Priyank Kaushik- Business Story
There is an old quote, “Delhi has something for everyone”. It is a city which offers great opportunities for those who are willing to take risks. From the traders in Chandni Chowk to the startups in Hauz Khas, Delhi has a spirit which fires the belly of entrepreneurs.
Priyank Kaushik was one such hopeful who arrived in Delhi to pursue a dream. He wanted to clear the prestigious I.C.W.A. exams. Like many aspirants, he lodged in student quarters in Lakshmi Nagar. The frenzy of exams and the Herculean task that lay ahead ensured that he spent his day immersed in finance books. But a curious thing happens to all UPSC and CA aspirants living in Delhi. They gradually begin to enjoy the city. The endless possibilities, the energy and the company of other homesick aspirants help them build a community. Priyank too gradually began to wander beyond the confines of his lodgings and ventured into the streets of Delhi. He saw how shopkeepers earned a living, selling a variety of things in the bustling markets of the city.
As his workload for the exams increased he began to ask himself if he actually wanted to become an I.C.W.A. Seeing the vibrant economy of Delhi he knew that there were many more opportunities out there for him if he was open to possibilities. Priyank continued exploring markets and kept an eye on what people were selling. But no brilliant ideas came to his mind. He confided in a close friend and told him that he was thinking of starting a business.
His friend shared with him an idea that was simple and yet very much doable. The duo would team up and manufacture shoelaces. The idea seemed simple and easy to execute. Priyank took some time to think things through. He saw people walking around. All of them wore shoes and needed shoelaces. There was a market and there was demand.
Taking the Leap
Convinced that it was the right way forward, Priyank decided to start the new business with his friend. The duo decided to set up a shoelace manufacturing facility together. He had a tough conversation with his parents whereby he explained that he had no intention of working a job and business was his calling. Thankfully, his parents supported his idea and even agreed to contribute a certain amount of money to help him start his own business. With the help of family support, Priyank and his friend set up their manufacturing unit in Shastri Nagar. They rented a small room and set up 2 machines to start production. The yarn was purchased from the market. They converted the yarn into shoelaces and sold it to traders.
First challenges in running a business
The model was simple but then difficulties began to emerge. Finding clients who were willing to pay a good price was not easy. Since it was a new business, they did not have the kind of client base that older businesses had. Larger businesses could produce the shoelaces at a lower cost, as they had more machines and were more productive. Tough times lay ahead as they had already purchased a lot of raw material but could not find willing buyers for the finished product. The rent for the office needed to be paid as did the cost of operating the machinery. Priyank knew that quite a few hurdles lay ahead and so he did not lose heart. However, his friend got quite disheartened and became really anxious. Priyank tried his best to convince his friend to stay on but his efforts were to no avail. His friend was not willing to risk the rest of his career over a failed business and decided to take the extreme step of pulling out of the partnership.
Alone and quite confused about the way forward, Priyank was faced with a tough choice. He could carry on all by himself or start afresh. He did not want to let down his family so he decided to carry on by himself. Priyank knew that the key to sustaining his business was seeking out new clients so he decided to focus on business development. He visited new trade centers and markets and tried finding more people who would be interested in purchasing his product.
Expansion of Business
In order to successfully compete with established players in his industry, he decided to expand his business and buy some more machines. The task was arduous as most lenders were not willing to lend money to a business that was not very well- established. Instead of spending time on his business, he spent it in going to the offices of different banks. He had little idea that he would find a solution to his woes on social media.
Business Loan and Expansion
One fine afternoon while browsing through Facebook, Priyank came across a firm that offered collateral-free loans to small businesses. ‘ZipLoan’ had a user-friendly website and offered collateral-free business loans at a very attractive rate of interest. Priyank applied for the loan through the website and filled in all the necessary details. He was relieved to know that they only required basic details like Income Tax Returns and Annual Bank Statements. There was no need to visit their offices as the entire application process was online. The firm also promised the disbursal of funds within 3 business days.
Post Receiving The Business Loan:
After receiving the loan, Priyank cranked up his efforts. He went ahead and purchased new machinery. He shifted his office to Anand Parbat so that he could lease a larger factory. The new machines were set up and production ramped up. He hired multiple machine operators to manage the production in shifts. Being industrious by nature, Priyank was able to boost production and sign deals with multiple clients.
Priyank is a successful businessman today. He has a bustling factory where one can hear the whirring of machines. He is planning to expand by putting up more machines. The shoelaces are turning out in bales.
How Priyank Kaushik overcame challenges while running a business:
1. Persistence: Though it seemed really tough in the beginning, Priyank did not give up on his business. His partner left him midway and he had a difficult time finding new clients. In spite of these issues, he pushed through and made his dream a reality.
2. Resourcefulness: Priyank looked at new channels of getting a loan when going to the bank did not work for him. He found out about an NBFC that offered business loans through Facebook. He kept an open mind and solved the problem of generating funds even when his options seemed limited.
3. Growth Focused: Ambition and a desire for growth are essential for any businessman to succeed. Priyank was not content with running a small factory. He knew that expanding the business was the only way to succeed in a competitive market. This is why he sought funds to purchase new machines and expand his production.