The year of 2013 has ended and a new year has started. This year our business performance is actually way better than the year before. However, the profit margin is rather low.
The board of directors had few meetings and dig deeper into our business performance. We realized that our core strength in our business is actually inventory management and sourcing. No doubt we understand the hospitality business well but we are not getting right customers nor the margin to sustain the company.
We review back our past year projects. Our customers were most impressed by how we set up their restaurant's inventory management system. They are able to track their stock levels and know when to replenish the inventory. As such, one of the directors asked whether the same concept be used in other industries? The answer is actually yes. Maybe some changes but the basic ideas are there.
The existing team is small and we cannot afford hiring employees. As such, the amount of projects that we commit is very little. Managing building/ renovation projects involves long hours. The hours could have been spend on other activities that can generate revenue for the business. This was also one of the main factor that drives our decision to change the business model.
To further push the business ahead we need to generate revenue for the company with the minimal cost but the maximum benefits. Sadly, our 1.5 years old company has not found a constant stream of revenue that will cover the company's annual operation cost. As such, our new trading model will work for us.
Customer has already expressed interests for our products and we were also able to find a reliable supplier. The next phase is to built in the process and get the necessary paper work done to import our goods.
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