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| Business Models--- Not the literal model sense |
To continue from my part 1 of my own perspective:
Over a few weekdays and weekends this month: I have...
- Attended a few startup related events - particularly technology related
- Opening of an incubator/accelerator tech space in Penang
- Meetup with a few entrepreneurs and had a chance to oversee their daily operations
- Falling sick due to the !^%&%! haze
A few personal note-able notes:
Startup events are great; You are able to hear about different perspectives from various startups and experienced entrepreneurs especially those from overseas. Furthermore, free food/snacks provided is not a bad thing at all.
However..,
a) sometimes I cannot really relate to some of the sharings by the presenters especially those from oversea and apply it in Malaysia (Our Bolehland). For example, regarding startup funding, I do find in Malaysia it is not so easy to find angel investors, etc to give you seed money with just an idea or an early implementation. It is further compounded if you are not trying to startup an IT related business.
b) Even if you are based off Malaysia, you should already start or have a roadmap to aim a global expansion. Oh heck, start to derive business revenue from overseas (typically true for Internet related services). The reason is quite simple, Malaysia has a small population and the pie may not be large enough for to grab hold off if you plan to be a billion-dollar tech company. (sounds sexy right)
c) Get to know what is incubator and accelerator is all about in Malaysia. See here for some definition
d) If you don't have much money/funding, always bootstrap. If your idea is not workable, at least you don't throw TOO much money down the drain prematurely, especially if the money is coming from friends and family. The worst comes when your idea is damn brilliant, getting too much funding might dilute your shareholding and control of your own startup when it starts to rake in huge profits. Here basically you are giving away your hard work and sweat to people who just become sleeping partners.
e) Startups are not the coolest in-thing that everyone should do. I have to admit that I do have this initial impression after going to a few startup events.(It sounds very lovey-dovey and simple when presented on a slide :p) However, this perception is shattered when I get to know personally some of the entrepreneurs. Their stories can be made into a teary K-Drama. Everyone only see the glory of their success, but never know the blood and sweat behind it.
f) Not everyone are made to be entrepreneurs. You must decide and be very very ready to face the tough business world.
g) If you don't have the aptitude to do business or cannot afford to take the risk to start one (due to age, family constraints, financial burdens), it is best in my opinion to concentrate on property or the stock market.
h) To survive financial shockwaves to your business, you must always ensure that your gross/net profit is very high. What is high? - I suggest at least your gross profit to be ~50%, otherwise it might not be worth the effort and the trouble that entrepreneurship entails.
I) In tech related startups, alot of people think they have brilliant ideas: However, here are the following problems that they might not able to see it
- It might be an unproven business model
- It might take very long just to break-even or even turn profitable
- The founder have a tech related idea, but cannot do programming hence hitting the stumbling block to find a technical co-founder. My advice is that if you are young and don't have alot of time commitments, do learn how to code yourself instead of trying to find other people.
- Even if it is a brilliant idea, you might find it hard to find funding for your idea initially.
Lastly, an idea will always be only an idea if there is no execution to do it!!
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