It's Not Easy to Manage a Business
By ARIES1973
@ARIES1973 (11426)
Legaspi, Philippines
February 22, 2021 6:32am CST
Some of you may be aware that I have a small business, (mobile loading/bills payment/fund transfer) which I started last year. I am happy to earn even a small amount because first, I don't need to have a physical store as I can do it as long as I have my mobile phone. I earn a small amount, say 5% for every mobile load, or a few pesos for fund transfer and bills payment.
It's okay for me to get small income for every transaction. I have place a small capital and I am just trying to make the capital roll so as to continue with the transaction demands. I should always have fund in my bank so it means I need to deposit every other day or so in order to continue with my transactions.
Some colleagues can't seem to understand my situation. They think I have a lot of money. Even if I told them that I only get a small amount every transaction. That I need to keep enough balance on my bank to continue with the transaction. Some keeps forgetting that they need to pay me. Sometimes I need to wait for weeks or months before getting paid.
If I would let this thing to happen again and again, eventually, I would run out of fund and won't be able to accept new transactions.
Do you think it is right if I would charge additional fee for those who won't pay in cash?
7 people like this
6 responses
@louievill (28851)
• Philippines
22 Feb 21
It's difficult to make money now from those type of business in our country since almost anyone with a smart phone can download an app like coinsph or gcash and do it on their own.
I would advice you that it needs to be on a cash to cash basis only since they do the same when they go to a " bayad center" or SM and it saves them time and fare or gas. Just an advice, never ever risk getting into financial trouble by risking big losses for small profit, it does not work that way. You don't need to charge additional fee, just make it cash basis only, take it or leave it.
3 people like this
@louievill (28851)
• Philippines
22 Feb 21
@ARIES1973 that is risky business, you would always be on the losing end in case something happens since you make the " abono " ( advance payment for someone), riskier for large online payments like electric bills, then again for a small profit. Basically the rule is high risk, high profit and low risk low profit.
2 people like this
@ARIES1973 (11426)
• Legaspi, Philippines
22 Feb 21
@louievill You are right and I can feel it now. I need to reconsider my terms.
2 people like this
@ARIES1973 (11426)
• Legaspi, Philippines
22 Feb 21
Thank you for your advice. Though some of them would just send a message asking for a fund transfer or a bill to be paid or a load for their mobile. They would say, they will pay when we see each other at the office. But oftentimes, it does not happen and they will tell me they will pay when we got our salary.
2 people like this
@ARIES1973 (11426)
• Legaspi, Philippines
22 Feb 21
Well, actually, I am not even additional fee for amount fifty pesos and up. The reason is that I am also getting 5%. I am already happy with the small amount of income so long as the business continue to operate. But if several customers won't pay in time, it will certainly affect the operation.
1 person likes this
@Shavkat (140129)
• Philippines
23 Feb 21
@ARIES1973 I can feel your sentiment. We do not need to add since you can have the 5%. I hope these people will be sensitive enough to pay them.
1 person likes this
@ARIES1973 (11426)
• Legaspi, Philippines
24 Feb 21
You are right. But I also try to understand their situation. Sometimes, they also depend on their salary. Though it okay for small amount. But for bigger amount such as bills which is a monthly obligation, I must limit lending out because my fund would be depleted.
@allknowing (137822)
• India
23 Feb 21
I appreciate your business acumen. One has to take risks and you are doing that. May be you could be selective after knowing who pays you on time.
1 person likes this
@ARIES1973 (11426)
• Legaspi, Philippines
1 Mar 21
Being able to transfer the money just by messaging me should be enough reason for them to be thankful because they don't need to go out and spend on fare or gas just to send their money. And to think that I am just charging a small amount which is just the same as when they go to money transfer shops. Yes, you are right, I need to be selective otherwise, I will be drained out of fund and could no longer continue with my business.
1 person likes this
@kaylachan (71820)
• Daytona Beach, Florida
22 Feb 21
You have to decide what's best for you and your current situation. You have the right to chose and charge as much or as little as you want. It's your business after all.
2 people like this
@ARIES1973 (11426)
• Legaspi, Philippines
22 Feb 21
You are right. While I am trying to give service at the least price possible, some are taking advantage.
@ARIES1973 (11426)
• Legaspi, Philippines
22 Feb 21
@MALUSE Yes, I should address this issue before I run out of fund. This is usually what happens to small businesses in our place. Because of the limited capital, the business owner will be forced to stop and I don't want that to happen. Thank you for sharing your idea.
@ARIES1973 (11426)
• Legaspi, Philippines
1 Mar 21
Thank you Carol. Yes, they can't also find a shop that would allow them to send money without paying first. Sometimes I am thinking to just invest my money in cryptocurrency and stop this business. But I am also earning some amount so I just need to think of some strategy in order to prevent such things from happening.
1 person likes this
