At the beginning of this June, we’re very glad to invited Willie Chao, the founder of The One Bookstore and Originn Hotel in Dihua street. How to found a successful small business is a critical issue, but how about the timing of exit is another art to learn in practice.
So Willie try to bring us to the story of his business to learn from the challenge he faced. “How to start a small business and the exit strategy” is the main issue he wants to share us. He introduced several strategies in different business cycle, such as the startup, growth, and declining stage. Using his own business, Walkers Hostel, Subway Restaurant, Originn Hotel, and The One Bookstore, he shared us his precious experience about how to start, grow, and exit.
Start a small business is always a challenge, Willie said. Market survey and identify key players in the market is the key point. Also, try to go to your competitor’s space and have a small talk with them can help you learn the business logic of running this kind of business. The initial capital is another challenge when you want to found your own business. Avoid borrowing too much money from your relatives and close friends unless they exactly commit not to interfere in or guide your business.
As for growth stage, Willie suggest to create a branch or start to make a new related business. For instance, hostel, café, restaurant, and travel agency. As you try to expand your business you can learn more from these related business. And this will enrich your knowledge base and avoid doing too much mistakes.
The last one is exit strategy, when your business was facing the epidemic attack, like Covid-19 epidemics, when to make an exit decision is very important. You may have several choices. First, sell your business as soon as possible, including the company, brand, or assets. The last but not least, look for another angel investor, that would be your loyal customer or your peer of the industry. Also, try to contact the big player in your industry, and check your loyal rich customer to help your business. Willie said, The Originn Hotel, when facing covid-19 epidemic, he checked with potential buyer, and fortunately got investment from his rich customer. That means the founder’s reputation and reliability is a critical part that needs addressing.