Hi Guys,
I have been out of action for quite a while now. I have finally left a company which I set up 10 years ago. Now, it is in good hands of a new management team. Ever since, I had not looked back and have been looking for a new chapter of my life. Enriched with many years of business and investment experience, I am now working towards a new direction towards investment.
I have burnt tremendous amount of energy and time into my company over the last 10 years. The blood and sweat I have contributed is like 20 or 30 years equivalence of any other job. It is by no mean feat to build a company from scratch to a successful company. Understandably, I went through a period of emptiness and directionless when I left. I explored many avenues of new businesses. At one point, I was even conned of my money for dabbling into F&B business. I went through many bad patches over the period that I thought dark clouds were following me wherever I go. I even changed some Feng Shui in my house to hopefully chase away the bad spell that was daunting on me.
I recalled that some of the close people around me fell into depression when they lost their jobs during recessions. I told myself that my mind was still clear and will stay sane and keep myself occupied with activities. I started to take up investment and self-improvement courses to motivate myself.
After more than half a year of a stagnated life, I have finally found back my own self and is currently pushing myself towards a new direction.
I realized the whole problem was all about myself. I had been a technical and management person in my job. It's like a occupational hazzard where you keep doing the same thing for many years till it becomes a habit. During my job, I had to crack my brain on technical issues everyday and organise my team and assign jobs for them. When all these were gone, I became lost. My mum, my wife nor my kids didn't understand me when I told them about technical things. They also didn't respond like my guys did when I tried assigning jobs to them. The world was staring emptily back at me. What was I supposed to do?
After much pondering, I started to shift my mentality. Instead of feeling nostalgic of what I used to do daily, I should appreciate on what business knowledge I have gained over the years. The best MBA course in the world couldn't have equipped me with such a deep business knowledge I have today. Since I have this invaluable asset in my brain, why not I capitalize on it?
Today, I declare that I am an Entrepreneur turned Investor. My main interest in investing is in equities and property. Thanks to some gurus in the trade for sharing with me, I am now more ready to go into this direction.
Every person in his entire life goes through ups and downs. It is up to the individual to manage his emotions and thinking. Don't blame in on luck. Everyone is in control of his own destiny.
Wednesday, December 22, 2010
Thursday, November 11, 2010
Singapore Entrepreneur - Blue Ocean Strategy
I particularly like the definition of this strategy which is described by W.Chan Kim and Renee Mauborgne, Professors in strategy and international management at the INSEAD business school. http://www.blueoceanstrategy.com
Continuous competition in a market will lead to price war and oversupply of commoditized products. Brand loyalty will start to decline and profits start shrinking, ending in a bloodbath which is termed as Red Ocean.
The Blue Ocean is a market space which is untested and uncontested. Players trapped in the Red Ocean should seek a path to exit towards the Blue Ocean.
There are four principles in the Blue Ocean strategy:
1. Reconstruct market boundaries
This is to look out for spaces where current competition does not see. You may still be in the same trade, but if you manage to create a new need for people, You will see demand naturally increase. Take the example of the Japanese hairdresser franchise QB House. In the haircut industry, there are different level target markets. Budget conscious men would go for an economical haircut at the barber. More image conscious individuals would go for average class saloon. Other individuals would not even blink an eye on the high price they pay at an upclass hair saloon. QB House ingeniously created a haircut service which fuses between barber and hair saloon. It created a concept with the budget conscious individuals in mind, to provide a hair saloon quality hairstyle at a barbershop price. It revolutionize the idea of haircut and create a new need, thus found itself in the midst of the Blue Ocean where there is no existing similar provider. Although over time, it may see more copycats coming into the sector, it is important to have the first mover advantage. When it sees its Blue Ocean slowly becoming red over time, it must then seek again for the next Blue Ocean. This is what we term as constant Innovation.
2. Focus on the big picture, not the numbers:
The lifeline of a business is always its bottom line revenue and profits. However, business owners must not be led by the nose in its budget. They have to look beyond the current scenario and paint a bigger picture for the business. This usually involves time and more investments into uncharted areas and most people easily shrug off such ideas.
3. Reach beyond existing demand:
Tata Group launched the world's cheapest car, Nano, on 26 Feb 2009, just one year after acquiring two luxurious automobile brands, Jaguar and Land Rover from Ford Motors at a price tag of US$2.3 Billion. The acquisition allows Tata an immediate access to the premium market of the automobile industry. However, it was not sitting still. It had been eyeing on the untapped middle class families in India, typically seen riding precariously on two wheelers, with children. With more than 100 million of such families in India alone, pricing the Nano at a mere US$2200, it is a sure hit in this sector.
Another great revolutionary product is the Wii TV console game player, launched by Nintendo. For many years, Nintendo has been in a distant far in the lucrative game console market, from Sony's PlayStation and Microsoft's XBox. Nintendo tweaked the idea on gaming by simplifying its console that could entice both young and old in the family to play.
4. Get the strategic sequence right:
In all aspects when seeking for the Blue Ocean, you must be pragmatic. You may be just building castles in the air if certain principles are not adhered to.
- Buyer utility: Is there an exceptional buyer utility in your business idea?
- Price: Is your price practical in the market? You have to ask yourself why your customer would want to pay you that amount you have defined for your product. Existing competitors and substitutes must be also be compared with.
- Cost: Is your cost of production able to meet the expected profit margin?
- Adoption: Why would people want to adopt your new idea? Humans tend to have the comfort-zone intuition. It is not easy to persuade people to change their habits to adopt a new style. This may be the biggest hurdle amongst the four. Awareness and education may be necessary to assure customers.
Continuous competition in a market will lead to price war and oversupply of commoditized products. Brand loyalty will start to decline and profits start shrinking, ending in a bloodbath which is termed as Red Ocean.
The Blue Ocean is a market space which is untested and uncontested. Players trapped in the Red Ocean should seek a path to exit towards the Blue Ocean.
There are four principles in the Blue Ocean strategy:
1. Reconstruct market boundaries
This is to look out for spaces where current competition does not see. You may still be in the same trade, but if you manage to create a new need for people, You will see demand naturally increase. Take the example of the Japanese hairdresser franchise QB House. In the haircut industry, there are different level target markets. Budget conscious men would go for an economical haircut at the barber. More image conscious individuals would go for average class saloon. Other individuals would not even blink an eye on the high price they pay at an upclass hair saloon. QB House ingeniously created a haircut service which fuses between barber and hair saloon. It created a concept with the budget conscious individuals in mind, to provide a hair saloon quality hairstyle at a barbershop price. It revolutionize the idea of haircut and create a new need, thus found itself in the midst of the Blue Ocean where there is no existing similar provider. Although over time, it may see more copycats coming into the sector, it is important to have the first mover advantage. When it sees its Blue Ocean slowly becoming red over time, it must then seek again for the next Blue Ocean. This is what we term as constant Innovation.
2. Focus on the big picture, not the numbers:
The lifeline of a business is always its bottom line revenue and profits. However, business owners must not be led by the nose in its budget. They have to look beyond the current scenario and paint a bigger picture for the business. This usually involves time and more investments into uncharted areas and most people easily shrug off such ideas.
3. Reach beyond existing demand:
Tata Group launched the world's cheapest car, Nano, on 26 Feb 2009, just one year after acquiring two luxurious automobile brands, Jaguar and Land Rover from Ford Motors at a price tag of US$2.3 Billion. The acquisition allows Tata an immediate access to the premium market of the automobile industry. However, it was not sitting still. It had been eyeing on the untapped middle class families in India, typically seen riding precariously on two wheelers, with children. With more than 100 million of such families in India alone, pricing the Nano at a mere US$2200, it is a sure hit in this sector.
Another great revolutionary product is the Wii TV console game player, launched by Nintendo. For many years, Nintendo has been in a distant far in the lucrative game console market, from Sony's PlayStation and Microsoft's XBox. Nintendo tweaked the idea on gaming by simplifying its console that could entice both young and old in the family to play.
4. Get the strategic sequence right:
In all aspects when seeking for the Blue Ocean, you must be pragmatic. You may be just building castles in the air if certain principles are not adhered to.
- Buyer utility: Is there an exceptional buyer utility in your business idea?
- Price: Is your price practical in the market? You have to ask yourself why your customer would want to pay you that amount you have defined for your product. Existing competitors and substitutes must be also be compared with.
- Cost: Is your cost of production able to meet the expected profit margin?
- Adoption: Why would people want to adopt your new idea? Humans tend to have the comfort-zone intuition. It is not easy to persuade people to change their habits to adopt a new style. This may be the biggest hurdle amongst the four. Awareness and education may be necessary to assure customers.
Wednesday, May 19, 2010
Singapore Entrepreneur - Money Creation and Destruction
From the video below you will start realizing that virtual money is being created to feed the world. It's rather scary. If the system falls apart, we will all face another D day.
Watch here
Watch here
Singapore Entrepreneur - Aliens or Hearthrobs??
Former French TV heart-throbs look unrecognisable on the red carpet after too much plastic surgery
Look at them in their younger days in the 80's...
Read more:
Look at them in their younger days in the 80's...
Read more:
Tuesday, March 2, 2010
Singapore Entrepreneur - Hottest February in Singapore - El Nino Effect or Global Warming?
The mercury has hit 35.2 Degree Celsius! It has been a sweltering hot hot February in Singapore! I couldn't help the environment with the extra carbon footprints I have been contributing from the full blast aircon as soon as I return to my car in the midst of the midday sun. Same when I get back home each evening in a sweat soaked shirt. I would conveniently press the air-con button control to my room.
I would then start reading news articles about the hottest and driest February and El Nino effect in this region in this couple of months. I read news about droughts in several parts of South East Asia and southern China, bush fires affecting the air quality in certain countries. I shudder the thought of global warming. I start to recall the recent climate summit held in Copenhagen. Attended by leaders of 170 countries, no agreement nor conclusions were drawn in the 13 days' meeting. The main reasons for the failure are attributed to different levels of economic development and wealth amongst nations. Even the fear of a world of apocalypse caused by global warming could not instill the urgency amongst the members to compromise and agree to a concerted reduction of carbon emission.
I just wonder if they have chosen the right location and period of the summit, in the first place. Copenhagen, being near the Arctic Circles, has got the coldest weather all year round, not to mention that the summit was held in the winter December, where temperature is at freezing point. How could you imagine what is global warming and ice caps melting when you are freezing under your thick fleece jacket.
I suggest they hold the next summit in our region, right in Singapore, 1 Degree North of Equator. Invite them to our driest, hottest February peppered with some El Nino effect. Hold it at the Siloso beach at 12pm and let them enjoy our tropical sun. Hold it every year in the same month and let them feel the heat each time the mercury hits the next record level. Without the need to say further, I reckon all parties will just sign the agreement unanimously. Let these temperate folks have a taste of what tropical people are facing on this planet.
Until any agreement signed to cool the earth, I will continue to find comfort in my aircon and please pardon me for creating more carbon footprints. I have no choice! I live in the tropics!
I would then start reading news articles about the hottest and driest February and El Nino effect in this region in this couple of months. I read news about droughts in several parts of South East Asia and southern China, bush fires affecting the air quality in certain countries. I shudder the thought of global warming. I start to recall the recent climate summit held in Copenhagen. Attended by leaders of 170 countries, no agreement nor conclusions were drawn in the 13 days' meeting. The main reasons for the failure are attributed to different levels of economic development and wealth amongst nations. Even the fear of a world of apocalypse caused by global warming could not instill the urgency amongst the members to compromise and agree to a concerted reduction of carbon emission.
I just wonder if they have chosen the right location and period of the summit, in the first place. Copenhagen, being near the Arctic Circles, has got the coldest weather all year round, not to mention that the summit was held in the winter December, where temperature is at freezing point. How could you imagine what is global warming and ice caps melting when you are freezing under your thick fleece jacket.
I suggest they hold the next summit in our region, right in Singapore, 1 Degree North of Equator. Invite them to our driest, hottest February peppered with some El Nino effect. Hold it at the Siloso beach at 12pm and let them enjoy our tropical sun. Hold it every year in the same month and let them feel the heat each time the mercury hits the next record level. Without the need to say further, I reckon all parties will just sign the agreement unanimously. Let these temperate folks have a taste of what tropical people are facing on this planet.
Until any agreement signed to cool the earth, I will continue to find comfort in my aircon and please pardon me for creating more carbon footprints. I have no choice! I live in the tropics!
Subscribe to:
Posts (Atom)
