Stock brokerage platform Zerodha’s chief executive officer Nithin Kamath has learned many lessons during his stint at the post. But one of the prominent learnings, as per him, is based on the proverb “before you cut wood, sharpen your axe.” Kamath, sharing an advice for aspiring entrepreneurs, said that prior to building a business just because one can, he or she will need to identify a skill that they are good at. Another thing they can do is to find something that interests them, learn the skill properly and only after mastering it, should the entrepreneur move towards monetising it.
Nithin Kamath touched upon the highlights of his 12-year journey in the stalk market before starting Zerodha. Speaking at a chat show on YouTube, the Zerodha CEO explained how his prior experience at the stock market helped him build his business. “I keep saying this that before you chop wood, sharpen your axe because if you go with a blunt axe, it’s going to take you a long time to chop the wood,” he said.
Adding context to the idiom, the 42-year-old said, “If I look back at Zerodha’s journey, I think one of the reasons we are successful is that as a CEO the 12 years I spent before Zerodha in the markets.”
Kamath, who is a billionaire now (courtesy Zerodha) also shared another piece of advice for budding entrepreneurs, saying that the process is extremely tough. “Entrepreneurship is extremely tough, and assuming that whole valuation process is over, now, you have to build a business where people give you money to consume your product or service. So, what will you offer which will solve a problem and get people to pay you money?” he said.
Nithin Kamath further noted that out of a 100 new businesses that are established in India, only about 1 per cent of it are able to service its customer and become sustainable over time.
The billionaire entrepreneur is known for sharing advice for younger generations who want to own successful businesses, and is often seen sharing his two cents on his social media account. Kamath also shares advices on people who invest in stocks. Amid the recent volatility, he said aid trading is one of the toughest ways to earn money and the current situation makes it tougher.
“For most traders living in the social media bubble, it must seem like everyone except you is killing it trading the markets. FYI, it mostly ain’t real. Trading is one of the toughest ways to make money & the kind of volatility of the last few months makes it even tougher,” he said on Twitter recently.
“Bear market rallies are usually quite ferocious. While shorts make money faster compared to longs because markets tend to fall faster than they go up. But bounce backs like these after a fall makes it really hard to book profits on time or continue holding shorts,” Nithin Kamath had said.
Zerodha is India’s largest stock brokerage platform at present.
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