Having started the day being stressed out for having to overthink and being able to converge on a workable business model for my company , by the evening I am very much relaxed.
The dream of cycling downhill was meaningful. I believe it means that the understanding of how to run my company , which I have currently reached is a highly workable one and now it’s like going downhill. To me this means ease. It is the symbol I use when writing & conducting workshops. so what is such an understanding ?
1. Take the sell-side not the buy side: logic is that once you have a great product , you can look for buyers. Also my preference is to look & build on strengths instead of finding weaknesses & exploiting them.
2. Ask the buyers the desired price. up to that say commission is 5% . More than that is 50 % ( 5/ 50)
or 0 / 100. In case of highly closed minded clients, where less than 50 lakh , 2 Lakh rupees flat fee.
3. Advance of min. 5000 must be given to start otherwise they will leave. If no advance , the deal is wrong.
4. Buyers can be found from ads with the right copy writes. Ads are cheaper than cold calls / visits.
5. Target buyers must be visited with double agenda : long term buyers/ sellers & immediate sale
6. MMS must do 80/20 with consultants & 10% after sales slab is reached. If profits can be measured 5% on profits.
7. At the beginning MMS must make one month package to be paid on advance otherwise they will lose interest. It is better they drop the consulting idea before i waste time trying than me trying to keep them interested.
8. Don’t do anything for free unless there is learning and networking value
9. In bsp lowest value of companies will be 50 lakh or 1 crore sales per year or 15 staffs
10. In Mms, lowest value of companies must be 50,000 for 10 visits per week or 7000 per visit of 3 hrs.
11. In MMS , sell 360° management consultant report (360 MCR) starting at 50 K with 2 hrs of presentation. Execution as above. It will cover External factors (strategy, business model) and internal factors ( sales, accounts , HR , operations ).
12. In mms, Always take at least 50% advance to get commitment & trust from client.
13. In case of BSP, buy-side, we will not do brokering. Buyers and investors will have to open a fund with us in the 2/20 standard model. The PE/VC acquired companies will be run by MMS.
14. In case of Bsp, create a buyer base by classified ad and newspaper columns. The understanding is that buyers have a very long buying cycle of minimum 1 year to 5 years. Whereas sellers have a selling cycle of 3 months to 1 year after which they just give up and shut down. The objective is to have a smooth cycle.
