Category Archives: business

Like a Boss

Money is a good servant, but a terrible master!

Hello Riters, welcome back, how is your holiday going? Are you learning that new skill or upgrading yourself to be better prepared for the days ahead or just sipping that Mojito alongside that private beach? Whatever you are doing, below are the principles that if used correctly will teach you how to close the deals, negotiate better terms, grow business, be successful as a salesman & as a leader, giving you exponential return, and all it take is 5 minutes to read.

The Principles are from ‘Dale Carnegie’ book titled ‘How to Win Friends and Influence People’. Some of these principles have helped me in my personal journey and I want to share the same with you. I have distilled most of them, divided into three categories (self-made), and tried to explain the principles in my own words (not necessarily the same order), nevertheless the book contains in-depth explanation of all the principles, and I would highly recommend you to have a copy of the book to refer to (link to book).

Win People-

  • Don’t criticise, condemn or complain about people. It is seriously just a waste of time. 
  • Give Honest and Sincere Appreciation back to people wherever possible.
  • The world is full of people who want to grab your attention, Be the one who tries unselfishly to serve others. Arouse in other person an eager want by showcasing how you can help them be it via service, a product or just a talk.
  • Become genuinely interested in other person, encourage them to talk and be an active listener. Make other person feel important and do it genuinely.
  • While negotiating or making a sales pitch talk in terms of other person’s interest.
  • Always wear a smile in your face, and try remember the other person name (make sure not to misspell the name).
  • Avoid unnecessary Arguments. (Especially if it is with your Partner 😉)
  • Show respect for other person’s opinion. Never directly say ‘you’re wrong’ (especially in a professional setting).
  • Try genuinely to see something from other person’s view. Be Sympathetic with their idea.
  • When you are right try to win people gently and tactfully to your thinking, but when you are wrong admit it quickly with all enthusiasm.

Be the Businessman-

  • Get the other person to say ‘Yes, Yes’. A person is more likely to agree to your suggestion if you get them saying yes & yes. If you want to get the deal close, don’t start with a ‘No’. It is difficult to convert a No to Yes, so get them to your liking and then suggest something.
  • Let the person feel that the idea is his or hers. Often times we see the salesman next door pushing a product to us, enlisting all the features of it, but we ignore. We won’t buy it unless we feel we are in control of the decision! The same applies on the other side, if you are selling something make the other person feel that the idea is his or hers to buy, and you are just helping them make the choice.
  • Dramatize your ideas. Yes!, As Seth Godin Says “All Marketers Tell Stories”. Make a Story around your product or service try to sell the story rather than the product, a hope, a value, a vision.  The truth has to be made Vivid and Interesting; you have to put the emotions at work.

Like a Leader –

  • To Motivate someone to do task, if no appreciation works, try throw down a challenge. Challenge your Employees to sell that next big thing, or your kids to wake up early (this one is difficult :-p). Nevertheless, Challenge motivates people to achieve bigger things.
  • Always begin with a praise and honest appreciation, even if you are to tell someone their shortcomings. Most People will listen to the full feedback once you make genuine effort to see the good side of their work or effort.
  • Call attention to people mistakes ‘indirectly’. Never directly say you are Wrong, instead tell them scenario where things would have been better handled.
  • If you and your team had made a mistake, first point out your mistake and then criticize others.
  • Don’t Order, Nobody likes to take Orders. Instead Suggest your Employees by Asking Questions. Asking questions can also fuel their Creativity and you may not know about better solutions that can come up along the way. For example – if a Customer is not satisfied with your service, maybe call your team and ask ‘How do you think we can provide better service to xyz?, team’
  • Praise the slightest improvement and be lavish in your praise.
  • Make other person happy about doing the thing you suggest. Maybe Incentivise your Employee, give them a portion of the benefit.

Remember no one grows alone. Take care of People around you, and they will in turn reciprocate. Be it your Partner, or Employee, they deserved to be praised and feel valued! The principles listed above will not only help you in your Professional, but also in your Personal Journey.

Let us know in comments below, what principles you think will help you in your personal Journey!

Thank you for Reading! Follow us for more. #MakethatChange

Where is my Money?

A huge guy with a elite blue suit walks out of his rolls royce and hand over a brief case full of cash. Here Santa, here is your Money, go fund the Banta Co. Cheers!

If only Businesses used to work that way!

Welcome back Riters, today we will discuss how Businesses raise money and whats in it for you as a consumer. So lets dive in.

Every Business comes with a cost. Business need money to generate money, and there are four major ways a Business can raise capital –

  1. Early Stage Investors or Seed Money – This is usually when a Business is just starting up, and the founders may put in their money or may reach out to venture capital for investment.
  2. Profit as a source of financial capital – If firms are earning, they may chose to reinvest some of their profit back.
  3. Borrowing – Firms may choose to borrow money from Banks, that they can then invest back into the Business. This can also be referred to as debt financing. While debt is easy, it puts a additional burden to pay off interests.
  4. Stocks– This is a way by which a company can issue shares, and in turn get the public money to invest back into the Business. This can be referred to as equity financing. While this may sound attractive but going public may often means a lot of additional work that goes into financial reporting, where in you need to announce your earnings to the public and file them. If not done correctly it can also result in a company downfall, and eventual demise.

Oftentimes a company will use a mix of both debt and equity to finance their Business. And the best mix of debt & equity referred to as an optimal capital structure of firm helps maximize a company’s market value and minimize its cost. Often debt/equity ratio is something that a potential investor looks at.  

Lets further discuss how do the company raise capital via stocks.

IPOInitial Public Offering is the way by which a privately held company goes public and get listed on Stock Exchange. Think of Exchange as a place where Stocks (a piece of company) are sold & bought, so that you public get to be the owners! Owners, not in a real sense though you don’t get to take or make any decision as such, but you do get to keep a part of profit or loss.  

Now, as a consumer, you just don’t need to sell the shares/stocks to encash the profit, Some Companies also offer a regular payment a part of their earnings as ‘dividends’.  And remember the golden rule of Investment – Invest only in things you understand & do your own due diligence.

Now, if your Car runs out of fuel, you go to a petrol pump nearby and pour in some gas! Same way if a Company feels it needs more fuel aka more money to run, it may go back to you the public and ask for it, via FPO.

FPO – referred to as Further Public Offer or a Follow-on Public Offer is a process by which a already listed company issues new shares to the existing shareholders or the new investors.

FPO is used by companies to diversify their equity base with a aim to inflow subsequent public investment. FPO is comparatively less riskier, more predictable, and has a profit lower than IPO

The issue of shares IPO, FPO, private equity or debt instrument is regulated by SEBI (Securities and Exchange Board of India) in India.

There are two types of FPO:

  • Dilutive FPO – when the new offer of shares actually increases the outstanding shares of company. Such FPO is undertaken to fund the expansion activities or pay off some debts like the current Yes Bank FPO.
  • Non-Dilutive FPO– This one provides no additional shares or diversify the equity. This is when company’s founders, the board of directors, or other large shareholders sell their privately held shares on the open market.

Tata Steel Ltd, Engineers India Ltd, Power Grid Corporation of India, Power Finance Corporation Ltd, and NTPC Ltd are some of the successful FPOs in the past. The success of any IPO or FPO, depends on various factors like pedigree of the company, its promoters, earning capacity, potential and the Sentiment among the Market.

Each type of funding has its pros and cons, not knowing how to invest the money you earned or raised whether for a consumer or a business can make a whole difference between expansion or fall, growth or decline.

Thank you for reading, look out this space for more!