We dream to start something of our own and in that process we dream to get into profession similar to doctors where they start practicing and gain knowledge and independent recognition. Cost Accountancy is one of the professions where students pursuing finance domain studies can become independent professionals. But many fellow members would say that starting a practicing work is not easy, since you need ability to move ahead when you search for work and you don’t get any. But the time has changed with the introduction of New Companies act and wide opportunities from globalization.
I have found in my research that capital is being given the highest priority for forming any individual venture or business opportunity. Well this is one of the traditional conceptions about starting a new venture. Today in the Age of Smart Phone and Technological revolution in my research I find invisible capital playing a bigger role for the practicing or entrepreneur growth. Of Invisible capital is the tool kit of our skills, knowledge, languages, networks and experiences. The most part of a practicing business is developing an attitude since this attitude is going to be the key motivator for doing the struggle. Human capital is the one which we own and develop over the years in terms of knowledge and experiences but we need work hard to develop strong social capital which is networking. It might seem that its easier said than done, that develops networking but the biggest question is how to develop networking. We need to attend the seminars arranged by the various business houses.
This will lead to increase of human capital as well as social capital. This also helps to develop the intellectual acumens which is required to bring success and speed within the practicing business. Today the cost accountants profession is no longer limited to accounts and taxation and vat audit and excise audits. Today if practicing cost accountants wants to practice as a value in that case he needs to have the human capital but how he is going to develop the social capital of networking. Meet with the bank people and make an introduction of yourself. Develop a process note of how you will carry out the process of valuation from the point getting file and ending up to proving the financial requirements of the clients. One cost accountant needs to develop the network of venture capitalist and private equity financiers since this will build your knowledge about their business process and valuation perspectives. Networking of banks would help you to manage the cases regarding debt syndication etc. But for all these you need a attitude to move ahead and not to get nervous.
One must remember that once the Indian economy is back on track their will stupendous growth in Merger & Acquisitions followed with various types of corporate financing and debt syndication business opportunities. As a Cost Accountant having in-depth knowledge about valuation one should take full advantage of the growth of this economy. All we need is to come out of the cocoon of traditional beliefs and thoughts. Invisible capital is the biggest strength for a cost accountant to start practicing. One needs to identify and acknowledge the invisible capital. Invisible capital should always look out for expansion and growth. We often do mistake that we think that to start practicing we need to start with big. This is completely wrong. Most of the successful business on the earth has been started from a small platform. You don’t need to many contacts or networking from large group of segment. All you need is focused approach towards the area of your operation and moving into that direction. At the same time keep collecting the pebbles since you don’t know when you wash the pebbles they might turn out to be jewels.
In my research I have found that many of us feel nervous by adopting this thought that we are new to the field of practicing and we don’t have much information and knowledge about the business. Well we need to understand two point over here1) if you don’t move first some would move and you will be the last.2) don’t be afraid of failures. Market always open door for the new ones since new opportunities only come through them.
As a practicing fellow the first mistake we do is that by copying other business operation and their strengths and weakness as ours own and not identifying the alternative paths. Well there are always alternative paths. The success of practicing comes from the speed with which one chase multiple things at time. Since according to the mathematical probability theory if you throw a dice there are several chances of different outcomes. Learn from seniors but don’t copy them. This is a death trap from not having the practicing segment to grow. One needs to focus more on social capital and also on the core values of the new markets. We cost accountants should develop and search for creativity in our field where traditional practicing areas and operations needs to be changed. Another area where cost accountants fail is efficient use of technology and cheap process but highly efficient and sophisticated technological operations mode. Only mere knowing email and word and excel would not be sufficient. We need sophisticated mailing process where use of words and expression of communication is professionally designed. You need to have a great attitude and open mind towards all technological information. For example using Skype for video calling so that long distance projects can be easily picked up and also it helps to develop networking. This saves the cost travelling and other necessary costing. Using social platforms for developing business network is the best way. Above all I can say that its only the mental attitude which is born in the wombs of our social back ground which pulls us away from the success of practicing.
In my research I further find that Senior and junior cost Accountants needs to come together and create community assets for the development of the practicing and invisible capital. I will be covering this aspect of the topic in my next article.
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Global Macro Economic Researcher and Business Strategist
Master of Economics, MBA in International Management, ICWAI (Final)