Skilled Software Entrepreneur

With a degree in computers from RV College of Engineering, Bangalore, Alok

Gupta landed a job with Tata Consultancy Services (TCS) in 1990. But in 1994,

Alok quit the job to pursue the call of his entrepreneurial spirit.

Alok felt that he was not meant for a job that put him on a desk day in and

day out. Softmart was born in August 1994 soon after Alok bid adieu to TCS. In

Alok’s words, "I was very clear from day one as to what the vision of my

company would be." Alok had spelt clearly from its very day of inception

that Softmart would be a one-stop shop for any kind of software.

Undiluted focus



During the course of doing business, Alok realized that there existed a lot

of latent demand for legal software. The only factor that kept it from being

fulfilled was the fact that awareness among partners was low. And Softmart

always wanted to ensure that its focus remained on software.

Company  Softmart Solutions Start up year   1994 Address   H-19A, Kalkaji Main Road New Delhi  110 019. Phone  011-6444005, 6837415, 6921240  Fax    011-6919242 Email    softmart@vsnl.com  Web site www.softmartonline.com

So Alok decided to evangelize the concept of legal software with the hardware

reseller community. This effort not only brought for the company some measure of

success but also helped Alok establish a channel that he would leverage in the

days to come.

Softmart had also started selling TCS’ EX in the market. He helped TCS

develop a channel for EX under Softmart and was able to sell over 1,000 packages

in the first three years. This also established Softmart as a distributor for EX

in North India.

Adds Alok, "We told our resellers not to refuse any customer for any

software, just let us know and we will fulfill the order." And this is a

reputation that Softmart has built over the years and is enjoying the fruits of

the same today. Says an official from one of Softmart’s suppliers, "Alok’s

understanding of the products and pricing help him address the channel very

well."

The company today has relationships with over 50 overseas software vendors.

It also enjoys relationships with the who’s-who of hardware vendors with whom

the company has fulfilled a large number of orders with special software

requirements. Says Amit Shrivastava, Area Sales Manager, Sonata Software,

"His understanding of the trade gets him the best price from his

suppliers."

Develop a system



Alok has from the very beginning ensured that Softmart works towards developing
systems for doing everything. While the systems have evolved over a period of

time, they are an integral part of any workday at Softmart. For instance, when

the company began operations, it did a large amount of tele-calling to spread

awareness about not only itself but also about the software packages available

in the market. The situation today has changed. The entire traffic has today

become inbound. And Alok ensures that faxes and emails received are prioritized

over incoming phone calls and answered accurately and promptly.

Says he, "All systems should be developed in a manner that performance

is rewarded and those not performing are penalized." Today Softmart on an

average addresses 200 software-related queries coming in from partners from

every nook and corner of the country. Says an official from a distribution

major, "He makes sure that all queries coming from resellers are

addressed." And the official further adds, "Sometimes we also forward

the queries to Softmart even though we are the national distributors for the

product." Complements Tarun Chand, Senior Executive (Purchase), HCL,

"He is very responsive."

Expanding base



Softmart in its initial years worked primarily with hardware resellers based out
of New Delhi. Says Alok with a glint in his eye, "A majority of the

hardware resellers made their first legal software sale through us."

Softmart currently works with a channel base of close to 1,000 resellers. And

this number has grown from an initial few.

Softmart has grown its revenue in leaps and bounds in the last eight years

that it has been in existence. While in the first year Softmart touched a

revenue figure of Rs 40 lakh, it stood at Rs 6.8 crore in 1999-00. The next year

Softmart closed its books at Rs 8.3 crore. And in the year 2001-02, when most

firms in the market were bleeding, Softmart grew to close the year with a

revenue figure of Rs 10.3 crore.

The company today also boasts of a branch office in Hyderabad and a

registered office in Ludhiana.

The learnings



Alok feels that success in business depends a great deal on one’s ability to
be able to evaluate risks. "One has to learn to take risks," says he

thoughtfully. But he admits that he now takes risks more easily than when he

started off.

Another very important learning that he feels must be applied by all in the

trade is that the focus should rather be on the bottomline than the topline.

"A topline with miniscule margins never does good to a business," he

says.

"Always offer value to the customer" has been the guiding principle

for Alok and Softmart in all its dealings. Pulling customers on just price

points is a strategy that does not take a company too far, he feels.

Alok is of the firm opinion that one should do business in only those areas

where one has his strengths. Through his stint at TCS, he had total

understanding of the software market and he went on to capitalize that.

Similarly he feels that the moment one deviates from one’s core strength,

success will elude the person. And it is because of this factor that Alok has

specifically decided to abstain from entering into software retail. "The

company will never dilute its focus from the reseller market," says Alok

realizing that that’s where Softmart’s strengths lie. Adds Shrivastava of

Sonata, "The fact that Softmart is not addressing other markets in an

indication that they recognize and appreciate their strengths."

Mohit Chhabra in New Delhi