Small business lessons from Bali

There we were, in the Uber on the way back from a big afternoon/ evening in Hobart. In one long day we had managed to fit in a morning swim, breakfast on the docks, lunch at a winery, the opening of an art exhibition, dancing to a street band at a hops festival, and dinner in a luxe restaurant with cocktails and wine before falling into the car. My friends were giggling in the back seat about something ridiculous and reminiscing about the day. And me? Well, I was in the front seat talking to the Uber driver about his business model, writes Kate Christie.

Yes. I am a small business tragic. 

I just love talking to small business owners about their products, services, customer engagement, marketing, revenue, profit, competitors, goals, and next steps. I am endlessly curious about small business. Plus I love hearing peoples’ stories – how they came to do what they do, what makes them thrive, what problems they were solving for when they first envisaged their business, what they plan to do next. 

I am currently in Bali writing my next book. As a destination that relies on tourism for over 50% of its direct revenue, Bali suffered cruelly from the impacts of Covid. After opening its doors again to foreign tourists in May 2022, the island is starting to bounce back and if you are heading this way I encourage you to spend and tip generously with the multitude of small business operators who support the local tourism industry. 

And let me tell you – small business models abound in this magic place. The Balinese are incredibly entrepreneurial, and in a country where the average annual salary is IDR146,000,000 (approximately $AUD15,000 or $US10,000), it can certainly pay to be an entrepreneur.

Here are some favourites – all working exclusively in a cash-only model – and exactly what I learnt.

Suri – the massage lady 

Bali is literally the wellness capital of the world. Around every bend you will find massage centres, yoga studios, reflexology, reiki, meditation, and exceptional healthy food everywhere. 

The average price of a massage in an air conditioned spa is around $AUD20 for 60 minutes. You will pay a lot more at a hotel/ resort and a lot less at the beach.

I met Suri in Uluwatu – one of Bali’s most famous surf breaks. Suri is one of 75 people who rent an undefined space along the steep cliff steps that descend from the cliff top to the treacherous surf below. After watching the surfers carve it up for an hour or so, I approached Suri who called out to me from her position on a concrete platform offering me a massage. We bartered happily and settled on the price of IDR100,000 (approximately $AUD10) for 60 minutes. Suri made her first pitch at IDR250,000 but after I pointed out that I could get a massage in an air conditioned studio for half that, she agreed that IDR100,000 was fair. Suri produced a mat and oil and I produced a beach towel. 

What followed was the best massage of my life. Suri’s hands were strong and sure and after literally decades tending to surfers, she was very handy with a knotted back.

Suri was happy to chat about her business model. 

She, and the other 75 or so tenants rent their undefined space for about $AUD5 a day. On any given day, 35 of the 75 turn up and good naturedly compete with one another to sell massages, hand braided bracelets and other small trinkets. Of course, this is a cash-only economy and Suri says she makes around $AUD80 a day, working 5 days a week most of the year. Assuming a 48 week year, Suri is making around $AUD19,000 a year less $1200 in rent. 

The massage was so good and the conversation so rewarding, I tipped Suri an extra IDR100,000.

Lesson – share your business story, why you started, how it’s going, who you help. Have wonderful conversations with your clients and provide excellent products and services and they will keep coming back.

Doctor Ding – the surfboard repair wiz

Suri tells me that her husband is the Uluwatu renowned ‘Doctor Ding’. He rents a small shop front (essentially an open-fronted concrete space with 3 walls and a roof) a few metres from where Suri has staked her claim on the same surf break. Doctor Ding is in the business of mending broken surfboards. Rental for the shop is IDR10,000,000 a year (approximately $AUD10,000). 

At this point in my conversation with Suri, things got a little lost in translation and for a while there as Suri massaged my neck, I thought Doctor Ding was all about mending the surfers’ broken bones rather than their boards. But we got there in the end. 

On this trip, my son damaged his surfboard and Doctor Ding repaired it for $AUD65. Assuming Doctor Ding repairs 5 boards a day with about the same level of damage as my son’s board, and works 5 days a week over 48 weeks of the year, less rental, Doctor Ding is making a solid profit of close to $AUD60,000 a year (less the cost of tools and fibreglass). A lot more than the country’s average salary.

Lesson – locate yourself exactly where your clients congregate, make it very, very easy for them to find you. Have a snappy business name that is easy to remember (and repeat) and speaks volumes to the market you serve. 

Jack’s boss – the entrepreneurial priest

We met Jack after an unfortunate but luckily only slight collision between his car and my son’s friend’s motorbike. There was a dent in the car and Jack asked me to accompany him to the mechanic to get a price for panel beating. Off we went, and given the drive took an hour, we had plenty of time to talk business. 

It turns out that Jack subcontracts the car from his boss, a Priest, who is clearly quite an entrepreneurial fellow. As a Priest his major source of income is from builders who engage him to bless the land before a building project commences and again to bless the building when the project is completed. With Bali back in business post Covid, there is a lot of construction work – and blessings – going on. 

Jack’s boss has used his profits from the land/building blessings to buy 2 cars which he subcontracts out to Jack and another party to drive tourists around. In addition, he has purchased a truck which he subcontracts to – you guessed it – the builders who then hire him to bless their constructions. Nice.

Lesson – once you are established, don’t be afraid to diversify. Get to know your clients well and you may just be in a position to offer them solutions to their other problems.

The Lady Cooking the Corn

By far, the best and most lucrative business model I have come across to date is the lady selling BBQ Corn on the Cob on Bingin Beach. Her overheads are minuscule and her profit is massive. She has a tiny and very ancient BBQ grill which she must have purchased at some stage but which is well and truly not costing her anything now. She has twin 14 year old daughters who work with her. She uses a palm leaf to fan the flames, which I am guessing she plucks from a tree. Her only outlays: charcoal for the bbq, corn and butter. 

I was curious (and hungry) and so purchased a cob and we got chatting. The cob, which was bloody delicious, cost me IDR30,000 ($AUD3). The business owner informed me that she sells about 10 cobs an hour, and works 5 hours a day, 7 days a week, every week of the year. At this rate, she is making almost $AUD55,000 a year less the cost of corn (I found corn at the market for 20 cents a cob) and charcoal (I tried to find out the cost of charcoal in Bali, and the best I could find was $15 for a ‘large bag’.) Assuming a large bag lasts at least a week, she is making a glorious profit. Go girl!

Lesson – Keep it simple. Often the best, and most lucrative business ideas are the most simple in the world. 

And this is why I love small business owners. I love their ingenuity. I love their grit and hard work. I love that their business often involves a whole family. I love that they get to make and keep the profits from their toil. I love that they create their own destiny. I love everything about them.

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