Scot Technologies : Gaining Wisdom From Failure

As a young boy, Prem Nair from Trivandrum used to frequent his friend's house
to chat with the latter's father, who shared his experiences of an
entrepreneur-from dealing with tough clients to striking a successful deal to
handling a troublesome employee. These childhood aspirations of becoming a
successful businessman played a vital role in nourishing Nair's dream, which was
fulfilled when he started his own company, Scot Technologies.

After completing his BTech and MBA from the University of Kerala, the wheels
of destiny took Nair to Mumbai, where he worked in a company's mechanical
division for few years. Later, he went to the Gulf to work in Qatar Petroleum as
a mechanical engineer in the company's project management division.

Cautious entry into business

After gathering experience from Gulf, Nair returned to India and started a
fabrication unit. Nair ran the unit for eight months which was shut due to labor
problems. “I was really upset and confused that time, but I did not give up on
my ambition,” Nair recalled.

He once again sought and found a job at Steel Industries Limited Kerala
(SILK). He worked as a procurement manager there for three years and then got
married. He said that although this was a happy period in his life, he still
harbored the notion of doing something different.

While working at SILK, he did a software course and keenly started observing
the happenings in the IT market by reading business dailies and magazines. At
this juncture in his life, he decided to start a business in this space. One
fine day, when he told his family members that he is going to quit the job, they
were reluctant that he is quitting a secure job.

“I always thought it was not what I want to be. But, I took it as a great
learning experience. I observed the way the employees react to management's
decision, and the way a business is run. Those nine years of work experience was
second schooling for me,” Nair nostalgically remarked.

Turning Point

Nair started his business in the ever-changing IT industry with a lot of
caution. “In 1995, when the IT market was booming, I started selling Microsoft
and Symantec products with one employee and with an investment of Rs 60,000. The
turnover in the first year was Rs 6 lakh. I used to work day and night, without
taking any break,” he mentioned.

It took two years for Nair to stabilize the business, to learn all the
nitty-gritty of the trade and to appoint a girl at the front office reception.
“Initially, I had lot of problem with delayed payment and other financial
issues.”

But he kept preserving. “For anyone who is stepping into business,
determination and clarity of thought are very much essential. Most importantly,
he should not be shaken up by small issues and should always keep the thoughts
around his aim. To the extent possible, one's own money should be deployed into
the business instead of other people's money to get the real commitment towards
work,” Prem noted.



His USP: Ethics

There are lots of new entrants into the channel market who do not have any great
ambition. They just have a short-term goal of making money mainly by
undercutting the price. Nair saw how such players would be present in the market
for few months and would disappear when they got a job.

“This should not be the attitude of a businessman. Moreover, it sends wrong
signals to the minds of the customers,” he remarked. He feels there should be an
effective control mechanism in the market.

In business, ethics is the most important thing. The more you follow it, the
more business will come to you in time, Nair said.

In about 15 years time, Nair grew his business from an annual turnover of Rs
6 lakh to Rs 9.5 crore. Currently, this team strength stands at 24 people.

During the initial phase of business and tough times, his wife Manjula, a PhD
in Biotechnology, has been a very strong support to him. She took the entire
responsibility of managing family affairs which helped Nair focusing on
business. At present, she works as a scientist at Rajiv Gandhi Center for
Biotechnology.

Managing Business

Besides dealing with licensed software products and software solutions, Nair has
now started distribution of Fuji digicams, distribution of Aircel products in
Trivandrum, and is an authorized reseller of Apple products. He owns a 1,000 Sq
Ft Apple showroom at Trivandrum. In addition, he runs a franchise of Tata
Group's CMC training academy.

“I spend about two hours every day for each business. I go around, collect
the daily reports and give instructions to my team. I always believe in hiring
the best human resource, which is the key to success for any business. My team
is very efficient in execution of any plans and achieving the set goals. They
are my strength,” Nair stated.

One of his friends always tells him, “Prem, you never sleep.” To this, Nair
replies, “When you are 100 percent involved in your business and committed to
expand it and succeed, you hardly find the time to think of something else”.

Nair makes time for routine exercises, meditation and jogging to energize
himself. Reading business magazines is one of his favorite passion. These days
whenever he finds time, Nair catches up movies of Shahrukh Khan and Mohanlal and
ensures that he takes his family for a picnic to some nearby location to spend
some quality time once in two months. After all, a family that enjoys together
truly stays together.

VASUDEVAN N

(vasudevann@cybermedia.co.in)