10 Key Success Factors for a Start-up Company Frederick Yung

1. 10 Key Success Factors for a Start-up Company Frederick Yung

2. 創 業 三 部 曲 • 餵 食 魚 • 釣 魚 • 養 魚

3. 矛 盾 是 創 意 的 開 始 創 意 是價 值 的 溶 合 矛 盾越多 創 意 越 大 價 值 更 高

4. Strategic Vision, Mission, Objectives • have a mission statement (at least) • communicate to concerned parties • focus on mission • review periodically

5. Strategic Vision, Mission, Objectives • VISION 抱 負 (long term) • MISSION使 命 (medium term) • OBJECTIVE目 標 (short term)

6. Strategic Vision, Mission, Objectives Unclear vision statement “Serve Customers With Pride”

7. Strategic Vision, Mission, Objectives Unclear mission statement • “We provide our customers with right • products and technologies with best • in class quality to ensure customers • with total satisfaction.”

8. Strategic Vision, Mission, Objectives “Off-target” mission statement • 佳 藝 電 視 logo: 台徽 • “禮、樂、射、御、書、數”

9. V I S I O N • Play a leading role for Hong Kong to become a major centre of innovation & technology development in its chosen industrial and service sectors and a hub for infrastructure, knowledge and hi tech content and entrepreneurship

10. M I S S I O N - Provide a high tech quality infrastructure and support facilities - Provide full service incubation programs for technology and design start ups. - Foster partnerships and collaboration between industry and universities/applied research institutes through consulting, training and research programs.

11. STRATEGIC OBJECTIVES • Establish partnerships with the PRD and overseas industry leaders & SP’s. • Enhance our infrastructure (land, building, labs, IT, suppliers) and governance to a world class level. - Build alliances and collaboration to enhance our hi tech content & build a world class full service incubation process. - Build our human capital - Build a renowned hi-tech IP image by attracting & retaining key companies

12. An Articulate Profitable Business Model How do you make money? Balance between hardware, set up and annuity • HK copier and proprietary s/w model • zero cost mobile phone model • franchise model • 香 港茶餐廳 model & 翠華

13. An Articulate Profitable Business Model • retail PC model • banner ad model • Dell PC model • HK private real estate sales model • Work according to plan and revise when • necessary

14. Plan for Future and Growth • Prioritize different opportunities • Target for 1, 3 and 6 months; • 1, 2 and 3 years • HR, cash, stock, premises etc. • Focus on making progress • Reward: Own a corner store • vs 1/100 Café De Coral

15. Defensible Technology Weapon • Patentable technology • Trade mark, trade name, copy right • Guarded secret on development process • Sufficient lead time before competitors • can catch up • REMEMBER: technology is only an enabler, • customers buy the product and not • the technology

16. Concentrate on the Core Competency • Concentrate on area you are the best • Refuse non-core consultancy (TTM issue) • Understand your resource limitation • Do not underestimate amount of • work involved

17. Quality • CEO Quality • Communicate effectively internally/externally • Maintain a suitable quality standard to match • with market position • Cultivate corporate culture • Provide balanced incentive to employees • Balance between flexibility and principle • Integrity, experience, achievement record, energy level , motivation

18. A Balanced Team with Clear Role • Common vision & commitment • Avoid people of same background • Technical /Sales / Marketing / Finance etc. • Non-executive director of the Board (talent that team does not have) • Provide alternate communication channel for external interface • Boost confidence for customers, suppliers, banks and investors

19. Execution Capability • Man of Action • Do the right thing at • the right time right

20. R&D and Product Strategy What is the technology involved? How about the technology trend? How about replacement technology? • 2G-3G-4G + Killer application • Telex (POS terminal) & NCR paper, fax and fax paper, email & cut sheet • CRT, Plasma, LCD TV (TCL & Thomson)

21. R&D and Product Strategy Clear market positioning • Rolls Royce vs. Kia • PC (HP vs. Golden Arcade)

22. R&D and Product Strategy Market size defined • SME Market???!!!

23. Identifying Market Opportunities for a new diabetes drug

24. R&D and Product Strategy Know your competitors • PC and Apple • Analogue and Digital Watch

25. R&D and Product Strategy Identify your uniqueness, strength and What set you apart: • Real / perceived / promoted • CRT and LCD TV • Saatchi • Mountain Cream ice cream of USA • Olevia LCD TV

26. Financial Management and Ability to Raise Capital • Cash Flow Statement, Balance Sheet and P&L • Make conservative cash flow plan • Adequate capital for receivable /payable • Control and manage inventory • Do not count on banks • Source of Capital: angels, business partners in food chain, fools, strategic part, & VC (???)

27. Supports to Technology Entrepreneurs

28. The One Sentence Marketing Plan How do you know You can sell this product :– to these place: The mystery of location: • The Hotel Regal Causeway Bay • The French restaurant in Wanchai • Car dealership in Wanchai • Home furnishing in Wanchai • The Happy Valley mystery • The North Point mystery

30. The One Sentence Marketing Plan The most unbelievable quantity policy: (8 items) Express Counters at supermarkets

31. The One Sentence Marketing Plan The most unbelievable product / promotion mix policy L M F

32. The One Sentence Marketing Plan The most unbelievable product policy 20” L C D T. V.

33. The One Sentence Marketing Plan The most unbelievable distribution policy Cable TV In living room & bed room

34. The One Sentence Marketing Plan The Marketing “Disasters” • Crepe and cheese cake shops • KFC in early1970 • The Chinatel car phone in taxi • The first pager in HK (early 1970) (1st mover advantage ? ) • The TEC phone in Hong Kong • The old Crocodile shops