I have ventured into many investments areas and portfolio. Most of which failed before it can even return any serious ROI. To which, I would lose some and at worst (where mostly worst), 100% of the investment.

I sit with people who at first excited about what they have thought of. They explain and present beautiful ideas (beautiful is from their perspective), although some of it is something I do not encourage (e.g. F&B), but their eagerness and persistence normally led me into thinking "Ah... what the heck, why not?". Now, it's not that I do not think F&B will not work, but not from a perspective of an Investor. Let me explain further.

A Food truck, Cafe, Restaurant ....
1. There's just too many of it.
2. Too competitive.
3. Unique concept will not last unless you keep innovating. And Innovation don't last. Someone will copy and beat ahead of you.

"BUT, If you're planning to feed yourself. Then yes."
1. Food trucks can easily score 100 sells a day.
2. Fusion concepts with 5-10 bucks per meal can do 500 a day (15k a month sales)
3. 40% goes to your Cost-of-goods-sold. 10% goes to assistance salary and maybe another 10% to MICS & maintenance. Now, this is considered efficient and optimized to which your waste-management is top-notch. Those in start-ups normally failed to leverage this and their end-day income are usually 30% or less.
4. Roughly, at 15k sales. You're still able to walk away with 4-6k a month and this is self sustainable. To an individual? Yes. From an investment standpoint? No.
5. Lets not dwell much on why it's not invest-able as the risk factors are too dynamic and the single-point-of-failure can wreck the entire business down. (Single point of failure? ... Well, if the guys runs it decide to take a break or give-up, investment is screwed).

Drop Ship? Well, the market is dynamic now with online retailers are popping everywhere. Something unique today is too competitive in a month and will be obsolete in 6 months.

Investors needs something not just around the ROI, but something that they can see running even after 2-3 years in business. We need something solid. Youngsters nowadays failed to look beyond that point that is why when they just jump into a portfolio, most of them failed. They do not know how to manage their accounts, risk, diversification, use the best tools, find the best options, sit down and really dig into the business concepts and thoroughly simulate it. Their lack of patience and critical to comments, makes them a risk to the eyes of investors. The moment someone challenge their concepts, run against it, comments on it.... they get hot headed, blocking you out completely rather trying to explain and face the challenge.

Many nowadays failed when it comes to that. Challenge them, and they will give up trying to convince you. These are not the kind that investors look. We want our money to go to someone that could really stand their ground, convince and push forward. How the heck do you convince the public and keep things running when it gets hard when you can't even convince the investor?

What investors need.
1. We need something that's not just break-even
2. Something that could last
3. Driven by someone that is serious and would persevere.
4. Even if the business model is similar, existing concepts, but they know how to make it work. Convince. Show data. This is where they lack.
5. We don't need someone that give up answering before it even start. (E.g. How do I know? We haven't done it yet.... kinda mentality)


Many business fail because they lack "Sustainability". And when the word sustainability comes ... all they can think of is "More Capital". From my experience, most of the youngster I've meet are just too pampered (manja). They want something. Hoping to get it done fast. Hoping to make it big fast. Hoping to get rich fast. Hoping to live the easy life fast.

(to be continued.....)

Susah get the right minds...and talents

Not looking at long term, mostly want overnight success

Sikit-sikit throw in towel

Malas

hire too many hot chick OL who cant deliver result

your office got?

ex-SIA and ex-JAL stewardess yo

they can deliver eye candy,
thats results too..

my ex-school junior straight A girl student,

her parent sit merc and cefiro , live in tambun indah,

she was highlighted in chinese papers , her dad ask her to further study after spm but she choose to become businessperson ,(dad keluar duit)

open huge corner bakery shop , hire alot schoogirls , then business no good,sack people and become less n less staff.

then no people , they convert into seafood restaurant , but in the end also bungkus

in the end also bungkus all together

This post has been edited by DSEcomp: Oct 9 2016, 03:16 PM

What do you think about those food chain restaurants? worth it?

sign me for 5 seminars, i want 100% improvement

i see

not bad, can make quite a bit of money eh

What happened next? Work 9-5 as SPM holder?

thanks for the advice, I think this is quite informative

i have a business plan in the making with my friends and was thinking of going for MaGIC. but not sure when the new application will open

want to ask if anybody know something similar to MaGIC, as in that can not only give you grant or seed fund for your project, but also teach how to run a startup

The only concepts that's tested and lasted through time is "MAMAK". Chatime, and others ... got in first and penetrated the market right. Duplicating similar concepts is not advisable in today's time. Yes, food business can work but depends on what business. How much is investor willing to throw on a new food chain business.

Everyone is "openly saying" economy is bad, people loosing job, government have no money, but failing to understand these are not important to us. We need to stop talking too much and start thinking. Regardless of economy, people still eat. People still move. People still gets sick. People will still buy. There's always opportunity even in the worst.

To give you an example. I've favored those "Seafood" restaurant and have always look into ways of making one. But you see, I don't have the expertise although I may know people. Maybe in 1-2 years time or maybe when I bumped into someone that might know how to make it work, I'll throw my money in it. Why? Look at those seaside in Melaka, NS, where seafood restaurant flourish like there's no ending. People will pay to eat and these are the kind of business that could last. But those concepts got it right because they're at seaside and even if that may be a factor, we've seen several in Port-Klang that died. So, it also depends on how we make it happened.

But trying to duplicate similar concepts in KL/Selangor Central Areas is going to be tough. Unless the location is good, niche, ... the food is similar everywhere. In the end, it's just the concepts that got it working. (Primary Factor). Getting people to talk and how social media tend to over-hype it and make the business grow with attention .... etc... these are all secondary.

So again, it depends on what kind of chain restaurant are we looking at here. If you're to challenge fast-food-chains or instant-mix, look through the concept if it's something socially lasting or not. Too many havoc at the start and the buzz just die after few months.

But then again, There are many investors here that scout for talents and ideas. If you have something you think might work. PM us.

The bakery near her house?

Park

Im here to see ts rant and educate us a little

Parking.

Gooding thread detected

No thread would ever please you.

1. Don't take too long.
2. Don't make yourself look naive asking for questions that you can get the answer easily. Call up Magic. Stop asking and start moving. This is the first sign of procrastination in the eyes of many.
3. Look at existing business that have developed through Magic. Is the output is something that match against what you favor? MaGic is not the only platform for Entrepreneurship. There are others. Learn to research and use google better. One sign of failed business is having candidates that ask too much and failed to learn by themselves.

We need to understand few things. There's no guarantee in Grant or support from Government or any agencies. I've seen many promising ideas felt on deft ears in the end. In these current times, loans are hard to get. Many promised grants have gone unanswered. Some are even abandoned halfway.


It's doable to get into magic. Unless you've tried and failed continuously, you need to start looking into why they're not taking you. But if what you have is radical and is something worth it (just the fact that the listeners are not critical enough towards you), some of us here can pull some cables and see how we can help you. But rest assured that you need to be better than convincing.