Thursday, October 26, 2006

Meaning of Capital

Recently during my mamak session gathering of old friends we discussed over the issue of political, economy, social and technology outlook of our home country Malaysia. Everyone have it bits of story, conclusion and belief they hold onto. I will try and breakdown each of it later in other posts which for me endless debate and waste of time, if we review it back cause it was none of our business and we could do nothing much about it. However TIME was what we have back then and who care how we waste it plus maybe there is some intrinsic value that we have not discover or aware of it. (who knows!)

OK. Enough say and back to my title of this post. At one point of the discussion one of my friend bring out one business idea. He suggested to re-conditioned those old car (Mitsubishi Galant. Proton Saga, Datsun 120Y ....) into showroom condition and sell within the bracket range of 10K-15K below the Kancil or Kelisa price. Imagine new graduates looking for a 30K box getting him or her and companies around here and there (CAR) . This group of peoples was his target customer with the reasons that I give them a bigger box, higher engine capacity that reliable at half the price, plus bonus of new emerging trend (getting publicity to become the in thing) and most important of all above, Value for their parent hard earn Money. ( Robert Kiyosaki advice to Invest in Asset not Liability = recommended reading Rich Dad, Poor Dad)

The discussion getting hot and lively with one of my sleepy friend also awaken during the wee hour of our about to end mamak session. Everyone putting in idea improvement, suggestion, know-how, comment, critic and et-cetera. I already get the big picture of the business; where to get the old car, who can repair and repaint, where the showroom can be used and getting the sales agent. All of them was in my another group of friend together with the idea on how to protect our business from competition once the idea works and becomes the trend. There is no full-proof competition in the business but at least we could enjoy the soup first hand and how much we can drank before others join us to drunk the same pot of soup is depend on our abilities. Competiton for me have its pros and cons as we cannot and would not able to control the entire market.

Finally the idea is there, plan is there, people is there, opportunity is there, risk is there but one thing is missing when I pop up the magic word "CAPITAL". I ask the idea's contributor how much money you can come up ? The answer he give is "my IDEA is my CAPITAL", in the other word to come out with money could cause him a lot of efforts. Then another friend of mine joke in that he would not mind contributing his father old car (Mistsubishi Galant) as the test bed cause at the end of the day if the idea fail he still could gain the new look of his father car. (thanks for the re-conditioned guys). After that the Capital issue slip under way, under coffee table loitering around the belt and gone into the pant. End of the mamak session I was left fuming waiting for an answer from any of my friends that at least ONE can say I got 2K, or I got 5K, or I got 8K, or I got 10K; let make it happen convert the idea into detail plan; works out the plan using the gather Monies; realised the idea by actions not words. Sucesss or Failure still an unknown areas (Who Know), but without "Money working as the Capital" it was sure doom failure even you have the most brilliant idea in the world.

When I reach home 2am morning, I was having long and thorough though of my friend's idea. I discover another Idea or Opportunity with the Power of Capital that is much simpler and could be the stepping stone for anyone who wanted to get out of the routine 9-5 work. I work it out until 6am until I satisfied with the outcome of ROI and the PEST Risks consideration but frankly it still required final touch on the minor minor thing to attract people to buy the idea. I will reveal it in my coming post Opportunity - Power of Capital once I have satisfy the touch up. OK


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