You miss out a few things
1) Electricity and water expense?
2) Materials supply?
3) Your booth/stall setup?


Your monthly expenses is RM2.2k (labour + rental). You plus item no. 1 and no.2 you have your monthly expenses.
Can you estimate how much you can sell and how much you want to charge per cup and per waffer?

thx:).from my estimation the montly elec and water supply is be around 150-200 and material is around 500 per month the booth setup is around 3k.. for bubble tea per cup is range at rm 2.80-4.00 and the waffer Rm 2.50..

based on your eperience do you think is profitable?? thx alot sifu

What is your estimation of cups and waffers sold per day?

exclude the fix asset investment, and assume [elec and water supply+material+etc expenses] is RM1k, so his monthly expenses for labour + rental + others is RM3.3K, then he daily business need to be at least RM110 to cover the expenses, so around 20 cup bubble tea + 20 waffer. . .

This post has been edited by Omage007: Sep 1 2010, 12:39 PM

Deleted

This post has been edited by YuNGSeNG: Sep 1 2010, 12:55 PM

The material expenses is already include at the RM1k there. . . else his monthly expenses is below RM3k if exclude material; of coz the more he sell the higher the material expenses. . .

if average daily sell 50 cup of bubble tea and 50 waffer, then can get monthly profit RM3K - RM4K. . .

This post has been edited by Omage007: Sep 1 2010, 12:59 PM

Yes, sorry for me to overlook "your RM1K is include material expenses".

However, usually we didn't calculate the material expenses as fix cost, but we calculate it as variable cost, as the material expenses is based on sales volume and not fix per month.

i estimate will get around 35cups of bubble tea per day and 30 waffer.. which give me profit of Rm165 per day and Rm4950 per month.
based on my calculation is profitable.. but can i know wat others factor i should take as a percoution..?? thx for your comment.aligator:)

peak season and low season....

season where sales are damn good

season where sales are damn bad.. no matter what you do

ya ya especially during semster break when student going back to hometown. (so u running cost of this month must be dived for other month..so u have money to pay rental- this is important so u dont use ur personal money.

Tror
looking on ur estimate ruining cost monthly... i think u should find shop lot rental which is much cheaper. rm1k+ for selling waffle only maybe to expensive(try to rent potion of the shop maybe?). nontheles this biz have good potential especially when u give more choice and variety(tassstyyyy sandwic maybe ?)

just my non pro advice. good luck tror.

This post has been edited by mousepad87: Sep 1 2010, 10:19 PM

Tror,

Your target market is students, and you are selling your goods at above average price. Tell me, are you opening up in Sunway or Monash area?

The IDEAL price to achieve your above estimated volume would be RM2.50 for bubble tea and RM2 for wafer. Anything more than that, students will not buy, unless you open up in the 2 areas mentioned.

"i estimate will get around 35cups of bubble tea per day and 30 waffer.. which give me profit of Rm165 per day and Rm4950 per month"

Tell me, which college has classes 7 days a week, 30 days per month? Unless you are opening up in the student accommodation, then you might be able to achieve sales every day. Also, for 35 cups of bubble tea and 30 pieces of wafers, your daily profit would only be RM90 (on the assumption that your price at RM2.50 and RM2). Your monthly profit based on 20 days would be RM1,800. Deduct your rental and the salary, you will be at a loss. That is not including utilities.

Rental is too high for a low margin business, you need to get a high volume of sales per day in order to be profitable in the long run. Jordy has a point, students won't pay too much EVERYDAY to drink bubble tea, anything above rm2.50 will be too expensive for them. Think about it.

How about being a distributor? Im thinking of bringing a product from the US.

How does the process flows?
Does the product ships on monthly basis or order then ship type?

Thank you.

Hi big boss edyek.Do you need lot of experience to open the construction firm ?Can you share your experience in construction line last time when you first started the company? Thanks!

zeneyam,

This is a very skill intensive sector. Anyone wanting to start up a business in this sector must be experienced themselves. It is not as easy as just starting up a company and hope to employ good supervisors, managers and QS to run the whole show for you. As the boss, you must have the detailed know-how of how the site works, costing, tender procedures, good contacts (sub-contractors, suppliers, JKR, TNB and police). Actually, there are a lot you need to know, most importantly you WILL need to know more than the supervisor you employed.

I am also in this industry, but I didn't start where edyek did. I did Diploma in Quantity Surveying and started working as a hard labour to gain the skills and experience.

true... you need to have it all....

i mean, you need to have the technical, experience, finanacial management, project management, people management, communication skills, risk managements, and most of all... connections

@zeneyam, as @Jordy has said, yes you need experience in this field. This is not about normal business whereby you buy and sell. Construction industry is hard work and time consuming sector, but the reward is also lucrative.

@Jordy, I'm also graduate in QS (Diploma).

Correct. Connections is one of the crucial part in construction.

zero experience/planning in this sector is imminent failure

edyek,

From my experience, the reward can also be little as contractors can face losses too. Contractors risk not getting paid, and there is currently still no law that protects contractors in such an occurrence. Contracting is a high risk high return game.

Awakened_Angel,

Well, there is a way around it. If you can partner with an experienced supervisor or contractor, then you could avoid the failure, but you risk being cheated and getting less profit.

true.. i`ve seen many contractors went into bancrupcy during 2008 olympic when steel price rise to 4k++ and factory face extreme loses after it ended which make the steel price drop to below 2k

many fail this way.. even the partner is 20 year old buddy or real brothers....