Vegetables are a basic need for humans in their daily life. People usually eat vegetables twice a day, without vegetables their diet is not complete. Because vegetables fulfill the need for vitamins and minerals in the human body.
# How to think : Vegetable Business Model
Everyone wants to save time because time is the most valuable thing in the world, more than money. Just imagine if we somehow create a system where everyone (like a vegetable person, any shopkeeper, you, etc.) can earn money by connecting to a system that can save their time and efforts.
In this article, we will show how you can start a business on a very simple and common thing i.e., “Vegetables”. And cover the whole of India through this simple business.
Who can start a vegetable business model?
Any individual, group, a student pursuing graduation (part-time), employee (part-time), and entrepreneur as a side project. But only on one condition, if you are open to learning new skills. The investment you need is less than 1000 rupees.
What is the Market need and requirement?
People purchase vegetables 5 times a week. For middle-class people, they purchase vegetable from a nearby local market. And upper-class purchase from a vegetable trollies came in their societies or through their servants.
Generally a rich and upper-middle-class society wants to save their time. Therefore these people do not waste their time in the market to save some penny. They buy vegetables from the trolley which comes to their door or their servant purchase it from the market.
The problem is, generally, every home does not have a full-time servant. If they have full-time servant then their lots of probability servant ask lots of money and return very less. More than vegetable costs. Which still not very big for them but it breaks the trust.
If a vegetable trolley comes to their door, then also it is very much possible they missed purchasing vegetables. This is due to some irrelevant time.
The story begins
Suppose you want to begin your startup but don’t know where and how to start. Even you don’t have any good business ideas. You do not have any experience, knowledge, and even any business degree. You only did graduation from Bachelor of Arts (B.A.) and belong to a middle-class family. But still, you persistently want to build a business rather than doing a job.
Video link: https://www.youtube.com/watch?v=YNk44NybMBA
Back to the story
But your thinking is different from others. You want to prove and be an inspiration for others that anyone can start a business. But the question arises how you will prove it.
One day you are roaming in a standard society. You saw a few vegetable trolleys, they are selling vegetates shouting aloud. A person comes outside of a house and purchases some vegetables from them.
By observing this you get the idea to start your business on this process.
Note: Here is a key point you have to note. You will get any business idea just by observing your surroundings if you ask your mind to give you a good idea so that you can start your business. Only then your mind will search for the idea and you will get ideas back to back. So to conclude you have to first prepare your mind, rest will happen automatically.
The starting of your business
You went to an upper-middle or high-class society. There you went door to door and proposed your offer. You said “Hello! My name is “Shubham”. I came from the “Easy Service”. Our company can make your life better by maximizing your time.” The house owner said, “No one can maximize time, it is fixed”.
The strategy here is if you say “I can maximize your time” or “I can increase your day”, people will emotionally connect to you easily. Also, this will make you different from others which is an advantage in your sales.
You said, “If you want any vegetables then you need to message me on WhatsApp, a phone call or text message, that’s it. Within 20 minutes the vegetable will be delivered to your home.” Now you said the benefit of your service “If you are getting your things just by typing a simple message, it will not only save your time but also the effort. Time is the most valuable thing in life. If we help you save your time you can utilize this time on more important tasks.”
The truth of customer psychology is that if you show them benefits then only they will listen to you.
Now you said the cost, “We will only take 100 rupees service charge a month that is just Rs.3/day. See only by spending 100 rupees you will get everything in your hand.” The customer said “That is ok! But how can we trust the quality of vegetables? How we trust that whatever you give will be fresh and good.” You said, “Yeah I know it is hard to trust anyone but what if we bring a vegetable trolley to your door and you can buy whatever you want.”
By listening to this, your customer will be happy.
After visiting the complete society you can acquire 30% customer within a week and a minimum daily calls up to 10.
You have to map the particular society and mark all of your available trolleys. You also need to mark which trolley has what type of vegetables.
Suppose at each 2 to 4 km. the distance there is one of your trolley persons. Every trolley does not have each kind of vegetables so you need to make sure that at each spot a group of vegetables should stand.
Whenever you get a call or message, a nearby vegetable trolley goes to that particular house and sell their vegetables. The vegetable trolley will stand in the morning time and evening time, the rest of the time they will sell their vegetables to the vegetable market. So you need to make sure to sell your vegetables at this time initially. Afterward, when your business grows you can deliver at any time.
The understanding business model in more deep
If you sell your vegetables whenever you get a call, it may happen that a trolley person does not pick up your call. In this case, you need to pass the order to another nearby trolley.
As this is your
, there may be a high chance that the trolley person won’t take you seriously if their vegetables are selling well in the traditional market. Now, this is the game-changing part.
In your past when you went to the door to pick order, you need to convince them to take your subscription pack. For this subscription they need to pay only 100 rupees a month, rest they will pay only to the trolley person when they buy vegetables from them.
Also, you need to personally meet your customer each month because it will make you a trustable seller and you will get some feedback.
Feedback is the most important thing in any business. We will discuss this in more detail in our upcoming videos.
Now you may think what are these trolleys and from where did they come. To understand it, we need to go to the flashback to the time before the society visit.
When you choose the society and then contact the vegetable trolley persons. You tell them about your business that people( customers) will call them and they will go to sell the vegetables. They would agree with your point because you affirmed them to increase their sales and only 10 rupees a day you will charge from them. This amount is not much for them therefore, it would be easy to convince them.
Do not charge more than 20 rupees a day from trolley persons otherwise, they might not work with you if you ask for higher charges in the beginning. You can increase your profit later when your business grows up.
You might be wondering why you have to contact vegetable trolley persons. Why not hire a few people and deliver the vegetables directly to the customers. There are traps if you do that.
- If you hire people then you have to manage their salary. Vegetable selling does not give you enough money. Your business will be in loss from the first day.
- If you directly deliver vegetables to customers then it may be possible your customer will not like your vegetables. They want to choose vegetables by themselves for their own satisfaction.
- If you initially use your own application rather than WhatsApp, message, or phone call then it will be a trap for you. Because you need to start your business as fast as possible and then from your business profit you can build your own application. If you initially just want to have your application, it would cost you a fortune, a big initial investment.
So first understand the market need and requirements then only take your own decision.
Converting business into a system
You have created a system for selling vegetable door to door. Suppose if any vegetable trolley person does not connect to you then it will be very hard for him to sell in a big society because of time and management issues.
As long as your business grows, more and more people and societies will connect to you. In this way, you can dominate the market and also big companies like Big Basket, Amazon, etc. Because you are capturing a niche market and your product is fresh and your customer is choosing physically what to take, not just in a mobile app through photos.
Upgrading your vegetable business
This is the turning point of your business. You need to focus more.
If you are selling vegetable door to door then you can also sell groceries. You can contact to the general stores and give them a customer’s list. So that when these customers ask for any grocery item then the shop keeper needs to pack it and deliver it to the vegetable trolley person. This trolley person will deliver items to the customer’s home door.
If you do so then you will not only be able to capture the vegetable market but also other markets too. Everything will be in your control. You will get a small commission from every entity like from end customers, vegetable shop keepers, and trolley person, grocery shop keeper. If you combine all this, it will be a huge profit.
Providing employment to the general public
If any nearby person from society or any student connects with your business/system then they can also earn.
Suppose any student wants to earn some money part-time then they need to first register with you by simply filling an online form on your website. After that, they will message you for it. Whenever you get any grocery order from any customer, you will tell the shop keeper and to the student by message. This student will go to the shop, take the item, and deliver it to the customer.
Here if the item is more than 500 rupees then you can take 20 to 40 rupees delivery charge and give that to that student. Otherwise, add some credit and give that later.
They can also get tips from customers.
Understanding the credit process
For delivery boy
All the money should be in the form of credit, virtual coins. You can set one coin value to one rupee. On each delivery add some coins to that user. When the user covers 50 coins then you can deduct 50 coins and give him actual money.
Upgrading business to version 2
You need a good website, Android, and ISO app. Now you can invest your profit and if it’s not enough then, you can invest from your saving. Because you have proved that you can earn profit in this business, after proving it you are sure that your business will boost. So, it’s safe to invest.
The total cost for the Android app will take up to 1 to 4 lakhs. If your app development cost will be near 3 to 4 lakhs then it will good app. Or if less then it will average or below average. But if the cost will be less 1 lakhs then it will be worst, which means the company is fooling you.
Understand the trap here, it is very important:
Trap 1: In India, people are always going for a cheap product but this could be very dangerous when it comes to software. Because technology is getting upgraded every day. Also, a cheap product company can fool you by selling you a fake or unreliable technology.
Trap 2: The only way any company can offer you to develop an app in less price is when the business or interface behind the app is common for all, For example: if you are looking for an app just like Zomato or Swiggy, you can easily find someone to provide you the app in less price range because they just resell their already developed apps to many customers. But if the concept is new and the business is new then you have to pay a higher price for your app.
Scaling your business
When you cover one society then do not stop there, go for next. Cover as much high and upper-middle-class society you can. But this scaling needs some manpower. So before scaling too much you also need to upgrade your business to the next level i.e. version 2.
When you cover your city go to another metro city. Increase your reach by increasing your team size.
Your income sources
You will get your income from the following sources
Note: Following calculation is considered from a society with 300 houses.
- Customer for purchasing vegetables, after taking your subscription
Within 2-3 months with an average 30%-40% of your customers, you can easily generate Rs.10,000 – Rs.12,000 per month.
- Customer for purchasing grocery, after taking your subscription
Within 6-12 months with an average of 50%-70% of your customers, you can easily generate Rs.15,000 – Rs.25,000 per month.
- Vegetable trolley person, by taking your subscription
Within 2-3 months with an average 30%-40% of your customers with a minimal subscription charge of Rs.10 per day from 5-6 vegetable vendors and trolleys, you can easily generate Rs.1,500 – Rs.1,800 per month.
- The grocery shop, by taking your subscription
Within 6-12 months with an average 50%-70% of your customers with a monthly subscription charge of Rs.300 from 6-10 grocery stores, you can easily generate Rs.1,800 – Rs.3,000 per month.
- Delivery boy, if order more than 500 rupees
These are your sources of income which will grow exponentially as your users/customers will grow in the future. See how much you are earning and how much you invested. Your investment was zero. But within 6-8 months you can generate a regular passive income of Rs.18,300 – Rs.29,800 per month and this will grow as your customer will grow. Here you can easily analyze that with a 10% – 20% of increment in your customer numbers your earning can easily be multiplied by 2, this is the difference between exponential growth and linear growth.
This is not only a system or business, but this is also an ecosystem.
You are creating an ecosystem and earning sources for the general public.