Feeds:
Posts
Comments

Archive for July, 2013

9 days to D-Day : On Zero Ground

Having the right information allows me to understand what is happening in the company. The power of cloud computing when done right and pushed in terms of it’s maximum potential, allows the entrepreneur to see what will and what can happen.

There were some ideas which we should have implemented during this month which does not win the support of the team. At that time, we lost moral influence.

Wars or battles (in this sense business or new product line introduction) cannot be a reality without the support of the team or moral influence.

I have 9 days left to prove that we can turn the ship around and prove that we can push the sales and defy the norm and trend.

Now that the deficiencies are experienced by the team, moral influence suddenly appears and skyrocket to massive proportions.

We will do all we can without our limits of resources and power.

Advertisements

Read Full Post »

Being educated from the aspects of Entrepreneurship methodology, it had helped me a lot in terms of helping me predict that “corner”.

What is that “corner”? That corner is when you can anticipate upsides and downsides in a business through theory and experience. 

I have always understood the product lifecycle and growth levels where every organization needs different system as it grows. It’s simple, when you have a new product people don’t know, you need to sell em quick, dump those paperwork, it’s not needed. But as your product grow and there are lots of demand, the paperwork is very important in terms of system to keep up with the demand.

But I did not understand economies of scale.

I guess it was because I did not pay attention during my micro and macroeconomics class or I was just plain dumb.

May people say when you grow big, with economies of scale you get richer and prices go down.

True.

However they din’t tell you that as you get more economies of scale, there will be a tipping point as you grow, your cost will start to rise again.

And these costs are associated to many things like, last time hantar barang to gerai pakai kereta sendiri = no cost.

With 18 outlets you need 3PL logistics = new cost.

These new costs give upsides but it must be done in the most efficient way manner.

It’s complicated.

To put it simply, when you have a business, maximize everything in terms of efficiency. Make sure everything is productive and you don’t have the attitude of, oh company dah besar, boleh splurge duit sket.

It is not true.

Many PLC listed on Bursa Malaysia suffer from tiny margins and I believe it’s because of this.

Economies of scale if you are not efficient enough, will kill you.

Good lesson for me, never thought about this.

So learn from my mistakes, if you can understand. 

Read Full Post »