Making Your Business Saleable

February 10, 2013 1 Comment

wealthymatters

Even if you are not the sort of person to build a business to take it public or sell it to a strategic buyer,it makes sense to build a business you can sell. After all there might be a day when you can no longer work and your business might be one of your major assets;An asset you can no longer manage or your children might not take to business or perhaps a particular business despite all your efforts to groom them etc.So who knows when you might find yourself using BizBuySell or something else along the lines?

With the day-to-day demands of running businesses, most owners put off getting a valuation until a sale is imminent. But its a good idea to start treating the valuation of businesses as an integral part of running them. If you like to think you’re building something that you can sell someday and don’t focus on valuations, you don’t know if you really are. BizEquity and uValue, an iPhone app developed by Aswath Damodaran, a valuations expert at the Stern School of Business at New York University, might be places to begin. Read more of this post

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Alok Kejriwal On Marwari Business Traits

July 30, 2012 4 Comments

The Marwaris are so successful at business,so it makes sense to learn from them.In the article below Alok Kejriwal of contests2win.com writes about what he learnt from his family business.

The Seven Subjects I learnt at Marwari Business School (MBS)

On the last day of my ICSE exam (10^th standard finals), my Nani (Grand mother) offered me a free seat into the Marwari Business School. I was 16 and I had the opportunity to go and sit in my Nana’s (Grand father) office.

I took up the offer.

These are the seven subjects I learnt:

M = Monetization Mentality

Monetization above everything else!

For Marwari’s, money pretty much means everything. It’s the ‘currency’ of success – pun intended. People are sized and measured not by their waist sizes but by the width of their balance sheet. A Marwari’s religion is making money and they meditate on it.

What Monetization and its terms means is also unique for Marwari’s.

For instance, I learnt that Revenue was not what you ‘bill’ or ‘pass-thru’ or ‘recognize’. Revenue was always what you ‘net-net’ earned that came in your coffers.

Revenue is bottom line for a Marwari – not top line. Read more of this post

Filed under Entrepreneurship, Tool Kit Tagged with accounting, Alok Kejriwal, Attitude Adjustments, ‘re-think’ business processes, balance sheet, bank overdrafts, capital, capital investment, chartered accountant, contests2win.com, costing, creative accounting, ethics, finance, greed, inventory management, Marwari, Marwari Business, mélange yarn, mobile2win, Monetization, net-net, P&L statements, postaday, production planning, profit, Provident Fund, Rajiv Hiranandani, reinvent, Revenue, salary, Shaw Wallace, tax liability, textile Barons of Hong Kong, textile machines, Trial Balances, trust, Yahoo

Rakesh Jhunjhunwala-The Rare(ing) Bull

April 27, 2011 9 Comments

Rakesh Radheysham Jhunjhunwala is a famous Indian stock investor.He lives in Malabar Hills with his wife Rekha ,daughter Nishtha and twin sons Aryaman and Aryaveer and works from his office at Nariman Point in South Mumbai. He regularly appears on various business channels on television to share his ideas and opinions on the Indian markets. He is well-known in investing circles as ‘Rocky’ and among his close associates as ‘Bhaiyya’.He is considered to be India’s Warren Buffett. In 2010, Forbes rated him India’s 51st and the world’s 1062nd richest man with a net worth of $1.0 billion.He is the first dollar billionaire from India to have made his fortune primarily from the stock markets.

He considers Mr Radhakrishnan Damani as his guru (mentor) and best friend.He counts Kamal Babu, Ramesh Damani and Kamal Kabra as friends.He manages his own portfolio as a partner in his asset management firm, Rare Enterprises (Ra-Rakesh Jhunjhunwala, Re- Rekha Jhunjhunwala).“The sheer passion for markets and the ability to do what I enjoy is what inspires me,” says Jhunjhunwala. He has been asked to manage other people’s money, but prefers the freedom of not having to answer to anybody, and has thus turned all offers down.Rakesh does not try to beat the market as opposed to investment managers who have to answer to a lot of people, and hence look at indicators like how much alpha — or returns in excess of the general market — they are generating. “The only person that I have to answer to is my wife, and she just wants to know what the absolute returns are, not whether I am beating the market”. He expects the market to do very well as he believes that India is at the beginning of an unprecedented multi-decade bull run.Obviously he believes in putting his money where his mouth is as he owns only Indian equities.There are 7-8 stocks that make up 80% of his portfolio, and his holding period stretches from 3 years to 10. Read more of this post