Tuesday, April 24, 2007

business advice from lucknow auto parts shop keeper

Customer
A customer who will buy your product or service. Identify him first.
This could be done through existing customer base at current employment. Develop a rapport with existing client base and win their trust so that they may be willing to carry forward their business with you even when you move out.
Getting a customer in open market will be really tough and will involve more challenges than understanding and gaining their trust under the employer umbrella.
Proper accounts
No lacunae left for the tax man to close or question your company.
Everything should be accounted for and recorded in detail. Every expense from rent to petrol charges.
Have enough capital to start with. Enough contains the capex and opex.
Plan also for expenditure to sustain current lifestyle. Monthly EMI’s, child education and other capital commitments.
Patience
Frustration will be easy to come by and plays spoil sport.
Stick around with current employer for about a year until you have gained trust of the customers.
Have the risk appetite. Be willing to loose money.
Success is not always guaranteed so be willing to experiment and do not stick to one mode of operation only.


All the above advice was obtained from an auto parts seller who has a shop in luknow. He sources his parts from Delhi and has an accountant who is a CA. He also told story of a failure in similar business who was still being offered GM position from reputed companies.
This meeting happened in train journey from Jhansi to Bangalore in which I had spent most of the day talking about general topic and only getting the above gem of wisdom on second day morning because the train was late by 7 hours.
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