How to make Opportunities Knock on Your Door

Silent Investors & Sleeping Partners

Just my personal sharing

Few weeks ago, I received 6 messages from my friends (some never met me but we know each other through Facebook); asking me if they can be investors in my current & upcoming projects (some call it silent investor, some call it sleeping partner).

After so many days and day and days, today I think I should list out the Q&A of being a Silent Investor or Sleeping Partner (People who knows me will know that I am very transparent towards the things I do and I want to be honest and have high integrity in business dealings too).

1 – There is a RISK in all Investments
All investments, especially in F&B is sometimes quite “gambling” also. We don’t know which day we have customers walk in, we also don’t know which day we make enough to cover for expenses. And the most rewarding moment is when our place is FULL HOUSE… Yeah! Hence, it’s best if we have a system and structure to it, so that they can run properly. At the moment, I am still working in the business, because we have implemented some changes and going to have bigger changes too. This includes Business Expansion in the next Quarter.

2 – Rising of Prices
Honestly, although our businesses look good in the public, that doesn’t mean that we make BIG money every month. There are a lot of factors, including rising of prices for ingredients, salaries and rentals – these are truly unexpected but predicted from time to time.

General Q&A
1 – Can I just invest and do nothing?
The answer is YES, but first, the amount of money that you invest must NOT BE YOUR EMERGENCY CASH.
For example, you have $1,000,000 in the bank; you may invest up to RM 300,000 (depending on the investment period and type of investments); and you must be ready to lose some if not all.

2 – Can I just invest and receive profits only?
The answer is YES, but bear in mind, Profits will only be distributed after 1 year (according to the Financial Year of the particular Business). Profit ranges from 7% – 20% for F&B; no guarantee, just base on a reference of a profitable F&B business. It also depends on your discussion and agreement with your “potential investment” partners, a lot of negotiations will take place.

3 – Can I just invest RM 10,000?
Better not. One of the reasons your investment is rather small is because you don’t have confidence in the investment – or maybe you don’t have a lot to spare to lose. There are more methods of investments out there which can bring your more interests, lower risks too. (My personal opinion only, check the latest market opportunities will be best)

4 – I have RM 500,000; can I invest and you run the business?
Yes. To begin with, memang I will run the business; regardless of your investment amount. WHY? Because I have certain responsibilities that I cannot pass to anyone else at the moment; but we do have managers to take care of different departments.

RM 500,000 is considered as Big Sum; if your investment is of this amount; before you invest, we have to sit down and list out your expectations in advance. Not all expectations will be met, but at least, you spell out first; then the negotiations will be easier.

5 – Can I just invest RM 100,000 for 2 years?
Yes, you can. Again, there is no guarantee of profits. Our accounts will be audited every year, hence no worries.

6 – I want to invest but I don’t want my name to be in the company, can?
Yes, of course, if you trust me. Even you ask to put your name to the Company, we may think twice also. Coz we cannot simply put shareholders names (especially to those who only wants to make money, with no passion in the industry). Everything will be discussed properly to avoid conflict.

7 – I only can put in RM 300,000 and no more. If you need more from me next time, I will not put in anymore, is that okay?
Yes, can. Actually, we don’t want to keep asking you for money also mah. Unless, if there is anything ’emergency’ that requires additional investments, we will figure it out ourselves. Hence the Management Team is so crucial to have integrity and knowing what to do in time of business expansion, building pipelines and crisis management too.

I am sure that many of you can input more ideas and suggestions (and personal experiences) – let’s help each other to build a Strong Entreprenuer Community ya. NO haters, just SUPPORTERS. If you think that you’ve more insights on this topic, do share on Facebook or LinkedIn with all of us.

I also see that many people asked about how they can invest and some are not getting the right support.. maybe through this post, you can see the PROs and CONs, different Perspectives, with the Intention of Building Profitable Businesses too.

Not forgetting, sometimes, whatever we do on a daily basis will also contribute to the “Business Opportunities” or “Business Enquiries” that we’re getting today…

Itu saja, terima kasih semua ya…