AK Enterprises-Office Automation Products-started with Rs 26,000 seed capital
Many of us think that to start a small business, we would need good qualification and large seed capital. What if I would tell you that you can still be successful in starting a business, you don’t need any qualification and require small amount as seed capital. Anand from AK Enterprises has proved this to be true. Start up success story of AK Enterprises depicts on how you can start a company with a small seed capital of Rs 26,000 (USD < 500)
About Anand Kolwankar
Anand Kolwankar comes from a low middle class family. To support his family financially, he stopped his education after higher matriculation and started working. He worked in several small companies and large companies like Panasonic, Siemens etc. His 15 years of career with such companies has taught him about marketing tactics. He decided that if he has to start a business, he should choose marketing domain as he got vast experience in that area. He decided that he should start his business in Aug, 2009. However he does not have seed capital. So he decided to continue his job for one more month, so that he can get one month salary of Rs 26,000 which can be used as seed capital for his new business.
How he started AK Enterprises?
With the support of his wife who was doing a job, with seed capital of Rs 26,000, he started AK enterprises in Sep, 2009. He hired 12 employees to run the business. AK Enterprises offers wide range of office automation projects which provides automatic doors, biometric systems, burglar alarms, CCTV cameras, fire alarm, time attendance systems, safers, lockers, metal detectors and baggage scanners etc.
Since he had small seed capital of Rs 26,000, he decided to run his business from home. His networking has bought him more business. More than 50 customers were happy for their sales after service. After 6 months he felt that he should shift to formal office environment. He opened office in Borivali, Mumbai and started hiring engineers and marketing team.
What are the challenges faced?
Working capital was the main challenge. They need to pay timely payments to dealers who supplied all equipments. However customers took between 60 to 90 days time to make payments. Managing with dealers was a big challenge. Once there was a thought to shut down the business. But slowly they were able to manage the financial crunch.
What are the future plans of AK Enterprises?
Currently, AK Enterprises is having more than 20 employees who are engineers and marketing team. Company have made a turnover of Rs 50 Lakhs (around USD 85,000) up to Jun-2013. In this financial year, AK Enterprises expects a turnover of Rs 1.3 Crores with their expansion plans. They want to expand in pan-India. However they would like to go at little slower pace due to capital issues.
Let us wish AK Enterprises to achieve their targets and provide innovative services to the users.
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Team – Allbusinessideas.com