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The more supply there is, the less demand. If there’s less demand, then your price, you cannot increase it really that well. Okay. But you’re right, I realized after you answered my question, direct selling still has its advantages. I should find distributors, resellers in different areas. My fear is that not everyone has a freezer to store it. Also thinking of offering the product to hot-pot restaurants, but I don’t know how to start with that. What’s your opinion?

In my opinion, you are in a scale-up process. It’s like a start-up but also you’re trying to scale it up to see how you can balance it out. This has happened to me before in SEO Hacker. And this is because when we have new clients that’s the only time that we hire new team members, then we still need to train them, we lose time.

So what I do is, there’s a dilemma. Do I hire first? So that if I got a new client, there will be someone to handle that client, ready to take the load. So that we won’t be overloaded, we who are already working on something. Or do I wait to get a new client before I hire? Because hiring a new person and then we cannot get any new clients is more of an expense. So it’s like a chicken and egg problem and you’re actually there in that area right now because you’re actually selling 1000 packs. Yeah, 1000 packs for one year going to and from Singapore, you made it at least sell it out. You don’t have a problem there.

But now you’re thinking if you’re going to get the MOQ or the minimum order quantity, to be delivered here in the country, that’s already 2500 packs. And you’re not sure if you can sell it all. In terms of freezers, if you’re going to buy freezers, that is CapEx or capital expense. Meaning you’re gonna have to pay for it, you’re going to have that equipment for a long time, assuming you bought a good quality freezer, your products won’t easily spoil. My opinion is, if you really want to scale, there’s risk there.

My book, 50 X Your Business, which you can buy from Amazon, that’s the latest book that I published. That’s all about scaling up. That’s all about the risk of growth. The capital injection you need to put in when you’re growing your business or your company. There is a new risk, there are new capital injections when you’re scaling up. It is much like starting up, unfortunately, sadly.

So it’s difficult, but it’s also a very exciting time because right now you have funds and or capital because you sold 1000 packs. It’s not like you didn’t have money, now you have money. It’s just that you’re going to risk it again. That’s where we get the term na, “pinapaikot ang pera” (using your profit as a bigger capital.) You have to reinvest that money you made into assets, equipment like freezers. Don’t spend it on new cars. Don’t spend it on new gadgets. Don’t spend on things you want. Liabilities. Spend it on assets.

My suggestion, if that freezer’s going to go a long way and it allows you to sell the 2500 packs, definitely go buy the freezer. If you’re going to want to have distributors, my suggestion, you get a franchise consultant and ask the franchise consultant, how am I going to do this? I’m not an expert when it comes to franchising, but that’s one way you can go. If you want distribution centers who will help you distribute your product, they have to have a profit margin, they have to have their own freezers, which you may provide, or you may ask them to buy as their capital expenditure or their capital investment. And then, you have to have a system of transporting that product to them, making sure they’re stocked up, making sure that they can sell online with whatever channels you’re using or you may be using right now. Those are things that you can do.

Sean Si

About Sean

is a motivational speaker and is the head honcho and editor-in-chief of SEO Hacker. He does SEO Services for companies in the Philippines and Abroad. Connect with him at Facebook, LinkedIn or Twitter. Check out his new project, Aquascape Philippines

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