The Reformer - build upon the current model

'我創業都是從來不知道自己是在做什麼的， 更未試過把所有經營問題想通想透了才動手。我做事的宗旨一向都是做了才算，一路做、一路嘗試; 一路撞板、一路體會; 一路修正、一路突破。我相信在無知的領域闖蕩、嘗試是創造知識、突破認知的唯一方法。' 黎智英: 我做生意的心得 (p.196)

After the second site visit, I guess we need to do some reform to the current situation. There're more problems after this because we could not reconcile the revenue number we have. It is expected but its really harder than I thought.

So - let me think in this way:
What are the hindering factors which would stop us in this buyout?

Factors include:

• seller insists on the price she quoted
• the revenue numbers could be unreasonably understated
• potential risks which would heavily disturb the current situation, e.g. the sharp rise of rent

For me, I'd still choose to go ahead but we have to solve the problems I mentioned in the previous article and we really have to reform.

Reform includes making the food more delicious and welcomed by neighbourhood, reducing choice on the menu, introducing some special offers regularly. I need to do my own calculation and see where the $ would come from. It seems that its time for us to list out what queries we have to raise to the seller... Jeffrey, hope that you'd list it out before you go to the US...

I would just think as long as its a profitable business (no matter how thin the profit is), the improvement could be built upon the current business model. We could do our own maths if we find their way of running it sucks. Of course, we're not yet into the industry. No one knows what's behind the scene... yet, the initial outlay is not high.

There're some successful models in the market of which we could follow. It should be the way how we go. I wouldn't think that the current setup of the shop is a total failure. Actually it shouldn't be categorized as a failure if its really profitable. As a business student I should be capable of using what I learnt from management books in improving the business processes and efficiency in order to make it more profitable.

Improvement could be made basically in: Raising the revenue & lowering the cost - everyone knows the principle but not the execution. As long as we have in mind that our objectives are earning $$, obtaining business info on this kind of business model and understanding how a restaurant / coffee shop owner would think in choosing the appropriate suppliers, it'd be fine.