I launched Statrys in 2018 to solve a very simple yet critical problem: offer a user-friendly and safe payment and FX platform for companies and entrepreneurs across Asia. In 2022, we were voted the best payments and collections service in Hong Kong.
I have learned a few things along the way that I am happy to share with you here.
Before you start
Welcome risk
Starting a business is a journey full of ups and downs. Risk is central to the experience.
If you want to start a business, you should be comfortable facing risk and responding to it in a productive way. See it as something that helps you focus rather than a stress factor threatening to undo your efforts. It is a friend, not a foe.
Study your business idea to death
You want to act on a ‘good’ idea, but not all ideas are good. Latching onto a ‘bad’ idea can result in failure spread out over time.
How do you know when an idea is good? Sit on the idea for a while and study it. Gauge the scope of the project, take time to identify the market, and understand if there is real demand for the product or service you want to offer.
If you’re launching in an industry you’re familiar with, you will have an edge. You can read the market faster and call on your expertise.
If you’re considering starting a business in an unfamiliar industry, be prepared to do the extra leg work, as I did with Statrys. I was previously a lawyer. I studied the fintech market to death and concluded I was on to something good.
Be surrounded
Team up with a business partner or associate to increase your chances of success. My best associate is my wife. She is someone I can share my daily experiences with, but also someone who supports me emotionally and with the financial risks I take.
If you don’t have a partner, look for someone who will complement you. Not a like-minded person but someone who has a different vision and background than you to help broaden your thinking and the business’ scope.
It’s all about timing
To ensure the timing is right to launch your business, evaluate the opportunity cost of launching. Ask yourself the following questions:
- Is this the right time to get started?
- How long is my runway to market launch? Do I have enough financial resources to last the first months?
- Can I measure my burn rate?
- How long can I last without receiving revenue?
- When do I expect to start making revenue, and how much will it be?
If you take the time to evaluate the opportunity cost of launching, you will be better prepared for any bumps in the road ahead.
Choose your location
Asia has become an attractive region to start a new business, with Hong Kong and Singapore at the top of the list. Keep in mind both cities have high costs of living, which could impact your operating costs.
Hong Kong is the standout city for starting a business. It offers many advantages, including a vibrant business environment, an international financial hub, an attractive tax regime, and it acts as a gateway to the Chinese market.
Also Read: How to balance rapid growth and sustainability as a startup founder
Getting started
Test the market
Before launching, I recommend testing the market to see what kind of reaction you get. If you have not heard of a minimum viable product (MVP), now is the time to get acquainted.
An MVP is a minimalist, functional version of a product, interface, or service. It allows you to target your customer and learn about their experience quickly and inexpensively. You can make any necessary adjustments before taking a deeper plunge.
To raise or not raise funds?
It is not necessary to raise funds when you start a business. A lot of groundwork and research can be done with minimal out-of-pocket expenses.
Of course, fundraising is likely to accelerate the growth of your company. But that’s exactly what it should be used for acceleration. Not getting started. Get the foundations right before you expand.
Measure performance
Define your KPIs
Having clear Key Performance Indicators (KPIs) in place will help you to pilot and manage the evolution of your business.
Create KPIs that are measurable. To be measurable, you need data. For example, some measurable KPIs could be:
- Customer satisfaction: are customers happy with your product or service? Ask them to rate your product or fill out a survey.
- Customer lifetime value (CLV): CLV refers to the total income a business can expect from a customer. How many services does he or she use? How much is spent?
- Automating operations: what processes can you automate, and how can you measure the improvement?
Data will help you to refine and evolve your KPIs over time, and it will hold you accountable.
Listen to weak signals
Pay attention to what I call ‘weak signals’. Listen to what is NOT being said around you. For example, navigation company TomTom identified a weak signal in an online UK forum where customers were complaining about connectivity issues. The company resolved the issue and improved its product development processes as a result.
Weak signals are a good source of data to guide you, and they can also help you realise when to leave a project. If you are NOT hearing the right things, be prepared to swallow your pride and move on.
Key takeaways
- Be ready to take risks.
- Make sure the time is right to launch.
- Choose the best location.
- Test, test, test.
With the basics in place, you are setting yourself up for success.
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This article was first published on September 25, 2023
The post What I learned after launching a successful business in Asia appeared first on e27.