Entrepreneur Insight September 2018 by PropertyInsight

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SEPTEMBER 2018 SEPTEMBER 2018

LAW OF ATTRACTION: 3 SIMPLE STEPS REFRAMING THE WORLD WE LIVE IN

DATOâ&#x20AC;&#x2122; CALVIN KHIU NURTURING OUTSTANDING ENTREPRENEURS

5 OCTOBER 2018 THE 100 MOST INFLUENTIAL YOUNG ENTREPRENEURS (#100 MIYE) acknowledges bold, creative and innovative young Malaysian entrepreneurs below age of 45, who set the standards of Malaysiaâ&#x20AC;&#x2122;s enterprising spirit. If you are one of these outstanding personalities who run incredible ventures, we want to honour you at The 100 MIYE 2018 Gala Dinner with the publication of our book.

Nominate yourself or the deserving someone you know:

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For enquiries & sponsorships:

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Presented by

contents

Nurturing Outstanding Entrepreneurs

Comprehensive Branding For Businesses

Market Expansion Beyond Borders

Pioneering The Multigrain Health Beverage Segment

Reframing The World We Live In

5 Customer Retention Strategies For E-commerce That Will Boost Sales

Impact Of SST On Businesses

Law Of Attraction: 3 Simple Steps

Strategise For Success

Basic Rules To Follow Before You Start Branding Your Business

11 Tips For Growing A Successful Business

Move Away From Common HR Practice To Foster Innovation

ASIA HALAL BRAND

AWARDS

1ST HALAL AWARD IN ASIA

FOR ENQUIRIES & SPONSORSHIP

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EDITORIAL

Planning Beyond Half-Time

Publisher/Editor-In-Chief Dato’ KK Chua kkchua@propertyinsight.com.my Editor Yvonne Yoong yvonneyoong@propertyinsight.com.my

Associate Editor

Jeff Tan editor@entrepreneurinsight.com.my

CREATIVE

Senior Designer Megat Khuzamir

BUSINESS DEVELOPMENT Sales & marketing enquiries support@propertyinsight.com.my +6012 3788 683

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On The Cover

DATO’ CALVIN KHIU

In sports, half-time refers to the precious interval period between matches that are played in two halves of the team sports. This expression applies to the intermediate span of time when players can rest and recuperate for a short period before playing on the field again. It is also the time for them to reflect and restrategise with the team’s coach on the battleplan for the game ahead in order to play better against the competition. Half-time is also the short duration during which time spectators can take a break from the excitement of the game and indulge in the entertainment provided during the brief recess. It is during this time that astute sponsors would capitalise on promoting their brand via creative and imaginative means. In life - as in sports and business, entrepreneurs can also capitalise on this brief period of time to celebrate their achievements and accomplishments while also taking time to also more importantly, strategise on their gameplan moving forward. It is in this spirit of reflection that half-time could also be that period or span in time when businesses reach their threshold of mid-way achievements. Moving steadily away from the early years of their maiden journey of first being established, to climbing ahead to the middle level of reaping in the fruits of their successful accomplishments - this is the crucial time to restrategise on how to take their businesses to the next level - moving from good to great. Speaking of celebrating accomplishments, Oct 5, 2018 - being just a month away - will see Armani Media Group’s 100 Most Influential Young Entrepreneurs (100MIYE) award being held for the third consecutive year as a recognition given to young business owners for their spirit of innovation and creativity in steering their businesses from ground zero upwards. In a sense, given that the awards has taken root - the 100MIYE - as much as it is a tribute to recognise personal achievements - is not only a time for celebration - but also one of reflection as young entrepreneurs ponder the journey ahead for their businesses and what the next steps are to take the level of success from good to great. As success can be measured in terms of how the glass can be deemed as being half full - with more to be achieved, this goal of filling one’s cup to the fullest and brimming over can be attained with proper measures put in place post half-time. Therefore, half-time remains a great time to consolidate efforts and work towards achieving greater accomplishments. On this note, we wish all our readers a great read till the next issue. YVONNE YOONG EDITOR ENTREPRENEUR INSIGHT

OE Business School Founder and Chief Lecturer

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Although every reasonable care has been taken to ensure the accuracy of the information contained in this publication, neither the publisher, editors, writers nor employees or agents can be held liable for any errors, inaccuracies and/or omissions. The contents of this publication do not constitute investment advice. It is intended only to inform and illustrate. No reader should act on any information contained in this publication without first seeking appropriate professional advice that takes into account their personal circumstances. We shall not be responsible for any loss or damage, whether directly or indirectly, incidentally or consequently arising from or in connection with the contents of this publication and shall not accept any liability in relation thereto. The views by our contributors expressed here are their personal opinions and do not necessarily reflect Property Insight’s views. The publisher does not endorse any company, organisation, person, investment strategy or technique mentioned in this publication unless expressedly stated otherwise. The publisher does not endorse any advertisements or special advertising features in this publication, nor does the publisher endorse any advertiser(s) or their products/services unless expressedly stated to the contrary. All rights reserved. No part of this publication may be reproduced in any form or by any means, including photocopying and imaging without the prior written permission of the publisher.

SEPTEMBER 2018

news & events CTOS Launches Cutting Edge Decisioning Solution CTOS Data Systems Sdn Bhd (CTOS), Malaysia’s largest credit reporting agency, recently introduced the CTOS Application and Decisioning - a digital solution which brings immediate and accurate application and decisioning capabilities to drive exceptional customer experience. CTOS Application and Decisioning allows businesses to balance human interaction with automation - thereby improving turnaround time whilst maintaining a personal touch for customers. Its ability to integrate into the front end of third party systems enables the CTOS Application and Decisioning to greatly improve the customer experience with minimal impact to legacy customers or the existing system. The digital solution eliminates redundant manual processes and increases cost efficiencies to any organisation offering credit.

Present at the launch were Credisense Limited CEO Sean Hywood, Director Richard Brooks, CTOS CEO Eric Chin as well as Chief Product and Marketing Officer Keith Wardell.

Tune Talk MINI Cooper Giveaway & BMW Malaysia & FLYPROJECT Create Awareness on Visionary and Merdeka Campaign Launch Sustainable Mobility In line with one of the company’s DNA which is skewed towards being lifestyle-oriented, Tune Talk has launched the MINI MINEY MOE giveaway campaign in mid-July 2017. To qualify for the giveaway, Tune Talk subscribers would only have to purchase any +VIBE data plans within the campaign period and remain active on their respective data plans till the date of the draw. From the thousands of entries, Tay Yi Jing was the chosen winner for the MINI Cooper while another four brought home attractive consolation prizes. In conjunction with Tune Talk’s 9th anniversary and the national month, starting from 20 August to Hari Malaysia on 16 September, the company is giving out more data on top of its current 30/30 campaign. Users who sign up or port in within this period will get an additional 31GB. In addition to this, they get to enjoy 36GB of data for the first month as a Tune Talker and a total of 61GB data throughout the campaign period.

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BMW Malaysia and FLYPROJECT recently organised the country’s largest outdoor FlyCycle class at The Square, Publika in Kuala Lumpur. This event was organised as part of the premium automaker’s commitment in creating awareness on Visionary Mobility and Electro Mobility. The one-of-a-kind event which included FlyCycle and FlyFight classes drew a turnout of close to 100 participants. All the slots were snatched up by members of the public within 12 hours of registration. The FlyCycle class was led by FLYPROJECT star trainers Syed Harris Umar, Isabelle Wong and Swarna Naidu. Joining the adrenaline-pumped workout were renowned lifestyle personalities Nurulain Edruce, Chloe Chen, Yvonne Lee, Karen Kho, Megan Tan, Michelle Lee, Grace Choong, Talitha Tan, Nelissa Nezam and Loreal Mok.

AUGUST STORE: Bringing You The Australian Fashion Scene August Store, an all Australian label concept store, starting with merely four brands in Bangsar Shopping Centre, Kuala Lumpur has now expanded to carrying a total of 20 Aussie brands and has relocated to a much bigger space in Bangsar Village 2, Kuala Lumpur. Unlike fast-fashion retails, August Store believes in sustainable clothing. And, more than just a retail outlet, the store is more of a dress-up wonderland. Upon receiving great response from the Malaysian market, August Store will also be opening its first concession store with Robinsons Four Seasons in September.

KSK Land Co-Curates The “Confluential” Photography Exhibition KSK Land Sdn Bhd, developer of 8 Conlay has teamed up with award-winning Malaysian photographer Kenny Loh to co-curate a photography exhibition themed “Confluential - A Photo Essay of Kuala Lumpur”. The exhibition will be held from 17 August to 16 September 2018 at the luxurious 8 Conlay sales gallery, Bangunan KSK, 32, Jalan Yap Ah Shak, Kuala Lumpur - from 10:00am to 5:00pm daily. It will exhibit a total of 26 images captured through the lens of Kenny Loh, depicting life stories from diverse individuals living, working and playing in Kuala Lumpur.

Sarawak Government Assures Commitment In Supporting Business Events The government of Sarawak will enhance the state’s social infrastructures and facilities to support the growth of business events (meetings, incentives, conferences, incentives) sector.

Sarawak Chief Minister Datuk Patinggi Abang Johari Tun Openg reiterates that business events are important components to not only promote but also develop Sarawak as a destination in its entirety. “The government has invested a lot of funds to upgrade the state’s facilities in order to provide accommodations, event venues and recreational facilities to promote Sarawak as a destination for business events,” says Abang Johari at a press conference after the ninth Anak Sarawak Awards. The awards was held in conjunction with Sarawak’s first Business Events conference, the Business Events Tribal Meet (TriBE 2018) held on 24th August. An initiative of Sarawak Convention Bureau, TriBE 2018 drew 300 selected business events experts from national associations, sector partners, global and national media as well as government officials.

SEPTEMBER 2018

cover story

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Nurturing Outstanding Entrerpreneurs

It takes guidance, support and mentoring for a business owner to become an outstanding entrepreneur.

BY JEFF TAN

It takes guidance, support and mentoring for a business owner to become an outstanding entrepreneur. This is the help which OE Business School Founder and Chief Lecturer Dato’ Calvin Khiu has been trying to give to young and budding entrepreneurs in the past two years. He shares on the role and offerings of the business school with Entrepreneur Insight. The most important requirement to be an outstanding entrepreneur is to have a clear purpose and positioning, says Khiu who established OE Business School in October 2016. “Many aspiring entrepreneurs are unclear of their own positioning and what they want to achieve in their business,” he adds. Khiu was inspired to set up the business school by his own experience of starting a business, which was faced with various challenges. “For the past 13 years in my entrepreneurial journey, I have suffered and wandered down some wrong paths in business.

SEPTEMBER 2018

cover story

I established OE Business School to help SME entrepreneurs avoid making the wrong decisions which lead them down the wrong tracks in business, so that their precious time will not be wasted.

“Second is to give talks to at least 2,000 young entrepreneurs every year. Through the talks, we will leverage on our experience to influence and affect them, thus increasing their confidence, as well as igniting their passion on life, career and family.” “The third principle is to invest in young entrepreneurs with dreams. In the future, this world belongs to the younger generation,” he elaborates. Hence, Khiu plans to collaborate with other entrepreneurs to establish an investment fund. The purpose of the fund is to build closer ties with the younger generation, as well as nurturing those who are willing to become outstanding young entrepreneurs, he states.

Informational and Practical Courses OE Business School’s purpose is to influence four types of people. Khiu says that the first type is those who are hardworking but with no experience in the market and do not know how to create their own values. “Second is those with experience in the market but with no management experience. Many entrepreneurs with market experience know how to gain profits but do not know how to be prudent and keep the main bulk of their profits. They also lack knowledge on how to manage their team.” “The third type is people with management experience but no experience in the market. They possess management skills but do not know how to generate sales and hit sales target.” The fourth type is those with management skills and market experience, but do not have their own team, he says. OE Business School helps entrepreneurs gain business knowledge that they can apply on-the-ground in the shortest time possible, states Khiu. To ensure its reach and impact, the business school is run based on three principles. “The first principle is to train and assist more young entrepreneurs to respect human nature and implement a scientific management model to their business. We also guide them to carry out 12 main steps towards becoming an outstanding entrepreneur.

Speaking on courses offered by OE Business School, he says that there are a series of five courses. “First of all, we have the OE for Entrepreneurship course which trains entrepreneurs to have right mode of thinking to unleash their enterprise’s potential. “In some cases, entrepreneurs feel confused when doing business because they are unable to have clear thinking. This course helps them to rediscover their mode of thinking and a direction for their business. “Second is the OE for Top Management. With the right mode of thinking, an entrepreneur will then need to build a management team to run business operations and face challenges together.” The course is also suitable for employees from the management level, where they will be taught to understand their company’s needs better, be considerate to colleagues and take on responisbilities, he adds. The following course is OE for Business Model, he says. “After establishing a management team, entrepreneurs are required to learn how to form business partnerships, secure financing, and run capital operation.” The next course is OE for Entrepreneurship II, which emphasises on strategy thinking. “Strategy thinking explores on ways to gain profits, branding and creating values for one’s enterprise,” states Khiu.

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SEPTEMBER 2018

cover story

He says that the last course which is also considered a “trump card” for entrepreneurs, is the OE for CEO.

Khiu’s role as OE Business School’s Chief Lecturer is to help young entrepreneurs find inspiration and a direction for their business.

“CEOs should only be doing two things – make decisions and give presentations or talks. The OE for CEO course trains entrepreneur in public speaking, including how to draw attention from the audience.

“When young entrepreneurs clearly know what their next step will be, each step they take will be practical and brings strong impact.

“All successful CEOs are capable of standing on a stage to share their brand and enterprise story,” he says.

Once entrepreneurs get their thoughts right, they will have the right strategy which will deliver the expected results, he explains.

According to Khiu, OE Business School is just like a second home to entrepreneurs. Available courses provided by the business school are practical, easy to learn and applicable on-the-ground.

Khiu leads by example to train young entrepreneurs who attend his courses in terms of leadership.

The business school is also different from other entrepreneur training schools, as most of its course participants are from the younger generation (below the age of 45). “We are the first in Asia to develop the ‘12 Steps to Become an Outstanding Entrepreneur’ system. By using this system, I believe entrepreneurs will avoid making wrong decisions because we have used more than 10 years investing money to learn relevant knowledge and improve the system.”

“As a lecturer, it is very important to walk the talk on what you mentioned on stage, not saying one thing and do another.” He always advises young entrepreneurs to not evade challenges, because it will never solve problems. “Nothing is more frightening than death, so when trying to overcome a challenge, we should take the opportunity to learn and ask for guidance from seasoned entrepreneurs, as well as seek inspiration from fellow entrepreneurs of other industries.

I notice our courses give participants inspiration in terms of their mode of thinking, which we are proud of. The biggest difference between a successful person and someone mediocre is not money or power, but it is their thoughts, he asserts. 10

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“There is no such thing as a problem with no solution. In fact, there are only people who does not know how to solve the problem,” he quips. Touching on the values required for a young entrepreneur to become an outstanding entrepreneur, Khiu says that it depends on each individual entrepreneur’s definition. “Each entrepreneur holds on to their own set of values. If being thankful is an important value to you and hope that people will be thankful to you, then you must first learn to be thankful to others. “The same concept applies to other values, such as integrity and being positive,” he asserts. He states that budding and young entrepreneurs will place their business on the right track to achieve success by practicing the set of values that they believe in. Khiu has laid down targets for OE Business School in the next five years. “We want to influence at least 10,000 SME entrepreneurs to earn their trust and assist them to achieve double growth or more in their business.”

Khiu is also Founder and Group Managing Director of MK Curtain. He started his curtain business under the company, CK Textile, with liabilities in 2005. He grew MK Curtain to be the leading business in Malaysia’s curtain industry with more than 20 outlets throughout the nation. The company creates a quality and contemporary lifestyle for everyone by providing one-stop service, selling and customising curtains, blinds, wallpapers, cushions, carpets and other home accessories. Khiu has won many recognitions, such as the 2013 Ten Outstanding Young Malaysian Award, EY Emerging Entrepreneur of The Year 2014, and JCI 2014 Creative Young Entrepreneur Award.

SEPTEMBER 2018

entrepreneur of the month

PIONEERING THE MULTIGRAIN HEALTH BEVERAGE SEGMENT BY JEFF TAN Successful entrepreneurs have their own different characteristics, but one common trait they share is the “never give up” attitude. Paired with his goal to always be the best, GoodMorning Global Sdn Bhd Founder and CEO Dato’ Dr. Lim Sin Boon has grown GoodMorning to become the leading multigrain beverage brand in Malaysia. Coming from a less well-off family from Kluang, Johor, Lim has always felt it is important to be insured as a preparation for the unexpected, such as cases of emergency where a significant sum of money is needed. He extended this mentality into his career when entering the life insurance industry in 1988. Banking on a strong desire for success, Lim became the star of the industry. His yearly income exceeded a million ringgit in 1991 and he broke many records in the insurance sector in 1993. However, when the insurance company was affected by a merger and acquisition in 2002, him left the industry. “In my opinion, successful entrepreneurs make decision in a short time, but it takes time for them to give up on something. In contrast, those who fails takes a long time to come to a decision but gives up quickly. If one sticks to his or her standpoint and keeps trying, they will not fail,” he states. After leaving the life insurance industry, Lim invested in the construction industry and had a major slip-up. “I was invited by a few of my friends to take part in the construction investment and it was led by them. In the end, I suffered a loss of approximately RM3 million. “Failure in the construction industry doesn’t mean that I will fail in other field of business. I had ventured into the wrong industry,” he says.

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At that time, he still has the determination to pursue his dream of achieving success. He stresses that even after major setbacks, we should not change our goal but should do a post-mortem and apply a different method instead. To start afresh in his entrepreneurial journey, Lim knew he had to pick an industry with high sustainability. After sourcing ideas and

gaining knowledge from books and magazines, he realised that humans need food to sustain life but most of us lack balanced nutrition intake from our daily diet. “I started ‘experimenting’ on myself by taking supplements and saw good results after a few years. Compared to my friends and former schoolmates, my skin complexion was better, and I looked more energetic.” Wanting to share the benefits of consuming health products, Lim knows he must become the centre of influence to raise awareness on this matter throughout the country. With this simple purpose in mind, he established GoodMorning Global on 1 July 2008. “I was already 39 at that moment of deciding to enter the health products industry, which I was unfamiliar with. I had to be sure it is a worthy venture as there is considerable risk in my decision. “Eventually, there were some challenges in the early phase of my health beverage business, but I remain committed to my purpose. This was because I had a clear direction, which is to produce products that will not become obsolete in the market,” he asserts. GoodMorning Global is a pioneer in the health beverage segment

of Malaysia as it is the first to introduce a multigrain health beverage – VPlus – in the market on 11 August 2012. Before his company introduced VPlus, there were only singlegrain beverage products such as oat and barley in the market, but these products had less nutrients and more ordinary taste compared to multigrain beverage, opines Lim. “I hired a research team from the United States to find out which mixture of grains will provide all the nutrients a person needs in a meal. They came out with a formula – 18 types of premium whole grains with five colours of phytonutrients – which led to the birth of VPlus. “Our first product gives consumers the convenience of enjoying a healthy drink which ensures they have nutritional balance.” However, Lim and his team faced a setback upon the completion of VPlus’s first batch of production. “The beverage had an awful taste of raw grains and I knew the product will not sell good in the market. “I had a discussion with the R&D team to seek a natural method to make our product taste better. The solution was to apply a popping process before making the mixture of whole grains into powder form, which worked well.”

SEPTEMBER 2018

entrepreneur of the month After overcoming the first challenge, Lim’s next move was to explore sales channels for his company’s first product. “As we didn’t have budget for advertising, so we approached coffee shops and independent pharmacies to promote and push our products to them. “My selling point to the coffee shops was for their customers to have an option of a healthy drink. We subsequently received encouraging feedback where the customers liked the taste of our multigrain beverage.” As GoodMorning Global product’s sales performance kept improving, many competitors began to emerge in 2015. “Among these competitors were seven companies established by a number of my previous sales employees. They manufactured multigrain or whole grain health beverages by ‘copying’ the idea from our brand,” he says. Nevertheless, Lim wasn’t angered by the situation. “There will always be competitors who copy your ideas. The best countermeasure is to put in more effort and perform better than them.” Under Lim’s leadership, GoodMorning Global has expanded overseas to Brunei and Singapore, and will penetrate the Indonesia market in October this year.

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Encouraged by its fast-growing business scale, GoodMorning Global is now preparing for listing. Part of the preparations include appointing Providence Strategic Partners to conduct an independent market research. “We are proud with the result which shows that GoodMorning is the No.1 multigrain beverage brand in Malaysia with a 58.7 per cent market share last year,” quips Lim. As GoodMorning Global is on a steady growth track, Lim always urge his employees to perform their best to grab career advancement opportunities within the company. He also leads by example to have positive influence on his employees, such as joining them in sales activities and marketing campaigns. Yet, Lim has had a bad experience in handling employees which he admits of being his biggest mistake to date since the founding of GoodMorning Global. “The Chinese idiom – an employer should not suspect one he or she employs, and not employ one who is suspected – has worked against me at times. There was a period where a substantial number of top performing salespersons secretly pocketing cash payments made by customers. “It had a huge negative impact on my business as I was paying them

high commission based on my profit-sharing module. Furthermore, some of these salespersons joined my competitors and took away my market share among independent pharmacies and herb stores. However, he turned the crisis into an opportunity to switch from a direct sales business model to a distribution and wholesaling model.” The biggest turning point came when Lim was invited by Melody FM’s Morning Boss programme to share his experience as an entrepreneur. “Caring Pharmacy Managing Director Mr Chong was listening to the programme and contacted me through his employee to offer me the opportunity of supplying GoodMorning products to Caring’s branches. “After two to three months, an AC Nielsen report indicated that GoodMorning products are among the best-selling items in Caring Pharmacy branches. This helped my products to open wholesale channels to other retail chain stores and hypermarkets.” According to Lim, a genuine entrepreneur is different from a businessman who focuses more on making profit. In his opinion, entrepreneurs should have the vision of creating value for their customers. “Whether a person succeeds or not depends on his or her attitude. “As an entrepreneur in the health beverage segment, my

enterprise creates value by manufacturing healthy products that can be consumed conveniently. After the success of VPlus, I invested in the R&D for another health product – VGrains – which has seven unique ingredients that helps to prevent or slow down eye degradation from the overuse of smartphone.” Seeing the health benefits, Lim increased the production volume of GoodMorning products and controlled costs to lower the selling price as a way of giving back to customers. “We rely on sales volume to cover our costs and generate enough profits for promotional activities,” he explains. From 2012 till now, Lim has been sponsoring free grains drinks to more than one million primary school students, educating them to raise the awareness of “eating the right food from young”. “Health education takes time and being the pioneer in the health beverage industry, this is part of our corporate social responsibility. I have always hold on to my principal to give and share with the community,” he says. Giving his advice to budding young entrepreneurs, Lim stresses that those who take taking shortcuts are bound to fail. “They should have a good purpose and take it one step at a time because there are no shortcuts towards success,” he concludes.

SEPTEMBER 2018

main feature

BY JEFF TAN The Sales and Service Tax (SST), which replaces the Goods and Services Tax (GST) has commenced on 1 September 2018. The SST is a single-stage tax system whereas the GST is a multistage tax system. Hence SST seen as a milder form of taxation compared to the GST which is expected to have less impact on businesses. For example, in a news report, Finance Minister Lim Guan Eng cited that GST covers 60% of the Consumer Price Index (CPI) Basket of Goods whereas SST only involves 38% of the goods. When the GST was implemented, only 545 items were exempt. With the SST, 5,443 items are exempt, which is nearly 10 times the amount compared to GST. However, Lim said that the government will review the list of goods under the SST and make amendments to the list by the end of the year based on feedback from the public.

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Service Tax 2018 The Service Tax is a form of indirect tax imposed on any provision of taxable services made in the course or furtherance of any business by a taxable person in Malaysia. Service tax is not chargeable on imported services and exported services. The services provider is liable to be registered under the Service Tax Act 2018 when the value of taxable services provided for a period of 12 months that exceeds a threshold of RM500,000. The Service Tax rate is fixed at 6%. A specific rate of tax of RM25 is imposed upon issuance of principal or supplementary card and every subsequent year or part thereof. However, the threshold for eateries and restaurants has been increased to RM1.5million. This was announced by Lim in a media briefing at the Treasury building on 30 August 2018.

Multi-stage tax

Single-stage tax

Broad-based, levied on all goods and services including imports (unless specifically excluded)

Levied on all locally manufactured or imported goods and certain prescribed services

The standard rate of tax: 6% Certain supplies are treated as zero-rated, exempt or are subject to relief

• •

Mandatory registration upon reaching a threshold of RM500,000 (voluntary registration also possible)

Sales Tax: Any services provider is liable to be registered when the value of taxable services provided for a period of 12 months exceeds a threshold of RM500,000 Service Tax: Companies (Manufacturer or Sub-contractor) with a sales value of taxable goods exceeded RM500,000 for 12 months period are liable to be registered

Input tax can be offset against output tax

No tax credit mechanism

Returns filed either monthly, bi-monthly or quarterly (with the option to request an alternative filing period)

Returns filed on a bi-monthly basis

According to a news report, he said that the government received feedback from owners of coffee shops and nasi kandar restaurants, and they have requested for the threshold to be increased from RM500,000 (under the GST). Although some of them requested for the threshold to be increased to RM3 million annually, but the government felt it was a bit too much. He stressed that the threshold of RM1.5million for eateries and restaurants is final. Sales Tax 2018 The Sales Tax, a single stage tax, is levied at the import or manufacturing levels. In Malaysia, it is a mandatory requirement that all manufacturers of taxable goods are licensed under the Sales Tax Act 2018. The government only collects Sales Tax at the manufacturer’s level and the element of sales tax embedded in the price paid by the consumer.

Sales tax: 5 – 10% Service tax: 6%

Manufacturing activities namely tailoring, installation incorporation of goods into building as well as jeweler and optician have been exempted from SST registration. Regarding compliance matters, SST reporting is once every two months and requires no specialised hardware or software, said Customs Director-general Datuk Seri Subromaniam Tholasy, according to a news report. Hence, there is also no need for small businesses to engage consultants for SST matters. In addition, all SST return must be submitted not later than the last day of the following month after the taxable period ended. Transitional considerations GST registrants can claim input tax credit within 120 days from when the SST goes into effect. GST registered persons must account for GST at 0% and declare the output tax in their final GST03 return.

Companies (manufacturer or sub-contractor) with a sales value of taxable goods exceeded RM500,000 for 12 months period are liable to be registered under the Sales Tax Act 2018.

Special schemes under GST such as Approved Trader Scheme (ATS), Approved Toll Manufacturer Scheme (ATMS), etc. are not applicable under SST. After 1 September 2018, audits for closure purposes will be carried out on GST registered entities.

Goods which are not exempted through the Proposed Sales Tax (Goods Exempted from Sales Tax) Order will be charged sales tax at various rates between 5% and 10%. Sales tax for petroleum is charged on a specific rate which is different from other taxable goods.

On another note, all GST registered persons who fulfilled the required criteria to be registered but were not registered by 1 September 2018 need to apply for registration within 30 days from the commencement date.

SEPTEMBER 2018

feature

STRATEGISE FOR

SUCCESS BY JEFF TAN

All companies, regardless of their size, must have a strategy in line to ensure results and success are achieved. Action Education Technology Co. Ltd Chairman and CEO Li Jian says, “Most small and medium enterprises (SMEs) hold the wrong perception that they do not need a strategy. They see strategy as an upscale matter which they are not capable of planning. “Start-ups and small enterprises do not have a clear concept

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of strategy. Some of these companies even think that it is not necessary for them to have a strategy.” At a press conference before a seminar conducted by him, Li stresses that the need to strategize operations is not limited to large companies or multinational corporations. A simple definition of strategy is, it is something which we leverage on to get from Point A to Point B, he states. “The action to get from Point A to Point B is the strategy. However, the action is decided by the reason for reaching Point B. Planning a strategy is about making a choice. “Strategy making is about how you pick your strategies as an

entrepreneur so that they become your winning factor. Choosing a strategy will decide if success can be achieved, as well as the extent of your success,” explains the well-known trainer from China. Li asserts that the key to an enterprise’s survival in the market is to create value for customers, which makes strategy a necessity to all companies. “When an enterprise creates unique user value for customers which are different compared to those produced by all other competitors, it will definitely survive in the market.” Speaking on the “Focus Theory” advocated by Action Education, Li says that many companies lack a focal point in the market. If a company wants to be focussed in terms of strategy, products and customers, it must build up its product depth.

He adds that employees in different positions have different tasks, but it is still necessary to quantify employees’ task to track their progress as this ensures strategic consistency. Asked on how can entrepreneurs differentiate which training or motivation courses in the market are beneficial to them, Li says that the act of differentiating is a purchase decision. “I would make a decision based on a course’s reputation from online reviews written by past participants. “A good product would have garnered a high volume of positive reviews through a long period of time. This is more reliable compared to reputation observed through a short period, which can be misleading because it could be achieved through manipulation in online portals.”

“It is like digging a well where it is more important to have depth than width. To have depth is to ensure you have a focussed strategy. Only when this condition is met that you will keep improving and exceed customers’ expectations,” he states.

When asked on why entrepreneurs in China have improved on a faster pace, including that in terms of management and business model compared to their foreign counterparts, he says, “It all boils down to the highly competitive environment in China, which forces businesses to improve for survival in the market.

He uses the example of Apple Inc. to explain further. “Steve Jobs resigned from the company (in 1985) because the CEO at that time wanted to diversify Apples’ product range, which contradicted his idea to have a focussed strategy.

He quips that for the Chinese entrepreneurs, it is just like being in a car race where the high tempo demands one to be highly focussed. A slight loss of concentration or misjudgement will cause one to crash his or her car, he adds.

“The CEO thinks that the company must have more products to create more opportunities, but his idea almost led Apple into bankruptcy. When Jobs was brought back to Apple in 1997, the company had 104 products. He only retained four products and expanded the product depth for each product.”

Comparing Malaysian Chinese entrepreneurs with their counterparts from China, he says that both are of Chinese origins. “The most distinguishing characteristics of the Chinese ethnic is that they are very hardworking.

Although Jobs has passed away, Apple’s iPhone is still successful because of the value of it has created for customers through its strong product depth, says Li. It is important for entrepreneurs to turn from the mode of product thinking into value thinking, he says. Li also highlights that it is crucial for employees to understand their company’s strategy before executing their tasks, so that expectations are met. “A CEO should hold discussions with employees before he or she formulates and decides on a strategy. The strategy and its purpose, such as what values are to be created for consumers must also be explained in detail to employees. “Following that, a budget, process and action should be finalised based on the strategy. Therefore, quantitative objectives for the company can be established to form daily and monthly targets for each employee,” he says.

“The Chinese also seems to have a higher sense of crisis compared to other ethnics. This drives them to be eager for success and keen to pursue happiness.” Malaysian Chinese entrepreneurs also have a language advantage, as most of them can communicate in Chinese, English and Malay, he asserts. “This encourages them to expand their business overseas as the market in Malaysia is small. In contrast, there is no real need for Chinese entrepreneurs to think of exporting because the domestic market in China is huge.” In general, the cultural self-cultivation among Malaysian entrepreneurs is a level above Chinese entrepreneurs, he states. “SME entrepreneurs from Malaysia also operate at a milder pace where they are calmer when doing business. However, entrepreneurs from China have higher urgency for speed when doing business,” he says.

SEPTEMBER 2018

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TIPS FOR GROWING A SUCCESSFUL BUSINESS BY JEFF TAN

The rapid growth of technology in this digital age and the e-commerce boom has created many business opportunities. However, it has also increased competition and requires an entrepreneur to be flexible, have a good business model and organisational skills to grow a successful business. Some aspiring entrepreneurs start a business with the misconception that they will begin to earn profits within a short time. It is only after a few months of suffering losses that they realise making money is much more difficult than they expected. Entrepreneurs must get the basics of doing business right to build a â&#x20AC;&#x153;baseâ&#x20AC;? for business growth and development, which will lead to success. These basics or tips are to be practiced even if you have reached a certain level of success. 1. Get Organised One of the important factors to become successful in business is to be organised. Organisation helps an entrepreneur complete tasks and maintain the momentum for business growth. It is strongly recommended for entrepreneurs to create a to-do-list every day. As an entrepreneur completes each task, he or she can check it off the list. This is a good way to ensure they do not forget anything and they complete all tasks that are crucial to the continuity of their business.

3. Keep Detailed Bookkeeping Records There is a substantial number of small businesses in Malaysia that do not keep detailed bookkeeping records, which will become a problem in certain matters such as applying for a bank loan for business expansion. By keeping detailed records, you will know where the business stands financially and what potential challenges you could be facing. Just knowing this gives you time to create strategies to overcome those challenges. 4. Embrace Creativity And Innovation Being creative and innovative is a good way to improve your business and make it stand out from the competitors. Have an openminded approach to new ideas to your business and follow the latest updates on tech innovation that is related to your industry.

2. Analyse Your Competition And Be More Competitive Competition is a form of challenge, but it can also be seen as a motivation to drive the best results. Entrepreneurs must not shy away from their competitors. You need to analyse and learn from your competitors, especially the best performer in the market.

5. Maintain Consistency Having consistency and maintaining it is a key factor to generating profits in business. It is important to consistently carry out the necessary tasks to be successful day in and day out. This will create long-term positive habits that will help your business earn profits in the long run.

There must be a unique selling proposition in your products or services you offer, which will help to create a competitive edge for your business. Differentiation is the key to successful selling.

6. Be Prepared For Sacrifices Starting a business requires a lot of hard work. However, once your business commences operations, your work has just begun.

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You will most probably have to pour in more time and effort than you would as compared to working for someone else. To be successful, one of your sacrifices will be spending less time with family and friends. 7. Providing Great Customer Service Somewhere along the line, many successful businesses overlook the importance of providing great customer service. Through providing better service for your customers, they will be encouraged to return for your product or service the next time they need something instead of going to your competitor. 8. Ask For Referrals From Current Customers Retaining customers is essential to the longevity of a business, but expanding your customer base is as important too. One of the easiest ways get new customers is to ask your existing customers for referrals. You cannot assume that by offering good products and customer service, thus encouraging customers pass the word by mouth about your business will have a big impact in expanding your customer base. The best option is to actively seek referrals. At the completion of every service or sale, politely ask satisfied customers if they know anyone else who would be interested in your products or services.

9. Take Part In Trade Exhibitions Trade exhibitions can be a great way to gain exposure and grow your business. As trade exhibitions attracts trade visitors who are already interested in the type of product or service you offer, they can help to expand your customer base. The trick is to carefully select the trade exhibitions to participate in, seeking the right match for your product or service. 10. Contain Costs And Manage The Money When it comes to growing your business, it is about growing your business’s bottom line. And the difference between pretax and post-tax revenue and profits is key to coming up with an effective growth strategy. There are two main approaches to cutting costs: liquidating your “loser” products or stop providing underperforming services and improving your inventory turnover. When planning a business strategy, entrepreneurs should always focus on sales, revenues and cash flow. Focus on your net profit, not your gross profit because it gives you a more realistic view of how the business is performing. 11. Diversified Products Or Services The key component to successful growth through diversification is similarity. Focus on the related needs of your already established market or on market segments with similar needs. For instance, a bicycle retail shop can also provide repair services to its customers.

SEPTEMBER 2018

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COMPREHENSIVE BRANDING FOR BUSINESSES BY JEFF TAN In this age of high competition in the business world, branding is becoming more of a necessity than an option to entrepreneurs and corporates. It would also be more efficient and helpful if consultancy agencies are hired for branding purposes, especially for smaller companies as they usually have limited resources. “Many entrepreneurs come across branding difficulties in their business. They might not have the know-how to create brand exposure so that fellow entrepreneurs, corporates and consumers will get to know their brand. “This is where Morpheus Branding Agency can play a role in assisting them to achieve their branding purposes and dreams,” says Morpheus Branding Agency Founder and Director Dreams Hooh. She states that her brand consultancy agency’s name originated from Morpheus, who is the God of Dreams in Greek mythology. Speaking of her mission, Hooh says that she aspires to help small and medium enterprise (SME) entrepreneurs from Malaysia to expand their business beyond borders through branding. “The goal is to find the right platform

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for local brands to penetrate markets in other countries. Through integrating corporate positioning, branding and business network, entrepreneurs can internationalise their brands,” she states. According to her, Morpheus Branding Agency provides its clients with a comprehensive range of branding services.

Hooh’s agency also have clients from overseas such as brands from China. “For example, when a brand from China plans to enter the Malaysian market, we will help them to conduct market survey to gather information on consumer behaviour and mentality.

“One main area of our services is to consult entrepreneurs and companies on how to alleviate their brands to the next level, and in the process create market positioning for them.

“Then, we will look into the client’s budget and come up with a solution to apply the right brand positioning and market direction. The purpose is to ensure all branding and marketing initiatives reach out to the intended target audience,” she explains.

“After collecting data on consumer demographics, the market positioning is decide looking at the largest targeted consumer group of a company.”

A company doing branding for the first time should start with fine tuning its corporate identity, she says. “Building a strong corporate identity is

to have a mission and vision, as well as setting the brand positioning, brand story and brand value for the company. It will help to leave a solid impression in the targeted consumers’ mind.” She also reminds that all branding designs must be created to appeal to the target audience. Many entrepreneurs end up with designs that they like but not what their targeted consumers will be interested in. Each brand has its own targeted consumers from a specific age group. Hence, it is vital for a company to plan its branding strategy according to the consumers’ age group, be it they are from the younger, middle-aged or older generation as they have different needs and interests. “A branding strategy must look into the details of the age group, including consumer mentality, trends, purchasing power, lifestyle, activities they engage in and places they visit. Companies must understand what gives their targeted consumers the urge to purchase their products,” she asserts. Hooh stresses that it is important to support her clients in the planning and arrangement of branding strategy, which is based and measured on their budget and expected results. “Every SME will have an annual branding and advertising budget. For example, when an SME approaches us with a budget of RM500,000, we will consult them on how and where to spend the budget. The most crucial thing is to find a right direction for our client,” she adds. There are cases where clients have limited budget. “As an example, if an SME only has an annual budget of RM100,000 for branding and advertising which is considerably low, we will first look into the result the company intends to achieve through the budget.

“If the expected result is only to boost product sales, then we will plan a solution which includes marketing initiatives to promote the product. No branding elements will be included into the solution,” she says.

Effective strategy is the backbone in building a successful Brand” - Dreams Hooh Director of Morpheus Brand Agency Stating product awareness as another purpose of clients, she says, “For instance, Samsung just launched a new product and wants most Malaysians to know about it within three months, without mention of a sales target. “In this case we will make plans according to their need and carry out activities such as press conference and tech exhibition to create product awareness among consumers,” she quips. She highlights that companies must have a clear direction when doing branding. This is why when a client approaches Morpheus Branding Agency, her team will first determine a positioning for the client’s brand and compute the required budget to achieve targeted results. “Solutions we offer are customised based on each client’s needs,” she adds. Entrepreneurs should ensure that the positioning of their enterprise and company culture are on the right track as these will affect their branding mission, she says. She asserts that it is also important for entrepreneurs to pick the right channel and strategy to execute branding and marketing initiatives.

On another hand, Hooh is glad to witness the rapid growth of e-commerce in Malaysia including Alibaba’s ventures in the industry, which has opened up opportunities for local companies. “E-commerce is an effective and useful tool for companies to create brand awareness and can be used as a platform to reach out to overseas market. With the right strategy, companies can create added value for their brands through e-commerce platforms. Although the e-commerce development also increases competition for local brands as more foreign brands enter the market in Malaysia, Hooh is not too worried about this issue. “In contrast, I think this is a great opportunity for homegrown brands to increase their competitiveness. Malaysia brands should incorporate local culture into their products whenever possible and highlight their unique characteristics and identity. “Agarwood is a good example of local product that is well known for its high quality. Malaysia also exports frozen Musang King to China, which is quite popular among Chinese consumers.” She urges Malaysian companies to focus more on growing local brands and exporting them to other countries, rather than importing goods from China to sell in the domestic market. Drawing back to her own role as an entrepreneur, Hooh says, “I faced many challenges when I started my branding consultancy business. Throughout these years, I have accumulated valuable experience of helping many companies plan and execute their branding initiatives.” “Branding is my lifelong mission,” she concluded.

SEPTEMBER 2018

REFRAMING THE WORLD WE LIVE IN

strategy

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DR MICHAEL HEAH

is an ICF Master Certified Coach who works with top leaders internationally and train them to be coaches too. Log on to www. corporate-coachacademy.com or call 03-62054488.

Listen to these two people sharing about their lives:- Ahmad says, “My life is a complete failure and I hate going to work”. Kassim, on the other hand, says, “I am excited every day and I look forward to work”. Despite both being biologically the same age, each one perceives their world differently from the other. In this case, Ahmad might continue to be unhappy because he sees negativity in his world while Kassim stays happy because he sees his world with positivity. This simple scenario reveals a lot about the power of the mind. It has huge powers to influence the way we perceive the world around us; meaning to say we can make it either in empowering or in disempowering way. This is so important because our state of mind will in turn influence our interpretation of many things we come into contact with which has a bearing on our moods, and eventually, our actions. In reality, all of us have the ability to control our minds into the way we want it to. We can make the choice of how we want our minds to think. No one can stop us from doing this. That goes to say that not even the environment or our circumstances can influence our mind. For instance, a person who wants to feel contented will choose to appreciate and be grateful even though he might not have the kind of wealth as compared to a much richer person. To this person, he perceives that “having less” is not directly related to “having lesser’” in life. Conversely, a wealthy man who has everything can choose to

feel discontented and be unhappy with what he already has. To him, he wants to think that he still does not have enough. It is unfortunate that many people tend to see the dark side instead of the bright side of their lives. One very common misconception is to feel “insignificant” instead of being “game” about their lives. They would rather choose to take their lives very seriously to the detriment of their health, relationship and overall moods instead of being game enough to take things easy in their stride which will serve them better. They would rather choose to complain, criticise, devalue and even beat themselves up for no good reasons. People need to know how to manage their minds so that they can turn them to become an accomplice (rather than an enemy) to help them in order to lead happy lives. Indeed, we should be able to reframe or turn our minds around so that we can quickly reset for the better each time we hit a rough path in our lives.

To do this, we should focus on growing a strong “mind supervisor” in us who would help us to watch our thoughts in the moment and to either get rid of them if they are disempowering or to prevent them from getting inside us. The “mind supervisor” is the one who help will help us to reframe negative thoughts to positive ones through powerful questioning they ask us, such as:What are our thoughts doing to us now? What is a better thought to have? What will it do for me? What do I want to say to myself? The hallmark of all good leaders lies in their ability to take charge of their circumstances - to either stop events from getting worse or to change them for the better. People love to work for positive leaders who always say there’s a way. Doing this will not only inspire them but help them to learn from these positive leaders too. One good thing leads to another. Successful organisations have many of such leaders who know how to stay positive through their ability to reframe. No wonder they are innovative to stay as market leaders in good times and in bad.

SEPTEMBER 2018

strategy

USING THE LAW OF ATTRACTION AS A TEAM TO ACHIEVE DESIRED RESULTS VIA

3 SIMPLE STEPS

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Successful business owners have one thing in common – and that is they have a vision and mission in place for their companies.

that they hardly share the actual meaning of their company’s vision and mission with their team members, especially among the new recruits.

Having a clear vision and mission for one’s business means one is aware as to where one is heading. And, clarity is indeed power!

As the leader of your organisation - does your company’s vision and mission belong to you alone? Or does it resonate with everyone in your organisation?

Let us examine the “Law of Attraction” (LOA) and how it can help boost the productivity of one’s team. Employees or rather team members, as I prefer to acknowledge them - since every one of them plays a significant part in the growth of a company have a pivotal part to play.

In order to create an effective and positive attraction at the workplace - every team member has to resonate with the company’s vision and mission while aligning with what they want to achieve personally.

One of the most commonly “neglected” parts omitted by many business owners is

When a team member fails to deliver, the business owner will most likely review their work performance. Most of the time, someone new will be recruited to replace the non-performer. If the process is repeated frequently year after year, the affected business owner will form the perception that it is difficult to recruit good team members. Some of you must have shared this sentiment with your fellow business owners. In practicing the LOA, your job is to focus on what you want and create a positive vibration in getting it and allowing the LOA figure it out. So, are you focusing on the problem or the solutions now? The key to activating the LOA is to focus on the solution and not the problem. All vibrations (or thoughts) are managed by this intangible principle – namely seen in

the workings of this universal law. How can the LOA help in increasing the productivity of your team members effectively? Here are 3 simple steps to follow namely:First and foremost, as the leader of one’s company, one needs to ensure that each and every team member in the company is aware of the vision and mission of the company. The LOA works effectively when everyone thinks alike. Next, get the team members of every department to sit down together and carry out an activity using the “Contrast To Clarify Worksheet”. For example, for the Sales Department, give an A4 paper to each and every team member. Then, get them to fold the paper into half. Tell them to write down on one part of the folded paper – the kinds of customers whom they are not keen to meet. Then, unfold the paper and write on the other side – the types of clients whom they wish to meet. By now, all the team members should be clear of which type of clients they wish to have. Then, have them then compile a list of what they want on a clean sheet of paper. Print and distribute a copy to each and every team member for them to read and make sure that they feel good about what they want. Now, allow the LOA to work. Sending your team members to soft skills or technical skills training are still vital if you believe that they need further improvement.

CHIN KANG WEI

is a certified LOA Facilitator passionate about teaching business owners in Perak about this principle so they won’t need to search for employment elsewhere

The point here is to ensure that each and every team member has the same “wants and energy”. Sharing the same “wants” among fellow team members will definitely bring about a significant leveraging power and will achieve the desire results faster and sooner since everyone is having the same vibration!

SEPTEMBER 2018

strategy During one of my talks back in 2016, I remembered this participant asking a question during the Q&A session. “Mr Gan, we’re an OEM manufacturer for cleaning products and after more than 10 years in business, we want to do a branding exercise. Can you advice what factors we need to consider during this exercise?” I then asked him if there was any specific reason why she wanted to re-brand his business at this juncture. She then replied “When we started our business 10 years ago, we were small and didn’t have a website, and our logo was very simple. In this era, if we want to stand out from the competition, we need to have good branding!” Does this sound familiar to you? Most of the time, when an existing business wants to do a branding exercise, the reason is rather simple – beginning with the phrase “We need to...” In my opinion, this sounds more like “They want to...” Let’s just ask a very simple question to begin with:- “What is the single most important reason why you want to rebrand your business?” Will you do it when your business is growing well? Will you do it when you are leading the market and your next best competitor is way behind you? Will you do it when your capacity is already fully occupied – even till the end

of next year? Precisely. When you are doing so well, the re-branding exercise is not supposed to be your priority. Let’s try to ask the same question in the opposite way:- “When your business is not doing well, is re-branding the way to rescue your business?” Yes? No or Maybe? The major challenges to Small and Medium Enterprises (SMEs) today is not how the re-branding exercise should be done – but, whether is there a need for such an exercise. Re-branding exercise (usually in a bigger corporation) is done for a strategic reason. This is often in line with the change of business direction or strategies. Besides the change of logo (which is what most people notice), they always bring in changes that affect many business divisions and functions (and unfortunately, the general public does not get to know about these details). So in short, a branding exercise is not just about changing the company logo, undertaking the renovation of offices as well as the printing of new company uniforms. Instead, rebranding is done with lots of thought and changes that aren’t superficial. Thus, can we do re-branding for SMEs? Sure we can but before that, we need to firstly look into the following:-

BASIC RULES TO FOLLOW

BEFORE YOU START BRANDING YOUR BUSINESS

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1. Will You Be Able To Tell A Story That Resonates With Your Customers?

2. How Much Budget Have You Allocated To This Exercise?

Just imagine two simple taglines - “We want to be world’s number one” and “We want to serve our customers better”. Which one do you think your customers would be more connected to? Do you think your customers care whether you are number one or number two? So if your re-branding story has nothing to do with them - will they just buy from you because you are world’s number one product? Changing your logo and images would probably give some positive impact if you are into consumers products. However, it can be a double-edged sword too. There are instances whereby a re-branding exercise has captured new customers but at the same time – resulted in the loss of some existing customers. So, if you can’t tell a great story, don’t simply re-brand your business.

Changing the logo and images are not expensive but for you to communicate and reach out to your existing and potential customers can cause you a bomb. Most SMEs have exhausted their budgets to create a new logo, office uniform, stationery and website. Therefore, they are left with not much budget for other matters. To make re-branding effective, public relations and advertising are areas which cannot be spared as what’s the point of making changes to the rebranding exercise when no one knows about it?

Also, how do you know the money spent did not go to waste? If your re-branding exercise aims to increase sales, make sure you track your sales performance after the exercise. Likewise, if your rebranding exercise is aimed at boosting up the morale of your employees, keep an eyes on their attendance, turnover and productivity. Do not just do it and be happy with all the nice photos and videos that emerge after the exercise.

3. What Is The Expected Outcome? You have found a good reason to rebrand your business but how do you know whether you have spent it wisely?

GAN TECK HOOI

is the Founder and Managing Consultant of ICFO Solutions Sdn Bhd. Email him at: thgan@icfo.my or www.captainamerigan.com

SEPTEMBER 2018

strategy

MOVE AWAY FROM COMMON HR PRACTICE TO FOSTER INNOVATION To foster innovation, employees should throw away all their assumptions and preconceived ideas” - Amantha Imber (Innovation Psychologist) Previously, businesses were run by professional management whereby a Manager leads the organisation, sets the direction and supervises the work of employees. The human resources (employees) used to function like machines; and in the management theory of those days, the ‘system’ came before the people. Years have passed, and when you look under the covers at the companies that thrive in today’s business environment, you find that they are organised and managed very differently. They have essentially obsoleted the professional management model and have turned into highly agile, customer-centric teams. Dr. Amantha Imber believes employers can encourage more collaborative and innovative cultures by moving away from some traditional HR processes. Before we can understand how we can help our organisations with its innovation agenda, we need to understand the meaning of innovation. For many of us, innovation means the introduction of new technology and inventions—such as the internet, cell phone, etc. It is true that innovation led to the development of these new products; however, innovation is much more than that. It goes beyond technology and requires collaboration from many areas to come together to achieve success.

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Innovation is a collaborative process; where people in many fields contribute to the implementation of new ideas. Shifting from the norm is crucial; a common practice may already be obsolete and not practical in today’s way of managing people. Businesses cannot live by academic solutions all the time. The traditional perception of HR Managers acting as terminators must be refined and changed. HR Managers should instead play their part in exploring different ways of developing and changing people, because things in and around us are revolutionary. The Patron of the i-HR Consulting’s Advisory Board, Dr. Ram L. Prasad highlights that business owners need to think about turning over a new leaf in seven cultures of people management. The seven cultures are: 1. The way we train our people. Traditionally, employees have been attending motivational and developmental courses and

trainings held by external parties. Business owners fail to realise that training and mentoring are best held in-house, where trainers personally know the trainees and what is necessary for them. By mentoring your own people organically, you instil the sense of belonging and boost of self-esteem in them. In order for mentoring to be effective, it is recommended that it is done in small segmented groups.

both parties would have already had a basic understanding of each other’s cultures.

Inspire your people to move out of their cocoon; encourage selfmotivation, aim toward high performance and self-reliance. Guide them to set their respective personal goals and work schedule to gradually meet targets. This will translate into productivity, profitability and more importantly, happiness. As Dalai Lama says, “A workplace without happiness is not a workplace”.

The way we manage people. Quit managing your human resources with PROFIT in your mind. Instead, treat them like they are your most valuable asset. Appreciate them; give credit where credit is due. It is a rewarding habit to form, and the rewards are inestimable.

2.The way we have been recruiting people. Traditional businesses have been operating the way Dilbert’s evil boss did – company profit matters most, employees came as number nine in his priority list. “Our employees are our most valuable asset”, says every CEO ever. That’s the corporate speak, and you see employers advertising job vacancies in most daily news, using this common tagline. Jeff Weiner, the CEO of LinkedIn agrees that talent is their top priority. So does the Chairman of Google, Eric Schmidt, and he adds on “Never forget that hiring is the most important thing to do, to get an exceptional talent”. Advertising job vacancies and interviewing strangers who fill up job application forms to meet certain criteria does not seem to be practical these days. Trust your current workforce, rely on them to recommend people (from their personal and professional network) whom they feel are fit for the job. This way, you’ll be able to confirm the background of the new candidate. On the other hand, your employee would also be able to give a brief introduction about your organisation to the candidate. This makes the recruiting process and adaptability more effective as

Simply put, connect with candidates through warm introductions. Rather than recruiting candidates for jobs when they become vacant, employers must put in place a continuous talent acquisition and continuous employment branding solution.

Your top performers have gone above and beyond to successfully complete tasks assigned to them. It wouldn’t be right not to acknowledge their efforts and reward them appropriately. Naturally, people expect occasional pats on their shoulders for a good job done. Your employees should be rewarded for their expertise and achievement in evolving projects or programmes, instead of their ability to only follow instructions. Managers must be able to continuously interest the workforce instead of leaving them aside to discover things on their own, especially for new employees. There should be a continuous guidance and employee engagement pulse which monitors employee engagement on an ongoing basis. The way to manage habits. As business owners, you must be alert and strive to change the habits of your employees which do not contribute toward the progress of themselves as well as your business. Break the norm, guide them and continue to be an effective mentor. The mindset of leaders. Managers usually feel that they know best and would as much as possible try to control everything that’s happening under their roof. The time has come for you to learn not to micromanage. Trust your people and delegate jobs. Leaders must be able to recognise leadership qualities in others. Delegate tasks to them and make them responsible for projects; in a way, you are actually on the road to develop more credible leaders and decision makers. More profoundly, in today’s way of doing business, managers are no longer really in charge. Customers are, and all employees should have direct access to customers. On the other hand, show it to your people that you are a hands-on business owner or Manager. If you’re the restaurant owner, you are an employer who gets down to serve food to your customers. Roll up your sleeves and work with your team. The way we conduct ourselves (our business). Conduct here refers to your organisational behaviour. Poor organisational behaviour will only create and widen the gap in your workforce

SEPTEMBER 2018

strategy and affect the productivity of your business. As a business owner, you must play your part to encourage a healthy organisational behaviour. Businesses of today should be an avenue for proactive learning. Nobody is perfect; everyone has their strengths and weaknesses. Raise the spirits in your people to learn from one another. Beg, borrow, or steal (ideas) and be better! Stop the culture of undermining others from happening, as this will affect individual or organisational progress. The environment we operate in, which refers to the way we structure our organisation. The days of working individually in respective cubicles with different divisions for different departments have passed. Businesses should operate with a shared vision and culture. Modern organisations have an open workspace, promoting interconnectivity and instant sharing of information. This will allow a conducive working relationship with a clear understanding of the organisational functions. Many people feel that they can work independently, without realising that in today’s fast-paced and high-performing working environment, a collaborative effort produces greater results. As a business owner, you must encourage a smooth work flow; not allowing workplace bullying to happen, whereby colleagues dodge their own responsibilities to others and pushing their luck with double-edged sword. Employers should encourage open discussions and prevent back-stabbing from happening. Open discussions with continuous feedback and revision of goals are also important to fix problems immediately. It will also avoid assumptions at all levels, which makes fools of those assuming. Ensure that all your employees are moving toward the same direction. Traditionally, employees have been graded through annual performance appraisals. This too has become obsolete. Modern high-performing organisations are now implementing continuous social rewards and recognition programmes, social learning programmes, social recruiting programmes - all with the goal of creating transparency and speed.

However, i-HR Consulting would like to remind you to always have DETERMINATION:

D exterity which refers to the readiness to shift and be different from who you were yesterday E nthusiasm made up of eternal (traditional beliefs) and external factors T alent in yourself and your people to change the traditional system and environment E nergised enough to keep on moving R esourcefulness in your (right) reactions M otivation I nspiration N egotiating ability to change – initiative to drive your people to change A ct well in order for your people to follow you T actfulness I nterest in yourself, your people, the organisation, other people, as well as interest in learning O rganised – yourself and your system N ever give up! This is a firm resolution of all your objectives leading to success

Once your organisation practices the agile HR model along with strong DETERMINATION, you are on your way to embrace innovation. All the best in your effort to turn a new leaf and grow stronger!

Is your organisation still heavily focusing on enforcing rules, formalising structure and authorities, and putting leaders on a pedestal? Time has changed; it’s high time that you shift to an agile HR model - focusing on building customer centric teams, empowering managers and people to make decisions, encouraging a culture of learning, teaching managers to coach and develop others.

www.entrepreneurinsight.com.my

ASSOC PROF ROY PRASAD

is the CEO of i-HR Consulting Sdn. Bhd., the leading and award-winning HR Consulting and outsourcing firm in Malaysia.

www.uniquefire.com

unique Fire Industry sdn. bhd. The Biggest Fire Protection Equipment Factory introduction Unique Fire Industry Sdn Bhd is a total fire prevention solutions provider and manufacturer for full line of fire protection systems and equipment, with the passion to ensure that every home and workplace is adequately protected against fire hazards. We are committed to ensuring that the needs and requirements of both our local and international clients are met with professional integrity, technical expertise and prompt delivery in all areas of fire safety

We are the authorized distributor for: CHANG DER FIRE PROTECTION COPORATION

THE VIKING CORPORATION (Far East) Pte. Ltd.

HORING LIH INDUSTRIAL Co. ,Ltd.

AUGUST 2018

strategy

MARKET EXPANSION

During the recent visit to China, Tun Dr Mahathir advised Malaysian businessmen to hook up with Chinese partners to penetrate the China market. It was indeed a brilliant advice extended to businesses that aim to expand their business operations beyond the Malaysian shores. Tun Dr Mahathirâ&#x20AC;&#x2122;s advice embodied three key wisdoms for Malaysian businessmen to digest and act on. Firstly, by expanding business into China, businessmen will be able to reach out to huge number of potential customers. China population is presently close to 1.4 billion which is more than two times of the combined ASEAN population. Secondly, by partnering with the right partners, businessmen will be able to understand, appreciate and capture the local consumers more smoothly and speedily. And more importantly, collaborating with the local partners will help the business to adapt and adopt domestic ways of conducting business. Thirdly, by exploring and working with new technology, businessmen will be able to learn and experience new trends and technological advancement that is actively pursued in China at this moment. Having learned the new technology, businessmen will be able to transfer the technology and newly acquired expertise to their businesses in Malaysia. This will help

www.entrepreneurinsight.com.my

EDDIE HU

A Chartered Banker with over 26 years of direct dealings with the SMEs. He has authored a book entitled â&#x20AC;&#x153;SME Challenges and Solutionsâ&#x20AC;? and can be contacted at Eddie.Hu@outlook.com

to expedite and speed up technological transfer to the Malaysian businesses. Forming partnerships with foreign parties is just one key approach businesses can take to expand their business across borders. In addition, businessmen can also encroach other ways in expanding their presence in overseas. Businesses can choose to set-up and build their businesses in overseas on their own effort. This approach, however, would be more challenging unless the businessmen know the overseas market well. Otherwise, they would have to face countless obstacles in getting their businesses up and running. The other approach that can also be taken by businesses when expanding across borders is through business acquisition. This approach nevertheless involves huge capital flow and extensive management capabilities. Businesses taking this route must have abundance of resources to sustain the requirements. Why Cross Border? Before making any drastic decision to go regional or global, businesses must have a clear agenda for them to do so. Why would they want to expand their businesses across borders? Is it because their competitors are doing so? Or simply because they want to jump on the wagon to be international players? In reality, businesses need to remain caution in going global. If not done correctly, this move can create significant impact to their businesses, both in Malaysia and globally. Broadly, there are four possible major reasons for businesses to expand their operations overseas. Firstly, to capture a larger market, enabling them to grow their businesses more aggressively and significantly. When businesses extent their reach to other countries, they eventually reach out to consumers in the new markets. Secondly, businesses can diversify its revenue stream when going international. Instead of depending solely on their revenues from Malaysia, businesses can better manage the country risks when the revenues are derived from different countries. This includes diversification of currency risks as well.

Thirdly, businesses can reshape and reform their business risks. Businesses are transacted differently in different countries. The credit terms and nature of business transactions could be different from that of the domestic country. Businessmen can learn and gradually apply some of the good practices to their businesses in the home country. Fourthly, businesses can also benefit from lower tax regime in other countries. Due to differences in taxation rate in different countries, businesses can plan their businesses more effectively when operating in different countries. This however does not construe to tax evasion which is not acceptable in most countries. Overall, businessmen must be clear with their preference and rationale in expanding their businesses to foreign countries. Readiness to Internationalisation Expanding business operations to foreign countries is no easy feat. There are countless obstacles and challenges to be faced and handled tactfully before any business can survive in the new market. Businesses must have the right resources in terms of people and financial backing in order to sustain the process. Businesses must be well prepared and ready before embarking onto their journey beyond borders. In view of different consumerâ&#x20AC;&#x2122;s preferences and expectations, businesses need to refine and elevate their products and services to a level that is competitive and acceptable to the consumers. Products and services that are selling well domestically may not be well received by consumers in a new market. Clear understanding of a new market is critical for businesses even before they start venturing into it. Entering a new market without proper knowledge and preparation is suicidal, hence unlikely to be successful. Exploring into new market also involves deep pocket. Besides business establishment cost and spending on other administrative matters, businesses need to invest on advertisement and product promotion for public awareness. Strong financial backing is essential for businesses to sustain in a new market. Businesses may need to realign and make necessary changes in enhancing its business operating models to be effective in the foreign countries. Experienced and capable management team can be the determining factor of the success of businesses in a new market. Tax and regulation can be tricky and risky if not handled properly. When businesses collaborate with foreign partners, this matter can rightly be handled by the partners that know the local

Following are the eight key factors that businesses must consider when expanding their businesses overseas Products & Services

Enhanced Business Model

New Market

Tax & Regulation

Financing Backing

Process & Governance

People & Management

Back-up Plan

requirements. Businesses in different countries may operate in different ways. In most instances, local contacts can help to simplify the processes. Businesses that operate away from the base country must also possess clear and proper processes and governances. This is important for the businesses to operate smoothly and effectively under reasonable supervision. And lastly, businesses that explore beyond borders must have one or more back-up plans for their venture. What if certain aspects of the businesses do not happen as planned? What would be the Plan B or even Plan C? Businesses must be ready with practical options when things do not happen according to plans. Way Forward Businesses must be bold enough to think beyond their current business models. They must be prepared and ready to bring their businesses beyond the domestic market, into the regional and eventually global markets. With proper and dynamic plans, businesses will be able to achieve success on their pursuit to market expansion beyond the Malaysian borders

SEPTEMBER 2018

strategy

CUSTOMER RETENTION STRATEGIES FOR E-COMMERCE THAT WILL BOOST SALES

customer retention can increase your company’s profitability by 75%. Do you have an eCommerce store? Do you know what makes a business successful? Happy Customers. And when I say happy customers, I mean the people who love to keep coming back to your store when they want to shop. Jason Fried, CEO of Basecamp put it best: “If you take care of your existing customers, they will take care of your new customers”. Are you the guy who always focus on attracting new customers? Don’t be that guy. It’s good for acquiring new customers but never neglect your existing customers.

START CUSTOMER LOYALTY PROGRAMMES According to Virtual Incentives, 75% of consumers say they favour companies that offer rewards. Your loyal and happy customers are your best promoters. Word of mouth is the most effective at driving new customers. Your loyal customers always buy from you and they tell their experience to their friends and family. How can you convert your happy customers into your promoters?

WHY?

That’s where customers loyalty programmes come into the game.

It costs five times as much to attract a new customer than to keep an existing one.

Reward your customers for their loyalty. Give them coupons, your new products at lower prices, a points system, or referral programmes. They will appreciate it and feel more valuable. Customer retention is the main purpose of these programmes. These programmes can help you to convert new customers into repeat ones.

Advertising is becoming more costly day by day and it’s really tough for acquiring new customers in this crowded eCommerce industry. So, you should focus on customer retention. A 5% increase in

So how can you increase customer retention? In this article, I’ll share five proven customer retention strategies that will boost your e-commerce store sales.

www.entrepreneurinsight.com.my

SEND BIRTHDAY EMAILS WITH INCENTIVES How do you feel when someone wishes you ‘happy birthday’ and gives you a surprise gift?

You can’t afford NOT to be where your customers are. Build the right strategy to deliver an omnichannel experience across all the devices and channels. Serve them well and they will take care of your business.

It makes you feel special. Right? When I say the word ‘birthday’, what comes to your mind first? Cakes, gifts, and parties.

SEND HANDWRITTEN NOTES TO DELIGHT I read this quote from Simon Mainwaring somewhere: “The simple act of saying ‘thank you’ is a demonstration of gratitude in response to an experience that was meaningful to a customer”.

Everyone loves (and expects) surprises and gifts on their special day. As an eCommerce owner, you share a special relationship with your customers. So, it’s your job to make your customer feel special on his or her birthday.

So true!

What can you do?

Send a simple handwritten thank you note or card to your loyal customers. We all love receiving real mail in this internet world. It can have a meaningful impact on them and they will appreciate this take.

Send them a beautiful and personalised email which contains an incentive like a special gift, free shipping, coupon code or some other perks. Send this email at least one week ahead of their birthday to give them time to use the offer. They’ll really appreciate it.

These two words “Thank You” have immense power. How can you show your gratitude?

You can also take a step further and send a small gift with your note. It will make their day.

80% of customers indicated they are more likely to do business with a company if it offers personalised experiences.

In fact, 86% of buyers will pay more for a better and personalised customer experience.

Birthday emails have a 481% higher transaction rate than promotional emails.

HOST MEETUPS AND OFFLINE EVENTS Meetups and events are a great way to meet your loyal customers in-person and attract new prospects to your business. It will lead to a better understanding of your customers and their interests.

PROVIDE AN OMNICHANNEL EXPERIENCE We live in the “Age of Customers”. Today’s customers are digital customers. Thanks to mobile devices, social media, the Internet and Web, these channels provide instant information to customers. Hence, you have to provide them with an omnichannel or integrated experience. Wondering what omnichannel is?

48% of event attendees say face-to-face interactions are more valuable today than two years ago. Hosting in-person meetups are perfect for creating a deeper relationship with your community.

Omnichannel is all about engaging with your customer across every digital channel and all devices. From the email to a social platform to the web, and across laptops, tablets, and smartphones, they are moving quickly across channels and expect you to be there too, providing an integrated experience. Google says that 90% of shopping consumers never stay on just one device when making a purchase. They skip around before buying. A customer is checking your email newsletter, the next second they jump to your social media page, then to your website, to your toll-free number, and then back to your email – all without losing momentum.

Kunjal Panchal

is a digital strategist and a social media geek. She’s passionate about content marketing and strongly believes in the power of storytelling. This article first appeared on Jeffbullas.com.

SEPTEMBER 2018

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FEBRUARY 2018

COVER STORY

TITAN OF TITIJAYA LAND BHD

TAN SRI DATO LIM SOON PENG CHANGES HIS DESTINY FROM RAGS TO RICHES, POVERTY TO PROSPERITY

IMPACT OF THE GE ON PROPERTIES HIGH SPEED RAIL: CARRYING THE PROPERTY MARKET FORWARD

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KING OF RETAIL

MRCA President Dato’ Garry Chua’s insatiable appetite for the F&B business and building sector is inspiring

AZIZAN OSMAN

Inspires young Entrepreneurs with his Midas Touch in training

FLYING HIGH IN THE AVIATION ENTERPRISE

GTA CEO Dato’ Nonee Ashirin shares her insights as a woman in the aviation and aerospace industry

DISRUPTIVE TECHNOLOGIES

WIEF spotlights the business trends of the future

ALAN KOH RISES TO STARDOM WITH STAR RESIDENCES

DANIAL MA OF VRDT GROUP

THE MAN WITH THE MIDAS TOUCH BRINGS A CELEBRITY FEEL TO HIS LATEST PROJECT

PLATFORM FOR WOMEN ENTREPRENEURS

Revamping Current Business Models

ENTREPRENEUR OF THE MONTH:

Paul Yung Sets the Stage for Success with FitLine Landmarc Founder

MARCUS LIP ENTREPRENEUR WITH THE MIDAS TOUCH

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