Main image via Shutterstock
Small and Medium-sized Enterprises (SMEs) are the backbone of Southeast Asian economy. They make up 98.5% of the total establishments in Malaysia!
You’ve probably seen interviews where founders of SMEs talk about their brilliant ideas and how they’re transforming the business landscape.
Ultimately, you would be owning a business, and this is more than glamour and flashes of inspiration. There are also risks you must take and pitfalls that could lead to major failures.
Here are just some of the nightmare stories of businesses that failed for you to learn from:
#1 Unable to cope with a world that’s becoming increasingly digital
Image via Astro Gempak
Compared to where we were in the 1990s, a lot has changed about our lifestyle and this is mostly due new advances in technology. If you remember growing up reading physical Japanese comic books such as Doraemon and Slam Dunk in Malay, the name Tora Aman would be familiar with you.
The local publisher had been running for 24 years before it permanently closed its doors in 2017. This is due to the increasing presence of online comic platforms. The reality is that people rely more on websites and apps to read their comics. Gone are the days people would buy cheap comics at sundry shops.
#2 Loss of trust between co-founders
Image via Shutterstock
Before she became the CEO of the American job-seeking website, The Muse, Kathryn Minshew founded the website PYP Media. What’s more—she even poured her life savings into it. But a vicious power struggle led to threats and she ended up being locked out of her own website—along with her team members and another co-founder.
So, before you embark yourself on a journey with your business’ co-founders, remember to have a common goal in mind and make sure all of you know how to work with each other!
#3 Incompetency in management and planning
Image via www.bbc.co.uk
Rayani Air was branded as Malaysia’s first Shariah-compliant airline, making its debut in 2015. Sounds promising for a country like ours, right? But poor planning and management led to very unhappy customers. For instance, many domestic flights were cancelled and the airline spent more time refunding its passengers than earning money.
On top of that, its pilots went on strike when it was unable to pay its pilots. Yikes! The airline didn’t get a happy ending. Further safety violations and scrutiny from Malaysian regulations led to Rayani Air’s closure.
#4 Lack of investment in marketing expertise
Image via Shutterstock
The founder of a now defunct Internet TV network for games, Mark Goldenson, wrote this extensive post-mortem on why his company had failed. He noted that the main reason the company went south was because they did not pay full attention to marketing thus not engaging with experts to help them out.
They initially believed that marketing comprised of creative ideas such as viral videos and witty campaigns. In the end, he admitted that the best marketing strategy was more controlled and calculated which makes use of data.
A lot of these mistakes can be prevented by making calculated financial decisions. Funding Societies aims to provide businesses with the financing they need by gathering investors and funding with the help of technology.
They provide up to RM2 million worth of working capital financing for businesses that are expanding rapidly or to bridge short term credit gaps through a fast and straightforward online process! Visit www.fundingsocieties.com.my for more information or watch the video below!
Filled Under :
*We reserve the right to delete comments that contain inappropriate content.