Its been a year
Time flies, since the day of being awarded with RM150K from pre-seed, 1 year passes like a blink of an eye. Life of an entrepreneur has never been easy as i have expected, but i didn’t expect it to be that tough. Through out the year, we have been focusing on producing the proposed idea to Mdec, creating prototype and animated cartoons and hoping one day that someone will buy the idea. From the process of preproduction to post production, storyboarding, animating, sound recording, it is fun and exciting. Now, prototype and animation has completed, the funds given to us as almost dried up. We had gotten the interest of potential parties. 40+ kindergartens with 2000+ students have sign the letter of interest, even clients shown interested with our product. The only problem is to cover our cost and to generate revenue that our strategy might not be able to cope with it, and we try not to sell it investors that will consume our control over the company. So we have to put things on hold for the moment, and change our strategy to target at broadcasters in order to survive. However, broadcasters doesn’t work in the way we expected, and government has put most funds on hold. and I feel of throwing out with the pressure that the challenges I had to faced in an unknown future.
I got lots of things wanted to do. Get a girlfriend, buy a luxury car, invest in stocks, buy a house,and etc. but my cash flow is so tight for me that prevented me to do other things. Looking at your friends with high salaries, thinking of yourself just having RM1500/month, if i have not venture into the business, my salary will be around RM5-6k a month or more, and why do i put myself in this shit. A friend from a big corporate ask me about entrepreneurship which he feels like venturing it, lack of satisfaction in work where things he achieved successfully in the corporate doesn’t belongs to him. With a salary of 9-10k, living in a comfort zone, and his commitments has feared him from coming out.
He ask me if he had got funded and start a business on his own, what will be my advice. The problem starts when you got funded, things change, the market demand will change as you go along, you might not know the future what will happen. All can be done is to believe and work for it. My mum did ask me what did I do for the past 1 year, cause she can’t see any achievements from me yet, and I told her that I am not selling nasi lemak or chicken rice by the road side where profits can be seen immediately. There was once a mentor warn me to expect there will be no customers for 1 – 2 year during start-up. I guess that this is the process.
We compared a corporate worker, a family business and entrepreneurship in the chat. Corporate worker has steady income with lack of satisfaction, Entrepreneur a strong believer and a psycho with 0 cash, and how I wish my dad is rich and runs a business that I have not much to concern with only the challenges to expand it. Which will you choose? I grown up in an average family, my dad and my mum is working hard for their bosses, and i pity them for not enjoying their life, and i wish i could do something with it and this becomes one of my motivation to venture into business.
Sometimes i just wish that this post is in private to release my tension and depression. To cheer up myself a bit, at least in my life, I achieve 150k in a year, I achieve MSC Status for my company which my previous employer failed to do it. In the year 2009, I have learnt something which average corporate and schools did not teach. And I only can believe the future will be a brighter one. Happy New Year and Merry Christmas~!
The “FREE” Model – Cheap but Intelligent
“FREE”, from the author of “The Long Tail”, Chris Anderson. The word FREE, sounds cheap, sheepish and stingy. However, I found it to be intelligent, brilliant and fascinating in the sense of business and marketing strategy. Long before this book was published, the word “FREE” has come to me while i am doing research for a business proposal. It is everywhere whether you realized it or not.
For products that I am interested with, “Cheap people” like me are always never hesitate to take “FREE” and discounted products. And people with high egoistic and self-esteem person will never understand. However, these people did not realised that the Radios they are listening and the TV they are watching comes “FREE” as well. and with today’s informative world of internet, most content and services are provided “FREE” such as, email, news, blogs, dictionary, music, video, software whether is it from google, yahoo, youtube or etc.
FREE is never meant by entirely “FREE”. Is just that money is being subsidized and transferred from one product to another or from one person to another. For example, our local media broadcasters such as “TheSun” newspapers, RTM 1, 2 and TV3, NTV 7 and etc, are provided free to the public to read, watch and listen. So where does the revenues comes from? It is obvious that these broadcasters charges the advertisers at a very costly price. So in this sense, audiences are being subsidized by advertisers to watch free content. Same goes to Google search engine, YouTube and etc. Hence, whether is it a “buy one FREE one product”, or a “FREE trail” saloon, the intention is to gets consumers interested in the paid product. for example, Skype provide free phone calls to users, and you need to pay to call to cell phones.
Ideas can be generated within the “FREE” Model and it will be the future trend of businesses employs. For start-ups to employ such strategy will be a brilliant one. However, the tough part to employ such strategy is how you will be able to sustain the losing part to gain the interest of consumers with your paid products. Huge capital is needed.
A grant for Contents – MSC Malaysia ICON Grant (Unofficial Guide)
According to the source from greyreview.com (The Unofficial Guide to MSC Malaysia ICON Grant) and MSC Malaysia, our PM announced the establishment of the MSC Malaysia ICON grant programme, with the amount of RM12.86 million allocation (under the second economic stimulus plan), to spur the creation of local online contents to support Malaysian broadband strategy. We get to know the grant 2 months ago, where our company is recommended to apply for the following grant during our application of MSC Status, where our strategy and business models are align with the objective of the grant.
- Purpose of grant: Hooraay~~~ Malaysian will enjoy high speed broadband in the near future!! However, the authorities are afraid that the broadband penetration rate will still remain low after the implementation. Hence, the objective of this grant is to generate more local contents to encourage the nation broadband penetration. Hence, your proposal and business model must be able to align with their strategy in promoting broadband uptake in Malaysia. In actual, with or without the grant, with high speed broadband, i see a lot of opportunities ahead for businesses such as IPTV and etc.
- Amount of grant: RM100,000
- Duration: 8 months
- Application Flow: The application flow for ICON grant is rather different from PRE-SEED. For Pre-seed, after submission of application, you will need to present your ideas to the panels yourself. However, for ICON, after submission, you will be assigned with a representative from the ICON community, and you will present to your representative, and your representative will present on behalf of you to the panels. There is a possibility that you will also need to do the presentation yourself if the panels has doubts and they need further information or better understanding from you.
- Disbursement method: I hope I did not interpret this wrongly from MDEC. If I do, please do correct me. PRE-SEED disbursement will be given upfront by MDEC in quarterly basis. However, ICON will be rather different. The phases are structured in 2/3/3 format. which means 2 months + 3 months + 3 months = 8 months. If I did not interpret wrongly from the community, the first 2 months, 20% of the requested amount will be given upfront from MDEC, but the remaining quarter, you will need to fork out your money first, and claimed back as proposed. In another word, if you are requesting for max RM100k, you need to have extra RM40k to survived the first 5 months after 20k has been disbursed.
- Type of Programme Supported: Please read the following links = (ICONapps, ICONedu, ICONity, ICONex)
- Forms and Application: Please contact them via their email to obtain the forms and application.
- More details please contact them personally via their email. Please download the infopack
Lets talk about Pitching
I was brought up with Chinese education, my English is always broken. So, when comes to pitching, preparation and the flow of presentation is very much important to me. I attended a Startup Garage recently hosted by Entrepreneur.my. One of the session talks about pitching for MDeC pre-seed grant, conducted by one of the successful grant recipients, Mr. Keng Yew, from SocialWalk.com. I total agreed with what Keng Yew has presented, and I felt very insightful for new grant applicants (to download his slides, click here).
A few months back, I was helping a friend with their grant application, great business model with great proposal written. However, they failed due to poor presentations. A brief recipe of what you should be present:
- Problem – What is the current problems in the market which you found it as an opportunity ?
- Solution – The solutions to the problem. What can your system do?
- Product – The main features of your product that provides the solution.
- Demand – Show them the demand from the market. Tell them this is what the market wants. show them letter of interest.
I believe most of the you might have known of the above recipe. but what you have not notice which kengyew has pointed out, and I totally agreed with that. Things you should get notice for your presentation:
- Don’t put your panels to sleep nor giving them a headache:
- This is one of the mistakes that my friend did. The panels are listening to more than 20 presentation a day, they are tired, sleepy. So, Stop listing all the features that what your system can do.
- Example, you are pitching to built a Toilet bowl with a system that is able to analyse human health condition by examine the faeces (your stool).
- Hence, you do not list down every single feature of the toilet bowl from flush tank, design, flap seat, ass washer, can do this, can do that and bla bla bla bla bla etc. How boring was that!!!
- All you need is to find out your few main unique feature, and focus on that only. the rest, mention in brief.
- if you list down too many features, it looks more like a rojak system instead of a uniquely defined product, and may open up more problems and question for the panels to haunt you down.
- Tell Stories
- “Imagine, every morning when you are sitting on your toilet bowl, there is a nice sweet voice with background music, reporting on your health condition, advising you the amount of water you should drink, print and plan the type of food you should eat. Apart from that, if your ass get too numb, you get to comfort your ass with the massage system”,
- rather than …“The toilet bowl that we proposed will have voice reporting system, a built-in speaker, a printer that will list down the amount of water should drink and the food to consume. and also, a built-in X2131 latest model of massage system.”..ZZZzzzzz …. who cares about X2131 model.
- I am not a good story teller, that’s why I plan for my presentation with stories. Preparation is needed.
- Is all about Emotion:
- You don’t present like you have just gotten up from bed or your dog just died last night.
- You need to show PASSION and EXCITEMENTS. Give me the money or i will ….~!
Amber Chia – the role model for faulty startups
Malaysian Top model Amber Chia has now became the role model for all Malaysian startups. A lesson that should be learnt when dealing with businesses. According to the news in the recent papers (see: news 1, news 2), Amber ran into a business partnership with a friend that claim to possess a Franchising Agreement from Ford Model, an international model search franchise, to run a show based on Ford Supermodel of the World. Winners of the show would win US$50,000 (RM173,250) each, coupled with modelling contracts and stand a chance to compete in the Ford Supermodel of the World contest. The saddest thing is the business started off with a verbal agreement and Amber have no doubts on the Franchising agreement that her friend claimed to own. And these are the real facts that do always happens in the real world.
We humans tends to be over sentimental than rational when dealing with business. The moral that amber has taught everyone that no matter how close you are with your business partner, you will still need to take in consideration of self protection. Self protection is not meant by profiting only yourself, but is just to be un-harm, where risk are fairly shared and profits are fairly distribute. Coming back to the reality of life, Yes, the business world is cruel and complicated. Even blood brothers, relatives, siblings can betray each other, there is no doubt that your best friend will turn you over. Amber mistakes was not getting a confirmation from Ford Model from the very beginning before running into business and over trust a friend. Sometimes these kind of "sentimental relation risk" is needed to take, but we still can minimize the risk and to be extra cautious. I envied that Amber has the heart and ability to encourage, to train and nourish new young talented models from Malaysia, however, I guess, to protect and benefit others, first you will have to be strong enough to protect oneself.
The No Turning Back Point
It’s almost end of our funding period. Prototype has completed, and hence we were struggling to get Letter of Interest from various parties. Had been months meeting various audiences and potential clients and we were given good feedbacks from both sides. However, although feedbacks are good, now the only problem lies on our product price. The price mentioned by the clients didn’t manage to cover our product cost. And this is the most difficult challenges for us that we need to revamped our business model again. The cost of animations could be very high. 1 episode in 1 series can cost around RM40-60k. Given the feedbacks from clients and audiences, we knew that our product works. It just that how we can sell at a reasonable price and cover our cost and on top of that earn some money. So, we were now heading for MOSTI for a larger amount of fund for the upcoming months, however, MOSTI funds are ending this year. We are in progress developing a preview for pitching, and this only could be complete by end of October. and to get Letter of Interest within November, and hopefully submit my application on end of Nov. By then, I do not think that there will be any funding left over for us. I am frustrated now for not being able to help to built the preview but to do nothing until it is completed. Waiting, is mentally torturing me.
Although we were given good feedbacks from clients, but we knew the road in front is tough, we are left out with no more capital to spent, hanging in between. Looking at your friends and ex-colleague getting promoted with income raise, I have wonder why did I put myself in such situation, but I never regretted. I feel glad that I had a team that runs with me until now, and thankful for the support from my family from the beginning. Hence these only made me no choice but to continue to move forward even you knew the road is tough. I love pressure~!
Recommending HowStuffWorks.com (Must Read: for grant applicants)
Tech geek like me have not when for business schools, marketing nor finance classes. However, such information could be found over the Internet. There is this site called "HowStuffWorks" has started to become my favourite, introduced by my colleague, KC (it was his all time favourite), and I am now eagerly to introduced to all of you who are reading my blog. "HowStuffWorks" has almost everything on how something works, although it is not written in very detail, but it does benefits me in certain ways. for example, when someone proposed me an online Business, I will definitely look into this site for information, such as "How Creating an Online Business Works", crack into the online business giant such as ebay on "How eBay Works", learning the ebay way. Or, being the CEO of the company, I shall learnt the responsibility of CEO, then I read "How CEO Works". Hence, for business starters like you and me, we should read "Starting Business" in HowStuffWorks. The following list of links is essential for start ups and grant applicants to read:
- How Business Ideas Work – Grant applicant must read.
- How Business Plan Work – Grant applicant must read.
- How Start Up Capital Work
- How Does Venture Capital Work
- 10 Ways to Finance A New Business
- 10 Common Problems for New Businesses
- How Business Legal Structure Work
- How Marketing Plans Work
For those who are reading the my blog post on "Basic Tips and Guidelines for applying ICT Funding in Malaysia", the links above is a must read, specially the How Business Plan and Business Ideas Work.
Another lost talent from Malaysia – Pen Drive Founder Pua Khein-Seng
At the recent local newspaper, it has known that the founder of pendrive is a Malaysian. Yes, indeed, Malaysian is the one that invented the pendrive(a thumbdrive, usb flash memory, etc or whatever u named it), Mr Pua Khein-Seng, the pride and proud of an Malaysian Entrepreneur (click here for more info). I felt proud for the moment when I was reading the articles that how Pua made his way up when he started his company (PHISON ELECTRONIC CORP) in Taiwan while he was only 27. I googled around and search for his profile and I came out to a very ironic information (which i do not know how true it was), that Pua was a rejected student from the local university, and even though his proposal of his USB flash memory (pendrive) was also rejected by Malaysian authorities, and he was force to stay back in Taiwan to start his invention. a Malaysian Entrepreneur which was not in MALAYSIA.
Today, PenDrive or USB Flash memory, has revolutionize the era of floppy disk and storage in the world of computer. As an inventor, just only by receiving licensing revenues from different manufacturer would have made how many billions of dollars from around the world. However, the most ironic thing is this, it is claimed to be a “TAIWAN TECHNOLOGY” instead of “MALAYSIA TECHNOLOGY“. First of all, the technology is patented under a TAIWAN company, funded and invented in TAIWAN, hence, it is a TAIWAN TECHNOLOGY. This is just one “in your face” disgraced for MSC MALAYSIA, that has missed an opportunity to sparkle and polish Malaysian capabilities that all pendrive around the world is a MALAYSIA TECHNOLOGY. Apart from that, the millions and billions of dollars that has flown into the TAIWAN company which is worth RM4.1Billion, instead of a MALAYSIA company has really really sadden me off. Arggg…..I am so sad, so angry, the money, the pride, the proud~~ gosh, all gone to TAIWAN~! You can’t blame Pua. Now, whether is it for 1Malaysia, reporters has been running around to spot out entrepreneurs that has lost from malaysia, asking them, “Will you be coming back? do you still love your country? will you bring back your business?”, i think most will answered, yes, I love my country, i will be back. In terms of bringing back the business, hmmm, what will be the offer from the country? My business is well established out of malaysia, whats for the hassle to bringing it back?
I was wondering, if Pua managed to do this in Malaysia, will it be the same achievement as he has in Taiwan now? so? the pride, the proud or the shame?
Inspiring Video on Entrepreneurship
This video is really awesome. Although is an telecommunication advert, however it expresses and flourishes the value of entrepreneurship in one single video.
- You remember when you were a kid, and you thought you could do anything? You still can.
- Because a lot what we considered IMPOSSIBLE, is easy to overcome,
- Because incase you haven’t notice we live in a place where One individual can make a difference
- Want Proof? Just look at the people who built our country, our parents, grandparents, our aunts, uncles,
- They were immigrants, new comers, ready to make their MARK,
- May be they came with very little or perhaps they didn’t own anything, except for a SINGLE BRILLIANT IDEA
- These people were Thinkers, Doers, Innovators until they came up with the name, ENTREPRENEURS.
- They change the way we think about what is POSSIBLE
- They have a CLEAR VISION of how life can be BETTER
- For all of us , even when TIMES ARE TOUGH.
- Right now is hard to see when our view is cluttered with OBSTACLES,
- but TURBULENCE, creates OPPORTUNITIES for SUCCESS, ACHIEVEMENT, and pushes us to discover NEW WAYS OF DOING THINGS.
- So what opportunities will you go after and WHY?
- If you’re an Entrepreneur, You know that RISK ISN’T THE REWARD.
- NO. The REWARDS are DRIVING INNOVATION, CHANGING PEOPLE’S LIVES, CREATING JOBS, FUELING GROWTH, and MAKING A BETTER WORLD
- Entrepreneurs are everywhere, they run small businesses that support our Economy,
- design tools to help you connected with friends, family and colleagues around the world.
- and they’re FINDING NEW WAYS of helping to SOLVES OLDEST PROBLEM
- Do you know an Entrepreneur?
- ENTREPRENEURS CAN BE ANYONE, EVEN “YOU”
- so, Seize the opportunity to CREATE THE JOB YOU ALWAYS WANTED.
- Help Heal the economy, MAKE A DIFFERENCE, take your business to NEW HEIGHTS,
- But most importantly, Remember when you are a KID, when everything was within your reach,
- and then say to yourself quietly, but with DETERMINATION: IT STILL IS.
Yes, we have forgotten how innocent we were when we were young. Everything is possible, and we just do what we want to achieved. we are so determined. obstacles are never in our way. Is time to remind us we still CAN~ ENTREPRENEURS CAN BE ANYONE, EVEN “YOU”!
Malaysia – From Pride to Shame. We need more competitive awareness.
Read this article “From Hare Speed to Tortoise Pace“, from theStar Deputy Executive Editor Wong, telling his story in the golden days to the darkest night of Malaysia Broadband services. 10 years ago, Malaysia is proud with its broadband services where we have the most advance technology in the broadband industry compared to some of the countries in Europe, such as France where they have only dial-ups. With that moment, we definitely feel the pride and joy of being a Malaysian. However, with only one decade away, today France had a far more better and faster broadband service than Malaysia. and where we are now? Our broadband services has not improve at all for the past 10 years. I guess is either we fail to learnt the moral from the story of “The Tortoise and the Hare.”, or we are just too satisfied with the current situation. We are the Hare, we are sitting under the Tree, and we are still asleep.
Malaysia needs more competitive awareness, and I personally still feels that Malaysia has not awaken from its comfort zone. The best example that the recent abolishment on implementing English in Maths and Science has raised a critical issue in the region where the authorities are over protecting the inability of rural areas and the insufficient knowledge of the poor educators and has forgotten of who we wanted to be in the global position. In my personal opinion, applying sufficient pressure in the education system is the only way to improve our competitive advantages in the global industry. Stop protecting and stop giving excuses to yourself for not improving. Its only a matter of whether you want to be improved or not. I came from a Chinese independent school, and I remember the horror in learning English, Chinese and BM in both Science and Maths. Get over it, Malaysian~!
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Life is interesting, its all about experimenting, trial and errors and self improvments. This blog is all about my personal experience. I am full with ideas, and i will achieve every one of them step by step.