The New HC Business Proposal

[machoman]

Originally Posted by imom

So, CE + Working Capital (assumed at 6 months) roughly equals $550k to $600k.... I think we need about 6-8 investors. Assuming NPAT of around $30k, that makes ROI roughly 20months. Sounds reasonable...

The key is to get at least 4 angpais. That should more or less make up your 60% utilisation....

Whatever it is, i want to be HR Director!! Heh heh...

imom, you can be HR Director but I will be the QC Director!!!

Zack, your business proposal looks feasible on 1st reading but I have not fully analysed the numbers yet. As far as I know, projections are often overly optimistic and unforeseeable expenses always adversely affect the bottom line.

Capex and rental are the major expense components of the HC business. The initial capex will normally cost a bomb unless you take over a fully renovated HC and thereby, save on this big-ticket item. Rental which is a fixed cost must be reasonable or else you will end up working for the landlord.

[Zack Tan]

Hi Bros.,
Thank you all for your comments. Let me address some of the issues raised:
Bro. Banana, You are correct to say that the proposed B/P is not complete. It's a matter of wheather of deciding which come 1st, the chicken or the egg. Concerning your question of the business opportunity, the JV's introduction and objectives spell out the direction and vision quite clearly albeit in a humurous way. Of course if one is serious about launching into this businees, then one needs to conduct a thorough market audit as this is the life-line of any business. I deliberately left out the team at this stage and invite feed backs from bros on this. We need a strong leader to lead the team eventually. Also agreed that we must have a back-up plan or more commonly known in management as a plan "B". What should one do in case your original plan is not working? What is the worst case scenario? The other thing to do is the critical path when one has finalise the B/P. So bro. Banana are you in or out?
Bro. Reaper, you raised some valid points concerning the business infrastructure and practices. Ultimately in depends on the integrity on the people running the show. You can have rules, procedures, and checks in place but if you have dishonest people in the team, it will not work.
Bro. Machoman & bro. Imom, Yes you both can be appointed HR and QC managers! I'm sure you both are amplely qualified and capable. These are the top jobs which everyone crave for but since you are involve in the business, sorry you both cannot volunteer to be in-house training models...ke,ke. I realised that in S'pore, rental and capex are killers of the businesses here. Many local businesses work for either the banks or the landlords!
Bros. we all dare to dream and the realization is not too far away!
Cheers,

[Zack Tan]

Hi bro. Justanut,
You are not "nutty" at all leh (pardon the pun) but rather creative....good ideas. I reckon you are a dreamer and not sure if the HC business need a creative director at this stage but you are talented...you sound unhappy with your present job...hm...maybe I can use you in my team.
Cheers,

[imom]

Originally Posted by machoman

...imom, you can be HR Director but I will be the QC Director!!!...

....The initial capex will normally cost a bomb unless you take over a fully renovated HC and thereby, save on this big-ticket item....

Ok ok.... As long as HR Director's duties include training and regular evaluation... heh heh...

Anyway, to take over a fully renovated HC, you still need to come up with a take-over fee, which won't be very much different from doing it from scratch - unless the HC to be taken over is a failing concern and in debt!

[JackieChan]

Haha, veri interesting indeed!

Just wanted to add tt it will be good if the "security" aspect is also well thought out e.g. deploy lookouts and early warning systems, to ensure tt no visit from the authorities is ever a surprise one (well, we can't stop them fr coming rite?) keke

some essential risk management consideration for such business ventures!

customers will also feel better if it is safe and discreet for them to visit. must cover everyone's backside mah

[AHGONG]

Bros. Guzzler, Kilrein, Corner, Horse....like that OK or not....want to join? Looks like quite profitable leh...ke,ke. I stand corrected.
Cheers,[/QUOTE]

Hi Bro,

I guess u have done quite a thorough work in the budgeting and P/L part but let me contribute a little comments here;

1st pls do a full research on the HC,TN ,SPA in Singapore. Do a rough study in their USP(Unique Selling Points). Based on this evalute their target audience(customers) and profitability

2nd based on the above, generate wats your won USP and targeted audience. Don't go for variety. Go for exculsivety. You can either choose cheap and econ where u will need mass crowd or execuslive and expensive when u serve a nichie market. Either of this has pros and cons...pls studies carefully....

Your positioning and branding is extremely impt as this will determine your future profits and risks that u will undertake. U can have all the world if you have money but when u finally come to your senses...u discovered u have spent a mountain and only earn a small little tree...a lot of biz went burst becos of this......You will also have to deal with the investors when you are losing money and also need to "contain" them when u r making a lot of money. So do as much fore play as you can.

As I've jus started my own biz...i know how hard is to begin and maintain....FYI I've tried a executive club in Viet and Camb b4...where it has veri similar ideas like u...

1st storey recpt counter+cafe(with internet)
2nd storey Full HC facilities
3rd storey KTV Rooms
4th storey Pte Function rooms
5th Storey Suite Rooms

Don't mind me losoh as it is just my little contribution....hope it helps...

[Zack Tan]

Bro. Jackiechan,
Your point noted. Will incorporate some "security" aspect into the business. Dun't worry, you will be well look after...ke,ke.
Bro. Ahkong.
I can't agreed more! The market audit is of paramount importance as it will determine your direction. In the service industry, you got to be market and customer oriented. You sound like someone who has some experience in this field. Do you mind sharing some of these and your thoughts? So is your Vietnam project still on going?
Yep, we have to determine our market niche but we will probably target the higher end of the market. Anyone with about $600.0K to spare???
Cheers,

[AHGONG]

Yep, we have to determine our market niche but we will probably target the higher end of the market. Anyone with about $600.0K to spare???
Cheers,[/QUOTE]

Bro, I not in this trade but I m a customer of this trade lah hahaha....but in Viet & Camb I have some local fens who r in this trade. I've also seen someone fail in ths SPA biz becos kena caught.(if u know wat i mean)

Your next challenge would be to know the ppl with the amt of cash and willing to fork out the $$$...u can try talking to VC or some rich biz men with cash to spare....I've talk to VC b4 and I know a little on how they think and want...not easy....Gd luck with your venture

And if u want to TCSS...PM me

[machoman]

Originally Posted by imom

Ok ok.... As long as HR Director's duties include training and regular evaluation... heh heh...

Anyway, to take over a fully renovated HC, you still need to come up with a take-over fee, which won't be very much different from doing it from scratch - unless the HC to be taken over is a failing concern and in debt!

imom, sorry man, the job scope of the HR's Director includes evaluation of the QC Director's field report on the quality of the personnel.

The QC Director will have 1st hand field experience, after training on the models organised by the Training Director, to evaluate the effectiveness of the training and to ensure that the standard of service is of the highest quality "which even other HCs talk about".Thereafter, he will furnish a field report together with his recommendations contained therein, to the HR Director for his review.

[Zack Tan]

Originally Posted by machoman

imom, sorry man, the job scope of the HR's Director includes evaluation of the QC Director's field report on the quality of the personnel.

The QC Director will have 1st hand field experience, after training on the models organised by the Training Director, to evaluate the effectiveness of the training and to ensure that the standard of service is of the highest quality "which even other HCs talk about".Thereafter, he will furnish a field report together with his recommendations contained therein, to the HR Director for his review.

Bro. Machoman,
Wah so fast pull rank already eh? But I must support you because I know bro. Imom has many good lobangs that he kept only for himself...ke,ke.
Bro. Ahkong,
Thank you again for your inputs. Yes,putting a good plan togather is one thing but to get genuine investors to put their $$ in and trust you is a tougher hurdle but not impossible. I have some experiences with VC too and I don't get a good impression of them. From your threads I guess you must be running your own business or at least some form of JV? Mind to share your experiences with us....its interesting and I'm sure we can all learn something here.
Cheers,

[banana]

Originally Posted by Zack Tan

...Banana are you in or out?...

i dont know what role available for me. wont be in sg soon so dont have so much time. but of course can email or call me.

then for now i be one of ur independent consultant, ok?

[AHGONG]

Bro. Ahkong,
Thank you again for your inputs. Yes,putting a good plan togather is one thing but to get genuine investors to put their $$ in and trust you is a tougher hurdle but not impossible. I have some experiences with VC too and I don't get a good impression of them. From your threads I guess you must be running your own business or at least some form of JV? Mind to share your experiences with us....its interesting and I'm sure we can all learn something here.
Cheers,[/QUOTE]

Ist of all I m AHGONG(the stupid one) not AHKONG(The senior) later humtang by him...hehehe....

U r right. I m having my own Biz currently. I guess since u have experience with VC u know how they work. As for sharing the info...I'm fine but have to wait for April becos I'm all packed for Mar. It was noce to see some bros here developing interest into Biz...dats why I kapo kapo...

Banana,
U still here huh? I tot u leave liao....u got money to invest in Bro Zack project or not? Or u have any rich man lobang?hehehe

[Zack Tan]

Originally Posted by banana

i dont know what role available for me. wont be in sg soon so dont have so much time. but of course can email or call me.

then for now i be one of ur independent consultant, ok?

Bro. Banana,
Your role depends on what you can bring to the big table mah. If you like you can be the driving force for this business. How about it?...ke,ke.
I kinda like your helicopter viewings and your ability to see the bigger picture. You are a good analyst but dun't mind me saying this but you tend to think too much and because of this, you are not an action man...you know what I mean. I could be wrong but some time I like to read the personality behind the nick. This is not a criticism of you but just to digress away from the topic a bit which could be a little dry for some people...ke,ke.
BTW I think you will make a excellent consultant. Will reward you amplely if project takes off the ground.
Cheers,

[imom]

Originally Posted by machoman

...sorry man, the job scope of the HR's Director includes evaluation of the QC Director's field report on the quality of the personnel....

No no, I'm sorry to disappoint you, but training is always done by HR in any organisation... heh....

QC is responsible for checking the quality of the final product. If you provide training in the process, then you are more QA - Quality Assurance - than QC....

[imom]

Originally Posted by Zack Tan

...Imom has many good lobangs that he kept only for himself...

Good lobangs that I keep to myself? Dun have lah... I always give FRs, good or bad.... :P