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Singapore Startup: This HR Tech Firm Worth $100 Million Is Ready To Conquer Asia

In the dizzying world of technology startups, it’s easy to get lost in the hype of hot trends such as AI, blockchain, VR/AR and machine learning. What is often forgotten is the fact that some of the best startups in the world solve the simplest of problems.

This is exactly the approach that Pascal Henry, who is the CEO and cofounder of HReasily, took when he identified the fundamental needs of rapidly growing SMEs–to manage their human resources more efficiently.

Henry launched his Singapore-based HR firm in late 2015 as a Software-as-a-Service (SaaS) business that enables companies to increase productivity by using technology to streamline traditional processes such as payroll processing, leave management and expense claims.

When I was running my first startup in Singapore, I had to do a lot of the manual processes myself. I felt the pain and the drain of it,” explains Henry. “It was taking up a lot of my time and energy, when I should have been focusing on building my business.”

Today In: Asia

 

Improving productivity and efficiency

HReasily’s mission is simple: To innovate and automate HR throughout the world. As one of the fastest-growing cloud-based HR SaaS companies in the region, their simple modules and features aim to transform many of the legacy HR processes and automate them to be accessible anytime and anywhere. Currently the company offers seven modules including payroll, staff leave, employee contracts and attendance. As HReasily grows, it continues to add product lines aimed at empowering companies to scale faster.

Previously, many businesses used solutions that each looked after a particular silo of an HR department. So you’d have one system to manage your payroll calculations, one for leave and others for other functions.

“What happened was you had to log in and out of many various systems, and these systems cost a huge amount of money,” says Henry. “What we’ve done is build a solution that is very affordable that integrates with all the functions on a unified platform.”

A simple but elegant business model HReasily runs a subscription-based revenue model. Starting with payroll, which is at the core of every traditional HR office, the company offers premium versions that run on monthly or yearly subscriptions, with add-on modules available such as staff leave and time attendance. This past summer at the RISE 2019 conference in Hong Kong, Henry and his team unveiled their latest benefits management module which will soon allow customers to acquire group level insurance, healthcare and even apply for credit cards or loans.

HReasily says its competitive advantage lies in its customer base, which is mostly SMEs. By initially focusing on the fundamental needs of this particular segment, the company has earned the support of larger banking and government agencies and has become known as an “SME champion.” Not surprisingly, as the company has grown it says that it began to attract larger corporations, publicly listed companies, multinational corporations and even payroll outsourcing firms.

“As we grew we acquired a more diverse customer base,” Henry says, “because a lot of larger companies are tired of the older and expensive solutions because they need to be installed on premise and they require a refresher every year when rules and regulations change.”

Partnerships are the key to rapid growth

Being based in Singapore has allowed HReasily to capitalize on the rapid growth in Southeast Asia. SME’s account for 97% of all the enterprises in the region, and employ half of the workforce, according to data from Asia-Pacific Economic Cooperation (APEC). HReasily’s growth has been nothing short of impressive. With nearly 30,000 companies on their platform and more than 100 new companies onboarding every day, HReasily is said to be growing rapidly in Singapore, Hong Kong, Malaysia, Indonesia, the Philippines, Thailand, Cambodia and Vietnam.

Some of HReasily’s notable customers include Love Bonito (in Singapore, Indonesia, Malaysia and Hong Kong), Sambat Finance (Cambodia), OnlinePajak (Indonesia) and TechInAsia. As the company looks to complete their coverage of Asia, the next major market they look to tackle is mainland China followed by Taiwan, Japan, Myanmar and Australia.

Investors have taken notice of the company’s growth as well. Fresh off a pre-series A funding round of $5 million from Envy Capital, HReasily is currently estimated to be valued at more than $100 million. Henry admits that the company’s rapid growth in the region has only been possible with the early support from their key strategic partners.

HReasily has been working with Citibank, Mazars and Stripe. The partnership with Mazars, which was a lead investor from the startup’s first round of funding, gives them access to a global audit, advisory and payroll outsourcing firm with 300 offices in 100 countries. Henry says it allows HReasily to localize its solutions to each individual market.

Today, building a solid ecosystem of strategic partners is very important because you come from different angles, but you all serve one customer, which is the SME or the business,” says Henry. “By coming together, we collectively create a great end-to-end experience for them. There’s strength in numbers.”

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Jay Kim is a full-time investor and the host of the popular podcast The Jay Kim Show, Hong Kong’s first dedicated podcast on entrepreneurship and investing in Asia. Inc. Magazine has named The Jay Kim Show one of the top three podcasts from Asia which are inspirational and useful to entrepreneurs. Jay is an avid supporter of the start-up ecosystem in Asia and frequently consults with leaders in local government on topics related to technology, entrepreneurship, early-stage investing and startups

Source: Singapore Startup: This HR Tech Firm Worth $100 Million Is Ready To Conquer Asia

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Is your administration work taking too much out of your time? HReasily provides HR solutions for payroll processing, leave and claims management, employee scheduling and time attendance, so that business owners can focus on growing their businesses.

 

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Late-Inning Heroics? Stocks Hint At Friday Rally As Trade Talk Optimism On the Rise

  • Stocks down for the week so far but trade optimism gives positive tone early
  • Micron shares fall on disappointing forecast
  • Wells Fargo gets a new CEO, helping lift shares

Friday dawns after a week that didn’t provide much direction for investors. Stocks have generally chopped around in reaction to the latest geopolitical or domestic political news, and stayed in a tight range.

The question Friday might be whether the major indices can propel themselves to a victory for the week, because they start the session slightly down from a week ago thanks to positive trade vibes and solid durable goods data. That data looked really nice, up from the previous month and rising for the third month in a row. We’ll have to see if that’s sustainable because a lot of it was from the defense sector in the form of planes and parts. Either way, the trend can sometimes be your friend, as the old market saying goes.

Today In: Money

Also, the Personal Consumption Index (PCE)—the Fed’s preferred inflation metric—rose 0.1%, roughly in line with expectations. The core index, which strips out the often-volatile food and energy prices, also rose 0.1% to an annualized rate of 1.8%. It’s an uptick for sure, but still below the Fed’s stated target of 2% inflation. Might this be enough to shift the Fed’s thinking from dovish to neutral?

Whether or not stocks make a last-minute run here, it’s been hard to find much of a theme in the last few days. Hopes for progress in trade negotiations got reinforcement yesterday with an October 10 date set for new talks, but the noise out of China since then has mostly been about how willing they are to buy more U.S. products.

That’s all good, but it doesn’t get at the intellectual property and other issues that U.S. negotiators say are at the heart of the matter and apparently were a sticking point when the last round of talks broke down. It’s hard to see these talks getting much further without movement on these issues.

Another focus is the impeachment drama in Washington. Two big bombshells came out this week, but stocks didn’t show much reaction. As we’ve said, it’s important to keep your emotions out of trading, and impeachment is an emotional issue. It’s likely to be a long process and a constant background noise over the next weeks and months, but investors might serve themselves better by watching earnings and data.

It’s interesting to hear some analysts saying that the impeachment situation might actually be bullish because it could put pressure on the administration to get a trade deal done on the sooner side. This school of thought suggests President Trump might be keen to get some positive headlines to counter the negative ones. That remains to be seen and is just speculation for now.

On the earnings front, bad news came at the end of the week from Micron (MU), as the semiconductor firm issued guidance that Wall Street didn’t seem to like too much. Shares were down 5% in premarket trading. Revenue and earnings beat third-party consensus views, but were way down from a year ago as the company continues to struggle with demand for its memory products. It wouldn’t be too surprising to see the weakness in MU shares work their way into the entire chip sector, maybe putting pressure on Technology stocks today.

And Wells Fargo (WFC) is back in the news today after the financial company hired a new CEO. This ended a six-month search and means investors won’t have to approach WFC’s earnings call next month with more questions about who would head the company. Shares rose in premarket trading.

Quarterly Market Gains Not Much To See

The old quarter is just about over, and it’s been a wild one that basically didn’t go much of anywhere if you look at the major indices. Sure, they surged to new peaks at times, but also retreated. It ended up being almost a wash, with the benchmark S&P 500 (SPX) closing Thursday up just 1% from where it finished at the end of June.

The choppy trade that marked most of the quarter continued on Thursday, with the market giving up early gains, clawing back to flat and then losing more ground by the closing bell. Some of the “risk-on” trading we saw on Wednesday didn’t really carry into Thursday, with small-caps in the Russell 2000 (RUT) drifting lower and Financials having a rough day.

Instead, some caution appears to be coming back into play late this week, with Utilities and Real Estate near the top of the leaderboard Thursday. Those aren’t places people tend to go when they’re feeling gung-ho about the economy. Bonds—another defensive area—also rallied, but gold didn’t share in the fun.

Though every day seems to have a different theme, there’s a lot of concern out there about the fundamental picture. It’s good to hear that new trade talks begin October 10, as we found out Thursday, but a resolution doesn’t seem all that close.

One concern is that new tariffs announced last month on Chinese goods could start having an impact on consumer spending, which would possibly cause companies to get even more cautious. If companies stay in a holding pattern, it’s hard to see any significant rally on the horizon. Earnings growth is already expected to fall year-over-year in Q3 after sinking in Q1 and Q2.

When you get right down to it, earnings drive the market. If investors continue to see earnings grow at slower rates, at some point the market could start to reflect that. FactSet, a research firm, predicts a nearly 4% earnings loss for S&P 500 companies in Q3. Earnings fell 0.4% in Q2 and also fell in Q1, making this potentially the first three-quarter stretch of falling year-over-year earnings since late 2015/early 2016.

No Fun for FAANGS

Some of the FAANG stocks, including Amazon (AMZN), Netflix (NFLX) and Facebook (FB), also are having tough weeks. Again, it’s regulatory issues dogging FB, but the others could be under pressure from changing money flows as the FAANG sector seems to be losing some of its mojo, according to an article this week on MarketWatch.

Next week will be October, after Monday at least, so let’s look at what the market’s going to be grappling with beyond the China trade and impeachment stories. We’re still a few weeks out from earnings, meaning volatility could be a factor and the market could move up or down quickly based on the latest headlines or tweets. It could still do that after earnings start in mid-October, too, but earnings give people something solid to point at in times of turmoil.

One thing we’ll be pointing to next week is a monthly payrolls report for September. A lot of eyes are likely to be on the numbers a week from today, wondering if those relatively modest job gains back in August were a one-time deal or maybe a sign of something more serious. Even before August, job growth had been slowing this year, but it’s still above the level economists think we need to keep unemployment low.

Other data aren’t so exciting next week, but Chicago PMI on Monday might be interesting when you consider recent data where manufacturing activity appears to be slowing down. Chicago PMI surprised to the upside last time and came in above 50. Anything below that would indicate economic contraction, according to how the report is structured. It was 50.4 in August.

Volatility can sometimes tick up the last days of the quarter, but the Cboe Volatility Index (VIX) has dropped below 16 this morning after topping 17 earlier this week.

Company Caution Crimps Quarter: Normally, the government’s report on gross domestic product (GDP) gets lots of attention. That wasn’t the case yesterday because a few other things were going on (there’ve been some political headlines, if you haven’t noticed). A check of the data showed 2% growth in Q2, which means the slowdown that began early this year continued. As a reminder, gross domestic product was nearly 3% in 2018. To some extent, this downturn probably reflects the trade war with China. Many companies appear to be in a holding state because they’re putting off decisions on business plans. You can’t continue to have companies putting decisions off, because it could start affecting the longer curve of growth. It may already be doing that.

Crude Concerns: The fundamental concerns mentioned above aren’t any easier to dismiss when you consider how crude’s behaved recently. Remember when U.S. crude rose above $60 less than two weeks ago in a 15% one-day rally? Seems like a long time ago, with crude back down in the mid-$50s by Thursday. Rising U.S. inventories apparently caught some market participants by surprise and raised questions about demand. It’s just a week or two of data, so you don’t want to make any broad conclusions, but falling crude demand would possibly be a sign of a slowing economy if it continues. That remains to be seen, but for the moment it’s hurting the Energy sector, which suffered more than a 1% loss yesterday.

Batting 3000: The first time the S&P 500 (SPX) crossed the 2000 level was on Aug. 26, 2014. But it traded below 2000 on an intraday basis 22 months later, on June 27, 2016. The lesson here? Just because an index crosses a big round-number benchmark doesn’t mean you can put that magic number in the rearview mirror and forget about it. We’re getting a reminder of that now, with the SPX struggling to get its head above 3000 after first hitting that mark back in July. At this point, the late July intraday high of 3027 remains the peak, and the SPX has fluttered back and forth above and below 3000 ever since.

This doesn’t necessarily mean we’ll still be wrestling with 3000 in mid-2021, though that can’t be ruled out. And while we’re talking scenarios, one can’t rule out a major test to the downside either. In the near term, it’s very hard to see any move above 3000 lasting long without a China deal. Anticipated weak earnings are another major barrier, because without earnings growth, it gets harder and harder to justify rallies.

TD Ameritrade® commentary for educational purposes only. Member SIPC.

I am Chief Market Strategist for TD Ameritrade and began my career as a Chicago Board Options Exchange market maker, trading primarily in the S&P 100 and S&P 500 pits. I’ve also worked for ING Bank, Blue Capital and was Managing Director of Option Trading for Van Der Moolen, USA. In 2006, I joined the thinkorswim Group, which was eventually acquired by TD Ameritrade. I am a 30-year trading veteran and a regular CNBC guest, as well as a member of the Board of Directors at NYSE ARCA and a member of the Arbitration Committee at the CBOE. My licenses include the 3, 4, 7, 24 and 66

Source: Late-Inning Heroics? Stocks Hint At Friday Rally As Trade Talk Optimism On the Rise.

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How to Overcome the Fear, Doubt, and Anxiety That Inhibit Growth

Perhaps you want to be a better coder, a better writer, or a better musician. Perhaps you want to start a new business or begin an exercise program. You are full of good intentions, but your efforts seem to sputter out. You’re not alone.

When you work towards a meaningful goal, expect to face “a repelling force.” Steven Pressfield calls it “Resistance.” In his journey of becoming a best-selling author, Pressfield came to know well the many faces of Resistance.

In his book The War of Art, he explains the aim of Resistance “is to shove us away, distract us, prevent us from doing our work.” Pressfield warns, Resistance arises whenever we attempt “any act that derives from our higher nature instead of our lower.”

Pressfield shares this insight:

Most of us have two lives. The life we live, and the unlived life within us. Between the two stands Resistance.

Pressfield spells out the mindset of a professional and that of an amateur. The amateur gives in to Resistance, placing blame for unmet goals on life circumstances—their upbringing, their partner or lack of one, their busy schedule, and on and on.

Using external circumstances to rationalize our lack of progress is self-defeating. Pressfield instructs,

Resistance arises from within. It is self-generated and self-perpetuated… Rationalization is Resistance’s spin doctor.

Did you procrastinate today? Again, you’re not alone. Pressfield writes,

Procrastination is the most common manifestation of Resistance because it’s the easiest to rationalize. We don’t tell ourselves, “I’m never going to write my symphony.” Instead, we say, “I am going to write my symphony; I’m just going to start tomorrow.”

Resistance, Pressfield warns, “will tell you anything to keep you from doing your work. It will perjure, fabricate, falsify; seduce, bully, cajole.” Living with our self-deception, “we feel like hell,” there is constant low-grade unhappiness and misery.

Succumbing to Resistance, most of us have experienced the feelings Pressfield describes:

We’re bored, we’re restless. We can’t get no satisfaction. There’s guilt but we can’t put our finger on the source.

If you think your stars have to align to beat Resistance, you’re wrong. What happens after you get a new desk and new computer? What happens after you find a quiet apartment or house, live with a supportive partner, and find a great job with a supportive boss? Resistance won’t retreat merely because you have changed your circumstances. When you’re still not ready to do your work, notice how your excuses morph.

There is nothing wrong with you. Everyone faces Resistance. Fear, self-doubt, and anxiety never fully go away. Resistance is always there in full force when we entertain its bad advice. Professionals realize these thoughts will fade away if they turn toward their work.

Amateurs resist Resistance, which only tightens its grip. Pressfield writes,

Resistance has no strength of its own. Every ounce of juice it possesses comes from us. We feed it with power by our fear of it.

“The professional knows,” Pressfield counsels, “that Resistance is like a telemarketer; if you so much as say hello, you’re finished.” Heed his advice. Pressfield wrote The War of Art before smartphones were drawing our attention from our work. If you are constantly checking your phone while you are doing your work, Resistance will beat you. (Watch for my follow-up essay, “How to Break Your Digital Addiction”)

It took me years to learn a simple truth: To beat Resistance, show up and keep a regular schedule, whether or not you feel like it. The amateur thinks their feelings are providing important information; the professional knows they need to think about doing their work, not themselves. Pressfield shares this anecdote:

Someone once asked Somerset Maugham if he wrote on a schedule or only when struck by inspiration. “I write only when inspiration strikes,” he replied. “Fortunately it strikes every morning at nine o’clock sharp.”

According to Pressfield here are three clear signs of an amateur:

One, he doesn’t show up every day. Two, he doesn’t show up no matter what. Three, he doesn’t stay on the job all day. He is not committed over the long haul; the stakes for him are illusory and fake.

Amateurs cast themselves as victims. Pressfield pointedly observes those playing the victim role seek

to achieve gratification not by honest work or a contribution made out of one’s experience or insight or love, but by the manipulation of others through silent (and not-so-silent) threat.

Pressfield adds,

Resistance knows that the more psychic energy we expend dredging and re-dredging the tired, boring injustices of our personal lives, the less juice we have to do our work.

Have you had a bad break? Get back to work. Pressfield explains,

The professional conducts his business in the real world. Adversity, injustice, bad hops and rotten calls, even good breaks and lucky bounces all comprise the ground over which the campaign must be waged. The field is level, the professional understands, only in heaven.

Doing your work comes with no guarantees of success. Are you having “grandiose fantasies” of how the world will receive your work? That’s the sign of an amateur mindset. Pressfield observes,

Resistance knows that the amateur composer will never write his symphony because he is overly invested in its success and overterrified of its failure. The amateur takes it so seriously it paralyzes him.

I write almost every day. If I don’t show up, seeking to improve my technique, Resistance will kick my butt. Resistance will kick yours too, if you don’t practice. Be a professional; do your work.

Pressfield makes it clear, if you are seeking inspiration, begin by “mastering technique.” Toil “beside the front door of technique, [leave] room for genius to enter by the back.”

“Everything in life worth achieving requires practice,” writes Thomas Sterner in his book The Practicing Mind: Developing Focus and Discipline in Your Life. Sterner provides an excellent definition of practice:

When we practice something, we are involved in the deliberate repetition of a process with the intention of reaching a specific goal.

Sterner makes clear,

Good practice mechanics require deliberately and intentionally staying in the process of doing something and being aware of whether or not we are actually accomplishing that.

Here is the rub: The only way we can effectively practice is to suspend our attention to our goals. Sterner explains,

When you focus your mind on where you want to end up, you are never where you are, and you exhaust your energy with unrelated thoughts instead of putting it into what you are doing.

We torture ourselves by remembering past failures or dreams of future success. Our mind isn’t present, and our efforts are diluted. Sterner discerns, frustration results:

[W]hen your mind is only on the finished product, not only do you feel frustrated in every second that you have not met that goal, but you experience anxiety in every “mistake” you make while practicing. You view each mistake as a barrier, something delaying you from realizing your goal and experiencing the joy that reaching that goal is going to give you.

To a professional, the process they follow to reach their goal is not a nuisance. Process is a necessity that amateurs overlook. Amateurs are fixated on the goal, professionals

continue to use the final goal as a rudder to steer [their] practice session, but not as an indicator of how [they] are doing.

Sterner advises us to avoid comparisons. Using the metaphor of a flower’s development, Sterner asks, “At what point in a flower’s life, from seed to full bloom, does it reach perfection?” We can’t proceed to “full bloom” and skip the process. Comparing our lives to “ideal images” will create unhappiness:

Do you think that a flower seed sits in the ground and says, “This is going to take forever. I have to push all this dirt out of my way just to get to the surface and see the sun. Every time it rains or somebody waters me, I’m soaking wet and surrounded by mud. When do I get to bloom? That’s when I’ll be happy; that’s when everybody will be impressed with me. I hope I’m an orchid and not some wildflower nobody notices. Orchids have it all . . . no, wait; I want to be an oak tree. They are bigger than anybody else in the forest and live longer, too.”

Seeking perfection is an amateur’s false goal, steering us away from our process. Sterner writes, “Our impatience to reach some false goal that will not make us any happier than we are right now.” Absorbed in what we are doing, impatience “fades away.”

Go pro, face Resistance; watch your commitment to a process pay compound interest.

You know when you are not in process mode. Your mind is flitting all over the place. Should haves, could haves, would haves come and go. Resisting the process, you are sure—like everyone else in the grip of an amateur mindset—the world is to blame for your lack of focus and progress.

You won’t find more than fleeting happiness by reaching a goal. Instead, go pro, face Resistance; watch your commitment to a process pay compound interest. You’re may be in the valley today but progress up the side of the mountain occurs one step at a time.

 

Source: How to Overcome the Fear, Doubt, and Anxiety That Inhibit Growth

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Singapore’s Richest 2019: ‘Popiah King’ Outfits Factory Buildout For Meat Alternatives

At 70, Singapore’s “popiah king” Sam Goi still has his sights set on expanding his food and property empire. After earning his royal sobriquet—and his $2 billion fortune—making the paper-thin crepes used to wrap spring rolls known as popiah, he is now branching out. He wants to invest in meat substitutes and other special-diet foods, and play angel investor to food startups like the one he started in 1977, Tee Yih Jia Food.

More On Forbes: Singapore’s Richest 2019: At 101, The World’s Oldest Billionaire Has No Plans To Slow Down

Today In: Asia

Goi knows something about building a brand. Privately held Tee Yih Jia (TYJ) today exports Asian food items such as spring rolls, glutinous rice balls and samosas to more than 80 countries. It’s now in the process of doubling its production capacity with a new facility due for completion in 2021.

Goi’s Singapore-listed development company GSH, however, has hit a lull. After a S$75 million windfall in 2017 from its sale of private-equity unit Plaza Ventures, net profits dropped 93% in 2018 to S$6 million on a 9% decline in revenues. That’s pushed GSH’s shares down 13% in the past year, helping pull Goi’s fortune down by $100 million.

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Goi arrived in Singapore in 1955 when he was six years old with little but the shirt on his back after his family fled China’s Fujian province in a small boat. Goi dropped out of high school, but used his training in a repair shop to gain a toehold in the food industry.

With S$450,000 borrowed from a bank and his father, he bought an underperforming food company and overhauled it, increasing production from 3,200 popiah skins a day to 25,000. In 1980, he brought in technicians to design the world’s first automated system for making spring roll pastries at the blistering rate of 30 million a day. He then branched out, pumping out fortune cookies, flatbread and samosas.

More on Forbes: Singapore’s Richest 2019: Daryl Ng Takes His Family’s Sino Group Into The Future With 5G, AI

Goi returned to his hometown in Fujian in 1985 and built his first China factory there, later adding a frozen-food facility, a brewery and a vinegar plant in other parts of China. Goi also snapped up land in China’s second-tier cities long before China’s property boom. Most of Goi’s exposure to property, though, has come through GSH, where he now has a nearly 60% stake.

TYJ also has a subsidiary in Yangzhou focused on developing residential and commercial properties in surrounding Jiangsu province. But Goi’s plans for TYJ are more food-related. Goi’s daughter Laureen, who runs TYJ Food Manufacturing, has been building a state-of-the-art food factory nearly four times larger than the present one in Singapore, with the latest in automation, including driverless vehicles.

The new facility will also have a laboratory developing new products, and TYJ may even invest in and incubate promising food ventures, furthering Goi’s legacy as a foodstuff innovator.

Correction: the original version of this story incorrectly stated Goi’s late son Ben was involved in TYJ’s factory expansion. It is his daughter Laureen. Also corrected is that the new facility is an expansion not a replacement of the existing manufacturing plant.  

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Pamela covers entrepreneurs, wealth, blockchain and the crypto economy as a senior reporter across digital and print platforms. Prior to Forbes, she served as on-air foreign correspondent for Thomson Reuters’ broadcast team, during which she reported on global markets, central bank policies, and breaking business news. Before Asia, she was a journalist at NBC Comcast, and started her career at CNBC and Bloomberg as a financial news producer in New York. She is a graduate of Columbia Journalism School and holds an MBA from Thunderbird School of Global Management. Her work has appeared in The New York Times, Washington Post, Yahoo, USA Today, Huffington Post, and Nasdaq. Pamela’s previous incarnation was on the buy side in M&A research and asset management, inspired by Michael Lewis’ book “Liar’s Poker”. Follow me on Twitter at @pamambler

Source: Singapore’s Richest 2019: ‘Popiah King’ Outfits Factory Buildout For Meat Alternatives

First Runner Up for Singapore Heritage Short Film Competition 2018

In A World Of Bubbles, Tokyo’s ‘Skyscraper Curse’ May Be Scariest

It’s been a medal-caliber few years for Japan’s property developers. Not Olympic gold of the kind Tokyo will award athletes 12 months from now. But construction ahead of the 2020 Games, building that’s been a godsend for Japan’s property developers. That will happen when the cost of staging a few weeks of sporting events explode to $25 billion from the $7 billion Tokyo originally estimated.

What if, though, the 2020 construction boom spells trouble for the century ahead? The reference here is to the “Skyscraper Curse” that may be rearing its head in the third-biggest economy.

Building related to Tokyo 2020 turned the Japanese capital into a giant construction site. Even developers unattached to the August 2020 Olympics have used the excitement to build new office towers throughout the city. Office space that, frankly, might have a hard time renting out floors two years from now.

Multinational companies, after all, continue to favor Singapore and Hong Kong (for now, at least) for Asian headquarters. And it’s not Shinzo Abe’s seven-year reflation scheme is catalyzing a startup boom to fill all that office space once the five-ring Olympic circus leaves town.

Today In: Asia

Mori Building recently unveiled ambitious plans to construct Japan’s tallest skyscraper, a title suddenly held by Osaka. This epic redevelopment project that will include offices, residences, shops, restaurants, a hotel, and an international school will come at a cost of 580 billion yen ($5.45 billion), which surely has contractors and rivals salivating at the possibilities. But there’s reason for broader caution.

One can quibble with the wisdom of putting a 64-story, 330-meter edifice in the center of one of the world’s most seismically active metropolises. It’s economic risks, though, that Prime Minister Abe’s office should be considering.

History betrays an uncanny correlation between world’s-tallest-building projects and financial crises. Roll your eyes if you want, but I’ve been covering the phenomenon for two decades. Here’s a quick recap of the last 112 years.

The Panic of 1907, when the New York Stock Exchange lost 50%, occurred just as Manhattan celebrated the opening of the 47-story Singer Building and 50-story Metropolitan Life North Building. The Great Depression that began in 1929 coincided with the New York christenings of 40 Wall Street and the Chrysler Building. Despair and homelessness spoiled the party over the 1931 opening the Empire State Building.

Fast forward four decades to New York and Chicago, the hosts to the world-topping World Trade Center and Sears Tower projects. Both opened as the Bretton Woods monetary system was breaking down and stagflation was fueling fiscal crises.

In 1997, Kuala Lumpur was quaking amid regional market turbulence just as Malaysia’s Petronas Towers came online. In the early 2000s, Taipei opened the world’s biggest architectural marvel in time for political turmoil at home and growing tensions with China, which views Taiwan as a breakaway province. The 2008 completion of Dubai’s 828-metre Burj Khalifa Tower dovetailed with the city’s bust, cascading oil prices and the “Lehman shock” a world away.

This is just the last 100 or so years of the Skyscraper Curse. Spiritualists may track the phenomenon back to the biblical Tower of Babel. But coincidence or not, it’s hard to miss the overlap between history-making economic disruptions and new architectural Guinness World Records entries.

The common, and indisputable, thread is ultra-low interest rates fueling over-investment and froth. Developers are always looking to harness the newest engineering and technological advances. That impulse gets supercharged by excess monetary expansion. It’s not surprising, then, that tallest-building projects often get green-lighted near the top-ticks of speculative manias.

Again, not the most solidly scientific of arguments. Yet Asian developers still engage in serious real-estate one-upmanship. South Korea’s tallest building, the Lotte World Tower, opened in 2017 just in time for President Park Geun-hye’s impeachment and imprisonment on bribery charges. Also in 2017, Shenzhen toasted the opening of the Ping An Finance Center, the No. 4 tallest building globally, as U.S. President Donald Trump was telegraphing his China trade war.

In Melbourne, the ongoing Australia 108 project aims to become the Southern Hemisphere’s tallest residential tower. A coincidence, maybe, but many economists worry Australia is veering toward its first recession in more than 25 years.

What about Tokyo? Abe’s seven-year revival project has been 90% monetary easing and perhaps 10% structural reform (and that’s being generous). All that liquidity, coupled with the construction boondoggle that is Tokyo 2020, has revived land prices in an otherwise deflation-traumatized economy.

As of February, the Nikkei Financial Review reported, Tokyo property prices, as measured by new condos, approached late 1980s bubble-period levels. Yet inflation is advancing just 0.6% year-on-year, less than halfway to the 2% target. And ominously, real wages are down six straight months now as Trump’s China trade war slams Japan’s export engine.

All this means the Bank of Japan’s historic easing has Tokyo construction sites buzzing with activity. The rest of the nation’s slowing economic regions, not so much. All that building is stellar news for property developers, but it’s also creating a bull market in concerns that Japan’s latest building boom could be, well, cursed.

I am a Tokyo-based journalist, former columnist for Barron’s and Bloomberg and author of “Japanization: What the World Can Learn from Japan’s Lost Decades.” My journalism awards include the 2010 Society of American Business Editors and Writers prize for commentary.

Source: In A World Of Bubbles, Tokyo’s ‘Skyscraper Curse’ May Be Scariest

The one-year countdown to the 2020 Summer Olympics begins! As Tokyo gears up to host the games, NBC’s Keir Simmons takes us around the amazing venues in Japan’s capital city. » Subscribe to TODAY: http://on.today.com/SubscribeToTODAY » Watch the latest from TODAY: http://bit.ly/LatestTODAY About: TODAY brings you the latest headlines and expert tips on money, health and parenting. We wake up every morning to give you and your family all you need to start your day. If it matters to you, it matters to us. We are in the people business. Subscribe to our channel for exclusive TODAY archival footage & our original web series. Connect with TODAY Online! Visit TODAY’s Website: http://on.today.com/ReadTODAY Find TODAY on Facebook: http://on.today.com/LikeTODAY Follow TODAY on Twitter: http://on.today.com/FollowTODAY Follow TODAY on Instagram: http://on.today.com/InstaTODAY Follow TODAY on Pinterest: http://on.today.com/PinTODAY #SummerGames #TokyoOlympics #TodayShow 2020 Olympics 1 Year Out: How Tokyo Is Prepping For Summer Games | TODAY

Societal Impact: Moving From “Nice-To-Consider” To “Business Imperative”

Over the past few years, societal impact has been growing as an area of interest for businesses. Business leaders, myself included, have voiced the belief that businesses should have a purpose beyond profits, and uphold a responsibility to society and the environment.

Although this school of thought is sometimes met with skepticism from those who doubt the commitment of businesses to do good, there is new research suggesting that businesses are actually taking significant action to improve their impact on society and the environment.

According to a new report from Deloitte Global, societal impact has become the most important factor organizations use to evaluate their annual performances, outranking financial performance and employee satisfaction. These findings are based on a survey of more than 2,000 C-suite executives across 19 countries. This shows a shift, even just from last year’s survey report, in which executives expressed uncertainty about how they could influence the direction of Industry 4.0 and its impact on society.

What is driving this change? There is no one answer. Almost half of executives surveyed (46 percent) reported that their efforts have been motivated by the quest to create new revenue streams, and a similar percentage said that initiatives that have a positive societal impact are necessary for sustaining or growing their businesses. An organization’s cultures and policies were also cited as motivation (43 percent).

External pressure continues to be a major driver as well. According to Deloitte Global’s series of inclusive growth surveys, some of this drive comes more from public sentiment, which is increasingly influencing business leaders’ decisions related to societal impact by encouraging them to reevaluate their strategies.

Purpose in action

When it comes to societal impact, businesses are beginning to put actions behind their words. Seventy-three percent of surveyed CXOs report having changed or developed products or services in the past year to generate positive societal impact. What’s more, 53 percent say they successfully generated new revenue streams from these socially conscious offerings.

While some leaders have started to see profits from positive societal goods and services, there is disagreement over the question of whether initiatives meant to benefit society also benefit bottom lines. Fifty-two percent see societal initiatives as generally reducing profitability; 48 percent said that such initiatives boost the bottom line.

Despite these concerns, leaders report a commitment to initiatives that benefit society.  There’s probably a short term vs longer term element in this regarding the sustainability of business which may have influenced the answers.

Strategically integrated

Beyond products, services, and new revenue streams, leaders are integrating societal impact into their core strategies. Executives say they have been particularly effective preparing for the impact that Industry 4.0 solutions will have on society. They’re also building external partnerships and joint ventures, and strengthening ecosystem relationships to make a greater impact.

Whether driven by finding new sources of revenue, or the need to respond to external pressures, businesses across all industries seem to be moving towards improving their societal impact. It is heartening to see that leaders are incorporating these considerations into their strategies, as well as operations. When societal impact is seen to be an integral part of a business’s makeup, the most meaningful results can be achieved.

To learn more read, “Success Personified in the Fourth Industrial Revolution: Four Leadership Personas for an Era of Change and Uncertainty.”

David Cruickshank was elected into the role of Chairman of Deloitte’s global organization, Deloitte Touche Tohmatsu Limited, in June 2015 having served on its Global Board for eight years from 2007. Prior to this, he was Chairman of the UK member firm from 2007-2015. He is a Chartered Accountant and a graduate in business and economics from the University of Edinburgh. David is co-chair of the World Economic Forum’s Partnering Against Corruption Initiative and a Board Member of the Social Progress Imperative.

Source: Societal Impact: Moving From “Nice-To-Consider” To “Business Imperative”

Today, many firms are active on social media, but not all of them are experiencing transformational change and return on investment. Why do some businesses succeed, while others fail? Join us for a fireside chat on why Social Business has become too important to delegate completely to a junior social marketing team and why going forward, CEOs, CMOs, management teams, and boards must personally own and drive Social Business strategy and re-architect traditional business models and client engagement models.

Fireside chat with Clara Shih, CEO and Co-Founder, Hearsay Social and Kristin Lemkau, CMO, JPMorgan Chase.

 

Shopify Cracks The E-Commerce Code, And Its Billionaire CEO’s Fortune Doubles In Just Six Months

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Tobi Lutke, the Canadian CEO and founder of e-commerce platform Shopify, has a net worth that’s doubled to $3.2 billion in just six months, thanks to his company’s skyrocketing stock.

  • The e-commerce platform’s stock, which trades on the New York Stock Exchange, has skyrocketed up 106% since mid February, when Forbes measured net worths for the 2019 list of billionaires. Shopify provides the online shopping engine for more than 800,000 customers, including Kylie Jenner’s beauty store Kylie Cosmetics.
  • Lutke, who was born in Germany, owns nearly 9% of the Ottawa-based company. He founded Shopify in 2004 after he and a friend had attempted to start an online snowboard shop out of Ontario and realized there were no efficient tools to help small business owners operate online. As winter ended and snowboard sales plummeted, Lutke told Forbes in a June 2018 interview that he decided to create Shopify.
  • Shoppers have spent over $100 billion on Shopify-powered sites since it began operating, according to the company.
  • Shopify had $1.1 billion in 2018 revenues, a 59% increase from the previous year.
  • Shopify’s $42.3 billion market capitalization is now larger than that of many big tech brands, including Twitter, Snap, Square and Lyft.
  • According to the Financial Times, Lutke prefers that his employees refrain from regularly checking Shopify’s stock price.

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Angel Au-Yeung has been a reporter on staff at Forbes Magazine since 2017. She covers the world’s wealthiest entrepreneurs and tracks how they use their money and power.

 

Source: https://www.forbes.com

Shopify COO Harley Finkelstein breaks down how the Canadian e-commerce platform creates economies of scale to give small businesses benefits that help entrepreneurs compete with giant retailers. » Subscribe to CNBC: http://cnb.cx/SubscribeCNBC » Watch more Mad Money here: http://bit.ly/WatchMadMoney » Read more about Shopify: https://cnb.cx/2vxmuPg “Mad Money” takes viewers inside the mind of one of Wall Street’s most respected and successful money managers. Jim Cramer is your personal guide through the confusing jungle of Wall Street investing, navigating through both opportunities and pitfalls with one goal in mind — to try to help you make money. About CNBC: From ‘Wall Street’ to ‘Main Street’ to award winning original documentaries and Reality TV series, CNBC has you covered. Experience special sneak peeks of your favorite shows, exclusive video and more. Get More Mad Money! Read the latest news: http://madmoney.cnbc.com Watch full episodes: http://bit.ly/MadMoneyEpisodes Follow Mad Money on Twitter: http://bit.ly/MadMoneyTwitter Like Mad Money on Facebook: http://bit.ly/LikeMadMoney Follow Cramer on Twitter: http://bit.ly/FollowCramer Connect with CNBC News Online! Visit CNBC.com: http://www.cnbc.com/ Find CNBC News on Facebook: http://cnb.cx/LikeCNBC Follow CNBC News on Twitter: http://cnb.cx/FollowCNBC Follow CNBC News on Google+: http://cnb.cx/PlusCNBC Follow CNBC News on Instagram: http://cnb.cx/InstagramCNBC Shopify COO: Servicing 820,000 Merchants | Mad Money | CNBC

 

 

A Recession Won’t Wreck Your Retirement…But This Will

Here is what matters if you’ve made it and want to keep it.Do the financial markets have your attention? I assume so. After all, Wednesday’s 800-point drop in the Dow was the worst day in the U.S. stock market this year. And while many investors missed it, the December 2018 plunge in stock prices capped off a 20% decline which started in October. That could have put a big divot in the plans of folks recently retired or in the late stages of their careers.

Stumbling at the finish line?

Demographics tell us that there is massive group of people who are between 55 and 70 years old. They are the majority of the “Baby Boomer” generation. Many of them have built very nice nest eggs, thanks to a robust U.S. economy over the last 40 years. That period of technological innovation and globalization of the economy also produced four decades of generally falling interest rates. That’s provided a historic opportunity to build wealth, if you saved well and invested patiently.

But now here we are, with a stock market near all-time highs and interest rates crashing toward zero. The tailwind that lifted Baby Boomers in their “accumulation” years may flip to a headwind, just in time for them to start using the money.

Focus on what matters

At this stage of their investment life, Baby Boomers are tempted from all directions. They are told to bank on index funds, 60/40 portfolios, structured products and private partnerships. And, while there are merits to each, I am telling you what I see as someone who has been hanging around investment markets since this Baby Boomer was a Wall Street rookie in the beloved World Trade Center in NYC: much of it is bunk. It’s a distraction. It’s a sales pitch.

Take these over-hyped attempts by wealth management firms to boost their bottom line and scale their businesses, and bring your attention to your own priorities. Today, as much as any time in the past 10 years, your focus should be on true risk-management.

That does not necessarily mean running to cash. That is an outright timing move, and it borders on speculation. But it does mean that the intended use of your accumulated assets (when you need it, how much you need, and how you will navigate the markets of the future) should be

inward-looking. It should not be based on trying to guess what the stock market is going to do.

Rate cut? Check. Inversion? Check. Giant stock market drop? We’ll see.

uncaptioned
Source: ycharts.com

The big news on Wednesday was the “inversion” of a closely-watched part of the U.S. Treasury yield curve. Translated to English, that means for the first time since 2007, U.S. Bonds maturing in 10 years yielded less than those due in 2 years. This is far from the first inversion we have seen between different areas of the Treasury market. However, it is the one that is most widely-followed as a recession warning signal.

The chart above shows 3 things that were essentially in sync around the time the last 2 stock bear markets began. The 10-2 spread inverted, but then quickly reverted to normal. The Fed cut interest rates for the first time in a while. And, the S&P 500 peaked in value, and fell over 40% from that peak.

Let that sink in, given what we have witnessed in just the past 2 weeks. Then, fast-forward to today, where we find ourselves in a very similar situation regarding inversion and the Fed. See this chart below:

uncaptioned
Source:ycharts.com

What stands out the most to me in that chart is how the spread between the 10-year and 2-year yields is almost perfectly opposite that of the S&P 500’s price movement. That is, when the 10-2 spread is dropping, the S&P 500 is usually moving higher. But when that spread starts to rise, at it is likely to soon, the S&P 500 falls…hard. As a career chartist, I just can’t ignore that.

I have been writing about the threat of an eventual “10-2 inversion” in Forbes.com since April, 2017. It finally happened this week, 19 months into what increasingly looks like a period of muted returns for investors. That is, if they follow rules identical to those they followed for the past 10 years.

Recessions are bad, but this is worse

We saw on display this week what I have been talking about since early last year: that it will not take the declaration of a recession to tip the global stock market into a panic-driven selloff that rips through retirement efforts. All that is needed is for stock prices to follow through to the downside is to actually see the market react to the preponderance of evidence that has been building for a while now.

In other words, it is the market’s fear of the future (recession) and not the actual event that is most important. By the time a recession is officially declared, you won’t need to react. The damage will already be done.

Specifically, a slowing global economy, excessive “easy money” policies by the Fed and its global counterparts, and a frenzied U.S. political environment. This has shaken investor confidence, and now the only thing that ultimately matters in your retirement portfolio: the prices/values of the securities you own, is under pressure.

What to do about it

First, don’t fall prey to the hoards of market commentators whose livelihood depends on progressively higher stock prices. Corrections are not always healthy, diversification is often a ruse, and long-term investing is for 25 year-olds!

For those who have “fought the good fight” to get to the precipice of a retirement they have darn well earned, the last thing they want is to have this inanimate object (the financial markets) knock them back toward a more compromised retirement plan.

The best news about today’s investment climate is that the tools we have to navigate through them are as plentiful as ever. Even in a period of discouragingly low interest rates for folks who figured on 4-6% CDs paying their bills in retirement, bear markets in stocks and bonds can be dealt with, and even exploited for your benefit.

Bull or bear? You should not care!

Maybe this is not “the big one” that bearish pundit have been warning about. Perhaps it is just another bump in the road of a historically long bull market for both stocks and bonds. But again, market timing and headline events like 10-2 spreads, recessions and the like are not your priority.

What your priority is, if you want to improve your chances of success toward and through retirement, is something different. Namely, to get away from the jargon and hype of financial media, simplify your approach, and take a straightforward path toward preserving capital in a time of uncommon threats to your wealth. I look forward to sharing insight on that in the coming days.

Comments provided are informational only, not individual investment advice or recommendations. Sungarden provides Advisory Services through Dynamic Wealth Advisors

To read more, click HERE

Follow me on Twitter or LinkedIn. Check out my website.

I am an investment strategist and portfolio manager for high net worth families with over 30 years of industry experience. A thought-leader, book author and founder of a boutique investment advisory firm in South Florida. My work for Forbes.com aims to break investment myths and bring common sense analysis to my audience. Connect with me on Linked In, follow me on Twitter @robisbitts. Visit our website at www.SungardenInvestment.com

Source: A Recession Won’t Wreck Your Retirement…But This Will

Creative Planning President and Founder Peter Mallouk discusses why he thinks the economy is in good shape, who should look to alternative investing and how to invest for retirement. He also discusses why he is not a fan of crypto.

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It’s August, and All of Europe Is on Vacation. How Do You Run Your Global Business?

Paid vacation time is mandatory in the European Union–four weeks is a minimum. That number can seem crazy to people in the United States, where it takes 20 years of service to reach an average of 20 vacation days a year–and even when we have it, we don’t use it all.

But, in my experience, Europe embraces vacation–sometimes in ways that make no sense. I’ve frequently found restaurants that close for two weeks during peak tourist season–because the owners want to take their own vacation time. I’d think they would close in the offseason and make money while they could, but the vacation culture is strong.

This summer, my family is basically staying put, for a variety of reasons. We’re making a couple of short trips, but otherwise staying in our home in Switzerland (which, admittedly, is a prime vacation spot in and of itself). And it’s impossible to get anything done.

My lawyer has been on vacation for the past three weeks and will be back next week. I have some things I need her to look at, and they have to wait.

Getting a doctor’s appointment? Good luck! At least the walk-in clinic runs year-round.

While this affects my day-to-day life because I’m physically here, it can also affect your business, even if you’re based in the United States. When someone says, “The Geneva office is closed for three weeks,” they aren’t joking, and no one around here even bats an eyelash. So, how do you do the international part of your business when everyone else is at the beach? Here are some ideas:

Plan ahead

This is going to happen every year. Some countries are worse than others, with everyone going at the same time. One of the problems is that European schoolchildren tend to have shorter summer vacations–six weeks is common–compared with the 10 to 12 weeks American schoolchildren get. Don’t cry for the poor, suffering schoolchildren here–they get an additional eight weeks throughout the school year.

But those six weeks are going to vary from country to country. German and British schools tend to get out at the end of July, while Swiss schools close the last week in June. So, you’ll have better luck with your London office in July than you will with your Swiss office. Go ahead and ask when peak vacation season is and plan accordingly.

Partner with larger companies

While small businesses can be excellent partners, if you will need people year-round, without fail, a large company will be a better bet than a small one. The multinational corporation isn’t going to shut down its Paris office for the summer, but the small business might close its doors for the entire month of August. Ask when you are building relationships. They won’t think to bring it up, because it’s often a normal part of doing business here.

Embrace vacation yourself

Go. Take a vacation. Step away from the office and your phone and your laptop. Europeans have proved that the world doesn’t end if you go on a vacation. If you’re good at what you do, people will be waiting for you when you get back. It’s OK to take some downtime.

Just make sure that if you do come to Europe for your vacation that the restaurants will be open in the small village you thought looked charming. Otherwise, you may be miserable during your vacation.

By: Suzanne Lucas, Freelance writer @RealEvilHRLady

Source: It’s August, and All of Europe Is on Vacation. How Do You Run Your Global Business? | Inc.com

How to Start a Business in 10 Steps

A little less than two-thirds of Americans want to start their own business. Perhaps surprisingly, this is true among both younger and older workers. Like the drive to write a book ( 81% of Americans) or work as a full time freelancer (soon to be half of all workers), starting your own business is a widely shared dream.

For good reason. People who work for themselves tend to love it. Although it comes with the complexity of having to manage every piece of an operation, as well as the stress of knowing that success rides completely on your own shoulders, there’s nothing quite like being your own boss.

Download Now: To be a profitable investor you first need to know the rules. Get Jim Cramer’s 25 Rules for Investing Special Report

It’s also very possible. Here’s how.

1. Research Your Market

This guide will assume that you already know what your business will do. If not, we have an excellent guide to coming up with your small business idea here.

Once you have your idea set, you need to do your research.

Starting your business will inevitably be a learning experience, but you want to get as much information as you can beforehand. So take some time to study your planned market. Ask questions like:

• What kind of competition will you face?

• Who is your target consumer?

• Where will you locate your business?

• What are the logistical and practical concerns about that location?

• What do consumers like and dislike about the existing market for your product?

• What do consumers say they want right now?

• What kind of spending power does your target consumer have?

Your market will be different depending on the nature of your business venture. A corner store has entirely different demographics and challenges than a web-based service vendor. In both cases, though, it pays to know your audience. Literally.

2. Write a Business Plan

The business plan is the blueprint for your company. It’s where you’ll apply your research and planning into one document that describes in detail the who, what, when, where, how and why of your new business. In it you will address issues such as:

• Who you will market to;

• What you plan to sell;

• When you anticipate hitting certain benchmarks, your timeline for development;

• Where you will locate this business, whether online or brick and mortar;

• How you will operate this business day-to-day;

• Why this business, what opportunity did you see in the market.

Your business plan should also address critical issues such as:

• Monetization and cash flow. How do you anticipate making your money and turning a profit?

• How much will it cost to run this business? Don’t miss the details.

• When do you expect to become profitable?

• Specific challenges you anticipate and how you will overcome them.

• What will it take, step by step, to operate this business and create this product?

The business plan article linked above goes into more detail, and the Small Business Association has a template here. Both are worth reading in further detail, because starting a business without a business plan is like setting off on a road trip without a map or GPS.

And, of course, don’t forget to pick a terrific name.

3. Get Feedback

Now stop.

Writing your business plan should be exhausting. This should be a detail-oriented document that takes a hard look at your planned venture and how, precisely, it will work. If you’ve done it right, by now you should be ready to tear into the building phase of your new business.

Instead, take a step back and solicit feedback. Call friends, family and colleagues who might have some knowledge of the industry you’d like to enter. Seek out mentors or professional guidance if possible. Get their opinion of your business plan. They might have questions you didn’t think of or notice something that slipped by you.

Hopefully this business will be around for years to come. You can afford a small delay while you get a few more eyes on your proposal.

4. Find the Money

Cards on the table, this is the hardest part for most entrepreneurs.

Not every business needs a lot of startup capital, but you will almost certainly need some. How much will depend a lot on what you want to do. A web-based services firm might require very little in the way of funding, while a retail store can require a substantial amount of cash to pay for rent, inventory and staff.

Regardless of how much, now is when you need to find this money.

This is something every entrepreneur faces, and small business owners turn to a variety of sources for startup capital. No matter where you get funding, expect to invest at least some of your own money. Lenders and investors will want to see that you have “skin in the game,” to use industry speak. Beyond your personal accounts, called self-funding, small business owners also rely on:

Bank Loans

Many businesses start with a small business loan from local banks.

You will need to have all of your paperwork in order to pursue a loan. Expect the institution to ask for details from your business plan, including monetization strategy and financial projections. If you have trouble securing a loan, you can turn to the Small Business Association which runs a loan guarantee program to help make this type of financing more accessible.

Personal Loans

While not an option for every entrepreneur, many people do rely on loans from family and friends.

If possible this is typically better than securing a loan through the bank. You’ll likely pay little interest and will have more generous terms in case of default. However, it also depends on knowing people who have that kind of cash lying around.

Grants

While not lavishly funded, programs such as Grants.gov operate small business grants for entrepreneurs.

Investment

Professional investors typically look for potentially large-growth business opportunities. Depending on the nature of your intended company, this could be a good fit for you.

A venture capital firm is unlikely to sink money into a small legal practice or restaurant. These tend to be low-growth relative to the returns that they seek. However, someone looking to launch a new product or web-enabled service, something with high potential scalability, might be a good fit for the private investment model.

Local angel investors, such as those found through AngelList, are more likely to invest in a regionally focused business. While beyond the scope of this article, you can learn more about finding private investors here.

Crowdfunding

Crowdfunding has become an increasingly common source of startup capital for small businesses. This model tends to reward retail style projects (someone looking to create a specific thing that catches the public’s eye). It can also be an excellent way to hone your sales pitch to a general audience.

For more information on financing, the SBA has a comprehensive information sheet on common sources of funding here.

5. Choose a Location

Where you locate may determine some of your legal obligations and paperwork, so it’s best to get that done at this step.

As much as possible you should try and do this with specificity. While you’re not ready to sign a lease just yet, the closer you can come to a specific address the better. Meanwhile, if you’ll be starting this company online, now’s the time to pick up your domain if you haven’t already.

Pay attention to local laws! We cannot overemphasize this. The best location can be killed off by a zoning ordinance that makes your business illegal on that particular street corner. Municipal laws can be petty and confusing, so make absolutely sure your business is street legal.

6. Establish Legal and Tax Structures

If at all possible, at this step you should retain the services of a lawyer and/or accountant. You will absolutely want professional advice. Otherwise, you run the risk of missing details that come back to bite you down the road. We also must note that nothing here constitutes legal advice. This is just a general primer on what you need to know.

Now is when you’ll actually begin forming your business and filling out the necessary paperwork with federal, state and local governments. This can involve (but is not limited to):

Choosing Your Corporate Structure

There are many types of businesses you can form, including LLCs, S-Corporations, partnerships, sole proprietorships and more. Those listed here are the most common corporate forms for a small business. The right one for you will depend on issues like cash flow, number of participants and how you want to structure potential liability. You can read more about this issue here and here.

Register Your Business

How you have to register, and with who, will depend on your specific corporate form. However, if you have formed a corporation of some sort you will have to file articles of incorporation to create this legal structure. For more information on registering your business, see this resource.

Register With State and Federal Tax Agencies

You will need a tax number and may need an employer ID number. The SBA has a guide to finding and filling out your appropriate tax forms here.

Determine Any Licenses and Permits That You Need

Depending on the nature of your business, you may need a license to operate. The SBA has a database of federal and state licensing requirements here.

Be certain to also look up zoning and location-based regulations. You may need additional permits based on where you’ve chosen to operate your business. These are typically a city-level concern.

7. Open Bank Accounts and Sign Leases

Once your business has been properly formed you can begin to act in its name. Now is when you can start actually executing on many of the opportunities you’ve already lined up.

Open bank accounts in your new business’ name. Take out a corporate credit card and, if your bank offers it, work to pre-establish a line of credit. You will find this easier to do now that your company exists and has established funding, although it may not become an option until you have operated for some time.

Go out and actually get the funding you secured earlier, because now you have someplace to put it. You should have already gotten the “yes” by now from someone, but you don’t want to deposit corporate seed money into your personal checking account. This may technically constitute a felony that rhymes with “schmembezzlement,” and is poor form either way.

With the money in hand and a functional checkbook, now is when you sign the necessary leases on real estate.

8. Take Care of Little Details

Once again step back and take stock, because the best ideas can be broken by the smallest details.

Make sure your business has comprehensive insurance for issues ranging from fire to property damage and legal liability. Many business owners overlook that last issue, and it can be a career killer if someone slips and falls or even just decides they don’t like you.

If you will hire employees put a documented process in place for hiring and firing. Have your workers compensation and unemployment insurance paperwork filed and in order.

If you haven’t already, talk to both a lawyer and an accountant. This is especially critical if you will employ people. Even if you don’t formally retain an attorney, buy a few hours of an employment lawyer’s time to make sure you have your bases covered. Figure out how your business will do its accounting and have that system set up and operational, whether you’ll do it yourself or have hired a professional.

9. Start Making Things

Now, at long, exhaustive last, we get to the fun part. It’s time to start actually making things.

You have the money, you have the location. You have all of your paperwork filed and are legally bulletproof. Now begin making your product.

How you do this will, obviously, depend entirely on what you specifically do. A manufacturing company will need to source suppliers for raw materials and the necessary machinery. (Because you took our advice and checked out all the local laws you won’t need to worry about any noise complaints from the neighbors.) A retailer will source vendors and set up an inviting, fun storefront. A consultant will finish making her office look tasteful and professional.

A restaurateur should stock the kitchen, buy appliances and write out a menu.

The details of getting to work depend entirely on your industry and profession. Fortunately, you’ve got a well written business plan for figuring out what those details are. Whatever you do, though, now’s the time to start actually doing it.

10. Scale and Hire

Your business is operational. Now’s the time to think about how to keep the lights on.

Some businesses will require employees from the very beginning. A cafe, for example, is almost impossible to run alone. Those employees are part of your startup costs and will be with you from the very beginning. As your business grows you may have the luxury of hiring more people to take some of the work off your plate.

Now is also the time to begin marketing.

To be fair, this is something you should be considering all along. You should always think about how to get your business’ name out into the community. Don’t let up once the doors open. Look to social media, advertising, foot traffic and local networking to get people in. Talk with other businesses in the area about collaboration efforts.

This is where you get to be creative. This is the fun part of being an entrepreneur. If you’re at step 10 you’ve earned it. So enjoy, because this is your business.

Source: How to Start a Business in 10 Steps – TheStreet

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