This essay has been submitted by a student. This is not an example of the work written by our professional essay writers.
Entrepreneur is defines as an individual who build up new idea to create new product, business and services in the face of risk and uncertainty for the purpose of achieving profit and growth by identifying opportunities and assembling the necessary resources to capitalize on them.
There are several types of quality of entrepreneur which are self-confidence, vision, risk taking, tolerance for failure, creativity and innovativeness.
For examples, self-confidence is belief in their ability. During the down period, entrepreneur will still maintain of their confidence. By the ways, it will sustain the entrepreneur' own optimism and it will also create the level of self-confidence necessary for the efficient group effort.
In the others hand, every entrepreneur must have a vision or concept of what their organization can be. The entrepreneurs know where they want to go. Besides, the vision also develops over time as the individual starts to realize what the organization is and what the organization can become.
Therefore, an entrepreneur is the risk takers when they are decide to participate in new venture to build up new idea to create new business. By the ways, they should be very carefully thought-out the manners. The entrepreneurs are do every possible things to avoid taking the unnecessary risks. Lastly example of the quality of an entrepreneur is responsibility. An individual is responsible what he/she doing of business and even responsible for their customers.
Company name: Sister Dream
Owner: Goh Ai Min
Type of business: This is a type of online business which sells Japanese and Korean style clothing. This business is from the owner' sister when her sister pregnant and her sister not able to do this business when her sister in the pregnancy period so Goh Ai Min need to take over her business in order to continue this business.
Company name: RG SOLUTIONS SDN. BHD.
Owner: Mrs. Mossiah Mahadi
Type of business: This is a printing company. Mrs. Mossiah Mahadi has over the years created fame in advertising & promotion as well as event management industry in Johor. Being a major contributor in successful projects and events in Johor has embarked a new sheet to this industry.
Therefore, to cater the overwhelming market, RG SOLUTIONS SDN. BHD. was established in the year of 2005. With combining fresh and creative ideas, professionalism and an eye for detail, RG SOLUTIONS SDN. BHD. is an one stop A & P and business solutions to cater all your needs. Dedicated to results and fastidious to a fault about the smallest details, RG SOLUTIONS SDN. BHD. takes in completing tasks at every stage of the work process, from preliminaries (concept) to implementation.
Company name: AL-JANNAH BIOTECH SDN BHD
Owner: ZULKEFLI MD. ISA
Type of business: This is a factory that produces coffee. On the travel of this entrepreneur in Indonesia, in a Chance encounter situation an Indonesia citizen told the entrepreneur about Mahkota Dewa, so this entrepreneur found that this is an opportunity that this Mahkota Dewa can be use to produce a product. So, this entrepreneur takes this Mahkota Dewa to University technology Malaysia to do research. The research team called Chemical Engineering Pilot Plant and after 1 year research this product was come out and name as Mahkota Dewa the name same as the plant. Mahkota Dewa is a herb that can anti cancel
The difficulties that faced by entrepreneur
The 3 managers from: Sister Dream
RG SOLUTION SDN BHD
AL-JANNAH BIOTECH SDN BHD
3.1) What was the most difficult decision made you have to make when you start your company?
3.1.1) The first manager from Sister Dream said:
'The most difficult decision is to find the target market because there is several of demography. For example are age, gender, race, religious, income and position. Thus, Sister Dream is choice at the younger generation who able to working and the same time has purchasing power to purchase product.
The younger generation target in 16-25 years old. On the others hand, online shop cannot sell the product at higher prices. This is because, the customer are may think that customer might be cheated by seller. For example, the customers afraid that they cannot receive the goods when customer is already paid. So, Ms.Goh sells the clothes in the price of 1pcs for RM29 and 2pcs for RM50 to the target customer to convince the confident of the customers.
Therefore, the younger generation are also will online because younger generation know well about online. So, younger generation can online and order the clothes at anytime.
3.1.2) The second manager from RG SOLUTION SDN BHD said:
The most difficult decision when the business start is to find the location which is proximity to the customers. This is because the better place will cost higher rental. So, the location related to the money that the company can be affordable if the location is not good the customer will hard to find the factory.
3.1.3) The third manager from AL-JANNAH BIOTECH SDN. BHD. said:
The owner of this company state that the most difficulties he face is target to the new market. This is because to enter to new markets there are many exists competitors and need to do many advertisement to the product to ensure that people know about the product. The examples of the advertisement are TV, radio, brochure and news paper.
3.2) What were the financial difficulties that you encountered and how did you overcome your difficulties?
3.2.1) The first manager from Sister Dream said:
'The financial difficulty is Cash flow problems because does not have or less customer to buy the product. This will cause the business will not earn more income and profit and even the capital cannot turnover. Purchase and delivery goods need capital to implement the business.
So, the solution to solve this problem is to manage the cash flow for the business to overcome the difficulty. For example, Sister Dream will estimate the expenses that will be used for the particular month.
Another difficulty is Sister Dream I want to open a new shop nowadays, so, when want to expend the business, there will face the financial problem. Therefore, Ms.Goh' sister come and helps to give her financial support and even the labour support. It mean that, her sister become the partner of the business.
3.2.2 The second manager from RG SOLUTION SDN BHD said:
The financial difficulties that faced by RG SOLUTION SDN BHD is that this company provides credit sales to the customers but sometimes customers will not repay the payment on time. The customer always own dept to this printing company and lead to the capital is difficult to turn over and the cash flow of the company having problem.
3.2.3) The third manager from AL-JANNAH BIOTECH SDN. BHD. said:
The financial difficulty is the customer not paid the payment which is paid with dishonour cheque and this will cause the cash flow problem and the turnover also have problem. To overcome this problem the entrepreneur decides change to networking business and the idea was given by AJ Global Marketing. AJ GLOBAL MARKETING (AJGM) consists of a group of marketing executives who are capable. They have established a sophisticated system of marketing services to provide excellent marketing services. Our company is always ready to produce high quality products at reasonable prices. Therefore, our company's mission is "Quality comes first, customers still respected" So, the type of networking is Multi Level Marketing. In this kind of Multi Level Marketing the customers want to purchase the product need to pay first before get the product.
3.3) What are the present difficulties that you face for you organization?
3.3.1) The first manager from Sister Dream said:
'The present difficulty is open the new shop in the Malacca. So, Ms.Goh' sister and Ms.Goh need to dissolve the partnership. So, it becomes the difficulty for the Ms.Goh. This is because Ms.Goh needs to learn independent and take more time to manage the online business nowadays. But in before, Ms.Goh and her sister are working together to implement the online business.
On the others hand, when open the new shop, they are need more finance to operate the new shop which is in Malacca. Online shop and new shop are under the same company, but the new shop is needed more capital than online shop. Therefore, Ms.Goh is less financial nowadays.
Besides, when open the new shop need to deal with many things. There are including how to apply licence, renovation, equipment, contract of the shop. From this, Ms.Goh needs to learn all about these to operate the business.
Lastly, when dissolve the partnership there are no any human resources or labour to help Ms.Goh in the online business. So, Ms.Goh need to having more time to do her sister' work. The time will be affected because Ms.Goh needs to consume more long hours to finish the work in a day.'
3.3.2) The second manager from RG SOLUTION SDN BHD said:
The present difficulties faced by this company are problem of human resource and competitors. In human resource, most of the staff in this company is fresh graduate or practical staff. So, need to let them know about how to operate machine and step of printing and need to spend a lot of time to train them. If not give them training the labour may do the printing wrongly and will cause the wasting problem. After that this company expend business to let more customers know about their product. The company open in Angsana, Johor, this is because in this area to convenience the agent and public easy to get the business and product and Angsana, Johor which is near by the factory.
3.3.3) The third manager from AL-JANNAH BIOTECH SDN. BHD. said:
In this company still in development stage so the company expending business to overseas that is Jakarta in Indonesia. So the present problem is the export and pricing in Indonesia. In additional to this, this company also have many competitors for example Ali cafe, Nescafe, old town. These competitors have already famous in the market and build the confidence in the customer mind so this company hard to compete the competitors, the coffee that contain Tongkat Ali is the most biggest competitor this is because the Tongkat Ali coffee is a healthy coffee so will direct influence to Mahkota Dewa.
3.4) Does the role of the external environment influence your decision and the difficulties you have to face in arriving at a decision
3.4.1) The first manager from Sister Dream said:
'Yes, the social culture is the external environment that influences the decision because those have a lot of festival in Malaysia. For example, when Chinese new year there are a lot of customers who are want to buying the new clothes for the coming festival. So, customers are willing to buy more clothes. By the way, it will cause lack of goods/stock. With this, Ms.Goh will try to order the clothes in advance to get more stock. So, if customers are buying more, Ms.Goh is having enough goods to provide for the customers.
The suppliers of Sister Dream are from China. In China there are having four seasons. For example there is autumn in China, so the manufacturer in China will more produce on long sleeve clothes in their country. Hence, there are not suitable for the Malaysia. By the way, Ms.Goh need to order more clothes which are not long sleeve from the suppliers to sell in the Malaysia when China is having the autumn season.
On the other hand, when there is Chinese New Year, the suppliers normally will rest a month. So, Ms.Goh need to order the goods in advance to make sure that she still can provide and sell the clothes to the customers when the suppliers is in the rest period.
The lastly external environment is the competitors who are also having the similar online business with the Sister Dream. The competitors are selling the similar clothes with the Sister Dream and even the price that maybe cheaper than the Sister Dream. By the way, Sister Dream is updating and promotes the new design/pattern of clothes/goods once a week. This can attract and target more customers to buy goods from Sister Dream. Therefore, this strategy might be able to win over the competitors.'
3.4.2) The second manager from RG SOLUTION SDN BHD said:
Yes, the external environment such as government influencing decision. This is because this company business mainly 60% is come from government and 40% is from public, if government suddenly cancel the order and this company will lose a lot of income. So, this company trying to target more customer of public in order to overcome this invisible difficulties.
3.4.3) The third manager from AL-JANNAH BIOTECH SDN. BHD. said:
This company face the external environment when the economy not stable. This means on the oil price. The oil price will influence the cost of production of the Mahkota Dewa so the profit will decrease and will have the cash flow problem.
3.5) What are the risks being an entrepreneur?
3.5.1) The first manager from Sister Dream said:
'The risk as an entrepreneur is afraid cheating from the supplier. This is because Sister Dream is also never meet the suppliers. Sister Dream is only through in the online to order the goods from suppliers. Therefore, when order the goods from suppliers, the Sister Dream need to pay the money in advance. By the way, if supplier does not send the goods to Sister Dream after receive the goods, Sister Dream will loss all the money.
Besides, the suppliers are maybe sent the wrong goods which are not follow the code that Sister Dream already orders. So, Sister Dream needs to sell the clothes to the customers for examples sell in the lower price to attract the customers to buy from them. This is because the clothes that send wrongly are does not provided and show in the Sister Dream' online shop. So, customers do not have detail information about those particular clothes. Therefore, Sister Dream does not have higher power to bargain the higher prices.
In the other hand, the other risk is the taxation of air freight when sending the goods from china to Malaysia. When there is unluckily or overweight of the goods, there might have the 30% taxation that charging of the goods by the Malaysia' government. Therefore, Sister Dream is trying to order the goods which are not less 20kg. From this way, it will be avoided the charging of taxation from the Malaysia' government nowadays.
Finally, there will be a difficulty when finding the short sleeve for example which is in the autumn season in China. This is because there is not having autumn season in the Malaysia. If wearing long sleeve in Malaysia will be very hot for the customers. So, it might not really interesting and attract by the customers. So, Ms.Goh need to try to order short sleeve in advance to make sure that still have new clothes to promote to the customers when the China is in the autumn season.
Meanwhile, when Sister Dream wants to sell the long sleeve clothes, the price will be more expensive than the short sleeve clothes. This is because the long sleeve clothes will need more cloth to produce and will cause the modal need more.' Sister Dream can try to find others suppliers which sold the long sleeve in the cheaper prices which can save the money and can also try to order others different goods to sell.
3.5.2) The second manager from RG SOLUTION SDN BHD said:
The risks face by this company is the uncertainty that whether the customer satisfy with the quality of product or not. When the customers are willing to spend more money to buy the product it will show that the product must be in the conditions of good quality. If the product quality is low, there will be a major problem for the company to survive, this is because low quality product will cause customer not willing to buy the product
Competitors are the one of the risk face by this company. A company always threat by the competitors and as an entrepreneur must fight with their competitors from the reputation, design, quality and the post purchase service of the product in order to get the more market share. So the entrepreneur must always make different with their competitors in order to build up the competitive advantage to compete the competitors.
3.5.3) The third manager from AL-JANNAH BIOTECH SDN. BHD. said:
The risk that face by this company is to challenge in the new product. This is because this Mahkota Dewa is a new product and many competitors in coffee market. This coffee was specially created for the coffee lovers who enjoy only the fines thing in life.
This coffee was made by Arabica coffee bean and Mahkota Dewa. This Mahkota Dewa was used herbal to make and the price is not cheap. A box of Mahkota Dewa coffee costs RM28 which have 20 packages inside a box. So this is the high quality product because it used many herbal and fruit to produce it, for examples ginseng, ginger, mangos teen rind, wolfberry and others. So, this type of coffee is high risk because it is higher cost and higher price compare with the competitors. The product enter to Indonesia and whether this product will be like by the citizen of Indonesia or not still in unknown situation so this is the risk face by the company.
3.6) In operating your venture, what were the difficulties your faced with the following:
3.6.1) The first manager from Sister Dream said:
'The difficulty of resources is the suppliers send the wrongly/incorrect goods for them which does not follow the code that Sister Dream order. So, the resources that Sister Dream wanted are cannot received on time. Therefore, Sister Dream needs to reorder the resources. By the way, it will cause the time wasting because of delay of sending the correct goods and even cause inconvenience for the Sister Dream to send the product for the customers.
In the others hand, the Sister Dream also cannot resend back the goods to the suppliers. This is because the cost that resend back to suppliers is very expensive. This is very troublesome and not worth for the Sister Dream and it will cause loss. By the way, Sister Dream needs to sell the product which Sister Dream not order.
Besides, when there is autumn in China, the new product that will be upload and promote are mostly is the long sleeve clothes in their country. Hence, there are not suitable for the Malaysia. By the way, Ms.Goh need to order more clothes which are not long sleeve from the suppliers to sell in the Malaysia when China is having the autumn season. It can also prevent the lacking of the goods/stock for Sister Dream.
The next difficult of labour is the labour does not know to apply and used the computer well. Labour such as the Ms.Goh sister does not know to use computer. So, Ms.Goh need to use more time to teach her sister to used the computer to apply the things or order goods by using computer. Ms.Goh sister also need more time and effort to learn and operate the computer. Ms.Goh can ask others people or any family members to teach her sister who expert in using computer. So, Ms.Goh can do her own work.
Lastly, the difficulty of location is choosing the online business shop to sell the clothes in the beginning of starting the business. Sister Dream set up in online ways this is because online business will not faced any rental problem, renovation problem, agreement problem and renovation problem, no undertake any management fees, water and electrical system problem. Besides, an online time is also flexible. There are 24 hours working in a day.
In the other hand, when open a new shop will have the competitors. The difficulty is Ms.Goh and her sister will try to analysis that it is the location proximity to the target market and it is the businesses will attract the customer easily or not.'
3.6.2) The second manager from RG SOLUTION SDN BHD said:
The difficulty of resources is, if the supplier have no stock, then the raw material will be a problem to the company, this is because when no resources the company cannot operate. After that the difficult of labour is if the staff make mistake, the mistake will cause the wasting problem and affect the working capital. Next, the difficulty of location is if the location is not proximity to customer, it will make the difficult to the customer to take orders and this will affect the sale volume and income.
3.6.3) The third manager from AL-JANNAH BIOTECH SDN. BHD. said:
The difficulty of resources is the Mahkota Dewa need to trade from Indonesia and if delay the whole process will affected. After that the difficult of labour, when need employ new labour need to train and develop before employ. This is because the workers need to operate the machine so the workers need to train. Next, the difficulty of location previously before the SME Bank help was open in Perling but now the SME Bank rent the factory to the entrepreneur in order to expand the business.
The solution to overcome these difficulties as we are an entrepreneur
The common difficulties that the 3 manager faced included :
First we need to analyse who is the customers so in sister dream their customer is female in the age group of 16 - 25. So as an entrepreneur need to know their customer very well in order to get the customers. After that the Mahkota Dewa customers are the Chiness people this is because the majority of Chiness people like to drink coffee. So this is a big market to the Mahkota Dewa to focus. On the other hand, the RG SOLUTIONS SDN. BHD the majority focus on government. So as an entrepreneur we need target more on public this is because public also have the strong purchasing power for example Super. Super is a huge company and them will need to print the broacher once they provide a new product in the market, so RG SOLUTIONS SDN. BHD should not focus on government only and need to find more market to survive.
The reasons that the managers will face the financial problem because of them are providing the credit sales for the customers. Therefore, the financial difficulty will occur when the customers are cannot pay their debt on time. It will cause the cash flow difficult to turn over on the business.
By the ways, the ways to overcome the difficult that if I am an entrepreneur are:
Managed the cash flow as well as possible. For example, I will try to estimate how much of the financial that I will be used/expense in the particular month in order to assist and avoid me to spend more and over the budget.
In the others hand, I will also asking myself the following two questions to get a sense about whether I have my business' cash flow situation under control:
1.What is my cash balance right now?
2. What do I expect my cash balance to be six months from now?
Apply the networking system like online business. I will start to sell the product through networking system. For example, I can buy a website to sell only my company' product and promote the product for the customers as well as I can. Therefore, the customers are can be join a member of my online business and continue to buy my product constantly.
When the customers who want to buy the product online, customers are need to pay the money first before they get the product. Therefore, my financial difficulty might be solved and I have money to turn over on the business.
Receive some of the deposit of the original price from the customer. It can be ensure that the cash flow can run smoothly. By the way, it also might not cause large loose if the customer are do not want to buy the product and made the payment.
Besides, I also can send out the invoices in the same day when the goods are shipped. By this, I will not wait for a week or two later. Therefore, it will not delay any of the transaction of the business. It also can let the customers trust and put confidence at me.
Chase payment. For example, when the due date of the payment outstanding, the company need to chase payment by through remind letter, call or direct to remind the customers.
In the others hand, I can also penalty the interest for the customers who are late doing the payment. By the ways, I think that the customers will try to made the payment as well as they can. This is because people are do not like the charge which are not useful.
However, I might also offer some discounts to customers who pay their bills rapidly/ advance. So, the customers can enjoy these types of benefits/advantages. So, the customers will also try to make the payment in advance to get the discounts.
Keep some money in others side early when I am starting the business. It is because the money can be used in emergency situations or in others day. For examples financial crisis, economy down turn and inflation. When these types of problems happen in someday, I still can alive and not easily close down. Therefore, I still have opportunity to find out more golden chance to implement my business as well as possible.
Look for the new market to assist the financial problem. I also can look for the overseas market to expand business. For examples I can do the advertisement such as through the newspapers to expand the business and also create the awareness in the same time.
By through the newspaper is because it might be more cheap when compare to the TV advertising. Besides, when advertise in the newspapers, it might more easily to focus. This is because people are see the newspaper daily nowadays to find out more information not only in local news but also in overseas news.
The competitors are always threaten the entrepreneur which in the same market. As an entrepreneur must find with the competitors from the reputation, design, quality and the post purchase services of the product which in order to get more market share. In order to solve the problem as an entrepreneur should analyse the competitor in existing market. As an example, the competitors of Mahkota Dewa are Nescafe, Old Town, Super and etc. in order to compete the competitors Mahkota Dewa need to promote the advantages of the product to the public and the differences of the product. By doing this the customer will be attracted. In Sister Dream their competitors are the shop in the market. In order to compete the competitors we should sell variety of product for example accessory. In the Sister Dream can sell the hand bag, necklace, belt and etc. So by selling more things can attract more people to purchase the product.
From the above, the difficulties that faced by an entrepreneur and the ways that to overcome these difficulties have already been introduced. Form these three managers that we meet before, we find the common characteristic of the business. Nowadays is that there are using the internet networking to expend their business. Sister Dream, RG Solution SND BHD and Mahkota Dewa. There are using website to promote their product and make more easier for the customer to take order the product. The internet is truly make the business run more smoothly. Firstly the benefits of use internet are low cost. Low cost means when open business in internet no need paid the rent and nowadays the people like to go internet searching will have many customers. On the other hand, internet can be use in anywhere and very simple to use and the people no need go to the shop for purchase so will save some petro for the customers.
Thus, the suggestion we give to the new generation of entrepreneur is that they should using networking or E-comers to run their business.
On the other hand, from these managers that we met before, we found that although as an entrepreneur need to put more effort in order to build up their business and face the risk of uncertainty income. But, they have same difficulties faced on their business. So the suggestion to overcome to help the entrepreneurs already list on above so we hope the solution can overcome the difficulties.