Consulting My Mom on Starting a Business

My mother, who had been wanting to start a business, had almost made up her mind to invest in a곱창 (gopchang, Korean grilled beef tripe) restaurant.

Here are the points I've shared with her regarding her questions over the course of this time.

• The owner must have a complete grasp of all aspects of their business operations.
• The owner cannot escape; they must focus on strengthening their minimum capabilities as a representative.
• Worries and negative opinions from others are not meant to discourage or lead to giving up.
• Instead, they can be an opportunity to assess the current position of the aspiring entrepreneur.
• For any identified shortcomings, they can seek out someone with prior experience in that area and learn from them.

There's one core message I've always wanted to convey to my mother.

The mindset required to face the uncertainties of daily life as a business owner, alone.

Once she understands this, she can personally identify the range of possibilities and limitations. Only then can she realistically assess how far she can go.

Once she starts, the restaurant she's standing in will be intrinsically linked to her spirit, and she will be bound to it from the moment she opens until it eventually closes. She'll be constantly aware of her attachment to that place. That's why, before she starts operating the restaurant with a fixed daily schedule, I wanted her to create opportunities for her own personal growth.

That's probably why she recently told me that when franchise representatives ask if she has any children who can help, she replies, 'No'.

Following are some instances I've observed through recent conversations with my mother, which I believe aspiring entrepreneurs should ponder deeply and try to put into practice.

A. She mentioned that she's meeting with the owner of a 70-store franchise brand and his father.

Of course, she said this meeting was for her to check on the location she's been looking at, explore the surrounding business districts, and discuss the suitability of the franchise business model. From her perspective, the most important aspect was to determine the total initial investment cost. However, from my perspective, these two individuals, regardless of the immediate contract decision, are people who are not easily encountered in the food service industry.

The father, who started in a small shop in Incheon's market, has maintained and grown his 곱창 (gopchang, Korean grilled beef tripe) restaurant for 40 years. Even though times have changed, and there are differences in location and individual owner's luck, there's definitely much to learn from someone who has built their business to this level. Furthermore, the owner of the franchise brand, who has successfully led the franchising business and interacted with numerous aspiring entrepreneurs, witnessing their failures, survival, and ultimate success, is someone who can offer valuable insights from a corporate system management perspective.

Naturally, there's a very high chance that these two individuals, like my mother, are primarily focused on confirming the contract details. However, meeting and talking to them still represents an opportunity for my mother to learn beyond the main topic of discussion.

In relation to this, I quickly compiled and shared the following three questions with my mother.

• Is there a chance to share the burden of the interior design costs?
  (This is a current issue that needs to be decided, and it's a key issue that determines the contract decision. It's about confirming the possibility of my mother's proposal.)
• Can they provide a weekly guide on how to survive the first month and the first three months after opening?
  (Know-how on online and offline promotions. Most of the franchise representatives my mother has met emphasize the importance of surviving the first three months.)
• Based on the experience of building a store in Incheon for 40 years, what factors, beyond taste, were crucial for survival?
  (Know-how on building a brand as an individual store. Most business owners face uncertainties in their daily routines, despite diligently performing their assigned tasks. It's valuable to learn how they addressed these uncertainties from someone who has overcome them.)

The answers to these questions, even if they don't lead to starting with this specific brand, can offer insights into the conditions for survival and building competitiveness for an individual store, and further, for transitioning towards a corporate model by managing customers and engaging in promotions. Therefore, even if the other party is primarily focused on the immediate contract issue, one can choose to actively seek the necessary information by preparing appropriate questions in advance.

B. My mother was contemplating the franchise company's final offer to slightly reduce the initial interior design cost of 65 million won.

My mother said that during her meetings with the franchise company, they offered to reduce a portion of the initial interior design cost. I shared some thoughts on the basic attitude towards 'negotiation' with her, considering that she's contemplating signing the contract due to this reduction.

Imagine a situation where your company offers a 5% salary increase for a salary negotiation. Even if you find out later that they're ultimately willing to offer a 10% increase, which is the first time they've done so, you need to realize that if this is similar to or less than the average industry salary, the negotiation is being conducted on a biased basis.

In other words, if the initial startup costs are more burdensome than you expected, you need to understand that the interior design costs that the franchise company requests are an implicit demand aligned with the services provided by their internal team, which is in line with the franchise company's revenue goals. Even if you have sufficient investment funds, you should not simply accept it. You must acknowledge that the amount is implicitly or unilaterally demanded and consider whether it's worthwhile in the long run.

C. My mother requested a meeting with an owner who had repeatedly sold stores with high premiums.

While contemplating the unexpectedly high initial startup costs, my mother discovered a rather interesting success story through conversations with competitors. She heard about an owner who had opened a store under this franchise brand and sold it for multiple times the premium after just two years. Apparently, this owner successfully repeated this process twice more with the same franchise brand, selling stores for higher premiums and then moving on.

If this story is indeed true, my mother, who had been contemplating survival versus high revenue for a single store, has encountered an example that could potentially lead her to envision a more entrepreneurial future.

Considering the importance of this conversation, I advised my mother to see if she could get the owner's contact information from the franchise representative. She called immediately after receiving the number, and the owner expressed empathy but said he was busy and would get back to her.

Regarding this situation, I shared some basic advice on how to approach making an appointment with someone you want to meet.

• Specify the desired day and time and ask for their availability.
• When proposing a meeting with someone who is busy or who you believe might not find it beneficial, frame it in a way that allows a simple yes or no answer.
• Prepare specific and insightful questions.
• Try to arrange the meeting at a time and place that is convenient for the other person.

There are countless reasons why someone might decline such a meeting request. And even if they agree to meet based on these terms, the level of helpful advice they offer will depend on the requester's attitude and the quality of their questions.

Also, if the other party is successfully selling their previous store and preparing for a new one, I suggested it's best to meet at the new location. This is because the greatest outcome for my mother from this meeting isn't simply obtaining the successful owner's opinions. The most significant achievement is the realization that she too can develop and grow her business like them. This vision of continuous growth is a valuable asset for my mother, an aspiring entrepreneur, as she considers her next steps.

The points I've shared are quite obvious for those who work in corporations. However, I hadn't realized this until I observed my mother actively engaging with my advice. Since she has been paying more attention than I expected, I thought that this might be helpful to others facing similar challenges, and so I've decided to write it down.

Honestly, my thoughts are just one perspective among many for my mother. However, she consistently takes the time to process the advice I give her, and remarkably, she acts on it immediately and verifies its validity firsthand. I am truly proud and grateful for her actions. I simply hope that she continues to create a process for herself that she can understand, just as she has been doing today and tomorrow. At least to me, my mom is truly amazing.