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
About Me
- KH's weblog
- Interest in private equity, venture capital and entrepreneurship initiatives
Wednesday, July 28, 2010
Friday, July 16, 2010
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
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
Friday, July 2, 2010
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
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
Friday, June 18, 2010
The last 20 meters...it could be a worthy pursue
Hi Friends,
I met up with some entrepreneurs recently and one of the interesting topics that we dwell upon was in regards to the commercialization of the innovation and invention from researchers in universities and institutions. It is not a new phenomenon that many pieces of innovative work gets established and patented but not many are being taken to finish the course, of having it commercialised. In a way it is such a waste as certainly there could be a number of them that could be beneficial to the economic and social well being of a nation.
There are a number of reasons as to why these innovation had stayed at the patent level. Among them are due to the mindset of the researcher that their primary role is just to discover and impart those new found knowledge. They do not see the need beyond that. They may have little exposure to the commercialization aspect of it and how it should be done. Their career path could hinges on the number of patents being registered (and not necessarily commercialised). There are also some who wish to have their innovation commercialise but may faced with certain roadblocks like financing or find the whole commercial aspect of it a task too daunting to handle. Other contributory factors could be due to the research being too much towards a pure research and not applied research. In fact one of the very key success factors is to develop strong linkage between the researchers and industry so that the potential market needs can be better gauge. There are many neat inventions out there but one would wonder how many of them are with real commercial substance, created with real voice (though could be flimsy initially) of the potential customers. Otherwise many of these inventions are purely paper assets and not realised assets.
Researchers (beside those who focuses on pure research which have its own purpose and intent)who have their invention built should endeavour to finish the last 20 meters (of the 100 meters race) to commercialise it, hence realising the benefits of it. To take an invention, beyond prototype to the next stage requires a great need to listen to the Voice Of Potential Customers (VOPC). There are various ways to do that but one need to listen...what is the voice of the potential customers saying?.....what is their pain point?...how painful is it?....is your invention the solution?
Looking Out:
1. Social games developer who wish to learn how to commercialise their development
2. Social philanthropy - Willing volunteers who wish to share their thoughts on Cloud computing for a school project
Catch up the next time,
KH
I met up with some entrepreneurs recently and one of the interesting topics that we dwell upon was in regards to the commercialization of the innovation and invention from researchers in universities and institutions. It is not a new phenomenon that many pieces of innovative work gets established and patented but not many are being taken to finish the course, of having it commercialised. In a way it is such a waste as certainly there could be a number of them that could be beneficial to the economic and social well being of a nation.
There are a number of reasons as to why these innovation had stayed at the patent level. Among them are due to the mindset of the researcher that their primary role is just to discover and impart those new found knowledge. They do not see the need beyond that. They may have little exposure to the commercialization aspect of it and how it should be done. Their career path could hinges on the number of patents being registered (and not necessarily commercialised). There are also some who wish to have their innovation commercialise but may faced with certain roadblocks like financing or find the whole commercial aspect of it a task too daunting to handle. Other contributory factors could be due to the research being too much towards a pure research and not applied research. In fact one of the very key success factors is to develop strong linkage between the researchers and industry so that the potential market needs can be better gauge. There are many neat inventions out there but one would wonder how many of them are with real commercial substance, created with real voice (though could be flimsy initially) of the potential customers. Otherwise many of these inventions are purely paper assets and not realised assets.
Researchers (beside those who focuses on pure research which have its own purpose and intent)who have their invention built should endeavour to finish the last 20 meters (of the 100 meters race) to commercialise it, hence realising the benefits of it. To take an invention, beyond prototype to the next stage requires a great need to listen to the Voice Of Potential Customers (VOPC). There are various ways to do that but one need to listen...what is the voice of the potential customers saying?.....what is their pain point?...how painful is it?....is your invention the solution?
Looking Out:
1. Social games developer who wish to learn how to commercialise their development
2. Social philanthropy - Willing volunteers who wish to share their thoughts on Cloud computing for a school project
Catch up the next time,
KH
Friday, June 11, 2010
Planning is a must, Ignore it at a cost
Hi friends,
In this update I wanted to share that in any entrepreneurial endeavour, the matter of Planning is very important. I cannot stress enough of it. This term has been so much talked about whether in classroom lectures or seminars but unless one takes it to heart and have a proper time to plan, such lackness can spell setback for them. Planning, of course covers many aspect of the business from financial to after-sales services. As many as it is, the need to plan is absolutely crucial and it has to be done at the very beginning and review on an on-going basis.
Many entrepreneurs that I know of are so busy with their business activities that they did not pay enough or little attention to planning out their business. As the famous saying goes, if we fail to plan, we plan to fail. How true it is in many cases. There are businesses that I know of, struggle in the early path of their entrepreneurial journey. When they analyse the reason as to why their business is not moving forward (it will be fortunate if it is not at least going backwards) one glaring issue that pops up is lack or no planning. They could have done one at the beginning of their business start-up or they have this mentality that it is enough to just have it in my head. But unless one can lay it out in a documented fashion, those thoughts are not known to anyone, lest so the team.
Without a clearly define and executable business objective, it is even further off to talk about business road map. I strongly encourage entrepreneurs and start-ups to devote sufficient time to think and map out this seemingly basic but most often miss out action item. The time one spent on doing a proper planning for his business activities will not only create a clear road map for himself being a leader but also align the activities of his team to set their mind and attention to the same one goal. And even if there is a misalignment along the way, the road map with its objectives and milestones will help everyone to get back on track. Entrepreneurs know very well that each and every of their resources is precious but limited. Therefore the ability to come up with a good planning and be able to execute it with the support of the entire team will bring about a successful venture. Hence set your focus on the right footing and monitor its actions. Like a compass, it will lead you to the correct direction (at least you are on the path that you wanted to go). Okay, for now I need to spend some time to bring that start-up company back to the planning pathway.
Looking Out:
1. Anyone interested to joining a US MNC as a SCM Manager
2. There is also look out for a Costing Manager
3. Any investor interested in social game start-up company
Have a great weekend,
KH
In this update I wanted to share that in any entrepreneurial endeavour, the matter of Planning is very important. I cannot stress enough of it. This term has been so much talked about whether in classroom lectures or seminars but unless one takes it to heart and have a proper time to plan, such lackness can spell setback for them. Planning, of course covers many aspect of the business from financial to after-sales services. As many as it is, the need to plan is absolutely crucial and it has to be done at the very beginning and review on an on-going basis.
Many entrepreneurs that I know of are so busy with their business activities that they did not pay enough or little attention to planning out their business. As the famous saying goes, if we fail to plan, we plan to fail. How true it is in many cases. There are businesses that I know of, struggle in the early path of their entrepreneurial journey. When they analyse the reason as to why their business is not moving forward (it will be fortunate if it is not at least going backwards) one glaring issue that pops up is lack or no planning. They could have done one at the beginning of their business start-up or they have this mentality that it is enough to just have it in my head. But unless one can lay it out in a documented fashion, those thoughts are not known to anyone, lest so the team.
Without a clearly define and executable business objective, it is even further off to talk about business road map. I strongly encourage entrepreneurs and start-ups to devote sufficient time to think and map out this seemingly basic but most often miss out action item. The time one spent on doing a proper planning for his business activities will not only create a clear road map for himself being a leader but also align the activities of his team to set their mind and attention to the same one goal. And even if there is a misalignment along the way, the road map with its objectives and milestones will help everyone to get back on track. Entrepreneurs know very well that each and every of their resources is precious but limited. Therefore the ability to come up with a good planning and be able to execute it with the support of the entire team will bring about a successful venture. Hence set your focus on the right footing and monitor its actions. Like a compass, it will lead you to the correct direction (at least you are on the path that you wanted to go). Okay, for now I need to spend some time to bring that start-up company back to the planning pathway.
Looking Out:
1. Anyone interested to joining a US MNC as a SCM Manager
2. There is also look out for a Costing Manager
3. Any investor interested in social game start-up company
Have a great weekend,
KH
Thursday, June 3, 2010
You cannot know it all
Hello friends, I created this blog because I wanted to share with like-minded people about what I learn from entrepreneurship. However this is not intended to be a series of lectures and notes that you can get much more comprehensive materials from various sources. Humbly this is only meant to be a sharing of personal learning that I gathered through my readings, observations and experiences. It meant to be brief and hopefully this would also inspire some to venture into something that they believe in or passionate about.....something ventured, something gained...whether in monetary form or life experiences.
As an entrepreneur, one needs to be aware that he cannot know it all. There are just too many roles and functions that needs to be fulfilled. Hence there is a need to have an entrepreneurial team to support the venture. In fact even if one can know it all, it is still not advisable to do them all. The law of comparative advantage tells us that we should focus on doing what we are most efficient at (which logically translate into lower cost for that task, and if we are an entrepreneur, we should be spending time building the business and talking to customers!) and delegate or engage others to those task that we do not have a cost or benefit advantage. Successful entrepreneurs do this very well. As one very successful entrepreneur says, an entrepreneur is like a F1 driver and his primary task is to drive (and drive as well as he possibly could) while leaving the rest of the car and maintenance support to his crew. In this way he increases his winning probability ............to be a champion!
Going forward in each of my blog update I will also be indicating under a header "Looking Out" on some of the opportunities that I come across that may benefit some of you. Have a look at it. Here it goes for this first blog..
Looking Out:
- investor who is interested in bio tech business
- professional marketers in technology equipments
- knowledgeable person who like to exchange thoughts on cutting technology
Catching up the next time
KH
As an entrepreneur, one needs to be aware that he cannot know it all. There are just too many roles and functions that needs to be fulfilled. Hence there is a need to have an entrepreneurial team to support the venture. In fact even if one can know it all, it is still not advisable to do them all. The law of comparative advantage tells us that we should focus on doing what we are most efficient at (which logically translate into lower cost for that task, and if we are an entrepreneur, we should be spending time building the business and talking to customers!) and delegate or engage others to those task that we do not have a cost or benefit advantage. Successful entrepreneurs do this very well. As one very successful entrepreneur says, an entrepreneur is like a F1 driver and his primary task is to drive (and drive as well as he possibly could) while leaving the rest of the car and maintenance support to his crew. In this way he increases his winning probability ............to be a champion!
Going forward in each of my blog update I will also be indicating under a header "Looking Out" on some of the opportunities that I come across that may benefit some of you. Have a look at it. Here it goes for this first blog..
Looking Out:
- investor who is interested in bio tech business
- professional marketers in technology equipments
- knowledgeable person who like to exchange thoughts on cutting technology
Catching up the next time
KH
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