The Story of the Magic Seed

 The Story of the Magic Seed 

1) Imagine there was a farmer who had found a Magic Seed that would sprout into a Magic Plant, get nurtured into a  Magical Tree & bear Awesome Fruits having Massive Healing Power 

2) The Farmer sowa the Magic Seed lovingly and waited for it to sprout into the Magical Tree

3) The Seed sprouted into a Magical Tree laden with Magic Fruits. The farmer collects the fruits and took them to the market and sold them for a hefty Profit

4) But by the time the farmer returns he found out that someone has stolen the unplucked fruits 

5) Most Business Practitioners operate like this farmer; be it doctors or lawyers or CAs or Financial Advisors  

6) They want to do everything themselves

7) There are two main factors that make them want to do it all by themselves. 

A)  'I know it all' Ego 

B) Not wanting to Make Adequate Investment in the business 

8) What the farmer should have actually done was 

A) Erect a fence around his orchard

B) Hire a person to watch over them when he was out

C) Hire the services of someone who could collect the fruits

D) Hire an Accountant to track the number of fruits

E) Hire a salesperson who could get  orders from the market

F) Hire a transporter to transport the fruits 

G) And so on and so forth

9) The farmer instead of focusing on the fruit should have seen the entire orchard as his fruit 

10) Practitioners to focus on the fruit, the product, or the service 

11) They focus on the quality of product and margin that they can make 

12) What they don't realize is the limited potential of Margin & unlimited potential of leverage 

13) Leverage is getting others to rally behind your business vision and forming a team of committed individuals; 

Leverage is mobilizing capital to fund the business 

Leverage is the investment in  technology / Automation to scale up operations

Leverage is mandatory for a business to overcome margin pressures arising out of competitive actions in the short term 

Leverage builds the potential to manufacture high volumes and make high revenues in the middle term

Leverage builds Massive Valuations in the long term

14) Hence Business Vision; a larger Purpose that solves the Pain Points of different customer segments needs to be articulated appropriately by the Business Owners

15) This is the key job of the business owner / Entrepreneur

16) His ability to see what others can't and to start behaving in a manner now to solve the distant problem is the Entrepreneur's Vision and Behaviors

17) His conviction should be strong enough to invest in his business and shoulder the burden of revenue pressure in the short term

18) In this example the farmer must invest in the best fertilizer and the other stuff explained above to ensure that the plants are well looked after and the fruits are being produced efficiently

19) He shouldn't think of making any sort of compromises whatsoever

20) It is the system he creates that becomes his fruit to watch over and likewise a businessman too should watch over his business system 

21) The best of businesses and brands we see today has been built upon numerous sacrifices made by the business owners over the course of the business in building a Business Ecosystem

22) Understanding that the business owner is a mortal with a best before date whereas a business idea is immortal without a best before date is the crux of Entrepreneurship

23) Time to appreciate that a Business is an Independent Entity with its own Bank Account & PAN card ; that generates profit and provides the owner a salary for his efforts; Generating Massive Valuation & Dividends for its Stakeholders

24) Working on the Business and not in the Business is the most important concept that Practitioners or quasi Business People need to comprehend if they want to seriously experience the joys of creation, solution, and valuation.

Raja Bhattacharjee