From CAT To Cashflow: Thinking Wins
Success after the Common Admission Test (CAT) is often perceived as a culmination of hard work and preparation. However, the reality is that the journey does not end with the exam. In fact, it is only the beginning of a new set of challenges that require a different mindset and approach.
The Transition from Marks to Mindset
For many CAT aspirants, the exam represents the peak of their efforts, with months of preparation distilled into a single score. While it is tempting to view this score as a final verdict on one’s capabilities, the real pressure begins once the results are out. Business schools, particularly the Indian Institutes of Management (IIMs), focus less on how quickly candidates can solve problems and more on how they think under pressure, make decisions, and prioritize resources.
Asking “what an IIM gives you” is a more insightful question than “what an IIM gets you.” The flashy salary figures often touted do not capture the essence of what truly matters: developing the right mental framework. This framework involves recognizing constraints early, maintaining composure in challenging situations, and making decisions that benefit the overall system rather than just personal ego. When these habits are ingrained, even a bad month can be viewed as a solvable problem, whereas a good opportunity can quickly turn into a liability without the right mindset.
Structured Judgment: A Key to Success
Sarathbabu Elumalai, the founder of FoodKing and an alumnus of IIM Ahmedabad, emphasizes the importance of structured judgment across various stakeholders. This means considering the impact of every decision on all parties involved. He recounts a pivotal moment early in his entrepreneurial journey when he expanded his food business too quickly. Despite having multiple outlets that were generating revenue, he found himself financially unstable, with only ₹200 left to his name after eight months of operation.
The Lesson of Cutting Costs
Elumalai’s recovery began with unglamorous but necessary decisions. He closed his central kitchen and office and reduced the number of outlets to ensure the business could sustain itself financially. The painful lesson he learned was simple yet profound: “Your idea cannot outrun your overheads for long.” He advises that the first step when a business is losing money should always be to cut fixed costs before attempting to rebuild.
Learning Through Diverse Perspectives
His time at IIM Ahmedabad was instrumental in shaping his holistic approach to business. The case studies he engaged with taught him to analyze situations from multiple perspectives, including the customer’s, business’s, operational, financial, and market viewpoints. This multifaceted approach has become second nature to him and influences how he diagnoses businesses, including those he mentors.
Building Trust in Business
During a recent mentoring session with a home-cooked food platform, Elumalai identified a critical issue: despite having a large number of home cooks, the platform struggled with low daily orders. The root cause was a lack of trust among customers due to inconsistent quality. His recommendation was to narrow the supply to focus on consistently high-quality cooks, target specific areas with proven demand, and only increase prices once quality became reliable. “People will pay more when they trust what arrives,” he asserts, highlighting that sustainable growth stems from building trust within the system.
The Importance of Volume
Elumalai also shares a crucial insight from his early business experiences. He once pursued high-profile corporate clients, mistakenly believing that their prestige would provide stability. However, he soon realized that volume is essential for business sustainability. “Reputation and recognition do not replace a customer base that pays for people, operations, and cash flow,” he emphasizes.
Commitment and Responsibility
Elumalai’s journey through the CAT exam was equally revealing. After four attempts, he finally succeeded on his fourth try, attributing his success to a shift in mindset. “If you’re not 100% committed, don’t even open the book,” he advises. He recalls writing the exam while battling a viral fever, treating his illness as background noise rather than a valid excuse to give up.
In the business world, pressure is constant and unrelenting. Cash flow and payroll demands leave little room for complacency, and stability cannot be deferred. Elumalai draws a clear line regarding responsibility, particularly for young professionals balancing ambition with everyday obligations. “When people depend on you, that is the priority. When your child is hungry, that is your purpose. You cannot speak about higher goals if basic needs are not secure. Stability comes first; purpose follows,” he asserts.
Looking Beyond the Numbers
What follows the CAT exam is often less predictable than the structured routines that precede it. The significance of numbers fades quickly, replaced by conversations, impressions, and the perceptions others have of you. Whether anticipating your results or reflecting on your score, the path ahead demands a different mindset—one that cannot be faked or borrowed. What matters now is not just what you know, but how you navigate the challenges that lie ahead, even when the course is uncertain.
Note: Success after the CAT is not merely about achieving a high score; it is about developing a mindset that embraces challenges, prioritizes responsibilities, and fosters trust in business relationships.
