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Learning from Asian business growth deconstructing the business environment Parris Lyew-Ayee Jr: changing the business of innovation
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business innovation: from idea to invention
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ten tips to turn your failing business into a success!
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making writing your business
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meet the katalyxt team
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Learning From Asian Business Growth
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atalyxt had the opportunity to interview Dr Spinder Dhaliwal, a foundation speaker for Katalyxt’s 2012 Business Development Conference. Dhaliwal is a lecturer at the University of Surrey located in London, England and the author of the book Making A Fortune: Learning from the Asian Phenomenon. Katalyxt: Dr Dhaliwal, we note your mantra is “entrepreneurship isn’t a story of rags to riches.” You emphasise hard work and persistence. Why? Spinder Dhaliwal: Many people associate entrepreneurship with money and glamour. In fact, all the successful entrepreneurs I have interviewed work 24 hours a day, seven days a week. They are hands-on and have climbed the ladder with hard work, persistence and determination. They have failed many times and almost lost everything, but were not deterred.
Dr Spinder Dhaliwal
Katalyxt: Your book Making a Fortune chronicles the successes of Asian entrepreneurs. What specifically do you think is the most important lesson that Jamaican innovators can take from the Asian story? SD: Many entrepreneurs within the Asian community serve as role models for business people and entrepreneurs worldwide. The use of informal networks, community and family should resonate with many Caribbean innovators. The ‘hunger in the belly’ and having the vision and strength of character are, in many instances, a result of struggle. How to add value, be creative and innovative and to spot opportunities are also valuable lessons.
and undergirding with critical support that success will be fuelled. Politicians and bankers play a significant role in this process.
Katalyxt: How can Jamaicans or Caribbean nationals use their own native innovators as a blueprint to sketch new successes? SD: You have a beautiful landscape, sufficient labour and there is demand for niche products as well as hospitality. You need to create an entrepreneurial culture where the young and old can see the route to being independent and of creating wealth for themselves and others. The media, education systems and professionals, together provide vital support.
“You need to create an entrepreneurial culture where the young and old can see the route to being independent and of creating wealth for themselves and others.”
Katalyxt: You noted that hard work is an active ingredient for success. Many Jamaicans consider themselves hard-working. How do you suggest we tap into our hidden entrepreneurial potential? SD: Combine working hard with working smart. It is only through generating ideas, backing them with tangible action
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Katalyxt: Making a Fortune highlights the impressive cost conservation techniques employed by Asian entrepreneurs during the economic depression. What are some of these cost cutting strategies that innovators must be aware of? SD: New entrepreneurs often spend money on personal items too early in the game. Be frugal, make sacrifices and spend only when you have money. Be innovative in terms of cost cutting and think things through at every level of the value chain. Use your networks and resources. You can get a lot of free advice, but be discerning.
“Jamaica and the Caribbean have the opportunity to shine and to be the new China or India in the International success story. Too much reliance on tourists is not healthy. The region needs to develop niche products and businesses and use the internet to gain international sales.”
Katalyxt: In your discussions and research on entrepreneurship, how important is start-up capital in transferring idea to invention, especially in developing countries where resources may be limited? SD: It is important, but always limited. Most people rely on personal savings or loans from family and community to start. Internet businesses allow cheap start ups too. However, financial assistance is vital and so you need angel investors, cooperative banks and a supportive government sector. Katalyxt: What are some of the biggest myths and misconceptions about entrepreneurship that have stymied many individuals and how do we effectively confront them? SD: Entrepreneurship is not a get rich quick mechanism. It requires thought, planning and strategy and you grow personally as well as professionally as an individual. It can be the most rewarding experience in the world or the most scary. You can’t ever afford to take your eyes off the business, don’t think you can put your feet up in a few years. Plan the growth of a longterm, sustainable business.
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Katalyxt: What role does efficiency play in entrepreneurship and why is it important? SD: You need to constantly evaluate your costs and margins and look for ways to save, even in good times. Katalyxt: What is your favourite food and why? SD: I love home-cooked Indian food and Chinese food and of course, Caribbean! Katalyxt: Any last comments? Jamaica and the Caribbean have the opportunity to shine and to be the new China or India in the international success story. Too much reliance on tourists is not healthy. The region needs to develop niche products and businesses and use the internet to gain international sales. I am excited to be a part of the experience.
Deconstructing the Business Environment:
Interview with Jay Brennan
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ay Brennan specialises in turning businesses around and has worked with medium-sized and large companies in the manufacturing, bio-chemistry, technology, education and energy sectors.
Jay presented 10 tips to turn failing businesses around at Katalyxt’s inaugural conference. We caught up with him to get his views on business growth and investing in Jamaica. What are the three factors that hinder business growth? • Lack of access to early-stage (angel) capital • Lack of experienced entrepreneurial managers and successful entrepreneurs to lead or encourage new participants • Lack of extensive support mechanisms to teach basic elements and to support and coach startups at the business formation stage. Katalyxt is the solution. How important are low interest rates? I think low rates are most important for the expansion of existing, established companies. I don’t feel they are as relevant to business development. The source of funding for early-
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“The key to a successful company is finding a burning need and opening a solution that customers are willing to pay for.”
stage companies is usually angel funding, not debt. Once the business is formed, low rates are very, very important. How important is venture capital? I believe that Jamaica really needs an early-stage venture capital or angel fund that can invest relatively small amounts of money in early stage deals and provide guidance and coaching to the early companies and entrepreneurs. I believe that knowledge of the market and proximity are very, very important for such a fund to be successful. For this reason, I would not launch such a fund from the US. I might be interested in being involved in a Jamaica-based fund like that, however, depending on who else is involved and what the fund economics would look like. What is your advice to entrepreneurs? Business basics are the same everywhere. The key to a successful company is finding a burning need and opening a solution that customers are willing to pay for. I expect that many opportunities exist to manufacture products in Jamaica that are currently imported, but I do not know for sure. I would look hard in that area.
Parris Lyew-Ayee Jr:
changing the business of innovation
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atalyxt turns the spotlight on Parris Lyew-Ayee, Jr who created ripples in the Jamaican business landscape through the use of technology. Currently the director of the Mona GeoInformatics Institute, the young innovator is responsible for several groundbreaking projects. Dr. Parris Lyew-Ayee, Jr is pictured displaying an MGI-created GPS system, the first of its kind in Jamaica. Katalyxt: What has been your most groundbreaking project to date? Parris Lyew-Ayee: JAMNAV, without a doubt. Not the biggest revenue earner, but JAMNAV served as the gateway for our GIS (geographic information system) and specialised services and made our brand recognisable in the general consumer market. Katalyxt: What motivates you? PL: Fear of failure. Katalyxt: What allows you to be innovative? PL: Insanity. Katalyxt: Why should more Jamaicans embark on innovation and entrepreneurship? PL: Innovation and entrepreneurship lead to exciting opportunities for young people with bright ideas that have depth and substance, to survive rigorous scrutiny and meaningful and constructive dissection. But we need to understand that a cool new idea does not necessar-
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Dr Parris Lyew Jr is pictured displaying a GeoInformaticscreated GPS system., the first of its kind in Jamaica.
ily lend itself to a good business idea and that every entrepreneurship endeavour carries risk. But, the rewards are great. Katalyxt: How can we improve the quality of life in Jamaica using innovation? PL: Stop running away. Be inspired by the systems and technologies of developed countries. Try retro-fitting first world technologies to our situations – question how they can be applied here, not just copied and pasted. But first, understand the fundamentals of what Jamaica needs to improve the quality of life, not what people feel we need to do to improve our quality of life. Who says that quality of life improvements have to directly emanate from external innovation? Why can’t a local innovation be of global significance and lead to further opportunities for Jamaicans? Katalyxt: Mona GeoInformatics Institute has done sensational work both in academia and in terms of developing invaluable commercial products. How difficult has it been
for you, as director, to successfully utilise research to generate profit? PL: I’ve been extremely fortunate to have been given an opportunity to do what I have done, having never worked before and with only a graduate student’s academic résumé. But the thenprincipal, Professor Kenneth Hall, took a chance with me and allowed me to have the opportunity to fuse research techniques into applied situations of national and regional importance. It was then just a matter of my willingness to learn and collaborate with others and willingness to take chances. While my primary research was on limestone, it was the methods and techniques that I used and developed that were the main stars. Building the right team was important, facilitating the rolling out of products and services to clients and keeping them happy. Developing close partnerships and support has been important, especially from subsequent principals, but also from the private sector, especially Jamaica National Building Society.
Katalyxt: What are the core principles that every budding innovator must have to be both successful and impactful in the business arena? PL: A willingness to learn from others and that no matter what they think or believe, they don’t know it all. This is about having the right attitude. Through collaboration, much can be achieved. Katalyxt: Where do you see Mona GeoInformatics five years from now? PL: Continuing to grow and gearing up to celebrate 12 years, doing what we do - a full 33.3 per cent of my life! Mona GeoInformatics can achieve a higher level of sustainability and brand awareness. I prefer to surprise people rather than to disappoint and it’s getting harder to surprise the markets when they expect big things from MGI. We have to keep growing and staying ahead of the game. I want to grow the company overseas and make a difference in other
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places. We’re an information company and there’s no reason we can’t do what we do elsewhere, especially if we help other companies to improve their own products and services using our own experiences and abilities. Katalyxt: What were some of the challenges you have faced in business development and how have you been able to overcome? PL: The biggest problem has been the identification of human resources. Every organisation should have the right mix of talent and personality to fit in a high-paced and highly kinetic innovation company. There have been many false prophets and disappointments. We’ve overcome through perseverance and focusing on the main objectives of the company and not on individuals. For my part, it’s being reminded that I’m responsible for 30 people directly, but also that there is so much expected of us, that I cannot afford to fail.
Katalyxt: What do you see as the government’s role in stimulating innovation? PL: Governments need to support innovation through entrepreneurship programmes that provide capital support and mentorship, as well as tax breaks and incentives, not just for innovators as individuals, but for companies and organisations, start-ups or established firms, who endeavour to undertake innovations. But that’s it - governments need to know when to step back and let the markets decide in an almost Darwinian manner which innovations survive. Katalyxt: What are your secrets for time management? PL: Rewind or ignore my watch. Katalyxt: Red wine or white, or neither? PL: Kola champagne.
Business Innovation: From Idea to Invention
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e often hear about million-dollar ideas, which could represent the next ‘mega revenue earner’ business venture, but rarely do we see that necessary transition from idea to invention. This is because success depends on several factors, both internal and external to the entrepreneur: availability of capital, creativity, discipline and a market for the product(s). These are some of the well-established factors impacting growth and success. Teenage innovator In 2007, American teenager Lindsay Phillips created a fashionable innovation, placing her mark on a multibillion dollar shoe industry. Lindsay, decided at age 16, while embarking on an art project, to modify her footwear. Rather than purchasing numerous flip-flops in varying colours and styles, she felt it was better to make the straps switchable. The idea was simple but effective. She detached the strap from one pair of her shoes and substituted it for a strap of a different colour, with the end result of a new, wearable flipflop. Voilà! Lindsay is now 25 years old and the ‘switch-flop’ project grosses revenue intakes of US$30 million annually. This is a perfect example of idea to invention. Bringing perspective home Bronson McDonald is a Jamaican entrepreneur who decided to recycle food waste into a renewable and reusable product. Bronson determined that waste
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created from agro-processing leftovers (a by-product of manufacturing and packaging) could be put to better use. He felt that the ackee skin and the callaloo stems were not trash but cash. Bronson used the waste product to create clean, healthy and top-quality soil conditioner compost. This soil compost would eliminate the additional cost of disposing of the agro-processing waste and eliminate the need to purchase soil manure. He would, as we say, kill two birds with one stone. An efficient and innovative response! Road Map to Success We now see that innovation isn’t some high-mined concept, escaping the average business owner or entrepreneur. Age is not important, as 16 year old Lindsay proves. Certainly, it doesn’t take millions of dollars, as Bronson’s story depicts. It only takes an idea followed by action. However, action requires planning and innovation, and from idea, we move to planning and thereafter execution. Katalyxt Jamaica wishes to explore opportunities with entrepreneurs to help your business transition from idea to invention. We are ready to get your business plan on the road. All we require is for you to turn the keys of innovation and we’ll start up the engines of action!
Jay Brennan’s 10 tips to turn your failing business into a success!
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Bad news first. This will enable the entrepreneur to address the problem in an effective manner. You are also prepared for the worst.
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Nothing is more important than your attitude. Plan to win. The right attitude will tell you that you can succeed despite the odds. To make your business successful, no matter the predicament, walk into any situation with the best positive attitude.
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Get outside help now. Find resources to help manage and rescue your business, including Katalyxt.
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You live or die by your weekly cash flow forecast. Your weekly cash flow records help diagnose the real issues for your company. Keep them up to date.
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Cut costs quickly, deeply and intelligently. Try not to be emotional. Staff will appreciate efforts to be efficient if the process is managed properly. Look for the most efficient ways to ensure that the best avenue of cost-cutting is taken.
Simplify, simplify, simplify. Look for the path of least resistance when integrating systems and planning operations.
Always treat people fairly and with respect: Your customers, your staff, your competitors, your community.
Always pay vendors on time. Developing a relationship based on trust with your vendors allows you to have more room to negotiate the best rates and special agreements.
When things are bad, negotiate the best deals. Negotiate with your vendors, customers, staff. Markets depend on all players and, as such, if you are in a bind, working on payment plans or arrangements including barter are an option. Explore your options. Â
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Don’t allow attorneys to make business decisions. Lawyers are essential for covering your liabilities. However, they do not know your business better that you do. Trust your own instincts for key business decisions.
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Making Writing Your Business
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inding a career path that you love and can also make a business out of is the ideal situation. Many writers have never been able to harmonise the two factors. Over the years, many have had to struggle to balance writing with a full schedule. There are many determinants of just how profitable one can be in the writing industry. Genre There are several genres available for a writer to consider. Creative genres include pure fiction (novels, poetry and drama) and non-fiction (auto-biography, biography, opinion writing and journalistic reporting). The secret is choosing a genre that ignites your passion and is suitable for your writing style. Some critics say the genre chooses you. Not all genres yield the same economic return. A look at the Kindle Top 100 book sales for 2011 will reveal the marketability of adult fiction, which can generate millions in sales. Adult fiction generated US$148.9 million as compared with children’s fiction, which reported revenue intakes of a much smaller US$59.7 million.
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A non-fiction or children’s best-seller is rare. Publishing Good quality work will often be accepted by established publishers. We note, however, that James Joyce’s groundbreaking work Ulysses was refused by more than 20 publishers. When finally accepted, this work went on to change the course of the novel. Writers can opt for publication via Internet platforms (blogs and social media channels) or by tapping into personal networks for crowd funding. Skills intact Writers must always explore pathways to improve technical skills. To do this, writers should study the work of experts. They must seek out editors to review their work. Practice makes perfect. Market place Finally, writers need to determine their target reader/market. Whatever your market, children, adults, teens, seniors, genderspecific or career-specific, a writer should explore the demand for his/her work.
Meet the Katalyxt Team
Mariame McIntosh Fay McIntosh
Winsome Minott
Dalma James
Dalma, core team member of Katalyxt, chartered accountant and CEO of Dalma James and Associates, is the immediate past president of the Small Business Association of Jamaica and former director of the National Development Foundation of Jamaica. Motto: Whatever the mind conceives, you can achieve. Principles valued most in business: Honesty Role of Katalyxt: Developing entrepreneurship and good business practices Choice of wine: Red Advice to young entrepreneurs: Don’t be afraid to think outside the box.
Fay McIntosh
Fay, core team member of Katalyxt and is the former chief financial officer of GraceKennedy Limited. Fay serves as Katalyxt’s financial guru. Motto: Do good to others. Don’t sweat the small stuff; focus on things that are meaningful. Principles valued most in Business: Honesty, integrity and trust. Role of Katalyxt: Helping entrepreneurs to fulfill their true potential Choice of wine: Red Advice to young entrepreneurs: Believe in yourself and your dreams. If at first you don’t succeed, try again.
Pat McIntosh
Patrick, core team member of Katalyxt, is former CEO of WINDALCO and former president of the Jamaica Urban Transit Company (JUTC) and serves as Katalyxt’s resident operations and systems expert. Life principle: Helping others Principle valued most in business: Integrity Role of Katalyxt: Taking on board young entrepreneurs and helping to facilitate their development into successful entrepreneurs. Choice of wine: Red
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Bruce Scott
Advice to young entrepreneurs: Have a positive attitude in whatever you are doing. Act with honesty and consider any stumbling block a stepping stone.
Mariame McIntosh
Mariame is a Senior Vice President at Portland Private Equity, a US$225 million Caribbean-focused private equity fund, where she leads the Fund’s due diligence and portfolio monitoring activities. Prior to joining Portland, Mariame was a strategy consultant for eight years at McKinsey & Company and Bain & Company where she advised CEOs and their management teams on growth strategy and operations. Mariame is Katalyxt’s resident specialist in raising business capital. Motto: Life is a journey, not a destination. Principles valued most in business: Honesty, integrity and hard work Role of Katalyxt: Encouraging more entrepreneurs to see their full potential and helping them to find the capital to see them grow. Choice of wine: Red Advice to young entrepreneurs: Think through your business plan and spend time doing so upfront.
Winsome Minott
CEO of Mint Management and Finance Services Ltd and a chartered accountant by profession, Winsome has been involved in small business development for over 20 years. She is the team leader and founder of Katalyxt. Motto: ‘Plant more grass’ and ‘someone bigger is in charge’. Principles valued most in business: Honesty, speed, accessibility, accountability Role of Katalyxt: It is sure to enhance business growth and success. Choice of Wine: White Advice to young entrepreneurs: Prepare your mind, action your plan, do the work and pray!
Dalma James
Parris Lyew-Ayee Stefanie Thomas Ramon Pitter
Bruce Scott
Bruce Scott is the partner in charge of PricewaterhouseCoopers (PwC), Jamaica’s enterprise risk management and internal audit service provider. He has been involved in risk management since 1993 and has led the development of a dynamic practice area in the firm. Motto: God first, everything else after. Principles valued most in business: Exceeding the customers’ expectations Role of Katalyxt: Helping businesses grow and become stronger by providing support, which will ultimately help the country’s economy. Choice of wine: Does not drink alcohol Advice to young entrepreneurs: Always do your weekly or monthly cash forecast and listen to your numbers. If there is no cash, there is no business model.
Ramon Pitter
Ramon is currently head of the mergers and acquisitions department for NCB Jamaica. Ramon brings to the Katalyxt team skills in negotiation and financial strategy management. Motto: Shisu, which is a Nordic term loosely translated as ‘perseverance and determination in the face of adversity’. Principles valued most in business: Integrity Role of Katalyxt: Katalyxt can help fuel entrepreneurial spirit in Jamaica. Choice of wine: I prefer beer, but if I had to choose, I would choose white wine. Advice to young entrepreneurs: To think big. Too many people eliminate their good ideas because it seems daunting or difficult. Don’t limit yourself. Move small, but think big.
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Stefanie Thomas
The Katalyxt team’s coordinator, Stefanie is a business development consultant with Mint Management and Finance Services Ltd and director of Artistic Expressions Ltd. Motto: Success requires motivation, faith, hard work and energy. Principles valued most in business: Transparency. Role of Katalyxt: Katalyxt can increase the level of successful entrepreneurial energy in Jamaica. Choice of wine: Red wine when it’s chilly. White wine when it’s hot. Advice: Persevere
Rosina Casserly
Rosina represents Parris Lyew-Ayee, Jr and the Mona GeoInformatics Institute on Katalyxt’s team and has been instrumental in the development of Katalyxt’s new logo. Rosina is a brand development and design consultant, special projects coordinator at MGI, yoga teacher, academic and media personality. Motto: Know thyself. Principles valued most in business: Straightforwardness, intelligence, a commitment to saying current, dynamism Role of Katalyxt: Jamaica has all kinds of encouragement for business and entrepreneurship, but relatively little in the way of real support to realize these intentions. Katalyxt is a pillar of substantive support for emerging business. Choice of wine: Emphatically, white. Advice: Develop your own brand. Know what you are about and be open to being changed. Be in love with and passionate about your business. Don’t be afraid to fail - just do it.
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