Self-employment
Keep the cash in your pocketStarting a small business is risky. Many new entrepreneurs go broke because too much money goes out before enough comes in. ROGER PIERCE |
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 [ 2006-08-16 ] |
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Bay of Fundy
"As middlemen, we don't have to pay for anything we sell," entrepreneur Munir Talib says.
Talib and his partner, Kabir Narang, own two consignment-based companies, called Other Things (www.otherthings.ca) and Snackbytes (a href="http://www.snackbytes.ca" class=snackbytesstandardb" target=_blank">www.snackbytes.ca). Both companies place inventory items in retail stores and earn revenue as commissions when products sell.
Other Things sources and places fashionable home decor items from around the world in Canadian retail stores. The company's products include unique rugs, mirrors and lamps.
Snackbytes places high-quality and healthy snacks inside leading department stores including Canadian retail giant The Bay.
With more than 30 products distributed in stores across the country, one would expect these partners to carry a huge product inventory. Instead, they operate on consignment, which means their suppliers pay for inventory and the partners collect a commission.
"We started our business four years ago and invested less than $1,000 each," Talib says. "Because we don't buy the products we carry, we face very little risk. We get paid every two weeks by our partner retailers when items move."
It's a brilliant business model that allows these entrepreneurs to focus on distribution without worrying about inventory costs. "All of the risk is carried by our product suppliers," Narang says. "It's our job to get products into the stores and work with our customers."
With long and impressive entrepreneurial backgrounds, both partners also come from business families in India. "I guess you could say business was in our blood," Talib says with a chuckle.
In fact, their strong connections in India might just lead to their next business. "A few of our clients want to tap into the Indian market," Narang says. "We have excellent relationships in that country so we'll likely help them out. Of course, we'll again act as middlemen and let others carry the costs."
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