“The business is not only about you as the entrepreneur, but also about the eco-system”
Back in the days before social distancing became the new norm and handshakes the new ‘taboo’, the Inquisitor got the opportunity to interview Devesh Patel, Managing Director of Amex Auto and Industrial Hardware Limited. Devesh joined his father in running the family business at the young age of 17. The company has since experienced exponential growth. He just got off another meeting and finds me waiting at the lobby at their Ideal Corner Building offices along Lusaka Road. He ushers me to his office where we engage in a conversation.

Who is Devesh Patel?
I am a Kenyan citizen, born and raised in the lake side city of Kisumu some many years back. As soon as I finished my O-levels at seventeen years of age, I joined my father in the family business. My father ran a spare parts shop and my fascination with cars led me to join him in the business. This year will mark 21 years in the business for me.

Talk to us about Amex Auto and Industrial Hardware Limited
We specialize in auto parts and accessories and that’s been our primary business ever since inception in 1998. Amex was established by my father as a retail automotive spare parts shop. He had two partners at the time who later quit the business as they wanted to draw out part of the profit one year into the business. My father was left to run the business on his own.
As with any other business, location matters. After I joined the business, I persuaded my father to change locations and move to the main Jua Kali area in Kisumu where we would get foot traffic. Business started picking up after we moved. Growth was steady and we slowly built our capital up until 2010 when we bought our own commercial premises and thereafter in 2013, started engaging in the wholesale business of importation of automotive spare parts which we supplied all over Kenya.
As the business grew, we continued building the teams and digitizing the business. We noted that there was not much growth potential if we remained in Kisumu as most of our products were sold in Nairobi, Mombasa and central Kenya. Therefore, in 2015, we moved to Nairobi. A decision we made in two weeks. We opened more branches along Kirinyaga road and Dunga road. We currently have five retail outlets countrywide, one distribution center and a head office.

The advice you gave your father immediately after you joined the business impacted the growth of Amex in a profound way. What in your opinion differentiates the exceptional entrepreneur from the average one?
Hard work. There is no short cut to success. That might sound cliché, but it is very true. I view this office which I sit in as a twenty-year gift which I awarded myself. It has taken us a lot of time and effort to grow to where we are currently.
You must also love whatever it is that you are doing. It must excite you. Doing business for the sake of making money doesn’t cut it.

As a family run business, you learnt the trade from within at Amex. Talk to us about how you integrate this internal understanding of the business, with the external needs of the market.
You must have an ear on the ground. Much as you grow within the business, you must develop means to help you build perspectives of the market. You need to talk to your existing customers and know what their needs are. One of the reasons we moved to Nairobi was because our clients found it difficult to get the goods from Kisumu. It was not working out for them from a logistics point of view. We therefore made the logical decision to move to a central location to serve our clients better. You also need to know what your competitors are doing.
So, much as you may have a good and in depth understanding of the internal operation of a business, you need to develop external strengths to enable you stay ahead of the curve.

Talk to us about your experience at the Stanford Seed Leadership program.
It was transformative. It brought about a dynamic shift in my thinking. The Stanford Seed program gives you a real perspective of the business world and you are handed the tools required to grow and sustain your business. You are guided on how to build an effective management team and given real insights on corporate governance, something I do not think most entrepreneurs appreciate as much. Most times as business owners, our views and actions are shaped by what is in our hearts. The program however gives a wholesale perspective. I view myself as part of a larger eco-system. My role as a business owner is to impact the community by providing jobs and reducing poverty. It is therefore not about me and making money but improving lives as well. And I can only do this by running a sustainable business.

Speaking of corporate governance, how are the governance structures at Amex?
After my program at Stanford, we got a coach who followed up on the application of the learnings from the program. What we have is an advisory board which comprises the family members as shareholders, the coach and two other members. The intention is to transform the advisory board into a statutory board.

For how long have you had the advisory board?
Since 2017.

What impact has the board had on the company?
The board’s advice has been invaluable in every aspect. It has guided us when we’ve been uncertain, and it has directed us when we’ve gone wrong.
The board has also brought diverse perspectives to the business, key among them being the role of the managing director. It has made me more accountable as managing director as I report to the board every quarter. It has also brought insights on how to report and how to do a simple balance score card among many others. These are critical issues which I never knew before.
As the owner of the business, you need to be challenged because it makes you come out of your comfort zone. But you also need to stay humble and soak up these challenges and critique from your board members. I find that many entrepreneurs are not open to these “external” challenges.

Talk to us about influence and integration of family values in the operation of a family run business.
It was a challenge initially, I must admit. We had to do things differently because there is the fundamental element of professionalism while doing business. The shareholders, who are also family members are the directors of the company. Ideally as a family member, you shouldn’t involve emotion when you engage in your work. This is important to understand and overtime we have learnt to differentiate between family and business issues which are then dealt with accordingly.

A lack of knowledge on governance and its systems as well as the lack of follow through in implementation of these systems is what causes many businesses to struggle. What advice would you offer as a remedy?
I think the conversation should be approached differently and emphasis should be on sustainability. Entrepreneurs need to understand that corporate governance makes the organization healthy. It promotes continuity in the business in the unfortunate event that something tragic happens to the entrepreneur. Remember that the business is not only about you as the entrepreneur, but also the eco system. We experience many challenges in business, most of which is unforeseen. Politics, the economy, technology, all of these are unpredictable. But we need to know how to survive in these tough and uncertain conditions. Good governance allows you to navigate through unknown and whatever might be perceived initially as impossible. I would encourage all entrepreneurs to enhance their knowledge and build capacity on where they feel they have a deficit.

At what point would you recommend that the entrepreneur institutes these governance structures and processes?
There is no right time because there are different ways of looking at it. For instance, when you sense that your business is flat, especially when performance remains the same or when the business is underperforming, different perspectives should be sought, and a different approach applied to business.

How do you stay ahead of the curve?
I go to the field and talk to my customers on a regular basis. I am part of the sales team but not as the managing director, but as a team player. This helps me understand the market better and position myself appropriately.

How do you unwind?
I spend time with my beautiful family either at home or on holiday. Occasionally, I travel back to my hometown in Kisumu and spend quality time with my parents. I also exercise a lot.

Devesh views himself not only as an entrepreneur, but as part of a larger ecosystem which thrives on continuity. Devesh also speaks of the importance of knowledge enhancement and open mindedness which are critical in shaping our perspectives, as well as exposing us to new ones.
Here is the Inquisitor’s take: Having been engaged in similar conversations with entrepreneurs like Devesh, there appears to be a recurring theme. Sustainability! As business owners cross their fingers and hope to pull through the Covid-19 pandemic, they should also take this time to reflect on their role in the ecosystem and how best they applied themselves. The world will be a different place once the curve flattens and we are on the other side of this pandemic. What will however remain the same is the need to ensure businesses are sustainable, and for many business owners, this will no doubt require being more open minded to external views and perspectives, as well as knowledge enhancement on how to structure a sustainable business.

The Inquisitor