Hope every one of you is doing simply phenomenal and making money money money 😉
I have not been able to communicate with you since last few days (believe me, that’s a lot) because of all the running around I have been doing for work and marriages (well, it is the season). That being said, I wish to share some very interesting insights I gathered after reading the wonderful coverage of Vasan Healthcare’s story on Livemint. Leaving the political controversies aside for this post, allow me to focus strongly on significant takeaways from this entire episode. Agreeably, the story carries a lot of meat for early-stage ventures to learn from but if we think about it harder, there are some absolutely forthright money management lessons that standout in the saga. For your convenience and without further ado, here are 3 most important money lessons to learn from Vasan Healthcare’s story:
*Let thy step be slow and steady, thou shall stumble not: Almost on a daily basis, I come across buzzwords like instant gratification, super-normal growth, wide presence etc., implying the urgency of growing and reaping benefits instantaneously. In case of Vasan as well, the entrepreneur’s insatiable hunger to grow and grow fast brought about a dangerous climax. Even though the brand grew to around 200 centers in a short time frame, the entire model started becoming unsustainable and finally gave away under tremendous pressure from stakeholders.
In case of money management as well, we have often seen cases where people plan and try to reach the zenith as quickly as possible. In our opinion, it is equivalent to digging a grave for yourself. If you initiate the wealth creation exercise with the mindset of making a quick buck (time the markets, eh?), you are going to end up in a dismal state sooner than later.
*Lack of documentation becomes a problem for acceptance: True enough, the moment we stop keeping a track/record of significant activities, the results of those activities go out of control. If you read the Vasan story carefully, it doesn’t take long to realize that a grave error committed by the entrepreneur was to overlook the need of keeping a proper Balance Sheet for the company. As a result, both him and his stakeholders could never understand the intricacies of Vasan’s operations.
It goes without saying that a similar principle needs to be implemented in the money management exercise. You may be earning 18 percent plus returns from equity, invested money on a project with 20 percent IRR etc., but without reasonable record, it only becomes a mess at the end of the day.
*Have a mentor/coach and pay heed to him/her: Oh, this is the most critical learning I had after reading how the Vasan story played out. While the entrepreneur had scored the support of eminent personalities as mentors on board, the entire arrangement failed to produce result because of entrepreneur’s inattentiveness to their advice.
In order to manage money astutely, the presence of a great, experienced mentor is indispensable. However, the buck doesn’t stop at just having a mentor. The important thing is to understand, appreciate and evaluate his/her advice in the most legitimate possible. Mentors not only ease your path to success but also make sure that you go farther than you imagined!
While there may be more takeaways from the Vasan saga, I believe that these three are the most important lessons for me. I strongly recommend that you read all the literature available on the episode before making any conclusions. If you have any additions/suggestions to make, feel free to put it in the comments section.
Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy of any agency, organization, employer, or any company. Fintuned Co. LLP shall not be held responsible in any manner whatsover, for any decision/action taken by readers on the basis of the content mentioned in the article. Readers are requested to exercise their best judgement before taking any decision/action. Fintuned Co. LLP shall also not be held responsible for any copyright infringement committed by the author in the process of writing and/or publishing this article and in the event any such offence is found, cooperate with necessary authorities to take remedial action
Thank you Yuva members for organising such a fun and informative lecture. We enjoyed it a lot. Meeting and learning from Mihir Sir was really an amazing experience. And this is not only our feeling but all the students enjoyed his lecture very much and look forward to many such events.