Decision making in streets to run the business.
Let’s talk about, India. Activities that happen around
us, newspaper arrives at home and coconut water comes, flower delivery but upon
the street, etc. This infrastructure and framework, which pretty much runs our life,
on a daily basis. This is also a form of business. But we label them as
marginalized. We do injustice with them, by labeling them as marginalized,
informal industries. We consider those company that are listed in Sensex nifty
the unicorns and the branded organizations. Our country 50% of GDP comes from
unorganized industries. The unorganized industry, employs about 90% of our
workforce. It means it employs 90% of our workforce. They even perform better
than tier one companies. You must have seen book stores, food counters. You can
actually measure that per square footage revenue and return of revenue, that
happens in a payment. Exceed by several multiplies the return of investment,
that happens in big malls, with the chrome and glass and the branded stores. The
payment actually delivers, a much better rate of return for every rupee, that
is invested in the business over there.
In street lights, or the other places. We see
people selling flowers, car cleaners, window covers, balloons, etc. They sell products
in very less margin. For example, boy selling balloon to you for 10 rupees. And it cost him 6 rupees to acquire that, and he’s
got the 40% margin. He can even give you 50% of discount on spot, if he likes
your attitude.
And if you try
to get even a 5% discount, in an organized business, if you try to implement a
5% discount. That decision will travel all the way up to the, CX and in some
cases board level. Then come down, by the time decision come down there,
opportunity already been lost.
This is example tells us, the decision
taking in formal industries is way far longer than the unorganized industries.
These informal industries, switch their work routines so dynamically and
drastically. Which is rigid for an organized industry.
In unorganized industry, the business holder switches his business according to the demand, season, or festival. They setup there work at quick pace, because decision have not to travel way far. And the understand the market pretty well. These small lessons can teach us, work can be start from the low margin and with the quick decision making.
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