My Friend is Starting a Business

I caught up with my old school friends during Chinese New Year celebration two months back and we had a very interesting conversation about venturing into business. The major players in the conversation are Mr Dare Tudu, Mr Study Lor, Mr Cyni Cal and of course, Mr Specky Pilot.

Dare Tudu initiated, “I wish to venture into women’s jewellery and accessories business. Do you guys think it’s feasible?”

Study Lor replied, “Must do market feasibility research first lar…”

Cyni Cal added, “How much is the start up cost?”

Dare Tudu said, “Very low man. I know people buy the beads in bulk. One big bag only costs a few dollars. Especially if you buy from Korea or China.”
“But how about the import costs?” Cyni Cal interjected.

Specky Pilot spoke for the first time having just joined the conversation after grabbing a beer. “I remembered walking past a similar shop in Central Square Shopping Center yesterday.”

“Still can do lar… The market is so big. Some more the start up cost is so low. I just need someone to design and make the jewellery. Shop floor rental is not that high in this small town.”

“But how much can the profit margin be?” Cyni expressed his opinion once more.

“Hey guys, don’t you know 95% of the business start-ups close down within the first 5 years? And those 5% that succeeded has probably failed many times before.” Study Lor adjusted his spectacles.

“What 5%? I think less than that ah…”, Cyni Cal again.

“That is the problem with you all university graduates. Everything must do research. Everything must come up with a written proposal. By the time you do all that, the market is already saturated with the products you want to sell. Just do it lah, why scared?” argued Dare Tudu. He is not a university graduate, but has since opened up two internet cafes.

“Guys,” Specky tried to analyze. “Doing business involves taking risk. Most of the people like to stay in their comfort zone doing what is familiar to them. When they have decided to stay comfortable, they are not willing to take risk. No risk, no gain, as simple as that. People who succeeded are those who are willing to take risk and fail. They are the ones who don’t give up easily. They action, fail, learn from their mistakes and action again.”

“The higher your academic achievement, the more psychological barrier you will have to overcome. Because more often than not, your ego will be like this high,” signaled Study Lor with his right palm horizontal above his nose.

“That’s why there are so many motivation seminars and courses for entrepreneur these days. Because entrepreneurs need motivation everytime they fail. He he…”, laughed Cyni Cal.

“Still, people want to venture into businesses especially restaurant business. Every now and then, you see new eating joints spring up here and there. Close down, new ones open again on the same spot.” Dare Tudu sipped his Tiger Beer.

“Yeah, because people still think that venturing into businesses is one way to make it big. How to get rich being an employee all the time?” Study Lor had done his homework.

“I agree, man. Unless you are the top 1% employee of the company like CEOs, COOs or someone in that category,” Dare Tudu expressed his wisdom.

“There are also people who venture into anything that makes money: pirated DVDs, imitated branded goods and so on. There was this friend of mine who came to me the other day saying that he managed to get a batch of mobile phones from China at a very low price. He asked me whether I am interested in joining him in distributing the phones. When I probed further, the phones didn’t come through a proper channel. Those one-time high profit margin businesses are not for me. I go for the long term.”

“Dare,” Specky looked at Dare Tudu in the eyes and said, “please don’t let us stop you in taking risks. It is common that friends will always discourage you from doing things that are different from what they are doing. At the back of our mind, we will always like to stand and watch. If you succeed, we will love to join you. If you fail, we will take comfort that we didn’t take the plunge together with you. Some might even say, “we warned you beforehand, didn’t we?””

“Everyone wants success, but not everyone wants to sacrifice,” Study said coldly.

“Aiyah! NATO. No Action one, Talk Only lar!” Cyni Cal being his usual self.