Moving Forward: Reinventing Yourself After Business Failure - With Arif Memis
Former owner of Cowch Dessert Cocktail Bar, Arif Memis joins Phil on the podcast to share his experiences and lessons from running a successful business that had to close in early 2023 due to financial difficulties. The pair discuss the challenges of negotiating leases and supply agreements, as well as the impact of regulatory issues. Arif also highlights the need for business owners to take care of their mental health and to find a work-life balance, with a newfound calling on helping others.
Summary 💡
[0:01:03] | Overview of the Cowch Dessert Cocktail Bar business
[0:04:03] | Key triggers and turning points that could have been changed
[0:06:01] | Importance of financial stability and managing finances
[0:08:05] | Discussion on the balance sheet, profit and loss, and cash flow
[0:08:34] | Delay in becoming vertically integrated due to cash flow issues
[0:09:18] | Challenges faced in running a production kitchen
[0:09:58] | Impact of external factors on the business
[0:10:14] | Production facility and retail decisions
[0:11:52] | Challenges with liquor licensing
[0:13:43] | Legal and regulatory issues contribute to costs
[0:14:08] | Importance of negotiating leases and supply agreements
[0:15:18] | Importance of having lease agreements that suit your business
[0:17:18] | Challenges and complexities of supply agreements
[0:19:43] | Advice for struggling cafe owners: make rational decisions, take breaks
[0:20:26] | Consider the financial viability of owning a business
[0:20:36] | Seek advice and support from resources like The Coffee Commune
[0:20:59] | Need to turn to industry professionals for advice and support
[0:22:48] | Business planning should be practical and regularly updated
[0:24:32] | Don't be busy being busy, make time to know your numbers
[0:25:44] | Arif suggests implementing a tip system for staff in hospitality
[0:27:46] | Wages haven't increased in line with what customers are willing to pay
[0:29:18] | High wage costs are not sustainable for many cafes
[0:30:07] | Example of cafe with high wage costs and breaking even
[0:30:34] | High expenses exceed 100% of revenue without additional factors
0:30:28 | Phil discusses the financial challenges of running a business.
0:31:07 | Phil emphasises the importance of knowing your numbers and being empathetic.
0:32:01 | Arif talks about the importance of mental health and work-life balance.
0:33:24 | Arif encourages people to seek advice and talk to someone.
0:34:00 | Phil shares his thoughts on mental health and work-life harmony.
0:36:27 | Phil talks about the importance of learning from failures and moving forward.
[0:04:03] | Key triggers and turning points that could have been changed
[0:06:01] | Importance of financial stability and managing finances
[0:08:05] | Discussion on the balance sheet, profit and loss, and cash flow
[0:08:34] | Delay in becoming vertically integrated due to cash flow issues
[0:09:18] | Challenges faced in running a production kitchen
[0:09:58] | Impact of external factors on the business
[0:10:14] | Production facility and retail decisions
[0:11:52] | Challenges with liquor licensing
[0:13:43] | Legal and regulatory issues contribute to costs
[0:14:08] | Importance of negotiating leases and supply agreements
[0:15:18] | Importance of having lease agreements that suit your business
[0:17:18] | Challenges and complexities of supply agreements
[0:19:43] | Advice for struggling cafe owners: make rational decisions, take breaks
[0:20:26] | Consider the financial viability of owning a business
[0:20:36] | Seek advice and support from resources like The Coffee Commune
[0:20:59] | Need to turn to industry professionals for advice and support
[0:22:48] | Business planning should be practical and regularly updated
[0:24:32] | Don't be busy being busy, make time to know your numbers
[0:25:44] | Arif suggests implementing a tip system for staff in hospitality
[0:27:46] | Wages haven't increased in line with what customers are willing to pay
[0:29:18] | High wage costs are not sustainable for many cafes
[0:30:07] | Example of cafe with high wage costs and breaking even
[0:30:34] | High expenses exceed 100% of revenue without additional factors
0:30:28 | Phil discusses the financial challenges of running a business.
0:31:07 | Phil emphasises the importance of knowing your numbers and being empathetic.
0:32:01 | Arif talks about the importance of mental health and work-life balance.
0:33:24 | Arif encourages people to seek advice and talk to someone.
0:34:00 | Phil shares his thoughts on mental health and work-life harmony.
0:36:27 | Phil talks about the importance of learning from failures and moving forward.
Episode Highlights 🌟
Having a Solid Financial Plan
One of the key lessons Arif learned was the importance of financial stability. He relied heavily on debt to grow his business. He advises aspiring business owners to have a solid financial plan and a war chest of capital to weather any unforeseen circumstances.
Taking a Step Back
Arif admits that he led with his heart instead of his head, which led to emotional decision-making and an inability to make the necessary cuts when needed. Arif advises business owners to take a step back and make rational decisions, even if they are difficult.
Negotiating Leases and Contracts
Arif talks about learning the importance of seeking legal and practical advice when negotiating leases, as well as understanding the terms and conditions thoroughly.
Increasing Wages in Hospitality
One of the most significant challenges Arif faced was the increasing wages in the hospitality industry. While he acknowledges that staff deserve fair compensation, he also highlights the difficulty of sustaining a business when wages consume a significant portion of revenue.
Key Takeaways 🔑
- Financial stability is crucial for business success. Avoid relying heavily on debt and ensure you have a strong balance sheet, profit and loss statement, and cash flow.
- Negotiating leases and supply agreements requires careful consideration and expert advice. Be aware of the terms and conditions and seek legal and practical guidance.
- The hospitality industry faces challenges with rising wages and customer expectations. Business owners must find a balance between paying staff well and charging reasonable prices.
- Taking care of your mental health and finding a work-life balance is essential for making rational decisions and being the best version of yourself in both personal and professional life.
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Have questions or topics you'd like us to cover? Reach out to us at https://www.coffeecommune.com.au/contact/. Enjoy this episode and as always, thanks for listening.
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