A memorable shoot before the presentation

“I dunno. I walked out feeling blur, a bit like the 1st round, but maybe even worse,” said Melinda after the second round presentation of their pre-seed application. “Their expression tells nothing!!” added her.

Two days later, they application for their proposed Coconect project was approved! After much beers and parties, I managed to get hold of both Melinda and Jenny for a quick interview.

Share with us a little background of you, your team and your project

MEL: I am passionately crazy about marketing. I have more than 10 years of combined experience in advertising, sales & marketing, and more importantly, constantly in the market dealing with customers from different levels, I strongly believe that with the right marketing at the right time will make a lot of differences in a company’s bottom-line.

MEL: However, I observed that many companies & sales professionals either don’t have the time, or the flair to do it differently. Either they seldom keep in touch with their customers after sales, or they waste precious marketing dollars sending out junk mails of no relevance to their customers, resulting not only in NO SALES, but irritation!

JEN: I have 12 years of marketing experience across different industries – fashion, IT and printing. I have worked with brand names like Nokia, Fujitsu, Creative and Xerox (like Mel mentioned). I found my passion in IT when I landed a job in marketing for Nokia communicators and then Fujitsu computing products. When I was exposed to VDP (variable data printing) technology and 1-to-1 marketing during my service in Xerox, I have always been a believer. I believe that marketing can always be more effective and life can always be easier – with the use of technology.

JEN: I am currently completing MSc. in Strategic Business IT and I found my knowledge gained from studying very helpful when we were preparing the proposal for Mdec. My course equips me with the knowledge to solve business problems with IT. That’s why Mel and I make a great team: she provided me with the problem and target; I came up with an IT solution! My tagline is: I’m a geek but I can’t program.

Who should apply for a grant?

MEL: People with vision, passion & commitment to take their technology related idea from the drawing board to a successful reality- no matter what it takes. (And I would add, some business sense will be a pre-requisite)

JEN: Anyone with an innovative idea, then figure out a way to make it work and grow in the real world scenario. Innovative means new and you have to find a niche where your business can serve. Niche doesn’t have to be small, it can be a market where there are needs but not yet served. You don’t have to be a tech super genius (as we are both not) and you don’t even have to be a super businessman (you don’t need this grant if you are). However, you need to have a good balance of tech and business senses.

JEN: On a personal level, passion (about your idea) and perseverance (to see it from idea to execution) are very important. If you think I just decribed you, go for it! Even if you don’t think your idea is that great, go for it anyway! Never hurts to try.

How do you think the fund can help you?

MEL: For a start, it allows me to start the business on a minimum debts basis, which is a huge relief, as I have at least a window of timeframe from developing the business to getting our first sale with fewer worries about paying off debts. With the funding, we have the resources to put together a team of people to help us, and developing or acquiring the necessary technology to add the magic element to the business idea!

JEN: We have a great idea but no capital to execute (or at least me). The thought of borrowing from banks is not so appealing for me. This helps people like us to materialise great ideas. I think it’s wonderful.

What is important when applying?

MEL: A tough spirit! LOL. I would say, first & foremost, a never wavering PASSION on what you believe in, and choose to do. Without that, you won’t be able to go far as many, many obstacles will be thrown to you in the process. The moment you question yourself, why am I doing this, and you can’t find an answer that you really resonate with, you are better off doing something else.

MEL: You have to at least do your homework on your idea viability, whether there’s a market for it, basically you need to have your draft business plan on paper, way before you even think of applying for the fund.

MEL: I didn’t go for the Mdec workshop, but I did schedule a one on one advisory session with the one of the Assessment Manager- Ms. Rozie. She was very helpful, as she answers my queries on what would the board be looking for in order for me to sell our idea; one of it was: What makes your business so different from the others? (Note: It can be the same type of business, but what makes your business stands out from the competitors? What is it that your competitors doesn’t do, and that you do- i.e.; fill in a market gap)

JEN: I agree with Mel – a tough spirit. Also, like I mentioned before – passion and perseverance are very important as it’s not going to be easy. The proposal form will guide you through what you need to submit. Allow ample time for research and preparation. I still remember that Mel wanted to do it overnight xD as she misunderstood the deadline. I’m very used to impossible deadlines but this was really impossible. Allow at least a month of non-stop work for proper research and idea formulation, the more time the better.

Share with us your the Getting-Ready part for your interviews by MDeC.

JEN: The powerpoint preparation is crucial for the success of the pitch. We were allowed limited time to present. It has to be precise and concise. No repetition, reiteration or filling in with irrelevant information. Make it exciting, interesting, impactful and have fun doing it! Don’t crap in your pants when you were thrown challenging questions by the panel…because they will!

JEN: Stay calm and answer constructively. Most importantly, your idea has to be an innovation and you have the business sense to carry it through from plan to commercialisation and a business expansion plan. They look for that. Presentation skills and confidence are very important during the pitch. Being cute helps too xD (not really). Also, shake hands with the panel.

MEL: I put on makeup. LOL . 1st, I jumped around in joy when I received the notification that our proposal passed the 1st evaluation round. Preparing the proposal was a vital and very beneficial step for us. During this process, we further crystallized our idea, supported by research and facts, talked to many people, figure out what will work, what won’t, and the steps that we will take to prepare for the business to launch.

MEL: My personal opinion- never treat the proposal lightly (as we nearly did) thinking that your idea was already good. Doing the proposal makes your idea ROCK SOLID, and you have almost everything internalized that if anyone wakes you up in the middle of the night, you will be able to ramble off your ideas just like that.

MEL: A group that lent us tremendous support is Friends@1.com.my, founded by Pin of 1.com.my. From the moment we are preparing the proposal, to preparing on what to expect from the interview or pitching, we have people (whom we still have yet to meet face to face) replying our questions (and there’s a lot of them!) with much patience and enthusiasm.

MEL: And of course, for the actual pitching, it is very necessary to have many rounds of dry run (rehearsal). The 1st round of pitching is a make or break, so never think you can just ‘wing it’ without practising in delivering your points with a punch!

Any advice for those who wish to apply?

MEL: Do this with all your heart, give it 110% of what you got, and get ready for a very exciting journey ahead. Good luck!

JEN: Go for it and don’t look back! Write to us if you need any advice or encouragement. Our website is always open (99.99% uptime) or whatever our host claims ;) Good luck!

Enough for lengthy text, find out more about the cross-country celebration from Malaysia to Holland!!

First, celebrated with pizza and beer

Then, cocktails...

Followed by a boat ride along the main canal in Utrecht

Feasted in a popular Indian restaurant.

About The Coconect Project

An online relationship marketing agency specialising in 1-to-1 marketing. Our 1st step is to introduce the ‘romancing’ of business relationship- Adding Human Touch back to Business Relationship, to our customers. Part of a relationship-building strategy that will help our customers transform their services /company into a valuable resource is to connect frequently with their customers. It’s possible to combine e-mail, direct mail, phone contact and face-to-face communication to keep prospects moving through their sales cycle without burning out on the message. The first module of the business that we will be launching soon is personalized greeting cards (VDP -variable data printing), supported by personalized gifts.

Our customers can now ‘Set & forget’. We offer online service that manages contacts, personalized, prints and mails postcards and greeting cards. They can order a year physical greeting cards upfront, and not worry about missing another client’s important event again. We take away yucky stamp licking, time spent running around, expensive designers, printing hundreds of address labels, minimum quantity hassles, and let our customers enjoy these: Each card personalized, easy, memorable, cost effective, and encourage repeat sales from their customers. And if the occasion calls for it, they can also send impactful gifts from our online catalogue, and have it, wrapped, personalized and delivered to their clients.

1) make decisions as if you are running this business using your own money

2) become self-sustainable as soon as possible

3) reduce setup cost to the minimal – the idea is to have a nice working environment, not the next Google campus. Get 2nd hand equipments if you have to, rent or outsource whenever you can.

4) check and watch your operational expenditure like a hawk – analyze the figures on a weekly basis at first, and then when it’s much more stable a bi-weekly check would do. Eliminate or cut down certain expenditures that can jeopardize the company’s survival, especially the recurring ones (hint: payroll). Watch your cash balance monthly and keep it at a healthy level, say around 20 to 30% of total turnover would be a good benchmark for starter. The higher the better.

5) when times are good, always prepare for the storm ahead, vice versa. This is applicable financially. When you have ample of reserve, it’s tempting to go on a splurge. Good times don’t last, so do bad ones.

6) always remember that your resources are finite- time, manpower/womanpower, cash. Hence, speed to market is crucial, and generating businesses should always be the top, if not the only priority for a start-up, despite what the perfectionist might think.

Pin wrote:

1. Have at least THREE directors, not two. Can you imagine a vote with onlytwo voters? It is a die-lock but it is so common in a partnership especiallywhen requirement ask you for just two directors minimum for a privatelimited company in Malaysia.

2. No equal shares in a partnership. A lot of startups with two founder choose to remain in 50/50 share structure from the RM2-company, hmm. Time to chance!

3. Share allocation, how and why? It is too easy to give by mouth than words. Put it to agreement, both side should have an understanding of what to receive and what to give. If one side not delivering, the another side should have a reverse plan, discussed and written down.

4. Often, one party was challenged because the said agreement was never done. In judge terms, it is fine- as long as you have the proof of conduct to show your involvement. Email backup and other important archieve can be of useful sometimes.

5. Money, money, money. Define a process for how to deal with money in your company. For example, what is the procedure of making a payment by check?

Many startup mix up personal & business money together, which is definitely not a good practise. You will take even longer time to sort this out when your company grows later.

Mel wrote: dont hv a suitable partner in mind. I thought of working solo all the while. Don’t mind to hv consultancy partner, but a bizness partner??

Find it hard to entertain that thought as of yet.

Whats yr experience and advise on this area? Can i just put a pseudo name?? Like my mom, hahah.

At pre-seed stage, most companies just can’t afford(or don’t need) more than one core team member but I guess there’s an exception since you’re applying for a grant. IMHO, if you know how to realize the idea (where to outsource etc), then it’s better if you do it on your own (or with one partner) to cut cost and headaches. ;p

Any thoughts? Pin is right, the 99/1 is even better if you’re just using her name.

George wrote: Just share a bit. Private Limited company need at least 2 partners to be formed. However, you can get a “Sleeping Partner” thus you can have the full ownership of your company. Alternatively, a partner can be a company as well.

However, in long term perspective, one man show is really ain’t going anywhere. Find a real partner that can help in your work else you may ended up working 7 days a week.

Mukmin wrote:
For what it’s worth, Mike Tee advised me to go the 90/10 route. Find someone who has done a similar project in the past for CV purposes, use his name. His pay is the $1500/mo allowance for his work.

And after completion of the project, you can buy out his shares and use your mother’s name. It’s a requirement by the ROC for a SDN BHD to have at least 2 directors.

Keng Yew Tham wrote:
% partnership is very important identify the key driver in your organization most of the time, there will be only 1. cases like mike and devan are rare. if its you, then you should be holding majority share. please dont go 50/50 or 40/30/30 or worse 33/33/33 reason being in socialwalks case we applied for venture capital injection and we were initially in the stupid 33/33/33 group and once the VC came in, they would be the single biggest shareholder its damn dumb. even VCs will advise against it. and u gotta have a really cool core team who will stick with your decision to revise shareholding. this gave me a damn big headache for the longest time hope u dont have to go thru the same.

Avijit Paul wrote:
Hi Melinda, If you ask me, I would say – You definitely need a partner. And no matter how much you think you can do it all – I would say you cant. It is a seemingly good solution to get a “sleeping” partner, but since I believe you are doing something on technology, if you dont have good partners it is just a matter of time before you snap.

Lets say you are one person. so you have to do
1. Accounting – all the costing things
2. Reporting – Mdec and any other reporting
3. Development- You might outsource but you have to monitor
4. Sales – You got to go to sales meeting
5. Marketing – if people dont know you then you cant sell anything.
6. R& D / Innovation – You got to improve your product. Else when you are successful someone will come and take you out.
7. Networking: You need to meet people too. You will be surprised how often you get deals done because someone you knew, knew the person in charge and they thought are cool.

I like this quote a lot – “it takes 10 years to be a overnight success”. Without a partner I think it might just take 30.

Hi Mukmin, I discouraged Melinda from submitting her mom as a secondary member because MDeC will require CVs and stuff. Not sure if they do any verifications, but best to err on the safe side. RM150k bro! But since MDeC doesn’t put a rule on the shareholding, technically you can have a friend as a partner with a 90-10 share, and then buy him out after the contract ends.

Think globally and not technically. How many people in the world are lacking of clean water, how many people need a Paypal account to survive…

Dr. Lee and Aiktern, exploring the Postgraduate program

You can turn something simple to very profitable!

From Dr. Lee Yee Loon, UTHM

My first proposal was rejected immediately after it was presented to a VC back in year 2002. In the past, we never stop looking for investor. Ask yourself, if you are given USD100,000 the same time as when Google’s founder received their first fund- are you able to come out with another Google?

Securing a funding has nothing to do in getting your business model and system right. I see those Restaurants near my office open-close and changed hand every 6-12 months. I will not agree if this is because of not enough renovation or marketing budget. Surprisingly, I found heavy-renovated shops closed faster than those without.

How to start an online business without funding? You might already have a company which is offering some services, or working full time and earning a salary, or working on a part-time project or freelance job… If you’re struggling every month to make ends meet, read this:

1. It is easier to save cost than increasing the revenue.
2. Reduce number of revenue sources and keep those without noise.
3. It’s never impossible to turn active income to passive.

I have a story to share:

You are looking for water in a desert. Suddenly, there are two people coming to you. One of them is giving you a glass of water, while another one is telling you the way to find the river which is far far far away from here. You drink the water and start setting your way to find the river. Just when you start feeling thirsty again, one of them appear in front of you and offer you another glass of water. This happen again and again, and at last…

You decided to stop searching for the river. Instead, you start to plan of how to ask for a Coke than water.

What if that person never appear again with water? I suppose the river can offer unlimited water but why it doesn’t sound attractive again? This is the dangerous part when you have set a long term goal but is too carried away by the short term benefit which shouldn’t be seen as revenue.

The new amount has been tripled because the categories of funded items using the grant money have been expanded to include market research and access, IP (Intellectual Property) search and registration, product testing and certification, and product packaging on top of the presently funded categories of development of prototypes, proofs of concept and business plans.

A resource centre for innovative ideas, Cradle provides funding, assistance and guidance to help technology entrepreneurs turn their ideas into reality.