5 K Challenge

Introduction

Before going to start a business one should have overall concept and marketing knowledge. Business man should have a plan and idea about the product and strategy to make it successful. Trade needs lot of effort and preparation. They have to think and find the right way and opportunity to sell the products proprietor deal in. Then only it is possible to get success in a venture.

Description

Here in this trade both partners discussed about selling and found niche and bought sweets from Gokak. Their core commodity was karadant along with ladu and cashew nuts. After getting those commodities they approached many shops and bakeries in Hubli and Dharwad. Except for one grocery shop none purchased any goods. Later went to apartments and houses. There I and Jagadeesh got more positive response for some time and were able to sell few of those products. However quantity was 4 Kg and many products remained unsold. Hence business partners changed the strategy as soon as they thought it would not work. Later they visited public places like parks, Glass House, Unkal Lake and went to offices, college campuses, and functions as well.

When one of the partner went to Dharwad it was a good time as he took the opportunity where a mela was organized at the More super market. They stood in front of that shop for a while and moving around so that they can attract customers who were coming out of the shop after shopping. He spoke to them nicely and as a result huge quantity of items was sold out in a short time. This was effective strategy which caused more turn over. The remaining products were sold in the hostel itself. Thus they struggled to sell all items. Meanwhile both partners came across some difficult situations and negative responses. Though they could sell almost all items and finally got profit and thus managed the task successfully.

Learning

In this business both the partners have learnt many things like identifying the niche, risk taking, selling goods through convincing the customers. In the open market they have to give up shyness, otherwise goods won’t sell and at the same time have the patience to move around.
Customers treat them as sales men and most of the times do not buy as they won’t believe the quality and asks for lesser price that we can’t sell.

Details of business
Items Quantity Investment Turnover Gross profit Expenditure Net profit Leftover
Karadant 15 Kg 2400 2700 300 160 140
Ladu 10 Kg 1000 1050 50 50 1.25 Kg
Cashewnut 7 Kg 1960 2100 140 32 108
Total 5360 5850 490 192 298 150

In this venture their investment was exceeded the amount as the price of karadant was hiked by 10 rupees at the time of purchase and they paid carriage charges extra.