Bajet 2016 Review for Butik

Recently the Malaysian Bajet 2016 was presented. Normally these things don't interest me, but since working in Kino, and now, having my own business and being an employer, it is important to keep up, especially since after JUST introducing minimum wage a couple of years ago, it is now being INCREASED.

On the whole, I applaude this move because I know we deserve it. But being an employer in the small business retail sector, it presents an extra cost. Right now in sarawak, minimum wage is RM800 for any employee working a minimum of 40 paid hours a week. (Dont listen to other people who says this is just a 'guideline'. It is the rules. These people are just too stingy to pay minimum wage. That's right, I'm calling you stingy for not paying what your staff is owed) Normally people work 9 hours a day, 1 hour being lunch time so the other 8 hours are their paid hours. This is common for any full-time staff anywhere. I calculate OT and base part-timer's wage from this too.

Now, starting from June 2016, the minimum wage in Sarawak is raised from RM800 to RM920. And the next time it is raised,  I am sure, will be to RM1000. Because in Peninsular Malaysia min wage is RM900, and is being raised to RM1000 next year. I have two butiks, and two staffs. I pay them both minimum wage and our sales barely cover our expenses. I can safely say, next year, we will not be able to afford a full time staff for our second butik because it will cut very deeply into profitability. Most probably we will hire a long-term parttime staff instead. At least until we get to point where we are comfortable to pay two fulltimers.

But for how long?

I dont think this style of doing business is sufficient anymore. The only constant thing is change. We have to re-think the way we do business. Re-think how we view the market, the customers, their needs and wants, their priorities. And at the same time, allign them to our own self-preservation and profitability.

There must be a balance somewhere.

Recently I heard some troubling news.

When I met my materials supplier in KL, at Jalan TAR, they asked me how business was during Raya season. I told them business was great. We almost doubled our sales from the previous year. He said that's very good, because business was bad for a lot of Jalan TAR sellers. Some of them couldn't even cover their costs. I was shocked. This is Jalan Tunku Abdul Rahman. MASJID INDIA TERRITORY.This is THE place to shop for raya, every other sellers in Malaysia get their stocks from this place, yet they themselves couldnt cover costs? It was shocking.

He said GST was a big reason and causes people to have less money to spend on luxury things. Even during the season I noticed how, if they have a family event coming soon after raya, like a relative's wedding, they would try to buy clothes that coincides with the theme color of the wedding, as opposed to last year when people wouldnt think too much over buying two outfits. Although really, how often would you wear that fancy jubah or fancy kurung the rest of the year anyway?

This is not an isolated case. My tailor also told me that business was slow after raya, ini anticipation of the Raya Haji season. He said if it wasn't for some big orders from Brunei, it would be quite bad for him too.

So clearly, the market is changing. It changes every year. I'm not just talking about fashion styles, I'm talking about the consumers themselves. In fact, I dont think it is an annual change. It is a monthly and seasonal change. And they dont revert back to their previous state.

As a retailer and as a business person, some big changes in thinking is required here. A complete paradigm shift.

In the mean time, here are some links for the Bajet 2016. I find them easiest to understand in these websites.

http://www.mysumber.com/ringkasan-intipati-kandungan-bajet-2016-belanjawan.html
https://www.malaysiakini.com/news/316903
http://www.themalaysianinsider.com/bahasa/article/najib-bentang-bajet-2016-di-dewan-rakyat
http://www.amenoworld.net/2015/10/bajet-2016-pemotongan-subsidi.html

Aaah~ Real Life

I'm still selling those cotton by the way, but since this is not a business blog, I won't be mentioning as aggressively as I should. I really am not a hard seller. :D Seriously.

Normally you learn all sorts of business theories in school, but this is those theories put to the test. And man, don't they make it sound so much easier on paper. Do this right and this will surely happen. They just forgot to include everything else in between 'do' and 'happen'. A few things I've learned during my short time as a seller:

1. Cash paid now is better than cash paid later. No arguing this.
2. You do not question your customers' taste. You are not selling them things.You are selling an image of what the customer sees of themselves.
3. A sale made is a sale made. It doesn't matter who the sale is made to. And,
4. Patience is a virtue. Buckets, and buckets loads of it. And also,
5. Thou shalt not be greedy.

It's just too bad that I am impatient, and may be a little greedy as well. But this is just the beginning, and as the cash slowly trickle in, my spirits are lifted. I hope it's the end of the month soon. Hehehehehehehe.

Ta'ra!

p/s I'm not even attending public unis yet I have their convocation dates for 2009 and the numbers to their student affairs departments. I wonder why? xD

Too Independent Too Soon?

Going shopping with daddyo is very profitable. I would always start with nothing, and by the end of it I get my stuff plus the change from the purchase of my stuff. Makes good economic sense doesn't it?

But why are people in such a hurry to be independent from their parents?!

I even had a friend who has no background in business, has no experience or any related knowledge, is diving head on into a business! I've told this same friend what she should know about and what she should work on, and she admitted she wa sunprepared so the business idea was tossed aside. But then came the holidays and she considered herself been 'sleeping' too long. So she thought starting a business was the best way to 'wake' her up! She came to me asking for some financial support. I questioned her some basic things not related to the business but on how she was going to be able to pay me by January when she couldn't even find money now? She replied she 'believed there are many ways' so I asked her why not use those 'many ways' to get the money now? Then she concluded I wasn't able to help her so she went away.

I mean, get real. Would you lend your money to someone who's indecisive and unconfident like that? I really hate it when people want to borrow money from me but act as if it's no big deal if I don't give it to them. I would have helped if they really wanted it. Sometimes it can be for something as stupid as wanting to buy clothes urgently so long as they really need it and can assure me payback can be made in reasonable time. I am a yes or no person. If you want it, say yes I want it. Not 'well, if you could lend me it would really be helpful though you don't neccesarily have to'. To me that's a no.

Anyway, I'm sure I'm not the only one who's encountered people like this.

Look, it's not that I want to dampen her spirit in doing a business, but doing a business, even if it's just some crappy MLM (maybe especially so), should not be taken lightly. Is it wrong to start small like selling nasi lemak or keropok lekor by the road side? Trust me. If you do it diligently it will pay off nicely. I know this because I have a friend who's actually doing this and she stuck to basic rules of business. Good value, good customer service and plain hardwork will get customers coming back and money rolling in. Is it so hard?

So that's someone who wants to branch off on their own as soon as they can. Another is people who just refuse to accept money from parents. Isn't it weird that people would turn down free money? I asked them why and they said they don't want the strings attached to it. They would rather work for their own things than asking for money from their parents. A nobel thought, of course. But when your parents are giving you free money with no strings attached, why do you still refuse it?!?

Doesn't this remind you of the term 'kais pagi makan pagi, kais petang makan petang?' Roughly translated it has about the same meaning as living 'from hand to mouth'. It's like working hard to pay the advance payment for your car. Once you get the car you still have to pay the monthly payments, so doesn't this actually add to your expenses even though you're not making anymore than you did before you got that car?

So doesn't that leave you with less money?

This is a typical middle-class mentality. They believe in working hard, saving money and living off that money their whole life. They are suspicious of investments. They take pride in being able to fend for themselves without any parental intervension.

Like I said, a noble thought, but not very practical. We humans have to accept that we need help from time to time, whether we like it or not. And when you're with parents, they have certain responsibilities over you including giving you your pocket money. To refuse your right is stupid. Sure, go ahead and make yourself independent, but don't stop parents from being parents. We are at an age where we are slowly breaking free from our parents. But we are not quite there yet. So is it so wrong to just stay quietly and take things as they come? I mean, in five years or so nobody would be around to make dinner for you anymore once you're married.

Maybe I'm saying this because I am comfortable living in my parents' house. I know this is not the case for everyone but it apllies to most people. Remember how people kept reminiscing how good life was in high school? and when you enter the working life you reminiscent how much better life was during college?

All I'm trying to say is: forward thinking is good. But never forget to live in the moment. The saddest thing is to let life pass you by without you even realizing it.

There, I gave you my Dua Kupang Worth. Now have a life. Ta'ra!