Business 101

Monday went to meet 7eleven Malaysia HQ. We discussed a lot about the SOP of selling food in their outlets and surprisingly, I just realized I really not ready yet. What's the problem? Yes, it's all about money, Capital...

Talked with my supplier willing to take consignment or not, however, they said a big NO due to they really prefer C.O.D. (Cash on Delivery) and non-returnable.

So, now, I am stucked! None of the parties willing make changes and work it out.

You must be wondering what really kills me right? Let me show you the calculation:

7eleven needs us to sell with a minimum selection of 20 of their outlets, let say each outlet you only selling 20 Onigiri, (20 Onigiri x 20 outlets) There are 400 onigiri need to be ready per day!

Payment term from 7eleven is about 45 days to 60 days. We pick the minimum 45 days. 400 onigiri per day plus 45 days (400 x 45 days) is equal to 18000 Onigiri!!

with 400 onigiri productivity per day, I can bargain for a cheaper price of RM2.25 per item.

My cost for 18000 onigiri is (RM2.25 x 18000) about RM40500!! And this amount haven't include any wages, delivery cost or even, tax!

However, my supplier wants me to pay in COD or one week payment term. That's mean I have to settle my supplier's bill with cash while waiting 7eleven to pay me after 45 days!. Take note that each day operation still have to ongoing. How can I survive with that?!

A cheap onigiri selling in 7eleven or any other convenient store can be a very, serious matter which will cost you thousands of money.

I just want those friends who are interested in starting up your very own business to think more about their capital. Capital really kills and it's killing me now.

First thing you have to be in your mind is, Capital, yes, capital! $$$


Hell or Heaven? duel one, FIGHT!