In the summer of 2017, as my undergraduate years unfolded, the entrepreneurial spirit within me yearned for expression. A chance meeting with the VP of Marketing & Sales for an automobile spare parts manufacturer in Mumbai sparked the inception of my venture. Thus began my journey as the distributor of automobile body parts for the western Maharashtra region, a decision that would shape the next few years of my life. 

 

Journey: 

1. Research and Planning (2017): 

   1. After a month of research and mentorship from my father, I connected with industry experts and started my journey as a distributor. 

   2. Extensive groundwork involved testing demand, understanding mechanics' challenges, and analyzing costs by consulting retailers. 

2. Strategic Partnerships (Late 2017):

   1.  After joining the automobile retailers association, I acquired a comprehensive list of retailers in our districts. 

   2. Boldly investing 4 to 5 lakh in inventory allowed me to meet demands effectively and capitalize on sales opportunities. 

3. Aggressive Marketing and Expansion (2018): 

   1. With a stocked inventory, I intensified marketing efforts and expanded into multiple districts, reaching 50k to 60k in monthly sales. 

   2. Plateaued growth led to diversification into new product lines – headlights, rubber parts, and AC pulleys. 

4. Product Diversification (Late 2018): 

   1. Collaborated with three manufacturers, obtaining a common supplier in Nashik, reducing dependency on a single supplier. 

   2. Expanded product range led to increased customer base and higher monthly revenues of 2 to 2.5 lac by 2019. 

5. Challenges and Setbacks (2020): 

        1. The onset of 2020 brought a decline in sales due to supply issues and a drop in                 demand. 

        2. By March, sales plummeted to 1.25 lac per month, exacerbated by the COVID-19             pandemic. 

6. The Hard Decision (2020): 

        1. Sales hit rock bottom by October 2020, making it financially untenable to continue             the venture. 

        2. Forced to make the difficult decision to shut down the business, particularly                       challenging as it had become a significant part of my life. 

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Mistakes: 

 

1. Bulk Investment Impact (Early 2018): Investing heavily in inventory at the start affected cash flow for nearly a year. 

2. High Rent Expense (Mid-2018): Renting a shop with a high monthly cost bled cash, impacting profitability. 

3.Indirect Customer Approach (Throughout): Not expanding directly to customers kept profit margins thin, hindering revenue growth. 

4. Part-Time Involvement (Throughout): Inability to commit full-time impacted revenue and hindered potential business growth. 

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Lessons Learned: 

1. Strategic Cash Flow Management: Balancing inventory investments to maintain steady cash flow is crucial for sustained growth. 

2. Prudent Location Decisions: Choosing a business location with reasonable rent can significantly impact profitability. 

3. Direct Customer Engagement: Establishing direct relationships with customers can enhance margins and foster business growth. 

4. Full-Time Commitment: Devoting sufficient time and effort to the venture is essential for long-term success.