Ans: You can do both, but it would be better to get a franchise of a large chain as the systems , processes and controls would be well defined, and brand building will not be on your head.

Ans: It's great to hear that your son is planning to open a cafe. With his MBA knowledge and entrepreneurial spirit, he has a strong foundation to build a successful venture. Here are some steps to guide him.

First,
He must decide on a unique concept for the cafe that will set it apart from others. Whether it is a cozy space for book lovers, a health-focused menu, or a modern cafe with a tech-friendly vibe, having a clear vision will attract the right customers. Additionally, researching the market to understand customer preferences, competition, and pricing trends is important to create a viable business plan.

Encourage him to prepare a detailed business plan that includes his vision, projected budget, marketing strategy, and operational plans. Choosing the right location with good visibility and foot traffic will be crucial to the cafe's success. He will also need to obtain the necessary licenses and permits, such as food safety approval and business registration, to operate legally.

Next,
Focus should be on creating a strong brand identity with a memorable name, logo, and interior design. Offering high-quality ingredients and a menu with a mix of unique and popular items will help build a loyal customer base. Excellent customer service and a welcoming atmosphere will further enhance the visitor experience.

And the last,
He should leverage MBA skills to manage finances effectively and use digital marketing and social media to promote the cafe. With proper planning and dedication, cafe can become a thriving business.

Wishing her all the best in this exciting journey!

Ans: You're welcome! If you have any more questions or need further assistance, feel free to ask. Best wishes on your financial journey!

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

Ans: Running a family business with seasonal income is tough.
You’re 33, have a 2-year-old child, and handle business with your brother.
Turnover is Rs 1.25 crore yearly, but you’re still struggling with cash.
EMIs are Rs 1.5 lakh monthly, but you feel broke every month.
Though you’re making profit on paper, there’s no visible cash return.

This is a common problem in many small businesses.
Let’s now understand and restructure it with a 360-degree approach.

Know the Real Problem First
Your business shows profit but no cash.
This is a cash flow issue, not just profit issue.

Possible reasons:

Customers not paying on time

Too much money stuck in inventory

High credit to customers

Low margin despite high turnover

High fixed costs and personal withdrawals

EMI outflows not synced with income

You need to separate profit from cash flow.
And build control over every rupee.

First Fix: Separate Personal and Business Money
You and your brother must stop mixing accounts.

Have separate bank accounts

One for business, one for personal

Pay yourself a fixed salary monthly

Avoid direct personal spending from business

This step brings clarity.
You’ll see clearly how much money the business truly keeps.

Second Fix: Create a Business Budget
Don’t run operations without numbers.

List fixed monthly expenses: rent, salaries, EMI, utilities

Mark out seasonal expenses like fabric or transport

Track peak and lean months

Allocate money month by month

Break your Rs 1.25 crore into monthly inflow plan

This helps avoid surprises.
Also helps plan purchase and credit well.

Understand Where the Money Is Going
Do a 12-month cash flow audit.

You’ll see:

Where cash comes in

Where it goes out

How much is stuck in stocks

How much is with customers

What EMIs or interest is eating your profit

Most likely, your profit is going into inventory and credit.

Set Strict Customer Payment Rules
In seasonal business, timely customer payments matter most.

Don’t give credit without timeline

Offer small discounts for early payments

Keep payment follow-up strict and regular

Use digital tools to track pending invoices

If customers pay late, your entire cycle collapses.
Your money is in their hands, not yours.

Review Your EMI and Loan Structure
Rs 1.5 lakh monthly EMI is very heavy.
Ask these questions:

Can you refinance to longer term?

Can you get working capital loan instead?

Are you using EMI money for capital asset or daily expense?

Are you servicing loans from personal savings?

Many times, business loans taken emotionally create long-term stress.
Structure them clearly with a planner.

Inventory Is Silent Enemy
Clothes, fabrics, stoles, and kurtis pile up fast.

Too much stock locks up cash

You see profits in books, but cash is stuck in goods

Unsold stock hurts margins

Do an inventory health check:

What sells fast?

What sits for months?

Which items give real profit?

What designs are dead stock?

Don’t buy new stock unless old one sells.
Work on a lean inventory model.
Move from stock-based to order-based model if possible.

Take Salary Like an Employee
You and your brother must draw regular salary.

Fix monthly salary for each

It brings discipline and fairness

Avoids emotional withdrawals

Ensures business pays you—not drains you

Any bonus or profit should be once a year. Not random.

Cut Personal Lifestyle Leakage
If personal expenses are high, business suffers.

List all personal outflows

Reduce wasteful lifestyle habits

Live like a salaried person

Don’t increase lifestyle when sales go up

Also avoid using business credit for personal gadgets, trips, or loans.

Work on Increasing Margins, Not Just Sales
Turnover is Rs 1.25 crore. That sounds big.
But if margins are thin, you get no benefit.

Focus on:

Higher margin products

Value-added work (like custom orders)

Bulk orders that pay upfront

Lowering costs through better suppliers

Don’t run after more orders blindly.
Run after profitable and paid orders only.

Introduce a Basic Accounting System
If not using one, adopt digital books.

Tally, Zoho Books, QuickBooks, or Marg software

Track income, expenses, stock, and customer dues

Reconcile bank accounts every month

Even better, hire a part-time bookkeeper.
Let numbers guide you—not gut feeling.

Create a Business Emergency Fund
Businesses also need a buffer. Like personal savings.

Try to build Rs 3–5 lakh in business reserve

It should sit in separate account

Don’t touch it for stock or expenses

Use only in real emergency

This gives peace and protects business during slow months.

Engage with a Certified Financial Planner
You’re in business.
But personal finances matter too.

A Certified Financial Planner helps with salary planning

Helps set up your SIPs, retirement, kid’s education fund

Can also structure loans better

Gives you a business-personal plan

Your future needs a balance between business and personal wealth.

Don’t Use Index Funds or Direct Funds Now
If you’re thinking of investing:

Avoid index funds – no protection during crash

Avoid direct mutual funds – no advisor support

You’re already busy with business

You need a regular plan via a CFP-backed MFD

That brings discipline and guidance

Right now, clearing business mess is priority.
Then start small SIPs through professional support.

Simple Steps to Start From This Week
Open separate business and personal accounts

Track all money in and out for next 30 days

Speak to CA about EMI or loan restructuring

Do stock check – list what’s moving, what’s not

Start Rs 5,000 monthly SIP with planner, if possible

Fix personal salary for both you and brother

Build Rs 1 lakh cash reserve in 6 months

Start with action. Not emotion.

Finally
You’re not alone. Many small business owners are in the same trap.
You’ve been working for 10 years. That shows strength.
Now it’s time to bring structure. Discipline. Clarity.

With small changes and a monthly plan, things can improve.

Remember: turnover means nothing without cash in hand.
Run your business with control. Live your personal life with goals.
Keep them separate. And give your family a future of freedom.

Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment