Hope that HE Sun Chanthol can overcome those mainstream ills of social graft. Many investors and SMEs are complaining about running businesses in Cambodia as following:
1. Business registration demands high amount of fee, procrastination of time, and facing with many challenges
2. Paying under-table taxes and fees are higher than paying legal state’s tax
3. Local authority and officers demand bribes from business owners without fearing any legal reprimanding
4. His higher superiors and big boss are so corrupted that no way of changing that status quo.
5. High risk for honest investments in the Kingdom of Cambodia
Stefan Voogel, general manager of the Intercontinental in Phnom Penh, speaks to the Post at the Cambodia Hotel General Managers Summit Wednesday, Oct. 10, 2012. Photograph: Hong Menea/Phnom Penh Post
The hotel industry in Cambodia is growing but still sees room for improvements, industry experts said at the Cambodia Hotel General Managers Summit in Phnom Penh yesterday.
In terms of revenue and the number of players, the hotel and restaurant industry has an overall growth rate of 8 to 12 per cent, said Luu Meng, president of the Cambodia Hotel Association.
But according to Luu Meng, the industry needs to try targeting not only the customers coming by boat or by road, but also those coming by direct flights who have a different spending power.
Stefan Voogel, general manager of the Intercontinental in Phnom Penh, also said the trend of Cambodia’s hotel industry is growth but that it needs to focus on attracting different types of tourists and not only backpackers.
He also said that “the hotel industry has to mature more in Cambodia”. For example, the international hotels were well matured in terms of standards and following regulations, some local hotels maybe don’t charge taxes, he said.
According to Voogel, the industry growth comes along with higher expectations from tourists.
When we took over the entire floor of a building, I chose an office tucked into a corner, which allowed me to hide, unseen by my staff. Taking a partially hidden, somewhat removed office was an intentional tactic to empower our new general manager, to whom I gave the largest, most public office. I wanted our general manager to be viewed by our employees as the leader and the first port of call for staff who needed guidance.
Soon after my general manager was hired, we both realized it was a bad fit. I knew it wouldn’t last and so did my employees, some of whom started to leave; within the space of six months we had four people quit. As my general manager and I continued to butt heads, the office became a divided battle zone with some employees lining up behind my general manager and others behind me.
Finally I parted ways with my general manager but the damage was done. Morale was low, clients were complaining, and some were leaving.
As my company teetered on the brink, I decided to ditch my corner office and move into a small, very public office in the middle of our floor plan. It was an instinctive decision born out of the need to get closer to the problems in my business.
Once in the thick of things, I started to understand my employees better. I learned what got them excited, what made them angry, and what their fears were. Collectively we managed to turn the company around and I came to love sitting side-by-side with my team. Continue reading →
I wish I could just say that if you do X, Y & Z, you’ll magically raise millions of dollars for your venture. But unfortunately, that’s not how raising capital works.
One key reason for this is that most sources of money, like banks and institutional equity investors (defined as institutions like venture capital firms, private equity firms and corporations that invest), are essentially professional risk managers. That is, they successfully invest or lend money by managing the risk that the money will be repaid or not.
So, your job as the entrepreneur seeking capital is to reduce your investor or lender’s risk.
For example, let’s say that two entrepreneurs want to open a new restaurant.
Which is the riskier investment?
Entrepreneur A has put together a business plan for the new restaurant.
Entrepreneur B has also put together a business plan for the restaurant…and he has also put together the menu, secured a deal for leasing space, received a detailed contract with a design/build firm, signed an employment agreement with the head chef, etc.
Clearly investing in Entrepreneur B is less risky, because Entrepreneur B has already has already accomplished some of his “risk mitigating milestones.”
Establishing Your Risk Mitigating Milestones
A “risk mitigating milestone” is an event that when completed, makes your company more likely to succeed. For example, for a restaurant, some of the “risk mitigating milestones” would include:
Finding the location
Getting the permits and licenses
Building out the restaurant
Hiring and training the staff
Opening the restaurant
Reaching $20,000 in monthly sales
Reaching $50,000 in monthly sales
As you can see, each time the restaurant achieves a milestone, the risk to the investor or lender decreases significantly. There are fewer things that can go wrong. And by the time the business reaches its last milestone, it has virtually no risk of failure. Continue reading →