Hi all,

Is 20k enough to open small biness? Not shop or wat la.. just small bizness

20k include set up of stall and initial equiptment and stuff..not the monthly cost as it wil be sustain as the bisnezz operate. I mean initial only.

what small business? if your answer is 'duno', then we cant answer liao

kalo stall cukup..kalo kedai memang x ler..

what scope you are currently eyeing on?

actually im also interested in knowing this

Stall jual nasi lemak at roadside enough. Make sure you have a getaway van.

If business is service based, then RM20k should be ok.
If want to sell some products, this figure surely is not enough, unless you can get credit term from supplier.

YES. and NO.

Depending on your business.

Too little information, TS.

Biznes like chatime or sell ice kacang in shopping mall. So set up the kiosk. Rm20k enough for initial startup? The stall and stuff la. Then other is during bizness only kira. Should b ok right?

More than enough I presumed.

chatime definitely not enough.

im not mean chatime la just example of something similar.. maybe ChaWintersun but sell bubble tea or fruit juice..

Cos i not talking about franchise.. franchise the fee already 100k.

Buy n renovate stall and buy kitchen equipment cukup meh 20k?

how about 20k open car wash center ?

Stall at malls not enough la. How much is the rental? I heard the monthly rental is rm4000 is certain mall. 2+1 deposit already cost u rm12k. U have rm8k left to buy machines and ingredients.

Car wash beside open car park should be ok I guess. Only thing that cost u a lot is the vacuums I guess

If make fruit jucie rm12k shud b enuff for the machine like blender and stuff. Then maybe add abit to reno the stall like put counter, signboard and stuff.

you need 100k at least for shop.

Rm12k is just for renting the place. Renovation could cost u few thousand, signboard and license 1-2k. Make it rm15k to set up. U calculate how much is ur machines, fridge, and ingredients cost la.. Unless u rent the fridge and machines la.

thnx hey there.. can i ask if u r a business owner who have experience set up b4?

I guess i can just top up a bit more to start my biz right..

Depends on what kind of shop I guess. I spend rm20k each with a partner to open a shop. Total rm40k inclusive of rental deposits, signboard & license, renovation (got it cheap from relative), equipments and air conds, and stocks.

obviously not enough for ur scope.

if u open roadside burger stalll, then more than enough la

20K is enough for a small online buisness,if buka kedai is a big no,gerai makan maybe still can..

I have no experience setting up a stall. I open a shop. I personally think shops/stalls in malls are much more complicated.

My friend recently open stalls in mid valley and empire mall. If u heard of the name akachan no hoppe, selling Japanese rice balls. I roughly calculate, it needs rm100k to start. But he did it BIG la.

mid valley is a big croc location la,their agreement and rental is kao kao one..

Agree.. Coz u'll save a lot in rental, deposit and renovation

plz dun insult me.. 20k is more than enuff for roadside

ya buka kedai i agree is too small cos renovation of shop and interior furniture is kinda expensive.. online business cost much less than 20k la

thnx.. ugpm

Yea, the stall rental of rm4000 is the price that I ask many years ago in sg wang, top floor. I bet it's much more now. And yes, my friend's father owns quicksilver and roxy malaysia. Sure he can afford. 2 stalls is less than 6 months.

Depends on your location and product. If locations like MV definitely not enough. The Curve flea market is already charging like 120-180 per day depending on your spot.

If you have a lot of products of course you need to get a lot more ingredients.

If it's just a simple setup at a 'reasonable' it should be enough for startup, you need to take account of your running costs. It might be more than you think.

120 a day thats crazy.. more expensive than rent shop la if want open everyday

yep,just to renovate the shop in terms of flooring,lightning,island/display rack,counter,pc..etc etc..
it will cost u a bomb alrdy..

well,20k is just comfortable for online buisness,u still need a proper webpage,advertising,license,accountant..etc etc..
(if u want to do big la)..

if want to do small then 20k is ok-ok.depend on wat u sell..

Maybe can consider pasar malam. At the same time, u can test the market and see whether ur product can sell or not b4 u go into malls.

yep,and the agreement like XXXX geh..but what to do..ppl big mall..they possess the upmost rights..and the walk flow they is really high as well..especially weekend..so is a give and take lo..

fuuuuu...ur friend is one lucky guy..those buisness they steady steady geh..

sg wang now reno alrdy mah..high class alrdy..rental also high class lo

i kinda agree with this..
and dont need to aim big mall first,aim for those simple shopping mall,and then focus on ur advertisement on fb or lowyat..

build a customer list first..when u confident slowly go higher..

deploy a base by base..dont rush..

20k if plan wrong..sekejap aje gone..

Small money big thoughts... try with small money small thoughts... open your small kiosk at open air hawker centre also not bad... like ss2 there always busy got hungry hungry hippos...

Your rental also not as high as midvalley but you get the traffic you want... ofc in the FB world, you 'lose face' la abit...

oh no la im not aiming for big malls.. Im also doing a detail planning and din rush to open many chains at once

20k for initial set-up, with nothing left to cushion subsequent operational costs?

NO way.

How daring of you to assume that you'd turn an awesome profit upon day one of opening.

no operational cost cos is small business. Worst also is only gaji pekerja at end of month but sure wont la until 1 bizness also dun haf.. Maybe enuff to cover then not get profit at 1st month or so..

If big business then i understand la need operational cost. Correct?

Rental and deposits gonna cost more than that already in shopping mall..

yeah thats my main concern too.. so i haf to scout for reasonable rental mall if wanna start at that budget

depend on what business and location. rent, equipment, salary, stocks and some reserve cash. 20k very tight la..

Nowadays, 20k is to pay rent only if it a shop.

Road side stall then ok. Ramly burger also need 6k

It's hard to say. I don't have any biz during my 1st month. Biz starts coming in from 2nd month but not enough to cover operational cost. It is normal for new biz. To be safe, u must have enough money to sustain for 1 year in case ur monthly sales is not enough to cover ur monthly costs. Not being negative but u must prepare for worst case scenario in biz. Must always have plan B, plan C or more...

Hmm, this thread is interesting...

wanna ask what about service biz? Say for instance, a real estate agency or property management company and valuation firm. Or all in one.. One stop services? Anybody have experiences in this? It usually cost how much? Will open a few branches in different different areas.

If u r doing it small should be enough. Small as in not many PC. U can buy 2nd hand tables, chairs and cubicles. Might need to spend some money on a/c, carpet etc. but nowadays, u can look for a place with semi furnished for office used. Some places with ready partition and carpet suit for office use.

+100.

Talking from experience. Be prepared with fund capital minimum 10 months to 1 year to cover rental n ur minimum living cost. New biz takes time to take off....my ex boss when open new branch standby minimum 1.5 years without any meaningful operating profit...

WOW. thanks a lot for the input never thought of 2nd hand furnitures. You must be very experienced in setting up business. ..  

20k to set up a kiosk inside a shopping mall is insufficient as malls requires us to pay at least 3 months rental up front. On top of that,the rental of kiosks could be as high as the rental of a shop lot. The cheaper option is to set up push carts.

agreed.. my budget of rm40k also not sufficient let alone 20k...
if anyone know a good place to rent inside a shopping mall, fnb item
(budget for rent is rm2.5k monthly)
do let me know...

What kind of biz is yours?

Which mall u ask? 40k not enough for the rent or everything? Kiosk only wor

How many months u tahan before businesses start picking up?

around puchong/ seri kembangan area..
if rent enough, 20k already enough, but for setup + 6 month overhead expense...
nope...

yup.. im targeting kiosk...

This post has been edited by slowkancil: Jan 1 2014, 09:01 PM

hello taikos,

i am starting uo a business with quite the same fund, would like to ask if opening up a sdn bhd directly or just start small with enterprise ?

sdn bhd need 100k profit only can register

tq wintersun for the advise

error suspected!

Wintersun,

you don't need 100K to register, a sdn. bhd. can be registered without any money in it. In order to register for government of malaysia tenders and other GLC's business they would ask for your paid up capital and that can be the requirement for 100K. Now, paid up capital, if I remember correctly (please correct me if I'm wrong) can be achieved in 2 main ways:-

1. To place a RM 100K deposit into the company account and take the deposit slip and give it to your company secretary who will then charge you a service fee to complete the 100K paid up capital process or;

2. To use the various deposits that you will be getting throughout the time that you are in business and provide to the company secretary who will then charge you a service fee to complete the 100K pad up capital process.

It all depends on the speed of your requirement and upon providing the deposit slip to your company secretary, you can immediately take out the money, or at least that was what I did when I started about 9 years ago. And further more you don't need to have 100K in profit.

The Government of Malaysia also has tenders which are for enterprise based companies and I believe that it is usually under RM 200K or so (again I am not sure you will have to check on this). But if your desire is to do business with the Government of Malaysia, you would have to register yourself with eperolehan and to get the necessary bidangs to be able to transact with the government. This applies for either Sdn. Bhd. or enterprise.

About the 20K budget to start a business again, everyone in the thread has given excellent advice. I can relate my own personal experience. I had bought a small tom yam kedai 3 years ago. I had bought the shop (actually it was a "warong" under the tree in a taman), for RM 13,000.00, that included the 6 people (I was shocked because I didn't think I could buy people nowadays), 10 tables, 50 chairs, pots, pans, 2 cooking stalls, 6 drink stalls and others. After paying the money, I had to put in another RM 3K for the purchase of the weekly ingredients. Surprisingly, after 3 years and looking back at it again, I have never had to put into the business any other money. The daily take was able to settle the daily operation costs (gaji and others) and since we bought our "groceries" weekly, the weekly take was able to settle that also. It had been that way for the last 3 years with a slight change, where we had gone from under the tree to a proper shop lot, but that took about 2 1/2 years. So good luck in your endeavor, and I am always excited to see the young people of malaysia interested in setting out on their own. Have fun.

Hi shah,

Thanks very much for sharing your experience. For 13k you get quite a good deal. When you move in to your shop, is the operation smooth and bizness able to cover operation or you need to start building up your bizness again?

lol really..

No la. Coz I have very little fund to start my biz too. Just have to remember, all these doesn't generate biz. Whether u use brand new or 2nd furniture, it doesn't change ppl to take ur service.

12 months.

wow.. thats really hardcore..

so u tahan 1 year for your business to pick up and continue rugi? if me i think max 6 months rugi already give up

Wintersun,

Yes it was a good deal in the long run. Once it was in the shop it is business as usual, I still haven't had to top up any of my personal money towards the tom yam, and all upgrades was paid by the savings that we had put aside within the tom yam's account. I know I was extremely lucky, because even the guys that came with the warong is still with me after all these years...

Excellent idea on the 2nd hand furniture shop... . For our new office, I plan to do all my furniture purchasing using the 2nd hand furniture idea. A friend of mine introduced me to chaitradings.com.my. They display all their furniture on the web. Seems like a good place to start and I see their price is lower than expected.

Good Luck.

Shah.

There's many shops selling used furniture in malaysia. I found out those shops in google. With price and pic.

This is normal for biz owner la. It's not easy. But have to have plans lo. Most biz owner don't get paid in the 1st few years. Whatever money that u earn, will have to pump it back to biz.

Depends on where is the mall because of the rentals. Just a small stall 20k maybe just sufficient for first month operation? You should save up more and do some survey at the mall that you intend to start your business at.

At least have some spare cash in case the business during first few months are not ideal. So you won't have to end your business. Think in the long run.

best to look at what you areas are good at. that way the money can be put to good use.

if u invest in something you're not good at, then good biz also can lose money.

Its hair saloon in a shopping mall.

2nd hand market is booming as people become more cost concious. good luck!

Yes, I agree. U don't have to pay GST to buy used stuffs.

hmm, i did know that. hehe.

Alternatively u could use 20k buying auctioned flat in a good lication. Passive income of rm250-350 a month confirmed ....it might b my cup of tea but not urs....

but auction flat inside condition is quite bad fo rm20k, no ?

I have once plan to start a business with 30k on hand , selling something like bubble tea as well, RM 20k just enough for Rental ( RM 2500 at wangsa Maju Area, very small shop without toilet ) and Equipment , something like juicer 1.5k (slow rpm kind of juicer using squeeze tech) , blender 1.5k (those use in coffee shop), deep fryer (few hundred), pan (few hundred) , Kitchen stove (5k). And MOST IMPORTANTLY, you need 6 month additional money in hand to cover all the fixed cost (just in case that ur products cannot sell)

p/s : if your business is good , 1 juicer is definitely not enough if u are selling juice as main products, i saw those hawker using 4-5 juicer at once ( slow rpm 1 and those traditional 1 using blade techno - diff fruits will needed diff juicer for it best performance)

This many way to make money n b rich. Not only thru entrepreneurship. I realize I'm very interested with this field n keep trying n fail when in my early 20s.

But if u juz wana make lots of money n keep em... This other way as well... One of my fren is enrolling for a simple diploma course in Australia...2 years visa n once completed n u get a job thr gov will consider for PR status for u... Go the on a ticket as a part time student n work as hard as u could...the pay the is very high minimum wage is 16aud per hour...that's like rm50 hourly rate... One of my office colleague whose been the can save rm120k-140k in just 2 yes time.. Use the 20k in ur bank account as proof to get a student visa that u have the money to pay for ur course thr.. Meanwhile me working here want to save 10k per annum oso separuh mati lol...

RM20K is definitely enough. Starting off as a pushcart operator is not expensive, normally from RM 800 to 2000 you can rent a pushcart in hypermarket (depending on location). Usually, just 1 month rental deposit.
If you want to know what is best to sell, go to any wholesale center and see what is available. Personally, I think Ladies Accessories is the best products.

Go around shopping malls, hypermarkets to survey and see how they are selling and come to my shop in GM Klang to check your "Cost price". Then, do a simple calculation of Expected Monthly Sales - (Rental + salary + Product Cost).

This may not make you big money, but the risk is so much lower and a good way to learn how to do business.

This post has been edited by PM Borong: Mar 4 2014, 02:25 PM

erm, apply for a decent job.
(1) invest the 20k in stocks; insas (currently 0.87), furnweb (0.82), lafmsia( 8.83) ~ you choose which one to invest.
(2) every 3 mths put in the savings you put aside from your salary
(3) 36 months later, the money in these counters would be more than the small stall you intend to set up.

People looking for an apple and you giving them a durian.

durian better than apple. thus the durian. why give an apple when I can him the durian?

20k enough to open a handphone shop

decided on the biz yet?
any progress?

how small is small? a simple online business? hawker?

I decide to make waffle kiosk is it enough? Everyone loves waffle!

kaya ball + waffle. yum yum

I like Kaya balls

Anything can happen in 36 months and stock doesn't guaranteed goes all the way up.

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