I just received an email from a reader. And I would like to share to you what he wrote, and what I replied to him.
"HI Mam,
I was inspired landing on your blog page and reading your experience on cart business, particularly pinoy pao, But i really do wonder how is your pinoy pao business going? and the system which almost all of them are saying is simple and reliable? I'm about to open similar cart but still wary of the location.
Your blog helped me picture running the business in someway. pls. le me know more about your Pinoy Pao experience.
Regards and thanks! "
Here is my reply to him:
Hi,
I'm glad that I was able to share with you some of my insights and experiences with the Pinoy Pao.
Our Pinoy Pao was short lived. It lasted only for 6 months, and we finally decided to give up on it.
They said that in a business, the first 2 years is survival. But since we have only minimal capital, we could no longer afford to lose.
I'm sorry I could not really give you much of the tips since we easily gave up on this.
But I was able to ask some of my friends who were successful with this kind of biz.
So let me give you some crucial points on this.
1. Location - very important in the biz.
STUDY YOUR LOCATION. This means that if you have already a proposed location, you need to COUNT foot traffic. Use a "counter machine" (not sure of the term). You may borrow or you can buy one. I think this is an affordable tool.
Try this out for 1 week. Daily counting. I'm not really sure on the days. You can search in the internet for more details on this. Or look for a mentor regarding this.
How to calculate if this is a profitable location: Usually, only 10% of the foot traffic would buy your product. So you need to calculate your sales based on the 10%. If the result is profit and not loss -- (of course you need to consider the overhead costs like the payment for the crew, electricity, rent, etc), then the probability that you will earn would be high.
2. If the company promises to provide a locator for you, never fully trust that locator. He might be able to find a location, but I'm sure he did not study that location. Just do step 1.
3. Usually, you need to have a hands-on on the business. Then, when the system is stable, you could already delegate this.
4. Attend more seminars on this. There are free seminars usually done in WTC. You may check on the net for the schedules.
5. Look for MENTORS. These people already experienced failures. You just need to learn from them and not from your experience. BIG MISTAKE FOR US. We just plunge into the business without looking for mentors to guide us. We just trusted the company who told us that they will take care of us.
6. Be on guard for competitors. Have a unique product. Look for a franchise that offers a unique product.
If not, the computation of your foot traffic would be divided among those competitors around the vicinity and you. Check if the total computation would still be profit and not loss.
The products of Pinoy Pao really tastes good. But for lack of foot traffic, and for lack of knowledge as to how to run this business (from location, to looking for a crew, to buying of stocks, inventory, etc.), lack of guidance, that was the reason for our failure in the business.
But then again, failure is part of life. It's up to you if you are willing to take the challenge.
Again, I cannot overemphasize the need for MENTORS. Study and look for mentors before you start the business. Very important also, is you start the business. Not just end up in the planning stage.
I hope I was able to effectively share to you what you need for your new business.
God bless you!
yzero
You may also read:
My 1st Pinoy Pao Opening Experience at Guadalupe Commercial Complex
Why A Business Fails - MOP
