Our Contingency Plan

Regarding our business financial statements that were generated from Futurpreneur Canada using figures that were entered by us, the result was not as we expected. In particular, we did not make any profit and there seemed to be a huge loss. For instance, according to the income statement, our Year 1’s net profit after tax was -$33,729 and our Year 2’s net profit after tax was -$71,213 (which can be considered a huge deficit for a new business like us).

There could be several reasons for that. However, we have come together and discussed the two main ones which could be:

• • Bad Financial Management: as a newly established business, we had to invest a lot into our inventory, appliances, decorations, legal and regulatory items, accounting, marketing, rent/utilities, security, insurance as well as budgets for other objects that arose during the process of managing and running. We might have overspent unnecessarily (Robin Waite - Business Coach, 2019).

  • Competition: as we have mentioned previously, the pandemic is strictly under control by the Government of Vietnam. All businesses can now operate as usual following the government’s rules and safety protocols. Even though that we might have read about business closures in Vietnam, those are just a few examples. We have to understand that Vietnam is a unique market where you can have as many options as you want within walking distances. For example, if you take a walk along a street in the morning, there will be coffee shops and food stalls run by local people with great service at a much lower price. Those are some of our main competitors. Additionally, there are medium-sized businesses and international brands that are popular among the population. Any business must face competition, especially the newly establishes ones with even more intense competition (Haigh, 2019; Vietnam Investment Review, 2016).