Nikhil Kamath’s First Rule of Business Every Founder Must Learn

— Nikhil Kamath, Co-Founder of Zerodha

In the world of entrepreneurship, great ideas are abundant but what separates successful ventures from the rest isn’t passion alone, it’s product–market fit. This truth was encapsulated in a simple yet powerful statement attributed to Zerodha co-founder Nikhil Kamath: “First rule of business: Sell what people need, not what you like.”

Understanding the Philosophy

At its core, Kamath’s observation challenges founders to look beyond personal preferences and biases. Many entrepreneurs fall in love with their product or vision — whether it solves an actual problem or not. But customers, the ultimate arbiters of value reward solutions that address genuine needs. As one interpretation of Kamath’s quote puts it: the market doesn’t care what you like; it pays for what it needs.

This isn’t merely philosophical. In practice, aligning offerings with customer needs drives real adoption, revenue growth, and sustainable business models.

How Zerodha Lived This Rule

Zerodha’s journey itself is a case study in this principle. When Kamath and his brother Nithin Kamath launched the company in 2010, India’s brokerage landscape was dominated by high commissions and complex trading processes. Ordinary retail investors struggled with accessibility and affordability.

Instead of building a platform based on what they personally enjoyed or were used to in the finance world, the Kamaths focused on what the market actually needed:

• Affordable brokerage — flat-fee structures replaced traditional percentage-based commissions.
• Simple, intuitive platforms — user-friendly interfaces like Kite made trading accessible to novices and experienced traders alike.
• Empowerment through education — Zerodha’s Varsity platform demystified investing for millions.

The result? Zerodha grew into India’s largest retail brokerage, serving over 12 million clients and handling significant market volume all by solving real, unmet customer needs rather than chasing trends or personal preferences.

Lessons for Modern Founders

Kamath’s insight resonates across industries. Here are practical takeaways for aspiring entrepreneurs:

• Validate before you build: Use customer research, surveys, and early prototypes to confirm demand.
• Solve pain points, not preferences: A product loved by a niche few won’t scale unless it fills widespread needs.
• Stay adaptable: Markets evolve and so should solutions. Successful businesses iterate based on customer input and behavior, not ego.

The Bigger Picture

This business rule is not just about product design, it’s about listening to the customer and embracing humility in creation. Whether in fintech, technology, consumer goods, or services, the firms that thrive long-term are those that place user needs at the center of strategy.

As Kamath’s path illustrates, when you deliver what the market truly wants, success becomes a by-product of genuine value creation — not luck.