How much: the entrepreneur should be able to convince his customers with the quantity of incremental returns on his investments that is possible by buying the entrepreneurs product or service. In case of customer's products, it is the incremental benefits or satisfaction which the consumer derives that matters. How quickly the entrepreneurs should be able to tell the customer the speed with which he would be able to supply the product or providable service. In competitive environment speed is an important factor. This means that if the entrepreneur wants to help his customer grow, he should do it fast.

How definite: the customer is given a definite idea about the entrepreneur's capabilities to help him grow. How will buy and continue to buy only if the promise stands the test of time.

One important observation we have to make on the above discussion is that we have not been talking about profits, but customer satisfaction. Although an entrepreneur has to make higher levels of profit it should not be the bottom line to work towards. He has to think beyond, towards the customer without whom he cannot achieve growth and sustain it. This means providing growth values on a consistent basis. Also entrepreneurs should approach their customers and prove their growth values to build up business, to make a better impact. In other words, entrepreneurs should think of long term growth of the organization and factors influencing it.

Maintaining Leadership

In a competitive environment, maintaining leadership is not easy. New substitutes and products made using new technologies would keep entering the market eroding competitiveness of existing firms. Under such circumstances, constant product improvement becomes essential to maintain product differentiation. Even in fields where competition is limited, it is worth attempting technological improvements either for cost reduction or product improvement. This means that the experience curve of such firms keep shifting continuously. Thus to face the competition effectively there should be strong sense of product differentiation through technological development.

Yes bank is gradually spreading it's wings all over India. It initially approached an advertising agency to hit upon a suitable, catchy name. The first choice of the name 'Yes' is attributed to the attitude the bank has with respect to customer relations and the service culture. After all, in any business, the customer is always King and his needs should be catered to at all costs. Even if a customer has to be turned down, it should be done by employing a strategy of gentle persuasion and not indifference or bluntness. It's virtually child's play for a competent individual to set up a bank nowadays, thanks to the superior technology at our disposal which thankfully comes at a minimal rate as compared to just a decade ago. The bank's now can exist at just one location and be centralized all over the country, thereby facilitating a greater range of banking transactions. Yes Bank, by virtue of it's superior business plan, has already been accorded the status of a Sigma Six Bank alongwith ISO certification.

Generally, the main drawback of most banks is the fact that they do not invest in harnessing knowledge as much as they should be doing. Gaining knowledge is necessary as a long-term plan to gain an advantage over competitors in such a manner that the customer benefits the most. Right now, loans are on an upswing and deposits are steadily growing.

According to Mr. Rana of Yes Bank, small towns have great potential and some go to the extent of showing huge GDP growth. Yet, the customers over here are bereft of proper service. While it cannot be denied that corporate banking is vital for a bank's survival, even upcoming banks should also back small scale entrepreneurs as this is a good bet for years to come. These include companies valued at 10 crores and above. Yes Bank has a department set up with inputs from a former London employee of Citibank. They intend investing in biotech, hydel projects and energy projects. Yes bank also wants to set up joint ventures with SIDBI. The bank is counting on biotech venture funds from abroad as well as agreements with universities(in the quest for more knowledge). It intends to use the intellectual property of those who wish to commercialize their knowledge. This branch will be done up with human texture - attractive flooring and effects on the walls. Most other banks do not have a Chief Marketing officer. This person, at Yes Bank, functions as an ambassador and sees to it that everybody who walks in is given due respect and attention. It was a clever ploy by the bank to distribute 10000 money plants as part of it's ad campaign. The service it dishes out appears to be all-round, replete with investment offices, insurance offices and mutual fund salesmen. There is also a private banking area.

In the banks first two operating quarters(2004-2005), it displayed a balance sheet of over 1300 crores thereby making it a very successful venture. They now hope to reach 15000 crores within the next couple of years or so. It started off with just 250 employees and within a year the strength has more than doubled. The management does not rule out gaining more capital by initiating a public issue.

Mr. Rana exhorts people to join his bank on the basis of it's principles of empowerment and freedom of it's entrepreneurs. There is a 5% executive ownership clause which has been done for the very first time in the history of the banking sector. Employee ownership too is vital in the pursuit of long-term sustainability. People should be made to feel important and that their presence too goes a long way in carving the bank's destiny.

If you thought that private banks like Yes Bank compensated their employees below par, think again! The current remuneration is beyond that offered by other banks in the industry. Their philosophy is that you need to be a big spender to gain unmatched quality. Ownership also leads to quality. The driving force which motivates all on board is entrepreneurship. Many former employees of other banks are crossing over to Yes bank. They not only seek greater investment in their future but wish to set up a greenfield bank which will be a sort of model for professional entrepreneurship banking.

The booming call center and outsourcing industry has led to loads of extra cash piling up in the pockets of 20 and 30-somethings, thus providing a fillip to the loan sector. Demands for loans has never been on such an upward surge. In the forties, a person tends to be safe with investment and following that phase he expects lower risk returns. Thus, each life-cycle of an individual demands a custom made requirement which is why all products cannot be bundled together. Knowing the ins and outs of the customer and adapting to his needs is what separates the good banks from the ones which simply seem to exist. Nowadays, customers are very shrewd and aware of banking techniques, rates of interests, liabilities on loans and the various options available to them. But still a lot has has to be done to make customers realize all the risks involved in different investment options. Yes Bank intends to have open house forums to spread this message.

Yes Bank also caters to nation growth, not just the growth of it's own profile. It ahs development and knowledge banking sections which indulge in research of microfinancing, agriculture businesses and creating frameworks to network with NGO's and other self-help groups. The banks ultimate goal is to function in the sustainability zone, which it describes as the area between hardcore profit and selfless philanthropy. However, the management of this bank is not rushing things and are in the process of chalking out the future programme. This change will not be rapid but will spread out over half a decade or so. One hopes other banks will follow suit and attempt to emulate this exceptional model.