insight
工程技术，地产投资，信仰家园，时尚生活
正文
Me & My Money Series (Sunday Times)
Oct 31, 2010
Eat, drink, and make Friends happy
Owner of Friends Group food and wine business relishes role as an entrepreneur
By Lorna Tan, Senior Correspondent
Mr Thomas Chiam always knew he wanted to be an entrepreneur.
After working in the corporate sector for a decade in various IT firms such as Hewlett Packard, Mr Chiam, 41, hung up his business suit and became a chef-cum-business-owner in 2005. He set up food and wine firm Friends Group with wife Jane Giam, 35, with an initial investment of about $300,000.
The group now owns several food outlets as well as catering and wine businesses. It has a staff of 50.
'We know that the food business is a challenge, so we need multiple revenue streams. By having a central kitchen that can do catering, we now have three revenue streams... from our restaurants, catering business and as a wine merchant,' said Mr Chiam.
Not bad for someone who did not even know how to cook before he left Singapore to pursue his computer science degree at Acadia University in Nova Scotia, Canada. He picked up his culinary and baking skills from his host family. He also learnt from his friends at university when he was roped in as chief cook to prepare a 10-course Chinese dinner for 500 people as part of its annual fund-raising activity.
The Friends Group offers what it says are healthy food choices, such as chicken bred without growth hormones or antibiotics.
Mr Chiam takes on the role of group executive chef and executive director while his wife is the sales and marketing director. They have no children.
Q Are you a spender or a saver?
When I was an employee, I was more of a saver. I could save at least half of my income every month.
I have been quite prudent from a young age. I don't watch every cent now, but I know I don't go overboard on my spending.
Q How much do you charge to your credit cards every month?
I charge most of my expenses to two credit cards - Amex and Citibank Ultima. My average monthly bill is around $10,000, which I pay in full via Giro each month. I don't visit the ATM. I withdraw cash once a week from the banks.
Q What financial planning have you done for yourself?
Jane and I are not into unit trusts and shares. It takes time to monitor shares and that would distract me. We would rather focus on our business. I'm still holding on to HP shares which I accumulated during my employment there.
I invested $30,000 in a guaranteed capital product back in early 2000. I was supposed to receive a payout every quarter but it didn't materialise. Luckily, I got my principal back but my money was locked in for the whole period of three years. It taught us a lesson, which is to check the fine print.
I have some insurance coverage. My life cover is about $350,000 and I also have cover for critical illness, disability and hospitalisation. I have two investment-linked insurance policies.
As a business owner, I ensure that I have a total insurance solution for my business, so we're covered for fire and business interruption as well as a public liability cover of $5million, besides workmen compensation.
Q What property do you own?
We own only the property we live in - a three-bedroom 1,650-sq ft freehold condo in the East Coast, bought for $1.28million in 2003. It is on the 27th floor and we enjoy the sea and city views. It has nearly doubled in value.
We are looking for a 4,000 sq ft commercial space for our business needs. Currently, our central kitchen is in Clementi and our warehouse and office are in Ayer Rajah.
Q Moneywise, what were your growing-up years like?
My late father was a supervisor with CK Tang for over 30 years, while my mother has always been a housewife. I'm the older child and I have a younger sister. My father died in 2008 from a stroke.
I grew up in a three-room HDB flat in Commonwealth Drive with a great unobstructed view of the Portsdown area. My late father trained us to be prudent. He did not believe in using borrowed money for luxury items; hence, he did not have any credit card, personal loan, or even home mortgage.
I learnt my money management skills when I went to Canada for my university education. I would get my whole year's allowance at the start of each year, and had to work for any extras, such as a holiday or a car.
Q How did you get interested in investing?
I'm an entrepreneur at heart. I have always had this desire to have my own business.
I learnt about shares from my father, who monitored his trades and did well. He retired at 55 with a large capital base for trading. During the 1997 Asian financial crisis, he liquidated his portfolio and kept only blue chips.
Q What's your retirement plan?
I'm a workaholic and I enjoy what I'm doing. I believe our health can deteriorate if we don't do anything. I'm on a constant lookout for like-minded franchisees to grow my business.
I believe in giving back to the community. Over the last few years, Friends Group has done some charity work. We support the Yellow Ribbon project and Club Rainbow, which help ex-prisoners and terminally ill children, respectively. We supply food and help out at their camps. I believe my wife and I will need about $6,000 a month when we retire, assuming no mortgage and only one car.
Q What's the most extravagant thing you have bought?
I bought a 1.5-litre bottle of Krug champagne for about $10,000 in 2008. Krug is the Rolls Royce of champagne. For that bottle, the grapes were harvested in 1969, which is the year I was born.
Q And your home now is...
Our condo unit at East Coast.
Q And your car is...
A white Land Rover SUV for when I need to move people and cargo. I use my silver VW Golf twin turbo when I am in a fun mood.
lorna@sph.com.sg
--------------------------------------------------------------------------------
WORST AND BEST BETS
Q What has been a bad investment?
It was an investment in a local telco content company which was a start-up then in 2005. I invested $50,000 and was asked to top up another $50,000 later. In all, I lost close to $100,000 before I withdrew from the venture in 2007. It was a passive investment that didn't work out. I didn't keep an eye on the day-to-day operations although I asked for the first-year accounts.
Another bad money management 'practice' was lending money to friends with amounts ranging from a few hundred dollars to $10,000. I didn't chase them so I never got my money back.
Q Your best investment to date?
Friends Group would be my best investment. Jane and I have constantly ploughed back our earnings to grow the company.
More than 80 per cent of the group's revenue comes from our catering arm, Friends Catering Services. Our outlets, some of which are franchised, include Friends Restaurant@Jelita, The Chicken Rice Company at Lau Pa Sat, and Friends Junior at Holland Drive and Depot Road.
Another good investment is in wine. While my firm has more than 1,000 bottles, I have a personal collection of more than 300 bottles which are now worth about $200,000. My advice to novice wine investors is to ensure that they have the holding power and never to borrow for wine investments. Like buying shares on margins, you may be forced to sell when there is a margin call.
Eat, drink, and make Friends happy
Owner of Friends Group food and wine business relishes role as an entrepreneur
By Lorna Tan, Senior Correspondent
Mr Thomas Chiam always knew he wanted to be an entrepreneur.
After working in the corporate sector for a decade in various IT firms such as Hewlett Packard, Mr Chiam, 41, hung up his business suit and became a chef-cum-business-owner in 2005. He set up food and wine firm Friends Group with wife Jane Giam, 35, with an initial investment of about $300,000.
The group now owns several food outlets as well as catering and wine businesses. It has a staff of 50.
'We know that the food business is a challenge, so we need multiple revenue streams. By having a central kitchen that can do catering, we now have three revenue streams... from our restaurants, catering business and as a wine merchant,' said Mr Chiam.
Not bad for someone who did not even know how to cook before he left Singapore to pursue his computer science degree at Acadia University in Nova Scotia, Canada. He picked up his culinary and baking skills from his host family. He also learnt from his friends at university when he was roped in as chief cook to prepare a 10-course Chinese dinner for 500 people as part of its annual fund-raising activity.
The Friends Group offers what it says are healthy food choices, such as chicken bred without growth hormones or antibiotics.
Mr Chiam takes on the role of group executive chef and executive director while his wife is the sales and marketing director. They have no children.
Q Are you a spender or a saver?
When I was an employee, I was more of a saver. I could save at least half of my income every month.
I have been quite prudent from a young age. I don't watch every cent now, but I know I don't go overboard on my spending.
Q How much do you charge to your credit cards every month?
I charge most of my expenses to two credit cards - Amex and Citibank Ultima. My average monthly bill is around $10,000, which I pay in full via Giro each month. I don't visit the ATM. I withdraw cash once a week from the banks.
Q What financial planning have you done for yourself?
Jane and I are not into unit trusts and shares. It takes time to monitor shares and that would distract me. We would rather focus on our business. I'm still holding on to HP shares which I accumulated during my employment there.
I invested $30,000 in a guaranteed capital product back in early 2000. I was supposed to receive a payout every quarter but it didn't materialise. Luckily, I got my principal back but my money was locked in for the whole period of three years. It taught us a lesson, which is to check the fine print.
I have some insurance coverage. My life cover is about $350,000 and I also have cover for critical illness, disability and hospitalisation. I have two investment-linked insurance policies.
As a business owner, I ensure that I have a total insurance solution for my business, so we're covered for fire and business interruption as well as a public liability cover of $5million, besides workmen compensation.
Q What property do you own?
We own only the property we live in - a three-bedroom 1,650-sq ft freehold condo in the East Coast, bought for $1.28million in 2003. It is on the 27th floor and we enjoy the sea and city views. It has nearly doubled in value.
We are looking for a 4,000 sq ft commercial space for our business needs. Currently, our central kitchen is in Clementi and our warehouse and office are in Ayer Rajah.
Q Moneywise, what were your growing-up years like?
My late father was a supervisor with CK Tang for over 30 years, while my mother has always been a housewife. I'm the older child and I have a younger sister. My father died in 2008 from a stroke.
I grew up in a three-room HDB flat in Commonwealth Drive with a great unobstructed view of the Portsdown area. My late father trained us to be prudent. He did not believe in using borrowed money for luxury items; hence, he did not have any credit card, personal loan, or even home mortgage.
I learnt my money management skills when I went to Canada for my university education. I would get my whole year's allowance at the start of each year, and had to work for any extras, such as a holiday or a car.
Q How did you get interested in investing?
I'm an entrepreneur at heart. I have always had this desire to have my own business.
I learnt about shares from my father, who monitored his trades and did well. He retired at 55 with a large capital base for trading. During the 1997 Asian financial crisis, he liquidated his portfolio and kept only blue chips.
Q What's your retirement plan?
I'm a workaholic and I enjoy what I'm doing. I believe our health can deteriorate if we don't do anything. I'm on a constant lookout for like-minded franchisees to grow my business.
I believe in giving back to the community. Over the last few years, Friends Group has done some charity work. We support the Yellow Ribbon project and Club Rainbow, which help ex-prisoners and terminally ill children, respectively. We supply food and help out at their camps. I believe my wife and I will need about $6,000 a month when we retire, assuming no mortgage and only one car.
Q What's the most extravagant thing you have bought?
I bought a 1.5-litre bottle of Krug champagne for about $10,000 in 2008. Krug is the Rolls Royce of champagne. For that bottle, the grapes were harvested in 1969, which is the year I was born.
Q And your home now is...
Our condo unit at East Coast.
Q And your car is...
A white Land Rover SUV for when I need to move people and cargo. I use my silver VW Golf twin turbo when I am in a fun mood.
lorna@sph.com.sg
--------------------------------------------------------------------------------
WORST AND BEST BETS
Q What has been a bad investment?
It was an investment in a local telco content company which was a start-up then in 2005. I invested $50,000 and was asked to top up another $50,000 later. In all, I lost close to $100,000 before I withdrew from the venture in 2007. It was a passive investment that didn't work out. I didn't keep an eye on the day-to-day operations although I asked for the first-year accounts.
Another bad money management 'practice' was lending money to friends with amounts ranging from a few hundred dollars to $10,000. I didn't chase them so I never got my money back.
Q Your best investment to date?
Friends Group would be my best investment. Jane and I have constantly ploughed back our earnings to grow the company.
More than 80 per cent of the group's revenue comes from our catering arm, Friends Catering Services. Our outlets, some of which are franchised, include Friends Restaurant@Jelita, The Chicken Rice Company at Lau Pa Sat, and Friends Junior at Holland Drive and Depot Road.
Another good investment is in wine. While my firm has more than 1,000 bottles, I have a personal collection of more than 300 bottles which are now worth about $200,000. My advice to novice wine investors is to ensure that they have the holding power and never to borrow for wine investments. Like buying shares on margins, you may be forced to sell when there is a margin call.
评论
目前还没有任何评论
登录后才可评论.
