ASIA FOCUS : ENTREPRENEURSHIP / ADVICE FROM TWO VETERANS

Recipe for success

Two highly successful businessmen share their views on how to go international

Entrepreneurs looking for success from cross-border opportunities should not expect overnight results, or an easy entry into the markets they are pursuing, since only hard work and the courage to continue could lead them to greater prosperity.

"There is no easy market, nor is there any overnight success," says Bill Heinecke, the founder and chairman of Minor International Plc, one of the highly successful Thai companies that have ventured outside Thai borders.

"If something was easy then everybody would be there," said Allan Zeman, founder and chairman of Lan Kwai Fong Holdings, one of Hong Kong's leading diversified conglomerates with interests in property, apparel and movies.

The entrepreneurs made the comments at a seminar entitled "Go Beyond your Borders", organised by the Thammasat Moot Corp 2007 Forum.

Mr Zeman, who started his first job when he was 10 years old in Canada, says that one of the most attractive markets that Thai entrepreneurs could go into is China as the vast potential that the country offers continues to hold riches for those who dare to venture.

"China today is changing the world and if I was 21 years old, I would want to live there," says Mr Zeman, 57.

"To be an entrepreneur you need guts and some money, and I think sometimes not necessarily too many brains, only a small percentage would do," he adds.

The two entrepreneurs, who have made it big in their own right after starting from scratch a few decades ago, say that the best way to make a business successful is to have the passion to drive it.

"If you are passionate and have a good promotion method you can make it happen, always remember that it is people who build brands and not brands that build people," said Mr Heinecke, who built The Pizza Company after a dispute with Pizza Hut's parent company Yum.

Mr Heinecke says that businessmen looking to enter the more lucrative markets such as China and India need to have a longer-term perspective and investors have to remain focused.

"There are few things that I have learned from the experience from shifting our focus outside Thailand: 1) no overnight success, be prepared for the long haul; 2) make sure that the market is worth the investment, that means go to countries such as China, India or Indonesia, not Nepal, Laos or Cambodia; 3) remain focused on what you do; 4) enjoy the market and meet the challenges that come across; and 5) build the brand to be recognised in that market," he says.

He added that The Pizza Company, which controls more than 70% of the pizza market in Thailand against Yum's Pizza Hut, is fighting it out in China where he has to compete with the multinationals to grab a piece of the pie.

He says that the best way is to offer the customers something that is unique and for people living in Thailand it is the service quality that can be the best niche they can offer.

Thailand, which is world-renowned for its hospitality, can use this as a launch pad for expanding operations beyond its borders. As such, Minor International has already started to move in the resort and spa businesses in countries such as Indonesia, Sri Lanka and United Arab Emirates (Dubai) with plans to open more in the near future.

"Consumers across the world have more in common than differences, so it is not that difficult to move into international markets," he said to young students who were inspired by the bearded man who had started his business some four decades ago with a mere $1,000 borrowed from his father.

"In the end, it all boils down to how much disposable income each market has and how we can tap that income."

Mr Zeman, who started his working life washing dishes in restaurants, had similar views, saying that the only thing that differs in each country is the culture and once that is overcome it is easier for companies to move forward. "You have to adapt to the cultures and think ahead, especially if you are in fashion or other trendy businesses," he said.

"Think out of the box and you will be able to do things, but always aim for the top class as it will help you achieve more."

Both entrepreneurs were of the same view that doing market research and other chores is not always the best way to get ahead. Instead, investors should go by their instinct.

"If I had done market research 25 years ago about pizzas in Thailand, I would have not reached anywhere as during those days not many Thais loved to eat such types of food," Mr Heinecke says, recalling his first pizza outlet that he opened in the resort town of Pattaya.

In another example, Mr Zeman talks about the coffee chain Starbucks, which has become the hottest offering among the tea-drinking Chinese.

In doing business, entrepreneurs also need to have local partners - ones who understand the market and are reliable.

"If I have to choose a local partner what I am looking for the most is passion. If it's there then the business will be successful. Second is some experience and lastly it is the financial resources, as financial resources can be found if the other things match," Mr Heinecke says.

Financial resources are also the last thing that Mr Zeman says he's looking for in a partner.

"For me it's like a marriage, so what I'm looking for is compatibility, creativity in terms of what the new partner can bring to the table - if they are strong in what I'm weak in then it is perfect - and then I think about financial strength."

Bangkok Post
Sunday February 11, 2007