Is Business Transition important?

Hey guys,

Recently, i had to give up my post as the President of E-Cell at IIPM Kolkata, so, with the help of my professors, we figured out an Transition Plan which would help the E-Cell to be run by my successors. While doing the process, I thought how important is the same thing in business houses and specially Family businesses where matters such this are often driven to courts.

Business transition is a process of transferring business to successors. If it is done properly, it can be a really profitable experience, handled improperly an owner can encounter many pitfalls, regrets and financial reverses. It may become a nightmare. There are no second chances in transitioning a business.

A formal business transition plan puts the goals, priorities and strategies in place for a successful transition. Without a clearly defined plan, business owners are leaving their personal and financial future to chance. Then questions arise like "I know my business the best, how can i transfer it" or "Will i do it myself or are their professionals for it"

Well, This is a complex and personally challenging process. It's very difficult to do it alone and get it right. If you have legal, tax or risk management issues, you must use professionals familiar with these areas to take care of them. Even if you have an accountant, broker or financial advisor, they may not be uniquely qualified to assist you with the transition. You need experts focused on business transitioning. There are firms, such as The Monitor Group and its Transition Team, that can work with you to identify the best choices for each expert. To find experts who deal extensively with business transitions, seek recommendations from your accountant, lawyer or broker, or try a local trade association in your industry.

Experts can become involved at any point of your transition. These experts can review the work you have completed, provide recommendations and take the necessary actions to get you on the right track. Even if you have completed your transition, a certified financial planner can help with wealth management.

So, how to begin with it?

The four phases of proper business transition planning are:

1. Pre-Sale Phase
2. Positioning for Sale
3. Transaction Phase
4. Wealth Management

Following the above Four Phases of a Successful Business Transition, use the following process to guide you through your transition.

• Data gathering (documents you need to begin)
• Initial Expert Team Consultation
• Selection of your team
• Creation and Execution of the Transition Plan. (typically a 6-month to 5-year timeframe)
• Successful completion of the transaction
• Wealth management system put in place for a secure financial future.

Cheers,

Akash Poddar,

akashpoddar@live.com

Why start ups can't afford professionals

Dear Readers,
The previous blog on Saree shop was really appreciated, thank you all for the support. Well, this post is about why start ups can't afford professional help for marketing and HR activities. 
During my MBA classes, students used to wonder how exciting will it be to perform all these activities for a firm, i on the other hand used to get worried because i knew i had to do it all myself because i wouldn't have the luxury to afford someone to do performance appraisal or porter's 5 forces for my firm. The one and only logic behind this is i couldn't afford MBAs to work for me, and there ain't any B School who produce MBA for start ups. 


I knew 1 area where i had to succeed was Sales, bcoz every entrepreneur has to be a good salesman  (among the many other required skills), so you should take a hard look at these points:

• There is no genie: Aladin had the liberty to fulfill 3 wishes, but unfortunately, start ups don't, Don’t hope that a miracle will happen and your products and services will sell themselves. Be passionate about what you are selling, and decide to be of service, by providing your customers with something of value in exchange for deserved payment. Set aside fear and doubt, and stand tall with your message.
• Pitch your abilities. An irresistible pitch is a clear and concise explanation of what you do best, benefits to your customers, an honest statement of why you do what you do, a question that pulls the listener in, and words and language that engage the hearts and mind of your ideal customer.
• Market your message. Generate leads using social media, but don’t rely on it alone to make sales. Use the media to initiate contact, highlight your human element, and communicate your specialty or expertise in a way that anticipates what your customers might be thinking about. Facilitate a transition to a private environment for closing a sale.
• Engage graciously. Always treat customers with respect, honesty, and warmth to make the selling process more enjoyable, fun and delightful. The goal is to deepen the relationship, and discover if their needs match your offer. Listen closely for what they are saying and expressing. Don’t forget to follow-up. Skip the cold calling – it’s just too cold.
• USP to sell. Learn to sell in a way that matches your personality and your strengths. Check the definitions in this book or other sources to see if you are the humanitarian, visionary, maverick, romantic, nurturer, mentor, or one of a dozen others. Tune your approach and you will find yourself enjoying the selling process.
• Ask to win. As you go through the sales cycle with your customer, there comes a point when it’s natural for the transaction to conclude. Asking the customer for their decision demonstrates leadership on your part, shows you have confidence in your offering, and prompts them to make a final decision. You can’t win if you don’t ask.

A start up has to sell, but its not only about selling, we have to create solutions and sell it at a Win Win situation where the customer pays for the solution and we make money out of it. There may not be MBAs to do our daily functions, you gotta to do everything to succeed right from doing a Training Need Analysis to Create a TOMA for a long term business.

Cheers,

Akash Poddar

akashpoddar@live.com

CRM in a Saree Shop

Dear Readers,

Hope you all doing fine, and thank you again for being so regular at my blogs, watching the viewer's number increase everyday is such a motivation. This blog deals with a recent experience i had at a saree store. A saree is an Indian Traditional wear wore by women all over India. This is holiday season here and ladies buy a lot of sarees for the festival of Diwali. So, i accompanied my mom to one of the most popular saree store in Kolkata, India, and what i saw there was amazing and I couldn't stop myself from sharing it with you all.

CRM as we know is Customer Relationship Management, this concept was introduced by Tesco and they made big money from it, but these Indian Saree shop keepers who have no MBA or diploma, they have mastered the art of CRM.
As we entered the store, the owner of the store, a fat elderly aged man came running to us and asked the salesman to let him {the owner} serve us, this was because we were old customers at his store and he wanted to serve us himself:  This is the first step, the owner is doing an awesome CRM by interacting himself with the loyal customers and not leaving us to his salesman.
Then the real fun begun, the way they flatter the ladies.. oomph factor is created, they pitch their proposal and compliment the ladies on every word they say. some of which were;
"this saree color goes so well with your amazing skin tone"
"this saree will automatically bring the photographers to you in a function"
"don't worry if you are short, the design here will make your legs tall"
"please have evening tea or coffee with us here (and he orders tea and snacks right away)"
"you have to promise that you will do your son's wedding shopping from here"
"this is Sabyasachi's latest design not yet discovered "
"if you get this piece anywhere else, i will gift it to you"
"just taken it out from the box, exclusive piece"
"this saree is meant to be wore by you only"
"let me wear it and show it to you!" Yes! they actually wear sarees and show how the drape would look.

(picture taken by me)

When my mom asked about the rates of the saree, guess what they say "Please don't worry about the rates madam, you just take it home and enjoy your purchase, did i ever ask you for the money" Now he knows very well that she will visit him again or he would send the bill to my father's office, this is because my mom would bargain the price but my father wouldn't. Doing this, this person makes an easy 2 to 3 lacs rupees every month, and during Diwali and wedding seasons, sky isn't the limit for them. And they don't really market their products, its all "word of mouth".

With India gradually becoming western these days, slowly and steadily the saree sales will be dropping as young ladies prefer another ethnic wear called "salwar suites" instead of sarees which would only be used in family events. These store owners don't leave any chance of managing their Customers and pamper them as they make sure, all the ladies who visit their store once, comes back again.

Cheers,
Akash Poddar
akashpoddar@live.com

What makes an Entrepreneur?

Hey guys,
It's been an amazing festive season here in Kolkata, India. Durga Puja was celebrated all over the city and was a huge hit. Moreover, we have entered in the final phase of our course at IIPM, Trimester IV is what they call and the placements season begins right now. Most of the students are sitting for placements from various B Schools all over, but a handful of rare species who are "starting up", this one is for them.

People ask me, Akash makes an entrepreneur? Do they havta be MBAs? How new is this concept? Let me try and give my opinions on this:

What makes an Entrepreneur?

1. Who you are?
2. What do you know?
3. Whom do you know?

These 3 questions decide the fate on an entrepreneur. We don't look like aliens, we have the same mind, but all we care for is CASH! Remember, 

         "Profits are for accountants, Entrepreneurs love cash " 

It is the jest to create something out of nothing and make good money from it.

Well we know a lot of stuff, eyes and ears should always be open, the urge to discover and find out whats on has to be there all the time, because opportunities is always there, but we miss out on them frequently.

Whom do you know is about NETWORKING, meeting the right people, for the right reasons. They are found in popular clubs, social gatherings, cousin's weddings, uncle's anniversary party, college professors, everywhere. It is really important to know them and make them know about you.

MBAs and entrepreneurs don't think the same but their results are same, so all my friends who have done MBA and are about to "startup", please don't forget to unlearn some classroom lessons before you hit the boardrooms.

Cheers,

Akash Poddar

Overcome failures Lincoln Style

Hey guys,

       We all face hurdles in our lives, every succesful person has faced problems. In certain multinational companies, they dont promote you to a certain position unless you have had certain failures in life, one of my all time favourite example is Abraham Lincoln who became the 16th President of USA after the following hurdles/failures.

• He had to work to support his family after they were forced out of their home.--1816
• His mother died--------------------------------------1818
• Failed in business. --------------------------1831
• Was defeated for legislature. -----------------------1832
• Lost his job and couldn't get into law school. -------1832
• Declared bankruptcy, and spent the next 17 years of his life paying off the money 
• he borrowed from friends to start his business. ---------1833
• Was defeated for legislature again. ------------------1834
• Was engaged to be married, but his sweetheart died and his heart was broken. ----1835
• Had a nervous breakdown and spent the next six months in bed. ------------1836
• Was defeated in becoming the speaker of the state legislature. ------------1838
• Was defeated in becoming elector. ------------------1840
• Was defeated for Congress -------------1843
• Was defeated for Congress. ----------------1846
• Was defeated for Congress again. -------1848
• Was rejected for the job of Land Officer in his home state.------ 1849
• Was defeated for Senate. --------1854
• Was defeated for Vice-President -- got less than 100 votes.--------- 1856
• Was defeated for Senate for the third time.------- 1858
• Was elected President of the United States.-------------- 1860

Are you a little bit discouraged right now because you have tried and tried and still haven't achieved your dreams?

If so, please don't be. Worthwhile goals and aspirations will always take time to accomplish.

It took of becoming the President of the United StatesAbraham Lincoln . 

Although he faced countless insurmountable obstacles, he did not give up. He didn't quit.

While it may seem impossible for you to overcome your current challenges or problems,promise yourself that you will NOT give up.

We trust that President's Lincoln's road map to the White House has inspired you to hold onto your dreams when the going gets tough, and to keep working on them until you've turned them into reality. 

Here are two fabulous quotations by this great man to motivate you to persist until you've achieved your goals: 

"The sense of obligation to continue 

is present in all of us. A duty to strive 

is the duty of us all. I felt a call to that duty."

"The path was worn and slippery.

My foot slipped from under me,

knocking the other out of the way, 

but I recovered and said to myself, 

It's a slip and not a fall."

Let's all rise and shine,

Cheers,

Akash Poddar

New Venture Special

Hey guys,
How u all doing ? Hope my blogs are coming to great use, thank you for reading it, i see the page views increasing everday, really motivating, Thank you,


Well, as most of you know that i recently have registered a company and started a new business venture, so all my frnds down dre who wish to start a new company, i have some key points that i would like to share with you all, now there is a possibility that you all maybe aware oif these but, yeah we know things but when it comes to implementation, we all need to get back to some revision work.


So if you are planning to start a new venture, read dis blog, will be useful for you.

Most people understand that a high percentage of startups never make it. So what if you could give yourself a leg up on the competition? Below is a list of tips that may help your startup get to the next level. These ideas are not revolutionary, and many successful startups already have these qualities. Why not ensure yours:P 

1. Hire Great Workers:  There is always a possibility that you plan to do everything on your own when you are starting a company, but do try and get hold of some people who know the work, they dont really havta be professionals but they can help you with everything from lifting boxes to writing codes.
2. Launch your product site quickly: Guys, whatever you r doing, u gotta hv a website. The time has come for the world to know whats being done here. People want to do business with India, things are cheap and better here, our minds are as good as it is at the West. So, reach the world, get a website, call justdial.com and they will give you more than 10 numbers who r willing to sell you domain names.
3. Identify your customers: If you’re developing a product, make sure you truly understand the needs of your end users. You might assume that potential customers are seeking your particular solution, only to discover after launch that your product might be too expensive or doesn’t precisely repair the problem. Make sure that you take some time to understand exactly what your users need, and what they are willing to pay for.
4. Don't target a small niche:  Solving a problem for a targeted niche is not a bad idea — the smaller the niche, the less competition you may face. The downside is that you might not gain enough users to render a profit. Make sure to perform market research to understand the scale of consumers interested in your product. Also, plan to expand the niche once you service its need. When you evolve your original idea into adjacent markets, you will increase the probability of exponential growth.
5. Don't waste money: As obvious as this one sounds, startups waste money every day. They often overspend on things that can wait until later, or on a tool that doesn’t get them the expected results. By outsourcing a variety of activities, however, startups are now becoming less expensive to launch.
    One area in which startups waste money is hiring too many employees too fast. You need to make sure you can fill up the entire day of each (indispensable) employee. Early on, only hire people who add required functionality that cannot be fulfilled by current staff. You should also determine whether a person can be hired as a short-term, temporary resource (i.e. outsourcing), or whether hiring a full-time employee is the right, long-term solution. Employee salaries contribute to high overhead expenses, and should be carefully controlled at the beginning of a successful startup.
   
   
6. All or nothing: We’ve all heard the saying “don’t quit your day job, kid,” but in the world of startups, any time spent focused on outside tasks is an opportunity for competitors to beat you to market. You need to focus all your time on your startup if you want it to succeed. And this may mean quitting your day job. If you’re building a product, targeting customers, and trying to attract investors all in your spare time, you don’t have your priorities lined up. If you dedicate all your time to your startup, you will have more drive to successfully get it to market, because now your livelihood depends on it.
   
   
   This list doesn’t guarantee that you will succeed, but it will give you some benchmarks to compare yourself against. Can you think of any additional characteristics that successful startups have going for them? If so, leave them in the comments.
   
   
   Cheers,
   Lets all Rise and Shine
   
   
   Akash Poddar

Future of West Bengal now.

An alliance led by the Communist Party of India (Marxist), which has ruled the state continuously for 34 years, is widely blamed for the state’s economic woes, and has received a drubbing at the hands of Ms. Mamata Banerjee’s  Trinamool Congress in alliance with the Indian National Congress. This would represent a seismic shift in Indian politics: most members of the youthful electorate have known no other government. It may not be as momentous as the fall of the Berlin Wall but for India it would run close.

Mamata Banerjee, CM, West Bengal

Her railway budget presented earlier this year was widely seen as populist and a lead-in to the election campaign rather than a serious attempt to stem the tide of red ink and rationalize operations. Ms. Banerjee has also been criticized for an excessive focus on her home state in planned future investments. Indeed, half the railways’ losses were accrued in West Bengal.

Amit Mitra, secretary general of the Federation of Indian Chambers of Commerce and Industry, who is now the Finance Minister for the state, blamed the railways’ losses on the global financial crisis and the subsequent drop in freight carriage, the largest revenue source.  Evidently, Ms. Banerjee found it tough to strike this balance as Railways Minister: how would she do this as Chief Minister?

Amit Mitra, Finance Minister, West Bengal

Next, we can glean some clues from the TMC’s election manifesto. The first part is a thorough and fairly devastating critique of West Bengal’s poor economic performance under CPM rule. Starting with a decline in manufacturing, then going on to the fall in manufacturing employment and labor productivity, the document moves on to the decline in agriculture, the state’s fiscal crisis, the poor state of infrastructure, health and education. Indeed so bleak a picture was painted that the CPM tried to offer a rebuttal, but not very convincingly. For instance, their claim that the state ranks 9^th out of 17 major states in per capita income sounds like an own goal!

The second part of the TMC manifesto presents the party’s positive vision of how it would turn the economy around if elected. This boils down to reviving manufacturing as the driver of the economy, focusing on labor-intensive sectors which would bring the added benefit of large job creation; investing in infrastructure, health and education; and restoring the state’s finances to good order. The planned infrastructure investments don’t have a price tag but we can expect it to be large. It’s not clear how massive new investments can be combined with balancing the books without a major increase in taxes or a cut in other expenditures such as social spending or salaries.

This leaves open the question of whether improved tax collection alone can fill the gap or whether spending cuts would be necessary. Either way, the state’s dire fiscal situation will leave Ms. Banerjee, little room to makeover. Also, let’s not forget the ever-sensitive issue of land acquisition, which will be necessary to re-industrialize the state. Add to that dealing with entrenched interests and a state government apparatus intertwined with the CPM for more than a generation makes her plans for revitalizing the state a tall order indeed.

If Mamata Banerjee takes on serious economic reform, how much short-term pain will Bengalis be willing to put up with for uncertain gains in the future? Or will she play it safe and take the populist route instead? Lets Wait and Watch

Cheers,

Akash Poddar

Donation < Loan = Investment

Dear readers,
This isn't one of those blogs where you hear about donation and charity and how we make world a beautiful place and all that sort of ****. During my course of Summer internship, i cane across a project on micro finance and how it is the next big thing. This blog will change your mindset on helping the poor by donations, & i thought Good Friday is a great day for it.


When i was small, my grandmother used to sit with me and talk about how we should help the poor and make them happy, i was so fascinated about this idea that i wanted to make a NGO and spread smiles, however, in the process of me growing, i came across ugly pictures of poor people of wars, diseases, poverty, so i became nervous on how should i deal with my passion of NGO and this ugly picture. Not only me but i assume most of us do get this feeling of guilt of our own relative wealth when compared with the BPL. So i had stopped thinking that things would ever change.

However, i recently came across this gentleman Dr. Muhammad yunus from bangladesh and his idea of Grameen Bank . . Dr Yunus is one of those person who did make a difference without donating even i single penny.. He has won a Nobel Peace prize on Micro finance.


During this research report, i came across so many people who had changed their lives receiving micro finance. These were poor people who were "strong", "determined" & wanted to make a difference not in the world but in their own lives.. It was amazing the way we heard across stories of changes and how these poor people created opportunities from sacrifices. Their could now afford education for their children, proper health care and easy 3 times a day meal. Without taking donations. And they were so proud of what they had achieved in their lives.


LOAN IS BETTER THAN DONATION. WHY? It may sound the same thing but the difference lies in communication. Donation would be "here you take, bye" whereas, loan is "here you take, make and give back", giving back may sometimes be a trouble. But we have to understand and trust the ideas of these people as they are no less than entrepreneurs. even a small loan of Rs. 10,000 will help them to change their lives.

These women received LOANS and not DONATIONS. So they made a proper change in their own lives. We spend Rs. 10,000 on a new cell phone, the same amount will change their lives, and this is an INVESTMENT, you will get the interest as they don't want to create more troubles for themselves.

We don't have to go to a NGO to do all this, we can start it from our Drivers, Servants, Workers anyone. This will definitely change one families life, i have done it, we all will do it,. I don't need to persuade you all, you all know the real picture, But we are afraid to TRY. The power of believing in each other is tremendous, lets give it a shot.

Lets all rise & shine.

Cheers,

Akash Poddar

Get off classroom hangover !

 CLASSROOMS TO BOARDROOMS

Dear readers,
This blog of mine is based on the simple fact that we are all aware of but we still don't bother to think more about it, "It's a different ball game out there" . And with "out there" i mean the real world and "ball game" i mean situations. After students graduate from colleges in their respective fields, they still tend to have this hangover from classes, with hangover i am referring to the studies the ideas that we undertake.

Really? Yes! A few months down the line i was busy attending classes in my B-school and was excited about how well em i gonna use all this in my work place, but then after i got myself in one of the leading FMCGs in India, i came to understand the fact that all the learnings are good to vomit in the answer papers and not in board meeting.

guys, understand the fact that i really em not stating that class education is crap, but all the lessons we learn are used to discipline ur life, ur state of mind and get the eternal power of knowledge, something that stays useful thruout our lives, however, in a board meetings when you are willing to shower the guys with all the knowledge that you have collected over the years, its just doesn't work. Here, everything is situational, no theories, no alternatives, no reviews are used, u have to deal with case studies were you play one of the characters and if you under perform, they kick you out.

The moral of the blog however is, in your professional  lives, keep eyes open to real life references, real cases and not just theories from classes. The distance from classrooms to boardrooms isn't just about paychecks and formalities, its more of being practical, make your own theories and create solutions and not just find problems.

Let's all Rise & Shine

Cheers,
Akash Poddar 

What it takes to be an Entrepreneur?

ENTREPRENEURSHIP

If you are one of those who are sick of getting paychecks and now you feel that is the time to make and not take paychecks, this blog IS FOR YOU.

It is my not so humble opinion that working for yourself—owning your own business—is one of the greatest experiences a person can have. I equate it to the difference between living in your parents home and going out on your own and getting a place to live as a young adult. It is initially pretty frightening but the feeling of independence and growth is incredible and once you’ve done it successfully you cannot imagine going back to live with Mom and Dad.



I recognize that not everyone is cut out to start his or her own business or even work outside the structure of a corporate environment. The skills required to start and then successfully run a business are not always the same and require that you switch gears quite a bit.


I’ve collected a list of attributes that can help you determine if you are the kind of person that can start your own business. I’ve been networking with the owners of businesses for quiet some time now and found quite a few common themes that I hope you will find valuable.

We become a good candidate to start a business if...

• WE ARE WILLING TO TAKE RISKS
•  
• WE HAVE VISION FOR OUR BUSINESS &  ARE WILLING TO SHARE IT WITH OTHERS
•  
• WE CAN ACCEPT CRITICISM
•  
• WE CAN MODIFY YOUR LIFESTYLE
• 
  
• WE HAVE A GREAT RELATIONSHIP WITH YOUR LIFE PARTNER
• 
  
• WE ARE JACK OF ALL TRADES
• 
  
• WE WANT FINANCIAL INDEPENDENCE
• 
  
• WE ARE PATIENT & WON'T GIVE UP EASILY
• 
  
• WE LIKE TO WORK HARD

Making the decision to start a business is not one us should take lightly, however if we make a go of it I congratulate you. Regardless of the result of the business, the experience you will acquire will enrich us in ways few jobs can.
 
There maybe many points where you may disagree with me, but i will be more than willing to explain you the points, I would have explained all these points, but i know how much long blogs freak people out, so i decided to KISS (Keep It Short & Simple).
 
Do comment if any of you want an explanation, will be enlighten.:)
 
Lets all Rise & Shine.
 
Cheers,
Akash Poddar