life. And then there are movies which are made to inspire and motivate you to face those harsh realities of life. Dangal belongs to latter.

I am no particular khan fan. But Aamir yet again, at the end of year gives a chance to reconsider him, to fall in love or under awe with him. The sheer work ethic with which I am told that he pulled off the makeover of time travel in the movie. Aamir is one of the finest, be it pk, 3 idiots, ghajni, Laggan...and list is on.

Dangal is spectacular. Dangal is masterpiece. Dangal is a movie you live inside with. Dangal is a movie you take out with you in ur lives. Dangal is a concoction of real life heroism and smart dialogues and brilliant performances.

Aamir as an actor makes you feel his life as he prepares his girls to the time he is tested by her disciple only. You run thru what his character goes thru and feel his emotions all thru. And he does it by putting right Haryana accent to gem of dialogues. He says once in the movie - Dangal ladne se pehle,  dar se ladna padta hai!

Geeta kumari played by 2 girls - younger and older version as a character was the executor in the script, her father being the master. Fantastic performance by both girls, but I really fell in love with the small girl who spoke so fantastic haryanvi and shown the dare in her eyes as she prepared to fight against men.

Babita as a character,  is the side role and done justice again by the other two girls. She displays that fine nuance of understanding her father when relationship of her father with geeta goes awry. Her smaller version also gives those funny punches to the movie which are required to tone down the intensity.

A sidey,  the cousin of the sisters plays a vital role of fun and an effective narrator of the story.

Music is awesome and I wonder how primal pulls such kinds at times. I liked gilahriyan and obviously dangal title track. Written by amita Bhattacharya, it's an amazing song..I liked the lyrics after a long time..may be since chak de india track, in that genre.

And, without giving any spoilers, at the end of it you gather a lot of things from the movie, - a desire and motivation to win against all odds, great lesson as a parent on what all Mahabir did for her daughters and how future of kids is dependent on the parents,  and above all the passion and dedication that the trio showcases on screen to achieve the end goal of getting and international gold.

It's a must must watch for anybody who wants to live life! And it's a truly story. So much inspiring life!!