Banking On Customer Disservice

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May 27, 2007

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During the course of my work, I’ve been regularly approached by small business owners and starting entrepreneurs who are interested in public relations to help grow their business. Whether it is to grow brand awareness or drive public interest in their goods and services, some of them see public relations as a way to propel their business to a new level.

Unsurprisingly, the first thing they always ask me is, “How much?”. I always explain that, like legal advice, PR is really a form of consultancy service that is catered for a business’ specific needs – i.e. case-by-case basis. There is no hard-and-fast rule in charges, and PR agencies charge differently from client and client.

I’ve put together some five points for entrepreneurs considering PR to think about:

Do you even need PR? Don’t jump on the PR bandwagon simply because it sounds hip or that everyone is doing it. There are some businesses which are not at a stage which needs PR yet.

The best example of this is when there is really no capacity for growth in your one-man operation, for example. It is a waste when a successful PR campaign generates interest in your business, but you have no means to leverage upon.

Know what you want out of public relations. It is crucial to know what you want before you even meet up with any agency. Is it purely to drive consumer interest – and by extension, sales – in your latest products? Or is it for branding, or to attract new investors to your business? It could be that you’re faced with possible negative legislation or community backlash? Each scenario is different, and therefore require different approaches.

Don’t expect the PR agency to spell it out for you – because they are likely to give you more than you need, and charge you accordingly too.

Look at the broader picture. PR should not be seen as separate from other business functions. Many people I know make the mistake of isolating PR away from their marketing efforts or even front-line operations – i.e. “what has PR gotta do with customer service?”

Like legal advisors, PR experts are there to support your entire business. Be prepared to share every aspect of your business with them. You want, for example, for your marketing campaigns and PR efforts to say the same thing.

Don’t confuse PR as a cheaper alternative to advertising. Many people, even professionals, confuse PR as a cheaper way to reach their markets as opposed to advertising, which they see as expensive and sometimes, ineffective. This is a fallacy – PR and advertising are merely different marketing tools to reach various audiences. The best marketing campaigns leverage on both tools to communicate different messages to their different publics for different effects.

Advertising – and by extension interruption marketing – is still one of the best ways to reach the masses, especially those who’ve never heard of you or your product.

Shop around. Don’t go for the first agency you meet, and don’t go for the cheapest quote either. Different agencies have their strengths, and you want one with great contacts with the media that cover your industry.

Also, like all consultancies, it’s the people – your account servicing team – who are going to work directly with you that matters. Some agencies send their big guns to win your business, but later relegate the actual work to peons. Make sure that the account servicing team has the appropriate experience, and that you have synergy with them. So choose wisely.

The High Price of Failure

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May 24, 2007

I was house-hunting recently – a norm for those getting married ^^ – and was alerted by a property agent to a place in the eastern part of Singapore. No thanks to the incredibly overheated property market, there were already scores of interested buyers present when we went to view the apartment (a 4-room HDB flat).

When the other potential buyers left, I chatted up with the owner selling the flat. He shared that he was migrating to Malaysia as he had business interests there. After some digging, his heartwrenching story came out – his businesses had failed one by one and he was an undischarged bankrupt. He needed to sell off his apartment to repay his debts. Essentially, he’s moving to Malaysia to start over.

He has eight children, two of whom are about to enter university. He’s about to lose his house. He owes the banks money. What price, failure? For this man, it will be a long and hard climb back into redemption.

This conversation was a jolt of reality. While I am all for entrepreneurship, I am of the belief that the journey is not for everyone. Not everyone can afford to take the risks.

Not when there are ten mouths in the family to feed.

I bought the house, by the way.

Why Entrepreneurs Should Learn From Children

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May 21, 2007

I’m reading a great book called Entrepreneurial Faith: Launching Bold Initiatives to Expand God’s Kingdom by Kirbyjob Caldwell and Walt Kallestad at the moment. While the main thrust of the book is to exhort Christian believers to adopt a more entrepreneurial approach in growing God’s kingdom, one particular section caught my eye – Lessons From the Youngest Entrepreneurs.

“Children are great models of entrepreneurship in action. Whether they are running lemonade stands, washing cars, walking dogs, or mowing lawns, children know what adults find so hard to understand: Entrepreneurs simply see a need and then find a fun, creative way to meet it (emphasis my own).”

“For some reason, kids absorb this concept without making the challenge more complicated or difficult than it is. Children don’t look to add more tedious labour to their lives. For some reason, as we grow older we think something needs to be difficult or a struggle in order for it to have merit. Kids easily do what they love and figure out how to avoid what they don’t like to do. Even when faced with chores when they would rather be outside playing, children find ways to make the work fun, often by coming up with new ways to complete a task.”

How cool.

Maybe entrepreneurs should take a step back from what they are doing, and look at the work that they do with the eyes of a child. Perhaps you can discover a new approach to the way you handle an old problem, like treating a potential crisis as an opportunity (think: chores vs play).

Ah, to be a child again! (Which reminds me, I can’t wait for Transformers the movie.)

If You Want To Keep A Customer, Try Spelling His Name Right

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May 16, 2007

OK I apologise for yet another customer service rant, but sometimes it gets me when businesses can’t get their basics right.

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Dear high-class restaurant in The Pan Pacific Hotel Singapore,

I love your food. Your renditions of Aussie-Italian cuisine is rather breathtakingly exquisite, and always worth a repeat visit. Your wine selection is vast, and the service is attentive yet unobstrusive.

But really. If you’re trying to do your promotions through direct marketing methods like SMS-ing a customer (with our number gleaned from the business card we put in the fishbowl at the reception), please SPELL OUR NAME RIGHT.

My name is Daniel. D-A-N-I-E-L. Not Danial. There is no such name, and no, our Immigration Department and Birth Registry has long since cleaned up its act.

I’ve replied via SMS twice, and spoken to someone once, to get my name in the database corrected. So far, NOTHING HAS BEEN DONE.

So until you get my name right, please do not expect to see me for any of your wine-tasting events. I’m sure I’ll miss out of some great wines, but I do take pride in my own name.

Not the Best Regards,

D-A-N-I-E-L Goh

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EDIT: I’ve just got an direct mailer SMS from them and they’ve finally changed my name to Daniel. I’m glad to get my identity back.

Save Lives In Your Spare Time

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May 9, 2007

SATA

I had the opportunity to meet the CEO of Singapore Anti-Tuberculosis Association (SATA) recently. What I didn’t realize was that this simple conversation would change my life.

We chatted for a while before the conversation turned to how happiness is intricately linked to doing the things that really mattered to you. Not only did she want to help the poor in Singapore who need affordable medical services, it was also very obvious that she utterly enjoyed every minute of doing it.

She said one thing that stuck – “People who are happy in their work places make the best volunteers”. She looked me in the eye and said: “Pursue your dreams. Do the things you like. Then come back and be a volunteer – that way you can contribute best to society.” I was astounded.

Thank you, Ms. Dolly Goh, for these simple words of wisdom. If you’re reading this, I hope to repay you and SATA in some way or other soon.

So to all entrepreneurs out there, if you’re genuinely happy and desire to serve a greater cause, consider serving as a volunteer in SATA. Your time will be well-spent. No experience in doing acrobatics/dangerous stunts for fund-raising charity shows required.

(My affinity for SATA started when I was a young sickly child. My mom used to bring me there because during those times it was one of the very few places in Singapore one could get affordable medical care. Thanks SATA, I owe you my life.)

A Love for Books Actually

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May 1, 2007

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karen and kenny

Kenny and Karen have a common, and almost obsessive, passion for books. The couple’s first date was spent at the National Library, later followed by a book-buying spree. Today the proud owners of Books Actually, the couple still spends much of their spare time buying books for themselves and for the store.

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Of Cups and G-Strings

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April 10, 2007

Brandon Lee has an unusual occupation.

This 26-year old is the proud owner of Closet Lingerie, an online commerce site which deals with, ahem, ladies’ intimates. Yes, this young man sells bras and panties for a living.

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Review: Entrepreneur’s Blueprint – Strategies and Lessons for Success

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April 3, 2007

I usually approach locally-written books (especially business ones) with some skepticism. They are usually not very well thought-through and written, and most of them have layout and design that leave much to be desired.

I am very glad Entrepreneur’s Blueprint, which I happened to pick up over the weekend at the National Library, proved me quite wrong.

Continue

Ten Reasons Why Entrepreneurship Is Like Sex

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March 31, 2007

sex

This is the companion list to “Ten Reasons Why Entrepreneurship is Like Marriage”, for some lazy and light-hearted weekend reading.

Ten Reasons Why Entrepreneurship Is Like Sex

1. Protection is important. Poor planning can lead to potential problems.

2. You come away from it utterly exhausted, and (some of the time, at least) satisfied.

3. You need a smoke after.

4. You need to experiment a lot before finding the best way to keep everyone happy.

5. Bad experiences can leave a sour taste in your mouth. In some cases, in more ways than one.

6. The Singapore government tells you the right way to do it. In fact, it fines you if you do it wrong.

7. There are heaps of guide books out there, but nothing beats theory as much as practice.

8. Both are driven by passion. Occasionally, it is driven by money.

9. Once you’ve done it, you’re no longer a virgin.

10. You want to do it again and again. And again.

Vintage Entrepreneurship… In More Ways Than One

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March 25, 2007

Every Saturday afternoon, a flea market magically materializes around Planet Fitness’ Far East Square branch. Unlike the more glamorous weekend flea market at Clarke Quay or ad-hoc ones elsewhere, the one here features mainly merchants – many of them senior citizens – who trade in truly vintage wares.

When I was last there, I counted about one dozen stalls selling a wide array of retro goods such as vinyl records, stamps, jewellery, paintings and even old currency. I especially like an old gramophone I found.

As I browsed through their offerings, I couldn’t help but wonder how successful these – let’s call them vintage entrepreneurs – were at selling their wares. Although the things on offer were visually captivating, there scarcely were any passers-by and even fewer people who would be interested in buying such retro stuff.

Some of the questions that flashed through my mind:

Did they consider human traffic, or were they attracted by the free rental?

Do they have a regular supply of goods, or did they merely intend to sell what they had?

Were they concerned if their goods targeted a niche audience, or did they just want to hang out together?

Do they base their prices on the scarcity of their wares, or did they allow passers-by to haggle them down?

Were they concerned about profit, or were they happy with just a couple of transactions in one day?

Did their livelihoods depend on this, or was it to them just a cheap hobby?

Did they look at this as a business or did they just want to pass their time?

I’m not sure if I’d like the answers.

The Realistic Entrepreneur’s Guide to Raising Venture Capital

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March 19, 2007

I like Seth Godin’s “The Realistic Entrepreneur’s Guide to Raising Venture Capital”, a rather frank and accurate wake-up call.

No. 4 is precious – “Being a little better than the market leader is worthless”.

The New Cash Cow: Banking on SMEs

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March 14, 2007

Ten Reasons Why Entrepreneurship Is Like Marriage

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March 13, 2007

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wedding cake

1. Finding the right partner, with the same ideals and vision, is critical. Otherwise it can be disastrous.

2. You have to register with the government.

3. The government encourages it. Sometimes with grants too!

4. Your time is no longer your own. In fact, almost nothing is.

5. It sucks up all your money. And energy.

6. The risks are great, but the rewards are out of this world.

7. Failure is expensive. And not to mention painful.

8. If it works beyond 3 years, everybody wants to know how you did it.

9. If things go well, you can even have subsidiaries!

10. The subsidiaries demand as much time and money, if not more, than the holding company.

Innovation Is Nothing New

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March 12, 2007

It’s true – but I didn’t say it. Pitch Johnson and Reid Dennis did, here in this amazing video clip about the history of venture capitalism, called “Innovation Is Nothing New: 100-Odd Years of Venture Capitalism”. The two pioneers of venture capitalism (with a combined experience of more than 100 years) had shared their views at a Computer History Museum talk on 27 Apr 2005.

Beware: this video is 1 hour 39 minutes long and can get dreary at times. What do you expect from two old fogeys? ^^

Thanks to Jeffrey Paine for sharing the link with us.

The New Singaporean Entrepreneur

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March 11, 2007

1. You are young (40% of you are aged below 40).

2. Educated (42% of you hold at least a bachelor’s degree).

3. You prize individual freedom and control over your own career.

4. You started your company with less than $50,000 and less than six months of planning.

5. Your company has turned profitable within three years.

Congratulations. According to an Action Community for Entrepreneurship (ACE) Start-up Enterprise survey, you are the new Singapore entrepreneur and you generate employment for up to eight of your fellow Singaporeans.

You can find out more about the survey here.

Reinventing Barter: The New Old Currency

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March 8, 2007

Barter is a form of transaction in which goods or services are exchanged with other goods and services without using an intermediate medium of exchange (like money). Today, barter is picking up popularity amongst small businesses who need to keep their cash and use their products and services as credits instead.

Cash flow management makes or breaks any business. Since cash is almost always very limited for small businesses, proper cash flow control is even more critical. Poor cash flow can lead to bankruptcy. On the other hand, control your cash flow too tightly and it can limit business growth.

This is where online barter exchanges such as Ozone Barter and BarterXchange come in. These online platforms allow businesses to broker their goods and services for online credits, which can then be used to buy goods and services they would otherwise have to pay cash for.

Example

Your office has a couple of spare rooms. Instead of leaving them empty (you are paying a fixed cost in rental and not maximising on the space), you decide you can rent them out for a year to incubate small businesses. You put the offer up on Ozone Barter or BarterXchange. Someone takes up the offer to rent them. They pay you online dollars. You have online dollars to spend. Another company on these sites offer services you want to buy. Instead of paying cash, you pay with your online dollars and keep your cash in the bank.

Simple?

It’s no wonder small businesses find barter an increasingly attractive option – they get to clear unsold stock in return for usable services.

My company just bartered for public relations advice in return for some corporate rebranding services.

Barter is well and truly alive.

Unleashing Your Own Epidemic

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March 5, 2007

Marketing guru Seth Godin is a God to many in the marketing world. On the other hand, he’s also considered a Devil in many of its quarters as well, especially with his views on traditional advertising. In Unleashing the Ideavirus, he continues to make waves and ruffle feathers in the media and creative industries.

Seth Godin eschews traditional, plain vanilla big-budget advertising for relevant and targeted direct marketing when it comes to marketing a product or service. That much is clear in his book – he believes it is far more effective to turn ideas into an epidemic by helping customers to do the marketing for the business instead.

Whoa, wait a minute. How does one get customers to market your product on your behalf? Read on.

Here are the ideavirus tactics (adapted from his book) which I believe can help the small business (italicized comments are mine):

1. Make (your idea) virus-worthy.

If it is not worth talking about, it won’t get talked about.

Cheap $10 massage at a sleazy massage parlour? Not worth talking about. $3,888 OSIM iMEDIC Pro massage chair in the comforts of your own home? Much more interesting, and a conversational piece during Chinese New Year.

2. Identify the hive (people most easily infected by your message).

You won’t get the full benefit of the ideavirus until you dominate your hive.

Why spend big bucks on advertising to promote your organic product to the masses? Maybe yoga practitioners, health nuts and elements of the hippie subculture can help you spread the word instead?

3. Expose the idea.

Expose it to the right people, and do whatever you need to get those people deep into the experience of the idea as quickly as possible. Pay them if necessary, especially at the begininng. Never charge for exposure if you can help it.

Make it painless for them to adopt your product. It’s new and uncertain, so they are rightfully scared. “Thanks for coming to my health spa. Here’s a free medical consultation and trial treatment, no questions asked.”

4. Figure out what you want the sneezers (customer-marketers) to say.

You’ve got to decide what you want the sneezers to say to the population. If you don’t decide, either they’ll decide for you and say something less optimal, or they won’t bother to spend the time.

Create your message. Ya Kun Kaya Toast has the tagline “The toast that binds”. It reminds you of friendship, kinship, partnershipÂ and the kind of bonding that is shared over a good cup of coffee. And it works.

5. Give the sneezers the tools they need to spread the virus.

After you’ve got a potential sneezer, make it easy for him to spread the idea. Give him a way to send your idea to someone else with one click. Let me join your affiliate program with one click. Reward the people I spread the virus to, so I don’t feel guilty for spreading it.

Make it easy for them to spread your message. It’s easy to send a YouTube video to someone. It’s only a link, and far easier to download than a 5MB video clip.

Go read the book.

To find out more, download a copy of Seth Godin’s “Unleashing the Ideavirus” e-book. It is a sample of what great ideas he has in his book and a perfect example of practising what he preaches. If you think I’m breaching copyright, Seth would be the first to tell you he’d want you to have it. And for free too.

Find out more about “Unleashing the Ideavirus” here.

Fabrice Grinda’s Nine Criteria For Investing In Startups

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March 5, 2007

Private equity investor Jeffrey Paine recently sent me a list of criteria that serial New York entrepreneur Fabrice Grinda usesÂ when he assesses companies. It’s a good guide to follow when you set up a new venture.

Serial entrepreneur Fabrice Grinda knows all about creating new businesses. His current and previous companies – OLX, Allmydata, Zingy and Aucland, to name a few – have been successful to varying degrees. Fabrice himself has even been featured in TIME magazine for the success of Zingy, a mobile ringtone company.

Fabrice Grinda’s Nine Criteria for Investing in Businesses

1. At least a $1 billion addressable market

This criteria is inherently personal and depends on the entrepreneur’s ambition, but there are good reasons to target larger markets – It’s easier to obtain funding. Many Internet businesses have a certain amount of fixed costs but limited variable costs, therefore the larger the business, the higher the net margin. I find it more interesting to build larger companies. This does not mean that the market must be a $1 billion market at the launch of the company, but that it must have the potential.

2. A valid business model understood from the get go

There is only a 5% chance that a company created today will still be around in 5 years. I have not seen official statistics, but many VCs seem to believe that only 0.1% of the company started without a valid business model succeed. It’s so risky to create a company to begin with, I would rather have all the odds in my favor. For clarification purposes, by having a valid business model I mean understanding how you are going to generate money and having a good sense of the gross and net margins at the creation of the company.

3. Does not require more than $2 million in seed or $15 million in first round (venture capital) VC money

If it requires much more, the business might be too capital intensive which could lead to too much dilution and suggest that this is an idea that is easier for a large incumbent to fund rather than a new startup.

4. A business where you have a real shot at being one of the top players – at least in the region you are targeting

Avoid entering businesses where many players are well-funded or where the incumbents have a sustainable advantage. That is not to say not to enter businesses where there are incumbents – just make you have a hard-to-replicate edge on them – after all Skype did extremely well because it entered the telephony market with a radically lower cost structure than the traditional telcos and used it to its advantage.

5. A scalable idea

This is again a very personal criteria. Walmart and Starbucks are great businesses, but I would rather not be in a business where I need to open a new store to increase my sales as it leads to slower growth and greater capital requirements. Internet businesses are magical as they give you the ability to build and grow global companies in record times – just look at what Google, eBay, Skype and many others accomplished in less than 10 years – in some cases in less than 5 years!

6. A business with little or no risk of disintermediation and/or margin compression by suppliers and/or customers

You are in a much safer position if you are much larger than your customers and/or suppliers. Walmart exerts tremendous pressure on its suppliers which are much smaller than it is and depend on its sales. eBay can also continuously increase prices on its sellers – none of which is in a meaningful position to fight back on its own.

7. A business that is in a rapidly growing market

A rising tide raises all boats. Growing markets generate more interest from the press, consumers, customers and suppliers. Moreover, if you are gaining share in a rapidly growing market, this can create exponential growth.

8. An idea that I know how to execute on or can learn how to execute on

9. An idea that I like and want to do

One of the keys to happiness and success in life is to do things you love and are passionate about!

You can read Fabrice Grinda’s blog here.

Social Entrepreneurship in Singapore: Going Down the Toilet?

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March 2, 2007

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Social entrepreneur and chairman of the non-profit World Toilet Organisation, Mr. Jack Sim, is reportedly feeling so unappreciated by the lack of government support for his efforts that he is thinking of relocating to Australia.

Also the president of the Restroom Association of Singapore, the social activist recently shared with The Straits Times that his proposal to the Ministry of the Environment and Water Resources to host the first global forum on sanitation in Singapore was turned down. Mr. Sim is considering moving Down Under – oh, the irony! – with his family instead.

“Bureaucrats are not bad people, but they don’t think out of the box… They told me there is a risk in supporting new things,” he had said.

Rebuttal from the Ministry came swiftly in a forum reply to the same paper the next day, however, putting his situation in an even bleaker position. It is sad that in these days when entrepreneurship of any kind in Singapore is already lacklustre, the activist – recognised by the Schwab Foundation for Social Entrepreneurship – faces difficulty in pushing his project off the ground. All these while the Singapore Tourism Board spends precious resources trying to convince offshore non-profit organisations to hold their MICE activities here!

So what does this mean for social entrepreneurship in Singapore? It will be interesting to see how transport and logistics giant DHL‘s call for social entrepreneurs in its Young Entrepreneurs for Sustainability (YES) Awards will fare here in Singapore.

I highly doubt we’ll see many entries from Singapore. But maybe there’d be an additional one from Down Under.

From Spotters Spring Forth Wise Ideas

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February 25, 2007

If you’re looking for cool ideas to start a small business, you can always check out Springwise. The site deploys more than 8,000 spotters around the world who scan for smart new business ideas, bringing instant relief for troubled entrepreneurial minds looking for the next big thing.

The last we checked the site, we saw ideas ranging from mobile key storage and delivery service catering to those who constantly lose their keys, to wholesome halal baby food for encouraging Muslim mothers to switch from liquid to solid foods early for their babies.

Coolzors!

How Entrepreneurs Can Find Money

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February 24, 2007

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Jeffrey Paine

So you – the enterprising entrepreneur – think raising capital for your business is tough? Not necessarily, if you know how to go about it. We ask private equity investor Jeffrey Paine how.

Jeffrey Paine has been in private equity and business investment for 7 years, and has invested in companies in India, China and the United States. He gives us some tips on how and where entrepreneurs can seek funding.

Where are the main sources of funding for small start-up businesses?

Entrepreneurs should look for investment in this order –

First, an entrepreneur’s own money. Investors will not be confident in entrepreneurs who don’t pump money into their own businesses.

Next, try your friends and family. These are the people who will usually offer you loans with reasonable or no interest. Just be careful – most people think that raising money is the hardest thing. It is actually returning the money – especially when it comes to friends and family – because bridges can be burnt very easily.

Then you move on to business angels you don’t know very well. Try to get an introduction from someone who knows the angel. Do your research. You need to know who his best friends are, and those who do business with him and whom he trusts. Make friends with them. Always have the business angel like you as a person first, and then do your pitch only if they want to talk business. One thing to remember – when someone introduces someone else, their reputation is at stake.

Finally, you can approach institutional investors such as venture capitalists. However, in Asia there are very few institutional investors who focus on early stage deals – they are usually risk-averse.

How do I know if an investor would be interested in investing in my business?

Businesses belong to two categories – highly-scalable businesses, or normal sustainable businesses. Depending on investors, they may look at either kind of businesses.

It also depends on the profile of the investors, who look for different kinds of qualities in businesses.

Strategic investors are those for whom returns are not the main focus and invest for different reasons, such as business angels. Friends and family who invest in your business also fall into this category.

On the other hand, risk investors are those who look at market size, strength of management team, and how unique the product or service is. Most importantly, how highly probable they can exit and get their money back. A business’ market size will determine its scalability of the business and hence its returns.

All business plans should be structured for risk investors. It’s the hardest to do.

How do I approach investors?

First you always have to have a solid business plan. How do you know whether it is solid or not? You may not know, so you have to find someone with experience to read it. Choose the right people to get advice from, such as other businessmen. If your business plan is professionally done, no one can blame you if things go south. You are ultimately accountable to anybody who invests with you.

When approaching investors, never be too openly needy. Don’t ever say you’re raising money. Think about it – If you’re that good, you probably already have funding. There’s currently too much money and too few good deals in Asia, so you can afford to play hard-to-get.

Interestingly, public relations help.

What kinds of businesses receive the most funding?

Not surprisingly, consumer technology – mobile and Internet – receive the most money from venture capitalists. Depending on their background, business angels can invest in bars, restaurants etc. Silicon Valley venture firms like to contribute and invest back into technology companies.

Money No Enough? Wrong!

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February 22, 2007

Surprise, surprise. For local entrepreneurs who complain that it is difficult to get funding for their businesses, it would shock them to know that the Milken Institute has placed Singapore second of 122 countries for ease of access to capital in their latest Capital Access Index. Singapore moves up from last year’s 3rd place, and only places behind Hong Kong.

So this goes back to our previous argument – it’s a case of too few good ideas, and even fewer Google– or YouTube-great ones. The money’s there, folks. You just need to use your “blain”, use your “blain”.

Pressing the Right Buttonz?

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February 21, 2007

eNets and ChainFusion has just launched BuyButtonz, a new online business payment platform that caters specially for online businesses. Buybuttonz allows customers to make direct credit card and Internet banking payments for transactions which are secured by mobile phone authentication to protect online retailers from fraud payments.

If you’re selling stuff online, consider this as an alternative or a complement to Paypal. Not only does BuyButtonz works in blogs and on websites, it works in emails as well and so can help make your electronic direct marketing (eDM) a breeze.

As you don’t have to be above 18 years of age or have a registered company to apply, it is definitely suited for budding young entrepreneurs (like those hawking wares on shop blogs). But at $68 a month per button, it ain’t exactly cheap.

Find out more about BuyButtonz on their website here.

The Entrepreneurial Adventurer

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February 19, 2007

Serial entrepreneur Tony Goh may have more misses than hits when it comes to business, but he’s never given up nor regretted following his entrepreneurial instincts.

Tony Goh is the owner of Altrex Singapore, a small retail shop tucked in an obscure corner of Shaw Towers on Beach Road selling outdoor and sporting equipment such as backpacks, camping gear and skateboards. The serial entrepreneur officially opened his latest venture on November 2006, targeting young skaters and adventurous travellers who go off the beaten path.

“I decided on this business because I like travelling, so it’s relevant to my passion,” Tony shares. “I like to see new things, explore and get to know more people.” So far the 34-year old has travelled to Japan, Australia, Thailand, Malaysia, New York and Kansas.

To set himself apart from his competitors, Altrex carries products from brands such as Deuter, Victorinox and Camelbak which are not commonly found elsewhere. “This is a very competitive industry with places like the Army Market (also on Beach Road), so I need to be a bit different,” Tony explains. “Departmental stores are the worst, because they periodically have sales which spell bad business for the rest of us.”

From Business to Business

Altrex is not Tony’s first business. In fact, his first venture into entrepreneurship was in 1994 when he entered into a partnership which dealt with the transportation, delivery and installation of furniture. He was a delivery assistant who helped set up furniture in showrooms, and he spotted an opportunity for this business. However, his business soon shut down as the furniture industry was later hit by an economic crisis.

Tony decided to further his studies as he realised he wouldn’t go far as a delivery boy all his life. He studied design in a private art school for a year and later obtained a Bachelor in Advertising and Diploma in Marketing from Australia’s RMIT University.

Armed with his new qualifications, Tony freelanced for various advertising firms from 1999. He then started his own design firm with another partner, but the business also ended after slightly more than a year due to poor business.

In 2000 he started Yellow Box, a toy shop in Beach Road market specialising in miniature toys, with three partners. “Why the name Yellow Box? Well toys come in boxes, and yellow was our favourite colour,” he laughs. He is still a sleeping partner in the business today.

In 2003, Tony also started a shop in Far East Plaza selling clothing and apparel, specialising in ethnic wear. It didn’t work out either, as the rise in demand of ethnic wear saw too many competitors enter the market. “Certain competitors were able to bring in exactly the same products, but yet sell them cheaper,” he sighs. Then Sars hit Singapore, and he decided to close shop in 2004.

From 2004 he entered into a premium food business marketing products such as kaya, jam, peanut butter. Like some of his previous ventures, this was also short-lived. “It is not easy to enter a crowded market. Supermarket chains usually had their own products and preferred suppliers,” Tony muses. He had set himself a goal but he knew he wouldn’t be able to meet that goal in this business so it had to end.

Tony then went on to help in a family business – a children’s art school – from 2005. But he felt stifled, and the entrepreneurial bug continued to chafe at him. He felt that he needed to do something of his own and so Altrex was born. “I venture into any business I think that can make money,” Tony reflects.

No Regrets

He has never regretted giving into his entrepreneurial instincts. “For sure I’ve had times that I’ve made some wrong decisions as far as choosing partners or timing my business opportunities,” he shares. “But I’ve never regretted starting any of my businesses or thought of getting a full-time job. I’ve never regretted even when I was in debt.”

What would Tony say to someone who wanted to start a new business? He says it is important to know the right people. “There are actually a lot of business opportunities out there, but most people don’t know where to find them,” he says. “I knew some people from my time at Yellow Box in the Army market, and hence I have the contacts to the right suppliers.”

“It is all about timing, location and opportunity. You must know your market well. Assess market demand and calculate your profit margin,” he declares. “Retail and merchandise is all about products – your product must be good.”

“And never ever regret.”

You can contact Tony Goh at admin[at]altrex[dot]com[dot]sg.

Flowers for You, Sir?

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February 13, 2007

Every year, around this time, an entire cohort of entrepreneurs are born overnight.

These enterprising folks capitalise on the law of supply and demand, taking advantage of seasonal needs by targeting a certain lucrative market segment. You guessed it – these people were selling flowers and other cutesy gifts around Valentine’s Day.

You can find them literally everywhere – around the entrances to MRT stations, along Orchard Road etc. I encountered some of the more enterprising ones during my jog along East Coast Park last night. The dimly-lit park was predictably flooded with romantic couples on the eve of Valentine’s Day, and these three girls flitted from one occupied park bench to another selling their Valentine’s Day wares. Suffice to say they were quite successful.

Many businessmen should take an example from these three teenagers. They got their marketing strategy down to a pat. Identify your target customer. Find out where your customer is. Make them an offer they can’t refuse – would you dare say no in front of your significant other?

That’s successful selling. Now if only they can make it into a long-term, sustainable business.

Book: Be An Entrepreneur!

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February 5, 2007

Dr. Michael Leong gave up a lucrative career as a medical professional and a corporate suit to pursue his dreams as an entrepreneur. The founder and chairman of Shareinvestor Holdings shares his entrepreneurial journey in his book, Be An Entrepreneur.

Despite the grinning self-portrait on the cover, Be An Entrepreneur is no “I have made it” or “pat myself on my back”-type biography. Although Dr. Leong does share his experiences in starting up his own business, he does it in a “If I can do it, so can you” manner.

What I like about the book:

1. It is very Singaporean – filled with local flavour and easily identifiable. He even tells of how our education system makes graduates who are primed to work for others, and a society that frowns on entrepreneurship.

2. The book is very easy to read, and the language is simple. Thanks, Dr. Leong, for avoiding Singlish.

3. Dr. Leong does highlight some of the more challenging aspects of business. Many other motivational-type books on entrepreneurship gloss over some of the tough issues faced by startups. One of the issues he pointed out was that entrepreneurs should be prepared to face rejection – from former colleagues, business partners and even friends.

What I don’t like about the book:

1. It’s not in-depth enough, maybe due to a desire to make the book as readable as possible. I would have loved to read more on his chapter “Seeing Opportunities in Crisis”, of which he only devoted three pages to.

2. Dr. Leong could have highlighted more on his personal entrepreneurial journey. It would make perfect sense for him to put personal case studies into each of the relevant chapters in his book, highlighting the decisions he made during the course of his business.

But thanks for the effort, Dr. Leong. Not many would have taken the step that you did in starting your business, and far less who would have written on book about it.

The book is difficult to find in bookstores, but is readily available at the National Library.

Liquid Armour: A Solid Idea

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January 21, 2007

What does a bread-maker, chemicals and bulletproof-Kevlar have in common? Everything, it seems, at least to Hydroflex inventor-entrepreneur Norman Lim. His invention – a liquid which he concocted in a breadmaker and can be used to treat ballistic fabrics such as Kevlar to make them stronger – is set to make him millions.

According to Sunday Times article “From a chemical spill to a million-dollar dream” dated 21 January 2007, Norman Lim was once a car salesman who gave up his job to pursue his dream. The entrepreneur gave up his job, sold his car and, at one point, had only $4 in the bank, the article said.

“When you don’t have money, people don’t know you anymore. My phone was very quiet,” he was quoted, in an eerie resemblance to an issue which we raised in a recent post “Dare I Take the Plunge?” about fairweather friends.

Mr. Lim shared that his invention was actually a product of an accident. Around October 2005, the self-taught chemist spilt a chemical into a bread-maker he was using to concoct the liquid armour brew, and got “a favourable reaction”.

Previously scoffed at by fund managers and defence agencies for his lack of paper qualifications who rejected his ideas, Mr. Lim’s invention has now attracted the interest of two European defence companies. A local distributor of body armour commented that his product could be worth more than $10 million a year in sales.

Mr. Lim, we salute you for your courage to pursue your dreams. We reckon you’d find that the friends whom have disappeared during your entrepreneurial journey to suddenly contact you again, but we suspect you already know how to deal with such fairweather friends.

Seth Godin’s The Bootstrapper’s Bible

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December 26, 2006

It has been about five years since marketing guru Seth Godin first published The Bootstrapper’s Bible: Volume 1, but the advice enshrined within those pages is still relevant to starting entrepreneurs of today.

Seth is a marketing genius, at least according to his industry. BusinessWeek called him “the Ultimate Entrepreneur for the Information Age”, which must count for something. His books are widely read – his latest book Purple Cow was a New York Times and Wall Street Journal bestseller.

So what is it about Godin that have enthralled his fans? In the Bootstrapper’s Bible, Godin seeks to empower the ultimate underdog – the bootstrapper, his term for an entrepreneur who is determined to build a business that pays for itself every day. He gives examples of bootstrappers who have, against all odds, succeeded against bigger and better opposition. Godin also gives advice on what bootstrappers should look out for in their own businesses.

You can download the e-booklet The Bootstrapper’s Bible from Amazon for a pittance (which goes to charity anyway), which is based on his book of the same name.

Alternatively, you can read more about Godin at his blog here.

From Acorns… How to Build Your Brilliant Business from Scratch

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