Future plan of mine

Recently, i had been thinking about what i should do after i graduated from ITB. Should i carry on degree or should i work? What will i gain from getting a degree? It's not like i have no plan for future, in fact i do. I always wanted to have a business so i think why not start it small.

My plan is that after i finish ITB, i will work temporarily to get some income first, for lets say one year. Then after that i should use the money i have to rent a slot in the canteen at Chung Hwa and do a small business without needing lots of capital. If i cannot manage it then i can start degree again the next year. There is still time. I think about $5000 is enough to start. Don't underestimate that, if you had ever study in Chung Hwa, you will know how good business is.



View of canteen:


Let me do some brief estimation for you:
Rent for space is $2000 every month including the need to pay for holiday time. This is what cause many to think that it is too unfair to do so.

Then let's assume utensils and other kitchenwares are $2000 which is quite a huge amount already cos you only need gas and few woks, plates... you don't need huge equipments like ovens.

Then the leftover $1000 you will use to employ a maid and buy foods. Good enough.


So now let me show you a few calculations:

People at the canteen sells chicken for $1 per piece. How much does one chicken cost? About $5 only. And how many pieces can you cut the chicken- 2 thighs, 2 wings, 2 drumsticks, 4 backbones, 4 breasts. These are just assumption.
So you got 14x$1-$5= $9(gross profit before deducting gas and cooking oil) That's a lot of profit for a chicken.


Then they also sell nuggets and balls(fishball, squidball, etc...) Purchasing price of a packet of nugget cost about $8, consisting of about 40 pieces. And the selling price? $1 for 3.
So you get 40/3x$1-$8= $5 gross profit


They too buy LoSan nasi lemak to be sold at canteen again. They buy $0.70 per pack and sold at $1 per pack, making it $0.30 net profit per pack. Imagine how many you can sell per day. Let's just put it a minimal amount at 50 pack per day so you get $15 profit without even doing anything much.


And most profitable is selling drinks which needs to add water; like sunkist orange, wheatgrass... You just buy one big bottle of it only at about $6. Then you add water and sell it cold at about $0.50 per cup. You know how many cups you can produce and sold. Again we take minimal amount. Let's assume we only sell 50 cups.
So you get 50x$0.50-$6= $19 net profit(not counting gas for boiling)

You see what i am trying to say? The profit seems small but actually it's not, this is a business strategy by selling at low price with high quantity sold. I forgot what it is called but income definitely overtake expenses. Accoring to my assumption, with more than 10,000 students, morning and afternoon. Assume only a quarter buy from you with $1 each. It makes $2,500. Then reducing all expenses, i assume that one day net profit will be at least $200 at worst, that means at it lowest. If business is good, a profit of far bigger figure is possible.


Money does not grow on trees. You don't get them, you earn them!


I have discussed about this plan a lot of time with my parents. I asked my dad to take the free space at the canteen but he just won't do it cos he said it's not worth that you still have to pay during holiday without doing business. While my mom always agree with me, supporting my suggestion and she said she will contribute too if i am to really do the business. I think i will in the future.


Don't think of failure before you even try investing, it's not a big investment or business. Every business has its own risk, so it doesn't help worrying too much. It won't cause bankruptcy... If it is not profitable, then how did all the others who were there for about 20 years survive so long until today? Makes sense right?