Don't Start a Business if you don't have Money or Knowledge

Every where you can find articles or videos like how to start a business.

Here I'm going to tell what else you must not do to start a business.

Allmost every one of us are interested in doing business and make a lot of money.

Do you know how to do business?

If No, then don't ever start without proper knowledge.

A store front with glass door

If you start a business without knowledge even if you have money, you will also will become a big failure that may lead to depression, money problem etc.

I also started my first business without knowledge.

How I Started

I'll tell you what I did.

As a part of starting my business, first thing I did was I rent a big shop.

So this is my shop.

inside a shop

Means service center.

I told you in my earlier posts that, I was an Electronics Technician by profession.

So at almost all electroncs repair shop, there will be a lot of garbages.

Some people bring their appliances to my shop.

After diagnosing that and when I tell them the charge to repair that.

They will say ok

I'll call you and then only you start the work.

And they never called me back.

When I try to call them they will say "Ok we will get back to you soon".But, it never happened.

They just don't even attend my call while I call them back.

So as you can see above I'm standing in between the total waste inside my shop.

A mechanic job is not a bad profession.

I think after covid, This is 2021 April, So you know the covid problem. So, after covid thing are gone more than worse.

They don'd spend money for entertainment purpose.

They are in I think like they are going through a lot of anxiety or agoney or their mind are a sort of scared I think.

They just started rejecting all those entertainment purposes here in kerala.

So even though I'm a technician, I too need to live.

I need to feed my kids, my family.

So for today I decided to sell all those garbages that is in my shop and make some money.

Before telling about that I want to tell you why I rent such a big shop.

Why Such a big Shop

This shop is about 300 Square foot.

I did'nt did this in thought of like there will be hundreds of people comming to me for services and I need to stock alot of spares etc.

Not for that.

Actually I had a business idea.

A business model.

That project failed, so that is the reason I decided to quit this shop.

So while telling about my dream, my business plan.

I was an audiophile.

I like listening to music.

Not only listeng, I like or I want to hear the song or watch a movie in it real original audio level.

As it was in a theater or as that song was recorded.

So after listening and observing the sounds for years, I became an expert in audio frequencies, decibals, aquastics etc.

Also I started realising that there are no such audio appliances like AVR, Home Cinema etc, available for normal people out there.

Normal guys means they are not rich people.

They are people who lead a normal life with monthly or daily payment.

They cannot afford such expensive costly audio setups.

My business Model

So in my mind I got an idea that why don't I make some type of audio appliances that are not such costly and that too high efficient.

That made me think about a type of business model.

My plan was to create such a brand.

That brand must be that much efficient and excellent perfomance that will be produce by a branded audio device.

So I want to start that as a business.

The last Foolish thing in my life

That was one of the foolish idea I've done for the last time.

The foolish thing was You must not start a business without knowing how to do a business.

Another problem was that I had No money to start a business.

My type of business needs production, stock, workers etc.

So for that I was in need of money.

Money means while I estimated, I need 800,000 (eight lakh) indian rupees to start this business.

Why that much amount?

I need to stock some woofer or speakers, space to make amplifiers and encloasures etc.

That's why I took this shop.

My aim was to make certain types of high quality audio equipments at a fair price and supply them in a new Brand.

The room advance itself was 30,000 Rupees.

That I used to borrow from one of my friend.

I totaly borrowed 50,000 Rupees from him and gave the advance.

The rest I used to buy some lightings and electrical spares.

So that was finished.

So now I need eight lakh rupees.

Where to go?

How to get a loan to start a business

For such a big amount, I only have only one option.
I decided to go for a loan.

In india there is a loan type to start new business.

That is mudhra loan.

So I got thrilled.

Because for every new business ideas, if they are innovative or if there is any chance to success, they have the eligibility to get the loan.

So I just went to bank and talked to the manager.

After convincing the manager he said OK.

You provide all the documents and we'll verify and if you are eligible bank will give you the money.

So for setting up the documents, it was risky for me.

So I searched and found an agency who will provide the necessary documnts to get the loan approved.

Loan Agency

As I told you I've already exhaused that 50,000 rupees.

Now I've to pay the agency also.

The agency charged 1% GST for the loan amount.

So the amount must be 8,000 for 8,00,000.

Again I borrowed 10,000 rupees from another friend and paid the agency.

After some days I got my documents for the bank to get the loan approved.

With the documents one was missing and that was the quotation.

Quotaion menas after the loan is approved, the bank will not give the money to us.

Only if I purchased any goods on behalf of the company or person who gave me the quotaion, the bank will directly pay them.

So as I told earlier that this was a covid season.

The date while this was to be done is April 14th 2021.

So that's it.

The man who gave me the quotaion has gone quarantine with the whole family for 15 days.

That became a problem.

You know all these thing took almost 4 months after renting this shop.

And I did'nt paid a single penny as rent for the past 4 months.

I was in a mindset that after getting the loan amount, I can pay the full rent.

That created the real problem.

The building owner suddenly appeared and he said that he also was on a pending EMI due.

So I must pay the total balance rent within 10 days or if you cannot you quit.

He said if I quit, there are other people reaching him in search of such rooms.

So he can roll over that money for his due.

I forgot to say something that the monthly rent of my shop was 8,000 rupees.

So 8,000 for 4 months is 32,000.

That was great.

How can I pay that.

I reached as much as people I can to get atleast 20,000 rupees.

But, as this is a covid season, no one helped me.

And after struggling for a week, I realised that I lost everything and Now I'm in almost 60,000 rupees debt with those people who helped me before.

So the reality is I became debt of nobody's reason.

I went to those people and asked them for some time to pay that money back.

So after reading this much who is the one who actually created the problem?

I'm a wise person know?

So as per my concern, the building owner who suddenly came a asked me to settle that balance rent was the real problem.

But, Now I realize that all those situation were my own mistakes.

I'll tell you about all such mistakes in future posts.

Now I should find a way to overcome that.

But, The situation is worse.

Today the date is may 17th 2021.

Critical lockdown.

At the end

So all of us have to wait for something really to happen.

Actually I started a website, a youtube channel and an amazon afiliatiion a year ago.

That helped me a lot.

Just after such a financial desaster, the next month I got paid from youtube.

The first payment was at April 21st, that was $122.
That is almost 8,000 rupees.

I did'nt invested any money into my youtube channel.

I did't invested any thing for my amazon business.

Only investment was the domain I purchased for my website.

This may 21st I have a youtube and a website payment.

Total of $235 from google adsense.

As a beginner, that's a fair amount.

It will go high as much I work more.

So that's it.

With this experience I learned how we must not start a business.

Even if you are starting a small business remember this, my real life story.

So how should we start a business.

How to invest in your business for the first time.

How to make money to start a new business.

We'll talk about that in the future posts.

Also comment below what I was to do to start that business.

That will help others who visit here while they start their own business.

Can a normal person make money?