This post is inspired by a friend's blog post, which you can find at
http://bullythebear.blogspot.sg/2014/09/retirement-thoughts.html#.VAyDrFahgds
I guess it is easy for us to calculate.
Let's say we manage to save $4k a month for the next 30 years, that would net us $1.44 mil.
Sounds good.
But that's 30 years later.
Then we read about news like Zopim being acquired for $37mil SGD, leaving their founders as multi-millionaires while below 30 years old.
What's the difference?
I have come to realise that starting our own businesses is among the best way to propel our wealth. But... the caveat is that lots of hard work is needed, much more than being just self-employed. Worst is, the hard work may not even pay off in the end. Of course, such probabilities could be improved with more knowledge and learning. And that is what I have been doing/studying the past 2 months.
The greatest realisation came after I chanced upon this quote which I like to share:
"Organize around business functions, not people. Build systems within each business function. Let systems run the business and people run the systems. People come and go but the systems remain constant" -- Michael Gerber
Stocks, Personal Finance, Personal Development,
Wealth, Income, Trading, Investing, Business
test4
Showing posts with label Business Growth. Show all posts
Showing posts with label Business Growth. Show all posts
Monday, September 8, 2014
Friday, December 27, 2013
Review of Year 2013 & Some business lessons
In a few days time, it will be the last day of 2013, and it marks the first full year since I went self-employed. It has been a long way since I graduated from NUS in the mid of 2008.
I still remember the time where I just started work; I was full of optimism. I also gave tuition as a sideline then. In the "safe haven" of employment, it was so comfortable and the future looks bright. The company would try it best for us, or so it appeared.
But some events woke me up.
First event: Retrenchments
I see this company taking a loan from the government so that it could stay afloat and keep the jobs intact. A few months later, retrenchment came, and 10% have to be retrenched. Yet within a few months, hirings resume, for the positions that were retrenched. Jobs are never safe.
Second event: What I saw on my manager's desk
I remember there was once in the office, I saw a stack of printed powerpoint slides that titled: "How to motivate your employees without monetary means". There was a pay freeze at that juncture, and I was still at the pay of a fresh grad after working for 2 years. While I know this MNC isn't doing well in the crisis, and is logical from the business side, this event still left a deep impression on me.
Thus the tough decision to step out in 2012, and attempt to make a living by myself. The first few months were tough, my discipline was sorely lacking, and I was running around like a headless chicken. Fortunately for me, I have an experienced partner in the business, who manages the admin stuff well.
Which brings me to the first lesson I learned: Having an experienced partner or mentor helps greatly in the initial stages of doing business.
That is common knowledge, but I truly appreciate the wisdom in it. I could see the mistakes that I would have made, in terms of finance, HR (choosing tutors) and branding. I wondered if I would have learned these if I had just "do-it-myself". Fortunately for me, my previous dabbling in FAs of companies left me with some basic skills to manage and understand some aspects of SME finance.
I still remember the time where I just started work; I was full of optimism. I also gave tuition as a sideline then. In the "safe haven" of employment, it was so comfortable and the future looks bright. The company would try it best for us, or so it appeared.
But some events woke me up.
First event: Retrenchments
I see this company taking a loan from the government so that it could stay afloat and keep the jobs intact. A few months later, retrenchment came, and 10% have to be retrenched. Yet within a few months, hirings resume, for the positions that were retrenched. Jobs are never safe.
Second event: What I saw on my manager's desk
I remember there was once in the office, I saw a stack of printed powerpoint slides that titled: "How to motivate your employees without monetary means". There was a pay freeze at that juncture, and I was still at the pay of a fresh grad after working for 2 years. While I know this MNC isn't doing well in the crisis, and is logical from the business side, this event still left a deep impression on me.
Thus the tough decision to step out in 2012, and attempt to make a living by myself. The first few months were tough, my discipline was sorely lacking, and I was running around like a headless chicken. Fortunately for me, I have an experienced partner in the business, who manages the admin stuff well.
Which brings me to the first lesson I learned: Having an experienced partner or mentor helps greatly in the initial stages of doing business.
That is common knowledge, but I truly appreciate the wisdom in it. I could see the mistakes that I would have made, in terms of finance, HR (choosing tutors) and branding. I wondered if I would have learned these if I had just "do-it-myself". Fortunately for me, my previous dabbling in FAs of companies left me with some basic skills to manage and understand some aspects of SME finance.
Friday, May 10, 2013
Are you planning on starting a new business?
But why??!
This post was inspired by the number of people whom I have talked to and aspire to start their own businesses for a few common reasons.
Back in 2012, when I left my job to do full-time tuition and run a tuition centre as a business, I was thinking. Was I foolish to do so? Probably. My portfolio would have been much bigger than now had I continued as an employee while doing tuition part time, although I would have been much more tired with much less free time.
Since then, while I have not regretted the move (yet), my income certainly hasn't seen a phenomenal growth. I was fortunate to have built a sufficient war chest enough to last me for quite a few years, and fortunate not to be making losses (yet).
The learning curve so far was steep, very very steep. I know I have learned much more over the past 8 months than I did over the 4 years I was employed. I have learned what is meant by marketing, advertising, branding, as well as the different government grants and taxes, the different company structures, more about profits and losses, etc. In addition, I have met up with many people over different industries, talked to many friends who have their own aspirations, etc.
It is interesting that a number of people out there are a little dissatisfied about their jobs. Yet most of them stayed at the same job for the same few reasons
1) "I need the money."
2) "I don't know what else I can do."
3) "I want to start a business, but I don't know what business I can start."
4) "If I failed, I don't think I will be able to get employment again at this age."
and probably more I can't remember for now.
To me, the reasons can be broadly classified into one category, Fear.
The fear of change, and the fear of failure.
In my previous company, my superior used to tell me (and quite frequently), "don't be too creative in your approach, just do the necessary things to complete it. You still have a long future ahead in this company." This happens in most of the times I suggested certain changes, which probably are too radical I supposed, to be fair.
Don't get me wrong, there's nothing wrong at all playing safe all the time, and there's nothing wrong staying employed. But to me, if one wants to start a business to take on the stiff competition in the unsheltered outside world, one needs to step out of the box and try different things. It is not about playing safe, it is about daring to change, daring to fail, and daring to pick up from failures.
For the unsuspecting who are planning on starting a new business, what are your reasons?
Let's get a reality check on the common reasons.
“I’m working so hard at my job and being so stressed all the time.”
But hey, doing business is more hard work than ever before! Your business system isn't ready, and your responsibilities are much more! Any medical leave or vacation leave you take in the initial stages may cost you your business.
My friends usually raised their eyebrows when I told them I'm actually working harder while earning less now. Well...
"I need a second income stream."
Then why run a business? Why not just take on another part-time job, like driving a taxi, etc? Expenses usually comes before revenues, and the expenses could kill you before the business turns into an income stream.
Business building and branding takes time, lots of it. And the amount of time needed could be quite demoralizing. Just imagine weeks and months with minimal business.
“I hate my boss, and dislike being an employee.”
I realised I have more bosses now. My students, their parents, and even my partner and my tutors are all my bosses.
In a way, I have to meet objectives of many more people than before.
“A business will make me rich.”
In a way, I am probably a living example at the moment that starting out by myself earns me less than if I was a working professional. Certainly, there are examples out there where running a business earns the entrepreneur more than what he/she would earn if he/she remained employed, but I guess for the majority, it may not be the case.
As of now, I have my fair share of frustrations, of failures and of headaches of my first attempt to do a tuition business. The business aspect of tuition is addictive, but results are seldom immediate. An advertisement once out, seldom bring an immediate response. The same goes for any other marketing or advertising activities. Branding, recognition, takes time to build.
For everyone who have an aspiration to start a business, I hope I have not discouraged you. Because if you get discouraged just by a blog post, you are probably not suited to start one.
* What makes me continue in this is the addiction of running a business (or more than 1). To me, it feels like playing chess. I was a chess player during my student days, and honestly I was addicted. Every move I make in an attempt to advance my business position is like making a move on the chessboard. The difference is this chess game is for the game of life, and my opponents numbered more than one.
This post was inspired by the number of people whom I have talked to and aspire to start their own businesses for a few common reasons.
Back in 2012, when I left my job to do full-time tuition and run a tuition centre as a business, I was thinking. Was I foolish to do so? Probably. My portfolio would have been much bigger than now had I continued as an employee while doing tuition part time, although I would have been much more tired with much less free time.
Since then, while I have not regretted the move (yet), my income certainly hasn't seen a phenomenal growth. I was fortunate to have built a sufficient war chest enough to last me for quite a few years, and fortunate not to be making losses (yet).
The learning curve so far was steep, very very steep. I know I have learned much more over the past 8 months than I did over the 4 years I was employed. I have learned what is meant by marketing, advertising, branding, as well as the different government grants and taxes, the different company structures, more about profits and losses, etc. In addition, I have met up with many people over different industries, talked to many friends who have their own aspirations, etc.
It is interesting that a number of people out there are a little dissatisfied about their jobs. Yet most of them stayed at the same job for the same few reasons
1) "I need the money."
2) "I don't know what else I can do."
3) "I want to start a business, but I don't know what business I can start."
4) "If I failed, I don't think I will be able to get employment again at this age."
and probably more I can't remember for now.
To me, the reasons can be broadly classified into one category, Fear.
The fear of change, and the fear of failure.
In my previous company, my superior used to tell me (and quite frequently), "don't be too creative in your approach, just do the necessary things to complete it. You still have a long future ahead in this company." This happens in most of the times I suggested certain changes, which probably are too radical I supposed, to be fair.
Don't get me wrong, there's nothing wrong at all playing safe all the time, and there's nothing wrong staying employed. But to me, if one wants to start a business to take on the stiff competition in the unsheltered outside world, one needs to step out of the box and try different things. It is not about playing safe, it is about daring to change, daring to fail, and daring to pick up from failures.
For the unsuspecting who are planning on starting a new business, what are your reasons?
Let's get a reality check on the common reasons.
“I’m working so hard at my job and being so stressed all the time.”
But hey, doing business is more hard work than ever before! Your business system isn't ready, and your responsibilities are much more! Any medical leave or vacation leave you take in the initial stages may cost you your business.
My friends usually raised their eyebrows when I told them I'm actually working harder while earning less now. Well...
"I need a second income stream."
Then why run a business? Why not just take on another part-time job, like driving a taxi, etc? Expenses usually comes before revenues, and the expenses could kill you before the business turns into an income stream.
Business building and branding takes time, lots of it. And the amount of time needed could be quite demoralizing. Just imagine weeks and months with minimal business.
“I hate my boss, and dislike being an employee.”
I realised I have more bosses now. My students, their parents, and even my partner and my tutors are all my bosses.
In a way, I have to meet objectives of many more people than before.
“A business will make me rich.”
In a way, I am probably a living example at the moment that starting out by myself earns me less than if I was a working professional. Certainly, there are examples out there where running a business earns the entrepreneur more than what he/she would earn if he/she remained employed, but I guess for the majority, it may not be the case.
As of now, I have my fair share of frustrations, of failures and of headaches of my first attempt to do a tuition business. The business aspect of tuition is addictive, but results are seldom immediate. An advertisement once out, seldom bring an immediate response. The same goes for any other marketing or advertising activities. Branding, recognition, takes time to build.
For everyone who have an aspiration to start a business, I hope I have not discouraged you. Because if you get discouraged just by a blog post, you are probably not suited to start one.
* What makes me continue in this is the addiction of running a business (or more than 1). To me, it feels like playing chess. I was a chess player during my student days, and honestly I was addicted. Every move I make in an attempt to advance my business position is like making a move on the chessboard. The difference is this chess game is for the game of life, and my opponents numbered more than one.
Tuesday, May 7, 2013
Growing your business with PIC
PIC stands for Productivity and Innovation Credit. It took me the past few months to really study through all the documents on the IRAS website, to ponder, think through, calculate, before I make the application.
In short, it is a very powerful grant by the government to grow your business's productivity.
It can be applied in 6 areas
1) Acquisition and leasing of PIC Information Technology (IT) and Automation Equipment;
2) Training of employees;
3) Acquisition and In-licensing of Intellectual Property Rights;
4) Registration of patents, trademarks, designs and plant varieties;
5) Research and development activities; and
6) Design projects approved by DesignSingapore Council.
From a business perspective, it makes sense to spend time studying this, and to invest wisely into improving the business productivity with this grant.
In short, it is a very powerful grant by the government to grow your business's productivity.
It can be applied in 6 areas
1) Acquisition and leasing of PIC Information Technology (IT) and Automation Equipment;
2) Training of employees;
3) Acquisition and In-licensing of Intellectual Property Rights;
4) Registration of patents, trademarks, designs and plant varieties;
5) Research and development activities; and
6) Design projects approved by DesignSingapore Council.
Basically, I think (1) and (4) applies to most businesses, especially (1).
A computer, a photocopier, modems, hard disk storages, display TVs, all count towards (1).
For businesses with big profits, you probably don't even need to read this post. Just go ahead with the 400% tax deductions. For small businesses who don't make much profits, the 60% cash payout option makes more sense.
In layman terms, 60% cash payout means IRAS pays 60% of the expenditure made in the 6 qualifying activities. That means for every $1000 invested into (1), IRAS pays you $600, subjected to a maximum investment of $100k per year per activity. Well, my really small tuition business will not exceed that definitely.
As of budget 2013, a new scheme called PIC Bonus is implemented. Well, luckily I waited till past this budget before I made any decision. In short, IRAS gives dollar for dollar on the expenditure, subjected to a cap of $15k.
A graphical scheme is displayed below.
It looks nice on the surface, but of course, there is a catch to this.
1) The PIC Bonus is taxable! So the $15k will be considered part of revenue!
However, the PIC Cash Payout is not considered part of revenue. Additionally, the purchase of the equipments cannot be counted towards capital allowance.
2) Contributions to 3 local employees' CPF needed in the last month of the quarter. Owners, shareholders and directors of the business is not included.
The criteria is pretty comprehensive . More details can be found here:
Part-time and full-time employees are both applicable to the 3 local employees criteria, provided all are Singaporeans or Singapore PRs.
From a business perspective, it makes sense to spend time studying this, and to invest wisely into improving the business productivity with this grant.
Friday, March 8, 2013
Of 2013 and of budget 2013
It's already March of 2013
Looking back at Goal 2013 and another of my old posts on 2013 Targets, I come to realised my thinking, goals and direction has changed quite a bit.
The Original Goals
1) Goal of $2k/month dividends
First and foremost, I am no longer looking to achieve $2k dividends a month, but planning to maintain the current ~$1.2k per month for a period of time. There's nothing much in the market to buy, and I see no reason to jump in just to achieve this goal.
2) Further building up ExamWorld
I admit that I did not manage to do anything on this website. However, there's still traffic and I believe it might have been somewhat useful to a number of students. Going forward, this will form part of a strategy to further boost the tuition centre.
3) Building the tuition centre
While my main aim is to help as many people as possible, it is still a business, and the tutors need money to eat. Certainly, I have great trust in the centre's capability, and personally, 78% of my A levels physics students achieved A in the 2012 A Levels.
Additionally, it was last year where I had this student whose family was so poor they rented out a room just to pay for her lessons. One of my tutors even wanted to pay for 1 month of her lessons, having won the 4D lottery. Having known that, I gave her the last month of lessons free under my O level physics tutelage. Eventually, it was a happy ending as she got an A2 for pure physics. :)
Such students make me want to work harder, think of ways to reach out to them, and offer as much help as I can. Currently, the centre isn't ready to provide too much help, but I hope to be able to use IT as a way to help these students at the centre in the future.
4) Reaching a million in investable assets
With the stock market boom, my portfolio has increased slightly over $300k, without further input of cash. I cashed out some, but not yet for CPL, CMA and GLP.
My other assets probably add up to just below $100k, so probably I have about $400k in assets. While not little, it's not a lot either.
5) Publishing my notes
As part of my tuition business strategy, the notes probably would not be published and sold, but as part of the resources of the tuition centre.
Having looked through all the above, and thinking hard, I have come to the following for the years ahead.
Looking back at Goal 2013 and another of my old posts on 2013 Targets, I come to realised my thinking, goals and direction has changed quite a bit.
The Original Goals
1) Goal of $2k/month dividends
First and foremost, I am no longer looking to achieve $2k dividends a month, but planning to maintain the current ~$1.2k per month for a period of time. There's nothing much in the market to buy, and I see no reason to jump in just to achieve this goal.
2) Further building up ExamWorld
I admit that I did not manage to do anything on this website. However, there's still traffic and I believe it might have been somewhat useful to a number of students. Going forward, this will form part of a strategy to further boost the tuition centre.
3) Building the tuition centre
While my main aim is to help as many people as possible, it is still a business, and the tutors need money to eat. Certainly, I have great trust in the centre's capability, and personally, 78% of my A levels physics students achieved A in the 2012 A Levels.
Additionally, it was last year where I had this student whose family was so poor they rented out a room just to pay for her lessons. One of my tutors even wanted to pay for 1 month of her lessons, having won the 4D lottery. Having known that, I gave her the last month of lessons free under my O level physics tutelage. Eventually, it was a happy ending as she got an A2 for pure physics. :)
Such students make me want to work harder, think of ways to reach out to them, and offer as much help as I can. Currently, the centre isn't ready to provide too much help, but I hope to be able to use IT as a way to help these students at the centre in the future.
4) Reaching a million in investable assets
With the stock market boom, my portfolio has increased slightly over $300k, without further input of cash. I cashed out some, but not yet for CPL, CMA and GLP.
My other assets probably add up to just below $100k, so probably I have about $400k in assets. While not little, it's not a lot either.
5) Publishing my notes
As part of my tuition business strategy, the notes probably would not be published and sold, but as part of the resources of the tuition centre.
Having looked through all the above, and thinking hard, I have come to the following for the years ahead.
Thursday, September 27, 2012
Growing a business... It's not just tough, it's downright scary...
Ok, I am now without a job...
I can say, it's really really scary....
I'm scared...
Low income isn't scary.
No income isn't scary either.
It's scary when there's no income yet there are overheads to take care of...
It's scary when big ticket expenditure items are looming...
It's scary when I realise there is just so much to learn, to think, to ponder, to decide, and to do...
After "waking up" from my break, and deciding to work hard on the tuition business to prep for 2013, I realised there are just so many challenges waiting, so much that it could be stifling if not handled properly.
I can say, it's really really scary....
I'm scared...
Low income isn't scary.
No income isn't scary either.
It's scary when there's no income yet there are overheads to take care of...
It's scary when big ticket expenditure items are looming...
It's scary when I realise there is just so much to learn, to think, to ponder, to decide, and to do...
After "waking up" from my break, and deciding to work hard on the tuition business to prep for 2013, I realised there are just so many challenges waiting, so much that it could be stifling if not handled properly.
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