First Encounter with Manufacturing Business

Thursday, December 24, 2009 0 comments

Can you tell me what was your first encounter with a manufacturing business? Try!!!!

May be

 

  • Sweets Shop ?
  • Tailor Shop ?
  • Custom made shoes?

 

Probably you encountered these when you were 4-5 yrs+. How about something even before that?

 

In my opinion, perfect example of a manufacturing unit is the kitchen Unit. Most of us have grown seeing our moms taking care of all the kitchen related activities. Lets See what all happens inside the kitchen

 

  • We get the raw vegetables, pulses (raw material)
  • You has oil, spices
  • Utensils, burner (machines)

You get the essence.

 

And then we say – women do not know business :). These housewives have been running the small business for so many centuries :).

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Art of Business

Friday, October 30, 2009 0 comments

I have been given a very sound advice by a very successful Businessman.

He says that if you want to succeed in your business, act as if you do not know anything. whenever someone starts talking to you about something, pretend as if you do not anything. Show eagerness to learn from him. Ask questions. Get as much knowledge as you can. (Of course you need to be judgmental when you can use this technique).

After sometime you would have learnt something. Now, assume that you knew about the topic. However your visitor didn't know about it. Once he leaves, one the two things will happen


  1. One you may have learnt something new
  2. Or you now wether the second person is knowledgeable or not. 
I find this technique is quite useful while dealing with vendors. ask questions about their product. If you have called 5 vendors for the same product, ask all of them. Even if you get to know about the product from vendor1, repeat your question with vendor 2/3/4 etc.

Once they leave - analyse.
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Definition of client

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I would define a client as an entity who is ready to use the service or product that you deal in. I will not link definition of the client with what he/she gives you in return. You may get something. You may not.

Yups…. you may not. Especially in this internet world, there are thousands of websites that get launched everyday. People come, try and go. All these people, who visit the site at least once, are prospective clients for me. They may use the service. They may or may not like it.

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Entrepreurial Ecosystem

Saturday, October 24, 2009 0 comments

I know that some will be really stumped by this question. After all- Ambanis, Mittal, Tata, NRN - all have come from India.

But the problem is that such people can be counted on fingers. Many articles/blogs have been written on this topic. Still I feel that nobody of us really touching the crux of the problem.

Am I an expert in this area? May be not, still i will try to pitch in with my 5 cents.

I will try to dive into the education system of India vis a vis Indian Parents.

Before that, here is a very good link on Entrepreneurship : http://www.getmotivation.com/goals/goals_grblairentrepreneur.html. I really like the portion where it says, "Entrepreneurship implies a willingness to risk challenging conventional wisdom and prevailing approaches."

If we look at our education system - this is exactly what we are lacking. Most of our education is towards imparting text book based education where challenging the conventional wisdom either does not happen or happens very randomly.

In India - failure is still considered bad (Well - it may be). Parents cant even think about seeing their wards failing. One has to trade in tried and tested waters. These days Computers/Software is hot and everybody has to follow in these footsteps. If someone has a good job, he/she should stick to the same job/profile. Resistance is faced from multiple directions if someone wants to do something which is not a norm.

If this is the ecosystem, how can we have more entrepreneurs? May be we need to talk about entrepreneurship from early in the education. Risk/Failure should be not be seen as something that will put one's career on a back burner. It should be seen as career enhancement. We need to talk about opportunities rather then failure.
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Businee Plan

Tuesday, October 6, 2009 0 comments

I was often asked to have a lengthy business plan and everything.


I have very little to say in this regard :

1. Just have couple of pages - what you want to do, how will you do it. Then add a section about finances. How much money you will need and from where will you get it. Most of the times - thats enough. Unless until Business Plan is for third parties, this is sufficient for you. I consider Business Plan as a tool for myself. I should be able to put on paper what I am going to do. Business idea should not be abstract.

2. Prepare an excel - for 6 months. Show starting money. Then show, for each of next 6 months, whats the planned outgo (Salary, rent, day to expense, commutation, phone, stationary). Also show, whats the expected income. It may be in negative - Dont worry. Most of the business do not start making profit from first month.

3. Be very careful about finances if you are shifting from job to business. In job, typically you dont care - where money is going. When its your business, you can be asked question - from where did you get money, how much you invested etc

4. Some people will do cash transactions. If cash transactions involve large amounts, you would need some help to maintain your books.

5. get some accounting software. in india - may be tally. take someones help to maintain the account. you should also learn it.


Remember : growing a company often takes different skills and talents than starting a company

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Starting a business and Frustration

When we start a new business, frustration doesn't happen because of no money. Most of the time it happens because of lack of work.


Typically someone starts on her/his own because of following reasons
  • Last option
  • To satisfy an itch
  • To be own boss
  • To prove some point
  • to try new waters
  • A friend convinces you to partner
More often then not, you have some money and an idea. you talk to your friends, relatives. Most of them discourage you and some will encourage. Thats your first test. You would definitely get frustrated while explaining to people, specially if you have had a wonderful job. Many a times, to-be-entrepreneurs die at this stage when they see so much criticism.

If you cross that hurdle, next step is to actually start. Find a place and start.

Then you need to find clients. Typically you would have already spoken to some people before you start. Some of them would have said yes. we will support you. JUST START :)

Parallelly you also start building your team. This is a very tricky part. whom to hire? expert or just helper?

So you have some clients. You start servicing them. there will be some hitches in what you had planed and what actually happens. may in terms of delivery, payments etc. you deliver. cool.

Now starts the most difficult part. You have already exhausted your contact list and now you need new clients. If you are a good salesman - good for you.

Rest of you, techies like me. This is a real challenge. You may have best product/service to offer. you still need to sell it. if you cant sell it, its of no use.



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7yvqmj38xz

Tuesday, September 29, 2009 0 comments

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What is an Entrepreneur?

Probably someone who take the ownership of anything that he/she is doing. Its little different from being the leader as i precieve. While all entrepreneurs should be good leaders, all good leaders would not be entrepreneurs.

Entrepreneurs need to (qulities common to leaders)
> be able to convince the team about the venture
> Able to drive the team
> more important - get The team

In addition, they need to have knowledge (or idea) about the
> Business model, which in turn requires some knowledge of economy
> Patience
> Ability to standup to most of the people who would generally say no

As I read somewhere, enterpreneurship is about employees, marketing, advertising, sales, communications, public relations, legal needs, government regulations, equipping the office, risk management, disaster planning, crisis management, insurance, technology, hardware, software, the internet, and the financial aspects of the company - bookkeeping, managing debt, taxes, and barter. Read the full story