Even F1, F2, and F3 students aspire to experiences and achievements.
Topic: Is overcoming hardships or overcoming joys harder?
Development stage: Pre-Seed.
Founders need to show investors:
- A minimum viable product (MVP) with positive customer reviews.
- Founder’s background related to the FnB industry or understanding of food culture.
- Successful exit experience is a plus.
- TAM, SAM, SOM are large enough.
Highlights:
- Focus on the FnB market in the US.
- Modernize the cơm tấm model and replicate it as a chain across the US.
- Clean and eco-friendly ingredients.
- Packaging made from biodegradable sugarcane pulp.
- Projected: 8 branches in Vietnam, 2 branches abroad.
- Transaction: 5 billion for 12.5%.
- Price: 30-120k depending on toppings.
- Inspiration from Subway and the food culture experienced while studying abroad in the US.
- High cost of goods but average selling price, selling 50 servings per day.
- Registered capital: 1 billion.
- Closing the deal: Shark Hưng: 1 billion for 45%, 4 billion additional funding depending on business performance. Shark Minh: 1.5 billion for 49%, 3.5 billion additional funding depending on business performance.
Overall assessment of the deal:
- Unlike other founders who started from scratch or with little capital, poverty can be an asset for this group of founders.
Being poor is actually a valuable asset for these founders.
Because when you have little money, you appreciate the difficulties you face. You learn to be self-reliant and resourceful under challenging circumstances. These challenges motivate you to change yourself, your family, and future generations.
While poverty can be seen as a disadvantage, it can also be a valuable asset.
Whether it’s a disadvantage or an asset depends on the individual’s qualities and inner strength.
Through these challenges, they become exceptional individuals with strong character, capable of achieving great success.
They may even become visionary leaders who shape the future of society and the nation.
- F1, F2, and F3 are different.
The starting point for F1, F2, and F3 is to continue their parents’ success under more difficult conditions compared to those mentioned above.
It may sound strange, but I think it’s much more difficult for them in business and entrepreneurship because:
Family standards: They have higher standards than society.
Conditions for suffering: They have fewer opportunities to experience hardship.
Conditions for understanding the value of labor in relation to money earned: It’s much more difficult.
Conditions for achieving the same level of success as their parents: Their parents always have high expectations, and these founders are constantly under pressure to meet those expectations while also trying to find their own identity.
In my opinion, what F1, F2, and F3 lack is a strong driving force, a personal mission, and the desire to create a legacy and achievements for society that are tied to their personal and family resources, allowing them to make decisions that align with their abilities and their parents’ expectations.
Therefore, while founders with less money are forced to learn about business and sales, I recommend that this group focus on learning about finance, money, and investment.
To manage money, one must have the courage to own, use, and multiply it.
If you have an artistic talent, pursue it.
If you want to do business, find a suitable mentor to guide you, gain experience, and immerse yourself in everything you can to test your abilities. It’s okay to make mistakes, as long as you have a framework and a way to measure the results of those mistakes and learn from them.
- In the past, students from well-off families could significantly enhance their competitive advantage by studying abroad in developed countries such as the US, Europe, the UK, Germany, Australia, New Zealand, Switzerland, Hong Kong, and Taiwan.
However, this gap has gradually narrowed due to:
Social media: Platforms like Facebook, TikTok, Twitter, Instagram, and LinkedIn
Online channels: YouTube, podcasts, and Google
Artificial intelligence: AI, ChatGPT, and numerous other high-quality knowledge-sharing tools
Influencers (KOLs), websites, and educational platforms
Educational programs have lagged behind the pace of practical application.
Currently, parents who are entrepreneurs or politicians and have accumulated wealth over 25-31 years are deeply concerned about choosing the right major for their children to ensure a successful future within the next 10-20 years.
Unlike the period of economic opening, where everyone had similar starting points, wealth accumulation now depends on factors such as interpersonal relationships, luck, ability, effort, determination, and wise decision-making.
The challenge for the F1, F2, and F3 generations, born into successful and wealthy families, is to find the will, motivation, and direction to work with their parents to take over the family business in a future filled with new uncertainties. This is a particularly challenging form of entrepreneurship that many in society may not fully appreciate.
- Barriers to Family Connection:
a) Generational language barriers:
Parents, grandparents, and grandchildren speak different languages.
b) Barriers to understanding the reasons for the previous generation’s success:
Understanding the reasons for the family’s success is crucial to appreciating the hard work, intelligence, and skills of the previous generation.
c) Barriers to understanding the reasons for success in the current, rapidly changing times:
Grasping current and future trends.
d) Pressure from asset inflation for families with significant wealth:
The larger the assets, the fewer qualified asset managers and the higher the risk.
e) The bond of love, recognition, psychology, beliefs, hobbies, listening, and positive emotional energy accumulated over 20-30 years shape the personality and behavior of F1, F2, and F3.
f) The gap between what is learned in Europe and America and the practices in Vietnam and local areas:
Applying only 50% of what is learned in Europe and America in Vietnam is considered a success.
g) The constant evolution of social media and artificial intelligence (AI) is replacing old educational methods.
The continuation of asset management and the inheritance of the family’s systems and empire is slowed down due to these gaps.
- A few questions for F1, F2, and F3
a) Should F1, F2, and F3 start their own businesses or manage their parents’ assets?
b) If a business is profitable, but the profits are not enough to offset inflation on the total assets of the entire family, what should be done to benefit both the individual and the family?
Given your position, what can you do to benefit not only yourself but also your entire family?
c) Assuming an annual inflation rate of 4%, a family with a basic asset of $10 million USD will lose approximately the equivalent of one BMW i8 per year in five years.
d) So, F1, F2, and F3 should not only focus on making a profit but also on reducing the learning curve in managing family assets.
e) Multi-Family Office: Unlike families with single assets, families with a long history of business and politics (over 20 years) should prioritize cost-effectiveness when allocating family resources for the benefit of multiple families.
f) How can we understand the reasons for the success of the family/founders (our parents) and understand the past and present to better shape the future? This will help reduce the generational language gap.
g) Understand the family’s strengths in terms of education, culture, and love/a solid foundation compared to other families to create a competitive advantage.
For example, F1, F2, and F3 can easily connect with their families through love and easily give love and affection to the world around them, employees, partners, and customers.
Conversely, it may be more difficult for F1, F2, and F3 to connect with their parents due to the challenges of treating the outside world well with a growth and positive mindset.
- Defining the Resources of Family Offices:
a) Current asset position, experience, and relationships within the industry supply chain.
This refers to the family’s financial standing, the knowledge and experience gained over time, and the connections they have within their industry.
b) Cross-ownership of shares in family companies.
Family relationships go beyond mere kinship. In high-net-worth families, there are deeper connections related to culture, family background, and future resource planning.
This includes sharing financial resources, which is not common in families with smaller or single assets.
c) Human Capital:
Education: Children should pursue education that aligns with their personality, family status, aptitude, global trends, local trends, and personal passions, especially in a country that places a high value on academic qualifications like Vietnam.
Geopolitical shifts: Understanding the opportunities and challenges related to Vietnam’s geopolitics and foreign direct investment (FDI).
Local knowledge: Having a strong understanding of local customs and practices to bridge the gap between Western education and the local market.
Proven achievements: Ability to raise capital, increase assets, enhance overall asset management capabilities, and exit from non-performing businesses or build networks to facilitate liquidity for family companies.
Risk management: Managing risks while optimizing operations and core businesses that have been developed over 20+ years, including the ability to accept valuations when investing, merging, or acquiring, and managing assets.
Family office focus: A family office built on a traditional wholesale model should focus on companies with similar valuations and success factors.
Reputation management: Controlling media exposure and the family’s public image, especially in relation to share prices or mergers and acquisitions.
Future leaders: Family members should become knowledge assets for the family in the next 10-15 years, specializing in areas such as finance, asset management, law, communications, or technology, rather than pursuing separate educational paths unrelated to the family business.
Succession planning: The next generation should be prepared to support the family business as founders increasingly seek to retire or delegate responsibilities due to the high costs of starting and running new businesses.
Strategic planning: For these families, family resource planning should be strategic, consistent, and focused on succession.
7. Barriers, Challenges, and Market Realities:
Choosing the right experts, advisors, and wealth managers for your children:
a) Balancing local knowledge and Western expertise: To succeed in Vietnam, one needs not only technical skills but also a deep understanding of local customs, relationships, and luck. However, it’s equally important to have a solid foundation in Western management principles and financial knowledge.
b) The importance of frameworks and principles: While innovation is essential, it’s equally important to build upon proven frameworks and principles that have stood the test of time. Not everything needs to be reinvented.
c) The need for experienced mentors: Mentors should be at a similar level as the family founders to provide guidance and support. Founders often need flexibility and adaptability, while mentors can provide the structured knowledge and experience.
d) Overcoming challenges: Whether it’s overcoming hardship or enjoying success, it ultimately comes down to individual effort and talent.
e) Openness and collaboration: We should foster a collaborative environment where businesses and individuals can support each other, leveraging their unique strengths and resources.
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