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Hello, there!

We’ve got plenty in store for you this week 🙌 

• Podcast: Grace Nikae's Strategies in Art and Marketing

• Success story: Managing Crisis at Your Workplace, the James Burstall way.

• Planning Your Exit Strategy

• Weekly Business Challenge: What led to Meta’s Crash in 2022? 🤔

But first a tour of the headlines…

Weekly Catchups

News | Industry Insights | Trends

• 🎓 Wharton Regains Top Spot 

  Wharton has regained its position as the world’s leading provider of MBAs in 2024, the latest FT ranking of the top 100 global business schools reveals. Wharton alumni had the third highest salaries at an average of $245,772. France’s Insead was at number two, followed by the Columbia Business School. Six Indian business schools were featured in the list.

• 🟢 A Greenlight to AI Rules

  European lawmakers this week ratified a provisional agreement on landmark artificial intelligence rules, called the AI Act. These new rules aim to set guardrails for the technology used in banking, electronics, and airlines for security purposes. The rules will also regulate foundation models or generative AI like the one built by Microsoft-backed OpenAI

• ✴️ Bitcoin on the Rise 

  The value of all the Bitcoin in circulation reached above 1 trillion for the first time since late 2021. Bitcoin also broke through the $51,000 level, marking the first time it has hit this price since December 2021. This year alone, bitcoin is up more than 21%

Uncharted Horizons

Personal Development | Success Story

When the Going Gets Tough

What lessons can a film producer from the glitzy world of entertainment offer to business owners who want to pacify people in the face of a global crisis? British film and television producer and Argonon CEO James Burstall has several up his sleeve.

For a person who admits he errs a lot, James is doing many things right. His company was listed in the London Stock Exchange's "1000 Companies To Inspire Britain 2016." In 2021, he was named among the 50 ‘Leading Lights’ in the prestigious Kindness & Leadership 50 Leading Lights Awards. In 2022, Argonon was awarded the ‘Innovation, Disruption and Creativity Tribute’ by PACT, the Producers Alliance for Cinema and TV. More recently, his book ‘The Flexible Method’ bagged the coveted bestseller spot on Amazon. 

Covid brought with it uncertainty and disruption. But it left Burstall with some invaluable business lessons.

Facing Hard Truths: At the onset of the pandemic, James Burstall was eager to surround himself with colleagues who helped him make uncomfortable choices. In an episode of a podcast series 'Problem Solvers,' Burstall disclosed he was among the first to cut his pay in the company. James advocates for business leaders to embrace vulnerability and seek support from their organizations. Authenticity and transparency are at the heart of crisis management.

People-First Approach: Two weeks before the lockdown was announced, employees of Burstall’s company were in the confines of their homes, away from a deadly virus. James ensured he caught up with every single one of them to know if they and their family were doing okay. “If you’re not with your employees during a crisis, they have no reason to be by your side when it ends,” says Burstall

Spend In the Bad Times, Save in Good Times: No one could foresee the coronavirus’ impact on businesses initially. But cutting corners at the time would be a step in the wrong direction. Investing in technology for smoother remote business operations was a wise choice Burstall’s company made early on. They were back in business sooner than any of their competitors. 

Stick to Your Values: While businesses were trying to assess the devastating impact of an unforeseen pandemic, Burstall would often hear business leaders advising dumping diversity and inclusion initiatives and maintaining focus on retaining the financial health of their companies. He chose to speak against it. While it’s difficult to think long-term in the face of business uncertainty, it’s not impossible. Once the crisis nears an end, you’ll emerge stronger knowing you stayed committed to the company’s missions.

Strategies | Tools | Marketing Tips

All’s Well That Ends Well

For many entrepreneurs, businesses they’ve poured their life and heart into, become their identity. Selling a business is personal. At this juncture, emotions can cloud your judgment. Founder of Be Social Ali Grant says she had no plans to sell her company but when offers started knocking on the door, she had to learn about acquisition fast. Here are five things you must know before planning your exit strategy

#1 Hiring a Consultant

Find a banker or consultant with a demonstrated history of performing transactions in your industry. They can help with numerous tasks; from presenting financials and helping develop overview decks to asking hard-hitting questions to potential buyers on discovery calls. Your go-to person will either have to be paid hourly or a percentage of your sale. (Most M&A bankers expect around 3%)

#2 Valuing your Business

The value of your company is based on Earnings Before Interest, Taxes, Depreciation, and Authorisation (EBITDA). This number reflects to prospective buyers not only revenue but also operational efficiency. For this step, it’s extremely important to set the record straight. Document your revenue and spend ( Be Social used Quickbooks Online to maintain this). Take the help of an accounting professional to locate your EBITDA.

#3 Calculating the Costs of Selling

Determine the number that is worth giving ownership of the business you’ve built from scratch. On the surface, valuations may look promising but do not reflect fees associated with consultants, bankers, and attorneys. Also, factor in heavy tax implications based on where you reside.

#4 Finding a Specialised Attorney

Once you’ve agreed to high-level terms of sales, you will be presented with an employment agreement. Hiring an attorney specializing in mergers and acquisitions becomes crucial at this point. They will sift through hundreds of disclosures to exclusivities within the employment agreement. An attorney can cost upwards of $1,000 per hour for this kind of contract negotiation. Be prepared to foot a six-figure bill.

#5 Informing Stakeholders

Completing a sale by signing paperwork is just scratching the surface. You need to design a plan to inform your team. Your staff will most likely be fearful of the news. Make it clear to the buyer that you intend to retain your original team. You also might want to convey your wish to keep the company name as is. You will also have to combine forces and onboard new HR, accounting, and operational infrastructure. Some team members won’t be excited to embrace change. Be prepared for that.

Don’t Miss It!

Networking | Business Development | Entrepreneurship

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