Biz Tips - Innovate, Not Replicate

Innovate, not replicate, is the cry from serial entrepreneur Datuk Seri Marco Robinson when asked about how he was dealing with the recently implemented goods and services tax (GST).

His point is that rather than worrying about the tax, businesses should think about how to adapt and to grow.

According to Robinson, most Malaysian entrepreneurs are very good at copying certain products and making them cheaper, but only a few are innovative enough to disrupt the market place.

“Entrepreneurs need to think about new products. They need to develop at least one new product a year but many are worried about cost. This is achievable as Malaysia is still a very reasonable place to be based in compared to other parts of the world. Staffing and other cost are relatively low, and entrepreneurs should look at innovating products,” advises Robinson.

“It is a lot cheaper here for us, and with excess funds, we are able to channel it to research and development. We need to reinvest our money to ensure longevity and success. Moreover, with GST, it is a kick in the behind for entrepreneurs to get going, which is a good thing,” he says.

The author of Know When to Close the Deal and Suddenly Grow Rich and a proud member of the billionaire boys’ club for achieving over US$1bil (RM3.1bil) in sales, Robinson also stresses the need to build brands on top of having a good product.

“With the right brand, you have the potential to make it globally known. We created the Naked Restaurant Group a few years ago, and now it is growing.

“We are going to venture into our Naked Coffee franchise and other things. Once your brand is strong enough, you can segmentise it for profits.

“Branding goes into two areas: yourself or your product. People can associate themselves with brands. The Virgin Group is a great example. Richard Branson built a fantastic brand with Virgin, and that’s the power of branding. He branded himself and the company so well that everybody wants to be associated with it,” says Robinson.

Using the Virgin Group as another example, Robinson stresses the need for SMEs to diversify.

“Diversifying is great if you have one product that is evergreen. When that product is well developed and is being sold without being pushed, you have a product that can sell itself. It becomes an evergreen product. The profits from this product should be reinvested and diversified. Invest in assets that gives you an income.

“You have to diversify profits into income to ensure sustainability,” says Robinson.

His advice to SMEs is to look into crowdfunding platforms to push out new products.

“As an entrepreneur, you need to make it affordable for more people to get involved,” he says.

Source: The Star Online