Money No Enough? Wrong!

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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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December 19, 2006

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“Let me hold your Balls for you” – if you think that sounds funny, it’s actually the name of author Caspian Woods’ first start-up business, which was an event company. This entrepreneur’s how-to guide, From Acorns…: …How To Build Your Brilliant Business From Scratchis an utterly enjoyable read, livened up by the author’s quick wit and surprising business insights.

Author Caspian Woods is one funny writer. It is not often that you can finish a business book in a day, but I did. Woods had somehow managed to turn the normally boring subject of starting your own business into an extremely light read. It’s not to say that the book is all fluff – on the contrary, even hardened entrepreneurs may pick up a tip or two from Woods.

He covers the typical issues faced by a new-found entrepreneur, from putting together a business plan and soliciting for funding, to identifying the common causes of failure and how to avoid them. Packed with practical wisdom, Acorns doesn’t preach like most books of its ilk. Instead, Woods prefers to highlight issues which may have escaped most new business owners.

The most important lesson and key takeaway from this book? Woods argues that most entrepreneurs are terrible when it comes to figures. His answer? He champions the need to employ a dragon – a good book-keeper to safeguard your cash flow and breathe heavily down your spine before you get into financial trouble.

We say that’s sound advice, good for any occasion.

Immanuel Media – Going Places

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November 13, 2006

Most people believe that the life of an entrepreneur is one of sacrifice. Owner of Immanuel Media, David Ng, somehow manages to balance entrepreneurial ambitions with his family life.

He shares with us his experiences.

Go Digital

Publisher David Ng loves his job. Running his own business means being able to manage his own time and do the things that mean the most to him. The father of one makes sure he gets to spend a lot of quality time with his two-year old son Brendan, even as he sets his sights on putting a publishing empire together. “I get to enjoy every moment of my son’s growing up. I just need to rearrange my working hours,” said the 34-year old entrepreneur.

Immanuel Media’s main business is publishing. It publishes on niche subjects that are of special interest to David – consumer gadgets, photography and babies. Other than consumer electronics magazine Go Digital, Immanuel Media will be publishing a baby book for KK Hospital as well as marketing materials for various companies.

Born in Hong Kong, David moved to Glasgow when he was only four and lived there for 21 years. It was in Scotland where he met Jim McColl of Clyde Blowers Ltd, with whom he worked for a few years. “I read the book Rich Dad, Poor Dad: What the Rich Teach Their Kids About Money–That the Poor and Middle Class Do Not! by Robert Kiyosaki. In it he raised a couple of good points, one of which was to find you a hero figure. Jim was the man I emulated – he is a man who has made it.”

“It is also important to have a mentor to guide you along,” David pointed out. He has a mentor who has considerable experience in the media industry, with whom he consults regularly.

David came to Singapore in 1997. He was working as an engineer, and only 31 he was already facing a mid-life career crisis. He had reached a point in his career where he needed a new challenge. “It was very manual work,” he remembered. “I was sitting at Starbucks in City Hall one day where I picked up a free copy of a consumer electronics magazine. I thought to myself ‘hey, I could do this’. That was how Go Digital started.”

He proceeded to put together a business plan, working out the costs, key success and failure factors, and setting up his network. He took out $50,000 of his own savings to start his venture – and Immanuel Media was born. That was in 2003. His wife was initially doubtful and fearful, but finally became supportive of his decision to become an entrepreneur. “She was very brave to have dealt with my decision.”

“It cost $20,000 just to print the first issue of Go Digital,” he cringed. “I’d be dead if I didn’t have any money coming in by the second issue.” His business bled for two months, until one day he got a call from major electronics retailer Best Denki. They wanted an alliance with Go Digital. “It was a gift from God,” David insisted. With their financial backing, David recovered all his investment within two years. “I would have taken three times longer otherwise. Or I’d be dead!”

To date he has done far better than expected. His turnover this year is on track to hit half a million this year. He intends to increase that by 50 percent next year, and has aggressive plans to grow around the region. And his wife is now reaping the rewards. ” I’m her employee. I work for her,” he joked.

David intends to continue as a sole proprietor. “I’ve seen many businesses set up by good friends turn sour, and relationships fallen apart because of money. Owning your own business fully allows you to make your own decisions,” he reasoned.

The publishing entrepreneur has also taken another lesson from ‘Rich Dad, Poor Dad’ to heart – contributing back to society. “One page in every issue of my magazine Go Digital is dedicated to highlighting a particular charity”, he said, “It’s my way of doing my bit for society.”

Your Proper Business Plan

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November 9, 2006

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Putting together a proper business plan is the most important for all new business owners, says Jeffrey Paine. And he should know – the private equity investor and venture capitalist has been in the business for seven years, and has read more business plans than many lecturers have seen postgraduate theses.

He shares his view on what a business plan should be like.

Jeffrey Paine

“A business plan clearly articulates the business that you’re in, written for yourself and the other members of the founding team,” says Jeffrey, who is also Vice President and Co-Head for the Singapore Chapter of the Young Venture Capital Society. “It can also be used to pitch to potential investors.”

He believes that there are a few key elements that must go into a business plan. The first is your business or product concept. “The best concepts are unique, and in venture capitalist terms, ‘disruptive’ – this means that it is something that never been seen before,” describes Jeffrey.

“Secondly you need to establish the size of the market, which translates the scale of returns from your venture.” Jeffrey says that in Asia, the most common mistakes are overestimating the market size and underestimating the competition. “You need to do your research.”

“Financials should be simple. In early stage funding, complex financials are not that important – potential investors are likely to ask for them at a later stage. If they don’t, they are not likely to be interested in your business.” Include P&L projections, reasonable assumptions, and also a best-case and worst-case scenario, he adds.

Finally, you need understand and highlight the strengths of your team. “A good size is two or three people. Most important are the folks who research and develop the product.”

What does he consider to be a good business plan? Strange as it seems, he likes business plans presented in PowerPoint format. “Put your whole business plan into 30 to 40 slides. Investors don’t have the time to read everything. And an entrepreneur needs to do his slides anyway, so don’t waste time doing both,” he advises. “From these slides, draw out 10 to 15 slides for use in a sales pitch.”

“Keep it short and simple – many people go round and round. Who’s going to read more than 80 pages?”

Final advice? “Entrepreneurs have to ask themselves if their offering is a ‘must-have’ or a ‘good-to-have’. If you have a cure for cancer, that is a ‘must-have’. If you have a way to correct myopia, well, there’re a lot of alternatives. If it’s a good-to have, rethink the business. You may be better off not doing it.”

You can contact Jeffrey Paine at jeffrey[dot]paine[at]gmail.com.

Rapture Gaming – Not Just A Game

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November 4, 2006

Herman Ng has been passionate about gaming since he was young. Not many people are fortunate enough to turn a hobby into a business, but Herman Ng did just that.

He is still a hardcore gamer, but today also runs one of the most well-known gaming events company in Singapore.

Herman Ng, Rapture Gaming

A Passion for Gaming

Herman loves gaming. Even when he was working for one of Singapore’s telecommunications firms, the avid Warcraft III fan had started www.warcraftsingapore.com, a community fan site for one of Blizzard Entertainment’s more popular games. Herman’s site exploded in popularity, and he soon found himself engaged in organising competitions for visitors to his site.

As he completed his first year in his corporate job as system analyst – a natural progression from what he had studied in university – Herman found he lacked the burning desire for his job the way he did for his gaming hobby. “I had no motivation for my job. It wasn’t bad, just that I couldn’t find that extra pump to put into my work. Could I see myself still doing this in 3 year’s time? The answer was ‘no’. I wanted to wake up every day looking forward to my work, and this wasn’t it,” Herman confided.

So when the boss of media company Playworks approached him to help run a gaming project, it was one of the toughest decisions he had to make in his life. Should he quit a secure and financially comfortable job to follow his heart? “I had few family commitments, so it was really the best time to change my career,” Herman decided.

He quit his system analyst job to pursue his gaming dreams. As expected his parents and girlfriend were skeptical about his decision to quit a decent job to make such a move, yet they recognised how motivated he was.

Employer or Employee?

Herman’s stint in Playworks didn’t last long however.

While he was the project manager responsible for the entire project, he felt that he had very little autonomy. Herman also felt totally burnt out after the project’s completion, and decided to leave only after three months. “I was only an employee,” he shrugged, “and it didn”t meet my long-term objectives.” Herman didn’t regret the experience though – he was exposed to an environment totally different from his previous job, experiencing challenges facing all small start-ups.

Financially it was also taking a toll on him. He had taken a massive 20% pay cut when he left his previous job, and things weren’t looking very bright.

Herman met Jonathan Cheah during an event he organised for the fans of his site. Jonathan ran the cyber cafe Asteroids Cyber where Herman had held an event, and the two avid gamers soon hit it off. They found out they shared a similar vision for gaming, and both saw an opportunity in gaming which was taking off in a big way in the United States, Japan and Korea.

Herman realised that for a successful business, you had to find the right time, the right idea, and the right people. He knew he had found the right person to start a business with. Jonathan loved gaming as much as he did. Jonathan also came from a business family, and knew how to run a business.

It was then that they decided to start a business that focused on gaming, and Rapture Gaming was born.

Loads of Passion, But How to Make Money?

“Most people start a business to either make money, or to do something on their own,” Herman shared, “and the funny thing was we didn’t know how to make money from gaming at that point in time!” But they got the company started anyway. “This way, when you get an idea to make money you can immediately roll with it”, he said.

They decided to first run competitions for cyber cafes in Singapore. The idea was well-received, and the fledgling company started business. Herman still remembered that time fondly. “When we secured our first client, it gave us a tremendous boost. You know, this may actually work!”

There was only the two of them at the start. But they did know people who had the right skill sets whom they could trust and rely on. Herman had a piece of advice. “Always maintain your relationships. In this world, you never know when you may need help in the future,” he advised.

Rapture Gaming’s Big Opportunity

Their biggest break was to come. Both Jonathan and Herman used to joke about holding a gaming event as big as the World Cyber Games (WCG). On a whim they contacted International Cyber Marketing (ICM), the organisers for WCG, by email. They were surprised when ICM replied, and asked them to submit a proposal on holding the Singaporean leg of WCG in 2005.

They went to work on it immediately. “I remember burning my Christmas that year,” Herman mused. Korea-based ICM flew down to Singapore to listen to their ideas, and was surprised to find that the team very young.

A month later ICM contacted them, and told them they were selected. They liked their passion and they had a strong vision for the gaming future in Singapore, they said. The Rapture team was ecstatic.

The breakthrough opened the doors for Rapture. The local WCG Finals 2005 became a tremendous success, even bringing them media attention. They now had an opening to speak to potential sponsors, partners and industry players who may otherwise have ignored the fledgling company.

Planning for the Future

After WCG, they realised they still needed a business plan. “Compared to other companies, we got it backward! We had been in business for eight to ten months, but we still didn’t have a business plan,” Herman laughed. Today, Rapture Gaming positions itself as a marketing and events management company specialising in gaming. “Gaming is just a platform that we work with. It’s a platform for our clients to use as a marketing tool.”

They are also looking at rolling out new products and services to support their revenue model.

Any plans in the pipeline?

“We’re looking at creating the Rapture Gaming Academy. It will be a platform to communicate and educate the public that gaming as a new mainstream form of interactive media and entertainment,” he reasoned. “The academy will run courses addressed at different target audiences – parents, youths, educators, and marketers. We may even run team-building events for corporations built around gaming.”

“We acknowledge that gaming has negative influences, but we need to work together to address these issues rationally.”

Challenges and Issues

It had been difficult finding talent – there were simply none in Singapore who were experienced enough in running huge gaming events.

“Gaming is a very new industry – and you need the right people to transform vision and ideas into reality,” Herman reflected. â€œWe are considered an experienced gaming company, but there’s little talent out there who are very familiar with gaming. The people we brought in had to be hand-held.”

“We’re still considered a start-up. There are endless opportunities out there, but since we’re small there will be some that slip through the cracks. But we don’t want to expand too fast, because the industry is still new and not yet stable.”

Despite these challenges, Rapture Gaming prospered. By the end of 2005, their turnover was close to half a million dollars, and are on track to hit one million in turnover by the end of this year.

Advice for Business

One of the first things Rapture Gaming decided when they finally had a working business model was to pay themselves. When they first started, Herman was the only person who drew a tiny allowance and only if there was money coming in. It was only until they had clients who would invest in them for the long run did they begin to employ people. Today, Rapture Gaming now has a full-time strength of six including Herman, supported by some 20 part-timers.

But then it became a totally different ball game. “Now not only do I have to worry about the financial health of the company, I also have to worry about whether my employees were doing their jobs and whether they were happy,” he said with a grimace.

Herman had a piece of advice for business owners. “Sometimes in order to grow your business, you have to learn to let it go,” he said. “It hit me hard when I asked myself what would happen if I fell ill or if I am not around. Will my business just drop dead and die?” At one point, he decided that he will build a business to survive and run on its own. He wanted time to do his own things and to think of new business development, and not bogged down by operations. So he restructured the company, making sure everybody had the power to make decisions, so that company can still function without him. “You need other people to drive your business, to think of ideas, to drive the company. Otherwise your company cannot go far.”

Does he consider himself a success? “Definitely. I’ve never once regretted setting up a company. I’ve learnt all aspects of business. Financially, I didn’t have to beg and steal and I have enough money to survive and save some as well. Things have definitely worked out better than we’ve expected them to be.”

Find out more about Rapture Gaming at www.rapturegaming.com.

A Note from the Editor

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October 25, 2006