I remember last year I blogged about Starting-up a business. There I mentioned that I want to have a business that I’m really good at or have passion for. When the opportunity to set up a coffee shop was opened to me, I thought this might be it. I love coffee and cakes and I think that’s a good start.

The coffee shop will be located at the penthouse of Cypress condominium in Taguig. It will be just beside our company’s new head office. Target market will be condominium residents, though guests and outsiders can also be accommodated. We plan to operate Tues to Sunday 10am to 10pm.

We will offer high quality coffee, tea, hot choco, cakes and pastries at a very reasonable price. We will also sell canned softdrinks, beer, bottled mineral water and chips. Additional products that we find in demand will also be included. Free wi-fi, reading materials and a cozy environment is provided to customers. There will be smoking and non-smoking areas.

I am not expecting so much but I am hoping for the best. It will be additional work but I am excited to learn another craft. Thank you Lord!

“The dreamers need the realists to keep them from soaring too close to the sun. And the realists, well, without the dreamers, they might not ever get off the ground.” – Modern Family

Gary is the dreamer and I am the realist. We used to treat this as an obstacle. I think of him as a risk taker because he grabs any opportunity, even those not knocking at his door. He looks at me, on the other hand, as control freak who always sees risks and ensures that it could be managed properly else we should not invest at all. So imagine our conversations which usually end up in an argument.

Needing to “grow up” for the business’ sake, we did a few changes that we think worked for us:

1. Acceptance is the first step. We come to realize and accept that we have differences, to the extreme that is, and we can’t force each other to change.

2. We talked as matured business partners. We agreed to talk about things first. I tell him how I feel about a “prospective” client or investment but I gave him the authority to decide whether to pursue or not. I realized that at the end of the day it’s still his responsibility to provide for the family.

3. We read informative books on business and money.

I learned that net income (gross income – expenses) should be divided into the following; savings, investment account, educational acct, entertainment/leisure acct and charity. Where the investment account should only be used when there are “opportunities” for investment. In this way, you’ll have money to “play” without sacrificing your savings. Education on the other hand is for trainings, seminars or even books that will help you grow as a professional or businessman. (In our case I just have one account for Investment and Education). Entertainment/Leisure account is for anything that will make you feel “rich”. I highly suggest that once in a while you treat your family in an expensive restaurant, travel, shop for expensive jewelry or anything that will make you realize how good it is to have money. This will make you strategize on how to make more money. Those who say that money is not important doesn’t have money. The charity account is obvious, just have an account where you can pull out funds when there’s someone in need.

While Gary learned that one way of increasing net worth is through Simplification. Simply put, we should not allow ourselves to have an expensive lifestyle.

Among others…

4. Finally, we realized that being different is actually an advantage to us as business partners because each of us has a role to play. He sets the vision while I prepare the road, something to that effect.

I have been trained in Risk-based Audit and one of those things that really struck me was what they call the ‘Fraud Triangle.’ Simply put, it explains the three things that makes any person commit fraud. I want to share this because for sure anyone of you doesn’t want to be intentionally deceived.

1. Opportunity
Remember this: Where there is unrestricted access to assets, there is opportunity. Assets can be characterized as cash, goods, inventory, personal records and so on. So you need to have an adequate set of internal controls to prevent fraud from happening.

2. Pressure
Pressure can be as petty as peer pressure or wanting to be on top of everyone in terms of material things to serious matters such as extensive debt, drug addiction and gambling.

3. Rationalization
Some rationalization examples are as follows;
“I don’t know how to face my family when they learn that we’ll lose our home, car, everything”
“I really need this money now and I know I can pay before anyone notices”
“I deserve more than what’s in my paycheck”

So you see, the perpetrator doesn’t have to have a ‘bad reputation’ because with these 3 factors present, even the best person you know can be one of them.

If you are expecting to read a blog that talks about the 4 W’s of starting up a business, sorry to mislead you. I am just like you wondering where I could invest my money. I know that most of us dreams of that day when we no longer work as an employee. We save as much as we can so that one day we can be our own boss. Unfortunately, our impression of having a business is almost always beyond reality. We equate business to success, which is not the case. A successful business does not only mean earning a couple of bucks. Earning, for instance, 30k a month is good but can it make you sustain the cost of living for you to finally say goodbye to your employer? I think not.

Our online business now Search Opt Media Inc is something else, it’s 99% knowledge and expertise and 1% admin and support (I do the 1%, haha!). I want to invest on another business. Something I’m really good at or have passion for.

So where am I leading you? Well, since I haven’t found yet the business that I am looking for, I just want to share what we’ve learned over the years about coming up with a business. We lost time and money, but well, we gained experience. But then again, what will you do with experience if you’re struggling to provide your family with a decent meal thrice a day?

Let me start;
1. Business requires transparency. You should not be too trusting even if you work with family, close friends and relatives. Small to medium sized businesses are not excused from good governance.

2. Know your business. You don’t just invest your money on businesses that you don’t have knowledge about. Why start a restaurant business if you can’t even cook? Or at least learn the craft.

3. Understand how business works. At least learn that business has it’s market, technical and financial aspects.

4. Don’t jump on the bandwagon. Don’t invest on something because it’s popular, because most of the people you know invested on it or because some people you know became successful. Again, go back to #3.

5. Don’t depend your future with only one business. Invest. Pull-out your earnings. Invest again.