In Conversation with Pratik Gadia, Founder of The Yarn Bazaar
Tell us about your best and worst days at work?
Pratik: In this early-stage journey, every day can be both the best and the worst, an emotional rollercoaster. It's a continuous process of problem-solving with challenges presenting themselves daily. Yet, amidst this, there are fleeting moments of celebration where we feel a sense of accomplishment.
For instance, whenever I listen to inspiring podcasts featuring successful founders who I admire, it's inevitable that I'm met with profound moments of reflection that make me wonder if we're on the right path. There are also occasions that bring a spark of motivation driving us to keep moving forward. This makes the journey rewarding and serves as a reminder of why we chose to embark on our entrepreneurial path in the first place.
What do you do when you are not at work?
Pratik: I sleep! This is true for all early-stage founders, we work really hard at work. Sometimes, sleeping and resting also feels like a luxury. In fact, even as I sleep, I think about how we could be better.
What piece of advice would you give to someone just starting out?
Pratik: My advice for aspiring founders is to not get discouraged by a lack of validation from family and friends. I experienced this firsthand while starting out, but my conviction in the idea of The Yarn Bazaar pushed me forward. I encourage everyone to follow their dreams regardless of others' opinions. Have the courage to pursue what you believe in, and you will find fulfillment in your journey.
How do you define success?
Pratik: When we launched The Yarn Bazaar, one major hurdle was our upfront payment terms in India's B2B landscape, where credit prevails in every transaction. The pandemic compounded our challenges, causing factory shutdowns and liquidity crises. However, to our surprise, we exceeded our initial targets in the first year. It made me realise that success is subjective and ever-evolving. Meeting the goals of conventional metrics like GMV, valuation, and profit are constantly changing. That realisation led us to define success differently. It's not about the top line, valuation, or exit plans. Since 2020, this has been our team's focused objective – to become a case study in the world of business innovation. We want to inspire young talents to follow their entrepreneurial path, just as we were inspired by Amazon's case study in the B2B space. There's nothing more rewarding than sparking others' journeys.
What is your favorite aspect of being a solo entrepreneur?
Pratik: As a solo founder, the best part is the firsthand experience of learning through my mistakes. The rollercoaster ride of being a solo founder has given me a lot of valuable insights along the way, making my journey truly personal and transformative.
You are one of those founders who is very Dhanda-oriented. What do you think about building real businesses with sustainable cash flows?
Pratik: At The Yarn Bazaar, we are focused on wealth creation. To us, true wealth means generating massive cash flow and allowing quick recovery from zero bank balance. I learned this from the success story of EaseMyTrip, a bootstrapped company in the OTA (Online Travel Agents) space. They never experienced a loss, even during the pandemic. They stood strong with a surplus of cash reserves and refunded travelers despite airline hardships. To us, their example highlighted the importance of robust cash flow in business.
You have experience of working in the family business made you start TYB. Could you take us through some of the key learnings from a traditional family business that you are adopting in your startup? And are there any aspects that you think should not be adopted in a startup setting?
Pratik: I worked at my family business for over 7 years and throughout the experience I had a deep admiration for my father’s commitment. His ability to strike a delicate balance between ensuring capital efficiency without compromising on quality is commendable. However, family-run businesses often adopt a distinct style of leadership that may not be effective for a startup. Unlike established family businesses, startups require a different approach to leadership that focuses on trust, empowerment, and fostering creativity and innovation.
What kind of impact do you plan to create with TYB?
Pratik: From day one, our vision has remained steadfast, aiming to organise and streamline the vast and highly decentralised textile industry, which significantly impacts the global economy. As the second-largest employer in India and a major contributor to the GDP, textile touches the lives of everyone, making it a crucial sector to organise. To do this, we seek team members who share our passion for textiles. The commodity has diverse applications from basic needs like clothing to niche segments like contact lenses and airplane tires. By organising this industry, we envision a massive economic impact that will fuel growth, exports, and overall prosperity.
What is the one thing you miss about Bombay?
Pratik: I miss the Mumbai rains. Initially, I also missed Bombay tea. In our office in Bangalore, we serve Bombay cutting chai and coffee. It's a Bombay thing, and we made sure to get authentic tea glasses, so now I enjoy it here.