Most neglected capital asset..... called Reputation

As the world continue to ride on the economic uncertainty, Asia has continue to spearhead healthy growth in this region. A brief encounter at the M&A (mergers & acquisitions for those who are unfamiliar) scene shows that Asia M&A which has grown from a small, financing focused product just about five years ago to a significant part of the financial growth story. Asia M&A activity now comprises of about one third of global volume - up from just 7% in 2006. In all these M&A activity, amidst all the analyses, legal and regulatory compliance details, lies a very important expectation which is the expectation that the parties to the M&A deal will live up to what was agreed and committed. Here lies the greatest test of all.....will the other party live up to its commitment? Although one hope that all things plan well will goes well but sometimes things just don't goes that the way it should. There is a famous quote that says;

"A warrior accepts that we can never know what will happen to us next. We can try to control the uncontrollable by looking for security and predictability, always hoping to be comfortable and safe. But the truth is that we can never avoid uncertainty. This not-knowing is part of the adventure. It is also what makes us afraid."

However despite the fact that uncertainty will be there, parties to the deal should learn to build on their reputation capital. It is the basic principles of integrity and fairness with which firms can build an enduring reputation for his enterprise. Companies that embraces it finds competitive advantage in the corporate, social and environmental circle. It is a value creation that puts the company a step beyond and differentiate it from the others. Companies in a deal should endeavour to plan and work out what has been agreed. It is sometimes easy to take things lighter after the deal is inked but failure to deliver has a price to it and it is also one which is very difficult to reverse. However always need to be reminded as another wise saying goes:

"If you must choose between a good reputation and great wealth, choose a good reputation. - King Solomon.


Looking out:

1) I have a friend who invested in a TaeKwanDo school. Do check it out if you or your friends are interested. Here is the link. www.kyungheetaekwondo.net


Look forward to our next sharing,
KH

Start-ups, a needed path for a growth economy

Hi friends,

The US is experiencing turbulence in its economy. So much has happened and its challenges ahead is by no means an easy feat. The US will need to revitalised and put laser focus into what it can do to lift its economy out from these challenges. There have been several advocates in the news that the US need to fire-up its entrepreneurial spirit to lift its economy out from the uncertainty ahead. This requires a change in the people's mind set and the willingness from the nation and the government to plunge into this effort.

Entrepreneurial efforts to spur many start-ups is always an effective way to lift an economy or to bring the economy to the next level. Start-ups initiatives also brings in a multiplier effects that can benefits many levels of the economy, from jobs creation to increasing the standard of living of a society. It brings in economic and social benefits that every country who wants to be among the most competitive nation desire to achieve. Obviously as in any new adventure there will be certain risk associate with it. There is where we need to be educated to be a learned risk-taker in venturing into a new space. There can be no upside without risk. However new start-ups is a very important source of innovation. Great innovation not only brings in many fold of returns but also has the ability to spun further ideas to continuously propel an economy ahead. Singapore is no exception to this initiative. A lot of funding programmes and assistance has been developed to assist start-ups especially in the knowledge-based space. This is a great effort to ensure Singapore continue to stay ahead. Entrepreneur wannabe should seize this opportunity to read the market and venture into the next Big thing! It is good to be knowledge-loaded but it is even better to learn how to commercialized those knowledge. One learn and gain so much in an entrepreneurial venture. The need to fire-up the entrepreneurial economy does not only confine to the US but many other economies in the world as well. Many more start-ups is needed...

By the way do you know which is the best country for start-ups? .....check it out from the link at the right hand side of this blog page.

Looking out:

1. Any 3 man-team who inspire to start-up a venture in the technology space. Funding and mentorship available.

2. Internet marketing expert who wish to co-partner in a new venture. Opportunity abound!


Until the next update, bye
KH

Managing Expectations

Hi friends,

There was a recent article regarding entrepreneurs operating in Singapore where they have the tendency to unrealistically value their firms. They tend to compare themselves to the deals in China and India where the market are so much bigger.

When I read that article it dawns upon me that entrepreneurs, in many cases are like scientists and engineers where they always view their invention to be the best and hence will command high commercial value. Generally it is not common to find a scientist or engineer who view their inventions to be inferior or useless. And this is quite understandable. Having pour in (sacrifice) so much time, efforts and money (though some comes from various funding) it is not difficult to understand the close bond and passion that is being developed between the inventor and its invention. It is almost like a parent who will always believe deep in their heart that their children are good (in its own way). Hence in a similar way, whenever it comes to putting a value on their inventions, it is so easy to look at the vast market (especially in China and India) to develop a value that will be attracted by their product or services. However such entrepreneurial approach, without a clear understanding on the market dynamics can be a downside to the entrepreneur as the venture firm or any prudent investor for that matter will not buy into that potential without clear market indications. Entrepreneurs need to know how to manage their expectations. Whilst it is the goal of a firm to maximize return on their investment, unless they have done proper market due diligence and are able to convince the investors that their market potential is realistic, it will be a tough sell. Managing expectation requires one to be knowledgeable of the market and be open (to himself) to any adjustment that is needed. In this way not only are they able to attract many suitors for their businesses but also as a result of that, be able to bump up their valuation due to competitive bidding. Since this is due market forces of willing buyers and willing sellers, the entrepreneurs will come up as the winner at the end of it. Managing expectation is an important ingredient in any business dealings and the mastery of it will prove to be beneficial in the long term.


Looking out:

Small web application team who have a neat idea to develop into a potential product or services.

Internet marketing business selling into emerging markets.


Have a good weekend ahead
KH