Entrepreneurs Could Learn Lots from US-Based Asian Small Business Consortium Strategies

Over the years I’ve been quite impressed at how many of the Asian-American small businesses stick together and really help each other out. It’s an impressive display of camaraderie and confidence. Their strategies work so well, they have a much better chance at success, which allows new start-up small businesses and shop owners drop their failure rates significantly over the average small business rates in the US.

Last week, I was discussing this with an acquaintance from the Philippines, and she noted that the Chinese business owners there, do the same thing, and they use the same strategies. She noted; “The Majority of those who own big businesses in the Philippines are Chinese. I admire their way in managing their business though, and Chinese community or family helps each other when it comes to their financial needs.”

Yes, and this happens in Los Angeles too, not just with larger and medium sized businesses, but also with small businesses. Not just with the Chinese, but it seems all Asian-American Business Owners. There are rare cases where I’ve heard they tend to exploit their own, which is unfortunate, but not any more than perhaps wealthy Anglo-Americans have in past periods, after all, that is known by just reading our history books.

One interesting point in Los Angeles, is that I’ve observed the Korean Small Business consortiums doing the same thing to support each other, and they form ad hoc groups to loan new business owners money to get started and then they do the same later for future business people. During the LA Riots, some of the African-Americans in LA were angry at the Koreans for being such good business people and they said they are exploiting them. Sometimes with such strong business strategies it’s easy to create animosity in the local free markets, when you dominate so many sectors.

My acquaintance in the Philippines noted that the Chinese Business People there would never allow their relatives to become poor, so they support each other. Maybe it’s this attitude which helps propel their ventures so well, a sense of closeness and community – almost a community within a community if you will, with a small business enterprise motif – and you know what? It works! Perhaps, this is why I’ve always been impressed with the way that Asian-Americans stick together in business and work with each other.

Every entrepreneur could learn from these strategies, so, I thought I’d mention it to you. Please consider all this and think on it.

Five Tips to Start Your Own Business

Starting a business is a lot like starting a family. Once you take the plunge, you should be reasonably sure of sustaining it for a good period of time. Hence, before taking the plunge, it will be wise to plan a bit. Here are 5 important tips:

1. Do Your Own Research

Before deciding on the business you want to start, do some research. This should include the size of the market you are targeting, types of customers you will have, their tastes, and the extent and kind of competition.

In addition, a good study should also be done about the costs: rent, cost of raw materials, labour, and best location.

It is better that you do not rely on other agencies or friends for this. It is okay for big corporate organisations to hire research firms to do this, but you are not a big corporate.

Do not trust other people’s assessments before sinking your hard earned dollar on the business. Do your own digging, and planning.

2. Prepare a Business Model

A business model is a statement of your plan on how you intend to generate revenues, and how much profit are you aiming for. There are 5 main ingredients of a good business plan.

a) Size of the targeted market in terms of quantity and value
b) Cost of inputs and production
c) Expected revenues or total sales proceeds,
d) Rent, interest on capital, depreciation for furniture/machinery
e) Expected profits at the end of a quarter, or one year.

It is important that you prepare this business model with utmost honesty and accuracy, because the success of your venture will largely depend on the efficacy of your business model.

3. Stick to Your Plan

Once you have made all the plans and started the business, stick to the plan. Do not change course mid-way, and do not get discouraged by adverse results initially. Every business will initially encounter resistance, but if your plans are well made, your business is bound to succeed.

History is flush with examples of how some of the world’s most successful businessmen built great business empires by continuing to pursue their ventures despite initial setbacks.

4. Have a Plan B Ready

Even the best laid plans may sometimes go awry. Suppose an unexpected event – a natural disaster, a sudden shrinking of the market, a new invention totally replacing your product – happens, and your Business Model becomes unviable.

If such an eventuality happens, it would be foolish to continue the same trade and go on booking losses month after month. Better cut your losses, and put your Plan B into operation.

Plan B should be drawn up such that your losses are minimal, and you are left with enough capital to start afresh.

Do not forget that new circumstances will throw up new opportunities and your business career is by no means at an end. But you should have enough capital left, and your mental framework should not be burdened with the scars of failure, in order to take advantage of the new opportunities.

Therefore, it is crucial to know when to quit and start afresh. For this you should have plan B ready in advance.

5. Don’t Be Too Ambitious Too Early

Initially, it is always imperative to take small steps. The size of your operation should be strictly within your financial and physical capacity. It should be such that you should be able to manage it personally, in the initial stages.

You can’t depend on others to implement your plan carefully. You have to do it yourself.

For this, it is important to know your limits and confine the size of your business within it when you start. In the same vein, if you have to borrow funds to start the business, it must be within your repaying capacity, and the repayment schedule must be built into the Business Model from day one.

Making Money With a Cleanout Foreclosures Business

A cleanout foreclosures business is all the rage. But, is now a good time to start this very lucrative business? While it may seem scary to begin a business right now, it is actually a very good time for starting a business cleaning foreclosures. Start up costs are low and the profit potential is really high. The more you are able to do (and not subcontract out) the higher your profit potential.

While foreclosures are at an all time high, this makes it a really easy business to start. You might worry that there won’t be enough work to go around once the economy is better, but this just isn’t so. Not everyone in the foreclosure cleanup business sticks with it. They recognize the financial benefits, but are unwilling to do the work. You will be required to clean houses, empty the left behind items and make necessary repairs. To cleanout foreclosures can be hard and dirty work that everyone isn’t suited for.

Many people just aren’t willing to do it. With that being said, it isn’t uncommon to hire multiple crews to do jobs for you… foreclosure cleaning is a very scalable business. You can accept enough jobs that you can do alone or have multiple ones going, you decide. If you are willing to work hard and stick it out, you can have a cleanout foreclosures business up and running in no time at all. If you are persistent and hard working, this will be a long running business for you.