Beware of complex biz models and celebrate "consolidation year" every 5 year...

Usually arguments with wife are nothing to boast about, but this one is worth mentioning. My wife was unhappy that I ventured into sourcing business along with recruitment. According to her, The business model is too simple and even a child with an IQ of 8 year old can do this.

She said and I quote "You are an MBA in Finance, Why cannot you do something like Lehman, Merrill or Morgan. I feel ashamed to tell the world that my husband is into recruitment business and now you are entering into much simplistic venture of sourcing material at low cost and selling to corporates for a margin. It does not require any brain."

Our argument did not last long as I myself was somewhat bought with an argument. But recent new articles on failure of Lehman Brothers, AIG, Merrill Lynch, Washington Mutual and Wachovia gave me courage to write this blog.

I learnt few lessons from the current scenario, which is worth sharing. This applies to marriage as well as finance world

1. Don't marry a complex spouse... Any complex business model will seldom attract investment of common man, hence these businesses have to be funded by high risk investors, who demand higher returns.
2. Don't marry Indian traditional way (where family choose spouse for you)... Don't invest in businesses for which you don't have passion. Passionate person would not get bogged down by adverse situation.
3. Maintain a very high liquidity: Liquidity and wife may run away anytime; however, faithful they maybe.
4. Last but not the least... After every 5 year of business: celebrate a consolidation year. This may be true for marriages as well (i don't know as i am completing 4th year)...