Finance For entrepreneurs ft @Anillamba | Avi Arya

The finance profesional come in to the picture after everything is over they do a post martermentelyu with a the organization has been a profit in a last finance management is happening twenty four by seven in every action of every individual in your organise.

Also everybody please lighted up miraba dive you quick intodctionrnlamba हैज बीन a number one figure in the iंडिnपrसnlfinanc space for a very long time। अभी तो वेबिनार्स और ऑनलाइन कोर्सेज और किताबें अभी लिखी गई है, but mr amba has been dominating this inds्tरyfor the last thirty प्लस और जब मेरी उनसे पहली बार बात हुई, फ़ोन के ऊपर ई थिंक जब कोविद स्टार्ट हुआ था एन टोल्ड इन देर आर मेनी थिंग दैट यू कैन डू ऑनलाइन वेबिनार न कोर्सेस और उस टाइम जो उन्होंने मुझे अपने नंबर बताए थे, देर आलरेडी वे हेड ऑफ़ देर टाइम्स सो आज हम उनसे जानेंगे मेनी थिंग्स अबाउट फैमिली फाइनेंस ऑनटरपिनोरशिप बट आलसो के कैसे है के वो 5 साल हमेशा दूसरों से आगे 1 कदम रहते हैं सो मिsrlamawelcome to the internet mogsbodschool.

Thank you thank you pleasure to be her slit correction to the introduction guys even the finances entra all falls into ar embed। but my man रिया इस business as we train companies and corporations and businesses on how to handle finance better so that is what i m going to stop speak to you about even today i believe all of your ontrpenersan any case that will be a more appropiattopic for you guys so for time is very very short, i m going to go right down to of you things how much time to have a about thirty minutes could be perfect ok so foksi⁇mgonto start with two of my favorite questions and the first one is how do i describe this company im going to as the questions im going to answer on behalf? because of the format, we are using so can i say this is a leading to mobile manufacture and how do are describe this one, they are a leading it services company and how do you describe this company, they are a leading hospitality company आर दीस करेक्ट आंसर all these are rong anser folks all these three names that i put over here are actually in the same business and never to forget the business of running a business enterprise is to make profit you are all on terpenes had i ask you guys what business are you in same anser you are all in the business of making profect second question is tell me? how many of you attending this session right, now are non finance people and the anser is non of you are non finance people chances र सम hands must started गोइंग up now what do i mean by that you probably saying you are a non finance person and msn you should not say so the problem seems to be in the definition, how you are defining who are finance person is and how i seem to be defining and mind this would have been my anser even if aneorfyour employes was attending this and employ in charge of sales r marketing or production or share my anser would have been you are a finance person so what do i mean by that forksyumust understand first of all the problem lies in the definition of finance management many of us in finance as things that happen in the finance department but most of the things that happen over there are accounting related thats not finance management finance management is happening twenty four by seven in every action of every individual in your organisms when a sales person is taking a decision about the price to be charged r e negotiating a discount all you deciding the credit to be given to the customer these are financial decisions production scheduling is a financial decision the number of people and char percent supposed to hire the terms on which you are going to hire these are all financial decisions your profit of the organization depend how many of these decisions are financially inteligent decisions and the people we call as finance people people like me we are not there when finance management is happening the finance professionals come into the picture after everything is over the do a post martermentelyu with a the organization has made a profit on a los so tell me who are the real finance people is it those so called finance professionals or is it the people on the flour on the field the market now i tell you why am telling you this because we par us prize for this misintrpretation of who are finance person but for i m going to start by quickly introducing you to a balanced because whatever i say depends on your understanding of the statement on one on valenci what are the balanced folk part in my speed i m going to be litle fast so that i can do some justice and live you with something solid in the next thirty minutes guys a valensiet as you know the two sides are liabilities and assets but frankly speaking liabilities simply tell you were the money has come from so it represent sources of many and assitsdelyou where the money gos lets say mohit jan starts the new business and lets see he wants to make for so he starts the company gold mohit furnaces now what are the first step in business it needs money we will the business get money from the first person it will go to will be mohit mohit give money mohit says home do you want the company says i want thousand cros lets see mohit says i m not interested in giving you thousand cross but i dont mind giving you for hundred cross this will be called mohit capital or if the amount is large then there can be a number of them ones then they are called share holders and the capital will be called share capital but the requirement was thousand cross so for the remaining six hundred mohit fornices goes to a bank of somebody and boro first point i m trying to make this please understand when an organization need money home option does it have just one what is the option boro, who doesn organization boro फ्रॉम it baros from the one and it borrows from an outside since bothadinthe nature of boroingsbotappere as liblitiesmaksens but tel me what is the difference between mister mohit as a lender and the banka as a lender the difference lise in the terms of lending bankers terms are listen i m not willing to take any risk i will land you on the condition that you garanty me r return whether you make a profit or a los you got to garanty return then of course the company must atoll the banker if you want to garanti return i respectiv whether we making a profit or a los th नंबर न keep your expectations ton down the banker massed im happy with let said that ten percent and company massed banka if you want me to give you that ten percent even when i making losses i m a green to that but then on the other hand dont forget i might even make profit and i mean make use amondsoprofet to then you dont keep in i on that if i m going to give you ten percent when we are losing i will give you the same ten percent when we make port of profit bank of masisedfanada mohit listing to this conversation between the company in the bank tels mohit fornices that see i am not like the bank i am not so unreasonable i understand the we opson downs in your business sameer you make profits somers you man not make profits mohit says i m willing to give you my money with no garanties what so ever what that mean that means if you dont make profits mohit says i m okay if i get nothing but then i says to compenset for the risk of may not get anyथhिंग he said when you do make profits and after you paid everybody i will take every on what terms what terms it the banker land bank led on the condition give us a garantie but a limited amount of returns mohit lend on the condition mohit land on the condition dont want garanties but then dont want limits on how much we can get it this company barosborositboros four hundred from mohit six hundred from the banka thousand crores are now deployed on the right hand site wonderful assets perchased those assets putin to us and now this company start generating revenue imagin on deployment of thousand cros this company generates a sales revenue of three thousand cross so far nobody has been bit i want you guys to visualize and tell me how many groups of clement can you visualized standing in a line seeing we want a share of the three thousand cross how will the three thousand cross with distributed, they still have to pay salary to the employees they have to pay wenders of raw materials they have to pay ren to the landlord they have to pay printer statin telefon water all these, but these are items i want groups can i see all these items comprise one group called oprating expenses one group standing in a line operating expenses second group share holders third group lenders and the fourth group for group गवरमेंट ऑफ इंडिया for income tax it guys doesnt matter what you do doesnt matter were you are located whatever sales revenu यॉर कmपनीविलजेनरेट will get distributed between these four groups, but not in this order can you now help me chose the order the first clam im sorry i m asking questions i⁇mancibecause is not time to bat for your anser, the first clam will be of operating expenses first of the month corrected operating expenses first of the month com salary has to be paid overheads have to be paid land lord has to be paid lets imaging this companies operating expenses this companies oprating expensive later asum are sixteen hundred cross how made that live you with fourteen hundred, what is this fourteen hundred called, this is this is not called gross profit before you say that this is ithercalled operating profit or this is the stage of profit, where from sales you have recoverd operating expenses, but you still have paid डिविडन द शेयर होल्डर, you still have paid interest to the lender, you still have पेड इनकम टैक्स o t गवernmeंट सो दिस इज आलसो कॉल pीbीitprofेt बefॉr intrest and tैxस or it is also called earnings before interest and tax ebit now three group a left now we paid the lenders how much has this company borod six hundred at what rat ten percent so you pay sixty that leaves you with thirteen forty from p b i t i has been a has been पेड सो दिस इस पी बी टी now the government lets imagine wiper the government three hundred and forty that lives you with thousand, who does this thousand cros, what is this call guys this is cold profit after tax act, who does this belong to this belongs to in arkas mohit this belongs to mohit so guys now in the line mohit the standing and mohit will say mohit furnaces i had told you if you dont den i will take nothing but when you do n and after everybody s been pad off i will take everything so mohit says please give this thousand cross to me but folks when mohit fornices well called mf now shorted when mf wanted mohit manin it had gone and made all kinds of rash promises to mohit that yes yes mohit all the profit will be given to you and this and that but now that is time to actually given to him this company starts having the change of heart the start negoseding with mohit the id mohit, we said everything blogs to you and das belong to you mohit you the owner altimatly, but the sad mister mohit, how much many did you give us four hundred cross head you not given it to us had you purtedinabeg how much wid you have got not even five percent in fix deposit little over five परसेंट had you invested in bonds you dear nine ten percent had you put riskvencersyou fifteen twenty percent this mohit, we can give you thirty percent r we can give you forty percent may be we can go to fifty percent, but dont take the tire thousand crores why had saying this the trying to cheat mohit anser is no ultimately mohit is the one of the company, then why they not giving it to him guys you have you notice no company gives the entire profit to shareholders my question is why not the shair holders condition of joining was, but the condition but by the shareholder was if you dont den i will take नthiंg you understand head this company not on this part of the bag and they would have an art completely his second condition was when you do on i will take everything and where they not giving it to ham why should the re invest why not give it to ham mohit, why should i go to resolve so guys whenever as this question i get new mirusancer as as as ramkrishna said they need some money for the future grot, they need some money for expension they need money for emergencies like pandemic who new something like pandemic my happen the still have to return the lone setratstratsetra and my response always is you know i will accept all your anser, but as reason number two for not giving it to more it, but there is a more important reason number one why this profit is not being given to him pankaj this i wish had i preceded my talk with about the for rs of more import the first things i would have coucatedtoyouand all of your other you have experienced one of the first things and onterpenorealizes after starting a business that there is no connection between the profit that a business make and the bank balance that it has a may be there is a connection i think there is an inverse relationship hire the profit you make lower the bank balence you have this may sound contititrybut on the prints will understand i mean the biggest mistri that confrm business people is ver is the मनी accountent stella somato ower so much profit in the bank dont money to pay salary so folks what him time to tell you is if this what him sain is if this company makes a profit of thousand cros even if they would love to givt to mohit but to give it to mohit there not only need the profit of thousand cros they need the bank bases of thousand cross which acording to me is impossible now asuming on the of chance this company not only had a profit of those they also had a bank balance of thousand cross, the still would not have given it to mohit now the other arguments would have coming they would have said mohit by making so much profit, because we are successful, because we are successful mohit, there are so many opportunities of growth, so many opportunities of expansion if you take all this funny home mohit how will this company grow and who is mohit is the one he understands if this is in the interest of the company not to give it to me and i am the nor of this company, then it is in my interest not to take it away mohit says no problem you can give me the entire amout how much can you give me fifty percent fifty percent el me how much money did mohit invest in this company for hundred cross how much is fifty percent of for hundred cross two hundred so give in a divident of two hundred cross now how much is left eight hundred cross who did this belong to now had you if you have said i belong to the company i will back to differ guys this doesnt belong to the company it continue to belong to mohit just because mohit accepted two hundred cros out of thousand crore profit that doesnt mean he has waved is right over the mining at nd cross he simply said you can give me thousand cros doesnt made how much can you give me two hundred give me two hundred use my eight hundred cross so tell me tel yes today how much money does this company mohit four hundred today how much money does this company mohit the original four hundred the still and now the him nother eight hundred cros so the profit that a company ma and does not distribute also appears as a liability under heading called reserves were of non finance people get a little surprise why s profit shown a liability anser is because i belong to the ona if you haven giving it to him, then you it to him as ravi shekhar correctly points out now the total bonny this company os mohd is twelv hundred cros ravi what is this twelv hundred crors called this will be called mohit or the shair holders network folks i said when i started this session i told you balanced laibilities represent sources and assets represent uses i was trying to prof टो यू do the liabilities represent sources is the first itm on the liability side source shair capital ansaris who gived to you the ona is the second item source anserizeswho gevid to you again the on the differences in the first car the ona physically invested many in the second case he man not have invested mani but he left behind something he could have legitimentlytaken ho is the third item source of many anser is yes who give it to you some banka some lender but organization not only go to banks and boro many they also go to wenders suplyars of goods and services and they can you suply these goods services and we will be you one month to month the munc later those items also appear offer here is this a source of money anser is yes the banker give you a lone in cash those creditors give you a lone in kind but it is a loan ever the less guys do you now recognise the left and side of this valenci to be mealy collection of sources but the ke question to be anser is why is going around boring money from everybody it is boring from mohit it is boring from outsiders it is boring directly it is boring indirectly do you think this is an abitrerycolection of many और must be aspera design guys this many better have come as per plan, but it is not funny how often it doesnt and when the money comes in without a specific plan in mind then this company has probably son the seeds of sickness even before it has taken off imagine this many had come without a plan tell me what will happen guys are the money has come without a plan then now when mohit starts investing this money on behalf of m s he will discover one out of two things happany he will iter discover that have through aquisition of assets he will run short of many because money has come विदाut a प्लान r he will discover hes able to by all the assets that he wanted and there is money leftover wheldimtraing to tell you is if money is raised without a specific plan in mind you will i the run short of money or you will have access money tell me which is a happy a state of afais should an organization है les many then it needs or should it have more money than it needs what will happen if you have less many guys if you have less money you want be able to by the asses for your functioning how will you function if you ras less money than you need you will get into travel if you ras mo money than you ne i think you get into bigger travel i am now giving you a mantra of good finance management and that mantra is please remember less is bad mar is worse no how les is bad everybody can ready understand how can movies again unfortunately i dont have time to explain you today i need to give you to three are more of input before i can explain why more as was but guys take my word for it and make sure everything that you have is it an optimum level if you have less installed capacity, then you need of some orders will not get executed on time if you have more you get into big a travel, if you have hire les man power, then you need some functions will not get performed। if you have more that is what i college npa non performing asset, how much blood presure should be have in our body, les nesisityofmore less is bad more risers this rule plis across life optommcrectaga optimum is the name of the give and the for हो मuचmonyandorganization ress is a matter of art and how do you know how much money you should raise that anser will be given to you by the right and side of your valencheetand there for in my opinion, if you re in a position to start a new business, a new enterprise, a new project, the first exercise you must do is to prepare and imaginary valencshiet of the business of project that you intend to start and which side of the imaginary balanced vid you make rithensidvisualised i the last penny possible if this business of mind has to secedhenhow much many do any, how much for land, how much for building, how much for ecupment and mind, you know geting every figure that you put should be preceded by रिसर्च invitation of cotationsetracentra on rithandsideasready total at up now mohit find for this business to be a succed। he needs a thousand cros, now he looks in side mac many das he had the business needs a thousand cros mohit has got four hundred cross of the one so, the next realistic exercise you have to do is very the difference going to come from whos going to be willing to lend ed to me this is called capital structure planning and once a blue print is ready this much money is required this is the way it will coming now when you start the real thing start with the left and side first invest the money that you propose investing out of pocket similtinnesty start the process of बॉरोइंग and on many comes in you start investing now i want you guys to help me visualized right side of this palencheetwhat will mohit do with this many, where will invested a sizable propotion mohit will use a sizable propotion mohit will use for aquisition ऑफ इंफ्रास्ट्रक्चर he will by land building plan machinery those items appeared in your balance under heading call fix asses let mohit invest substensialportion on the aquisition of infrast्rctur but mohit beter make sure that he desनot exostisरिसorcे in the process of creating infrastructure alone mohit has to make sure on infrastructure a set up। he has many left behind why, because he will now require a continuous supply of something known as working capital, now please help me visualized components of working capital why does need working capital imagine imagin mohit wanted to start the finest fornecer manufacturing organization in the country he wanted to be the best, because he wanted to be the best। he also wanted the best quality infrastructure so when mohit went to buy the infrastructure he got a little cary nd he landed up स्पेंडिंग mor many on इंफ्रास्ट्रक्चर then i should have what if the result result is today mohit has the best infrastructrin the country to make funicerbtnomany left working capital and let s next day sales lands up over there and sales says mohit i m starting a new it services company in my company i require probably a hundred cross work of ables and chairs alone and looking at your infrastructure mohit i think you are the best person in the country to give it to me i m very happy to give you an order of hundred cross will mohit be able to execute the order। anser is now why not working capital so why does need working capital that is you understand mohit? a very lucky person he started the factory yesterday and today sales walks in vetan order, but mohit will have to be far luckier than that for sales to say mohit have not only brot you in order of hundred cros, but ive also brotyouacheck of hundred cross thats not going to happen les mohit happens to be an exception sort of a company he be lucky nav to get the order now mohit has to understand in this hundred crore order the wood component sixty cros unless has the financial resources not only to buy infrastructure but also to pump in sixty cros in wood can run as business and has a prudent business person, he will not by wood after the order has been received he will probably buy and mentain and inventry of would in anticipation of orders so that the day the customer worksin production can start right away so guys the first component of working capital you need the financial resources first to buy land building plan main and then to be able to buy and mentain inventry second component of working capital capital is slashes order is resonably lag order mohit needs at least three months to execute the order। but next week is the first of the month and is employs a rating for salary and land lord is waiting for in and over its have to be paid mohit contes is employes guys can you just wait for three months the day sales page me help you salary no ser every business person understands expenses are continues incomes a sporadic and there for protins demands that you hold on to sufficient amounts of cash on hand so that de to de expenses can continue to be met without wating for inflow from operations and the third component of working capital is after three month of hard work mohit goes to sales your order is ready consinmentasredy would you like to com inspect give the go het so i can send it to you sales comes the sas gred job mohit send the goods to me and mohit says okay sales what if my check no problem com sixty did later and collect your cec not on lite mohit नोट गेट एडवांस्ड even not delivery he not get paid and he now needs for the financial musilpa to be able to last another sixty days and in the mean time business has to continue guys third component of working capital is deters i⁇mjustloking at my watch even to a event i have any started what i wanted to say wanted to intrvuce this so that i can take you some way, but i seem to have over short my time despite the speed, but i could not have giving your short introduction to a valenci.

Then this hi guys here thank you very much for watching this episode is so much fun bringing all of this to but one s it is difficult editing post production getty people together, but when you watch to the very it feels great so thank you very much ना i m going give you something and opportunity to connect with me and my eco system i have an email call worked with a var at gmail com now what are the possibilities are working with me number if you are somebody wos lakin this content that i m puting out and i want to get into your coaching i want to get into your eco system i want to understand how this work i have a school call the internet mog business school, where we have to program for ontripunassenmian email at work with the subject internet moguls business school and then came about your business, what are the challenges that a happy and accordingly one of rs sasconsltenc will call you there about your business and find the connect you with me and you see if you the right fit to work together नंबर टू इफ यू want me to consult with you just consulting one on one understanding or business giving your three month five rod so what with a var subject consulting and then give me all the details about your next if you want my agency to help you you could be a product of a service of porchatrana, whatever you ends to help our set up your get now get says proper system for the same thing work with vera and in the subject you will right agency help and indian me exactly what you want me to do for you and what are the challenges that i and if you want to work with me in my team as a frelanser as part time full time you get into the team work remotly from any war in the world again work with avira i want to join your team and then tell me about yourself ideal for all these thing witopia subject follow it with a nice micro video so i know more about you because i check every email myself and i love to get back to you and connect you with the right people it company so i vention we talk we have all these thing figetupfinally if you want to interview me for your podcast of your u। tube chanel email me and podcast with avira at gmail com der you go to base to base to connect with us work with avira and you want the multiple options and you got podcast with vera and we can podcast together so thank you very much for watching the videos dont forget to watch all these video send me an email would love to gar from you thank you very much edisan my name is avira sning f for now look to seeing you in the next video this link here which all my emal so you to get in tut with me as the link and get in there s you look f over to during that email from you by fon।