A motor repair business started with Rs800

Published: March 15, 2012

SKMS claims to be a one-stop shop that acts as a value-adding intermediary between the customer and about 18 authorised service-providers in different parts of Karachi. PHOTO: SK MS

KARACHI: It was during a class on entrepreneurship in the final semester of BBA in late 2008 that an unusual business idea struck Shakaib Khan. He left the classroom immediately, drove to a shop on Tariq Road to get his business cards printed and started a motor repair business with total investment of Rs800.

The business model of SK Motor Syndicate (SKMS) is simple. Be it car maintenance, repair work, inspection, trading, interior fabrication, exterior add-ons or CNG installation, SKMS claims to be a one-stop shop that acts as a value-adding intermediary between the customer and about 18 authorised service-providers in different parts of Karachi.

But why would someone involve an intermediary and not deal with the car mechanic himself?

“We provide pick-and-drop service along with a seven-day workmanship warranty. We charge customers strictly the going market rates, absorb all risks and get the repair work done from a select group of service-providers at discount rates,” Khan said while talking to The Express Tribune.

Among the 10 successful entrepreneurs shortlisted for Shell Tameer Awards 2012, Khan describes himself as a “car enthusiast” from an early age. With the target market of busy corporate executives and women, he says his customers get “elite treatment” for their cars in an economical and hassle-free manner.

On the first day of its establishment, SKMS brought eight service-providers on board and found a number of ready customers among his family and friends. The business grew by 25% in the first year of its establishment while the growth rate was 15% in 2011.

It has created four jobs directly and more than 70 jobs indirectly. The business now has 42 regular customers while walk-in customers in a given month are about 20% of the regular ones.

“Passion drives this business. As a car enthusiast, I was initially looking for the little teenage luxuries. But it turned out to be a lot more than that,” he said, adding that he is the first member of his family who has started his own business.

“My total investment is Rs800. I’ve got no capital expenditure, no office, no workshop, no tools, no overheads, no rent, no utility bills and no salaries. We work on a commission basis. We make a profit when there’s business. But we make no loss when there’s little business,” he said, revealing that last year’s turnover was Rs1 million.

The authorised service-providers work with SKMS at discount rates not just because it brings them steady business. In fact, they find SKMS more valuable because Khan helps mechanics with regular service advisory. “I download car repair manuals from the internet to find the prescribed method of fixing a problem. I do the translation and help the mechanic understand how best to approach a problem. This saves him from a trial-and-error approach, which is both time-consuming and bad for the vehicle.”

Khan says he plans to expand the business by establishing his own workshop in the next one year. “I know my potential. I’m not afraid of anyone stealing my business plan.”

Published in The Express Tribune, March 15th, 2012.

 

Reader Comments (23)

  • nationalist baloch
    Mar 15, 2012 - 8:43AM

    … wonderful … and I am glad that such entrepreneurship recieves recognition other than the mayerial benrfits from the venture … Kudos, Pakistan …

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  • Talha Hashim
    Mar 15, 2012 - 9:02AM

    This is great! Awesome work Shakaib Khan!

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  • muhammad Uzair
    Mar 15, 2012 - 9:03AM

    All you actually need to do is find the will to take the first step. Congratulations Shakaib!!

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  • Baqar
    Mar 15, 2012 - 9:30AM

    Shakaib Khan…way to go man…you are famous now…:)

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  • Lord
    Mar 15, 2012 - 9:35AM

    Man you have it in you go for it.

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  • Near2u
    Mar 15, 2012 - 10:41AM

    Well done, these sort of ppl are successful in this life and the life hereafter. They have dedication, sincerity and no jealousy at all. Best of luck

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  • Pakistani
    Mar 15, 2012 - 10:52AM

    Very good … keep it up

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  • Tanveer
    Mar 15, 2012 - 11:12AM

    best of luck SK!

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  • Asif A. Khan
    Mar 15, 2012 - 11:17AM

    Sirrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrr!!!!!!!!!!!!

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  • Syed Kazim
    Mar 15, 2012 - 12:34PM

    Brains! Keep it up

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  • Mehvish Shahid
    Mar 15, 2012 - 12:41PM

    Congratulations Shakaib! Very very proud of you! Way to go Man!!

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  • A.Khan
    Mar 15, 2012 - 12:59PM

    Great work, my suggestion to him is to follow the business model of ‘Mekonomen’ and start a reliable spare parts business soon.

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  • Umer Noor
    Mar 15, 2012 - 1:40PM

    I know him, I know him.. He is my friend! :p
    Dada!!!

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  • Bilal Umar
    Mar 15, 2012 - 1:54PM

    Amazing stuff Shakaib! Keep up the great work!

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  • Maisam
    Mar 15, 2012 - 2:44PM

    Way to go! Keep it up!

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  • Dost
    Mar 15, 2012 - 3:50PM

    Did you remember to pay taxes on your business?

    Remember what you owe to your country. If you become like sayths who cheat on taxes, you are no better than them.

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  • Bilal Hussain
    Mar 15, 2012 - 5:28PM

    Great!

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  • TT
    Mar 15, 2012 - 5:55PM

    great job, may Allah grant him peaceful business and success.

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  • Idris
    Mar 15, 2012 - 6:43PM

    All hail Shakaib :)

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  • Zavia
    Mar 15, 2012 - 7:39PM

    Superb Idea and implementation. Excellent Khan.

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  • Nveed
    Mar 15, 2012 - 10:41PM

    Well done!!!

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  • Mar 15, 2012 - 11:46PM

    true entrepreneur shakaib khan

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  • Muhammad Sarfaraz Ali
    Mar 28, 2012 - 4:18PM

    Excellent job Shakaib Khan! All the best!

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