Thursday 9 August 2007

ARN Business Opportunity

ARN Biz Ops ARN (Ananda Rambah Nusantara) is a local biz ideas consultant where its biz evolves around setting small-scale shop, its standard ops procedure, management system, admin & accounting system, including hiring staffs, initial stocks, and shop decor & furniture. ARN also provides consultative service on bizzes need boost, while keeps options open to buy the "dying" bizzes, re-managed and re-packaged, to be sold or simply to be owned by the franchisee. ARN focuses on small bizzes/shops, with capital requirement less than Rp. 100 million (mostly, ARN develop shops for as little as Rp. 15-20 million in cap requirement).

Sounds complicated? Wait, it's actually simple: First, should we buy the franchise, we are entitled to help others establish new shops or developing existing ones for a fee in exchange (hard cash coming in!). Second, the shop owners may trust the shop's management to ARN franchisee, for a percentage of net profit in return (cashflow coming in!). Third, ARN franchisees are entitled to build such shops ourselves and may sell them to potential investors later (cashflow coming in + potential hard cash coming in!). Fourth, ARN franchisees are entitled to receive from many more income sources, such as ARN Biz Book sales, additional services - staff hiring, back office system, etc, commission on opening new ARN offices, etc, etc, etc (more hard cash coming in!)

I also interested in this client-based biz (+ with multiple stream of income$$) simply because it's what early entrepreneurs have been thinking about - limited in cash, want to start biz, don't know where & how to start - more guts than experience (even ability). ARN tries to accomodate such entrepreneurs.

From the proposal I receive, the total investment is approximately Rp. 200 million - Rp. 75 million in license fee (take note, license fee is not franchise fee, although it's treated as one), Rp. 50 million in working capital (to establish 2 or 3 shops for potential clients), and others for renovation, fixtures, equipment, etc.

In my opinion, this business opportunity can be good in the future, because of its uniqueness in Indonesia biz arena. However, I'm still unsure what potential it will bring for the investor. And oh, investors aren't required to be active-owner: managements are set up by ARN HQ and run by themselves with minimum involvement of the investor. Possible? I can't say, unless I buy one and prove it myself. Any investors interested to work with me? :)
Anyway, I'll update soon should any information uncover! ;)

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