Best Owner

Are You the Best Owner of Your Business?

Mergers, acquisition, sell-off, buy out and takeover are common with large businesses and start-ups. Every now and then we read this news. However, there is no such large market for SME businesses. Selling a business is a good option in several circumstances. Holding on to it for emotional or non-strategic or non-financial reasons is not a good decision. A simple one-liner is when you can’t … Continue reading Are You the Best Owner of Your Business?

Business Growth

Do You Know You Are One Of The Hindrances To Your Business Growth?

“Only the paranoid survive.” Andy Grove, former CEO of Intel Every entrepreneur is out in the market to grow his / her business. Once you wear a hat of an entrepreneur, your vocabulary has some fixed words like capital, payment, customers, deal, business, growth, loan, market, marketing, and sales. Check what you speak every day and on every occasion.  You become a 24 X 7 entrepreneur. … Continue reading Do You Know You Are One Of The Hindrances To Your Business Growth?

Working Capital

All You Need to Know About the Working Capital and Business Success

Working capital mismanagement is one of the main causes why a small and medium business fails. This is also one of the main causes of industrial sickness.  Working Capital is considered lifeblood of any business. Understanding the key data affecting working capital, how impacts the business, how it can be better managed, what are the sources of working capital, cost of working capital all are very important aspects of the … Continue reading All You Need to Know About the Working Capital and Business Success

RBI ECB Guidelines

What You Need to Know about ECB for NPAs and Start-Ups?

Borrowing in foreign currency from an external source is a restricted activity governed by RBI.  For many years now I have met many entrepreneurs asking me to help cheaper money from a foreign source. Most of the entrepreneurs were not aware of ECB guidelines and therefore most were cheated by financial intermediaries. Huge advances were given by the entrepreneurs to these intermediaries in the hope … Continue reading What You Need to Know about ECB for NPAs and Start-Ups?

Excess cash Kills

How Can Excess Cash Kill Your Business?

Cash is King but it also kills. One of the companies hit the market with an IPO. Their Merchant banker advised them to raise more money than required. The issue was subscribed. Excess money they invested in unrelated business. That business could not succeed. The return on share capital could not match the market expectations. The share price reached below par. Since the share price was … Continue reading How Can Excess Cash Kill Your Business?

NPA

Is Your Business Suffering from Financial Cancer?

Mr. X, who was once a very dynamic entrepreneur engaged in the pharmaceutical business, is now under depression for many years. Family expenses and cost of two daughters’ education was borne by other close family members. His wife was doing some domestic work until both daughters completed their studies. Marriage of both the daughters was solemnized with the help of close family members. This is … Continue reading Is Your Business Suffering from Financial Cancer?

Opportunity Cost Decision Making

You Need to Know This Important Concept For Better Decision Making

When you opt for Cake against Ice-cream, you have sacrificed the experience of eating ice cream. When you opt for Watching TV over outing, you have sacrificed an enjoyable outing experience. Every day and in several matters, we choose one over the other choice. The choice we sacrifice in favour of the choice we make is the opportunity lost. This is why it is called Opportunity cost. This is … Continue reading You Need to Know This Important Concept For Better Decision Making