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ChanakyaShaala

Never Reveal Your Loss of Wealth

Among all my Strategic Marketing assignments, the most challenging have been the one involving Business Takeovers. Many entrepreneurs approach me for selling their existing Businesses. And what’s common factor? Almost all of them have approached me when their Business is on the downside curve. Any Business Takeover aspirant (one who plans to sell his running Business) aims to get some revenues on account of Brand Equity (Goodwill) over and above the asset value. But why would someone pay Goodwill when the Business Curve is on the downside? 
Chanakya says that a wise man should not reveal his loss of wealth, and the disgrace that has befallen him. When we approach a potential client with a takeover proposal, forget about the goodwill, we will not even get the right value for the physical assets if we present the Business in bad shape. In the modern day Business Environment, one can’t bluff. Gone are the days when one could fudge the balance sheet and befool clients. My take on all Business Takeovers is, bring the Business back to shape, and then advertise for a takeover. The only way one can create a good Business takeover proposal is to genuinely spend money on decent Marketing activities as well as on requisite Business restructuring. Once we show a healthy balance sheet, healthy bank statement, and a healthy Marketing function, Business Takeover proposal becomes attractive. 
©Kujnish Vashisht, Expedient Consultants
www.chanakyaneeti.comwww.sharepundit.com
expedient33@gmail.com

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