BY FRED VICTOR.
Aspired to be the next successful young entrepreneur? Are
you prepared for the entrepreneur life you want to? In today’s intensely
competitive business situation, starting a business can be nerve-racking and
wildly-fulfilling, in my opinion.
Having been downs and ups myself for nearly two decades, venturing
into business could be quite complicated and madly-challenging in countless ways
you had not imagined. Some predictably common problems in regards to financial,
pricing, branding, marketing, R&D, people etc. are needless to say. So,
recognizing the potential challenges you may encounter in your business venture
can help avoiding the possible drawbacks.
Here I shared six precarious journeys I have personally
encountered and observed during my decade-long rollercoaster-like
entrepreneurial expedition and regional small-and-medium enterprises (SME) business
consulting experience for you to be aware of.
Journey #1: Company
Level: Managing Money
Many startups and SMEs fail due to insufficiency of capital required,
worse still the weakening cash flow due to overspending. Ask yourself: “Are you
spending on something preventable such as leasing fancy office, buying expensive
furniture and computers, over-staffing, excess inventory etc.?” If you are doing
this, it is a signal that you are not on top of your game.
Journey #2: Company
Level: Pricing
A common problem for startups and SMEs in Malaysia and other
Asian regions is to reduce selling price in order to attract purchase without rightly
understanding their margins and other cost impact ensuing from variable and
opportunity costs. I observed, a good pricing approach takes into account of input
costs, market segments, trade margins, profit margins, market conditions and
exchange rates. If you are not doing this, for instance, you are likely to selling
low-end products in a high-end market.
Journey #3: Company
Level: Marketing and Advertising
Another common problem for startups and SMEs is to rush into
media advertisements without knowing precisely the customer demographic profile,
geographic segmentation and other marketing related data. Ask yourself: “Have
you selected the right media channel to reach the right target customers at the
right time?” The cost of marketing and advertising can be expensive, for
instance, if you are not choosing the right path, you may waste money on print
ads that may contain incorrect message and be placed in a publication that does
not reach your target customers.
Journey #4: Company
Level: Managing People
There is an old adage goes: “You are only as
good as the people around you.” This is certain magnifying particularly for
startup companies due to limited resources and fierce competition. Ask
yourself: “As a CEO, are you always the best person to make good decision?”
This is something that I have learned personally – as an entrepreneur in my own
startups, as a business consultant for many startups/SMEs, and as a manager for
numerous large corporations; it is well worth the effort to have fewer smarter
people and partners around you. Great talent is a crucial component in the
success of your entrepreneurial journey.
Journey #5: Personal
Level: Managing Work & Family
Generally speaking, achieving work-life balance is a pretty
reasonable advice for most professionals, however, such advice does not apply
to entrepreneurs. I personally believe that entrepreneurs are way different. As
entrepreneurs, we are all in all-the-time working, no matter if it is day or
night, Monday or Sunday. I have personally encountered this – skipping meals,
sports, hobbies and social gatherings, in order prevent anything that possibly
diverts my attention and passion into reality. Do not get me wrong,
entrepreneurs should not give up important facets of their lives such as family.
Journey #6: Personal Level: Being Alone
Journey #6: Personal Level: Being Alone
Ask yourself: “Do you feel alone as an
entrepreneur?” If you are a startup entrepreneur, you can often feel alone as you
frequently find yourself just working with other people, be it your clients, associates,
business partners, other business people. What is more, you can often find
nuisance from people around you like shareholders, investors, parents and even
your spouse – they can affect your work, momentums and plans. So, surround
yourself with positive people and mentors. Look, studies revealed that mentors
are secret weapons to many successful startups.
**About GE Consult
GE Consult is a Malaysian-based marketing consulting
firm headquartered in Kuala Lumpur. Since inception in 2003, the company has
been pioneering professional business plan and company profile services in
Malaysia, and has assisted many local and overseas SMEs, large corporations and
government agencies to grow business. For more info, please contact +603 4031 1683 or +6017 330 8077 and/or email info@geconsult.org today.
