Thursday, November 12, 2009

Questions From Readers #1

Yay! I finally have questions from my readers! Haha! You see those popular bloggers or famous personalities, they receive questions from their readers and fans from time to time. I'm getting closer to stardom! Right..... :p

*Dancing in the room... leaping across the air... no, you don't want to have the image of me dancing in your mind*

I've received 3 questions from 2 readers. Here goes #1:

Did u start solo or did u start with a team? Cos I find working alone really tough.

Many many many years ago (circa 1996), just after I graduated and started working (yes... that long ago), I had an idea, different from what I am doing now, so I gathered my 3 best pals from university and suggested the idea to them. All were excited by the idea and were fired up to start the business. We met many nights in a cafe after work and bascially just talked and discussed about our future venture. Like many internet start-ups (who wasn't dreaming about being a dot com then? It was dot com fever/rush), we doodled on paper napkins and planned the steps we needed to take. We talked about our visions, our hopes, our aspirations and how big we were going to be. We would talk until the shutter came down and the cafe closed. We would then all go to our respective company the next day bleary eyed and yet feel pumped up again when we meet in the evening. It was a very happy time. There was a strong bond and sense of camaraderie among us.

Then it was finally time to start the real work.

Based on their strengths, I assigned tasks for each of us. Even then, I had the knack of identifying individual strengths and weaknesses. The next meeting would be one month later.

When we met again, E brought in another friend of his, J. E was responsible of the graphics and design portion of our internet project. During our many early discussions, web programming was an identified weakness of the team. At that time, PERL (cgi programming) was the language to use and B was assigned to take up that responsibility. Apparently, E was not confident that we would be able to resolve our lack of technical skill problem so he brought in J.

J was a programmer and he was proficient in PERL and web development. The problem was, J already had his company and it was a company of 4. If we collaborated, it would become a company of 8. Too many indian chiefs.

During many meetings after that when J had joined, J gave me a feeling that he looked down on our team. He felt that our success depended on him. He gradually treated us like second class citizens and put us down. And disappointingly, E continued not to deliver on his end. There were no graphics, no designs.

As time goes by, the meetings became more and more infrequent and then it just stopped. I didn't call for any more meetings because I knew then that the team would have many friction and disagreements due to J's involvement. He did not respect nor value our contribution. We just quietly went our separate ways.

From that point onwards, I vowed that I would do something on my own and not depend on anyone in future. I started buying lots of books and did self-studying, getting myself ready for my next eureka moment. I paid attention to ideas that I can do on my own.

It took me another three years before a new idea (my current venture) came upon me which I believed I could do it on my own. In between, I read up many technical books and kinda become Jack of all trades but master of none.

The first 3 years of my own start-up was one of the toughest period of my life. Something about the New Year eves then. I would always feel very blue and down. Even though I may be surrounded by party revellers, I would feel like an island in the sea of crowd. When people were out celebrating, I would be wondering if it was time to give up. It didn't seem like I was getting anywhere and I still had bills to pay. Self-doubt was a monster which challenged me.

Yes, working alone was really tough. When I had problems, I had no business partners to share the burden with and I had to do everything on my own. However, I was fortunate to have married a very supportive and understanding wife. It was my wife who held my hand and walked with me through the darkest patch of my life.

But many of the lessons (this, this and this) I learnt then made me who I am today. I was trialed by fire.

After 9 years on my own, I am now very used to making my own decisions, implementing my own ideas and solving my own problems.

That being said, I would encourage people to have a team. The trick is identifying the right partners and managing the ego and expectations of each individual. Usually, with the right team, you should be able to achieve more in a shorter period of time. Working alone, I was usually constrained by what I myself can do.

I don't think there is a general answer to the question. Different circumstances require different approach. My circumstances pushed me to walk the path alone.

Mabye, just maybe, I was born to be a lone wolf.

Tuesday, November 10, 2009

A Long Road Ahead

It is a chilly and quiet night when most residents in the neighbourhood have turned in. There are only a few lonely windows with lights still on. Outside my window, the rain drizzled. The rain wetting the ground, the roads and the pavement quietly. Gradually, pools of rain water were formed and you can see rings and rings spreading out from the point where the rain drops touched the serene surface. The rain added a chill to an otherwise already cold night.

I can't sleep. My mind is still abuzzed with thoughts and activities of the past week.

It had been a hectic week. Had meetings with clients (to talk business) and friends (to seek advice), attended a workshop, bought a new 15" Macbook Pro for staff and in between all these, I had to squeeze time to bring my desktop for fixing. Fortunately, all it needed was 'flashing' the ROM to the latest version.

For the past 3 years, I've invested $16k each year for a competitive analysis report. Prior to this year, I've always wondered the effectiveness and usefulness of the investment. This year, it has finally proved its value. This year, the report showed that my company had lost 10% market share. When I saw the drop, I queried the account manager who was servicing my company. I had hoped he was able to give me the reasons pertaining to the drop. I bought a competitive analysis report afterall. His analysis was part of the package. Instead, he cooked up some lousy reasons trying to assure me that the drop was just statistical and I should not be concerned. My gut feeling told me his explanations were a total bull. I spent days thinking about the result and poring over the data. I can conclude that my company have indeed lost 10% of market share and it was not due to some statistical changes from an expanded basket of parameters.

The result proved it was the right decision made 3 years ago in purchasing the competitive analysis report. This had served its purpose as an early-warning detection system. I've been warned that my market share has been slipping even though my other internal measures are saying otherwise. This was because my internal numbers were only indicative of internal numbers of year to year. The internal numbers were standalone and were not compared to the overall market. Even though the internal numbers have been increasing (year on year), but from the competitive analysis report, it seems like my competitors have grown even faster and chipping away my lead.

I'll need to pore through the report and data in detail to identify the root cause of the drop. I'll also need to develop counter-measures to address not only the drop, but to both regain market share and grab more market share while at it. Fortunately, we still have a huge chunk of the market and a huge lead over our nearest competitor. This will buy us time to react.

For the past week, I had also been scrutinising my company's financial report and statements for year 2008 (yeah, I know, we are late -_-") and getting it ready for the final submission to IRAS (Inland Revenue Authority of Singapore).

In the past, I've only paid attention to profits and monitored only cashflow. Thinking back, I (I rolled my eyes) wondered how the heck I reached where I am today without paying attention to balance sheet, revenue and operating expenses? It was a heck of a lucky streak. Looking at my my 2008 financial reports, even though revenue has gone up by 25% but the profit had remained the same. This means that my expenses have gone up. Studying the financial statements, my cost had gone up by 37%! What actually happened was that I've been approving and funding new projects with wild abandon! I made my decision based on the company's bank account. In actual fact, what I did was spending the company's past retained profits. Without realising, I've spending the company's coffer.

For the past 9 years, running my company, I've never done any budgeting or business planning. I realised now that this had to change. I need to grow up fast. I need to mature from a all gut-feel and instincts entrepreneur to a number crunching business executive.

The burden is heavy on my shoulders. I can feel the weight crushing down on my shoulders. Even though my entrepreneurial venture had carved a moderately successful niche in the market but the competitors are learning and imitating fast. I can feel the crushing stress pressing down on my chest and it is hard to breathe.

I wondered who can share with me my burden. I screamed a silent scream piercing the veiled darkness of the night. There was no answer. This is a burden that I am alone to bear... and with the can of beer in my hand as my sole companion.

Tuesday, October 27, 2009

Consortium

KL was a friend I've known since my NTU days. He was a course mate and we stayed in the same hostel. He was also the one who shared with me a very important lesson during one of my crossroads.

If there were 2 paths to take, one was a dead end but the other path no matter how illogical or how hopeless it appears, if that path offers a glimmer of hope, no matter how slight, it is the path to take.

With that lesson, I made a strategic change and without it, I wouldn't be where I am today.

For a while, my friend, KL and I toyed with the idea of coming together with other startups and pooling our marketing efforts together. Each of us began touching base with our own contacts and introduced the idea to them. I bounced the idea to my contacts and in turn they bounced the ideas with their contacts.

The feedback we received had been very mixed. Some were enthusiastic, some were lukewarm and some were freezing cold.

I guess at the end of day, I shouldn't have been surprised by the outcome. We are dealing with a very diverse group of individuals here. Each of us have attained success in our own area. We wouldn't be where we are if we have not been strong-willed, opinionated, focus and maybe even a little proud, some would say, egoistic. :p

KL and I knew it wouldn't be easy but we just continue to identify entrepreneurs who are like-minded and shared the same enthusiasm.

A few days ago, KL told me he had arranged a meeting with another group of entrepreneurs. He knew I had wanted to get to know and meet them too so he invited me to join them. I think he was also returning a similar courtesy I extended to him a while back.

When the day of the meeting drew near and when I didn't receive any further details of the meeting, I asked KL about it when I saw him in messenger. I sensed hesitation in his reply. Then he told me his partner (the co-partner of his current company) would be joining him in the meeting and his partner would prefer to sound them out first without my presence. I was feeling perplexed. KL further told me that his partner thinks everyone just want money so he would be suggesting the idea of a joint IPO with the various startup companies.

I asked KL if his partner would be exploring our original idea of pooling our marketing efforts together. Again, I sensed a slight hesitation. So I asked KL if his partner will be discussing IPO with them?

His reply was, "Yeah, that."

I asked if the joint marketing would be discussed too. His reply, "And that."

It was very non-committal and I felt that my friend was not comfortable in giving me direct answers. It was as though he was just skirting on just the border of the question.

As KL was a good friend and I didn't want to make things difficult for him, so I just answered him that there will always be other opportunities to meet again so it was alright that I don't join their meeting this time.

After I closed the messenger window, I felt disappointment.

This originally started as an idea between KL and I. I never expected KL's partner involvement. I feel that he suddenly showed interest was due to the money angle. I was shut out just like that. I feel there is a trust issue here if he can't allow me to participate in the meeting. How can I trust him if he can't even show that he trusts me? This episode left a bitter aftertaste.

Even if they successfully formed a company to launch a joint IPO, I won't want to be part of the group. I don't think I have anything in common with KL's partner. I believe we are poles apart. 志不同,道不和。

I see the dawn of the rising sun perched on the horizon at the far end of the long long road before me. Today is the start of a new day. With my shadow stretched behind me, I continue the journey.

I always walk alone.

Live Like We're Dying

If you know you are dying, what would you change about the life you are living now? Would you be satisfied or would you die with regrets and unaccomplished dreams?

I had been asked many times by others who were on the edge, people who are undecided if they should take the plunge and risk everything to become an entrepreneur, what compelled me to take the leap into the ravine of unknown. I jumped because I wanted to defy gravity and fly. I wanted to soar up into the clear blue sky and touch the sun. Most importantly, I didn't want to have regrets at my deathbed wondering that if I could have realised my dream. I needed to know the answer.

I took the plunge 9 years ago. I will not sugarcoat it. My first 3 years were hell. I promise you, if you start your journey of an entrepreneur, it would be one of the most difficult thing you do in life. But you would be living your dream.

If you cower behind your fear and you don't have the courage to live your dream, wouldn't you be as good as a soulless body, a walking dead? Yes, the probability of failure is high. 99% of startups fail during the first year. But there is still the 1% chance. To me, that's a fantastic odd!

So let me pose to you the question again, if you know you are dying, how would you live your life now?

Even if you tried and failed, you would have lived!





Sometimes we fall down and can’t get back up
We’re hiding behind skin that’s too tough
How come we don’t say I love you enough
Till it’s to late, it’s not too late

Our hearts are hungry for a food that won’t come
We could make a feast from these crumbs
And we’re all staring down the barrel of a gun
So if your life flashed before you
What would you wish you would’ve done

Yeah… gotta start
Lookin at the hand of the time we’ve been given here
This is all we got and we gotta start pickin it
Every second counts on a clock that’s tickin’
Gotta live like we’re dying

We only got
86 400 seconds in a day to
Turn it all around or throw it all away
We gotta tell ‘em that we love ‘em
While we got the chance to say
Gotta live like we’re dying

And if your plane fell out of the skies
Who would you call with your last goodbyes
Should be so careful who we live out our lives
So when we long for absolution
There’ll no one on the line

Yeah… gotta start
Lookin at the hand of the time we’ve been given here
This is all we got and we gotta start pickin it
Every second counts on a clock that’s tickin’
Gotta live like we’re dying

We only got
86 400 seconds in a day to
Turn it all around or throw it all away
We gotta tell ‘em that we love ‘em
While we got the chance to say
Gotta live like we’re dying

Like we’re dying oh - like we’re dying [x2]

We only got
86 400 seconds in a day to
Turn it all around or throw it all away
We gotta tell ‘em that we love ‘em
While we got the chance to say
Gotta live - like we’re dying

We never know a good thing till it’s gone
You never see a crash until it’s head on
All those people right when we’re dead wrong
You never know a good thing till it’s gone

Yeah… gotta start
Lookin at the hand of the time we’ve been given here
This is all we got and we gotta start livin it
Every second counts on a clock that’s tickin’
Gotta live like we’re dying

We only got
86 400 seconds in a day to
Turn it all around or throw it all away
We gotta tell ‘em that we love ‘em
While we got the chance to say
Gotta live like we’re dying

Like we’re dying oh - like we’re dying [x2]

We only got
86 400 seconds in a day to
Turn it all around or throw it all away
We gotta tell ‘em that we love ‘em
While we got the chance to say
Gotta live like we’re dying
Live like we’re dying


Monday, October 26, 2009

Making Millions

A very long time ago, I read that Michael Dell was a millionaire before 30. So when I started my venture, I had aimed and hoped to become a millionaire by the age of 30. Well, let's just say that my 30th birthday had gone by very quietly many years ago and I was nowhere near a million bucks, not even in terms of SGD so let's not talk about USD. :p

Recently, I just had a realisation. If my company is making $500k a year and since I own my company wholly, every 2 years, I would have made $1 million. In that sense, I would have made millions already since I've been running my company for 9 years now. If I console myself, I've actually attained my goal some what. So I should aim to make $1 million per year. Heh.

But by another calculation, if I were to use P/E ratio (price-to-earnings ratio) to measure my company, it would yield another story. If my company is making a profit of $200k per year and if I were to use a P/E ratio of 8, my company would potentially worth a whopping $1.8 million! Similarly, if my company was only making a profit of $50k a year and I were to use a P/E ratio of 20, my company would also be worth a million dollars. :p

Actually, all these are just playing with numbers. Whether a company is worth a million dollars, it means nothing, if there is no real buyer or investor to recognise the value a company tags to itself.

In the course of my venture, I've met entrepreneurs who would like to thump their chests (imaginary) and proclaim their companies are worth so many many millions. In the end, many of these ventures are the first to fail. Sometimes, I wonder, it seems the bigger the number they inflate their company to be worthed, it seems the quicker they fail.

Looking back, do I regret my decision of taking this long and arduous road? My answer is a resounding "NO!". The people I've met, the life I've led and being the captain of my own destiny and charting my own course, the experience to me, is already worth millions! This year alone, within 3 short months, I've made a trip to both Paris and Tokyo respectively. I'm also able to have greater flexibility of time and I get to spend more time with my love ones, to me, that is already priceless.

I'm now having the time of my life and I feel like a million bucks! ;)

Monday, October 19, 2009

The Dark Paladin

A client of ours have defaulted on payment. We have been calling, emailing, sending SMS and eventually we had even sent him a legal letter requesting for payment. Through the one year period while we were chasing payment, the client had never responded to our correspondence. He even ignored the legal letter of demand.

When I shared this with a friend of mine, the friend told me that the client does not have any problem paying. He is not facing any financial difficulty. In fact, the client is loaded.

Eventually, I had to resort to something which I've not done before in the past 9 years, I instructed my lawyer to commence with civil action and a writ of summons was served to my client.

Guess what? The client made a wire transfer immediately on the same day. It was really a wtf moment.

When I started my journey 9 years ago, with wide and doe-eyed innocence, I sincerely believed my journey will not change me for the worse. But slowly, my heart hardens and soul is darkened. Every conflict I had hoped to resolve amicably, every conflict just brought me closer to the darkness. I see the world not as beautiful as I thought but a lot more uglier than I realised.

About 7 years ago, I had a client who did not make payment. I even paid many visits to his company and he always pleaded with me to give him more time and I always did. This went on for 2 years. When I shared this story with a lawyer friend, he suggested that he'll help me send a legal letter of demand to him. I was very reluctant. I was still hopeful for an amicable resolution but my friend managed to convince me.

Within days of sending the letter, I received payment.

I learnt my lesson. In fact, many years ago, one client defaulted a payment of $12k which I was never able to recover till this day. From then onwards, when my clients don't pay after a reasonable period of extension, I would instruct my lawyer to send legal letter of demand and I would usually receive payments promptly after that, except this most recent case.

It gets easier each time I request my company lawyer to issue a legal letter. Because each time, my heart hardened further.

Sometimes, I wonder what's the point of being nice. I just get pushed and trampled all over. Through the 9 years, I heard of rumors and untruths about my company and myself that I no longer feel anything and am immune to them. I realised some people just choose to believe the "jucier" gossips and untruths. If they even bother to exercise their grey matter, they would realise the rumors don't stand. How could or why would my company issue a client a 5 years worth of invoices when the client has only used our service for one year? Can you please exercise your intelligence when you hear things like these? What? We bully our clients? Please explain how we do that? We are fortunate if our clients don't bully us already.

Sometimes, when we were nice to our clients and helped them solve their problems out of our own good will, some of these clients would then 得寸进尺 (literal translation: asking for a foot after getting an inch).

My heart has now darkened further. I've sent my first writ of summons and succeeded. It was not something I enjoy doing but needed to be done. The end justify the means.

Long time ago, my armour would reflect the sunlight with a glorious cobalt blue. Now, my paladin armour shimmers with a dull gun-metal grey under the pale crescent moon.

The dark paladin has cometh.