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Showing posts with label Small business. Show all posts
Showing posts with label Small business. Show all posts

Friday 8 September 2023

Battle for deposits forecast to intensify



PETALING JAYA: As competition for deposits intensifies in the months ahead, one research house has bucked the trend by downgrading its outlook on the banking sector. It believes that competition for deposits could intensify towards year-end although pressure on net interest margins (NIMs) and operating expenditure may abate.

RHB Research commented that overall, banks have recorded decent second-quarter (2Q23) results, but they may not see a repeat of the hefty income in the first half of the year (1H23) from treasury and markets.

It said that with digital banks poised to launch operations in the months ahead – as exemplified by GX Bank (GXB) which began operations on Sept 1 – it will be interesting to note how conventional banks react to the attractive deposit rates these new entities are expected to offer.

RHB Research said in a note published yesterday that the revised guidance on NIMs would imply that banks are expecting 2H23 NIMs to be stable versus that of 1H23, or slightly better, while remaining watchful of loans exiting relief programmes for both the retail and small-medium enterprise or SME segments.

“For now, we forecast 2024 sector earnings growth to revert to the trend growth rate of 6% to 7% year-on-year (y-o-y), in line with our forecast corporate earnings growth of 7% to 8% y-o-y for 2024,” it said.

The research house pointed out that the banking sector has rallied by 8% since end-1H23 and by 9% since the 1Q23 results season, compared with 6% for the FBM KLCI, underpinned by the banks’ earnings holding up relatively better against the broader market.

It added: “Investors have started to look ahead towards NIM stabilisation – given that 1Q23 was likely the worst quarter in terms of NIM pressure. Also, 2Q23 earnings met expectations, while the declaration of interim dividends helped further support share prices, in our view.”

Meanwhile, casting a glance at Singapore’s GXS Bank Pte Ltd to ascertain what its subsidiary GXB would offer, RHB Research reported that GXS started off last year by offering depositors 0.08% interest in its regular savings and an additional 3.48% for its “saving pockets” accounts.

Calling GXS’ deposit account a “fuss-free product”, the research house commented, “Apart from offering better rates than some high interest savings accounts, the features that made GXS’ deposit product attractive were no minimum deposit amount, no maintenance fees and no tiered interest rate structure.”

The research unit added that the deposit account was well-received, and was followed up with the launch of micro loans, given the bank’s focus to render services to the underserved or unbanked segments such as gig economy workers and small businesses.

It revealed that in 2Q23, GXS began offering instant micro loans that the bank’s app users could apply for with ticket sizes from S$200 with tenures as short as two months, as interest rates start from 3.8% per annum.

As such, RHB Research is of the opinion that the features of GXB’s deposit product could be similar to that of GXS, while also expecting it to be similarly well received.

“That said, given the RM3bil cap to asset size during the foundational phase, the potential deposits that could migrate from conventional banks to digibanks should not be material, perhaps less than 1% of total deposits in the initial years,” it said.

It added that there had not been any significant deposit competition among Singapore banks last year as well.

Moreover, the research outfit said given the estimated deposit market share up for grabs in the Malaysian banking sphere, deposit competition should likewise be under control. “The key question is whether incumbent banks will stay rational,” it said.

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Related:posts:


Interest and inflation rates, how high is high?

Spotlight on virtual banking licenses


Silicon Valley entrepreneurs left in the lurch and livid, as banks topple, regulators face reckoning


Any contagion from US banking crisis?


Malaysian authorities crack down on virtual money operator, MBI Group International


Saturday 10 August 2013

How to grow a small business?


IT’S what everyone who’s ever wanted to start a business or already running one aspires to achieve - to grow big. But growing a small business is riddled with challenges.

The following, though not exhaustive, are some examples that will set you on the path to growing your still minuscule venture.

Technology

SMI Association of Malaysia president Teh Kee Sin acknowledges that technology adoption is often an issue for small companies.

“It’s always a challenge. They see technology adoption more as an expense rather than an investment. It’s something that they would rather avoid.

“But adopting technology into your business should not be seen as an immediate expense and rather, a long-term investment.”

Teh admits that one of the biggest nitpicks of small companies is the inability to secure financing to “move to the next level.”

“Many small firms complain that financial institutions demand a lot of unnecessary documents and information that is difficult to be fulfilled. So they get stuck and are not able to move forward.”

Teh says there needs to be more Government involvement so that support from financial institutions can be improved.

Branding

Branding Association of Malaysia (BAM) president Datuk Eric Chong says branding is extremely important for business organisations, regardless of the size of the organisation.

“Big and medium-sized businesses usually understand the importance of branding. They would not be where they are had they not understood and practised the art of branding along the way.

“Small businesses, however, usually struggle tremendously in this area. It is a chicken and egg situation for these small guys - should they make money and maximise profits first, or invest in their brands from day one?”

Chong adds that what a lot of small and medium-sized enterprise (SME) operators fail to understand is that branding isn’t just about spending money on advertising.

“While advertising is an essential part of branding, it takes much more than just splashing money around if one wishes to brand something properly. It is just like gardening - you need to sow the seeds and nurture the plants with consistency. A beautiful garden reflects the absolute commitment of the gardener; similarly, a good brand reflects the absolute commitment of the CEO and his team.

“It is about finding the right brand positioning, creating the right image, building a great brand culture, ensuring superb customer experience, communicate effectively with the market, etc. So is branding essential for SMEs? Yes, it lays the foundation and paves the way for a small entity to, someday, become a respectable player in the market.”

Talents

Leaderonomics chief executive officer Roshan Thiran notes that for many SMEs, leaders want growth but do not want to invest their time or energy to grow their people.

“This ultimately results in their company not growing either. Every company, even SMEs, are limited by the growth of their people. So, as long as your people are not learning and growing, don’t expect your organisation to grow exponentially either.

“As the business world changes, even small companies have become more attractive to young talents. Many start-ups can attract great talents in spite of their size or funds.”

Roshan says that many youths view working at start-ups more attractive than multinational companies.

“SMEs need to leverage this by their own personal inspirational leadership. People are attracted to work in an SME not because you pay well or have a big reputation.

“Instead, it is because of the leader. A great way to attract talent to your organisation is for the leaders and the leadership team to develop their own leadership skills. If you become an inspirational leader, the likelihood of you attracting talent rises significantly.”

Training

Peoplelogy group founder and chief executive officer Allen Lee says many small firms first complain that they have “no time” for training.

“Whenever they say they have no time, I always tell them to ‘make time lor.”

The next complaint, says Lee, is “what if I send them for training and they leave?”

“My response to them is always what if you don’t send them for training and they stay! If this is the case, how could these employees help small business to improve productivity and efficiency, cost savings and customer retention, for example? This also means that you will not have a chance to improve on your sales, cost efficiency, profitability and even your competitive edge.”

Lee believes most companies spend 60% to 70% of their money on people’s salary.

“And yet, they spend less than 1% of their total budget to develop the people. And most companies, in fact, spend more time and money on maintaining their buildings and equipment than they do on maintaining and developing people.

“If people get results, then it certainly makes good sense to invest in people. People are an asset to organisation anyway, regardless if it’s a big or small business.

Diversification

Established in 1974, PKT Logistics Group Sdn Bhd initially offered only customs brokerage services - but is now providing total logistics services.

PKT group chief executive and managing director Datuk Michael Tio believes that diversification was they key to how the company transformed itself into the total logistics provider it is today.

“As we started to diversify our services, our revenue grew. So the first step of growth was to continue to diversify services within the logistics industry by providing more services.

W started off as a custom agent, then subsequently expanded to freight forwarding, haulage, warehousing and so forth.”

Tio says the next step was to look for foreign partners to grow the business.“We found Japanese and Korean partners.

The Japanese provided us with a cushion during the currency crisis and the Korean partnership gave us entry into the automotive logistics sector.”

He adds that PKT started to observe how other multinational logistics companies expanded their revenue.

“We ended up competing with them in the fast moving consumer goods (FMCG) segment because 60% of the industry, or RM2bil, were controlled by them.

We had to overcome several challenges in order to compete with these companies, namely know-how, acquiring new technology, modern infrastructure and most importantly, moving up the value chain.”

Thursday 14 June 2012

From Idea to Business: Persistence is Critical

In honor of Entrepreneur Month, today’s column is an excerpt from my newest eBook, The Characteristics of a Successful Entrepreneur, premiering on Amazon this week.

There is no impediment that seems too great for a successful entrepreneur

Persistence is a vital characteristic of successful entrepreneurs. Driven by an indomitable spirit, successful entrepreneurs never give up on their dreams of building a viable business. There is no impediment too great. This unflagging attribute is a key characteristic of triumphant business builders.

Entrepreneurs face and tackle bewildering and potentially catastrophic situations. They possess courage, hope and a deeply held belief that they can survive the moment and continue to prosper. Personal strength, greatness, self-confidence, maturity and wisdom are by-products gained through unfathomable adversity. It has been said that men become great mariners when sailing on troubled waters, not calm seas. The same axiom applies in the business world.

Serious hardships may be financial in nature. They might also be employee-, client-, vendor-
 or investor-based. They may arise through human error or market conditions. I can see, in
 my mind’s eye, the depressed face of an entrepreneur who can’t make payroll or has just lost a substantial client. I can sense an owner’s profound frustration upon learning a product has failed and there is a lawsuit to manage. We can empathize with a founder’s pain when there has been a fire, theft or betrayal. Consider the emotions felt with the death of a spouse or key employee. These occurrences are severe, somewhat common, and require a powerful and thoughtful response.

During my forty years in business, I have experienced several situations that elevated my blood pressure and caused sleepless nights. They were emergencies that had to be resolved or the business would fail. I can recall with clarity, in the early days of MarketStar, a small technology client in Canada that would not send payment for the services we had rendered. Cash from the client was critical to our continuance as a startup company. We had to have the money the client owed us to survive. I repeatedly called the client’s president. I sent multiple messages via fax. He would not respond to my pleas. I was desperate. I wondered what I should do.

I decided to fly to Vancouver to meet him at his office, unannounced. He was startled to see me. “I’m here to collect payment,” I said. “I won’t leave until I have a cashable check for $50,000 in my hand. I will sit in your office as long as it takes.”

A few minutes later, I had what I had come to obtain and returned home satisfied with my actions and the results. Gratefully, MarketStar would not be added to a long list of defunct businesses. A treasured personal motto learned in my youth served me well: when the going gets tough, the tough get going.

For some heavy-laden founders, the obstacles are insurmountable and they quit. The dream they pursued comes to an inglorious end. As I visit with former entrepreneurs I have learned that immobilizing doubt and fear rule their thinking. They become paralyzed and unable to act. Disheartened, they feel helpless. They can see no good options, no appropriate answers to their state of affairs.

Having started and failed at four startup businesses myself, I can authentically sympathize with their dilemma. In many cases, the best decision is to turn out the lights and close the doors. For dedicated and persistent entrepreneurs, business failure teaches invaluable lessons — lessons that can be applied in the next venture. Entrepreneurship is a lifestyle; it’s an everlasting journey.

Most successful entrepreneurs have started and stopped several ill-conceived enterprises. I know of only a few lucky executives who have launched an award-winning business in their first try. Most of us need multiple attempts. We are, by nature, persistent souls.

If you plan to start your own business or you run one now, may I provide a few suggestions to help you when the going gets tough?

1) Don’t panic. Don’t give up. Be at peace. Have faith. Know you will develop an answer.

2) Take time to ponder and understand the situation. Obtain all the facts. Find out what happened and why.


3) Consider every option and every possibility to solve the problem.

4) Invite a trusted mentor to advise you on the matter.


5) Engage employees who can help.


6) Make a decision, then act.


7) Evaluate the results. If they are unsatisfactory, try something else.

Great leaders are survivors. They have weathered life’s stormy seas. They have moved heaven and earth to accomplish their business goals. They will never give up.

Alan Hall
Alan Hall, Forbes Contributor

Speaker, author, investor and catalyst for entrepreneurial growth.  

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Thursday 29 December 2011

How CEOs Can Build A Better Work Team In 2012

Deborah Sweeney


By Deborah Sweeney, Forbes Contributor, West Coast CEO who knows small business and entrepreneurs.

 

 Truly a Lightbulb Moment

Got a resolution for 2012 at the workplace yet?

Or better yet, what are the resolutions that your employees have for the company next year?

These resolutions could be lofty. Nab every sales call, land the biggest accounts, open offices in every major city overseas. They could be set on a smaller scale too. Leave earlier in the morning to avoid getting caught in traffic, ask for more beverage options in the kitchen, delegate tasks to other department members more often. All good goals for any team to work towards, but difficult for a CEO to process when they don’t know what their staff resolves to work towards, if they plan on working toward anything at all.

If you’re stuck in a place where the progress forward looks cloudy, this is the time to work on building a better work team for 2012. A team that is roaring and ready to go and certain of how their place in the company can lead to its eventual success. Building this team takes time, talent, and creativity. Sometimes it requires hiring new people and firing those who aren’t doing their part. More than just shooting off a couple of emails and hoping for the best, your team for 2012 will rely on you to think outside of the box as well as inside at some of the common sense bits that get overlooked. From new hires to clones, here are my tips on the building for the better within your company team.

1. Look Beyond Business BAs and MBAs

Not every person who gets hired for your business needs to be strictly all about business. Who will handle the legal division of your firm, the public relations aspect of your brand, the IT work for when the computers suddenly crash? A grad degree in business is attractive on paper, but not useful in every setting. Look into hiring candidates with backgrounds in other studies like communications that you would typically pass over.

2. Don’t Hire A Clone Of Yourself

Great minds think alike, but a greater mind will want to work with a team that expresses a slew of opinions and ideas across the board. Working with a team that is just like you won’t challenge your company to grow in a new direction if you all agree on the same things all the time. It’s easy to want to hire someone just like you, but more rewarding in the long run if you get someone to offer what you cannot to the table.

3. Allow Employees To Be Involved In The Hiring Process

Get an idea of whether or not a potential employee will be a good fit within their department by inviting the managers and senior staff members to the job interviews. They may have questions and concerns related to their field that you won’t touch on that decide whether or not a future hire is the best decision to make



4. Explain Company Culture To Your New Team Members Early

Welcome to the team! Beyond just your employee handbook, there are rules to the game of working within the company. Some work teams are much more by-the-book in terms of how to conduct yourself and may be much more quiet and soft-spoken. Others are willy-nilly and a lot more extroverted and open to embracing new ideas with members encouraged to leave their shyness at the door. A new hire needs to know the company culture early on so this isn’t so much of a shock to their system.

5. Answer Questions, Communicate Often

Future goals and upcoming projects will have a series of questions that come with them, especially if a team member is new. Hold plenty of open discussions and meetings to provide insight into what you’re working on. Keeping communication lines between all team members and yourself is key to the success of the project and the overall organization as a whole.

6. Hire People With Different And Complimentary Personalities

Much like not having dozens of clones of yourself, don’t do a similar thing with your favorite employee (and don’t play favorites either). It’s cliche to say it, but your team needs to have the snowflake effect where no two think or behave exactly the same despite having similar strengths in their field. Personality goes a long way and can work to give your company the face and voice it needs if it doesn’t already have a defined one.

7. Hire Milliennials

They are young, eager to please, tech savvy, and well educated. And if you treat them well, they will stay with your company (though not forever which is to be expected). Interview the bright young things and bring them on to see what they’re made of. You might find yourself to be pleasantly surprised.

8. Pay Your Interns

It isn’t a practice that every company commits to or can commit to, but at the very least offer a stipend if you decide to bring in seasonal interns.

9. Don’t Outsource Your Social Media Team

Gets kind of hard to create a voice for your online persona if the person creating it has never visited your office or interacted with your employees before doesn’t it?

10. Offer Flexible Schedules

This is a rule of thumb for both new hires and longtime employees. Circumstances do arise where not every member of the team can be there to make a meeting. If multiple members can’t do it or aren’t ready just yet, offer to reschedule the event. Employees with additional commitments outside of work like family or school will also appreciate a flexible schedule in being able to accommodate their lives and still work.

11. Encourage Employees To Pursue Outside Interests

Beyond just being a CEO, you may serve as a mentor to some of your staff. And your staff isn’t here solely for the company itself. They may be actively pursuing acting on the side or writing or engaging in other hobbies that could turn into their next career move later on. Have lunch with your staff both new and old to see what they’re all about on the side of their full-time job. Encourage them to share their published work with you or invite you to the opening of a gallery they have a painting featured in. Your acknowledgment of what they are truly passionate about is worth more than you think it might be.

12. Create Jobs Based On Valuable Skills

Want to a hire a new employee, but have nowhere to put them where you know they will really fit in at? Create  a position based off of their skill set. You may even wind up creating an entirely new and much needed department!

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Saturday 10 December 2011

Know yourself, your business


 Avoid head-on collisions with cash-flushed competitors

ON YOUR OWN By TAN THIAM HOCK

ENTREPRENEURS are the most gung-ho people in the world. But not necessary the smartest. More often than not, this everything-also-can-do attitude lands the entrepreneur in trouble especially in new projects.

Without a realistic assessment of his own capabilities in funding, experience and competitive strength, he plunges into so-called virgin territory that existing competitors dominate.

I have been trading in food, confectionary, toiletries and cosmetics for 26 years and the two product categories that I will not compete in are chocolate malt drink and mass shampoo for ladies. Nestle through Milo controls more than 90% of the chocolate malt market and unless you have suicidal tendencies, you will be better off donating your launch budget to your favourite charity.

If you turn on your TV, you will find shampoo advertisements in every channel, every hour and every brand. Well, every brand refers to brands from Unilever and P&G and the two of them control more than 80% of the mass shampoo business.

Unilever AustralasiaImage via Wikipedia
These are the only high margin high volume businesses that I will ask you to leave alone. Unless you have RM20mil to dump into TVCs in return for a 2% market share. And even then, your shampoo TVC will look the same as the others with long silicone hair swinging from side to side in slow motion being watched by slow-witted viewers already numb to new brands.

To be fair, new and small entrepreneurs have no access to market information, consumer research and competitive activities. Relying on their gut feeling and entrepreneurial spirit, they plunge into new businesses with gusto and optimism.

Unfortunately for every survivor, there are probably five casualties with battered pride, empty pockets and hungry families. What a waste of time, effort and financial resources.

Economist will tell you that competition breeds efficiency and inefficient players will be eliminated eventually. So before you invest into a new venture, do you consider yourself an efficient competitor? Do you know who your main competitors are? What is their competitive edge over you?

Competition comes in all shapes and sizes. Here are a few pointers about competitors that you should avoid and do what entrepreneurs do. Dream big, start small.



Avoid going head on with big cash-flush competitors especially when their petty cash is equivalent to your annual sales turnover. Concentrate instead on nibbling some market share. No point in waking the sleeping fat cat. There is enough fat in the business to keep everyone happy.

Avoid the herd mentality. By the time you hear the news, hundreds have gone into the business. Rubber gloves then, swiflets and kopitiams now. So stay out and let others enjoy the success. If they can.

Talking about herds, many politicians are angry because they were not offered loans that they do not have to pay back. Grave injustice indeed. I predict state feedlots will be the new trend. Opposition state government will also join in the cow and bull circus act. Opportunities of easy loans will be in abundance. Now everybody can breed.

Avoid big business. This is reserved for the well connected incumbents and GLC's. But keep your eyes open for any crumbs of opportunity that might just spill over from their inefficiencies. To the small entrepreneurs, crumbs is still better than nothing, right?

Or better still, for existing players, there will never be a better opportunity to cash out. GLC's are paying high premiums for non controlling stakes nowadays but offer is only open until cash runs out.
Avoid owning airlines and airports. Stiff competition for attention and support. Nobody trust nobody. But you. You will end up paying for every single service provided. But nobody will admit it.

But there's money in ancillary business for small entrepreneurs. Like printing protest stickers and placards. Or join the band of protestors online. RM10 for every tweet against price hike. And RM10 for any twit who is willing to believe that travelling by air will be cheaper in the next 10 years.

So where are the opportunities for small entrepreneurs? Plenty, if you know where to look for it. Just look at businesses that have been ignored by your competitors;

competitors like EPF, Khazanah, PNB, SEDCs, LTAT, Felda, Umno, MCA, MIC, politicians, politician's family, politician's cronies, politically-connected business tycoons, MNCs etc. Competitors with superior comparative advantage over you. Competitors who are allowed to sit on the dining table first and have their choice cuts before others.

But spare a thought for these competitors. There are just a limited number of seats at the table and come meal time, everyone is scrambling to get a seat. The first group gets the best cut, the second scrape the leftovers and the third gets to lick the plates and scream hell. Grave injustice indeed.

Now that competition is so intense at the dining table hosted by the government, some of these competitors have moved on to the private sector dining table. With superb strategies, bottomless funds and sheer political brute force, they have plonked themselves at the dining table and helped themselves to all the choice cuts of the economy.

The big entrepreneurs who refused to play the political game have cashed out and moved to greener pastures overseas. The small entrepreneurs will still be fighting among themselves for the leftovers. The economist is proven right again. Inefficient and weak competitors will perish.

Against my better judgement, I recommend that you stick to your original plan to open your dream 24-hour Kopitiam. It does not matter that there are already two mamak restaurants and three fast-food joints in your choice location.

At least, you get to put food on your own table, dignity in your heart and pride on your sleeve. You have fulfilled your dream to be an entrepreneur.

The writer is an entrepreneur who hopes to share his experience and insights with readers who want to take that giant leap into business but are not sure if they should. Email him at thtan@alliancecosmetics.com

Sunday 30 October 2011

Some advice on how to be a successful entrepreneur

An illustration of a company's supply chainImage via Wikipedia

ON YOUR OWN By TAN THIAM HOCK

Tan Thiam Hock gives some free but useful tips on how to be a successful entrepreneur.

 Know your weaknesses and strengths

JAGDEV from StarBiz sent me a cheerful email this morning reminding me of my weekly responsibilities. I am desperately searching for inspiration as I look around the dreary faces of fellow passengers on a train ride from Cambridge to London. Looking out the window, the sunny autumn day looks promising as we pass through the pretty countryside but somehow I had this feeling that it was going to rain in London. It was a hardly an inspiring thought but I do have to persevere and continue, inspired or not.

Since I started this column five weeks ago, I have had quite a number of entrepreneurs writing in, describing their frustrations at their slow progress in achieving success and was searching for nuggets of inspiration from me. Some relate their current business predicaments and asked for advice, others seek direction and even mentorship.

As for me, I was seeking refuge from a deluge of questions tinged with high expectations. I was in trouble, deep trouble. All I wanted to do was share some experiences, make a few jokes about celeb entrepreneurs and show the Star CEO a thing or two about mass marketing. Suddenly, I am expected to give advice and solutions to a vast variety of business scenarios and problems.

Qualified and knowledgeable consultants charge you for advice as much as your wallet can afford. Advice with solutions will cost you twice as much. Solutions with more questions which begets more solutions will result in permanent charges. I believe they call this personal coaching.

Sharing of opinion is free. You do not have to agree with an opinion. But you normally take an advice seriously because you paid for it. For once, I will give you free advice which should save you tonnes of ringgit in consultant fees. Just a few simple opinions for that man in the mirror.



Know your own limitations. Strengths. Weaknesses. Tolerance tests for suffering, humiliation, stress and financial deficits. Only your mum knows more about you than you. Once you have a favourable opinion about yourself, set realistic and achievable targets. Just be yourself. Play to your strengths and be the biggest fish in a small pond.

Be happy with little successes. Each brick of success will inspire you to the next level. Do not always dream of the big day, the one deal that will help you rule the world. It might never come. Besides higher financial rewards, have you built a better reputation with your bankers, suppliers and customers?. Are you happy with what you have achieved or do you still feel that the world owes you a living?

Wealth is relative so do not compare. There is always someone richer than you, bigger than you and smarter than you. Unless you are Bill Gates. Of which you are not. So stay humble. You will have more friends. And you will be a richer person for that.

Do not profit from other people's misery. Share your profits with your suppliers and your staff. A continuous profitable supply chain ensures long-term business survival. Suppliers and staff stay with you if they trust and respect you. And the only way you earn their trust is through honest engagements and mutual respect.

Behind all successful entrepreneurs, you will find a loyal core team of very capable managers. Ralph Marshall of Astro and Maxis, Kathryn Tan of AirAsia, Tan Sri Tay Ah Lek of Public Bank and countless other professional managers in all the successful corporations. Entrepreneurs hog the limelight with their vision and persona but they need to be complemented by trusted executioners to crystallise their vision. They are the unsung heroes and deserved to be treated with tender loving care by entrepreneurs.

Whether your business is small or big, when you are faced with what seems like insurmountable problems, you will feel really lonely sitting alone on your own little hill. Learn to embrace the solitude. Take this opportunity to reflect on where you have gone wrong. Take responsibility and not blame others. Eat humble pie if you have to. Take a step backward so that you can move two steps forward.

All entrepreneurs make mistakes. A successful entrepreneur does not make fatal mistakes. They just make more right moves than wrong ones. Just make sure the sum of positives exceed the sum of all negatives and you are on the way to a healthy balance sheet.

The Achilles Heel of high flying entrepreneurs has got to be over-confidence. Used to continuous rapid success, they start to believe in their own invincibility and perceived ability to be successful in every new business they wish to undertake.

Over-leveraging to fuel expansion can be fatal if the bleeding from new projects does not stop. So unless you have a bottomless pit of reserves like Genting or Hong Leong, be cautious in your ambitions. Expand, consolidate, strengthen your cash-flow, then expand. You will never be poor again.

I must admit that these opinions or free advice are hardly inspiring to entrepreneur wannabes. If you are seriously looking for guidance, there are many books on entrepreneurship. You could attend many seminars and join the numerous clubs for entrepreneurs. Just Google and you will find enlightenment.

Last piece of free advice.

No free lunches in business. Chew on that.

The writer is an entrepreneur who hopes to shares his experience and insights with readers who want to take that giant leap into business but are not sure if they should. Email him at  thtan@alliancecosmetics.com

Tuesday 16 August 2011

Three Ways to Think Big and Start Small






Step by step
From katerha via flickr

Taking the plunge into entrepreneurship is simultaneously exhilarating and paralyzing. If you’re like most entrepreneurs you’ve been living and breathing your business idea for what feels like forever, growing its potential in your head with each passing moment. And despite the anticipation and excitement, when the time comes for action, you feel stuck. Where do you even begin? How do you go about building an empire, changing an industry, or creating a legendary business?

The key to success for most entrepreneurs is learning to toggle back and forth between thinking big and moving things forward, which often requires taking small manageable steps. Here are three ways to make some progress.


  1. Get in the Right Frame of Mind Entrepreneurship is a marathon not a sprint. It’s easy to succumb to the feeling of urgency to do everything now. But burnout and entrepreneurial fatigue can mean sabotage for your business as well as your personal life. Prioritize longevity and keep one eye on the horizon. Think about what pace you need to set now to maintain your stamina and enthusiasm for years to come.

    Establishing good habits and resisting bad ones go a long way to preventing burnout. I have several strategies for staying refreshed: setting and sticking to my work/life boundaries; making space for creative thinking time; and taking vacations. When I don’t practice these habits, I feel compromised and overwhelmed. When I do, I am optimistic, creative and energized.


  2. Don’t Be Afraid to Experiment Think about the big questions that drive your business. What challenges are you trying to solve? What changes are you going to make to your industry? How will you know when you’ve succeeded? While these questions can help to keep the big picture in mind and your mission in focus, they don’t exactly inspire a neat step-by-process. And the truth is that there may be multiple, viable alternatives instead of one clear “right” answer.

    Instead of pre-determining a hypothetical outcome, get clarity by experimenting with various strategies. Experimentation will help you get more information, test the market, and build momentum for the big master plan. It will also help you get products into the marketplace faster and help you resist the inclination to be a perfectionist. For example you can test retail concepts with a pop-up store, improve products with focus groups, and test services with pilot participants. Consider the biggest question facing your business and what experiments might yield the necessary data.


  3. Brush Up on Your History Lessons What businesses or entrepreneurs to you look to for inspiration. Its important to identify businesses you want to be like when you grow up. But remember, these entrepreneurial superheros had beginnings too. Do some research to find out their early days were like. Learn from their lessons and take note of their milestones and decisions points. Seeing their journey helps to demystify the process and makes your business heroes human. It’s helpful to know that all business heroes had doubts and doubters of their own.

    It’s also important to dismantle your own myths of the overnight success. For example, few people realize that Hanky Panky, the famed lingerie company, had already been in business for 27 years before they scored the front-page Wall Street Journal article that made them a household name. Instead of focusing on their impressive brand recognition or their significant market share, see what insight you can glean from Hanky Panky’s recent decision to build a robust e-commerce site after being exclusively wholesale or their recent introduction of several new product lines. What can your business learn from this example and the examples of the giants in your industry?

Keeping your focus on building long term momentum, establishing good habits and taking small steps can help build momentum that will take you closer to your business goals.

Courtesy of Y.E.C. 
Adelaide Lancaster is co-founder of In Good Company, a collaborative workspace for women business owners in NYC. In addition, she consults to small business owners helping them to create and grow businesses that meet their needs and goals. Adelaide regularly teaches, speaks, and writes on topics relating to women and entrepreneurshi

Y.E.C. Women
via Y.E.C.
Co-Founded by Natalie MacNeil and Scott Gerber, Y.E.C. Women is an initiative of the Young Entrepreneur Council (Y.E.C.), an invite-only nonprofit organization comprised of the country’s most promising young entrepreneurs. The Y.E.C promotes entrepreneurship as a solution to youth unemployment and underemployment and provides its members with access to tools, mentorship, and resources that support each stage of a business’s development and growth.