The ladder / Self-evaluation
Which level do you want to build?
This is not a test of where you are today. It asks what you want to build and what you are ready to commit, and suggests the level of the ladder that fits best.
14 questions, about three minutes. Choose the answer closest to what you want. Everything runs in your browser: your answers are not sent anywhere and not saved. The money bands are rough ways to describe yourself, not what any particular business needs; that varies widely by business and place.
Sub-levels are a first draft, being refined. The result also suggests a sub-level within your level; plain-words glossary explains the terms.
Score it yourself
Each answer is marked with a level. Count how many of your answers fall under each level, 1 to 4. The level with the most answers is your best fit, and the level with the next most is your runner-up. If two levels tie, read about both.
Then find your sub-level inside your best-fit level: it is the one whose signs below match the most of your answers. Sub-levels are a first draft, being refined.
- Level 1
- 1.1 No-stock seller: stock: “None: I want to sell without keeping goods (the supplier ships to the customer), or to sell a service”; working day: “Hosting people: running classes, meetups or events that people book through an app or platform”; money: “None for now”; borrowing: “I do not want any loans”; risk: “As little as possible: I want to start small and safe”
- 1.2 Shopkeeper or retail stockist: money: “A small amount: up to about ₹5 lakh”; stock: “Fast-moving goods that I can sell within weeks”; customers: “Long relationships with local customers, including after-sales service”; team: “Just me, or a few helpers”; size: “A steady income for my family”
- 1.3 Wholesaler or distributor: money: “A significant amount: about ₹5 lakh to ₹50 lakh”; customers: “Many customers, many small sales, again and again”; borrowing: “Short supplier or bank credit for stock is fine”; learning: “Market prices, stock turnover and credit control”; size: “The leading business of its kind in my town or district”
- 1.4 Super stockist or C&F agent: money: “A large amount: about ₹50 lakh to ₹5 crore”; size: “A plant supplying customers across several states”; team: “Sales and service staff in a showroom or workshop” or “Workers, supervisors, quality and purchase staff”; risk: “Some risk, if the business is steady and well known” or “A real risk, for a business that keeps growing for years”; borrowing: “I would take a bank term loan for machines or a building”
- 1.5 Importer, exporter or trading house: money: “More than ₹5 crore, or investors ready to back me”; size: “A product known across India, or abroad”; risk: “A high risk, for the chance of building something much bigger”; borrowing: “I would take large loans or bring in investors for a new product”; time to profit: “Two to three years” or “Several years, if the end result is worth it”
- Level 2
- 2.1 Sub-dealer: money: “None for now” or “A small amount: up to about ₹5 lakh”; team: “Just me, or a few helpers”; size: “A steady income for my family”; risk: “As little as possible: I want to start small and safe”
- 2.2 Authorised dealer (sales): money: “A significant amount: about ₹5 lakh to ₹50 lakh”; making things: “Not interested: I prefer buying and selling”; stock: “A brand's full range of models and spares, as the brand requires”; size: “The leading business of its kind in my town or district”
- 2.3 3S dealer (sales, service, spares): making things: “Some interest: fitting, repair, installation and service”; team: “Sales and service staff in a showroom or workshop”; customers: “Long relationships with local customers, including after-sales service”; working day: “Serving customers and running a showroom or workshop”
- 2.4 Multi-outlet dealer group or multi-unit franchisee: money: “A large amount: about ₹50 lakh to ₹5 crore”; size: “A plant supplying customers across several states”; borrowing: “I would take a bank term loan for machines or a building”; risk: “A real risk, for a business that keeps growing for years”
- 2.5 Master franchisee or regional distributor: money: “More than ₹5 crore, or investors ready to back me”; size: “A product known across India, or abroad”; team: “Engineers, designers and other specialists”; risk: “A high risk, for the chance of building something much bigger”; borrowing: “I would take large loans or bring in investors for a new product”
- Level 3
- 3.1 Job worker: money: “None for now” or “A small amount: up to about ₹5 lakh”; team: “Just me, or a few helpers”; risk: “As little as possible: I want to start small and safe” or “Some risk, if the business is steady and well known”; size: “A steady income for my family” or “The leading business of its kind in my town or district”
- 3.2 Contract manufacturer (including ODM and EMS): whose product: “Things I make myself, to a customer's design or as a standard product”; customers: “A few large business customers on long contracts”; money: “A significant amount: about ₹5 lakh to ₹50 lakh”; independence: “Supplying large companies to their specifications and schedules”
- 3.3 Component supplier (Tier 2, then Tier 1): technology: “I want to keep improving how things are made: cost, speed, quality”; independence: “Supplying large companies to their specifications and schedules”; customers: “A few large business customers on long contracts”; money: “A large amount: about ₹50 lakh to ₹5 crore”; learning: “Production planning, costing and quality systems”
- 3.4 Commodity or bulk manufacturer: customers: “Many customers, many small sales, again and again”; size: “A plant supplying customers across several states”; money: “A large amount: about ₹50 lakh to ₹5 crore”; working day: “Solving production problems: output, rejections, cost”; whose product: “Other people's goods: whatever sells”
- 3.5 Own-brand manufacturer (the OEM): whose product: “My own product, under my own brand”; size: “A product known across India, or abroad”; money: “More than ₹5 crore, or investors ready to back me”; independence: “Setting my own direction, answering to my customers (and investors, if any)”
- Level 4
- 4.1 Technology licensee: technology: “I want to keep improving how things are made: cost, speed, quality” or “I want to know the products well, not develop them”; money: “A significant amount: about ₹5 lakh to ₹50 lakh”; time to profit: “Two to three years”; risk: “A real risk, for a business that keeps growing for years”; making things: “Very interested: machines, a factory floor, quality and costs”
- 4.2 Product startup on licensed or open technology: whose product: “My own product, under my own brand”; making things: “Most interested in designing new products; the making could be done by others”; customers: “Building a market for something customers have not bought before”; borrowing: “I would take large loans or bring in investors for a new product”; time to profit: “Two to three years”
- 4.3 Own R&D and patents: learning: “Technology, patents and licensing, and raising money”; technology: “I am ready for years of R&D or licensing a technology before it pays”; time to profit: “Several years, if the end result is worth it”; team: “Engineers, designers and other specialists”
- 4.4 Deep tech or platform company: money: “More than ₹5 crore, or investors ready to back me”; risk: “A high risk, for the chance of building something much bigger”; time to profit: “Several years, if the end result is worth it”; borrowing: “I would take large loans or bring in investors for a new product”; size: “A product known across India, or abroad”
What each path asks of you
In plain words, without numbers: every business is different.
Level 1: Trader
- Money
- The least of the four levels. You can start with little and grow with your stock.
- Risk
- Mainly the risk of stock that does not sell and customers who pay late. Thin margins leave little room for mistakes.
- Skills
- Buying well, pricing, keeping stock moving, and collecting what you are owed on time.
- Time
- Money comes back in weeks if stock moves and customers pay; profit builds slowly, sale by sale.
The trader level · Business math · Why turnover and credit cycles decide whether a trader survives
Level 2: Dealer
- Money
- Money for a showroom or shop to the brand's standards, a security deposit, and the minimum stock the brand requires.
- Risk
- Depending on one brand's policies and targets; stock bought to meet targets can sit unsold.
- Skills
- Knowing the brand's products well, running sales and service staff, and controlling stock and credit.
- Time
- Usually longer to pay back than trading, because of the upfront showroom and stock; steadier once established.
The dealer level · Business math · What a brand dealership really gives you, and what it costs you
Level 3: Manufacturer
- Money
- Money for machines, a factory, raw material and working capital, often with a bank term loan.
- Risk
- Fixed costs that run whether or not orders come; big buyers or the market can squeeze your price.
- Skills
- Production, costing, quality, and managing workers and suppliers.
- Time
- Takes time to set up and to fill capacity; payback is usually measured in years.
The manufacturer level · Business math · OEM or commodity manufacturing: who holds the power?
Level 4: New products and services
- Money
- Money for development, prototypes, testing, tooling and launch, spent before the first sale; often from investors or grants as well as your own.
- Risk
- The highest: the product may not work at scale, or customers may not pay for it.
- Skills
- Understanding customers' unmet needs, technology or design, licensing and patents, and raising money.
- Time
- The longest: development often takes longer and costs more than planned before any profit.
The new products and services level · Business math · How technology transfer works in India: a starter's guide