Business Lesson: Fail Early

To put it simply, failing early means learning to let go when its time to. This is really more an emotional issue than anything else.

I am reminded of the “Serenity Prayer”:

“Lord, give me the serenity to accept the things i cannot change.
The strength to change the things i can.
And the wisdom to know the difference.”

The step of failing early (letting go) takes a lot more wisdom and emotional strength than what we humanly possess. (more…)

Some might find this curiously paradoxical to what entrepreneurship is all about. Don’t we start businesses to profit from it and to make lots of money? Yes, profit and wealth are indeed desirable end-goals of starting-up. However, given that 9 out of 10 businesses fail within the first year, one would suspect “failing” to be a curiously frequent occurrence amongst entrepreneurs.

Most entrepreneurs know the sweetness of success - more so when all their previous start-ups had failed before. All too often, we celebrate the successes of spectacular entrepreneurs, ignoring the fact that they may have failed many more times before. (more…)

As promised, here’s an analysis of why and how i sold my 2nd company in 2006.

Business Lesson: Price Correctly - charge them the perceived value of your products & services.

Although I am proud to say i didn’t have to prospect (ie. make cold calls) for a single day in the 2 years i was running eNeighbourhoodStore, but having friends as clients is a double edged sword. On the one hand, they are a reliable source of business leads and referrals. On the other hand, they won’t hesitate to ask for”friendship prices”.

“Friendship prices” means i charge very close to cost and oftentimes lower than my competitors. I wanted to give my clients / friends the best service possible; i aim to please. I wasn’t detached enough from the deal to charge based on the perceived value of my product and services.

This would cost me dearly. (more…)

Coming into year 2 of the business, i was faced with a dilemma… the company was growing and i needed additional fund injection to grow the business.

The projects were coming in fast and we need to hire staff. With new headcount will require new computers and more furniture / office desk space. More desk space means i have to pay rent soon. I have to get a proper company bank account (to start write invoices payable to my company name). The company was making money - but just enough to keep us afloat, not enough to grow. (more…)

I had always wanted to start a business catering to the small mom-and-pop stalls in the HDB heartlands. Thus, i christened my new business eNeighbourhoodStore (ENS).

The 2nd start-up was a little bit more tricky as i didn’t have anyone to help bankroll the operations. So i had to put my own money in - and be frugal about it.

Very early on, i realised that i cannot work from home. The multiplicity of temptations (fridge, TV, bed) is beyond what my weak mind could handle :). So i needed an office space - preferably in town cos all my clients will be from around here. Office rental in town area is not cheap… and i was a little apprehensive of sinking expenses even before i earn a single cent. (more…)