Post to SinFongChanRE.wix on 9/12/2017 at 10:58 PM
Commenting on “The brutal reality of Australia's franchise king”
http://www.theage.com.au/business/retail/cup-of-sorrow-the-brutal-reality-of-australias-franchise-king-20171207-h00lbl.html
A few weeks ago, I had a "discussion" with a reader about small business operators running brick-and-mortar outlets. I believe that many of these are either owned by migrants or people who can’t find employment except to become bosses. My views have not changed.
For years, I disagree with the official ABS data of unemployment rate, because the definition of employment is absolute rubbish. Any person who receives pay for 1 hour work during the survey period is considered as being employed.
A couple of new migrants had approached me when they were looking for business opportunities. After doing some simple calculations, I found the sums not stacking up and they were convinced, if they were to follow the laws and tax obligation, they would work for nothing except for the benefit of the owners of the premises or franchisors. They would also lose something thing very precious to them called the “family”.
Those who have not own or run a business before, whether a small, medium or large business, coming to start one in Australia will face a lot of challenges. Given that they may have the money to kick start the business, they still need very supportive people around them, especially for those with young families.
If you are one of the volunteers collecting unsold bread from Bakers Delights or Brumby’s for the church or underprivileged, you wonder who in the world with a bit of grey matter in the brain would throw away such big amount of bread each day. In name, these could be written off from the business operation, but isn’t it better the money goes to the Profit at the bottomline in the Profit and Loss Statement?
Many business operators have been misguided it is ok to make or declare losses for the first couple of years. This is nonsense. Some may argue that these are just paper losses. Two years is two years too long and too precious to lose. Unlike property investment, in two years time, there may be more similar business entrances or players in the area, and your hope to gain a foothold in the market may just disappear.
For some migrant friends who want to start a business, ask yourself the question - can you or someone you know or trust help you market your products or services? Without sales, you have no income.
Equally important to understand is the amount of outgoings. The major one is rent. If you are a one-man band or husband-and-wife team that you may survive initially with minimum withdrawings from the business; otherwise staff wages are going to chew up all that you’ve earned, and make you see red in the financial report.
Do consider kick start with a home-base business, and let your legs not fingers do the walking. Unless you intend to run an online business, the real clients are out there in the shops, offices and in the streets, not just in the Cyberspace.
Many people think that they need thick skin to “sell” things, but I can assure you, to be successful in sales, you need the right mindset. You need to ask the question from the target audience’s perspective, “What’s In It For Me” WII-FM - the FM station you must tune in mentally all the time!
I appreciate if you can leave me a message or comment so that I know I am getting results from what I have been “preaching / teaching” - reaching the right target audience!
Thank you for reading
Commenting on “The brutal reality of Australia's franchise king”
http://www.theage.com.au/business/retail/cup-of-sorrow-the-brutal-reality-of-australias-franchise-king-20171207-h00lbl.html
A few weeks ago, I had a "discussion" with a reader about small business operators running brick-and-mortar outlets. I believe that many of these are either owned by migrants or people who can’t find employment except to become bosses. My views have not changed.
For years, I disagree with the official ABS data of unemployment rate, because the definition of employment is absolute rubbish. Any person who receives pay for 1 hour work during the survey period is considered as being employed.
A couple of new migrants had approached me when they were looking for business opportunities. After doing some simple calculations, I found the sums not stacking up and they were convinced, if they were to follow the laws and tax obligation, they would work for nothing except for the benefit of the owners of the premises or franchisors. They would also lose something thing very precious to them called the “family”.
Those who have not own or run a business before, whether a small, medium or large business, coming to start one in Australia will face a lot of challenges. Given that they may have the money to kick start the business, they still need very supportive people around them, especially for those with young families.
If you are one of the volunteers collecting unsold bread from Bakers Delights or Brumby’s for the church or underprivileged, you wonder who in the world with a bit of grey matter in the brain would throw away such big amount of bread each day. In name, these could be written off from the business operation, but isn’t it better the money goes to the Profit at the bottomline in the Profit and Loss Statement?
Many business operators have been misguided it is ok to make or declare losses for the first couple of years. This is nonsense. Some may argue that these are just paper losses. Two years is two years too long and too precious to lose. Unlike property investment, in two years time, there may be more similar business entrances or players in the area, and your hope to gain a foothold in the market may just disappear.
For some migrant friends who want to start a business, ask yourself the question - can you or someone you know or trust help you market your products or services? Without sales, you have no income.
Equally important to understand is the amount of outgoings. The major one is rent. If you are a one-man band or husband-and-wife team that you may survive initially with minimum withdrawings from the business; otherwise staff wages are going to chew up all that you’ve earned, and make you see red in the financial report.
Do consider kick start with a home-base business, and let your legs not fingers do the walking. Unless you intend to run an online business, the real clients are out there in the shops, offices and in the streets, not just in the Cyberspace.
Many people think that they need thick skin to “sell” things, but I can assure you, to be successful in sales, you need the right mindset. You need to ask the question from the target audience’s perspective, “What’s In It For Me” WII-FM - the FM station you must tune in mentally all the time!
I appreciate if you can leave me a message or comment so that I know I am getting results from what I have been “preaching / teaching” - reaching the right target audience!
Thank you for reading
