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20 Habits Of Highly Successful People

It’s more than money and incredible thoughts. The level of progress you accomplish in your life is to a great extent a consequence of the things you manage without thinking–your habits.

It’s nothing unexpected then, that the propensities for individuals like Tony Robbins, Bill Gates, or even Oprah Winfrey, can differ definitely from those of the normal individual (that is most likely why they’re NOT normal). Anyway, here are 20 habits for profoundly effective individuals, to consolidate into your every day life.

1. They’re always hunting for solutions.

  • Profoundly effective individuals search for, and discover, openings where others see issues.

2. They don’t play the blame game.

  • Rather than accusing others, they assume liability for their activities and results (or deficiency in that department).

3. They focus on their strengths.

  • The best individuals on the planet boost their potential by concentrating on their solid focuses, and reinforcing them. Thus, they utilize what they have been given in a powerful and proficient path, to get the most out of what they have.

4. They’re efficient.

  • They are not recently occupied, but rather gainful and proactive. They’re the general population who “can’t sit still” and thus, run over significantly more open doors.

5. They choose their friend wisely.

  • The effective encircle themselves with constructive, similarly invested individuals. They comprehend that there is nothing more costly than a negative idea. They additionally realize that in the event that you encircle yourself with 10 fruitful, elite individuals, you will probably turn into the eleventh.

6. They’re authentic.

  • Very effective individuals develop as opposed to mimic. They realize that the greatest open doors lie in innovation (originality).

7. They take more and greater risks.

  • Just by going out on a limb – money related, passionate, expert and psychological, are you ready to accomplish the phenomenal.

8. They have a plan.

  • Instead of let chance follow through to its logical end, the best individuals have an authoritative arrangement for their life and business. They don’t simply experience life giving things a chance to transpire, adjusting to the conditions they end up in. Effective individuals work systematically at transforming their plan into a reality.

9. They aren’t stuck in the past.

  • A key habit for profoundly fruitful individuals is that they are versatile and grasp change. They are comfortable with, and acknowledge, the new and the obscure.

10. They persist.

  • The street to achievement is sliced through disappointment. Exceptionally effective people must make being versatile a habit. At the point when most would quit, they are simply beginning.

11. They let go of the small things.

  • It’s difficult to put 100% of your vitality into development and extension in case you’re always giving the little things a chance to overload you. The fruitful oppose investing at whatever time or passionate vitality on things over which they have no control.

12. They walk the walk.

  • Keeping in mind the end goal to pick up the certainty and regard of others, very effective individuals realize that they should try to do they say others should do. Fruitful individuals don’t discuss things in principle, they talk as a matter of fact.

13. They make healthy choices.

  • Best individuals know to remain fit as a fiddle and comprehend the significance of physical well-being. They know their innovative power and business capacity is straightforwardly connected to their own physical prosperity.

14. They are confident but not arrogant.

  • Those who’ve made huge progress realize that certainty is intermittently the deciding variable in whether an arrangement is made. By accepting and confiding in yourself, you impart to others that you are deserving of their certainty.

15. They are generous.

  • Effective individuals work from a point of view of wealth. They trust that there is sufficient achievement, money, and open door for everybody and are upbeat to help other people on their journey.

16. They don’t grumble.

  • Grumbling places you in an adverse and ineffective state, and effective individuals don’t squander their vitality on pessimism.

17. They have fears but they don’t control by them.

  • Successful individuals work past their feelings of dread to beat them. They revolt at being confined by their own trepidation.

18. They are ambitious.

  • As opposed to make due with normal, high achievers go after stunning. Thus, regardless of the possibility that they miss the mark, they are as yet accomplishing great better than expected.

19. They don’t procrastinate.

  • They realize that now is dependably the “correct time”.

20. They’re optimist.

  • They are not surpassed by uncertainty, they have confidence in their own capacity and that the best is yet to come.

 

– SUCCESSFASTLANE.COM

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How Your First Board of Directors Shapes Your Company

Congrats! You’ve developed your business, and your organization has extended. It’s a great opportunity to gather a top managerial staff to help ensure, administer and deal with all you’ve manufactured.

The uplifting news: You’re sufficiently fruitful to require a board of director (BOD).

The awful news: You’ll never again be totally your own supervisor. Picking the general population who will serve on your BOD is basic – particularly on the off chance that you don’t need them to fire you.

Why create a BOD ?

BODs exist to speak to the enthusiasm of all shareholders. On the off chance that you keep up 51 percent of your organization’s value, then the board really replies to you. In the event that you took venture capital, weakened offers or even opened up to the world, then odd are you answer to the BOD. The shareholder dependably is the supervisor. The BOD fills in as the shareholders’ illustrative and has specialist to execute their will, which could incorporate supplanting you.

The BOD administers organization operations. The substance acts as a group of ordinarily of at least five individuals who have learning about your industry, markets and rivalry. BODs regularly are separated into a few subgroups, or boards, each with an attention on a key part of your business:

  • Audit Committee: A minimum of two members qualified to read and interpret financial statements
  • Corporate Governance Committee: Ensures the company is following all government regulations and corporate laws (and if you are public, listing regulations)
  • Nominating Committee: Identifies candidates to fill BOD and senior-management roles

Your full BOD will meet quarterly, however colleagues can meet as required. At the point when the full board accumulates, its essential employment is to impart. Individuals will get a monetary announcement, hear covers legitimate or administrative issues and find out about progress from every board of trustees.

These essential announcing exercises keep the board educated so individuals can consult with top administration about the organization’s condition and standpoint. Since legitimate matters may rotate around these talks, full and finish records must be caught and safeguarded. It’s fundamental for your general or outside insight to go to and give logical comprehension to any lawful issues that emerge.

The CEO’s dilemma

Your BOD individuals ought to know your industry, and there are times they’ll second-figure the vital choices that you and your official group make. The transient cravings of shareholders can be contrary to the long haul vision of the CEO, particularly an establishing CEO. At the point when the two interests wander too extraordinarily, clashes emerge amongst BOD and CEO. For the most part, CEOs who push too far or too quick lose ground and frequently are supplanted.

This is the CEO’s situation when choosing board individuals. Stacking the board with adoring sycophants decreases the point of view the BOD can offer the CEO. Pioneers advantage when many eyes watch from the top. Yet, a BOD effectively influenced by the whimsical way of financial specialists and their craving for here and now benefit can expel genuinely visionary CEOs and pulverize world-evolving missions.

The objective, then, is to select people who comprehend and share the CEO’s vision yet generally play out the due steadiness of unbiased board individuals. The two extremes ought not be in struggle. On the off chance that contention emerges, one of three inadequacies normally is to be faulted: The pioneer’s vision isn’t right, the board individuals are poor fits or the shareholders don’t have the correct speculation skyline for your organization.

-ENTREPRENEUR.COM

 

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7 Principal of Business Models

The Business Model Archetypes are seven principal business “identities” whereupon any plan of action can be produced. By giving the setting of every single accessible model, it ends up noticeably less demanding to perceive how organizations relate and bearings in which organizations can rotate. In this article, we’ll talk about the model and the paradigms, and also depict utilize designs where the models may profit business visionaries and item strategists who utilize the model.

Background & Context

The reason for a plan of action is to compactly depict the capacity of your business inside the general market scene, including points of interest, for example, business sources of info and conditions, target client base, and the esteem being made for those clients. By utilizing such a calculated build for assessing a business, strategists can all the more effectively comprehend the capacity of the business, distinguish qualities, shortcomings, and openings, by looking at the characteristics of other comparative organizations who might utilize a comparable auxiliary model.

While the idea is extraordinary, the estimation of such an activity is lost on numerous item supervisors, who require something more minimized and quickly usable. There is a developing library of mainstream models that pass by names like ‘Razor and Blades’ and ‘System Effects Business’ which depict famous models that have been effectively utilized by different organizations, yet the learning is diffuse and there is little association or setting from which to effortlessly find and analyze display alternatives that might be proper for a business. The net outcome is that unless you have formally contemplated business methodology, there’s a decent possibility you don’t know about these known models, and in this manner the knowledge they speak to is not utilized. It is basic however for item directors to unmistakably explain the capacity and contact of their business in the market.

It was on account of this test an alternate approach was created, called The Business Model Archetypes. The idea is gotten from work via Carl Jung, the twentieth century Psychiatrist who proposed there are key identity formats from which we as a whole acquire and join ascribes to make our own particular identities. By understanding the basic layouts he trusted, you could better comprehend the identity of an individual, and foresee their reaction to an assortment of jolt. He called this hypothesis, the Personality Archetypes.

Jung’s idea is additionally applicable to the crucial identities of a business and gives an amazing auxiliary base from which to recognize the range of conceivable formats. On account of organizations, there are three essential identities that portray the central interests and exercises of each business. What’s more, like an added substance shading wheel, three optional originals are determined by brushing properties of the three essential paradigms:

PRIMARY

Product – one time purchase of an artifact
Service – manually doing something and charging a fee
Trade – Connecting buyers and sellers for commerce

SECONDARY

Brokerage – providing trade as a service
Subscription – productizing and semi-automating a service
Marketplace – productizing trade with a self-service platform
Ecosystem – Platform that combines all three (Mature)

About the Model

These seven prime examples are abnormal state reflections that portray essential truths about classifications of organizations. This can be useful for recognizing a summed up setting from which to figure out where in the range of conceivable outcomes to center your endeavors, yet it is not sufficiently particular to be noteworthy. For this, two models were added to each of the model prime examples. A model is a more particular and practical exhibit of what is conceivable inside a model prime example.

To exhibit this thought, the Trade original has two model cases: eCommerce and Lead Generation. Both are cases of sourcing something of significant worth and conveying it to the market available to be purchased. In both cases, cash is made on the spread between the cost of obtaining the thing and what it can be sold for by the dealer by taking it to advertise and advancing it. Additionally programming and substance are the two most normal sorts of items to offer on the off chance that you are an online business.

Having the capacity to see the range of auxiliary choices is an awesome place to start thoroughly considering the system of your business. Commonly, groups will discover they relate more emphatically to one of the prime examples than the others, yet while assessing their alternatives all the more intently, they may have the capacity to sensibly turn to the neighboring models, giving extra open door and possibly even a more creative and powerful way to deal with their business. An all around associated Trader for instance may discover enthusiasm for extending their business through a Brokerage show, by giving Dropship satisfaction of their items. Or, then again they might be occupied with building a classification driving brand online by setting up the go-to Marketplace for the sorts of items they have some expertise in.

The critical indicate is set aside the opportunity to do the investigation and to comprehend the essential capacity of your business and to consider the conceivable minor departure from your topic that may be more ideal that what’s going on with presently. That is the place the Business Model Archetypes structure is helpful, by furnishing an applied system with which to thoroughly consider the conceivable open doors you might not have considered. Toward the day’s end, each item chief have the capacity to obviously express their business’ foundational methodology and to comprehend their unique situation and development and turn choices – this structure gives an improved technique to accomplishing these objectives.

About the Archetypes

Here some brief explanation of each of the archetypes to demonstrate further:

1.Product

This essential original concentrates on the advancement of a substantial relic that can be purchased and sold for a one-time cost. The item is generally expended either on the grounds that it gives individual stimulation, or in light of the fact that it offers some pick up of effectiveness and can be gained for less cost than employing an administrations organization to play out a movement. At the point when connected to the online world, the most widely recognized sorts of items are programming as modules for real stages, for example, WordPress, or substance as portable applications of eBooks. Demonstrative Attributes

 

  • Key partners: Marketplaces
  • Value proposition: Productivity or entertainment
  • Key Activities: Product Development
  • Monetization: Sale of product.

2. Subscription

This optional model is a prevalent mix of an item and an administration. The most well-known illustrations are programming as an administration (SaaS) and Content as a Service (CaaS). As opposed to purchasing a substantial item one time at a most extreme cost, the membership demonstrate gives proceeded with access to the item or administration for a lesser month to month cost, and keeps on refreshing, enhance, and bolster the item over its lifetime. The advantage for the business is a lessening in advance cost, decreased reliance upon a commercial center, and a proceeded with association with the client. For the client, its additionally an approach to decrease in advance cost, and ofte implies approaching more and preferable assets over on the off chance that they expected to buy the unmistakable equivalent.

  • Key partners: Ecosystem platform owner
  • Value proposition: Customization and support of platform
  • Key Activities: Customization and maintenance
  • Monetization: Time and materials

3. Service

The third essential model gives impalpable answers for clients and customers, where commoditized items are not adequate. Frequently this is as combination, upkeep, or customization of a prevalent stage arrangement. Normally this sort of association is framed by an association of talented experts who offer their administrations for a hourly rate.

  • Key partners: Ecosystem platform owner
  • Value proposition: Customization and support of platform
  • Key Activities: Customization and maintenance
  • Monetization: Time and materials

 

 

4. Brokerage

This an auxiliary prime example which consolidates the exercises of Trade and Service by exchanging for the benefit of customers, as an administration. These organizations commonly benefit purchaser confronting brands that attention on showcasing and need help with more proficient sourcing. Model cases of this sort of business incorporate publicizing systems which give online movement sourcing to brand retailers, and dropship programs which regularly have further sourcing connections, and preferred satisfaction connections over the brands they benefit.

 

  • Key partners: Wholesalers
  • Value proposition: Efficient commodity procurement
  • Key Activities: Recruiting Wholesalers
  • Monetization: Base fee plus commission

5. Trade

The essential prime example of Trade concentrates on associating purchasers and merchants. Cash is earned by purchasing an item for short of what it IS sold for. The merchant’s essential occupation is sourcing something of significant worth “in the field”, bundling it, and making it promptly accessible to the individuals who crave it. Prototypical illustrations incorporate the eCommerce retailer and lead era. In both of these illustrations, the Trader sources something, qualifies and sets it up, then pitches it to a client. On account of lead era the conduct is the same as retail, with the exception of that the item is data about a client prospect.

 

  • Key partners: Product sourcing and advertising
  • Value proposition: Low price, convenience, and curation
  • Key Activities: Sourcing and advertising
  • Monetization: Product arbitrage

6. Marketplace

The Marketplace is an optional original that joins traits of the essential Trade and Product models. It unites purchasers and venders for exchange, however it does o by means of self-administration stage which itself is item. The item could be a physical shopping center or an online innovation stage that encourages installment preparing and factual revealing. What is sold in a commercial center can either be substantial items or administrations. In both cases, the esteem and the viability of the commercial center is influenced by Metcalfe’s law (otherwise known as Network Effects): the estimation of the system exponentially increments with each new hub on the system. This can be an effective dynamic that manages a commercial center once minimum amount is accomplished, however it can likewise be somewhat hard to achieve minimum amount in any case.

  • Key partners: Merchants (sellers)
  • Value proposition: Destination shopping
  • Key Activities: Recruit vendors and advertise
  • Monetization: Commission per sale

7. Ecosystem

The Ecosystem is the main Tertiary paradigm in this model, in that it consolidates every one of the three essential originals – Product, Service, and Trade. This is the rarest and most troublesome paradigm to accomplish yet is the more alluring. Accomplishment with one essential or auxiliary prime example conduct normally opens up the chance to expand the brand into complimentary and synergistic offerings. An item maker for instance, may begin to offer administrations in support of their item. On the off chance that that too is effective, they may start taking a gander at how to encourage commercial center exercises and a large group of other strong practices. The majority of the synergistic movement digs in the brand as a market pioneer, and adds to the esteem chain and saw estimation of the client. Run of the mill model cases of a biological community are the innovation stage (Salesforce CRM, Microsoft, and so on) and the media stage (NBC, Facebook, and so on).

  • Key partners: PaaS providers
  • Value proposition: Turnkey software and management
  • Key Activities: Develop software and manage servers
  • Monetization: Subscription fee

 

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Malaysian Franchise Act Simplifies Entrance To Market

Kuala Lumpur, Malaysia – Any U.S. company seeking to sell franchises in Malaysia must write a letter requesting approval from the Registrar of Franchise Ministry of Entrepreneur Development, Malaysia, according to Mahadi Mohd Ibrahim, ministry undersecretary.

The letter must include a statement of the company’s intent to sell a franchise in Malaysia, as well as information on the products, the company and the prospective franchisee. The ministry will reply within seven days after receiving the letter. No request has been rejected since the act was passed.

“This is a significant development for franchise companies that want to tap the Malaysian market,” said Marcel Portmann, International Franchise Association (IFA) vice president of emerging markets and global development. “IFA began discussions in 1999 with Malaysian officials on behalf of our members for simplification of the registration process, and those efforts have paid off with positive results.”

Prior to clarification of the act, U.S. companies wishing to sell franchises in Malaysia were required to submit a disclosure document, the franchise agreement, the operation manual, the training manual, the company’s latest audited financial statements and auditor’s report, and any additional information required by the registrar.

“The registration process was extremely complex and deterred franchise companies from exploring the Malaysian market,” Portmann said. “Now there is a whole section of the global market open to IFA members.” –IFA Insider

-ENTREPRENEUR.COM

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Funeral Business Makes David Kong One Of Malaysia’s Richest

When David Kong had the idea for a funeral-services business in Malaysia back in 1985, no one would listen. Banks wouldn’t lend him money. Local authorities wouldn’t approve his application to open a cemetery. He quickly learned that profiting from a loss was not seen as a “decent” way to earn a living, though in the U.S. and elsewhere the industry had long thrived.

But Kong persevered. Today his Nirvana Asia is Southeast Asia’s largest full-service funeral company. It embalms, buries and cremates. It designs caskets, builds tombs and provides niches for mortal remains. It organizes bereavement services, most often with the rituals and prayers of ancient Buddhist and Taoist cultures.

It’s a strange business. The products and services are part of the realm of culture, religion and tradition. The custodians are monks and priests and the ancient spiritual texts of last rites. “Every life deserves a curtain call,” he says during an interview at his 18-story Nirvana Center in downtown Kuala Lumpur. “We celebrate life and its achievements and make sure that the transition to the other world is dignified, respectful and easy for both the deceased and their loved ones.”

It’s also been a lucrative business for the 61-year-old Kong, who is also known as Kong Hon Kong. Last month he took the Hong Kong-listed company private in a deal with London’s CVC Capital Partners that valued the company at $1.1 billion. The firm bought a 43% stake while Kong collected $200 million; he still owns 38%, down from 42.7%. He’ll continue to run the company. An earlier investor, Orchid Asia, holds the other 19%.

In March Kong debuted on FORBES ASIA’s list of Malaysia’s 50 richest people at No. 34, with a net worth of $550 million. But his fortune is now estimated at $720 million.

CVC is investing in a big operation. Nirvana runs 13 cemeteries, 14 columbaria, 2 funeral homes and 6 crematoriums in Malaysia, Singapore, Indonesia, Thailand and China. It controls 31% of the death-services market in Malaysia and 35% in Singapore, according to research firm Frost & Sullivan. Those shares are at least five times larger than its nearest rival in each country. It’s expected to generate $52 million in net profit this year on revenue of $171 million, according to Bloomberg. “Kong has woven magic,” says Liew Kee Sin, chairman of Eco World Development, who has known him for two decades. “He has changed a social taboo into a business that invokes the blessings of the gods and puts you at ease with the inevitable. People now talk about their own death, plan for it and are no longer afraid of it.”

Following a strategy of market segmentation, Nirvana offers its packages at multiple price points. A burial plot in a premium location could cost $2.5 million and a gold-plated coffin as much as $350,000. Its more than 3,000 agents sell what are called “pre-need” packages to customers as young as 40 who are planning ahead. Some 85% of the company’s revenue comes from selling services that may not be used for years.

Nirvana agents range in age from 30 to 45, defying the notion that death care is a gloomy industry that would have trouble attracting young talent. Says Casey Liew, 33, a former bank executive and a graduate of Adelaide Business School who joined Nirvana in 2014 as assistant manager, corporate sales & marketing: “This is a great learning ground. The company understands the customer’s needs, is constantly innovating and creating products for different cultural sensibilities, backgrounds and even the world beyond.”

In Kuala Lumpur, Nirvana billboards are ubiquitous, making the company a household name. One of its brands, Baby Paradise, caters to parents who have lost a fetus or a child. Its “White Ladies” are recognized for their cosmetology and makeup expertise and their sensitivity in dealing with women customers.  In Indonesia, where Nirvana is the second-largest player, its services are sold under the brand name Alam Lestari Hijau, or “sustainable, natural, green.”

Nirvana’s Memorial Park in Semenyih, outside Kuala Lumpur, has become a tourist attraction. Its memorial hall draws on ancient Chinese history, architecture and intricate gold ornamentation to promote a sense of regal splendor and status. A museum holds the personal effects of celebrities and political leaders buried there. There’s also Southeast Asia’s first Chinese stone calligraphy gallery, constructed at a cost of $5 million. Images of a crystal-embedded Buddha and the Goddess of Mercy are everywhere. Outside, swaying bamboos, a glistening lake and landscaped pathways surround tombs covered with horsehead-shaped roofs. Many of Malaysia’s rich and famous have booked plots for themselves and their families here.

Kong was certainly not one of these when he was growing up. The third of 10 children, he was born to a family of rubber tappers in Kuala Lipis in northern Malaysia. His mother pedaled him and his brother, neither one a teenager yet, at 2 a.m. every day to work on the rubber estates. Then at 7 a.m. the boys would start their long walk to school, only to return home after school to more work–bundling and delivering latex–before they went to bed. “My mama would buy me outsize shoes so they would last longer,” he says. “The only new clothes I ever wore were school uniforms.” At 16, out of “sheer desperation,” the brothers left the village for Kuala Lumpur. There they distributed toothpaste, soap and other consumer goods. Demand was brisk, but creditors were always delaying payments, and margins were razor-thin. Kong moved on in 1985 to launch a moneylending business.

Meanwhile his father-in-law died and he was entrusted with finding a burial ground. But there were no private cemeteries in Malaysia then. The community cemetery was strewn with weeds, unkempt pathways and haphazard tombstones. As he stepped on some of them he found himself apologizing to the deceased. Then came the nightmare of dealing with casket makers and organizing a prayer service. The process was so chaotic that “demand for a better service was self-evident,” says Kong. “Death is a certainty. Whoever is born must die. That means a demand in perpetuity.”

Selling the concept, however, was difficult. Kong might have abandoned it, but a recession hit Malaysia in 1987, and as liquidity evaporated his credit business went belly-up. He was at square one again, this time with a young wife and two children in tow. Plagued by doubts about profiting from such a delicate business, he was fortunate to have a friend who was a monk to get him past the psychological barrier. And a geomancy master helped him identify land in the shape of a dragonhead with good feng shui. He won over a reluctant landlord with a profit-sharing proposal and gained the right to use a 50-acre parcel for burials. But the local government rejected his application. For the next two years Kong would troop down to the land department nearly every day. In 1990 he finally won approval and called his new company Nirvana.

His first customer was a friend who bought a plot after his uncle died. Soon word spread about the new “death company.” Before the year was out, Nirvana was turning a profit. But not believing that the land had any resale value, banks still wouldn’t lend Kong money. So he kept an eagle’s eye on cash collections and landholding costs. Any surplus went into accumulating more land and beautifying the cemetery. Skeptics began turning around as he rolled out one innovation after another and profits soared. “For the first time lenders, investors and bankers began to look at my business as legitimate, though unusual,” he says.

But he hadn’t quite arrived yet. In 1996 Malaysia’s stock market was on a tear. Nirvana applied for a listing, but it didn’t have any peers or valuation model to judge its viability. “No one knew how to deal with it,” he says. The application was rejected, but once Kong was finally able to launch his IPO in 2000, the way was paved for very quick growth. “I would work 16 hours a day, supervise every detail for every service personally till it was perfect,” he says.

Kong relisted Nirvana in Hong Kong in 2014, fetching $246 million and giving him the muscle to expand into Thailand, Vietnam, Hong Kong, the Philippines and China. The private equity deal will speed that expansion. “When I started out, I simply had a dream to provide seamless, worry-free death services,” he says. “It has made me more money than I ever dreamt, and it has also ensured that I will have a happy ending when the time comes.”

Indeed, his burial plot stands right on top of the hill at his Memorial Park in Semenyih.

– FORBES

 

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4 Ways on How to Develop a Better Exit Strategy

In the beginning of your business and building your company must be truly focused on creating good product or service as well as generate revenue. But, when they had reached on a certain stage they want to acquired, they starting not getting their house in order. They only focus on one aspect and believe the rest can be taken care by itself.

Companies that only focus on one area and neglect the others are not good acquisition targets. Acquirers care about everything fro contracts to HR to sales pipeline. Now, here are the four ways to be a better acquisition target:

1. Avoid the “Super VP” trap

Many CEOs come from functional area of business as example, marketing, sales or engineering. The temptation of CEO role is to continue to focus on what they know and do best. For example, CEO from sales sometimes jump in to close a big deal but it may be useful at times but spending to much time in one area, in other words “Super VP” totally a quick way to failure.

Acquirers are looking to minimize risk. When one area of business is poorly run, it increases the risk for the acquirer.

2. Build mature system and processes.

In early organization’s founding, entrepreneurs had to make up for the lack of processes and system with talents. This is only temporary and somewhere north 25 to 50 employees, when the business is starting to take off, entrepreneurs need to put the “engineer’s hat” and invest in more sophisticated system and process that can help to run the company more efficiently.

Sometimes, CEO think they can get by without knowing their proper business system and processes or maybe they don’t want to spend money. Other times, the business is growing fast that the system and procedures can not keep up. So, failure to do so will inhibit the growth and the ability to attract potential acquirers.

3. Strive to be world – class in every department

Just simply buying new software is not enough. CEOs have to make a priority to make sure every department functions at the world-class level. They need to work closely with the executive team to determine the key process in each area of business and then take a systematic approach to improve each one.

Some companies will have a COO who may take primary responsibility for this work. If not, the CEO should regularly review metrics and focus on the processes that make the biggest difference to the business. Leaving this role entirely up to the members of the executive team means the CEO often won’t have the knowledge needed to make effective decisions when issues escalate and all of this starts with hiring the best people possible at every level in the organization.

4. Get the financial side of the house in order

Every department is important, but prospective acquirers who cannot make sense of company’s finances will make a low ball offer or quickly walk away. CEO advisor Bob Barker of 20/20 Outlook recommends that start-ups have two years of audited numbers to help “potential acquirers get a rapid and reliable financial picture of the business, a key step in accelerating their interest. This immediate positive step doesn’t require deep thought — just do it.”

CEOs and leadership teams often focus only an exit. They don’t strive to build the finest business they can, diminishing their chances of getting the best deal possible for themselves and their stakeholders.

 

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Retail needs more than just size to survive

IS retail an art or a science?

To most, it may be more art than science but to property consultancy Savills (Malaysia) managing director Allan Soo, it is both. Creating desire and aspiration is all about art while the science bit comes in the form of numbers, catchment area and household income.

Considering that technology is based on which retail – as with other economic sectors – thrives today, the intrepid traveller and shopper who has just returned from a spree in Italy says: “There is the hardware – which is the sq ft – and there is the software, which are the tenants, merchandise and demand from shoppers. You need to look at both,” says Soo.

Soo believes that instead of thumping our chests on the sq ft (or burgeoning retail space), it is important to paint a more wholesome picture of how retail can evolutionise amid the space and technology against the maturity backdrop of the Malaysian retail.

“It may be hard to see the good news, but there are good news,” Soo says.

The millennial generation, those between 20 years and 35 years old, will dominate. “Young people are good at swiping (cards) which will impact retail, and which they already have,” says Soo.

Online transactions are rising. So retail today is in a sort of flux; as in the banking industry because of fintech, and in the property sector, because of proptech, says Soo. An online property website may have 100,000 visitors in a day, but does the bricks and mortar property consultancy have that?

“Online is big today and it will become bigger,” says Soo.

A case in point. Chinese e-commerce group Alibaba Singles Day last year reached a record US$14.3bil in one day, Reuters reported.

That is more than 25 years of Suria KLCC annual sales of RM2.5bil for 2016. It took 20 years to get RM2.5bil but Alibaba did it in one day, says Soo.

These are the challenges facing the retail sector, not only in Malaysia, but globally.

“So what I am trying to say is, this goes beyond sq ft and how much space we have. In the midst of all these, there will be winners and losers.”

Why they are winners

If one were to take a ratings poll, there are five malls which constantly come up tops. They are Suria KLCC, KL Pavilion, Sunway Pyramid, 1Utama in Petaling Jaya and Mid Valley Megamall, which is half-way between Petaling Jaya and KL city.

Each of these malls have a net lettable area of more than 1 million sq ft, which gives rise to the term megamalls.

That being the case, there are three other malls that fit that bracket – Sunway Velocity and MyTown, both in Cheras and IOI City Mall in Putrajaya. By the end of this year, there will be Mall No. 9, with 2.4 million sq ft at Empire City in Damansara Perdana, Petaling Jaya.

Soo says IOI City Mall, although isolated according to some, attracts visitors as far as Seremban. It has a catchment area within a 20-minute drive compared with some malls in Petaling Jaya within a five-minute drive.

Put simply, the longer the drive time, the larger the catchment area because there are no competing malls close by.

But what makes the Top 5 always the Top 5?

Tenant mix is one factor. Tenant mix is different from trade mix, which refers to fashion, food, services. Within the fashion mix, there is Zara, which is priced higher than H&M, says Soo. A mall’s tenant and trade mix draws a particular group of audience.

Location, the mall’s catchment area, is another boom or bust factor and the Top 5 malls are located in what may be considered as prime area in the catchment that they serve, he says.

Soo says a mall with a net lettable area of 1 million sq ft will need about 300 tenants, while 2.4 million sq ft, about 700 tenants.

When there is more than 2 million sq ft, the mall owner may need a Louis Vuitton (LV) but does the catchment area within which the mall is located have household incomes that fit the LV bracket?

Two of the Top 5 does not have a LV. In the whole of Malaysia, there are only three LV stores, compared to Tokyo where a single destination can have three LVs. So size does not determine that LV, or some other top luxury brand, will take up tenancy in a mega mall, important though it may be.

LV and other top end luxury brands want access to consumers, and if the median household income of that catchment is not there, space becomes a secondary factor.

“So generally speaking, a mega mall of 1 million sq ft may not need a luxury line. Suburban malls are all about convenience, households, family and entertainment. City malls are about fashion, entertainment and food. And here is where the luxury market comes in.

“The luxury market is important because it provides a benchmark for the retail industry and although it (the luxury market) is softening, city malls need them because it has that aspirational pull,” Soo says.

The luxury market

Luxury brands expanded because of the rise of China, says Soo. After the 2008 global financial crisis, some of the world’s largest luxury goods producers over-expanded in China. LVMH or Louis Vuitton Moet Hennessy, the world’s largest luxury goods maker with over 50 brands, including LV, expanded at breakneck speed in China. Incidentally, that included Chinese property developers.

Top of the range branded goods and property were the darlings of the burgeoning middle class and both sectors – retail and property – fell over themselves to cash in on their propensity to spend. When the Chinese administration threw down the gauntlet on corruption, under the current leadership, and the “gifting” stopped, and the luxury market was impacted. The global economy is still seeing the effects of that today under China’s capital controls.

Some may ask, how does that affect Malaysia? With regard to the property sector, one can monitor the scene in certain parts of the country. As for retail, when MH370 was lost in 2014, it affected retail sales and tourism.

Tourism and retail, particularly at the higher end of the luxury market, are best buddies. In Malaysia, as in other parts of the world, the retail sector is tourism-dependent.

“On many counts, Malaysia is priced lower than most of our neighbours but yet there is this softness in the retail scene. So that is how every shopping centre owner and operator looks at the market. The retail industry goes beyond sq ft and supply of space,” says Soo. New malls need to differentiate themselves.

“If I were to generalise, it is difficult to get a 10% differentiation for a new mall. You can only have differentiating factor for a short time. By next year, they would have lost it. The challenge is today.

Twenty to 30 years ago, that differentiating factor could last longer because things were not moving so fast as today. Another factor is the lack of depth and breath of our retail sector. Unlike Bangkok and some Chinese cities which have a lot of homegrown brands, Kuala Lumpur lacks that.

“Our breath and depth of retail is not established or explored. In Bangkok, in just shoes alone they have so many brands,” says Soo.

How many of the 300 shops in the 1 million sq ft mall will be local or homegrown brands? Hardly any. So how do you fill that 300 shops? Which explains the high degree of cannibalism when malls are located too close to each other, and so the smaller malls of about 700,000 sq ft suffer because whatever they have, their bigger neighbouring malls also have.

Which means retailers need to change their merchandise, their design and/or their target market, says Soo. Do they want to be classic or new and young? Today, the Chinese prefer the smaller brands. So there is a shift.

The intrepid traveller puts it thus: “Retail is about fashion, and fashion is about changes and lifestyle. We have brands which just arrived in Kuala Lumpur which are doing better than some of our older brands because the latter did not change.

The Ralph Lauren flagship store in Hong Kong closed late last year. It was not because the brand lacks quality.

It did not change with the current. Women used to swoon over floras and prints 20 years ago. The baby boomers who like prints are gone. Now the 25 and 30 year-olds are swooning about something else.

– THE STAR

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Create a Road Map to Business Success

For those who are in business industry, what do you feel when you starting a new business venture from the bottom? It may feels like jumping out of an airplane and trying to assemble the parachute on the way down. Business is often happens hugely through trial and error and that’s when a road map is really in need so that you won’t stuck in the middle of your business journey.

If your path is like most people’s, this how it will proceed:

  • You’ll start with personal road map, and when you find your passion, you’ll develop a business road map.
  • Your journey will start at point A, but point B will not be linear; there’s often no straight line between the two.
  • You’ll plan seeds to achieve your personal goals and see which one grows and chart a course to follow the growth.
  • When the growth become a passion and a business, then you plant more seeds within your business to see which ones work. This is the beginning of your business road map.

Don’t be scared to aim high because not goals can be achieve in a short time. Every departments in business such as marketing, production, sales and others need to be responsible. Budgets will need to be created and adjusted while products and serviced will need to be developed. Sales need to made and orders fulfilled. All these incremental activities are necessary to reach your goal.

However, you know that not all incremental steps will go as planned but it will not be a major failure. Instead, the next thing is where you can refocus your attention within the scheme of larger goal of building. Every new incremental goal will become your next mountain to climb as you travel the road to your final goal.

So start by identify your passions and goals and you’ll already have the makings of definitive plan. And don’t forget to give it 100 percent. Once you have set an intention and a goal, don’t just dream it, work it !

Keeping your road map flexible

Startups have to be nimble and open to change, especially in the first few years. There’s a fine balance between retaining products that fit your market and stubbornly trying to hold on to ideas, products or marketing strategies that are not attracting a significant target market.

Sometimes you can pound on market, but the product will still not work. Consider these stories of well-known pivots i which companies changed in order to grow better:

  • Flickr – a role playing gaming site for several years before emerge as the new popular photo sharing social media site.
  • Apple – sell computer kits to kids before making its own computer and becoming a $700 billion business.
  • Lego – start by making wooden ducks. A few years after a fire burned down its factory, the management switch to plastic toys. The interlocking bricks that spawned a multi-billion dollar business.
  • Nokia – start as a paper mill and expanded into rubber goods before moving to electronics and eventually mobile phones.
  • Avon – begin with a door to door salesperson who gave away free samples of perfume. The perfume get better reviews than the books so he did a pivot and dumped the book to start the California Perfume Company, a precursor of Avon.

Now, here is the list of step to step of how to get where you’re going in business:

  1. Plant seeds and constantly observe your garden, looking for growth opportunities and pockets of passion.
  2. Network.
  3. Set an intention and write it down.
  4. Network.
  5. Learn the business thoroughly through classes, internships, seminars, books, networking, etc.
  6. Network.
  7. Work for someone else first, and keep learning.
  8. Network.
  9. Conduct due diligence on product-market fit prior to writing a business plan.
  10. Network.
  11. Find talent, steal talent and keep that talent happy.
  12. Network.
  13. Talk to your customers consistently to capture feedback.
  14. Network.

By the way, don’t forget to be flexible. No straight line from point A to point B and success is never linear.

Do you eager to know more about The Red Dot Theory, how to make your company IPO compliance or build your company’s financial road map?  Visit The Miracles of Capital for more details.

 

MONEY THOUGHTS: Are all your eggs in one basket?

WHEN it comes to earning, accumulating and growing wealth, there is a natural tension between concentration and diversification.

For many successful entrepreneurs, the high profit margin on the annual revenue of their businesses, which is linked to their return on capital employed, is why they sneer at typically lower investment portfolio returns.

These individuals often choose, understandably, to concentrate their economic activities in their own businesses.

The advantage of opting for wealth concentration is that for as long as good times last, these business owners will thrive. The downsides, though, are obvious.

Taking the path of pure wealth concentration means that (by the Law of the Excluded Alternative), the superhighway to wealth through diversification is shunned. You see, it is a binary choice like 0 or 1, yes or no, up or down.

HOW MANY BASKETS DO YOU HAVE?

Each of us, either through active choice or lackadaisical inaction, puts all our economic eggs, so to speak, into just one basket (concentration) or in two or more baskets (diversification).

So mentally scan your past and present economic decisions. Have you in the past and are you now pinning all your hopes on a single streaming inflow of cash from a business you run or from your job? Are you wholly dependent on the active income that business or job brings in?

If your answers are ‘yes’, what will happen to your family when you stop working and cease bringing in an active income?

For everyone who takes financial planning seriously, the only solution is to create passive income streams.

Toward that end, I often tell my financial planning clients, “Thank God for EPF!”

All of us who are forced to contribute to EPF and the wise ones among us who don’t HAVE to but who proactively choose to do so anyway are generally in better shape to handle an eventual future marked by forced unemployment than those who don’t have an EPF account.

If we think about the simple process of how EPF collects our money, we will grasp two factors in long-term personal and family economic survival:

First, either through the operation of law or personal choice, when we contribute to EPF, we exercise delayed gratification by spending less than we earn.

Our core intent is to give up some good old-fashioned consumption today for the needed capacity to at least partially fund our retirement tomorrow.

Second, the growth we enjoy on our personal unspent capital that flows into EPF comes in the form of the annual snowballing, compounding dividend that EPF pays us.

For instance, EPF’s most recent 2016 dividend of 5.7 per cent is a form of passive income that will help us survive in retirement.

SAVING FOR A RAINY DAY

But all of us, of course, wish to do more than survive in our later years. We yearn to thrive in retirement.

So we should arrange our affairs to transition from “working for our money” to “having our money work for us”.

It is thus wiser for us to select diversification over concentration because just as there is safety in numbers when traipsing through a dark alley in a bad neighbourhood, there is greater risk mitigation when we diversify our investments across different asset classes, geographic regions, and across the timeline (meaning we should save and invest steadily over many, many years).

The late investment icon Sir John Templeton once declared: “Diversify. In stocks and bonds, as in much else, there is safety in numbers.”

Templeton knew what he was talking about. Still, it is difficult to ignore the powerful, siren call of concentration.

After all, you don’t need to be a business owner to pick that hyper-focused path; even employees in specialist fields like medicine, law and engineering sometimes behave as though their well-paid work will last forever and is all they will ever need for their long-term financial needs.

In my opinion as a financial planner, a safer path for my clients and workshop audiences to tread is to focus on becoming the best they can be at their work so as to elevate their capacity to earn more money with every passing year. That’s maximising active income!

As smart people grow their active income by investing in themselves through books, journals and seminars, the absolute smartest among them simultaneously commit to a gradual transitioning of their total income profile (total income = active income + passive income) so that with each passing year their ratio of passive income to total income rises.

Snowballing passive income arises from decisions made by the savvy to spend less than they make and to save and invest the difference for a long, long time.

It is a simple formula for lifelong financial success.

So when my clients ask me to help them invest their excess funds into various asset classes in different countries across a span of years – ideally decades – I applaud them for steering onto the diversification superhighway.

Templeton admitted once that: “In my 45-year career as an investment counsellor, humility did show me the need for worldwide diversification to reduce risk.”

Nurturing humility to recognise that diversification can help us grow and stay wealthier might be a phenomenally precious lesson for us all.

-NEW STRAIT TIMES

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How WhatsApp Can Makes Money for Us?

WhatsApp was fouded in 2009 by Brian Acton and Jan Koum as an alternative to pricey SMS services. For free, the apps allowed the user to upload their contact book in your android or iPhone and message anyone who has the app installed. This app is available for iPhones, Androids, Blackberries, Windows Phones, Nokia (NOK) phones and most recently is desktop.

In February 2014, Facebook Inc. had purchased WhatsApp for $19 billion and according to Facebook Form 10-Q 2014, WhatsApp has generated revenue of $1,289,000 in the nine months preceding 30 September, 2014. How WhatsApp is actually making its money?

One Dollar at a Time & Beyond

The quick answer used to be $1 at a time but in some countries, to download the app is cost $1 meaning that the first year is cost free but for every continuous year will be cost $1. In other words, WhatsApp has a subscription model. The revenue per year was estimated at $700 million as the model reached its peak about 700 million users worldwide.

In January, 2016 Facebook revealed that WhatsApp was monetized in very ‘limited fashion’ , it may be not generated meaningful revenue in a long period of time that hint change of strategy. Soon after WhatsApp announced in a blog spot that the subscriptions had come to end, the messaging app will be free to be use.

For the time being, there are still no ads in the app but “Starting this year, they will test the tools that allow user to use WhatsApp to communicate with business and organization” state the company at the time. The goal is to have people communicate directly with banks, airlines and others while the business picks up the bill previously paid through subscriptions.

Forbes estimated the total revenue to be $5 billions and the average revenue per user is to be $4 by 2020. WhatsApp had 1.2 billion user by April 2017.

Other SMS / Messaging App

Outside from the America, the sending text messages are more pricey, SMS apps are popular and have successfully monetized. As example, WeChat, the popular Chinese SMS app has ads and few online games. The company is responsible for Tencent’s that owns WeChat, had $6 billio revenue in the 3rd quater of 2016. Now, the app has over 846 million active users.

Growth Focusing

WhatsApp is adding around a million users per day, mostly in Latin America, India and Europe. With SMS apps, growth is exponential – when one person in a social group downloads and advocates using the app, many new users download the app in order to communicate with the original person. These new users then encourage other members of their other social groups to use the app.

By increasing market penetration, the app becomes indispensable and the user base grows.

Is it All About Money?

Industry insiders have speculated that part of the rationale behind acquiring WhatsApp was for Facebook to access user’s behavioral data and personal information.

With location sharing data, 42 billion messages sent per day, and access to users’ entire contact lists, Facebook has access to a ton of personal information – all uploaded and saved on its servers. While Mark Zuckerberg has previously promised that this data won’t be used to improve consumer targeting in Facebook ads, it will be unless the user changes the settings to not share information with Facebook.

End To End Encryption Controversy

WhatsApp including other messaging providers and also Apples, have been in hot situation with governments around the world after terrorist had used the apps to communicate with the others before, during or after attacks. Because of that, the governments and counter terrorism agencies had ask all those companies to share their encryption key in order to gain access to messages sent and received by the terrorists. However, the companies refused to obliged which lead to WhatsApp’s implementation of end to end encryption that prevents anybody including WhatsApp itself except the sender and receiver from gaining access to the data shared in app.

Conclusion

Whether you believe that Facebook overpaid for WhatsApp or not, the fact is that the app has a growing revenue stream with more room to grow.

Do you eager to know more about The Red Dot Theory, how to make your company IPO compliance or build your company’s financial road map?  Visit The Miracles of Capital for more details.