Mervyn Tan: The Entrepreneur Behind Kuchemate’s Remarkable Success
In this interview with Mervyn Tan, Founder of Kuchemate with Business News Malaysia, he highlights key risks faced by entrepreneurs in the local market. These include financial and credit risks associated with providing credit terms to customers, personal management risk where profits are not reinvested into the business, and the danger of overly optimistic business plans leading to spreading resources too thin.
These challenges underscore the importance of prudent financial management and realistic business planning for sustainable entrepreneurial success.
Mervyn Tan on establishing his business
Read the full interview here:
Business News Malaysia: Can you share the risks that you had to take with the establishment of his business till today?
Mervyn Tan: Financial and credit risks – In our local market, credit terms serve as a norm in every business. However, entrepreneurs always face much uncertainty and insecurity by providing credit terms to customers/clients in the marketplace.
Personal management risk – For some, their entrepreneurial journey will start off smoothly and yield decent earnings. However, based on my experience, most people who start to see such profits might start to direct the cashflow into their own pockets instead of re-investing into the business. Eventually, this will eventually burden the company and lead to financial issues within the company itself.
Last but not least – too much Enthusiasm and adopting an Overly Optimistic Business Plan. While all entrepreneurs can conjure an interesting and well-documented business plan, many are overly optimistic in the early stages of the journey. If he/she doesn’t play their cards right, such a mindset might lead to spreading the company too thin and will pose a problem in terms of revenue and profit. It is a dangerous situation for any entrepreneur to be in.
What can aspiring entrepreneurs do to avoid the same pitfalls you had to suffer through?
Always have a Plan B for the Worst Case Scenario that will occur from the Initial Business Plan or Business Blueprint. Stay rational and avoid being over-enthusiastic or optimistic when deciding to execute business plans.
Always evaluate and re-evaluate all credit and financial risks that need to be taken. Adopt and maintain a strict internal structure credit policy by adopting external credit system checking (for example CTOS).
Building trustworthiness
What were some of the major learning points throughout your journey?
Accepting and acknowledging failure as part of my entrepreneurial journey is one of the most painful points in my career, yet it served as a great learning experience.
Building trustworthiness in the marketplace serves as a huge advantage to myself and my company. When we are a trusted and reputable company; we enjoy continued support from various stake holders in the market.
My strong desire and belief in my dream paved the way for effective action – which then led to creating and preparing myself for all opportunities as I built the company.
How did you manage to balance the fine line between quality and affordability?
Active engagement with all suppliers and business partners by exploring more product development with effective costing. Effective and efficient production and installation process.
Minimizing materials wastage
With the above 3 crucial management methods, we believe that we can continue to provide affordable products without compromising on quality.
What will your advice be to entrepreneurs who are currently trying to find their footing or are
down in the dirt?
Build trust. Be committed and honour our words with actions. Be persistent. Be determined. Don’t avoid setbacks, instead, figure out ways to take them on. Have Compelling Desire + Solid Belief + Effective Action + Iron Will Embrace & Acknowledge Self Short Falls > Reset and Restart the Whole Entrepreneur Journey.
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