Every generation needs a revolution - an entrepreneurial revolution
Ateneo Professional Schools
Makati City
I came across two students who are now entrepreneurs. One used to be a supervisor at a call center and was even assigned abroad. She earned in the high 5 figures. Now she stopped the graveyard shift, she being sick and her mother too all alone in the house. She is now into catering business, events.
One used to be COO of fastfood. He left the business all ready and is now looking how it works out to be your own boss. He is into few real estate projects, consultancy and distribution business.
I am happy to note that they were former students at Entrepreneurship
Tuesday, June 21, 2016
Sunday, June 19, 2016
The real opportunity in memorial business
Every generation needs a revolution -an entrepreneurial revolution
Ateneo Professional Schools
Makati City Philipppines
June 19, 2016
Happy Rizal Day? It is the birthday of our National Hero Dr. Jose Rizal
Happy Fathers Day.
Where is the real opportunity in memorial business? (Opportunity - where large margins are and where is volume)
For a time many thought it is in memorial park. So a lot went into memorial park development - contractors, entrepreneurs real estate developers thinking there is gold pot in a memorial park, to be only disappointed.
Why is this so? While the margins in memorial park plots could be huge, as much as 70 to 80%, sales is slow because the memorial park plots cater to only 9 to 10% of population. So if you live in a town of 100,000/5, you talk of 20,000 households. and 10% would be only 2,000. And if you have an inventory of 20,000 plots, you could hardly sell to the locality because of competition having sold to them, or you having sold to them all ready. It would take forever to sell the remaining inventories. Unless you have active sales force and or very unique product or service it is a waiting and seeing game or possibly a bankrupt memorial park. The bulk of the market, the remaining 20,000 prospects would go to the municipal or Catholic Cemetery where burial costs would be about P5,000 to P20,000 for a 5 year lease vs about P100,000 in a memorial park (plot plus interment cost) and you add the cost of memorial service and casket, that is additional P30,000 to P50,000 minium.
The real consistent money would be made in funeral and or memorial service because that is the first thing that the bereaved would look for. You need casket and service. You have the option of burial at the memorial park or body crypts at public or catholic cemetery which is cheaper.
Memorial service depending on the price would have a margin of between 50 to 90%
So you think that is where the money is to be made?
No it is in the memorial plans The pre need memorial service.?
But then we thought the plans are closing and failing. Oh yes for the education and pension and othe plans. The rise in cost of education and low investment opportunities have left big holes in the liquidity and solvency of the educ and pension plans
But the memorial plans Let us try to examine the costs and revenue stream (We are on the final stages of buying one now)
Ateneo Professional Schools
Makati City Philipppines
June 19, 2016
Happy Rizal Day? It is the birthday of our National Hero Dr. Jose Rizal
Happy Fathers Day.
Where is the real opportunity in memorial business? (Opportunity - where large margins are and where is volume)
For a time many thought it is in memorial park. So a lot went into memorial park development - contractors, entrepreneurs real estate developers thinking there is gold pot in a memorial park, to be only disappointed.
Why is this so? While the margins in memorial park plots could be huge, as much as 70 to 80%, sales is slow because the memorial park plots cater to only 9 to 10% of population. So if you live in a town of 100,000/5, you talk of 20,000 households. and 10% would be only 2,000. And if you have an inventory of 20,000 plots, you could hardly sell to the locality because of competition having sold to them, or you having sold to them all ready. It would take forever to sell the remaining inventories. Unless you have active sales force and or very unique product or service it is a waiting and seeing game or possibly a bankrupt memorial park. The bulk of the market, the remaining 20,000 prospects would go to the municipal or Catholic Cemetery where burial costs would be about P5,000 to P20,000 for a 5 year lease vs about P100,000 in a memorial park (plot plus interment cost) and you add the cost of memorial service and casket, that is additional P30,000 to P50,000 minium.
The real consistent money would be made in funeral and or memorial service because that is the first thing that the bereaved would look for. You need casket and service. You have the option of burial at the memorial park or body crypts at public or catholic cemetery which is cheaper.
Memorial service depending on the price would have a margin of between 50 to 90%
So you think that is where the money is to be made?
No it is in the memorial plans The pre need memorial service.?
But then we thought the plans are closing and failing. Oh yes for the education and pension and othe plans. The rise in cost of education and low investment opportunities have left big holes in the liquidity and solvency of the educ and pension plans
But the memorial plans Let us try to examine the costs and revenue stream (We are on the final stages of buying one now)
Saturday, June 18, 2016
Every business strategist/owner should be entrepreneurial, ie spot the opportunity
Every generation needs a revolution - entrepreneurial revolution
Ateneo Professional School
Makati City
June 18, 2016
In the strama defense, there is a portion there that uses Porter;s five forces of competition. If the competition is high for all the 4 sectors, that means to say, there is an opportunity in the industry where the enterprise is to make money. If the competition is high, the more money is to be made. If there is more money and there is growth, there is a possibility for the enterprise to grow its sales, cash flow, and profit.
Thus the student for strama must have a keen eye on the opportunity and must balance the risk aversion vs the benefit the money to be made.
Thus:
1. In the yarn factory that shifts to cotton toll manufacturing. It makes a cotton bud each for 4 cents, which the the brand owner sells for 20 cents. The l6 cents is the opportunity window. The brand owner makes a lot more money that the producer. It is worth looking into the business of making and selling cotton buds.
Ateneo Professional School
Makati City
June 18, 2016
In the strama defense, there is a portion there that uses Porter;s five forces of competition. If the competition is high for all the 4 sectors, that means to say, there is an opportunity in the industry where the enterprise is to make money. If the competition is high, the more money is to be made. If there is more money and there is growth, there is a possibility for the enterprise to grow its sales, cash flow, and profit.
Thus the student for strama must have a keen eye on the opportunity and must balance the risk aversion vs the benefit the money to be made.
Thus:
1. In the yarn factory that shifts to cotton toll manufacturing. It makes a cotton bud each for 4 cents, which the the brand owner sells for 20 cents. The l6 cents is the opportunity window. The brand owner makes a lot more money that the producer. It is worth looking into the business of making and selling cotton buds.
Subscribe to:
Comments (Atom)