Many startups of businesses die because they have not mastered the cashflow game.
It can become a downward spiral if you spend money that you don’t have.
Even if a client promise to pay $X, never count on the money reaching your bank account in a timely manner.
Until money enters your company’s bank account, spend like the deal didn’t exist in the first place.
We often find ourselves standing before an immovable mountain.
Instead of trying to move the mountain bit by bit, a feat that can be unfeasible, take a step back and explore other options.
Look for a plane that can allow you to bypass the mountain.
Even if some challenges seem too difficult to overcome, looking for alternatives and getting creative may very well bring us to the same destination.
Time is one of the most valuable resource you have.
You can choose to spend your time consuming (services, food, entertainment), or spend your time planning, creating or hustling and working towards your success.
Time is a finite resource.
It is no surprise that some of the most successful entrepreneurs are extremely disciplined with how they spend their time.
There has got to be an explicit reason behind what we do every day.
It is easy to do something with no reason at all.
But we have a definite time in this world. Any second spent on doing things for no reason is time wasted that we can never get back.
I think well funded startups are after perceived barrier to entry now.
If you lose more money per year, it means there is a higher barrier to entry to your business, as others need to have deeper pockets in order to compete.
In the eyes of investors, that’s actually good.
If you are making 5 to 10mil a year without any funding, it means you have found a really lucrative gold mine that invites competition, so you are a bad vehicle for investment.
If you open a bar, and 1,000 people bought your drinks and you earn $10,000, you are not investable.
However, if you open a bar, and 100,000 people walk into your bar and walk out without buying anything, you lost $50,000, you are investable because there’s barrier to entry against competitors (others would need to be able to throw away $50,000 with no promise of profitability to fight with you) and you are have “scale”.
I’ve wrote an article on why you shouldn’t leave your phones to charge overnight on Alvinology.
My earliest recollection of something resembling Entrepreneurship was when I was 15. I’ve picked up programming for about 2 years by then, and I have created a couple of random apps and tried to sell it online. One of the app was called Wicked’s Developers’ Suite and contains a html text editor, a search engine scraping tool and a tic tac toe game. I tried to sell it for $5.
It didn’t go well.
I had no distribution channel, my app looked like shit, and I had no go-to-market strategy. My app didn’t have a clearly defined addressable market, and there was nothing special. The fact that it was named “Wicked” didn’t help.
At just 15 years old, I’ve basically made every single startup mistakes known to man.
I then continue to make more startup mistakes when I launched SGShoppin, the second or third blog shop directory to launch here. I ran into scaleability problems as the key value proposition of my site was that our expert team (my girlfriend), would manually review every single blog shop submitted to my directory. We counted 2,000 blog shops at our peak. We could not review submissions as fast as they came in.
I also launched SgZap, a URL shortening service (as if there weren’t enough of these already!). The inclusion of “Sg” in the name didn’t make sense and no one wanted another URL shortening service that had less features and reason for existence than any other such services in the market.
I also launched The Wicked, an online puzzle game inspired by the famous Notpron. Despite the lack of features, the horrendous design, it took off. Apparently I did something right in assuming that my alma mater, The Chinese High School (Now Hwa Chong Institution) was the best place to seed my game. Intellectuals like to play ‘intellectual’ games.
This time, naming it “Wicked” served to improve the game’s value proposition, not take away from it. I also
spammed seeded on various discussion forums where techies gathered, including SPUG (Singapore Palm User Group), Vr-Zone and Hardwarezone. I also seeded on the most popular content directory at that time, Ping.SG, as well as added my game to a Wikipedia list of prominent online puzzle games. In a nutshell, I’ve done growth hacking before the term became a buzzword. I even got featured on The Straits Times’ Digital Life for my creation.
Opportunities came knocking afterwards and I realized I sucked at business. I licensed my game to STOMP and M1 for a 3 digit sum. Real profitable. I ran Google Ads on The Wicked but my account was banned due to fraudulent clicks. For a game site that enjoyed as much traffic as XiaXue’s blog at that time, I earn a grand total of only slightly more than a grand.
I realized I can build, I can bring stuff to market, but I still can’t continue to do what I love – creating things – if I don’t know how to make money.
So I went to Singapore Management University, the “business” university to learn how to make money.
Week 1, I realized students were buying and selling pre-owned textbooks because the cost of new ones were way too high. There was an existing textbook market place, called “SgTextBook” by the founder of Vodien. I felt that the marketplace sucked because the search box was way too small, so I created a new one overnight. My textbook marketplace, BookINBookOUT, had a giant textbook on the front page that allowed you to buy or sell books quickly just by typing the name in. BookINBookOUT was acquired by the time I was in my second year in SMU for an undisclosed (a.k.a super low) sum.
So I decided that I’ve learnt and done a few things, but I have not created any actual startups or companies. At the same time, I was looking to rekindle BookINBookOUT’s peer-to-peer marketplace mechanisms into something more. I was also fascinated by online social interactions – I even heard of a couple who got together after trading textbooks with each other over BookINBookOUT.
I then decided to start GetFromFriends, a peer-to-peer marketplace that has many social features, such as getting a discount when buying from friends, easily search for items put up for sale by friends first before finding items sold by strangers, and getting notified whenever your friends bought or sold something.
Everything seemed to go well. I had the backing of SMU’s Institute of Innovation & Enterprise. We applied for Ace funding and we got it, after an intensive panel round. Then, bad things happened.
We had 5 co-founders and everyone had equal equity.
There were many overlaps in roles and driving the company along a singular mission became impossible.
We spent 3 months changing the company’s name and designing a logo because we didn’t know better.
I lost control as I couldn’t tell everyone to stop wasting the time on this.
In the end we named the company “Oompr” because we were too tired of trying to think of another name.
“Oompr” had zero meaning unlike “GetFromFriends”. We later realized that “Oompr” actually meant Out Of My Price Range. The perfect name for a marketplace startup.
While I was the one who came up with the original idea, I gave up the CEO position to another co-founder because I felt that I should focus more on the tech.
The CEO then came up with 101 new feature requests every day and the tech couldn’t keep up.
We became so obsessed with features that we didn’t bothered with user acquisition and delayed our launch.
Then, Carousell launched first.
When Carousell started going down to maker’s markets and fleas to drive downloads and users, we ran iPad giveaway on Facebook to acquire users. We thought we were smart. We thought Carousell’s founders were stupid. None of our users bothered logging back in again. Carousell’s few but valuable users logged in to their marketplace frequently.
For some reason our second grant disbursement was delayed drastically by Ace, so we had zero cash for close to 6 months. Till this day, nobody knew what really happened. We didn’t receive any explanation. There was an interrogation session where it seemed as if they suspected someone was making use of me to start a business. I don’t blame anyone for this. Just bad luck.
Whatever the case, because of their suspicion, everything died. We couldn’t move at all with no money and we were just freshly harvested meat left on the grass to rot. Time is crucial for any startup. Because we had no money, we had to rely on others. And then we suffered.
In Oompr, we made a ridiculous amount of mistakes that we could never have made and learnt from otherwise.
Oompr failed in 2013. We were losing co-founders fast and it ended with only me and the CEO. Even the CEO bailed because he had some highly lucrative job offer somewhere, so I was left to pick up the pieces.
Still, founding Oompr was the BEST thing I ever did because then I decided to do things very differently when it comes to my second company, Originally US, a Singapore mobile app development and marketing company:
We are now moving to the next phase. We have got a few parties who are interested in investing in my companies. Some even offered to acquihire the whole team. It will be a new journey and a virgin experience for me.
I wonder where the future will take me. Can’t wait to find out! Hope that this sharing has been useful to you!
When I was 5, I wanted to be either an Inventor or a Magician when I grow up.
I couldn’t decide which is more interesting of the two. An Inventor create new things; a Magician does the impossible and make people smile.
Retrospectively, I now realize that I’ve been creating new things and making people smile for the last 10 years of my life.
That counts for something, right?
I’ve been featured in ST today, page 2 & 3 of Life section.
From an app to determine the time one’s bus will arrive to an immersive virtual reality app for a property firm – these are some of the products by home-grown digital marketing and mobile app development house Originally Us.
It is among several Singapore firms that develop apps, which emerged after the mass adoption of smartphones in the late 2000s.
Co-founded by Mr Calixto Tay Wei Kiat, 27, it has created more than 30 apps for hospitality groups, property firms and government agencies since starting last year.
One of its most successful apps is SG BusLeh, which informs users how long it will take for their bus to arrive and displays the approximate physical location of the bus.
Launched in May, the free app is the highest-rated bus app from Singapore on the Android store. It is also available on iOS.
Mr Tay, who is married with no children, says: “We are quite proud of this app because it is practical and relevant to the local market. Some users say it is funny because it uses some Singlish terms. We hope to create more apps like this.”
He is working on another app that functions as a mobile point- of-sale system built for food and beverage establishments.
Instead of having waiters scribble orders on paper, the orders can be entered into the app on a mobile device and the information relayed directly to the kitchen.
Mr Tay’s interest in software design started in his school days. In Secondary 1, he wrote codes to make his computer do things such as automatically open the CD drive or specific browsers.
And while doing project work, he wrote a program similar to Google Docs, which allowed his classmates and him to edit the same document at the same time.
He says: “I just love programming. If you know the right codes, you can basically program a device to do anything.”
After graduating summa cum laude (with highest distinction) from the Singapore Management University with a degree in information systems management two years ago, he was the IT manager in a food company briefly before starting Originally Us.
The firm employs 10 staff, including three project managers and four other app developers.
Mr Tay says his job is to transform a client’s ideas into a working, useful and well-designed mobile app.
About 80 per cent of his work involves coding new functions for apps. The rest goes towards testing the functions and fixing issues.
People underestimate the time and manpower needed to build an app, he adds.
“The reality is that creating an app takes anything from a month to a year, depending on its complexity. It also often takes two or more people as we are experts in different areas of app creation.”
Finally, Mr Tay has a note of caution for wannabe app developers: “You have to really love codes and devices because those are what you will be looking at all the time.”
Thanks for the awesome writeup, Benson!
Photo Credits: ST/Chew Seng Kim
Thanks for the awesome photo, Mr Chew!