1. Strategic management
Marwari business firms are known for their careful watch on money. They believe in strategic management of investment funds by moving them to where they are most productive in the long term.
According to Thomas A Tim berg’s book, “The Marwaris: From Jagath Seth to the Birlas”, there are seven secrets of Marwari businessmen which are still valid “and perhaps will remain so”.
2. Delegate and monitor
To be a successful businessman you have to learn how to delegate. Otherwise, the span of economic activity you engage in will be limited.
Furthermore, they also know when to intervene, fully aware that a decision to intervene is costly.
3. Own your style and system
Marwari businesses have always ensured transition from business founders to inheritors accompanied by their own style and system in order to sustain the legacy.
4. Centralized financial monitoring
Marwaris are the keen watchdog of their financial investments and play a safe game. They keep close financial monitoring of the enterprises in which they have a share.
5. Drive to expand
A key characteristic of the Marwari businessman is the drive to expand the business. They focus more on execution and implementation rather than just limiting themselves to said mission statements.
6. Maintain adequate corporate culture
It is the most important aspect to maintain the corporate culture that befits its market and times.
An adequate corporate culture is one that demands financial incentives and inspiring loyalty, especially of competent managers.
7. Don’t get blown away by fads
Business is a long term commitment. Marwaris’ long term perspective prevents them from getting blown away by fads. For this, they consider that the responsibility of the managers has to be more tentative and experimental in his approach.
8. Incorporate new developments and opportunities
Some of the world’s oldest family businesses have had some very successful ventures and a lot of failed because of missed opportunities.
So always keep incorporating new developments and create opportunities as Marwaris do.
9. Focus on building social capital and brand
Marwaris always focus on their costumers by establishing a trustworthy brand and building social capital.
10. Parsimony and frugality
In terms of their traits, Marwaris are innately parsimonious and focus on adding more to their wealth rather than spending it.