Basics

Basics of Business.

I was 16. My family started a small venture in Pondicherry.

Procuring sewing machines from Delhi and selling directly to the small tailor shops.

Those days in 1978, the branded machines were very costly, and also the installment scheme was not available at those times. The small-time tailors shops were finding it difficult to go for out right purchase.

The model was very simple.

with the advance of Rs 50 ,sewing machine will be delivered.

Rest in installments .payment bi-weekly or monthly.

My assignments.

Collect the consignments from the parcel office.

Deliver the machines once the advance paid.

Collect the biweekly installment from them.

Maintain a register for collection and default payments

We made good progress and 20 machines sold.

I used to pedal my cycle and start collection every alternative week.

Only during festivals and marriage season collection were perfect and dull later.

One day my family told me in  a tough voice, we are doing business, you have to be tough and tell them we will seize the machines if the installments are not paid on time.

I miserably failed as a teenage boy and took it lightly. Later seniors jumped in.

Lesson Learned : Collection is one of the key areas  for not only the capital recovery but also revenue generations.