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

Sold off my laundry business also.

In my opinion, cash flow business for me is short term to raise capital and cash to venture into my long term business (construction) and invest in land banking and commercial property.

Business : I love business. I love the thrill and challenge of it. Business provides me cash flow for monthly expenses but not assets.

Properties : I realized to have a stable financial in my late days, land banking and commercial property is the only way to go. These both does not goes out of time, but business do.

My strategy : Get in a business, build it up and sold it off for a decent profit and invest in properties.

The reason I sold it because I want to raise some capital and cash reserve for investment in land banking and commercial property. I couldn't find any person to manage it for me, as my current status is alone. My family was not in the same city as I am right now. Therefore, I choose to sold it off. My latest venture is seaweed cultivation farm.


Yes. That is correct. Thanks for the clarification. Too much business at hand will make me haywire.


Thanks. Got the blood from my father.


I used to have the same dilemma as you when I 1st started the computer sale & service, and Yes I've fail in my 1st biz. It really needs some pushing and courage to go through this. But if you have taken the 1st step, the rest will come.

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Added on December 20, 2009, 1:29 pmI've open a thread regarding this at Property sub-forum.


Agreed, You are having the same experience as me. Nowadays, computer business are really not suitable for small players and business starters. Technology keeps shifting into more advanced stage, and you just can't keep up with all the stock.


I've look over this business and I'm still thinking is it viable to venture into this. So far, there are only 2 fields setup at my location whereby it is urban type. The one you play in a cage. I've seen some field with forest battleground and old warehouse. If I would venture into this business, I would venture in forest battleground and warehouse.

My concern is:
1. Capital - You need to buy a land/ware house or rent a land/warehouse (cheaper).
2. Equipment - All the guns and stuff
3. License - Still pondering where to get this register.
4. Staff - Experience staff and refree.

Anyone here have the experience in starting this business?

*By the look of it, I don't think it suits me. I've don't play paintball, and I guessing it needs around 50-100k to setup everything? or maybe more.

This post has been edited by edyek: Dec 20 2009, 01:34 PM

Phillipine/Indo workers. Im not located at west malaysia whereby the workers wages are more higher.
The laundry staff is local people. We wash nearly 200 kg per day. That is why 10 workers are adequate.

Yes. I'm located at the east coast of Malaysia, Sabah to be exact.

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Added on December 20, 2009, 7:36 pmCorrect. From my point of view, if i don't even play paintball, how can I ever know whats the selok belok to running the field? After some thinking, its not the business that I would venture in.

This post has been edited by edyek: Dec 20 2009, 07:36 PM

Hope this thread provides you a base line about what kind of small and medium cash flow business that are good for business starters. Good luck.

Nowadays hardware business seems hard to survive, especially those with small capital and surviving in the city. It is not thriving as the golden age 5-10 years ago, whereby there is massive development.
In this kind of business, plus others like distributing or manufacturing etc., whoever gave the most flexible credit term is the winner. And for small capital players, this is bad bad bad. Very very bad, as you need cashflow to cover the overhead and expenses. Unless of course you have a list of major good payer, then that would be fine.

I've a friend who venture in hardware shop in a small town. And frankly speaking his business is good. As small town does not have big players, and he sweep almost all the hardware business in town.

Angel, do you go and tender some big contract? Supplying paint, ironmongery, doors, etc?

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Added on December 21, 2009, 3:14 pmCapital.
1. Family
Always approach your family member 1st, as they are the one who will always support you.

2. Relative
Sometimes in life, we do have an uncle/aunty who is rich and nice and is willing to pour in the capital for you.

3. Friends
Invite your friends to venture with you and become your partner in business

4. Bank
Personal loan, charge in your family asset such as house and land. (this I do not encourage)

5. Your savings
If you are prepare to lose the money. Business are not 100% successful.

6. Lucky strike on Jackpot, Toto and etc.


I start my 1st business when my friends invite me to join them, and I asked my dad to pour in the capital for me. Before my dad said yes, he ask me where is my Business Plan. And I told him verbally and this and that and all the things that will get him in to pour in the capital. Finally he agreed.

After half of year of loss, I closed my 1st biz. And all my dad told me was, I know that you would fail because you don't even have the slightest idea about what you are doing. You must know the selok belok of the business and dive into the sea to see the whole iceberg (not the tip only). From that day onwards, I always prepare my bullets before I fully venture into a business. And the rest is history.

*My 1st biz is Computer Sales & Services (a painstaking experience).

This post has been edited by edyek: Dec 21 2009, 03:17 PM

Correct. Money do change people. Since I've tie/bond with my father, I don't mind borrow from him to venture in business.
Anyway, after my 2nd venture is a success, I've allocate shares to my father in my company (after all he had invest in me for the 1st biz).

Of course if you use your savings it would be better, but some people just don't save enough to give themself a head start in business. Eventually, they would still have to go and ask for .

Just be careful when you choose your partner to venture with you. I've learned my partnership lesson in the computer and nasi lemak venture. And now, my partners are doing great ! Never could have ask for a better one.

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Added on December 21, 2009, 4:28 pmThanks am. If I'm not wrong, I do recall from some thread that you are running a laundry business. How is business lately? Mind to share here?

This post has been edited by edyek: Dec 21 2009, 04:28 PM

Ah, so you ask for cash terms and in return you give them a better discount?

I think you can approach some small and medium housing development. My friend approach a medium developer lately to supply paint, doors, ironmongery, WC and tiles. And he contra back half of his contract sum for a unit of terrace house. Not bad actually, considering the developer don't want to input heavy payment, and my friend wants a housing property so that he can sell for higher price upon completion of the project.

It's good to hear that. So basically, you sub dry cleaning from 6 laundries because they do not have the technology/knowledge to do dry cleaning? Good strategy.

40k is good money. Must be a 5-star hotel? Considering hotel contract contributes the major income for the laundry. There is no such thing as free lunch, and hope your learning is a smooth sailing thus adding a major income to your business. Good luck !

Btw, did you take any government contract?

This post has been edited by edyek: Dec 21 2009, 05:04 PM

The worker is just helping to sell every morning. Its my partner problem for not supplying enough food to sell.


That one worker is just a part time computer technician, working from 12pm to 5pm. Basically all the work is done by my partner.

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Added on December 22, 2009, 8:46 amCorrect. Perseverance is one of the key to business. Sometimes the pioneer is not always the winner but instead the survivor is the winner. Most indian is good is doing mamak business, but often I hear my friend complaining that they tend to pay their rental late, and sometimes carry forward.

This post has been edited by edyek: Dec 22 2009, 08:46 AM

True enough. My relative is having a small budget hotel with 15 rooms, and he do send his linens to laundry. And astonishingly he have to pay more or less RM 5k per month to get his linens clean and smell nice. I would say the major hotels sending their linens clean would be 2-3 star hotel or budget hotel.

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Added on December 22, 2009, 9:09 amI do have this wild dream when I first started, until I get a heavy whack from the failure from my 1st biz, I realize dream is just a dream. Being realistic and having an achievable dream is the right way.

My dad advice to me is "Don't wander too far off from your goals."

This post has been edited by edyek: Dec 22 2009, 09:09 AM

Replied to your thread.

It is not legal.
However in Malaysia, there are no enforcement to enforce those copyright laws. My friend is studying in Australia, and their Uni strictly do not allowed photocopy Text book. He come back to Malaysia to buy the text book using RM (which is way cheaper), get a few extra books and bring back to sell in AUD.


*If the Uni is providing architectural course, therefore your colour printing services will have a big boost.

This post has been edited by edyek: Dec 22 2009, 11:50 AM

Unless of course the publisher are pissed off. If not, there are no one to enforce those things. But better not to take the risk.

goldfries, I have updated my post with all the items you asked.

This post has been edited by edyek: Dec 22 2009, 03:55 PM

One thing for sure, there are the dark side of it. I've seen a guy selling pirate CD in a shop at the mall and after 1 year he opens another 1. Until recently he just open 4 shops at different mall.

Yes. Could be a viable business. International Trade.

F&B line is a wide industry. What do you have in mind? Cafe? Kopitiam? Restaurant? Franchise F&B?

Well said.
There is a time when I decided to open a rest stop with food court. And I've been to MacD to work just to see how their works to apply to the new food court.

Thumbs up to room rental for students. Area nearby Taylors college is a good location. Good luck in searching for a good location.

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Added on December 29, 2009, 9:30 amCouldn't agree more. Have the same experience in the computer sales and services venture.

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Added on December 29, 2009, 8:59 amToo many things to consider...
Up till now any idea what biz you plan to start?

This post has been edited by edyek: Dec 29 2009, 09:33 AM

Nike says it better. " Just Do It ".

Same thing goes with Sabah & Sarawak. They are locals. And locals are not cheap considering they are in fact at least primary 6 educated. I'm using foreign workers as well as they are more cheaper than the locals. More hardworking and more loyal (compare with the locals).