Tag Archives: business

Business Partners invited for Mobile Disco’s

I work from home, I have all my clients within 2 kms of the place from my home. In short, I hate travelling in Mumbai. I just cant imagine, taking a local train everyday to someplace called work which has bad toilets and canteen food. 

Now the idea is my social life is suffering as I dont meet anyone who doesnt stay a stone throw away, such is my morbid and diabolic fear of mumbai roads. I have read stories of people breaking their backs and hospitals bill running in lacs for using amchi mumbai roads.

A few years ago I was a Salsa star, going to places as far as lower parel for my Salsa fix, but I have given up that too, cause driving a few hours to dance is just too exorbitant for my austere lifestyle. So I have come with the idea of a Mobile dance club. 

Being a 80’s child, you know how much disco’s are important for us, cause our parents never gave us money to go to one. Now the night clubs in Mumbai are dying precisely for the same reason, it is no longer accessible for middle class blokes like me. So here is my plan,

if you cant go to the disco, we will get the disco to your doorstep

The plan is to buy a bus or mini van which can accomodate 25 to 40 adults (since we are law abiding citizens) , then plug it with state of art “BOSE” sound system and some mind shattering acoustics and amp, and you have a mobile disco ready. Ofcourse a bar is mandatory (have to check the legal view on the same). I think a few crores of investment and we are all set for MOBILE DISCO. You know all the works, wooden flooring, shimming disco balls, laser lights. The bus can a have rooftop bar and lounge where boring people can go and sit and sip while watching the mumbai nightlife! 

We will pick you from your house  and all your guests and you can party in our MOBILE DISCOTHEQUE . BOOK US NOW! 

Whats the point in having a having a bigger turnover and more profits?

I met one of my fathers friend today, he wanted me to work on a presentation pitch to investors, a business plan where he has chalked out the future strategy for growth. He plans to take his turnover from 40cr to 400cr.

I had met him in 2005, when he was making a turnover of 4cr, and he told me then

Manoj, I have plans of reaching this target of 40Cr in a few years

I didn’t believe him. After all I was in a similar industry like him, doing job works and manufacturing plastic moldings for various MNC’s. While my turnover was shrinking every year, I found his confidence a bit disturbing.

So eventually i closed down my business as I saw no point in working in an industry where profits margins were shrinking. I bought my piece of mind, and was ready for other challenges. I am very sure, I want to enter a segment where I want to be the market leader and innovator. I dont want to be in a  rat race, which I saw myself as losing and saved face by exiting such a business.

What I fail to understand is, why do people want to grow after they have reached their peak, he is already a market leader in this segment. Why not be content, and streamline things and go on a vacation?? He says the operational expenses are increasing and he has no alternative but to grow. He made it sound like it was a one way street.

He asked me what I was doing, I told him, I will keep on digging so one day I am bound to strike gold, he retorts back saying,

it shouldn’t be that once you reach the end of the rainbow, it might just turn out that the pot of gold is at the other end.

I was speechless!!

Its now well accepted rule, that if you do what you love, the probability of your success increases exponentially. So I have been thinking for a year now, what do i love to do? my answer is I love to connect people, I want to use technology to connect people to each other.Atleast whatever technology I can afford, I want to help people help themselves.

But i need to know more, I am very keen on leveraging my 13 years of experience of running a business, and I have lost, but I want to meet other people and see what made them succeed!!.

So I plan to use this suggestion of my good friend Soeb who suggested that I write about the dilemmas of second generation industrialists struggling between legacy and change, so I will do some interviews for research with second generations manufacturers/industrialists and see how they are charting out their growth path, and the big question i want answered is, why does one want to grow!!

The interviews would be published on my other blog at http://indus-tree.org/

 

Negotiations

I had a very important meeting with my client on 14th regarding price negotiation and timely help comes from a Chat friend, here is a chat transcript, and if it wasn’t for some advise from Abhisek I wouldn’t have been so confident, this conversation put me in the right perspective.

me: i have a important rate negotiation tomorrow with my client, i wish i had taken more advise from u guys

Abhishek: one has to

me: its a do or die situation

whether i will survive or not

kinds

Abhishek: why

what happened

me: oh the margins are so thin, that and managing so many things that one tends to neglect the bottom line

5:26 PM Abhishek: yeah

me: sometime your ego makes u spend more

Abhishek: one also gves too much of credit

i think

me: to produce more

Abhishek: thats the problem of most companies

to give credit to increase sales

and then move into working capital trouble

5:29 PM me: yeah, thats my story at a very micro level, i have actually aksed my client that i need to produce less, cause its more economically viable, as economies of scale,doesn t help for a small time businessman like me

5:30 PM Abhishek: why so

does ur margins come down with increased sales

5:31 PM me: we have slab rates in our purchase order, the fixed costs gets divided

Abhishek: k

me: and then it a game of only variable costs

Abhishek: k

me: if we miss something or add something we loose

Abhishek: k

u must be giving credit to the other company

5:35 PM Abhishek: what is the constarint of r business

me: having just one single client

Abhishek: i am a consultant by my degree

me: and other similar vendors into aggeeeing to do work dirt cheap

5:37 PM other vendors are competing agaist each other, and screwing up the rates firther

and debts i take so that i don’t run out of cash

5:39 PM Abhishek: ur debts must be for WC requirement na

me: yes,

5:40 PM Abhishek: am i correct

me: though my CA has promised this year he will find me a suitable long term loan

Abhishek: u are making accounting profit

but nt cash profit

am i correct

me: yes

Abhishek: i know

5:41 PM me: you are correct bang on

Abhishek: ur problem will not get solved by taking loans

me: i know, but i cant afford to run out of cash

Abhishek: u have to solve ur problem of cash requiremnt

of business

thats teh solution

taking loans is a temp solution

5:42 PM me: i have to increase my income right?

5:47 PM Abhishek: u got my point na

me: yes, i got your poitn

thanks

i am trying to work on that

Abhishek: yeah

me: i guess focussing does work

Abhishek: try to start

5:48 PM by solving ur problem

by focussing

on what ur constraints are their

and then elvating the constarints

me: u a goldratt fan?

5:49 PM Abhishek: i did a full course on it na

me: wow…really

Abhishek: i am an AEP expert on Operation & distribution

me: ah, gr8…do give me a call and lets meet up

Abhishek: ah sure

me: it would be nice

Abhishek: got to prepare fopr the meeting

Abhishek: i think u make a ppt

me: really

Abhishek: would be my sugestion

would seem to be profesional

me: i had done it half way,have to search now

good suggestion

Abhishek: and try to give solution to some 0f the client problem

me: timely help, ping me if you get any more ideas,would appreciate it

5:54 PM Abhishek: so that he can meet some of ur demands

me: ahh

Abhishek: sure

tc

bbye

me: thanks a ton,byee

Abhishek: nice taking to u

me: same here..tc

ciao!