This title (and the following post) is somewhat inspired by Gaurav Mishra's experiment " The Marketer who went off consumption". Here Gaurav who was a hi-flying executive with TATA who earns 6/7 figure monthly salary, decides to go off consumption( avoiding unnecessarily expenses) and only spending for the basic necessities. The reason why he is doing is very well articulated by Gaurav himself, you can read more about this experiment on his blog "The Marketer who went off consumption", which he claims would soon become a book.
The reason I have decided to go off consumption is also experiment, but unlike him, it is a issue of survival, though I have a six figure income from my manufacturing business which I am in for the last 12 years, I have ran out of cash, or would soon run out, the reason being listed as below.
- My monthly EMI's are 80% of my income, thanks to credit card spending and costly personal loans. Well these personal loans were taken for the business to invest, but returns not high enough. Though business has been growing steadily @ 30% for past couple of years!!
- A stock (goods) loss/stolen worth 9 lac rupees, which the client might debit or will debit.
- More investments needed in lieu of the frequent power- cuts. (generators/machinery) for added capacity.
- No one who I think I can borrow money from, banks have already listed me "bad" in their credit ratings by now thankfully.
So considering the above factors I have decided to go off consumption. Reducing personal expenses is the first step to better finances. So some of the things I am considering is
- One of the addictions I have is mobile phones and electronics; I change my cell phone every 3 months, so now I have decided to stick to my Biz phone HTC Touch. I am wondering here who can lend me their Iphone?
- I have changed my car every 3 rd or 4th year, if I ever buy a car I would get a second hand one. I think a second hand car makes much more economic sense, but I use to think how could I use some else used car.
- Well being a single means I have to go dating, this is big problem because the big male ego comes in the way, but now I will have to ask my date to treat me or go Dutch.
- I love bikes, i have got 2, both are Indian make, but I feel buying your own bike which I ride about once a week, is too much of a expense, considering these are high end model, but to experience bikes, i don't mind bartering my bike with some other guy, The idea is to get the experience of the other bike without actually paying for it. It called "SHARING" I think.
- My maid has offered not to take salary for the time being. I am trying to think about convincing my man Friday to do the same, he earns enough money just washing cars in the morning, or get rid of help and do my own work.
- I have already started eating my meals in dirty places, which are cheap and serve good food , when I am travelling, only thing is they are downright filthy, you just have to keep your nose and your eyes shut.
- I always thought brands are good, but now I am considering not buying branded goods, but to look out for cheaper equally good alternative, your advise would be appreciated, namely clothes, accessories.
These are things I don't have much problem giving up, but there are something's which might be considered luxury which i find difficulty giving up, they are
- I am very sensitive to heat, I prefer to be in air-conditioning whenever I am indoors, and the car cannot be driven without an AC. Can an air-conditioning be thought as a necessity looking at the pollution and grime in Mumbai city??
- I have to have to have to have to change my cell phone every 3 month!!!!!
- I love wine!!!!
Well I guess why am I telling you all this,
- firstly this is a personal blog, I have a fundamental right to talk about myself here,
- I need to convey my mission statement, running a business, being an entrepreneur is wonderful and one of the most enriching experience of my life, next to childbirth only (just kidding), and if I don't manage my cash flow problems, I would be out of business, and I want to give my best shot before I lose, and ask for a second shot.
- I need your help, not monetary help for the time being, but if any of you have gone through similar experiences, faced cash flow problems in your business; do let me know about your experiences or anything you can share.
Finally I was wondering if this could be made in to a book?? Gaurav how do I get a book deal?