Every business adapts to change. Businesses without the adaptive strain in their DNA die. Adaptability is the key to survival. A classic all-time great example is WIPRO. When rampant tax evasion in the market by peers elbowed them out of the vegetable oil market, they didn’t blame the system. Nor did they shut down or go bust. They reinvented themselves into what they are now. Even now, they may well be reinventing themselves. Or actively exploring prospects of moving beyond IT services.
What happens when a firm is not viable as a business? Are taxes really the reason? Especially when they are uniform throughout India? Surely, externalising business weaknesses is not good for survival. Addressing them actively surely is. GST is all about adapting. The centre, states, big businesses, small businesses, tiny businesses, the self-employed, service businesses need to adapt. The list of agents in this churn can be much longer. But, this is a time of churn.
Investing should now recognise survivorship and bet on the right businesses. Everybody may not end up a winner in GST. Keeping away from the losers is just as important as sticking to the winners.
“In investing, what is comfortable is rarely profitable.” – Robert Arnott
