“Everything changes completely as you begin to live according to your own guidance and your own daring,” remarked Leonard Willoughby. This is just what the barber-turned-millionaire Ramesh Babu did to mold his bright future. Stories of individual tenacity, those in which heroes scale incredible heights of achievement while overcoming terrible adversity, have been told since the dawn of time, and they never grow old. They arouse our passions and inspire us, giving us hope that we may emulate them.
In 1994, Ramesh Babu used his meager funds to purchase a Maruti Van. He owned seven ordinary cars and a nascent car rental business by 2004. He has 200 cars in his fleet as of 2014. The 75 premium vehicles in the fleet—a variety of Mercedes, BMWs, Audis, five- and ten-seater luxury vans, and, his pride and joy, a Rolls Royce—are even more astounding.
Ramesh Babu’s early years were largely devoted to battling for his existence. Now that he is comfortably affluent, he continues to pursue his passion as a barber. In order to support his family, Babu started snipping locks in high school—a trade he learned from his father. It’s one that he performs expertly even now. He simply takes a hundred rupees as payment for his services. Newspapers and television networks around the nation have carried stories on him. He is known as the “Millionaire Barber” due to his extraordinary success and endearing modesty. That’s the title he used in an earlier this year TED talk. He has become somewhat of an urban legend as a result. Here, the Millionaire Barber, Ramesh Babu, tells his incredibly motivational tale.
Difficult Start:
My family was impoverished when I was born. My dad was a hairdresser. In 1979, when I was only seven years old, he went suddenly. In order to make ends meet, my mother began working as a maid servant. My uncle took over the saloon business that my father had left on Brigade Road. From that, he would give us five rupees a day. Even in those days, five rupees was insufficient to cover my brother’s and sister’s scholastic and medical expenses. In order to live, we started eating only one meal a day. I started taking on odd jobs in middle school in order to supplement my income. In order to lighten my mother’s load a little, I would bring newspapers, milk bottles, and other necessities. In this manner, I completed my tenth standard and enrolled in the evening PUC.
Breaking Point
My mother and my uncle got into a heated argument when I was in my first PU sometime in the nineties. He had just quit giving us any money. I told her that I ought to run the tavern myself. She insisted that I put my studies first, but I also started working at the tavern and picking up some business savvy. I used to spend my evenings at college and my mornings at the saloon. I would then go back to the saloon again at night, and it would be open until one in the morning. I’ve been referred to as a barber ever since.
Innovative Concept
I got an old Maruti van later in 1993. Petty pride forced me to get a little car after my uncle did. Using my meager funds, I took out a loan and felt a sense of depressing satisfaction for having purchased a somewhat more luxurious car than him. To make the loan possible, my grandfather had to mortgage his belongings. I was in severe financial distress due to the six thousand and eight hundred rupee loan interest.
My mother’s former employer, Nandini Akka, as I like to call her, questioned me why I didn’t rent out the car rather than leaving it parked. I learned the fundamentals of running this kind of business from her. She grew to be a sister to me and is still very much a part of my life. She invited me to her daughter’s wedding and made me feel very special!
Creating a profitable company:
I started taking my involvement in the car rental industry seriously in 1994. Because Nandini Akka worked there and helped set everything up, Intel was the first firm I rented it out to. I started expanding the fleet of cars gradually. I owned only five or six autos until 2004. I didn’t prioritize this since I was too busy getting the saloon business off the ground. Due to the fierce competition at this level, the business was struggling. Everybody drove little automobiles. Because no one else was driving fancy cars, I considered doing the same.
Regarding Taking Chances:
Everyone told me I was making a big mistake in 2004 when I purchased my first luxury vehicle. In 2004, forty lakhs was a significant amount for an automobile, even a high-end one. Even though I was really nervous, I had to take the opportunity. If things became really bad, I promised myself I would sell the automobile. Luckily for me, the gamble paid out handsomely. This caliber of premium automobile was unmatched by any other car rental company. There were individuals who had bought used models, and their cars weren’t in perfect shape. I invested in a brand-new, high-end car before anyone else in Bangalore, and it turned a profit.
You have to be willing to take chances if you want to do business.
People forewarned me about the extent of failures associated with purchasing such an enormously expensive car when I purchased my Rolls Royce in 2011. I reasoned with myself, asking why not take a chance now, nearly ten years later, because I had done so in 2004? I had to pay over four crore rupees for the vehicle. Once more, though, the gamble paid off. Three years have passed, and it is still incredibly well-liked. This year’s EMI payments will end in December.
Largest Difficulties:
Every company will experience difficulties and traps. I had to pay more than three crores in road taxes alone in April of last year. I still don’t understand how I came up with the money. I obtained the money by putting up property documents and taking out a lot of loans. Every company will face persistently difficult obstacles. The goal is to confront them head-on and with all of your might. The road tax had put me in the red for a while, but in about a year, we will be out of it.
Suggestions for the Future:
We used to pay taxes on a quarterly basis. Due to the astronomically high taxes, I have had to postpone my plans for expansion. We plan to purchase a few stretch limos and other similar automobiles in 2015.
Advice for Future Business Owners:
In his TED talk, Ramesh Babu reaffirmed the straightforward advice he gave students to follow when starting their own business.
