Maybe i should share mine as well.
Business Fail and Gone Wrong - Very Failed
Type of Business : Transportation of Goods (East Malaysia - Sabah)
Started Year Jan 2005 - April 2007
Capital : RM5,000 (Each Person)
Period : 2 years +
Person : 5 partner (But only 3 in the Enterprise Trading license)
Vehicle : 3 Ton Lorry (Upgrade to 6 ton Load)
Worker : 1 Driver, 1 Hookman/Assistant
Business Load all good from KK Major Town to Mostly SDK/TWU/LD - Longest is Semporna
1 Trip = RM350 for the Fuel (RM180 for 1 Way)
1 Driver = RM300 for the Food/Stay
1 Trip Load = Worth of Transportation Fees = RM 1k. (The less is RM700)
Return from Sandakan = RM300~500 Additional Goods load back to KK (But not always, Once or Twice a Month)
If from Tawau/LD = Empty
Every Week surely have 2 ~ 3 Trips.
Simple Calculation = 8 Trips per month
= RM8k ++ (if plus the SDK trip back)
Driver Salary = RM 1.5K (1 Trip RM50) Commission the more the better
HookMan = RM400 (1 Trip RM30) to accompany the Driver and Unload the Stuff
Reason Business Failed due to the Main Con/Supplier.
He acted as the King of Transportation whom can give you more or less of Goods. Meaning have to jaga him also.
How he does ?
Since i mention all the Goods are from Him. Therefore, he can select the best of high income to any transporter. So He is the one direct deal with the Customer. OF course, i also go see the Customer and offer.
But what he does, he get the Goods, pass to me to send, and received the payment within 3 ~ 7 working days.
Lama Lama, he drag and say the Customer didn't pay weekly but into Monthly.
Findout, he use the money to pay his own Lorry (He got 8 Lorry) so he use the money to move swiftly around for his own purpose.
Lama Lama, say all the Money cannot be pay. WHY ? because one of my Partners whom claim is in the Transportation Business before is handling didn't get the Black & White thing to Sign / Chop
That time i was working (Makan Gaji) n use the Salary to cover the Operation. Man, it was my very down moment.
When all partners decide to stop. 2 have left, i mean not in the Trading License. Me myself wan to revive it but failed as the other 2 doesn't want to continue. Jual the Lorry and lucky i still have my job.
From RM5,000 Capital, i have fork additional RM6,000 for the Operation, Fuel and even Driver. Because i belief if i can overcome the DOWN time, i am sure will be a hit since i see the Opportunity but i was been CON in the first place. The Business was a CON, as it was intended from the very beginning moment.
Therefore, i learn. FRIENDS is always FRIENDS. but BUSINESS is BUSINESS. and Evertyhing you do in LEGAL Business please please get it BLACK & WHITE. Sometimes friendship hurts when it comes to MONEY.
Hi Manuk, your story are really inspiring and it is a very common mistake that happened in partnership which build on FRIENDSHIP.
Every agreement or entity should get it black & white, and also for accounting. It's very sensitive when come to money which some people might not have ethical may lead to undertable transaction for all. Again, this case always happened in those partnership with 'brotherhood'.
Getting a right buisness partner is very important.
May your new venture get the right business partner & strive for your business.