WHEN business growth strategist and team alignment coach, Peter Lam, organises his coaching sessions, many of the participants admit to having dreams of setting up their own company someday.
And a lot of them actually do it.
However, once the “dream” of setting up a company is achieved, they struggle to turn it into a successful and sustaining business.
“Many people jump in at the spur of the moment, but they don’t have the basic fundamentals of how to grow their business. As such, many of them end up shutting down within the first five years of operations.
“Sometimes, I wish that entrepreneurs would have to earn a business-qualification license first, before starting up a business,” he enthuses.
Citing statistics, Lam says 80% of new businesses don’t make it past the first five years.
Realising this, Lam decided to pen a book, titled “ProfitMAX Your Business,” to help provide a structure for anyone looking to grow their company.
The book, which is targeted primarily at small and medium-sized enterprises (SMEs).
Lam says many SMEs struggle with building their companies, wishing they had a roadmap to guide them to build a highly successful business that endures.
“The SME sector faces a lot of challenges. Unfortunately, many of them do not have the proper know-how or the resources, unlike multinational companies (MNCs).”
Lam assures that his book is less “theoretical” and more “practical.”
“A big chunk of the book focuses on the methodology of doing business.”
Lam says many SMEs do not know how to set proper goals - especially long-term ones.
“It’s like setting up a ladder on the wrong wall, and then climbing up all the way - only to realise the gutter you wanted to replace is on the wrong side!
“The same applies when it comes to setting goals. You waste all that money and effort, only to realise (a little too late that) you’ve been going about it the wrong way.”
Lam also notes that many SMEs do not place a lot of emphasis on digital marketing.
“People need to realise that a lot of their digital marketing must come from their website. Media can either be paid, owned or earned. Your website is your “owned” media, and if it goes viral, then that’s earned.”
He says MNCs spend millions on media content annually - something SMEs can’t afford to do.
“You need to be able to stretch your budget, that’s why digital marketing is so important,” Lam says, adding that he has dedicated one entire chapter in his book to digital marketing.
Another big issue facing SMEs, says Lam, is that many find it difficult to “break the glass ceiling.”
“This is especially of companies that have been around for a few years.
“You’re a RM1mil company. Now, how do you turn it into a RM5mil company?
“Many of these companies know where their weaknesses lie, but just haven’t found the solution. That’s why it’s essential to have a structure – to be able to profit-max your business,” Lam says.