4 Most Important Things To Know About Your Business Coach: Phal IM is….
I. Startup Struggles and Success
“At that time, I did not know how to create a start-up company; I did not know how to manage my own business,” Phal said of his 2008 company idea with five buddies. I had enough experience in the industry we wanted to pursue, but it was too difficult back then, so I remained working for another two years.”
The group formed a joint venture in 2010. They founded OBS Trading Group, importing home appliances, with $60,000. Phal became GM.
The company folded after a year. “We were a new, inexperienced team and didn’t know enough about business,” Phal says. We had no marketing plan and couldn’t identify our target market. We lacked business leadership and management.”
Three shareholders withdrew and requested the company’s dissolution due to losses. Phal refused, so he and his partners explored modifying the company plan.
Phal decided to make the firm a logistics company based on his customs agent experience in Sihanoukville. However, cash flow issues and company control made it hard to withdraw cash for operations. Another partner left, but he didn’t demand money for his half of the firm to retain their friendship. Phal had one business partner.
The company was renamed OBS Logistics in 2012.
Phal struggled to raise enough money to develop the company. He convinced his sister to use her land title for a bank loan. Phal received a $30,000 bank loan for the first time.
Phal’s lone partner told him in March 2017 that he had to leave the company since he no longer wanted to be a customs broker. Phal was depressed since the company was losing money and he owed the bank and others.
“He suddenly asked to sell his shares to me,” he says. I had no choice. I had to acquire his shares despite having no money. I wrote him a check, which might have placed me in jail if he cashed it and sued me for non-payment.”
Phal believed the situation might be overcome with time. “I’m brave and never quit,” he says. I never gave up on my business, even on my own.” Phal had a lawyer alter his share payments.
In June 2017, the company had more exports and imports than projected, resulting in a residual cash flow of over $300,000. We then focused on sales and marketing and improved the team and corporate structure until now.
II. BNI and ActionCoach
In 2013, Phal was invited to a Business Network International (BNI) meeting. He joined to learn about company after realizing he lacked leadership qualities. “I thought BNI would give me a good future,” he says.
BNI bylaws forbade overlapping enterprises, yet there was only one chapter in the country at the time.
Phal formed BNI Millionaire with a group of business entrepreneurs in 2014 to join BNI. He learned how to develop a better business plan from the more experienced business owners in the small network.
Phal became chapter president in 2016 after serving as vice president. Phal became the executive director of BNI Regional in February 2017 after purchasing the Region 2 BNI sub-franchise with two partners.
BNI inspired Phal to study and become a successful businessman. “Mr. Samdy Lok, National Director of BNI, has changed my life,” he says. I’d be nowhere without BNI.” He continues, “I have learned how knowledge can help me. Leadership and management skills would save my business. Success and failure depend on personal development, notably leadership and management skills.”
Phal owns Business Coaching (Cambodia), a business coaching company brought to Cambodia by fellow BNI member Iv Kimsour. Action-COACH Cambodia operates Business Coaching (Cambodia).
ActionCOACH has helped thousands of business owners in every industry for 20 years. Every week, Action-COACH helps tens of thousands of business owners achieve the freedom and lifestyle they wanted when they started their businesses.
Phal considers Business Coaching (Cambodia) part of BNI’s Lifelong Learning philosophy. He wants to help other BNI members because he has benefited from their advice and experience.
III. Zero-20 Assets
Bank loans helped Phal fund his business in 2011 and 2012. This was necessary because he had no other options. He asks why—cash rules. “Money is king, and we can run a business properly with money,” he replies. “Bank loans were the best way to get cash flow for my business.”
He continues, “I used bank loans to operate my business and create wealth. Bank loans saved my business and gave me cash. Later, I invested some of my gains in real estate to build my property portfolio.”
“You need to be financially strong to help your community and country,” he says. Phal says he never lost up on his business even though he struggled for years because he realized he had to build assets to become financially comfortable.
He says, “After joining BNI, I started practicing what I had learned at school, society, and especially from ActionCoacch to improve my business. Build a profitable business to get trust. I accomplished this, and after three years of business growth, I was able to leverage more bank loans to create my riches, but I could not have done this without a successful business.”
More exports and imports than projected in June 2017 resulted in a residual cash flow of almost $300,000. The corporation started investing in real estate after cash flow improved.
“My strategy was to use OPM—other people’s money—for around 70% of the investment, meaning I only had to find about 30% myself,” he explains.
His first deal was a $690,000 land purchase in October 2017. Phal invested 30% after getting a bank loan. The transaction was completed on October 30, and the bank provided him a $200,000 loan the next day to pay for his half and stabilize the company’s cash flow for six months. The property’s value increased to $750 per square meter after revaluation, a 100% ROI.
Phal now has over twenty real estate investments valued at about $16,000,000. Since he invested approximately $700,000 in cash, his ROI is 2,325% over five years, or almost 465% yearly.
IV. Business During COVID-19 and Beyond
Phal attributes his business’s pandemic resilience to the 20/80 rule. “20/80 means focusing on a core 20% of customers can bring in 80% of revenue,” he says.
He adds, “During a pandemic, there is no point in using all your resources to market to the whole customer base since eighty percent of them will only provide twenty percent of your revenue. Instead, targeting the top 20% of customers concentrates on financial resources where they matter most. That’s why Covid-19 didn’t affect me.”
Phal also feels that failing to invest in education caused many pandemic-related company failures. He claims crisis-survival skills cannot be taught in school. He thinks business owners need tools to lead and grow their firms and adapt to crises.
Phal feels his BNI knowledge helped him survive the pandemic and will help other firms as a Business Coaching trainer.
Phal believes assisting other company owners to improve financially will benefit the nation. He said, “Only financially strong businesses can help the country’s economy recover and grow better. Why focus on finance?” he asked before answering. “When an economy is strong, companies can develop human resources, which helps people and is good for the community and the country.”
Phal concludes with ActionCOACH’s founder and owner: “Brad Sugars said, ‘Where you will be in five years will depend on the books you read, the people you associate with, and the actions you take.’ My experience has impacted my philosophy: I will live because of the information and business abilities I learn now.