Rental business: Big is not better

The idea behind the blog post is to explain why our goal at Tapprs is NOT to be the biggest rental house, but to be the most profitable one. To seek the most efficient use of every rupee in our business. That needs a different approach – we are going that route.

Note: It’s not a post against being big. Being big is a factor of effective capital allocation. It’s an added benefit. However, if you’re a poor allocator of capital, you’re not better off being big.

In the last 1 year, our strategy at Tapprs has been anything but aggressive.

In fact, we have consciously slowed down & expanded lesser than planned. It’s a fun business, though it has its share of negatives.

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Letters from a self-made merchant to his son – 2

This is the 2nd part of my notes from the book “Letters from a self-made merchant to his son”. You could read the first part here.

Graham on the art of selling:

A salesman has to talk, but before that he ought to know when to talk.

A real salesman is one-part talk and nine-parts judgment; and he uses the nine-parts of judgment to tell when to use the one-part of talk.”

Never badmouth competition, never give up your dignity. Yet, be humble enough to sell.

Never run down your competitor’s brand to them, and never let them run down yours. Don’t get on your knees for business, but don’t hold your nose so high in the air that an order can travel under it without your seeing it. You’ll meet a good many people on the road that you won’t like, but the house needs their business.”

3 steps to making it big in sales.

First—Send us Orders. Second—More Orders. Third—Big Orders.

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Letters from a self-made merchant to his son – 1

Recently, I casually picked up a free Kindle copy of “Letters from a Self-Made Merchant to His Son” when I was feeling bored. Boy, I kept it down only after I finished it.

It’s a brilliant book – witty, simple, wordly advice from a wealthy father (Howard Graham of Graham & co, a meat packing company) to his son Pierrepont. It covers nearly everything that a man goes through in his life – management, business, money, education, college, women, love, work, speculation, etc. Most of it is solid advice applicable even today.

I realized late that this was actually written by George Horace Lorimer and there never was any Howard Graham. Still, every page is realistic and on the money.

Must read!

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Money, banking & economy

Of late, I have been reading quite a bit on economics, inflation, banking, etc. Am listing out a few that I found useful.

1. The mystery of banking

A good resource I recently found also happens to be free (which makes us value it lesser – I have read only 1 book and few other, I just scraped through).  Those are the ones from the Ludwig Von Mises institute – which is a strong proponent of the Austrian school of economics.

Amongst a pile of free books there, I enjoyed reading Murray N Rothbald’s book – The mystery of banking. And I recommend it highly.

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Thick skin

People will say nice things about you (your startup).

People will say bad things about you.

At times, no one will ever say anything about you.

You will make mistakes.

Things will be up. Things will be down. (Actually, that’s better than things being average).

Just have a thick skin through your journey!

Paying for office space

At the end of every month, when its time to pay the office rent, I always think of Sameer (Morpheus).

And thank him silently in my mind!

In January, when we were looking for an office space, I was very enthusiastic about getting a nice posh space for ourselves. After all, we already had 6 figure revenues. Also, we would get 5 lakhs from the Morpheus fund.

“We deserve a good space”, I used to think – altruistically!

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