The purpose I open this thread is to gather all business owners to share their experience in Small and Medium cash flow business. This will be a guide to someone out there who intends to invest in small and medium business. I share mine 1st.
*Edited - Add in Equipment, Overhead, Rental, and other cost.
*All the income shown is Gross Profit only. It is not Net Profit.
Success :
1. Car wash
Capital : 20k
a. Water Jet Pump - RM 800 (3 nos) = RM 2,400
b. Soap Bomb (Snow Wash Dispenser) = RM 700 (2nd hand) *Just fill in the soap and it will come out with snow wash, and the shape is like a bomb
c. Detergent = RM 500. Always stock 10 tong (RM 50/tong).
d. Cleaning Cloth = RM 100 (50 pieces)
e. Other miscellaneous stuff = Book, Promotion banner etc. = RM 1,000
f. Minor renovation = Concrete ramp for under car wash. M&E wiring. Minor repair to the dessert house. = RM 15k
g. Some additional cash to start the day = RM 500
Partner : 1
Location : Nearby Government Office and Residential Area. Converted a dessert house to a carwash centre.
Monthly/Daily Income : Average 55 cars daily, average RM 11 per car.
Workers : 10 workers. RM 300 per person. With commission RM 1 per car and includes lunch
Duration : Manage it for 1 year and a half and sell it off.
Opinion : Good cash flow business. Easy to manage.
2. Laundry
Capital : 10k (I take over from someone who owes money to the loan shark, and he needs money urgently.)
a. Take over all the shop which includes 2 heavy duty washing machine , 3 heavy duty dryers, 2 iron and board, etc.
Partner : None
Location : Apartment area (Approx. 5,000 units). The only laundry available as there are only 2 rows of shoplot own by the same owner and I pay slightly higher rent to the owner and signed an agreement with him not to rent to any other laundry.
Monthly/Daily Income : RM 4 per kg (all kinds of clothes). Average income RM 25,000 per month. (Do not include contract wash from nearby reflexology centre, cafes and restaurant)
Workers : 10 workers. RM 400 per person. With commission RM 0.50 per kg and includes lunch
Duration : Manage it for 2 years and sell it off.
Opinion : Good cash flow business. For walk-in business, find location with medium/heavy populated residential area.
3. Western Food Stall
Capital : 15k.
a. Minor renovation of the stall = RM 2,000
b. Additional aluminum stall = RM 3,000
b. All the equipment necessary for cooking (Utensils, Grilled Plate and Fridge stand the major portion)= RM 5,000
c. Rental = RM 3,600 (RM 1,200/month. 2 + 1)
d. Cash to buy ingredients = RM 500
d. Some additional cash to start the day = RM 500
Partner : 1
Location : Food court nearby to residential area.
Monthly/Daily Income : In weekdays, average 30 plates of steak. And average 50 plates during Friday, Saturday and Sunday. Average RM 15 per plate.
Workers : 6 workers. With commission RM 1 per plate.
Duration : Half a year. Sell it off to my partner.
Opinion : Need a good chef who cooks FANTASTIC FOOD! The hours is too long and tiring. Eventually every customer has their own taste, therefore complaints are un-avoidable.
4. Room Rental
Capital : 40-50k.
Refer to my thread on this. http://forum.lowyat.net/index.php?showtopic=1240408&hl=
Partner : 1
Location : Shoplot.
Monthly/Daily Income : Average income RM 2,600 per month.
Workers : 1 worker. Ah ma. Cleaning services.
Duration : 3 years. Ended setting up 8 locations and sell it off.
Opinion : Need good management. Humans are the most complicated animals on earth. Some are fussy, some are grouchy, you name it.
Failure :
1. Computer Sales and Services
Capital : 20k
Partner : 2 (Too many chef spoils the broth)
Location : Shoplot.
Monthly/Daily Income : The peak sales is only RM 3,xxx. Lowest RM 50.
Workers : 1 worker. Based on sales commission with base salary RM 500.
Duration : Bear the lost for half a year. Lost all the 20k after deducting all things, rental deposit and etc. and still need to fork in 1k to wind up the company.
Opinion : Too competitive. Too lousy margin. Too many partners. Since then, I reject every computer venture that approach to me. (They keep pitching how they do it differently, bla bla bla.... and I still end up saying "NO, thanks".)
2. Nasi Lemak & Kuih Stall
Capital : 10k
Partner : 1
Location : A stall at residential area
Monthly/Daily Income : The peak sales is RM 600 per day. After everything sold out. RM 2 per bungkus nasi lemak. Target 200 bungkus everyday.
Workers : 1 worker. RM 300
Opinion : Fail due to the failure commitment of my partner. Today lazy, do only 50 bungkus. Tommorrow rajin, do 200 bungkus. Therefore, I close down the stall and sold off the stall for 5k. Still RUGI 5k!
This post has been edited by edyek: Dec 22 2009, 03:49 PM
For Small and Medium Business Owners, Come In and Share Your Biz.