Founder: Dr. Malpani, everyone keeps telling me to “innovate,” but nobody explains how. What does innovation even mean for a frugal Indian startup that can’t burn millions like venture-funded fashion brands?

Dr. Malpani: Excellent question. Innovation isn’t about building shiny tech or adding AI just to look fancy on LinkedIn. Real innovation is simply:
Solving a real customer problem in a way that’s radically simpler, cheaper, and better.
Let me give you my framework—the 7 Ps of Innovation. If you understand these, you’ll never need jargon to impress anyone again.

 

1. Purpose

Founder: Purpose sounds philosophical. Startups need survival, not philosophy.

Dr. Malpani: Purpose is survival.
If you don’t know why you’re building something, you’ll get distracted the moment a trend goes viral on Twitter.
Purpose answers:

• Whose problem am I solving?
• Why does this problem matter?
• Why am I the right person to solve it?

Founders without purpose become slaves to investors, chasing vanity metrics. Founders with purpose become leaders who attract believers—customers, teammates, and even investors.

2. Products

Founder: Everyone says product is king.

Dr. Malpani: Yes—but in India, customers expect value. If your product doesn’t deliver 10× value, good luck convincing them to open their wallets.
And remember:
A product doesn’t become innovative by adding features.
A product becomes innovative by subtracting friction.

The best innovations are boringly simple. Look at UPI, not blockchain.
Focus on building something your customers can use without an instruction manual. That’s true product innovation.

3. People

Founder: You mean hiring smart people?

Dr. Malpani: No. That’s HR.
Innovation requires people who:

• Think independently
• Challenge assumptions
• Speak uncomfortable truths
• Care about customers
• Don’t worship the founder

If everyone agrees with you, your startup is heading towards a cliff—politely.
Surround yourself with people smarter than you and secure enough to disagree loudly. Innovation thrives when the founder’s ego doesn’t suffocate the team.

4. Process

Founder: Startups hate process. Isn’t process for government offices?

Dr. Malpani: Bad processes are like government offices. Good processes are like autopilot—they reduce chaos and help you scale.
Innovation needs disciplined experimentation. That means:

• Hypothesise
• Test
• Measure
• Learn
• Iterate

Process is not bureaucracy.
Process is what turns creativity into consistent value.

If your startup’s success depends entirely on you staying awake 20 hours a day, then congratulations—you’ve created a prison, not a company.

5. Pitfalls

Founder: This one sounds scary already.

Dr. Malpani: Good. Most founders are too optimistic for their own good. Here are the biggest innovation pitfalls:

• Falling in love with the idea instead of the customer
• Confusing “busy” with “productive”
• Building tech before validating demand
• Assuming investors will save you
• Mistaking features for value

When you know the potholes, you can avoid punctures. Innovation is not just about what you build—it's also about what you avoid doing.

6. Preparation

Founder: Isn’t innovation spontaneous?

Dr. Malpani: Only in Bollywood movies.
Real-world innovation requires preparation:

• Studying customers
• Understanding the market
• Knowing the competition
• Building prototypes
• Running tests

Preparation makes you fast because you’re not guessing blindly. The founders who appear “lucky” are simply better prepared.
Luck favours the founder who shows up with homework done.

7. Practical Concerns

Founder: Let me guess—this is where “reality slaps idealism.”

Dr. Malpani: Exactly. Every innovation must answer:

• Can we build this sustainably?
• Will customers happily pay for it?
• Can we support it without burning crores?
• Can this scale without drama?

Innovation that is not practical is just a science-fair project.
Practicality forces you to build frugally, iterate cheaply, and scale only when the unit economics smile at you—not when your pitch deck pretends they will.

If an innovation only works when you have ₹50 crores in the bank, it’s not innovation—it’s dependence.

Bringing the 7 Ps Together

Founder: So innovation isn’t about being flashy. It’s about being thoughtful, disciplined, and customer-obsessed?

Dr. Malpani: Exactly. Let me summarise the 7 Ps:

• Purpose: Know why you exist.
• Products: Build simple, valuable solutions.
• People: Hire thinkers, not cheerleaders.
• Process: With discipline comes speed.
• Pitfalls: Avoid stupidity—it’s underrated.
• Preparation: Do the homework others skip.
• Practical Concerns: Reality is the final judge.

Innovation is not a one-time event—it’s a habit. A mindset. A culture that keeps you grounded in customer problems while constantly looking for cheaper, smarter, frugal ways to solve them.

Founder: So the real innovation is… customer obsession with a cost-conscious brain?

Dr. Malpani: Now you’re talking like a founder who might actually survive the Indian market.

 

Want to learn more about bootstrapping and creating sustainable businesses? Explore more insights and resources for entrepreneurs at www.malpaniventures.com. Let’s build businesses that put customers first!