Categories
Powerful Personalities

Management Lessons from the life of Lord Hanuman!

Introduction

In this article, we will discuss the management and life lessons from Lord Hanuman.

Lord Hanuman was the devotee of Lord Rama. He had Rama and Sita always in his heart.

  • What is in your heart?
  • What you are looking for in your life?


Lord Hanuman only sees Lord Rama. So, it was easy for Hanuman to absorb and execute the instructions given by Lord Rama.

Everyone has the idea but they lack execution.

Ideation without execution leads to delusion.

Example of Lessons from the Life of Lord Hanuman

We can learn various lessons from the life of Lord Hanuman.

Let us take one example from his life.

In Lanka, when Laxman was unconscious during the war between Rama and Ravana. Rama asked Hanuman, “Can you bring the Sanjeevani Booti to save the life of Laxman?”

Hanuman could have said, “Lord, I have applied for two days leave. I will not be able to go. It is very difficult to work. You can give me some easy job.” But, he has not said that.

There are two things – Initiative and Finitiative.

Lots of people can take initiative but finitiative is taken by only those who can take responsibility.

Responsibility is one thing that is never given, it is always taken.

In odd circumstances, your boss will only search for the employee who is more responsible and reliable.

Lord Hanuman is a live example of accountability, ownership, initiative, and responsibility.

Lord Hanuman could have said that Sanjeevani Booti is far away and it is not in my Key Responsibility Areas (KRA) and Key Accountability Areas (KAA). But, he has not said this.

He went to the Himalayas with very high speed to bring Sanjeevani Booti.

When he reached the Himalayas, he was not able to identify the Sanjeevani Booti.

He could have come back and said to Lord Rama, “Lord, you have not provided the sample specification. If you have shown me the sample, then I would be able to bring it. I was not able to find it.”

And Lord Rama would have accepted the Hanuman’s reply because he actually not has the sample.

But, Lord Hanuman brought the whole mountain with him to Lanka and said, “Please check and find the Sanjeevani Booti. I was not able to identify it. You have to spend 2 extra minutes in it.”

So, Lord Hanuman could have said no or he could have stopped at someplace. But, he did it.

Management and Life Lessons from Lord Hanuman
Check-in which of the following categories you fall:

  • Some people complete the work.
  • Some people see how the work is completed.
  • Some people get amused to see what is happening.

There are some people who when joins an organization doesn’t see what they have to do but they see who has the highest authority in the organization.

Such people take shelter of the people having the highest authority in the organization. These people are the parasites, who believes in-

Two Times Punch

One Time Lunch

Life is Tunch

Give yourself power, not excuses.

With every excuse that you give to your life, you lose your potential to be extraordinary.

Categories
Motivational

How to Multiply Your Business without Giving Discount?

Introduction

  • Is discount killing your business?
  • Do you want to know the most important factor in increasing your sales?
  • Do you want to multiply your business without giving discount?

Traditional shopkeepers, traders, and small merchants often adopt conventional strategies such as discounting, overdraft, extended credit period and freebies to increase sales.

Vendors and shopkeepers complain that to compete with the low-priced products imported from China, they end up giving discounts and freebies to attract customers and multiply your business.

Although such strategies may work for small businesses for a short period of time, they can’t retain the market for a longer period for big corporates.

To help the Indian business community increase sales and revenue and attract customers by understanding their nerve, we have compiled the following 5 powerful techniques that will help you to multiply your business without giving discounts.

Tip #1: Identify the Critical Success Factor of Your Customer

It is one of the methods to multiply your business without giving discounts


Just selling your product using any sales and marketing strategy is not your job, instead of understanding your customer’s money-making model and making your customer’s business successful is your job.

  • You have to enter your customer’s life to understand his/her business by becoming a trusted partner.
  • Try to enter your customer’s business and identify how you can help him to increase his earnings. Once you start helping your customer in running his business, he will become your loyal customer. This will help you to multiply your business.

Tip #2: Identify the Critical Success Factor of Your Customer’s Customer

  • Even after understanding your customer’s business, it is imperative for you to understand the business of your customer’s customer.
  • This is a very unconventional way to make a loyal customer by contributing to the critical success of his customer. It will help you to multiply your business.
    “Don’t act like a Sales Man, act as a Consultant”
  • Try to understand how your customer’s customer is generating income which is called success consulting practice.
  • If you contribute to the success of the customer’s customer by matching their needs, then your direct customer will become your loyal customer.

Tip #3: Identify the Critical Success Factor of Your Customer’s Competitor

  • Since you understood the critical success factor of your customer and your customer’s customer, it’s time to understand the critical success factor of your customer’s competitor.
  • Try to enter the business of your customers’ competitor and find out what policies and techniques they are using to run their business successfully.
  • After understanding your customer’s competitor’s business model, integrate the required changes in your product, which can help your customer to compete with his competitor and increase his business.
  • After the success of your customer’s business, he/she will become your loyal customer. This will help you to multiply your business.

Tip #4: Determine Where you should Focus


Don’t focus on conventional techniques of business to allure your customers like pricing, discounting, promotional schemes and over drafting, as these techniques don’t retain your business for a long duration.

  • You have to “focus on churning your innovative strategies to increase sales, gross margin, revenue, inventory turnover, cash flow, brand equity, customer acquisition, customer retention, profitability, liquidity, growth, productivity, and velocity.”
  • Small merchants and salesmen often focus on discount, overdraft, credit period and low-cost techniques, which after a certain period of time start hurting their profitability. On the other hand, big corporates focus on this innovative tool to influence their customer’s buying behavior to get an upper hand over their competitors.

 

Tip #5: Customer-Centric Organization

“Customer’s critical success factor should be the foundation of your corporate strategy.”

  • Restructure your organization in a way that it’s each and every department works towards contributing to the need of focused customers. Organization’s every department should direct their efforts to add value to the biggest customer’s critical success factor.
  • Engage all departments in brainstorming game-changing ideas to build customer-centric strategies to increase the sale of your product. This will help you to multiply your business.

All the abovementioned tips will help you to multiply your business without giving discounts.

Categories
Motivational

How to Handle Tough Situations in Life

?Introduction

  • Do you get nervous in tough situations?
  • Do you want to know how to handle tough situations?

For handling tough situations, there is only one formula, i.e.

Event + Response = Outcome
 

Event means what is happening around you or what are the circumstances.

The response is your choice, i.e., how do you respond or deal with the circumstance. 

The outcome is the result of your response to that event.

Out of event, response, and outcome, what is in your hands?

You neither have event nor outcome in your hands. There is only one thing in your hands, i.e. response.

So, to know how to handle tough situations, you need to understand the event and response or react accordingly.

Reaction is thoughtless while response is thoughtful.
 

The problem (or event) that is happening in your life is not the problem. But, considering a problem as a problem is actually a bigger problem. 

How do you respond to that problem or the circumstance? This is important.

Be Mentally Strong, Not Strongly Mental
 

Circumstances can be anything. They can either make things or break things. They can either make you strongly mental or mentally strong. 

It depends on your choice how would you like to lead your life: 

  • By chance or by choice
  • By default or by design

Lots of people are not choosing or controlling their emotions but their emotions are choosing or controlling them.

For handling tough situations, you need to make your mind mentally strong.

Some people are directed by their emotions while some are directing their emotions.

Some people take instructions from their mind while some are giving instructions to their mind.

 

Event should not have the capability to change your outcome instead your response to the event should have the ability to change your outcome. 

If an event is bad and your response is also bad, then the outcome will definitely be bad.

If an event is bad but the response is good, then it may be possible that outcome is good. 

Lord Krishna said in Gita, ’Karam karenge; ho sakta hai fal mile, ho sakta hai fal na mile.’

If you do not do your job, then it is confirmed that you will not get the output.

How to handle tough situations?

For handling tough situations, you need to bounce back in tough times. 

Every successful man whether Picasso, Abraham Lincoln, Gandhi or any other successful man in the world, ’All the success stories in the world are the stories of great failures.’ But, it is their ability to bounce back in tough times that makes them successful.

You don’t become successful just by reacting. You become successful by responding to a tough time. 

Tough times tell a person that you are tougher than the tough times. 

Choice is power.

Don’t be push-start, be self-start. 

You have the power to start yourself right now.
 

Response is Everything

There is nothing in the event; everything is in the response. How do you respond to this event will determine your outcome.

So, for handling tough situations, you need to understand how to respond to an event. 

For Example:

A small boy lost his father at a young age and his mother and relatives left him. Now, the same event:

1. can make the boy mentally strong or strongly mental

2. can give him either a hopeless end or endless hope 

3. can give him either breakdown or breakthrough

It will all depend on what he chooses.

 

Whatever has happened is your experience. What you are is your existence. Experience and existence are different. Do not depend on your experiences. You can’t go back.

Have a better response to having a great outcome in your life.

According to the 2.14 Shloka of Bhagavad Gita:

?gam?p?yino ’nity?s

tans-titik?hasva bh?rata

Shri Krishna said in Bhagavad Gita, ’winter, summer, happiness, grief, respect or disrespect will come and go as they are temporary, but one must learn to tolerate them without being disturbed.’

The event is temporary. Your response is always with you. Keep choosing.

Whenever you fall, you should bounce back in tough times always. Your response will create a great outcome. You are born to create history on the planet earth.

Categories
Motivational

Increase your Business Performance using Money Making Model!

Introduction

A survey says that 88% of the employees in an organization are passengers while only 12% are the drivers.

  • How will you increase the drivers in your organization?
  • How will you increase your business performance? 

To get the answer to the above questions, you need to first answer the questions given below:

Q1. What is the Money Making Model of your Department or Organization?

Money making model is one thing that drives the business performance of your department or your organization. 

According to the Pareto Principle, “if you do that one thing, it will be most impacting to the entire business.”

It further says that your 20% activities will give you 80% results and your 80% activities will not give you even 20% results. 

You need to identify the one thing that enables you to get 80% results by doing 20% activities. This one thing will be your money making business model.

Q2. What is Your Contribution to the Money Making Model of Your Department or Organization?
  

Do you know what exactly your responsibilities are in the money making business model? 

If you don’t know this, then your vision, mission, strategy, and plan everything will fail.

How much time you are investing in making the money making model for your department or your organization? 

You need to identify the answer to this question. 

Q3. Does Everybody in Your Department have the Answer to the Above Two Questions?
 

If you got the answer to all the questions discussed above, you will be able to align the entire business performance in one direction. 

If the entire team or entire organization is working on the most impacting activity and in one direction, it will increase the organization’s revenues, productivity, and profitability and make it grow. 

This should be your money making business model.

If you want to drive your business performance and improve employee engagement, then make sure each and every employee in the organization has the answer to the above three questions. They should have the knowledge of money making model of your business.

Categories
Process & Business Expansion

Why Family Business Success Planning is Important?

Introduction

  • Does your family-owned business falling?
  • How to make a Family Run Business successful?

??Hundreds of big family-run businesses collapsed over the last few decades in India due to a lack of efficient family business succession planning.

Most often, conflict among family members owing to leadership and wealth management and lack of long term planning lead to debacle of family-run businesses in India

 

In the view of problems faced by family-run business owners, the following 5 steps will help you to make proper family business succession planning process in the long term. 

Step #1: Long Term Leadership and Strategy

It is the first step of family business succession planning. 

The family-owned business that lacks long term leadership and strategy doesn’t go a long way. Success and longevity of a business depend on the long term vision and mission for executing strategies. 

A family run business often has old-fashioned leadership, which is incapable of formulating innovative execution strategies, involving new capital and people for a longer period.

With paternalistic control over its day-to-day affairs, such businesses are incapable of recruiting external people. 

Such a conservative style of doing business may work for a short period but fails in the long run. 

A leader in the family-run business must be capable of making an action plan for a longer period to maintain its credibility in the market. 

Step #2: Succession Planning

Pathetic family business succession planning has long been the prime reason behind their failure since centuries in India. 

The absence of systematic succession planning of business often triggers conflict among family members on the exit of an incumbent. 

According to the PwC report, ’Only 15% of family-owned businesses have a robust succession plan.’

During a sudden crisis of leadership, if there is no systematic pipeline of leadership, family members start confronting each other for the succession of business and end up hurting business.

Family elders who are heading the business need to best

Categories
Motivational

Learn Stress Free Life Tips!

Introduction

  • Does your performance decreases due to stress?
  • Are you not able to manage stress in life?

Today, stress has become an inevitable part of our life.

You have various commitments and responsibilities towards your family and work. While fulfilling these responsibilities, you might get stressed. This will directly affect your performance.

The following are some of the stress free life tips.

Tip #1: Event has no meaning; you give meaning to the event

It is one of the stress free life tips.

Any situation of our daily life is called an event. Examples – you incurred huge business loss or some loved one passed away in your life.

An event is good or bad depends on how you see it. An event is meaningless in itself. You give meaning to an event and behave accordingly.

For Example:

Your boss shouted at you publically. Is it a good event or bad?

If you give it a positive meaning, you will have positive behavior.

If you give it a negative meaning, you will have negative behavior.

This same event can make you or break you.

What is the reason of stress?

Stress is either due to people or your past experiences. Whenever you try to change the people or your past, you become stressed.

To manage stress in life, you should give new or positive meaning to the event and your behavior will change automatically.

Tip #2: Things turn out best for those who have made the best out of the way, the things have turned out

Your behavior depends on your reaction to the events or things. A positive reaction will result in positive behavior and negative reaction will result in negative behavior. It is also one of the stress free life tips.
When you change the way you look at the things,
The things you look at will change.
? You cannot change the people or your past, you just need to change the way you look at them.
So, you have to change your outlook to see things to manage stress in life.

Tip #3: You don’t behave based on what has happened to you, you behave based on what you feel has happened to you.

You don’t behave based on somebody abusing you, you behave based on what do you feel about somebody abusing you. Here, how you feel is the driving force behind your behavior. It is also one of the stress free life tips.
According to a Shloka of Bhagavad Gita:
Upadrastanumanta ca bharta bhokta mahesvarah
paramatmeti capy ukto dehe ‘smin purusah parah
Krishna is Overseer and Permitter. He looks at an event or situation from a distance and does not get involved in it. Therefore, he is not affected by any situation or event.
You should also become overseer and permitter like Krishna. Look at a situation or event from a distance and have a better understanding of the event before reacting.
This will help you to manage stress in life.
 

Do not get involved in a situation because existence and experience are different. You need to look at things from a different perspective.

Categories
Finance

How to Recover Money from the Market?

Introduction

  • Is your money stuck in the market?
  • Are you not able to recover your money from the market?

In this article, you will learn how to recover money from the market on time from any type of customer, whether they are distributors, wholesalers, retailers, resellers, or franchise partners.

To know how to recover money from the market, you just need to follow the 10 tips to recover money from the market given below.

Tip #1: Check the Payment History of Your Customer

Check the payment record of your customer. It is one of the tips to recover money from the market.

If he timely pays the other vendors, there are chances that he will pay you on time as well.

If he is not paying other vendors on time, he won’t pay you on time as well.

Tip #2: Use the Well Written Contract

Every sale you do should be governed by a written contract and crafted by an Attorney.

One of the tips to recover money from the market is to use a well-written contract.

It means your deliverables, time frame, dispute handling, and payment expectations should be mentioned clearly in a contract.

If the language of a legal contract has some mistakes and weak statements, then you can face some problems in the future.

Tip #3: Use a Delivery Acceptance Letter

It is also one of the tips to recover money from the market is to ensure acceptance letter on the delivery of goods and services.

It works as a Proof or Record for your delivery services.

You can also use this paper in further communication like Time of Delivery, Name of Recipients, Invoice, etc.

Tip #4: Issue Clear Invoices to Your Retailers

While giving the invoice to your customer, mention all the Terms & Conditions clearly.

You should also ensure that the invoice should be received by the right candidate.

Tip #5: Follow-up with the Clients Regularly

To maintain regular Cash flow and Profit, there is a need for consistent follow-up or continuous communication through e-mails, business chat messages, calls, etc.

To run a successful business, cash flow is very important. It gives you the purchasing power and helps you to sustain in the market.

Tip #6: Handle Dispute Professionally
“Professionalism is a key to success”.

Your tone and voice should have a nice Verbal, Vocal and Visual Effect.

It is helpful in resolving the issue related to Product, Project Objection, and Market Competition.

So, handling disputes professionally is one of the tips to recover money from the market.

Tip #7: Incentivize the Early Payments

If your customer pays you early, then give him/her extra benefit. This benefit will be considered as an incentive and not as a discount.

So, incentivizing the early payments is also one of the tips to recover money from the market.

Tip #8: Charge on the Late Payments

If your customers make late payments, then you can also impose charges i.e. late payment fees so that same behavior shouldn’t repeat in the future.

Tip #9: Know When You Need External Help

When the above mentioned tips to recover money from the market does not work or it is not easy to get back your money from the market; you can also take either help from Recovery Agencies or Legal support.

For Example:

Banks take help from recovery agencies to recover its loan amount or pending bills of Credit card from the customers.

Tip #10: Relation and Reputation is the New Currency

If you know the art of making good professional relations or communication and have a good reputation, you can better negotiate and it will work like a powerful currency for you.

These tips to recover money from the market will help you recuperate yourself from losses and once again take your business on the track.

Categories
Marketing

How to Measure Customer Satisfaction?

Introduction

  • Do you know whether your customers are dissatisfied or satisfied with you?
  • Do you know how to measure customer satisfaction?
  • Do you know the Net Promoter Score calculation formula?

All this is Very Simple!

To know how to measure customer satisfaction, you need to first understand how to take feedback from the customer. Companies used to take customer feedback through feedback forms.

You need to bring a little change in your feedback form to evaluate whether your customers are also your potential unpaid business developers.

Are they your potential promoters?

Are they positive, neutral, or negative about you?

You can determine this by taking feedback from the customers on a scale of 0-10.


How Your Customers Rate You?

  • People who rate you between 0 and 6 are detractors – These are those people who are not at all happy with your company, goods or services. They will post negative things about you on social media. They will write various negative things about you in your customer feedback forms. These people will never recommend you to anyone. They will never allow their family and friends to go to you. In their personal, professional, and social life, they will make sure that nobody goes to you.
  • People who rate you between 7 and 8 are neutrals –  If someone goes to these people and ask about their experience with your company, goods or services, they will say it was ok or it was fine. These people will neither promote you nor defame you. They will not allow you to put their reputation on stake to be used to favor your brand.
  • People who rate you between 9 and 10 are your unpaid promoters –  Whenever somebody asks them anything about your industry, they will recommend you strongly. These are those people who will always try your new products and services. Whenever any of your new products come to the market, they will buy it. It is very likely that they can buy your products even at higher prices.

For any organization, it is important to calculate Net Promoter Score (NPS).

(NPS) Net Promoter Score Calculation Formula:
Suppose, if out of 100 people, 40 people give you a rating between 0-6, 10 people have given you 7 and 8 ratings, and 50 people have given you a rating between 9 to 10, then your Net Promoter Score calculation formula will be:

NPS = Promoters (P) – Detractors (D) [+/- Neutrals (N)]

= 50 – 40 (+/- 10)

As neutrals will have no effect on your NPS score, so:

NPS = 50 – 40 = 10%

So, your NPS is 10%, it means that out of 100, 10 people will promote you.

Your NPS should be higher and positive.

Net Promoter Score calculation formula will help you to figure out your current customer satisfaction level, brand loyalty level, and brand loyalty measurement index. This figure will help you to strategize your future plans.

Measure your detractors and make a note of the complaints.

According to the new management strategy, the complaint is a gift. So, catch it because it will help you to strategize in the near future.

Neutrals will always remain neutrals. Try to engage promoters strategically and use them for your Brand Promotion.


You should listen to your detractors and solve their complaints otherwise they will keep on speaking negatively about you.

With the help of strategies of how to measure customer satisfaction given as above, you can understand what your customers’ needs, and scale up your business.

Categories
Process & Business Expansion

How to get J-Curve in Business?

?Introduction

  • Are you worried about continuous loss-making in your business?
  • Do you want your business to get J-curve growth?
  • What is J-curve in business?

No business has ever become successful without having committed any mistake. 

They became successful through bringing in continuous improvements in their businesses.

In essence, they adopted J-curve growth strategy to turn around their business.

J-Curve in Business

After continuous failures, when a business makes a remarkable re-entry into the market in a new avatar, it is denoted as J-curve growth in business.  

J-Curve in business is a situation when a business makes a steep upward movement after the persistent downfall.

Let us understand J-curve growth in the business world with the help of some examples.

Instagram
   

It started as a mobile gaming application named Burbn but failed as it was a heavy application to run on mobile phones.

However, people liked the function of uploading photographs by taking selfies.      

It was re-launched again with the name ’Instagram’ with full features of photo uploading and sharing and it gets J curve in business.

YouTube
     

It started as an online dating site. It failed. It was bought by Google in 2006 and it converted it into a video search engine.

Today, it has become the world’s largest video sharing platform. It gets J curve growth in business.

Flipkart and Amazon
      

They started as small online book stores. After learning from mistakes, they brought extensive changes in their business model and finally, they get J curve in business.

Paytm
        

J-curve effect could well be understood by how Paytm became India’s number 1 payment transfer platform over the night. 

It started as a small online mobile recharge website, which was a failure.    

With astounding J-curve growth, it bounced back and became India’s largest online payment platform.

Facebook
    

It started as an online dating site, named, Hot or Not
. It failed because people did not want to be disliked by others in public.

Learning from previous experiences, Mark Zuckerberg launched Facebook that became the world’s biggest social media platform. 

Shopify

It was started as a snowboard equipment venture. It proved to be a failure.    

It was launched as an online platform for budding entrepreneurs to use this to customize their online store, build a new sales channel, manage unlimited inventory and track your sales and growth trend. From this online platform, it gets J curve in business.

Groupon

It was initially launched as an online socially responsible platform to mobilize people towards any social cause.

It was converted into a category crusher, where a group of people come for heavy negotiation and discounting and it got J curve in business.

Twitter

ODEO was a mobile application used to search and subscribe podcasts. It could not sustain itself in the market against Apple’s iTunes. It was launched again as Twitter and today it is the world’s biggest microblogging platform.

Starbucks

Till 1983, Starbucks sold coffee beans and coffee machines.

While traveling to Europe, Howard Schultz, the founder of Starbucks got an idea to sell brewed coffee to customers.

Today, it is the largest chain of coffeehouses across the world.

Android
        

Similar was the story of Android which was launched by a group of people in California in 2003 as a platform to connect the camera with the computer.

It got J-curve growth when Google acquired Android in 2005 and brought significant changes in it. Today it is the single largest mobile operating system in the world.

In the above example, you can observe that no business became successful in the first attempt. They had to taste the failure, before becoming successful.

Your first product is never your final product.

Your first product is meant only for testing. So, if you get failed, then do not worry. Learn from the mistakes you made and build an improvement cycle.

Categories
Private Equity Funding

How to Get Funding For Startup?

?Introduction

  • Are you unable to get funding for your startup?
  • How to get funding for startup through PE/ VC/ Angel Investor? 

Being an entrepreneur the most essential things is getting funding for your startup. 

So, let’s understand how to get funding for a startup with four significant stages as given below-

Stage #1: Start-up Stage of Business

In this stage, you arrange money from family, friends, and fools (FFF).

Friends
– They are always ready to help you and mostly become the first investor in your start-up business.

Family
– Next is your family members, who can be a valuable support to get funding for your start-up business.

Fools
– (who comes easily in your words without analyzing the future scope of your business) – If you have convincing skills you can also collect funds from such people who can easily believe in your business model.  

Stage #2: Early Stage of Business

In this stage of business, Angel Investors supports you. Angel investors refer to those investors, who invest less and gain less but they work like a necessary supplement to your business and help to move your business to the next level.  

Stage #3: Growth Stage of Business
 

Venture capital (VC) is the major source to get funding for your startup. ’VC brings seed capital to your business.’  VC invests in your idea.  

Important Facts about how to get funding your startup from VC –

  • VC investor usually invests only in Software, Technology or Biotech Business. 
  • VC starts with low investment in the business. 
  • VC focuses on Topline in P&L account, sales or big market share. 
  • VC determines the valuation of a company. He roughly calculates the potential of a company to jump from Rs. 1 crore valuation to Rs. 100 crore. And his money will become Rs. 30 crore from Rs. 30 lac.  
  • VC is a fast mover and works on valuation so he invests in the business.
  • From the very start, VC works at high risk. 
  • VC exits through another investor. 
  • VC invests in many companies and knows very well that out of 100 companies at least 10 companies will give him desirable profit so he focuses on those 10 companies, which are growing rapidly.

Stage #4: Maturity Stage of Business
 

  • Private Equity helps you get funding for a startup when your business expands on a vast level. So ’Private Equity brings a growth capital in your business.’ 
  • PE will invest in your business when he will found Profit / Compounded Annual Growth Rate (CAGR)/ Stability in your business. 
  • PE investors focus on every stable business. 
  • PE can go inside portfolio i.e. Manufacturing, Retail, IT and FMCG business because he is in the search of stability in the business.
  • PE starts with high investment. 
  • PE expects to profit from the business and focuses on the bottom line of the P&L account. 
  • PE is stable and wants both profit and expansion in parallel. 
  • PE works at low risk. 
  • PE exit through IPO.

Loan (Debt Financing) and PE (Private Equity) invests in business in the same stage, when operations, sales, and profitability of the company are stable. At this stage, you can take a loan and private equity both for the expansion of the business.

If profitability and cash flow are very good in your company, then don’t invite Private Equity. Better you take a loan on the nominal interest rate. And if you feel risk in your business also unable to pay EMI, then invite Private Equity.
This essential information about how to get funding for your startup will give immense growth in your business, and no one can stop you from reaching the top position in your industry.