If this would-be entrepreneur wants to own her own coffee shop, she must start planning today.

By JENNY DANEELS

t has always been the case throughout history and throughout the world that a struggling economy poses many questions for a nation. So it is in Malaysia today, where bankers wonder if loans will be repaid, investors wonder if share prices will bounce back and homeowners fret about real estate values and mortgage payments. Jasmine Johari, in her thirties, and her husband Abdullah Hamidi, 49, of Kuala Lumpur share these concerns and more: They wonder what the economy has in store for cakes. And cookies. And the Malaysian dish nasi lemak.

No, the couple isn't worried about paying for their next meal. Jasmine's salary as an administrator for a foreign telephone equipment manufacturer, combined with Hamidi's military pension, amount to US$1,250 a month. That's enough to cover more than the basics for the couple and their four children: daughter Hajarul, 18; and sons Nizham, 16, Zulhazmi, 13, and Syafik, 7.

Rather, the entrepreneurial Jasmine and Hamidi wonder if now is the right time for Jasmine to realize her dreams of opening a coffee shop. And, if it is, they wonder the best way to go about it. "Now there's a recession, so we should probably wait one or two years", says Jasmine, who earns an extra $200 a month preparing and selling meals and cakes in her free time.

The couple already has first-hand knowledge of the difficulties of starting a business in the midst of an economic slowdown. Hamidi, a former army officer who took voluntary retirement nearly two years ago, runs his own trading company. He has been unable to secure needed financing, and the company is yet to make a profit.

Still, the family enjoys a comfortable lifestyle. They live in a two-story house in Gombak in the suburbs of Kuala Lumpur, own two cars (a Volvo and a Nissan) and travel frequently to their home town in Perak, north of Kuala Lumpur. They have also taken vacations to such places as Taiwan, China and Europe. And on Sundays, Jasmine, Hamidi and the two oldest boys love to hit golf balls at a nearby driving range.

Most important, though, is the kids' education. Hajarul is studying computer graphics at a private college that costs around $1,500 per year. As for the boys, Jasmine and Hamidi are hopeful that a strong academic record will land them a place in a low-cost government college or a scholarship to study in a private college. If neither happens, the parents will have to pay. "It is very difficult to get into a government university now, especially as so many students came back to Malaysia after the currency fell," says Jasmine.

So far, the economic slowdown has had little direct impact on the family's way of life, although Jasmine does note that the kids only get one outing a month to McDonald's, instead of one a week as had been the rule. But Jasmine worries about leaving a well-paying job to which she is very devoted and where she also receives training in management, accounting and other useful areas. Still, her heart is in the kitchen. "Cooking is my love," she says.

She began to consider making a business of her avocation four years ago, when she took some cookies to the office for the Muslim festival of Hari Raya. The response from her colleagues was enthusiastic, so much so that she was soon being offered catering jobs at her company. Soon, she was cooking for friends and relatives, and once catered an engagement party for 600 people. Today, she takes on an average of seven or eight projects a month, waking up before dawn so she can cook and still get to work on time.

Perhaps the best proof of Jasmine's culinary skill was the offer from a friend to bankroll her in business. Jasmine rejected the offer, but the idea began percolating. She has been asked by a large hotel to do its catering and has an inside track to land a 20,000-cookie-a-day contract with Malaysia Airlines. But Jasmine has decided she would rather run a small restaurant or coffee shop. "The smaller the quantity the better," she explains. "It's easier to keep control of the quality that way."

Her dream, then, is to open a Western-style coffee shop aimed at a young, affluent population. She would serve her famous cookies and light Western and Asian dishes. Because Jasmine knows that location is critical she thinks the new Kuala Lumpur International Airport, which is scheduled to open this summer, would be ideal. Her second choice is a new housing development called Lembah Beringin, north of Kuala Lumpur, where the couple purchased a house last year. Although the development isn't finished, Jasmine believes it will eventually attract an upper-middle class population because of its top-notch school, private hospital and golf course.

Before any of that happens, though, she has to get serious about planning. Starting even a small business will be expensive. Know-ledgeable friends estimate that she would require some $50,000 in start-up capital. The problem, though, is that her savings don't add up to enough, and she hasn't got a formal business plan, which she would need to attract financing.

Her total savings are substantial, but much of it is off limits. She has $3,750 in a government savings scheme, $2,500 in a Haj fund, around $400 in a life insurance scheme with AIA, the same amount in a kids' education fund and $25,000 in her Employment Provident Fund. Moreover, the couple hopes that they will be able to rent out the house in Lembah Beringin next year for $250 a month. But that may be wishful thinking, given the shaky real estate market in and around Kuala Lumpur. Likewise her notion of taking a mortgage on the house, which has probably dropped in value. As real estate values fall, banks are tightening credit. Still, both Jasmine and Hamidi remain hopeful. "By the time I am 45 I expect to be running my own business," Jasmine says.

THE EXPERTS' ADVICE To find out Jasmine's best strategy for financing and opening her coffee shop, TIME MONEY interviewed several experts in Kuala Lumpur: financial planner Nigel Harris of the independent financial advisory firm Towry Law International, Tang Chee Meng, chief operating officer at real estate consultant Henry Butcher Marketing; Mansor Bin Jusoh, business counselor at the Ministry of Entrepreneur Development Business Guidance Center; and Tan Soh Hooi, interior designer at Delta ID. Here is their advice:

--Start small. Because owning her own restaurant will require a tremendous commitment of time and money, Harris and Mansor recommend that Jasmine take baby steps by first increasing her catering business. To do so, she might have to hire one or two part-time employees, but the experience will give her a sense of what it's like to be a boss without having to quit her job. "Expand the existing business," says Harris, "but don't infringe on your existing job." This approach dovetails nicely with the next two pieces of advice.

--Research and write a business plan. All the experts agree that Jasmine's estimates for her business are too vague. Says Harris: "Jasmine needs a detailed sense of where the business will be, how much she will need for rent, equipment and working capital, and how much business she expects to do in the first few months and years." His back-of-the-envelope calculation suggests that Jasmine would need to generate $3,600 in monthly revenues to break even, assuming a $40,000 loan at 8% interest, two employees and a $375 monthly rent.

--Keep saving for the business. "The most important thing is to increase your asset base," says Harris, who thinks Jasmine should save $50 to $100 more every month from her income and place it in a six-month deposit. Harris cautions against taking out too big a loan and incurring high interest costs. For this reason he thinks the couple should rent out their house in Lembah Beringin as soon as possible, saving that money for the business as well.

--Don't neglect other goals. Harris recommends that the couple continue to fund their insurance scheme and save for the kids' education. In fact, he suggests that they invest $25 in a unit trust every month for that purpose. Such a regular approach to investing in stocks will effectively allow Jasmine and Hamidi to buy fewer shares when prices are high, and more shares when prices are low (see "Play the Average" on page 18). Towry Law recommends a unit trust such as Commerce-BT Lifetime Trust Balanced Returns Fund, which is invested in Malaysia. It accepts an initial investment as low as $250, then monthly payments of smaller amounts. It is sold through Commerce Bank, and investors can put some of their EPF money into it.

--Consider a Kuala Lumpur location for the coffee shop. The range of rents in Kuala Lumpur is extensive, notes Tang, so the city should not be ruled out when Jasmine finally gets down to choosing a site. That's especially true as Jasmine's first and second choices may not pan out: Commercial space at the new airport is obtained on a tender basis, which could prove too expensive for Jasmine. Meanwhile, says Tang, Lembah Beringin will need a few more years of development and growth before it can support a thriving business. Within Kuala Lumpur, says Tang, Jasmine should "look for a major draw, such as a popular shopping complex or a college."

--Above all, remember that time is on your side. The months Jasmine will need to research and write her business plan will also allow her to evaluate important business trends, such as the employment picture for the affluent young customers she expects to serve. More importantly, by waiting at least a year or two, Jasmine will be able to sock away additional savings. Waiting will also allow Jasmine to hone the skills she will need to successfully run a business. Mansor Bin Jusoh, for example, recommends she check out the state-run Entrepreneur Development Center, which offers low-cost instruction on how to set up a business.

Similarly, Tan Soh Hooi advises Jasmine to study the interior design in places she visits, so that she can save on the 8% to 10% commission she would have to pay a professional when the time comes to open her shop. She also reckons Jasmine could save by starting to buy kitchen equipment second-hand.