Manage apartment biz or quit?

by Rainier on April 4, 2006

“Dear: Mahal na Reyna,

Hihingi lang po sana ako ng isang good advice galing sa inyo (as a mentor) kasi i like the way you give an advice your straight ang detailed.

Here’s my story. I’m an OFW but we have an appartment business in the Phil,my parents are getting older ang they can’t improve the bussiness anymore, ang i know na i have the capacity to manage it and wala namang ibang magmamanage nun dahil I’m the eldest ang i’m the only son. Should i quit my job and manage our business or should i continue as an OFW kasi malaki ang salary compare sa Pinas?”

Joseph,

Teka, did you say you’re the eldest and only son? Eh, di you’re the youngest too? He! He! He! Chika lang! Sesnya na, biro lang.

Let me get the facts straight, from the very little information that you gave me.

Family’s got an apartment business.
Pay-rents are getting older.
Pay-rents are running out of business strategies in the apartment business.
You have the managerial and operational abilities to run the business.
You’re earning a Donald Trump salary.

Reading your email, at the same time, rolling my crystal ball, I could see that these are your concerns:

Parents old = can’t improve business, You young = best to manage (Ang yabang!!! Pag nakita kita makikita mo kung anong gagawin nang reyna sayo! He He He Chika lang!)
Quit job = Donald Trump salary, Manage business = don’t know salary

Ok, this is easy.

THINGS TO DO:

In order for you to come up with the best decision, here are the steps that I wanted you to do:

Be honest with your intent. Did you really wanted to help your parents manage the business? Because there are risks involved here that you would have to face. There is the possibility that you wont get the same amount of money that you are earning right now. However, there is also a very good possibility that with smart business decisions, you maybe able to surpass your current salary. The question becomes, what happens if the salary derived from running your apartment business is less than what you are currently receiving? Will you leave your parents alone knowing that they are getting old and probably need somebody to take care of them? Will you still be able to go overseas and get the same job at the same salary level?
Run some numbers. (You didn’t tell me what you do. I hope you’re not an accountant, otherwise, baka mapahiya ako sa advice ko no?!). Now, you need to make a projection of your monthly operations so you would know how much you are getting from this business should you decide to manage it.

DECISION WORKSHEET

What I have here is a simple decision worksheet. The numbers are not real. They are for sample purposes only.

The basic idea is that, we need to figure out exactly what’s going into your pocket on a monthly basis. I started with the revenue. You said “apartment business”, so I figured, you must have several doors in several locations. You could always edit them as you copy the layout. No, not the doors this worksheet. Intiendes? He He He

Next, I tabulated all of the necessary expenses in running an apartment business. I’m sure there aren’t that much. But you need to capture every single one of them.

Next, it’s a simple + (plus) and (minus) trying to get to the net number. I simply assumed that whatever is the net return, is divided equally amongst the three of you.

Therefore, using this template to resolve your issue, I can come up with your monthly number calculated in US dollars. Once you get this magic number, compare this with your current salary.

DECISION TIME

More money from business.

If your forecast is telling you that you will be getting mo’ money, do not quit your job just yet. Remember, this is just a forecast. A forecast needs to be backed-up with solid strategies and actions to get to those numbers. Create a plan, a strategy and alternatives in case the forecast doesn’t work out. How do you raise your apartment rentals? Clean up? Re-paint? Add some drama? Advertise? Properly select tenants? Market them to BC level? Cut some expenses? Can you go back overseas if things don’t work out? Do you enough savings to bail you out just in case?

Less money from business.

If your forecast does not give you a sense of comfort on the net numbers, do you stay at your current job? Your alternatives could be that – you hire a trusted property manager to run it for you and your parents. Who will take care of your parents? Is this (the taking care part) included in the plan? Can the “less money from business” be turned-around such that more money could come in by implementing a completely different strategy? An alternative could be to find an employment in the Philippines at the same time manage your business. Sounds pretty good, right? But, after getting used to receiving a big salary – how deep would be the culture shock for you once you start getting paychecks that small in the Philippines?

Now?having figured out the money part, what about the other factors? Like, where would you be happy??Where?would you be content? Where?would you enjoy the most? These are the other things you need to consider.?

My final note to you would be: what is it that really matters to you the most? The business? Your parents who are getting older? Or, your big, fat check? O baka naman uuwian mo lang si Matilda, ha?! Joseph, ha? Pakinggan mo rin parents mo, follow your heart and whatever you decide go for it! Si Matilda? Kalimutan muna.

Let me know if this was helpful and tell me about your decision, whatever it is.

—-

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Tagged as: Apartment business, Business & Economy, Matilda

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