Year: 2020

Two quarters ago, the future seemed optimistic for Southeast Asia (SEA). Economic projections for the fastest-growing of these economies rose to the high single-digits. Broadband adoption was reaching a critical scale.

New startups driven by a generation of young founders with international experience were rising to the region’s challenges and searching for traction. 

It now seems very likely that the economic consequences of this disease outbreak will be generation-changing. While economic and tech expansion will continue, the ground-truths of the current COVID19 situation show that innovative thinking will have to lead us through the disaster.

With sealed off countries, work-from-home lockdowns, and breakdowns in profit growth in nearly every industry vertical, where can founders turn when it comes to finding solutions in this environment? 

At AppWorks, we are certain that founders will be among the group of people creating solutions that will bring SEA back to normalcy, and as always, we are ready to rise to the challenge.  We have evidence to show that Taiwan can be a country from which SEA founders can re-launch when they are ready. 

Also Read: Bfab, Dealguru co-founders launch iSaveSG to save Singapore’s pandemic-hit businesses

Taiwan possesses an e-economy that is not only well-versed in tech usage, but as the largest e-economy in the region, at US$42 billion per year, it has not slowed down significantly during this pandemic. Startup founders have worked with government officials to take an already planned-for mitigation strategy and accentuate it with tech. 

From the installation of vending machines that distribute face masks, to an unprecedented tracing technology through mobile and GPS coordinates, Taiwan has stayed ahead of the pandemic curve. It’s economy and its national health statistics have reflected this tech-forward approach. 

The knowledge networks that have kept the country’s portion of the supply chain running, and a decade-long history of aiding startup growth, means that smart founders who still have their eyes on expanding through SEA should consider the island as their starting point when this horrifying pandemic eases. 

Taiwan will clearly be among the first countries for startup founders to turn for growth and learning when it becomes possible to move freely around the region again. 

Taiwan is an undiscovered launch pad for the region

Companies originally from Singapore — Shopback, social streaming company M17 and the e-commerce unicorn Carousell — have established engineering and R&D teams in Taipei. 

Companies such as AI-driven consumer analytics company Tagtoo (AW#1) and Hong Kong-based Omnichat (AW#16) whose founders participated in the AppWorks accelerator, gained much of their traction by leveraging the Taiwan ecosystem. 

Also Read: Hope for the best, prepare for the worst: Advice for founders preparing to retrench amidst COVID-19

All of these companies have used the microcosm of the AppWorks Accelerator and the macro-economy of Taiwan to gain a foothold and expand, through either direct or indirect experience in the semi-annual sessions devoted to blockchain and AI and the community.

Community is an accelerant for learning and scaling

For young founders, a community is a lifeline to growth. In the AppWorks network, 376 operating startups and the 1,113 founders who run them have proven vital for any founder that is trying to solve a hard problem, grow at scale, make acquisitions of talent, or find funding. 

Sometimes this network and community come in in-person format, but it can also be virtual, as it has been so especially during the COVID19 pandemic. To accommodate founders who are not able to travel to Taiwan, and to enable connection among founders who continue to build during this time, the accelerator team holds virtual office hours and online seminars via Zoom on a regular basis. 

This would be true, in any case, and it has become something of a new manner of doing business. Over the past three years, AppWork’s community has started to span across tech hubs throughout SEA and become more distributed. Over the past 18 months, the number of these startups infiltrating SEA has grown at a 1.6 times pace. 

The types of founders in this network give some insight into what kind of knowledge network is at hand during these virtual calls and virtual meetups. In many cases, former accelerator teams have reached a point where they have started to grow and are raising money to fuel expansion. Their insights can provide valuable feedback for other founders who want to go down the same path. 

Mentorship by leaders of IPOs shaping decades of ecosystem growth

The AppWorks mentor network provides access to more than 100 seasoned founders, each with at least 10-20 years of experience in nearly every technology business vertical.

Also Read: Hiring for startups: What founders really look for

Through an in-person Mentor Day, the accelerator team connects early-stage founders to this network in an intimate setting organised around pitching and personal meetings. 

Founders get to meet founders in our investment portfolio such as Sui Rui Quek, founder of Carousell; Joseph Phua, co-founder of live streaming social platform M17; Benjamin Wu, co-founder of iChef. 

Peggy Cheung, a Hong Kong founder who established photo platform startup KaChick (AW#19) with co-founder Larry Lam, has firsthand experience with this. She came to Taiwan last year and says that the experiences with her mentor, Ming Chen from travel startup KKday, have focused her development efforts.

“My mentor sometimes sees what I can’t see in myself and gives me the courage to be bold,” she says. “In some cases, our discussions saved me time from dwelling into unimportant matters or walking towards directions that make little sense.”

Resources

Having this kind of human support makes it easier for founders to extract value and make important connections with the macroeconomics of the country. 

AppWorks alumnus Andrew Jiang, founder of hardware-as-a-service (HaaS) venture builder Soda Labs, was part of cohort #17. He came to Taiwan from Silicon Valley. To build out his HaaS startup, he partnered with tech giant Foxconn and hired local engineers. These AppWorks Accelerator-fostered connections solved critical problems in Jiang’s mission. 

Besides connections, AppWorks provides all the essentials that a startup needs in the early days and that they could otherwise find scattered around the island’s tech hubs like business credits supplied to founders from partners at AWS, GCP, and more.

Also Read: What startup founders can learn from Netflix’s “The boy who harnessed the wind”

Separate from the AppWorks offering, the Taiwanese government itself makes it easier for founders to get established on the island. Recently, the government built out a new initiative called Startup Island, geared to help international founders explore Taiwan as a launching pad.

Though the COVID19 pandemic has put a freeze on new visa issuance temporarily, the government makes it possible for entrepreneurs to apply for an “Entrepreneurs Visa.” 

In December, Taiwan’s National Development Fund — a fund of over US$18 billion — announced that it is primed to make investments of at least US$180 million in the next few quarters, largely in Blockchain and AI. 

The next steps 

While many economies around SEA find themselves grappling with precipitous falls in GDP, with many eyeing security strategies that will seal off their borders and preserve resources for their citizens indefinitely, Taiwan will remain a willing partner to SEA founders seeking to find a foothold here. 

We expect that when life returns to what will likely be a new form of normal, the nation and our accelerator will be open, and willing, to help founders from all around the region. 

AppWorks runs a semi-annual accelerator for Blockchain and AI startup founders. Their next application period opens in May. Founders can register their contact details at their accelerator site and get the application details sent directly to them when the process begins.

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Bukalapak CTO Nugroho Herucahyono has left the company

After a surprise departure of its CEO and co-founder Achmad Zaky in December 2019, Indonesian e-commerce unicorn Bukalapak saw the departure of another co-founder, CTO Nugroho Herucahyono.

DealStreetAsia reported that Herucahyono’s resignation was announced to the company at an internal online meeting on Friday.

Herucahyono has also updated his LinkedIn profile which shows that his tenure at Bukalapak ended in March.

US, Vietnam strike up a US$42M economic deal to boost competitiveness

A US$42 million deal between the US and Vietnam has taken place in a bid to focus on making the private sector, startup ecosystems, and human capital more competitive.

According to Vietnam Express, the agreement was signed by the United States Agency for International Development (USAID) and Vietnam’s Ministry of Planning and Investment, seeking to foster greater entrepreneurship, enable deeper linkages of Vietnamese startups to corporations, investment capital, and other supporting organisations in the international innovation and startup ecosystems; and churn out high-quality human capital needed for a robust knowledge-based economy.

Also Read: Is Vietnam the new golden child of tech startups in SEA?

Daniel Kritenbrink, US Ambassador to Vietnam said that the agreement is the country’s continued commitment to support Vietnam’s efforts to become a more open and inclusive economy.

Singapore introduces IOT-enabled tele-ventilator to reduce facility occupancy during COVID-19

ABM Respiratory Care, a Singapore-based medtech startup, has developed an IOT-based tele-ventilator that can help healthcare professionals monitor and programme the device from anywhere in the world in real-time.

According to Biospectrum Asia, ABM is preparing for fast-track approval of its invention with regulatory agencies in several countries, including Singapore.

Branded as BiWaze ION, the tele-ventilator is described as having both invasive and non-invasive modes and can be deployed in an ICU, ambulatory, or subacute settings for pediatric and adult patients.

Users of financial planning tool in Singapore increase by 70 per cent

The COVID-19 outbreak has seen a 70 per cent increase in financial advisors subscribing to the platform, Singapore-based fintech tool GoalsMapper stated.

“During the Circuit Breaker period, financial advisers are not able to conduct face-to-face meetings with clients. The current situation has caused us to expedite the pace of using technology to explore new ways of working and connecting with clients,” said Alfred Chia, CEO of SingCapital, a MAS-licensed financial advisory firm.

Also Read: How fintech is disrupting the Southeast Asian payments market

The GoalsMapper app assists the digitisation of charting and mapping financial goals and has supported about 1,200 insurance agents in Singapore.

With GoalsMapper, financial advisers can key in their client’s information such as a housing mortgage, children’s education expenses, and their ideal retirement ages, and the platform will generate charts that enable them to visualise the cash that they require to achieve these life goals.

The company was established in May 2018 and has since expanded to Malaysia and Thailand.

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Image Credit: Bukalapak

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gojek acquires Moka, a fintech startup providing payment solutions for SMEs

Kr-Asia reported today that ride-hailing giant gojek has acquired Moka, an Indonesian fintech startup that provides payment solutions for SMEs.

This acquisition will combine gojek’s digital wallet GoPay’s 420,000 merchants to Moka’s client base of 40,000 retailers together, giving the two companies access to a broader network.

Although the company has not officially announced it, the commissioner of Indonesian Business Competition Supervisory Commission, Guntur Saragih, has confirmed the news to KrASIA.

The two companies have launched a collaborative project in support of local businesses affected by the COVID-19 pandemic’s impact.

Clarilis appoints Grace Loh Head as head of Business Development in Southeast Asia

Legal tech company Clarilis today announced the appointment of Grace Loh, former COO of RHTLaw Asia, as head of Business Development of Clarilis in Southeast Asia.

Loh brings in experience from her previous company where she was involved in product development, business growth, and strategic partnerships.

Also Read: Morning News Roundup: Bukalapak CTO left; Vietnam-US sign US$42M deal to boost competitiveness

“Loh’s appointment comes at an interesting time for Singapore and SEA with COVID-19, but we are confident that the region will overcome this setback and demand for technology solutions that add value to the organisations will continue. Her hire reflects our strong belief and commitment to Singapore and the SEA region,” said Malik Anwar, Director of Clarilis SEA.

Clarilis provides drafting automation solutions to legal services that aim to make the drafting process simpler, secure, and more efficient.

Shopee pledges US$1M in support packages for sellers amid COVID-19

Shopee, an e-commerce platform in Southeast Asia and Taiwan, has promised US$1 million worth of support packages for local and small and medium enterprises (SMEs) struggling to cope with the impact of COVID-19 on their businesses.

According to the company statement, the support package will benefit sellers in advertising, cashback, free shipping, and training. 

“Being a homegrown company ourselves, Shopee has always been dedicated to nurturing and empowering local entrepreneurs and SMEs. This initiative fortifies our commitment to doing our part to help businesses tide through this unprecedented situation. As the current economic climate continues to change, we look forward to working closely with the community as we remain united in overcoming these challenges.,” Zhou Junjie, Chief Commercial Officer at Shopee, said.

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Image Credit: gojek

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Listen to Sebastian Starzynski, CEO of TakeTask, explains how his team has helped Poland and other nations with their Home Quarantine App to combat COVID-19.

Social responsibility at its apex!

About TakeTask

TakeTask is a mobile application used to assign, execute and verify tasks on a large scale in many locations simultaneously for any industry.

The speakers:

Sebastian Starzyński
Chief Executive Officer, Founder
Serial entrepreneur with 23 years of experience. Owner of ABR SESTA – a 35-employee market research agency, an expert in gamification and collaborative economy, a futurist, and frequent speaker at business conferences.

A volcano of positive energy, full of ideas every day, sales expert and excellent CEO. He is hardworking and very goal-oriented. He is a perfect example of an erudite, who have read all the books out there (we don’t know when because he is always working).

Mikołaj Przybyła
Senior Project Manager, TakeTask

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This article was first published on nfinitiv.

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Plagued by the past SARS pandemic, some of Asia’s top innovation capitals—such as Singapore, Hong Kong, and Taiwan—have fought previous health battles, prompting governments and businesses to put in place stringent measures ensuring the continuation of business operations.

Lauded for their swift reaction to the current COVID-19 pandemic, governments have ensured companies remain running despite the ongoing disruption by enacting business continuity plans.

With the current economic turmoil, it is increasingly imperative to know how to navigate through today’s uncertain economy.

From one entrepreneur to another, here are some tips that have proven to be successful in maintaining strong entrepreneurial prowess through unfavourable economic conditions.

People come first: Unity in the face of adversity

Now, more than ever, building stronger relationships with employees and business partners should take precedence over aggressive competitive behaviour. Strengthening ties with employees build a united team which is important in maintaining the efficiency and resilience of the business.

As employees are at the heart of the business operations, ensuring their positive wellbeing and boosting morale amidst the grim economic outlook can be the fuel that keeps the business running smoothly.

Yet, with the uncertain impact of the virus and indefinite working structures, employees may struggle with anxiety and lack of motivation, aggravating what is already a sluggish output.

Also Read: Lessons from a student entrepreneur on building a successful startup

As such, creating unity through virtual social gatherings or checking in with one another when working from home can relieve the added pressures on the business.

Besides stronger employee relations, building robust connections with other industry leaders is an opportunistic way of forming beneficial ties and potential business partnerships. While corporate events and trade shows are on halt, it does not necessarily mean that networking has to cease.

Instead, networking can evolve alongside the changing business environment by keeping it strictly virtual. Connecting with other industry professionals can keep you in the know of new trends, placing you and your business at the forefront of new innovations for when the economy recovers.

Stay curious—this was how you became an entrepreneur in the first place

More often than not, most businesses are often preoccupied with the productivity and execution of work while the economy is healthy, giving little to no thought for reflecting and planning. When we are overwhelmed by speed and efficiency, our approach to solving a problem is often clouded by merely a solution-oriented approach which may not be the best and most effective formula in the long run.

However, with the slowed economy and free time on our hands, there is more opportunity to reflect on the triumphs and stumbles of the company and source for more innovative ways to improve the problem. Taking stock of what has been done thus far and how operations can be improved is a simple measure that goes a long way.

As entrepreneurs, we have already learned the importance of being nimble and resourceful and today’s uncertainty will put what we have learnt to the test, challenging us to rethink our business decisions and innovate further. Besides, curiosity was the determining factor that launched businesses in hopes of improving services and resolving problems.

Minimising costs does not mean skimping on every penny

When it comes to minimising costs, most would choose to reduce expenditure by cutting production costs and possibly considering retrenchment. However, lowering costs does not have to always be at the expense of employee’s job security but could be at the betterment of the business through streamlining productivity and improving efficiency.

Also Read: Lessons from a student entrepreneur on building a successful startup

Additionally, keeping costs to a minimum can be done with the support of government stimulus packages which can give much needed monetary relief especially when the budget is tight. Currently, trillions will be pumped across various countries to bolster industries and sustain economies hit by the economic slowdown.

For a tiny nation, Singapore has already committed SG$59.9 billion to combat the pandemic and to curtail the economic impact on SMEs. With the recently launched Jobs Support Scheme, the Singapore government has also made it a point to ensure job security and refrain employees from going on no-pay leaves or face retrenchment.

Whereas Taiwan’s stimulus measures totals at over NT$1 trillion and Hong Kong’s initiative under the SME Financial Guarantee Scheme of HK$20 billion will support the operational burden for SMEs.

No doubt the developing pandemic is still marred with uncertainty and unknowns, however, adversities can build the strength and resilience of businesses, positively challenging entrepreneurs to broaden horizons and grow an innovative entrepreneurial spark with the resistance to weather through any storm.

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Netflix spent US$16 billion in 2019 on producing and acquiring new content. Amazon pursued its original journey with US$6 billion. Quiby, a yet-to-launch streaming service raised a billion dollars to create a catalogue for Millennials.

There is an incredible amount of spending from both the legacy media companies and streaming startups to attract the consumer to their streaming services.

This leads to the important question of why this extravagant spending and how does it make sense? The answer to this question is three-fold:

Servicing existing demand

Media companies are attention merchants. They compete to gain access to consumers’ leisure time. Leisure time ranges from an hour of evening couch time to days of free time during a long weekend.

Disney, for example, captures leisure time during a vacation through their theme parks while at the same time serves them daily through ABC, National Geographic, and now Disney Plus.

The name of the game for media companies is — to capture the free time of the consumers’ waking time. Before TV became a household phenomenon, the theatre was the main medium for video consumption. Consumers flocked to theatres to consume content. With TV, the possibility of delivering content straight to consumer’s homes came alive. This new possibility created a new set of media companies (ABC, NBC & CBS).

Also Read: 5 reasons why podcasts are good for your content strategy

Consumers already had the free time to watch midday soap operas, it’s just that TV was able to capture it. That is how servicing the existing demand looked like in the era of TV transformation. With ubiquitous internet-enabled devices, content makers got a new opportunity. They can service the leisure time that was available but was not serviceable through TV.

Leisure time that wasn’t possible to service through TV —

• Watch while travelling in an Uber or in the subway
• Watch while running on a treadmill
• Watch at the workplace, church or in a park

This ability to service more of consumers’ leisure time means, creation of more content to service to use cases.

Distribution elasticity of demand

Price Elasticity of demand is — when a particular product’s price reduces, its affordability brings in new customers who could afford and consume the product.

The price reduction increases the size of the market. The media consumer today can choose from a platter of streaming services based on his content and pricing needs. The emergence of the new distribution medium in the form of internet-enabled devices expanded the market size of media consumption both in terms of time and dollars.

Also Read: Updated: Music streaming wars heat up as Spotify launches in Singapore

A streaming media product over the internet has a new consumer base that a traditional TV channel couldn’t reach. The barrier of owning a TV and subscribing to a Channel Bundle is now removed because of a commodity called mobile device.

These new consumers including teenagers to college students who would have otherwise not owned their first TV. But they now own a different content consumption device as early as at the age of 13 years.

Subscription model

Every tectonic shift in media distribution creates a new generation of companies. For example, the emergence of TV as a platform created companies such as CBS, NBC & ABC. Streaming as a new distribution platform also created a new generation of companies such as Netflix and Hulu.

The advantage of being a legacy media company (Disney or Warner Media) is the product created in the past, can be repurposed to be delivered using the new medium.

The same happened when TV was created, the content which was created for the big screens was monetised on the small screen. By launching their streaming services, legacy media companies will repurpose their content in new ways.

Disney will give access to a 100-year-old catalogue through Disney Plus. Warner Media will attract Harry Potter fans to its yet to be launched HBO Max. While old media companies will instantaneously have a large and diverse catalogue in their streaming service, the new-age companies don’t have that advantage. To make up this difference between the size, quality & variety in content it is an unavoidable compulsion for new media companies such as Netflix to spend aggressively.

Also Read: Singapore’s allrites raises US$1.1M to grow its marketplace for TV, film and sports content rights

They have to create a legacy without the major ingredient for a legacy, time. This is why HBO is only spending a fraction of what Netflix is spending. It doesn’t have an entourage nor sopranos which will offer a sticky fan base.

Netflix has to fix this time and catalogue gap with more dollars. The only other way would be a studio acquisition. That is a discussion for another time.

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Singapore-headquartered cross-border remittance company TranSwap is in talks to raise US$5-10 million in a fresh round of funding.

In a recent interview with e27, Co-founder and CEO Benjamin Wong said TranSwap is looking to close the round “quite soon”.

To date, the fintech company has secured US$2.5 million from investors, including Quest Ventures, and an unnamed family office and a few high net-worth individuals.

“We have raised about US$2.5 million to date, and we are going to close another bigger round soon,” he revealed to this publication. “We haven’t announced it yet but it will be quite soon. The amount is about US$5-10 million.”

Started in 2015, TranSwap allows businesses to manage and execute payments globally while reducing FX costs and complexity. It also serves importers and exporters seeking to make payments internationally.

The firm holds money remittance licenses in Singapore, Hong Kong and Indonesia.

Last week, TranSwap announced a plan to launch in May a new offering, called Global Borderless Virtual Account (GBVA), in the US, European Union, the UK, and Indonesia. This new product will enable customers to open virtual bank accounts in these three locations. This will allow businesses to conveniently collect payments, convert foreign currencies, and send cross-border payments to over 180 countries worldwide.

The COVID-19 crisis

According to Wong, although many industries were taken a hit by the spread of COVID-19 globally, fintech is among the very few industries which haven’t seen much impact. The sector has, on the other hand, registered a decent growth during the period, owing to a rise in online purchases/e-commerce activities.

Also Read: Quest Ventures makes first close of fund II at US$50M led by Pavilion Capital, QazTech Ventures

He, however, admitted that if this situation lasts for over a year, every industry will come to a standstill, including fintech.

In view of the rapid spread of the epidemic, many businesses have shelved their plans to expand. TranSwap, however, plans to execute its geographic expansion plans.

As part of this, it has already hired one person in Malaysia, with plans to recruit more people in Indonesia and Singapore.

Outside of Asia, the fintech venture is also looking to hire in the UK and Europe.

“We are now accelerating our future plans. We have the resources and licenses to operate in Hong Kong, Singapore and Indonesia. This year, we are going to apply for licences in the UK, Europe, Australia and Malaysia,” he said. “Our vision is to have global licenses in at least 15-20 countries.”

A veteran entrepreneur, who has seen various global crises, including the economic recession of 2008-09, Wong felt that cash flow is always important for startups to tide over unexpected events in life like COVID-19.

“Startups is all about expanding and burning money, so liquidity is very important,” he said. “Venture capital is likely to be short in times of crisis like this. Startups that have already raised funding should go back to their VCs for more capital. They also need to go their customers and employees and support each other,” he warned.

He also warned that post-COVID, the world won’t be the same. “It will change a lot of things. Many startups will not make it because of cashflow. Those who survive the attack of the virus will come out much stronger,” he said.

“Fortunately, the governments of all major countries are trying to help businesses in every possible way. You just need to hang on. Maybe, you don’t have three meals a day but make sure you survive. When it is over and if you get over the crisis, you’ll be much stronger,” he commented.

According to Wong, Asia’s remittance market is highly competitive, with the presence of multiple operators, including TransferWise and InstaReM. However, for TranSwap, its premium products help it stand out from the rest.

“We will be offering many premium products to businesses, mainly SMEs. Besides sending money, these businesses also need e-invoicing if they have operations in overseas countries like the UK and the US, which require them to open a bank account. TranSwap can issue borderless multi-currency accounts to them to collect and pay money, even though they don’t have an entity in these foreign markets,” he explained.

“Businesses also need hedging facility if they deal with currency, receivables, and payments. They also need treasury management. These offerings differentiate us from our competitors,” he continued.

Also Read: TranSwap obtains license to provide cross-border payments services for SMEs in Indonesia

Sharing his perspective on the rush for the new digital banking licences in Singapore and Malaysia, he said the digital banks will help serve markets and sectors, where traditional banks cannot reach.

“I think we can learn from the experience of the UK, where digital banking is getting an uplift. Because of the challenges posed by new digital banks, traditional banks in the UK have become much more competitive and transparent, which is eventually benefitting the consumer.

Besides, challenger banks in the UK are much cheaper — only GBP5 million is needed to start a challenger bank. So, digital banks have a crucial role to play,” he concluded.

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Image Credit: TranSwap

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With new businesses and startups growing faster than dandelions during a late spring shower, increasing sales and securing customers may be difficult.

One strategy that many successful companies use is to give away something valuable that makes each potential customer’s life easier and helps them to make a good decision.

Would car dealers have sales if they didn’t give some mileage away during the test drives? Even retail stores give away some of the clothing products—from t-shirts to hats to perfume.

Why does this strategy work?

There are two types of people in the world: people who are short-sighted and people who are long term oriented. Short-sighted people want to make a profit right away.

On the other hand, people with long term vision and business acumen understand that to run circles around the competitors, you give away things—or time—for free in order to get people interested, and then monetise downstream. That’s where the value ladder comes in.

Also Read: Customer churn analysis: How can startups get it right?

The value ladder is best explained through the following example:

A dentist loses money by providing free teeth cleaning. However, this gets them a long-term customer, and sometimes a lifetime customer because people don’t shop around for dentists if they’re happy, they stick with them!

A smart dentist understands that it’s okay to lose money upfront. The money is made in the following visits when the patients start bringing their children or partner for a routine check-up.

God forbid, if they had to get cosmetic or retainers, we all know how ridiculously expensive that could be.

The value ladder doesn’t exist just for dentists. If you’re innovative, you can create your way out of any box.

Think about how you can build a value ladder in your business by giving away things which have a perceived high value. Be unique, be helpful, and you won’t have to beg for clients anymore once you understand this concept.

Trust is the most powerful currency in business

The biggest hurdle between your startup and the potential customers is trust. People don’t know about the quality of your product or service; they don’t know if you’ll be able to deliver the promised service or product in a timely manner—heck, they don’t even know if you’re a genuine or fly-by-night business.

Also Read: Morning News Roundup: Antler pledges up to US$500K in funding to startups battling COVID-19

That’s why initially giving away something valuable is an important strategy.

This kind of practice is quite common in the online world. For example, SaaS companies offer anywhere from 14- to 30-day free trials. Netflix and Amazon Prime both offer a 30-day free trial.

Amazon Kindle offers a free sample of every book so that readers can assess a book and decide whether it is interesting enough to buy.

To encourage people to try out Adwords, Google offers up to a $150 coupon to new users.

As the marketing legend, Claude Hopkins in his book Scientific Advertising said, “I always emphasise that my proposals were always altruistic.  I was always offering service. Anyone could try what I offered without risk.”

When these multibillion-dollar companies are willing to give away something valuable to get people to interact with their services, why do you think that, without offering any monetary or non- monetary value upfront, you stand a chance of winning against your competitor who does?

Also Read: Good sales, good leads, here’s what your startup needs

However, the great news is that most businesses don’t do this. Look around your industry, and see if you can find anyone who is giving value upfront to the customers. The chances are slim.

Personal anecdote

Five years ago, when my girlfriend created her first website Get School Supplies; she knew very little about SEO and got almost zero traffic in the first few months. Then she decided to create a long list of schools and organisations who offered free school supplies in the town at that time and shared that article to Facebook groups related to mothers, parenting, education, and local towns.

As you can probably guess, she started getting thousands of visitors per day for the next two months during the back-to-school season.

The take-home message is to find something valuable which your competitors are not talking about; offer it your customers; be patient, and very quickly, you’ll realise that you are onto something.

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As we celebrated International Women’s Day last month; many people rallied together to celebrate the successes of women in all fields. While big names in the startup scene are often mentioned to laud their achievements, it is also imperative that we commend the successes of everyday women around us.

We usually hear about how full-time founders navigated through obstacles and persevered through challenges, inspiring us to believe that we too can do the same.

Thus, I felt that it would be refreshing for a chance to hear about a founder who is currently at the start of her entrepreneurship journey while being a student.

I was fortunate enough to be able to jump into a call with Ho Zhi Hui, to hear more about her experiences as a student founder and advice she has for aspiring entrepreneurs.

Zhi Hui is currently the Co-founder and Chief Operating Officer of Skilio, a softs skills measurement and analytics platform that empowers organisations to track soft skill development.

Also Read: These Indonesian edutech startups are helping students cope and thrive during the COVID-19 crisis

Just last year, Skilio emerged as the National Champion for the Global Student Entrepreneur Awards 2020 and was also the winner in the Singapore leg of the Startup World Championship.

When asked about how she decided to start a company, she said laughingly, “Now that’s a funny story.”

Zhi Hui met her Founder, Felix, as they were in the same Orientation group in school two years ago. She is currently an undergraduate studying Psychology at the National University of Singapore.

She then realised that both had very similar interests and were able to get along very well (no wonder they say that finding a cofounder is akin to finding a partner). 

I asked Zhi Hui if she had any tips or advice for aspiring students who wish to pursue their entrepreneurial dreams. 

Also Read: What not to do when you are married to the Co-founder of your startup

Here’s what she shared:

Look at entrepreneurship as a process, and not an end goal 

Many students yearn to be able to give out sleekly designed name cards, with “Co-Founder” printed cleanly under their names. However, how many of them understand what it entails?

The glamour and pride of being able to be the boss of your own company is merely the tip of the iceberg. What keeps the iceberg afloat is the heavy foundation of countless cups of coffee and innumerable hours spent in the office. 

“Don’t make being a startup founder your driving force, but instead let the purpose behind it push you.”

For Zhi Hui, starting a company was never an end goal, but a means to fulfil her purpose and vision in life.

Falling back to herself as an example, she reflected that starting a company was not on her mind when she first joined university.

Instead, it was through various projects and activities she planned that she gradually learned what she wanted to do in life: Engage other people and help them seek their potential. 

When Felix shared about Skilio, she realised that it was a way to bring her purpose to life and have a real impact on people.

Whenever she feels lost or burnt out, what keeps her going can be boiled down to one word: Purpose. The reason she started it all in the first place. As we all know, the most challenging part of starting a company is making it last.

Also Read: Why should universities teach blockchain to students?

Having a definite purpose is the bedrock in keeping the flames burning, to always have something concrete to fall back on in times of uncertainty.

Starting your own company is an opportunity, not an excuse

As a student, one’s schedule is often already packed with lectures and tutorials. Not to mention the various activities and projects that students have outside the classroom – time always seems to be never enough.

Along with the workload and responsibility of running a startup, it is easy to use this as a reason to justify when things do not go well. 

Zhi Hui, too, agreed that it is not easy to juggle between studies and Skilio.

With lessons taking the bulk of her time, she had to make productive use of whatever time left. She fondly recalled that nearing her finals examinations last year, Skilio managed to clinch their first paying customer.

As the timeline given by their client was tight, the team had to spend many nights rushing out the deliverables, while finding pockets of time to prepare for their exams. “You just have to get it done”, she quips.

Instead, she encourages aspiring future student founders to make full use of the opportunity available to expand your scope beyond your comfort zone. People, in general, tend to stick to what they are familiar with, due to the fear of trying something new or the lack of avenues even to do so. 

Being a founder gives you that extra push

Startups in the early stages usually rely on a lean and agile team. This enables one to have the opportunity to put on many hats and try their hand at different things.

Also Read: NUS, Ripple launch new initiative to expose students, professionals to fintech in Singapore

For students, being relatively fresh in the workforce, this is especially important to learn more about themselves – what makes them tick or gets them excited. There is a more definite sense of direction in what they wish to pursue in their future careers.

Being a student founder gives purpose to your learning

How many times have we heard about students questioning the practicality of what they learn? While students usually understand the theory of the concepts they learn, the problem arises when they do not have the practical experience to put ideas into action.

Therefore, much of their learning is based on past case studies and not first-hand experiences, leaving students unconvinced of the value of what they are learning. 

“Whenever I attend lessons, a constant thought that runs through my head would be how could this be applied to Skilio”, Zhi Hui said. 

Running a startup concurrently while studying, therefore, gives purpose to what students learn in lessons as they get to put it into use in real-life situations. 

For her, the Psychology and Business modules she learnt could be applied in Skilio, which provides a soft skills measurement and analytics platform.

“Learning is also immediate as what I learn today can be applied right after the lesson,” she adds.

Referring to past examples would not be able to replicate the level of understanding that first-hand application would be able to provide. Being able to try, make mistakes and learn from them produces a different experience altogether. 

However, this would also mean that the learning curve would be steeper as one has to be quick in picking up concepts to be able to apply them immediately. This is a challenge that Zhi Hui relishes.

Also Read: NUS, Ripple launch new initiative to expose students, professionals to fintech in Singapore

On hiring

I was genuinely interested in how she and her other co-founders approached hiring for the team, given their relative lack of work experience. “So far, some of the interns that we hired were older than me, some who I do admit are more experienced than myself”, Zhi Hui remarked. 

She mentioned that when looking for potential hires, the most important indicator that strikes her is the willingness to learn. It never mattered co-founders themselves were younger or had less experience. This actually meant that there is always something to learn from each hire that joins.

In the end, they made it a point to ensure that interns that come aboard are genuinely picking up useful skills and knowledge.

This is done through a milestones approach where the founding team guides interns closely through different checkpoints.

Once the interns start to get the hang of their work, will they then give them more freedom.

It is also interesting to note that many of the interns that come aboard willingly work for free. In return, Skilio uses its grants to send them to courses that enable them to upskill themselves. Valuable opportunities such as meeting investors and attending conferences were also opened to interns.

Funnily enough, Zhi Hui, is currently an intern at another Israeli startup, Inception as part of her school’s NUS Overseas College programme.

This unique situation allows her to understand the perspectives of those working under her. Observing how her founders carry themselves and work with a larger team gives her insights into what kind of a founder she wants to be as well. 

For example, the founder at Inception made it a point to check up on her weekly on the work she was doing. If it is too menial and operational, rather than brainwork that is purposeful, she will make the necessary adjustments to ensure that she was always learning.

Also Read: Rethinking the way we do student internships

Similarly, at Skilio, she makes learning a priority for her interns and that they were still making meaningful contributions through their work.

Give it a chance!

Not everybody is meant to be a startup founder. However, given the opportunity, I truly believe that it is something worth trying for. After all, many other full-time entrepreneurs start their own companies but ultimately fail in the end. 

There is little harm in starting early. Even if you do not decide to pursue it full-time, you might discover something that you could be passionate about or adept at. Being a founder would bring new perspectives and lessons that an internship might not be able to provide.

Like Zhi Hui, you might never know, your passion could lead you to the start of your entrepreneurial journey!

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