Getting a Piece of the World Pie
Posted by Singapore Entrepreneur in Strategies & Tips, Web 2.0 on June 23rd, 2009
I know several Singaporean micro entrepreneurs (some who are very young- JC level) who are making quite a bit of money during this downturn by providing products to overseas markets via ebay, secondlife, and even multiply. Those who have made a significant mark (selling something as simple as customized badges, rings, t-shirts) have opted to set up their own online stores to ease transactions.
There are a lot of sites that offer e-commerce solutions but I’ve found most to be terribly confusing (can’t work with my host because they have their own solutions) or filled with hidden charges. That’s until I found Interspire’s shopping cart. I was skeptical but a quick look (20 minutes) through its video tutorial and screenshots made me a believer.
First of all, there is a full control panel demo so you can test-drive before buying. There’s also around 20 free store designs to choose from so it’s really easy to set up. The search function is quite good, the ability to customize easy and for the geeks, lots to customize, and they accept all major credit cards and full integration with Paypal. There’s also a video presentation to guide you through if you don’t want to deal with looking through the site. The best part, for me, is that you can cancel at any time (60 days notice) instead of being locked up for the year, whether your online biz is doing well or not.
Of course, all this is meaningless if you don’t have something to sell … make sure you offer a unique enough product first. You also need to do marketing, don’t expect them to just come after you’ve built your online store. This is just a tool, a great tool no doubt that brings down costs tremendously, but the business principles still apply, on or off-line.
Peter Bernstein on Risk Management & Cockroaches
Posted by Singapore Entrepreneur in Investments on June 9th, 2009
After watching this I am in awe again of how much wisdom the older folks have to pass on to us and how foolish we are to keep plowing our way without asking for advice or just taking the time to listen. Every time I read or hear Peter Bernstein or Peter Drucker, it clarifies my own thinking so much I am thankful that they have written books and videos have been taken of them to keep passing on what they have learned even though both intellectual giants (who passed away in their 90’s) are no longer with us.
Some highlights in this video:
Essentially risk is “we don’t know what is going to happen.” There is a range of outcomes and we don’t know what the outcomes are within that range and sometimes we don’t even know what that range is. We don’t know what the future holds and people agree and yet they work as if they know.
When things happen differently from the way we expect it, it doesn’t mean you are a fool, that is the nature of things. Risk management is about having a systematic way of dealing with things when things don’t go your way, but at the same time knowing that you can’t put a handle on things 100%.
Function of OPTIONS (although heavily misused by stock market analysts): “the value of waiting”
“What is it worth to me to wait, when I have more information, more opportunity to think it through?”
THE COCKROACH SYSTEM OF RISK MANAGEMENT (aka COARSE)
At the slightest hint of danger, they run like hell.
Obviously, we can’t exist like that in our world, but there are times where this system of management is more useful than any sophisticated mathematical model. Too much mathematics and you lose sight of the dynamics, the complex system of our world and all its varying dimensions as is what happened with the genuises at Long Term Capital Management.
Singapore’s Expensive Wholesale Fruit & Veggie Market
Posted by Singapore Entrepreneur in Business in Singapore on May 28th, 2009
Most Singaporeans know about this place but few have actually ventured into the wholesale fruit and vegetable market at Pasir Panjang. Of course, there is no reason to go unless you’re throwing a huge party since you have to buy everything in bulk to get a good price (vis a vis the market price), but it is interesting nevertheless to see the wholesalers at work, especially at the auction hall as pictured below.
Covering 15 hectares, the market has 1,405 units comprising stalls, shops, cold rooms and offices.
Singapore having no natural resources of its own (well there is a smattering of hydroponic farms but hardly enough to feed the nation), the produce comes from everywhere else- as far flung as New Zealand and South Africa, and as close as Malaysia and Indonesia.
As with all commodities, prices fluctuate each day as do the types of produce that come in. Green apples, for example, range from $28-38 depending on the type and the origin, sometimes going by the kilo (20 kilos seemed to be standard) to by the piece (130-135 pieces).
EXPENSIVE WHOLESALE PRICES
If you do a bit of quick calculation you’ll find that it’s actually hard to do business at those “wholesale” prices- $38/135 pcs = $0.28 per apple. If you need two apples to make one glass of fruit juice, for example, your cost is already $0.56 not including the cost of the cup, labor, rent, utilities, etc. It is no wonder therefore that more and more businesses are importing directly from overseas suppliers and bypassing the wholesale centre altogether.
Business has slowed down so much that the market which is owned and managed by HDB through its agents has called for a major study on the wholesale centre’s future viability. Currently, according to the Agri-Food and Veterinary Authority (AVA), about 30% of fruit importers and 60% of vegetable importers in Singapore still have their warehouses, cold storage and distribution sites at the market.
So is it a matter of “how much longer” not “if” the market will remain open?
