The last of the 3 crates on the lorry back to their origin
Today is the day I finally closed one chapter in my life, in a joint venture business. I set up a QA test business based in Singapore in 2012 and try as we might, the partner and myself (mainly) just got it all wrong.
The 3 crates are the final symbol of what once was a company which employed 10 people, in Thailand, Malaysia and Singapore and provided test services for all manner of Quality Assurance tests ; primarily to the electronic and semiconductor segments in the region.
I was stupid to even consider the venture, not having studied the market properly and was blinded by the fact that I thought I had enough relevant experience to weather the initial times of name non-recognition till the market finally accepted a new entrant.
After much haggling and pain, the big monster equipment is sent home
Valuable lessons I learnt from this business failure :
a) never ever believe you know everything there is to know about the market, the
projected economic conditions and bet on a market segment which there are many
players.
- NEVER EVER THINK YOU CAN OUTSMART THE MARKET.
b) I should have studied what was the value added and unique value we offered to our
customers from day 1. I overlooked it and paid the price.
- DO YOUR HOMEWORK WAY IN ADVANCE, ASK THE MOST CONSERVATIVE AMONGST YOUR FRIENDS AND THEN SOME
c) I should have cut losses as early as year 1 ; rather than let the venture continue for
another 3 plus years where the overheads were still high, but staff were slowly not
replaced. The Malaysian operations was shut down in 2013, when it should have
been closed a year earlier. The rental of the entire unit of the industrial building was
another big operating cost factor. My current business is operating at 1/4 the 2011-15
rental costs and 1/10th of the staff costs during those crazy days.
- COSTS COSTS COSTS. KEEP THEM AS LOW AS POSSIBLE FROM DAY 1. NOTHING ELSE MATTERS. IF YOU DO GO INTO BUSINESS, ONCE THE INDICATORS DON'T SEEM RIGHT. GET OUT EARLY ELSE FACE THE OF RISK GETTING BURNT.
2 other smaller equipment components on their way back
The happy news it that the failure has been a great learning lesson for me. There are several good aspects which came out of this experience and which I am putting to practice in my current company, so accepting that I failed, lost money and made myself look so foolish is in my psyche. I have vowed never again to go into any venture too full of my capabilities. Luck also plays its part in ensuring whether my life or my business is a success or failure.
LESSONS LEARNT FROM THIS FAILURE I HAVE APPLIED TO MY CURRENT BUSINESS AND IT CONTINUES TO EVOLVE WITH THE MACRO AND MICRO ENVIRONMENT.
BEAR THIS IN MIND
1.WE KNOW WHAT WE KNOW (LEARNED ACADEMIC AND HEURISTIC KNOWLEDGE)
2. WE KNOW WHAT IS UNKNOWN (WE KNOW THERE ARE THINGS WE DONT KNOW)
3. WE DONT KNOW WHAT WE DONT KNOW. (WE DON'T EVEN KNOW THERE
ARE THINGS OUT THERE IN SHAPE, FORM, PERSON OR ROBOT WHO OR
WHICH MAY CAUSE CHAOS TO THE ENVIRONMENT AND HENCE TO OUR OWN
EXISTENCE.
Money which you earn, or attain through a windfall, inheritance or just dumb luck can easily go down the drain very fast.So hold on to it, and keep it in the safest denominations or vaults possible.
My goal ever since that Failure is to Work hard to make myself relevant, keep costs to a minimum and earn enough for a decent retirement. There is so little time and opportunities left to while away.
Keep healthy, and love and care for those who mean the most to me.
Seize the Day.
