Entrepreneurship Essay

Founder Of The Company The company was called KYK Automotive Inc. , and was started by m a nonher(prenominal) fucker Yadav, the sole accepter of the strain. The line of reasoning was started up as a partnership back in March of 1993, with the deuce-ace partners being beam of light Yadav, Ramesh Kapil, and surface-to-air missile Kapil. They plan of the name KYK with the initials of all third last names. all(prenominal)(prenominal) three were previously working as railroad carmobile mechanicals, with the ii brothers, Ramesh and surface-to-air missile working at wiz place, and light beam was working at a Petro Canada station, all in downtown Toronto.The three bring greetn each other since they were all enrolled in the army to narrowher back in their homeland of India, and remained close friends ever since. Upon advance to Canada, they each found pick jobs as car mechanics, and helped turn up one a nonher in determination better positions or better paying jobs. Once they were all colonised down, they would always get together on the weekends and discuss intimately further opportunities that they could go into. Their initial thoughts were to open up a mechanic discover, with them three being the mechanics.It was through these small talks that the idea of opening up an Auto Parts retail investment trust came about The Idea The three friends would always meet up on the weekends to relax and discuss about further opportunities for the future that would lead them to better increases and greater success. They thought hard about opening up a mechanic shop and having them three being the only mechanics their, which almost passed through. They had found a spot and were get their capital together when one day, putz suggested that he would be inte ataraxised in something else.He deficiencyed to go a step ahead and he had always noticed that the people who delivered the part were always so busy, and had pretty much a work soak, where they were denying hot clients because they near couldnt handle all the workload. The mechanic shop would deport been the easier route for the three, that they loved challenges and wanted to try something modern as well, something a little less physically demanding, and something that would engage them to use their brains a little more.When shaft suggested the idea, the other two were a bit hesitating because it was something they werent familiar with, and the idea of putting all their money into something that wasnt 100% clear to them sounded a bit risky. Peter suggested though that they did know all the basics of the disdain since they were mechanics themselves, and that all they really unavoidable to do was to learn about the software to look up diametric split that mechanic shops involve, and that they would slowly start up and learn the rest of the business as they move on.He persuaded them on the fact that the business had a lot of demand and very few suppliers and since t hey already have three experienced people in the trade, they could start up the business right away. An advantage that these three had was the ability to troubleshoot as well for their customers, for instance, if the mechanic had trouble identifying what could be wrong with a customers car or what the part is called that he/she required, these three with their background and knowledge of the industry, could take care them in finding the exact part.The railcar move stores at that beat quantify were unable to do this which was thought to be an excellent accession to their possible new venture, and would make their company stand out. With all these factors into play, they started to thrusting deeper into it and came up with an excellent choice and business decision when they intractable the muddle. The location During the time that they were all decision making on a location, and since they were all newlyweds and had family coming from their homelands, they needed to move o ut of the city and to a location in the suburbs, which was something they had decided before thinking of the new business. afterwards months of searching for the outflank location that would bring in the most business, they found a location in the Mississauga/Brampton area, where there was a shortage of separate stores yet an overload of mechanic shops. This would be their best opportunity to get in on the profits of the auto parts industry. The major breakthrough for them in peculiar(prenominal) was that in that time, there were many immigrants coming from their homeland of India, and a legal age of them had settled down in the Mississauga/Brampton area, and a majority of them were mechanics and had undecided up businesses in that area.This was a large part in the deciding factor of locations because what they had realized was that these mechanics were ordering from shops that barely understood what they were public lecture about, and half their parts would be delivered wrong with no fault of their own or the parts store, it just a communication problem. With Peter and the two brothers opening their shop near here, they could easily take all of this business away from other parts stores for the simple fact that they all treat the same language, are from the same place back home, and their would be no communication problems for either of them.This would save time for the mechanics because the amount of awry(p) parts they receive would decrease and in turn, would increase profits for the new business. The location ended up being 1767 Drew Road, which is in an industrial area in Mississauga, and was close to many mechanic shops within a 5km radius. Day-To-Day Operations They had opened the store on March 1, 1993, with just the three of the partners working there. They had Peter as a counterperson, who would be answering calls and providing legal injurys to customers, billing the customers and locating the parts.They had Ramesh delivering the parts to al l the customers and marketing their business as he was on the road, kind of like a gross bargainsman. Then they had Sam aid out at the store, with all the walk in customers they had, along with order picking the parts for the different garages as Peter needed some help as well. The business started off with a extend right from the get go, and within a couple of months, they had realized that they would require more employees to be able to observe up with all the demand, and to keep their customers happy.They had learned that the number one factor in deciding auto parts suppliers to mitt with for mechanic shops was speed and accuracy of parts, and that the price of the parts was subsequently that. By knowing this, they had brought in two new legal transfer drivers so that they could get the parts out quicker to their customers, and that if they had new customers, they would be able to handle the supernumerary workload. They now had all three of the partners intervention the business at the store, and if need be, Ramesh would do some deliveries during the peak hours.Peter was doing most of the work inside the shop however, for example, he would be the one to answer most of the calls, he would be ordering most of the parts from various locations, and he would be stocking and picking parts as well. This didnt sit too well with the other two partners and this is where the partnership would breakdown. The exterminate of The Partnership As Peter started handling most of the business and the other two were being treated as employees rather than partners, they felt the agitate to let their feelings be known since they all had an equal say in the company.After a few discussions, the two brothers decided that they did not want to be part of this business anymore, and wanted out. They did not leave on a sour note however, and waited until Peter could find employees to replace them, and after a couple of months, the other two partners had left the partnership a nd move onto another venture. Peter now had sole ownership of the business from December, 1994. He had with him 2 delivery drivers, and one person assisting him inside the shop, answering calls and helping pick orders and stock shelves.Business was still going great for him, except he had to narrow his customers down to locations within a 5km radius because he didnt want to expand anymore, and his main clients were within that area so his business wouldnt suffer regardless. Business After The Partnership Peter continued to run the business successfully, and kept all of his customers happy. He do one significant change to the business which was to stop all sales to the general public. He realized that he was losing some trust in his mechanic shops because they were losing out on some profits.The way the business worked was for example, Peter would supply shop X with a part at a cost of $15. The shop would then charge the customer $30 for that part, and an additional rate for insta llation. Now when Peter would sell directly to the public for $15, the shops were losing out on the additional profit and when they realized Peter was selling it to them and victorious away from their business, they felt betrayed and did not want to deal with Peter anymore.After a few complaints, Peter realized that the best business decision would be to keep the mechanic shops happy because they were his main repeat customers, not the occasional walk-in customers. This also gave him some more free time to handle other business operations so it worked out tied(p) better for him. After a couple of years, he decided he wanted to add something to the business. He realized that he had been receiving many calls about tires, especially throughout the winter months. He met up with a topical anesthetic tire shop that had bought few parts from him and struck a deal for some winter tires.He would certain things like this for seasonal parts and make up a small flyer to show his customers wh at he was adding to his inventory at different times and they would sell off very quickly. The End of The Business The business had been running extremely well up until 2006, where the profit levels were decreasing, not by a huge amount but a noticeable amount, due to all the competition now in the area. When the business started, there was only one other parts store in the 5km radius, and in 2006, there were 6, which easily explains why profit levels were decreasing. completely the shops had their own suppliers, and there were price wars going on with all the auto parts stores. Peter stood firm on his stance that he would not participate in these price wars, and the price he had was the price you would get the part for. The business kept going with a decent profit up until 2008, and then he decided that it was not worth staying in business as the amount of stores opening up was still increasing, and the price for parts was decreasing. In November 2008, he decided to close the shop. New OpportunitiesPeter had thought about retiring and took some time off from work, but after only a couple of months off, he had started on getting back into the parts business. He found an existing business for sale back in downtown, Toronto. The building is attached to a car automobile trunk shop, which is coincidentally owned by Sam Kapil, his former partner from KYK. He has been going in to the parts store, which is called Khapco, and seeing how the business is doing and if he would be interested in it, and so far he hasnt decided on anything, but he tells me hes not through working yet.