His story, her story...what kind? Success stories. And then bring their success mantras in our lives. Good enough. It gives you messages.
But we tend to forget that we learn from failure rather than success. Doesn't mean you have to fail. Wise is the one, who learns from other's mistakes. Because you can't live long enough to do them all yourself. Failure stories gives you an idea to be successful.
For all those entrepreneurs, who wish to be successful, here is a story of Subiksha which failed, but can give you lessons to implement it in your business.
Business failure refers to a company when its operations ceases and it is unable to generate revenues. A situation when the business starts falling into a pit dug deep and it can find no way to come out.
Subhiksha was founded in 1997 by R. Subramaniam, an IIT-IIM graduate. It operated over 1600 outlets selling groceries, fruits, vegetables, medicines and mobile phones and positioned itself as value retail chain. It started with one store in Chennai and within a short span of time, it had over 1600 outlets that is by 2008. It concentrated on lowering the costs, catering to the customers near catchment areas and above all cater to both upper class and lower class.
But still it failed...why? What went wrong?
One, it went for inadequate expansion that too without sufficient funds in hand.
In order to cut the prices down, it operated on very slim or zero margins which resulted in cash outflow whereas inflows were almost nil.
When you open 1600 stores, one thing you need to ensure is the same level of quality service at all the stores. But it failed to ensure this.
Expanded business through debt of rupees 7500 million.
Poor inventory management resulted in defective inventory, breakages, lower fill days and pile up inventory.
In October 2008, it was so badly into debts that it didn't have enough funds to manage its operations.
Don't waste any good mistake. Learn from it. Also, never be afraid of one. It is better than faking perfections. After all failure doesn't mean the game is over, it just means try again with a new vigor and experience.
