On the occasion of inaugurating MMA’s new chapter in Vellore, C.K. Ranganathan, Chairman and Managing Director of CavinKare Private Ltd and Past President of MMA, shares entrepreneurial insights on grit, growth, governance, and legacy—emphasizing systems, adaptability, and visualisation for success.
The journey of a business owner is rarely linear. It begins with chaos, uncertainty, and the urgent need for validation. In the early stage, the product-market fit is unclear, and survival takes priority. Resilience and belief are often the only fuel an entrepreneur has. We are unsure whether our business idea will become a winner or a failure. Most decisions are taken solely by the owner, and many struggle to stay afloat. At this point, some even give up and return to salaried jobs. Out of every 100 who venture into business, only four or five manage to succeed. But history offers us inspiration—like the story of Ghazni Muhammad, who failed 17 times but never gave up and eventually succeeded. That persistence is what defines this stage.
Survivalist
The second stage is that of a survivalist. The business begins to generate enough income to meet personal needs. However, the owner still handles everything directly, wearing multiple hats. The danger at this stage lies in becoming too comfortable with mere survival and losing sight of greater ambition. A contented mindset is not good for a business. I recall working in our family business after graduation for about eight months. My father had a conservative approach—he believed in running the business without expansion. But my brothers were driven by ambition. They wanted to grow and take risks. Eventually, my father retired, and my brothers took over with a vision to scale the business.
Growth Architect
Stage three is the growth architect phase. The business begins generating profits, and the idea of expansion becomes viable. At this point, the owner must focus on building systems, processes, delegation, and a pursuit of excellence. It requires a critical shift—from working in the business to working on the business. When you’re working in the business, you do everything yourself. But working on the business means you step back, create structure, and lead strategically. When I started my own venture, I was doing everything—from procurement to delivery. But as the business grew, I realised that scaling up demanded a shift in mindset. I had to enable systems and trust people.
System Builder
The fourth stage is about becoming a system builder. This is when the business becomes self-sustaining and runs efficiently even in the absence of the owner. At this point, the focus turns to building scale and investing in the brand. As Dr. David Schwartz says in The Magic of Thinking Big, people who hesitate to share their dreams rarely achieve them. When you openly speak of your ambition to grow big, you reinforce your own commitment to achieving greatness. It’s at this stage that you begin to think beyond profit—you begin to think of impact.
Serial Entrepreneur
Stage five marks the emergence of a serial entrepreneur. Here, the owner begins to explore new opportunities, launches new ventures, and manages a portfolio of businesses. Delegation becomes absolutely critical. Technology becomes a core enabler in scaling operations across ventures. At this level, the entrepreneur is no longer just building a company; they are shaping an ecosystem.
Legacy Builder
Finally, stage six is that of a legacy builder. The focus now shifts to mentoring others and creating opportunities for them to grow. The business becomes a platform for enabling others’ aspirations. The owner begins to think about legacy—not just in terms of wealth, but in terms of values, leadership, and culture that will outlive them.
Across all these six stages, some traits remain constant. Grit is essential—the inner toughness to handle rejection and setbacks. A learning mindset is critical to constantly improve and evolve. Taking full ownership, without blaming others, is a hallmark of a responsible leader. Customer obsession—solving real problems with genuine intent—must remain at the core. Finally, adaptability is key: the ability to pivot with purpose when circumstances change.
I Am Not in Office
I have made many mistakes along the way. When I first started, I didn’t even know how to order materials. Often, I would overstock, which disturbed the working capital and strained the cash balance. When supplier payments became overdue, I would ask my staff to say, “Sir is not in office.” But one day, I realised I was setting the wrong example. I decided to face the issue myself. When I finally answered the supplier’s call, he was understandably upset about the delayed payment. I requested him for two weeks’ time. I then borrowed money from another source and repaid him on the promised date.
That episode was a turning point. It made me reflect on the importance of inventory management and cash flow planning. I needed support—so I hired a Chartered Accountant to guide financial discipline and a planner to help structure operations. The finance head began providing regular cash flow forecasts. That was when I realised: business is not just about courage and passion—it’s about systems, accountability, and planning.
Grit and Governance
An essential element of grit is also governance. As a business owner, you should feel confident enough to leave the office, knowing that your No. 2 will not discover or expose any unethical practices. For that, you must create a culture of transparency and set up proper systems. Good governance is not optional; it is foundational.
We eventually began confronting our problems head-on. I made it a habit to discuss challenges with the team and brainstorm for solutions. Many valuable ideas came from the grassroots. I would not have grown if I had kept everything to myself. Involving the team created a sense of ownership and brought in perspectives I would have otherwise missed.
Learning Vs Knowing
Another critical trait is learning agility—the mindset of learning it all rather than assuming you know it all. I’ve always been fond of books and powerful quotes. One of my favourite quotes is: “A person is a product of their own thinking.” Many of us go through life as accidental thinkers. Over time, I’ve transformed into a more methodical thinker.
In today’s world, independent thinking is scarce. We’re constantly flooded with notifications, messages, and distractions. To reclaim my focus, I began using my travel time for reflection. One book that deeply influenced me was The Ten Natural Laws of Successful Time and Life Management by Dr. Hyrum Smith. One idea from that book has stayed with me for years: invest at least 2.5 hours every day in yourself.
I adopted a simple routine—wake up at 5:30 a.m. and use the time from 5:30 to 8:00 a.m. purely for self-growth. Initially, waking up early was hard, but within three months it became a structured habit. During that time, I would read management books, jot down key insights, and plan how to apply them. I would even insert these actions in my calendar. Over time, I saw tangible changes—more confidence, bolder decision-making, and sharper clarity. Because knowledge, when used, becomes real power.
Stop Blaming
Your business can grow only as fast as you grow—in mindset and thinking. A sportsperson trains daily. A musician practices every day. But as business owners, many of us neglect preparation. Without preparation, you cannot succeed.
Ownership is not just about having control—it’s about taking full responsibility. Start solving; stop blaming. In growing companies, great teams are built on a foundation of strong accountability. In the legacy phase, reputation becomes your capital—and ownership is what protects it. I often remind myself of the phrase: “Victims wait. Owners act.” As entrepreneurs, we must stop blaming the environment and start declaring: “I will grow despite the environment.” A complaining mindset can never create a successful enterprise.
What is Your Moat?
Customer obsession must be your north star. It is not about discounting, but about delighting the customer. Identify ways in which you can exceed customer expectations—through innovation, service quality, product variety, or experience. That’s how you create your own moat—a unique competitive advantage that sets your business apart. Your moat becomes your USP.
Warren Buffett avoids investing in businesses that lack a moat. Take the example of Asian Paints. Their moat lies in their phenomenal distribution network. While there were many paint companies in the market, most failed to scale. Asian Paints did something different—they studied the market closely and found that dealers had to maintain large inventories of different paint shades. So they promised a new solution to the dealers: “We’ll collect your requirements every evening and deliver them the next day.” They introduced paint mixing in their own godowns, strengthened their delivery system, and dramatically improved service. As a result, dealers started shifting to Asian Paints, as it allowed them to operate with minimal inventory.
Today, Asian Paints continues to grow by embracing marketing innovations, customer-centric practices, and operational excellence. Their success story reinforces one simple truth: customer obsession—executed with insight and consistency—builds enduring businesses.
One software company made a bold claim: they could execute any order at 30% less cost. Their strategy was to pass a 10% discount to the customer while retaining the remaining 20% as their margin. This highlights an important lesson—creating a moat or differentiation is critical for long-term success.
If you own a sweet shop and the next shop also sells sweets, relying solely on discounts won’t take you far. You can’t build a sustainable business just by lowering prices. This is where business owners must spend serious time thinking about how to differentiate their product or service. True growth comes from standing out.
Power of Adaptability
Adaptability is the ultimate survival skill for any business. Dinosaurs, despite their size, became extinct because they couldn’t adapt. The same fate has befallen many businesses that failed to evolve. Today, artificial intelligence (AI) presents both a challenge and an opportunity. New-age business models are constantly disrupting older ones. Amazon, for instance, displaced countless physical bookstores. According to an article in The Economic Times, over two lakh kirana shops have shut down, unable to compete with the rise of e-commerce.
I operate in the consumer goods sector, and I believe AI will play a transformative role in generating consumer insights. If I don’t adapt to AI, my company risks becoming irrelevant. That’s why we invest significant effort in change and renewal—to stay relevant, responsive, and ready for the future.
Discipline and Values
Discipline is another essential ingredient for success. Let me ask you—how many of you regularly use the calendar app on your smartphone to plan your daily schedule and actually follow it? The use of a calendar reflects not just time management, but also your ability to plan and maintain discipline. Effective time management should be calendar-driven, not memory-driven. A disciplined routine ensures consistency, productivity, and peace of mind.
Values are the bedrock of trust. Reputation takes decades to build, but can be destroyed in a matter of seconds. That’s why values must guide your decisions and form the foundation of lasting trust. Early in my journey, I started writing down my personal governing values. Initially, there were just seven. Over time, that list has grown to 54. I review them periodically and ask myself if I am truly walking the talk. One of those values is about spending quality time with family. It’s easy to overlook, but it’s a crucial part of a well-rounded life.
Integrity is your greatest insurance. In business, we must go beyond stakeholder satisfaction—we must aim for stakeholder delight. If people are leaving your organisation, don’t simply accept it. Ask why. Often, it’s not just about the job—it’s about recognition, growth, and fair compensation.
We run a bakery and a salon. Like many others in the industry, we were facing high attrition. I asked my son, who manages the bakery, whether he could offer take home salaries above the market average. Today, take home pay matters much more than PF and ESI contributions. His immediate concern was that it might affect profit margins. I encouraged him to explore other ways to improve margins instead of cutting back on people. He took the leap and implemented the higher pay structure.
Six months later, we saw the results—attrition dropped to zero. When your team feels valued, they stay committed. If your people perform well, there is nothing wrong in paying them more. It’s not an expense—it’s an investment in long-term stability and performance.
Financial Discipline Builds Credibility
Paying vendors and repaying bank loans on time is non-negotiable. A delay in repayment not only incurs overdue interest but also impacts your CIBIL score. Once your credit rating is damaged, banks become cautious, and you may be forced to borrow from private lenders at much higher interest rates.
In my early days, I often delayed loan repayments, thinking it was manageable. But when we completed our first term loan and approached the Tamil Nadu Industrial Investment Corporation (TIIC) for a fresh proposal, they pointed out that we hadn’t paid even a single instalment on time. That was a wake-up call. We immediately tightened our cash flow forecasting and ensured timely repayments. As a result, we were acknowledged as a ‘Green Card’ holder—a status that meant our loan applications could be cleared within 24 hours, provided the proposal was sound. From that point onward, we never defaulted.
Timely Salary Builds Employee Trust
Initially, we paid salaries on the 5th or even 10th of the month, depending on our cash position. One day, a very efficient employee resigned. When I asked him why, he replied, “Every month, my landlord scolds me for paying rent late. The new company I’m joining pays on the 1st without fail.” That hit me hard.
Since then, we made it a policy to disburse salaries on the 31st of every month—for the upcoming month. Today, this practice has become a powerful retention and recruitment tool. People want to work with us because we respect their dignity and financial planning.
Compliance Is Strategic
The government is a key stakeholder in any business. Compliance with GST regulations and income tax obligations must be taken seriously. When I first appointed an auditor, he said, “I’ll accept the assignment only if you’re ready to pay income tax.” That surprised me, because most advisors look for ways to minimise tax. But I agreed.
Prompt payment of income tax turned out to be a strategic advantage. It strengthened our financial credibility and allowed us to secure loans from banks—sometimes without even offering collateral—based purely on the strength of our balance sheet. We started with a modest ₹25,000 loan. Today, banks extend us credit facilities of up to ₹500 crores. For new proposals, we even compare offers from multiple banks and choose the one with the best pricing and terms. That’s the reward of being compliant.
Personal Discipline Over Personal Comfort
Do not divert business funds to build personal wealth. It took me 20 years to buy my first house, and I did that only after our company’s turnover crossed ₹300 crores. Until then, I lived in a rented home. That is the level of discipline I believe every entrepreneur must cultivate.
There’s a saying: there are two types of businesses—family businesses and business families. In a family business, wealth creation is often family-centric. But in a business family, the priority is the business. And when the business thrives, the family naturally benefits.
Fail Fast, Fail Small
Failures are inevitable—but they are not the end. Every setback is a rehearsal for resilience. Our approach has always been to fail fast and fail small. We avoid taking giant leaps. Instead, we experiment in small steps, learn quickly, and then scale what works. This mindset allows us to take many more initiatives. Without innovation and risk-taking, growth is not possible.
Surround yourself with people who are better than you. Hire for attitude and train for skill. Your second line defines your ceiling. Many business owners are hesitant to empower others. They prefer giving instructions rather than building capabilities.
In my organisation, when I conduct meetings, not just department heads but two or three of their team members also join. We invite suggestions even from junior employees before implementing any major change. This practice not only improves decision-making but also becomes a form of coaching and culture-building.
It’s not about what you have—it’s about what you do with it. Limited resources can actually spark greater innovation. Constraints force you to think creatively. In this fast-moving world, focus is a superpower. Don’t chase a hundred rabbits. Catch one. Ruthless prioritisation enables sustained growth. People don’t fail due to lack of funds; they fail due to a lack of ideas.
Don’t Scale Without a Second Line
A friend of mine, who runs a successful internet business and earns ₹5 lakhs a month, recently told me he wanted to start another venture. I asked him, “Can your current business run without you?” He replied, “No, I manage everything myself.” I cautioned him: “Don’t jump into a second business unless you’ve built a strong second line in the first.” It’s easy to get excited about growth—but scaling without structure is a recipe for disaster.
One of the most valuable investments you can make is in yourself. I believe in the power of consistent self-investment, and I’ve seen the results firsthand. Every morning, I follow a structured ritual that includes reflection, visualisation, thinking, learning, planning for the day’s meetings, and exercising to maintain a healthy body.
Health is a priority for me. I am very conscious of my fitness—I maintain my weight at 74 kg, regularly monitor it, and avoid unhealthy indulgences. Periodic review of one’s lifestyle and habits is essential for long-term well-being.
Success Is Twice Created
Everything is created twice—first in the mind, and then in the physical world. That’s the power of visualisation. Leverage this power, and combine it with modern tools. Be digitally savvy. Move beyond pen and paper. Use tools like OneNote or any digital equivalent to organise your thoughts, plans, and insights. Embrace automation. Adopt AI and digital technologies as partners in your journey. When it comes to software or tech investments, don’t compromise. Always go for the best and most powerful solutions that can accelerate your growth.
Powerful habits create high-performing cultures. In our factories, we conduct a 20-minute daily review. It’s short and focused, with an emphasis on addressing exceptions. This small yet disciplined practice ensures clarity, responsiveness, and accountability.
From a Bicycle to a Black Benz
Let me recall a powerful quote that has stayed with me:
“Whatever you vividly imagine, ardently desire, sincerely believe, and enthusiastically act upon must inevitably come to pass.”
In my early days, I travelled by bicycle. When I entered business, I vividly imagined myself riding in a black Benz with beige leather seats, driven by a chauffeur in white uniform and cap. I also dreamed of owning a home with a swimming pool—at a time when I was living in a rented flat.
Those dreams were not wishful thinking. They were clear, detailed, and emotionally charged visualisations. They motivated me to act. Over time, they became my reality. That’s the miracle of focused imagination backed by consistent action.
So don’t hesitate—write down your dreams and wishes in vivid detail. See them clearly. Believe in them sincerely. And work toward them enthusiastically. Wish you all the very best in your journey.
