Wednesday, June 16, 2010

I luv to have dishonest employees also wid honest ones..

hi guys,

So many times you have heard about morals; ethics, balla..balla … in business. Some “gyanchand” (people who gives free advice) might have told you that a business needs honest guys only .dishonest guys are like cancer to the business. But here I m presenting a different point of view that I learnt. Surprising but it is true that we need both kinds of guys when run a business. Any business does not ruin because there are dishonest people. "Business ruins only when you don’t know where and when the dishonesty is being carried out". strange it amy seems but I tell you an incident.
I was in TAFE and my dealer was Goyal saab. My first corporate management guru. I found out some discrepancy in the expenditure submitted by the sales persons. There were some fake items. I told them with excitement like I solved mystery of Bermuda triangle. He smiled and gave me more detailed fake expenditure that I could not found. He explained each fake item in the bills submitted and actual expending. I was just looking at me. He knew that what I wanted to say. That was “why???” he started..”chintan jii…their dishonesty doesn’t hurt my business till I m known to the frauds they are doing. ” he continues..”I know they add some fake items in their bills. But I also know that they do this because 2500 is not the amount , one can run his life with .. but I cannot offer them more salaries.. even if I give them more fake items will be there. These fake items give them job satisfaction and me outputs. And a way to control them. They know they are doing frauds so they are always under my obligation. They think that it is their extra income and I think that is part of their salary that I don’t give them officially. They are always under some fear of being caught. This helps me to pressurize them to give more output. When ever I see a sales man is not delivering results I give them hint that I may go for detail analysis of his expenditures on sales activities and eventually he comes under pressure of delivering results. So letting people commit frauds is also the way of control them... ”
Guys.. what I think is that dishonest people are like atomic energy. It can fatal blow to your business if uncontrolled but at the same time great control and better results if can be used in controlled manner. Believe me ..it is very hard to employ honest people. It is hard to predict human behavior in early stage of recognition. So unavoidable it is, to always get good people around but it is easy to get people and understand them and control them.
so.... Dishonest employees are also assets in a business J

Friday, June 11, 2010

Attitude..which keeps driving me....

hi ,
thnks to all friends who gave thier suggestions.. :)
i thought a lot also ..i m nt convienced 100 % yet... but an attitude which keeps me driving is.. .."chloo..ek baar ker ke dekhte hain..lets try it..n see .." . on this basis only i took this decision to gowith my concept....this concept is also new... like mine earlier one... haan isme kam se kam sbse bdaa drawback to pta hai... so decided to go wid the concept.. some assumption and facts i considered to take this decision are as follows....
1. both business starts early in the morning so nybdy going wid both has to have great skills and stamina to go wid both businesses.
2. they have to recruite a additional manpower (cost 2000-3000 minimum)but earning is restricted to 4000-6000 Rs./month only. so if they dont work with me they will have to satiesfy with less earning and more complicated procurement procedure.
3. in this business margins come from procurement volume. more the volume more will be operating margins. they will procure max 1-1.5 qt. per day and i will 10 qt. and more (three months down the line 1 tonne...and more..as time goes on) . their procurement will not increase the way mine will increase. so they will have less operating margins.
4. more over transportation charges will be again a consideration for them.
5.i m planning to tie up with dairys directly so when licence is given to nyone for booth ,it is given for both businesses. so if nybdy ditch us ,he will have to loose both businesses. this is the best solution of the problem but untill my business becomes a brand in the market it is nt possilble.
6.last but not least ... their attitude.. they are less literate and less motivate guys as i observed. they dont have a vision to explore business.
7.i know people will ditch me but only a few has this much guts to start this own thier own. wen an idea comes into market there is always possibility of replication. boss..."everyone has the idea but 1 out of thousands has guts to make it run"...

so ..going with the concept....wish me luck..

Sunday, June 6, 2010

hey guys,
i m facing problem with store (deposits and initial investment),demand and supply gap at initial level. so not able to procure large volumes from wholesale mandii therefore no gud margins.a new ideas has come to my mind for start retailing at greater depth and procuring high volumes so tht i can get more margins to work on. i have talked to "saras milk parlour" holders for working with me. they are ready to work under my banner. the volume tht can be sold is 1.5-2 qt. per day. and there are around 500 outlets in kota(imagine the business turn over and coverage !!!!).the advantages associated with this channel are- greater depth,coverage,turn over and co-branding. but there is risk with this is that if,in future,they start this own thier own , not under my banner, this channel will cannibalize my sales from other channels(retail stores). and anybody can do this without much investment.
the solutions for this problem i have thought are - 1. legal agreement 2. procurement volume and margin ratio. (as they can not compete with me as i my procurement will be in tonnes and thier willl be 1-2 qt.). 3. direct tie up with "saras dairy" for starting a new business divison. (but it can be done only when we start doing business at high level and our brand has a value in market.. so initial level it is hard to tieing up with them.)
so far conviencing fact is :
1. dairy business starts at 5 in the morning so anybody in this business will not interested in direct procurement from wholesale mandii which starts at 4 in the morning. thier milk business can affect. so they will be dependent on us only for supply.

rest plz suggest me. i m not yet convienced with the idea properly.