Hello everyone! Can you believe we’re already in the 4th quarter of 2023? Time really does fly. It’s been a while – over a year, in fact – since I last touched base on this blog. How’s your 2023 shaping up? For me, it’s been a whirlwind of events, experiences, and milestones. I’ve been itching to update you all, but finding the time to sit, reflect, and pen down my thoughts has been a challenge. I often marvel at how some bloggers manage to stay so consistently active.
Now, onto the main highlight for today’s much-anticipated MELEPAK session. Ever been captivated by the investors on Shark Tank? As an ardent fan, I’ve often imagined myself in their shoes, listening to pitches and making deals. This year, that dream transformed into reality. I’ve taken the plunge and invested in not one, not two, but THREE businesses in Malaysia. If the idea of becoming an investor – or a ‘shark’, if you will – intrigues you, then you’re in for a treat with this MELEPAK session. Let’s dive right in!
Why I Chose Business Investment Over Traditional Investments
Before I delve into the specifics of the businesses I’ve backed, let me shed some light on why I opted for this route over the more conventional investment pathways. And yes, while channeling my inner Mark Cuban (my all-time favorite Shark) played a part, there’s more to it than just that.
For those who’ve been with me on this journey, it’s no secret that I have a penchant for higher-risk ventures in the investment realm. But beyond that thrill, there’s strategy. I’ve always believed in diversifying my investment avenues. While I’ve dipped my toes in stocks, dabbled in the unpredictable world of crypto, and even ventured into ILPs through Great Eastern Wealth Advantage (by the way, a review on this is long overdue and, spoiler alert, it might not be all roses), I felt there was a missing piece to my investment puzzle.
Enter: Business investing in Malaysia. The prospect of putting my money into up-and-coming businesses was too tantalizing to resist. And honestly, once the opportunity knocked, it was a swift decision to embrace this new chapter.
Alright, let’s look at the businesses that I’ve invested this year.
Business #1 – Coffee Manufacturing Industry
Diving straight in, the first business I backed is in the coffee manufacturing industry. They were on the hunt for funds to ramp up the production of their popular coffee items. During my investigation phase, a few things really stood out:
- Established Presence: The company kicked off in 2017, so they’ve been in the game for a while.
- Distribution System: They’ve got a network in place, complete with agents, stockists, and affiliates.
- Inventory and Infrastructure: Their warehouse is stocked up, showcasing a diverse range of coffee products.
- Transparent Leadership: The founder isn’t shy about putting himself out there, actively engaging with audiences on social media.
Combining all these positives, the company ticked most of my boxes. Plus it helps that the potential ROI that the company offered was very generous. HOWEVER I was a bit reluctant initially as the amount asked is more than I had originally planned to part with. But after hard consideration, my high risk appettite gets the better of me and we proceed with the investment.
|Returns||RM3,000+ per month Return of Capital after 24 months|
I invested in the company at the start of 2023. Fast-forward to now (October 2023), and I’ve received RM34,900 from it. Doing the math, I’m optimistic about breaking even in about 6 more months. After that, it’s all green – pure profit. So far, this venture’s proving to be fruitful. And what did I do with the returns? Reinvested them, of course! They went straight into the next two businesses I’ll be discussing.
Business #2 – Beauty Skincare Industry
For my second investment venture, I dabbled in the beauty realm, specifically a company dealing in skincare products. Their main challenge? They keep selling out, and then there’s a wait of about two weeks while they use their profits to roll out a new batch of stock. They needed an investment boost both to keep up with demand and to help cut down product costs, which would in turn spike their profit margins.
I’m going to pour gasoline on this fireMr Wonderful aka Kevin O’Leary
What piqued my interest:
- Experience in Play: The owner’s been in the beauty biz for a solid 4 years.
- Strategic Funding Use: The funds would directly beef up their profit margins and slash those annoying downtimes.
- Social Media Savvy: The owner’s pretty active online.
- Marketing Strategy: They’re big on promoting their products through TikTok Live.
After having a chat with the owner and feeling out her passion and plans, I felt good about jumping in. While she initially hoped for a 6-month deal, our conversation led us to settle on a 1-year term. And here’s the kicker: I ended up offering a bigger investment than what she had initially sought.
|Returns||RM500 (Capital Returns) + 15% Mthly Profits|
|Potential ROI||Conservatively 190%|
Investing in this skincare company felt different from the first time around. Why? Because I wasn’t digging into my original funds – I was rolling the earnings from my first investment into this venture. It’s always a thrill to see your initial investment grow and branch out into other opportunities.
Now, the tricky thing with this investment is that the returns really based on the company’s sales and profits. Looking back at the last three months, the company raked in a profit of around RM5,000. But let’s play it safe for a minute: even if the profits dip to RM3,000, I’d be pocketing RM500 + RM450. Based on those numbers, the ROI for this investment hovers around 190%. Yet, here’s the kicker: I’ve got this gut feeling that with the extra cash boost, we’re going to see those profits soar even higher. Fingers crossed, and here’s to hoping the investment pays off!
Business #3 – Food and Events Industry
Diving into my third investment, things took a twist. Here, I ventured into a company that’s all about events. They’ve got an entire building for them to host their events, which they’ve leased for a couple of years. Now, with some spare space on their hands, they’ve set their sights on creating food stalls for vendors. The idea? People attending events can enjoy some good food right on the premises. They’re aiming for 10 stalls, with each stall providing its owner rental income from the food vendors for two years.
Here’s what piqued my interest:
- Event Vibe: Their events scream ‘Adventure & Fun,’ which is right up my alley.
- Location, Location: The event space is just a stone’s throw away from Pandan Market in JB. (For context, my other two investments are in KL and Perak.)
- Vendor Interest: Food vendors are already queueing up for a stall. All of them are waiting for the stall to be ready to move in and start operating.
- Guaranteed Business: The company is pushing to ensure that these food stalls are always in demand.
|Returns||RM500 per month in rental|
Now, I get it. This investment is totally different from my first two – it’s more about earning through rent than sales. But the pitch was enticing: the investment needed was on the lower side, and the projected ROI looked pretty sweet. An added perk? I can pop over and check out the place whenever I’m in JB. And did I mentioned that the profit from my first venture is fueling this new investment. Sweet.
Closing Thoughts: The Thrill and Caution of Business Investments
And that’s a wrap for this MELEPAK session! These three business ventures are my way of adding a little zest to my investment journey. They’re not just about diversifying; they’re also about embracing a bit of risk and excitement.
A word to the wise: This kind of investment isn’t for the faint-hearted. If you’re mulling over jumping into such opportunities, make sure you’ve done your homework. While exploring this space, I’ve come across a slew of unsettling stories. Scams abound, and there are businesses that just vanish with investors’ money. Many fellow investors have shared their tales of loss, so tread cautiously.
Stay tuned for the next MELEPAK session! I’ll be diving deeper into these three investments, shedding light on how I pick businesses to invest in, and sharing tips on spotting genuine investment-seeking businesses. To ensure you don’t miss out, consider signing up for my newsletter. I’ll shoot an update your way whenever there’s fresh content.
Thanks for tuning into this MELEPAK session. Stay savvy and stay safe out there!