In this episode, Manish Sabharwal from TeamLease discusses the origins of the staffing company and the key traits that contributed to its success. He shares his memories of India Life and how it eventually led to the creation of TeamLease. Additionally, he talks about the differences in decision-making between the two companies and the advantages of being a second-time founder.

Manish discusses the key areas that need attention for India's development. He emphasizes the need for civil service reform, as it plays a crucial role in regulatory reform and ease of doing business. The conversation also touches upon the significance of human capital for a country's growth. Manish cites India's achievements in software exports and the pharma industry as examples of successful utilization of human capital. However, he acknowledges the need for basic school education to ensure a strong foundation for the entire population.

Manish discusses the concept of balancing short-term and long-term goals, drawing on the distinction between Amanat and Jagir from his Kashmiri upbringing. He explains that Amanat refers to a trusteeship, where one is expected to pass on something in better condition to the next generation, while Jagir represents personal ownership and consumption. Drawing on this analogy, Manish highlights the importance of expanding time horizons beyond immediate gains and optimizing for long-term growth, rather than focusing solely on short-term profits by emphasizing the achievements of companies like HDFC, Infosys, and TCS, which have built lasting value through decades of consistent growth and compounding.

In this conversation with Karthik B. Reddy, Manish discusses why, for long-term growth, a company should adhere to certain principles. Firstly, it should differentiate between a "baby" company poised for growth and a "dwarf" company that remains small, based on a balance between short-term and long-term goals. Manish emphasizes the importance of the cap table and funding sources to secure perpetual capital for future aspirations. Additionally, he stresses the need for cognitive diversity within the team to incorporate different perspectives and skills. Lastly, Manish advises companies to avoid making detrimental decisions, such as diversification, excessive debt, or non-compliance and recommends having safeguards in place to prevent such mistakes.

Check out the entire episode for lessons on building a long-lasting business.