- Trust vendors only after securing collateral and tight contracts to avoid losses
- Do not expect punctuality in Indian markets as it may cause operational issues
- Enter the domestic market early and focus on client quality rather than exports alone
An Indian entrepreneur has gone viral on social media after he shared a list of mistakes to avoid while setting up a manufacturing business in the country. Prakash Dadlani, a manufacturer and exporter of home appliances, took to X (formerly Twitter) to state that it was not easy to run a factory in India and listed the lessons he had learned so that up-and-coming entrepreneurs may not face the same bottlenecks.
"Running a factory in Bharat is not easy. Here are my Top 5 Mistakes that you must avoid (if you are starting out)," wrote Mr Dadlani.
Here are the five mistakes to avoid, listed by Mr Dadlani:
- Trusting vendors too early:
Mr Dadlani highlighted that rookie factory owners should never hand any advance to vendors without collateral. The contracts should be tight to avoid loss of trust and money.
- Expecting punctuality:
In another practical advice, Mr Dadlani pointed out that the Indian market is not known for its punctuality and expecting the same would create problems. "Don't fight the culture," he said.
- Delaying entry into the domestic market:
"We stuck to exports too long, fearing India's payment & professionalism issues. When we finally entered, we realised," Mr Dadlani said, adding that the quality of clients should be the focus.
- Outsourcing too much, too long:
The core work should not be outsourced as Mr Dadlani found out the hard way. He outsourced motors and moulding, but the costs ballooned and quality slipped.
- Not preparing for the unthinkable:
Mr Dadlani revealed that his factory burned down just before Diwali in 2021. While most would have tapped out, his company got stuck in and managed to clear the vendors, and within months, the factory was back to full health.
"Disaster-proof your business. Insurance, redundancy, and above all integrity. When everything burns, trust is the only capital left," he added.
See the viral post here:
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'Tough but worthwhile'
As the post went viral, garnering nearly 80,000 views, social media users lauded Mr Dadlani for his insight.
"Tough but worthwhile because it creates jobs for Indians who need monetary support the most," said one user, while another added: "Thank you for sharing this. It's the most valued thread to me. It's gold!!"
A third commented: "Manufacturing entrepreneurs inspire me so much but it's so scary when it comes to risk in this field."
A fourth said: "Great advice. Have been thinking of starting a chemical factory in India for domestic cleaners and commercial cleaning."
Mr Dadlani signed off, saying that if a person could run a factory in India, they could easily run one anywhere else in the world.
