How Memon, Delhiwala, Chinioti Entrepreneurs Create New Ventures
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How Memon, Delhiwala, Chinioti Entrepreneurs Create New Ventures

Following steps are taken from my paper 'How Memon, Delhi Saudagaran and Chinioti Entrepreneurs Create New Ventures?' to be published in Oct 2019 issue of Pakistan Business Review. Complete paper can be read on my academia or research gate profile.

Step 1: Evaluate yourself, ask what I know, whom I know, who am I, what I have, and what are my passions. Identify means, and do not go beyond them. Know the bird in hand. The knowledge, capital, family workforce, infrastructure support, the connections with stakeholders in the network, goodwill of the family are all resources. Gradually expand by investing the profits. Do not take excessive risks as they increase the chances of failure. Experimentation can be done to test new ideas by leveraging the resources available in the support network.

Step 2: Seek advice from the elders regarding the opportunities which exists in the domain of one’s expertise. Knowing the customer in advance reduces the risk of investment significantly. Often opportunities emerge in the process of building a business, sometime in the form of accidents or unprecedented events.

Step 3: Get experience as an apprentice or an employee in someone else’s business; market experience can also be gained through brokerage which would also generate returns. Knowledge about the product, production process, competition, and customer is fundamental before starting a business. Working in a smaller business is more beneficial as it is possible to learn about the entire supply chain which is not visible in large scale enterprise.

Step 4: Do not invest all the savings or the money borrowed from father or someone else, have something as a backup in case the business collapse. Work out the affordable loss and invest only that amount. Keep the cost low and work with your own hand as much as possible.

Step 5: Build credibility with the suppliers and goodwill with the customers. Market reputation is one of the important assets an entrepreneur possesses. Commitment to the customer must be honored at all cost. Timely payments to the supplier build trust, and the supplier comes forward with easier credit terms.

Step 6: Expansion is done within the means. Banks are avoided. Partnership with trustworthy community members, friend or close relatives is sought. Customer is sought from the network of family and community. Employees are hired using community references. A family like atmosphere is recommended to keep the employees loyal and motivated. The same criterion of meritocracy is applied for all participating members including the immediate family, relatives, and employees from within and outside the community.

The figure above summarize the factors contributing in a venture initiated by Memon, Delhiwala and Chinioti Entrepreneurs

Mujeeb Alam

General Manager Quality | Quality Assurance & Control | Home Textiles & Apparel | Production | Product Development | Textile Standards & Legislation | Internal & External Audits | Inspections

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