Another Business Mission from the System
On December 9th, 2023, in the afternoon, Michael received a message from Catherine canceling their tutoring session due to some urgent matter. This was a bit of a setback for him, especially after their recent disagreement over his solar panel project. He had hoped to have her as a partner in his venture, but now, it seemed uncertain.
Feeling a bit let down, Michael tried to focus on the positives. He had enough funds to kickstart his business and didn't necessarily need a partner immediately. His attention then turned to an upcoming event at school, the PSME competition. His professor, Mr. Delgado, had agreed to let him present his solar panel project there. The condition was that he also had to participate in the quiz competition. The event theme matched perfectly with his project's focus on sustainable futures.
The quiz competition and meeting with his team were scheduled for December 12th, with the main event following on the 17th. So there's a lot of time for him to spare on managing his business especially when this mission popped up.
[New Mission: Finding Your Business Location. Now that you have enough funds, you may start canvassing for a potential location for your solar panel manufacturing center.]
[Rewards: 15,000 System Points, 1x Random Chest, and an Energized Drink.]
[Tips on finding the right location from the system:
Consider Proximity to Suppliers and Customers: Choose a location that is close to your key suppliers and potential customer base to reduce transportation costs and delivery times.
Evaluate Infrastructure and Accessibility: Ensure the site has good transport links for shipping and receiving goods, as well as for employee access.
Analyze Local Labor Market: The availability of skilled labor in the area is crucial for your manufacturing operations.
Check for Zoning Regulations: Make sure the area is zoned for industrial use and find out about any environmental or building regulations that may affect your business.
Assess Utility and Operational Costs: Look into the cost of utilities like electricity, water, and waste disposal, as well as overall operational costs in the area.]
Cracking his knuckles, Michael pulled out his phone and booked a Grab taxi. Moments later, the taxi arrived and he entered immediately. Thirty minutes later, he arrived at his home. His mother is still at work so he is alone in his house. He quickly entered his bedroom and started his work.
Michael eagerly opened his laptop and navigated to Lamudi, a popular real estate listing site in the Philippines, to start canvassing for potential warehouse locations for his solar panel manufacturing center. He had a clear idea of what he was looking for, thanks to the system's tips. However, he was in for a surprise.
As he browsed through the listings, Michael's eyes widened in shock. The prices for industrial warehouses were staggering. He found that purchasing a warehouse could cost anywhere between 45,000,000 to 700,000,000 pesos. Renting was no less daunting, with monthly costs ranging from 500,000 to 8,000,000 pesos. These figures were far beyond what he had anticipated.
Michael leaned back in his chair, feeling a mix of surprise and concern. His recent winnings, although substantial, seemed insufficient in the face of these real estate costs. He realized that starting a manufacturing business was more capital-intensive than he had initially thought.
"What's 17,000,000 pesos compared to the rent and the cost of buying one?" Michael grumbled, but he didn't ring any bell. If that's the cost of the warehouse, then he'll have to earn it.
Though he could get that money by attracting investors some of the investors are greedy and manipulative and would definitely want at least 30 to 50 percent shares of the company from start-ups, and Michael doesn't want to be under anyone's thumb. He decided to explore other options.
"Maybe there's a more cost-effective way," he mused, thinking out loud. Michael knew he had to be smart about his investments. It wasn't just about having a lot of money, but about using it wisely.
He started looking into smaller warehouses or perhaps shared spaces that could reduce costs. He also considered locations on the outskirts of the city, where real estate might be cheaper. Another option was to look for old buildings that could be renovated at a lower cost compared to buying a new facility.
Michael spent the next few hours researching online, comparing prices, and jotting down potential locations.
Michael's thorough research and careful consideration led him to compile a list of potential warehouse locations for his solar panel manufacturing center. He focused on areas outside the National Capital Region (NCR) to find more affordable options. His list included:
Warehouse in Batangas:
Location: Batangas City
Area: 1,200 square meters
Monthly Rent: 550,000 pesos
Industrial Space in Cavite:
Location: Dasmariñas
Area: 900 square meters
Monthly Rent: 480,000 pesos
Manufacturing Facility in Laguna:
Location: Santa Rosa
Area: 1,500 square meters
Monthly Rent: 600,000 pesos
Converted Building in Bulacan:
Location: Malolos
Area: 800 square meters (needs renovation)
Monthly Rent: 400,000 pesos
Newly Constructed Warehouse in Pampanga:
Location: Angeles City
Area: 1,100 square meters
Monthly Rent: 530,000 pesos
Each location had its pros and cons. Batangas and Laguna offered larger spaces but were a bit higher in rental costs. Cavite and Bulacan presented more affordable options, though the Bulacan location required additional investment for renovation. The Pampanga option was a balance between size and cost, in a newly developed area.
Michael planned to visit these locations to get a better sense of the areas and the facilities. He also intended to negotiate the rents and understand any additional costs involved, such as utility and operational expenses. His goal was to find a balance between cost, size, accessibility, and proximity to potential suppliers and markets.
But to do that, he needed to call someone, particularly a real estate agent who would assist him in getting detailed insights and potentially better deals on these properties. Michael scanned the listings, searching for contact numbers. He found the numbers of real estate agents associated with each property and decided to start making calls.
Picking up his phone, Michael dialed the number for the Batangas warehouse. The phone rang a few times before a professional-sounding voice answered.
"Good afternoon, this is Lara from Prime Estate Properties. How may I assist you today?"
"Hi Lara, my name is Michael Reyes. I'm interested in the warehouse located in Batangas City listed on Lamudi. Could you provide me with more details?"
"Ahh…Certainly, Mr. Reyes. The warehouse in Batangas is a spacious 1,200 square meter property, ideal for manufacturing or storage purposes. It's located in a strategic area with easy access to major roads, making it perfect for businesses looking to minimize transportation costs."
"That sounds great. What about the condition of the warehouse? And are there any additional costs I should be aware of?"
"The warehouse is in excellent condition, recently renovated with modern facilities. As for additional costs, the monthly rent of 550,000 pesos covers basic maintenance. Utilities and any specific modifications or upgrades you need would be extra."
"I see. Is there room for negotiation on the rent?"
"We can certainly discuss that, Mr. Reyes. I'd be happy to arrange a visit for you to see the property and talk about the terms in more detail."
"That would be great. I'm also looking at other properties, so I'd like to compare before making a decision."
"Understandable, Mr. Reyes. It's important to find the right fit for your business. Feel free to get in touch after viewing the other options. We're here to help you find the best solution."
Michael thanked Lara and ended the call, feeling a bit more informed and confident about his next steps. Four more calls to go.