http://www.asiaone.com/Business/SME+Central/Prime+Movers/Story/A1Story20090527-144278.html
Thu, May 28, 2009
The Business Times
Never too late to learn
By CHEN HUIFEN
IF anyone should be held up as a role model to encourage SME bosses to 'go back to school', William Tan would be a good choice.
The third-generation scion of a 70-year-old family business, Hock Lian Huat Foodstuff Industry, has been taking all kinds of courses since 2006, partly because of the little formal education he had.
'I only studied up to secondary one,' he told BT. 'I knew very little. What I knew was picked up from experience. So, one of the first courses I went for was on business management.'
Since that first course, he has piled on about 20 more, some of which led to a certificate or diploma, while others, in cultural studies and the psychology of potential, were not even directly related to business. His enthusiasm is so great that he even heads to Taiwan or Malaysia for courses.
'It's also a platform for networking,' explained the Mandarin-speaking Mr Tan. 'You'll meet people, widen your social circle and business networks. I met several bosses who are also in the food industry, and we compared notes. Some have also become my role models.'
His determination to pick up more knowledge stems largely from a responsibility to grow the family business, which was started by his paternal grandfather, Gim Tian, in 1928. Grandpa had arrived from Fujian, where he had already been making a living selling snacks such as wu xiang, or ngoh hiang in the Hokkien dialect (literally, five spices), and xia bing (prawn crackers). Very soon, the snacks became a hit with the locals in Singapore, and business grew.
The food peddler had such a thriving business that he had a few helpers at his stall. As demand grew, he thought up the idea of letting the helpers set up stalls in other areas. The late Mr Tan would make the snacks in bulk and supply them to the food peddlers. And he would share the profits with them, much like today's concept of franchising.
But the implementation of a licensing system in the 1960s meant that street peddlers no longer had to get permission from influential suppliers like the late Mr Tan to be able to set up a stall. So the business model was transformed to that of a wholesaler.
In 1964, the founder's son, Ah Lay, took over the business and named it Hock Lian Huat, taking a character each from the names of his three sons. He expanded the product offerings from four to more than 30, including fishballs, egg rolls, spring rolls and corn crackers.
By the time Mr Tan took over the helm in 1995, the sole proprietorship was cruising at a comfortable level. Hock Lian Huat was the market leader in the supply of wu xiang and its peripheral products. As he candidly revealed, he spent plenty of time playing golf, and was not hands-on in the business. It came to a point where new orders for the day were not entertained once the trucks were out.
But two things changed all that - one, a business blow; and the other, a family tragedy.
A major customer 'pulled away' two of his workers and started manufacturing the products on his own. And that customer accounted for a sizeable portion of Hock Lian Huat's turnover.
Separately, a worksite accident at the factory left his wife paralysed from the waist down and blinded in one eye.
'I went through a period of self-reflection,' says Mr Tan. 'It just dawned on me that our attitude was terrible.'
Hock Lian Huat started paying more attention to its customers. Mr Tan began active marketing to hawkers - those who were selling wu xiang, and those who sold other types of food which may use his products as ingredients.
To help new hawkers churn out tasty food, Hock Lian Huat offers chilli, bee hoon sauces and even tips on frying. Other than food products, it also supplies necessities such as cooking oil, disposable chopsticks and plastic bags.
By 2002, Hock Lian Huat was registered as a private limited firm, posting GST. It implemented stock-taking practices, experimented with retail (it runs its own hawker stall in Toa Payoh) and carried out a brand-building exercise that included setting up a Web presence. According to Mr Tan, the company now has an estimated 80 per cent market share in Singapore, with a monthly turnover exceeding $220,000.
He also made more effort to develop and motivate his workers. Soon, the number of products expanded to more than 40. And the company is making plans to open more hawker stalls under its Hock Lian Huat name, as a showcase for potential foreign partners or franchisees.
On the manufacturing end, its factory is applying for HACCP certification which it hopes to obtain by the end of this year. Mr Tan is also exploring the halal market.
At the same time, initial tests on vacuum packaging have been done to see how long the snacks can last without preservatives. The idea is to target wu xiang products for the instant consumption market - buy from the supermarket or convenience store, heat in the microwave, and eat.
'This will probably take a few more years,' he says. 'Now, our priority is to build the brand over the next two years, expand our retail reach, and penetrate the halal market. After that, export.'
It looks like the man will not let his lack of schooling get in the way. 'It is never too late to learn,' he says. 'Many of the things I learn today are very relevant to my business. Now I understand why people say shu zhong zi you huang jin wu (loosely translated: knowledge is wealth).'
This article was first published in The Business Times.
Thu, May 28, 2009
The Business Times
Never too late to learn
By CHEN HUIFEN
IF anyone should be held up as a role model to encourage SME bosses to 'go back to school', William Tan would be a good choice.
The third-generation scion of a 70-year-old family business, Hock Lian Huat Foodstuff Industry, has been taking all kinds of courses since 2006, partly because of the little formal education he had.
'I only studied up to secondary one,' he told BT. 'I knew very little. What I knew was picked up from experience. So, one of the first courses I went for was on business management.'
Since that first course, he has piled on about 20 more, some of which led to a certificate or diploma, while others, in cultural studies and the psychology of potential, were not even directly related to business. His enthusiasm is so great that he even heads to Taiwan or Malaysia for courses.
'It's also a platform for networking,' explained the Mandarin-speaking Mr Tan. 'You'll meet people, widen your social circle and business networks. I met several bosses who are also in the food industry, and we compared notes. Some have also become my role models.'
His determination to pick up more knowledge stems largely from a responsibility to grow the family business, which was started by his paternal grandfather, Gim Tian, in 1928. Grandpa had arrived from Fujian, where he had already been making a living selling snacks such as wu xiang, or ngoh hiang in the Hokkien dialect (literally, five spices), and xia bing (prawn crackers). Very soon, the snacks became a hit with the locals in Singapore, and business grew.
The food peddler had such a thriving business that he had a few helpers at his stall. As demand grew, he thought up the idea of letting the helpers set up stalls in other areas. The late Mr Tan would make the snacks in bulk and supply them to the food peddlers. And he would share the profits with them, much like today's concept of franchising.
But the implementation of a licensing system in the 1960s meant that street peddlers no longer had to get permission from influential suppliers like the late Mr Tan to be able to set up a stall. So the business model was transformed to that of a wholesaler.
In 1964, the founder's son, Ah Lay, took over the business and named it Hock Lian Huat, taking a character each from the names of his three sons. He expanded the product offerings from four to more than 30, including fishballs, egg rolls, spring rolls and corn crackers.
By the time Mr Tan took over the helm in 1995, the sole proprietorship was cruising at a comfortable level. Hock Lian Huat was the market leader in the supply of wu xiang and its peripheral products. As he candidly revealed, he spent plenty of time playing golf, and was not hands-on in the business. It came to a point where new orders for the day were not entertained once the trucks were out.
But two things changed all that - one, a business blow; and the other, a family tragedy.
A major customer 'pulled away' two of his workers and started manufacturing the products on his own. And that customer accounted for a sizeable portion of Hock Lian Huat's turnover.
Separately, a worksite accident at the factory left his wife paralysed from the waist down and blinded in one eye.
'I went through a period of self-reflection,' says Mr Tan. 'It just dawned on me that our attitude was terrible.'
Hock Lian Huat started paying more attention to its customers. Mr Tan began active marketing to hawkers - those who were selling wu xiang, and those who sold other types of food which may use his products as ingredients.
To help new hawkers churn out tasty food, Hock Lian Huat offers chilli, bee hoon sauces and even tips on frying. Other than food products, it also supplies necessities such as cooking oil, disposable chopsticks and plastic bags.
By 2002, Hock Lian Huat was registered as a private limited firm, posting GST. It implemented stock-taking practices, experimented with retail (it runs its own hawker stall in Toa Payoh) and carried out a brand-building exercise that included setting up a Web presence. According to Mr Tan, the company now has an estimated 80 per cent market share in Singapore, with a monthly turnover exceeding $220,000.
He also made more effort to develop and motivate his workers. Soon, the number of products expanded to more than 40. And the company is making plans to open more hawker stalls under its Hock Lian Huat name, as a showcase for potential foreign partners or franchisees.
On the manufacturing end, its factory is applying for HACCP certification which it hopes to obtain by the end of this year. Mr Tan is also exploring the halal market.
At the same time, initial tests on vacuum packaging have been done to see how long the snacks can last without preservatives. The idea is to target wu xiang products for the instant consumption market - buy from the supermarket or convenience store, heat in the microwave, and eat.
'This will probably take a few more years,' he says. 'Now, our priority is to build the brand over the next two years, expand our retail reach, and penetrate the halal market. After that, export.'
It looks like the man will not let his lack of schooling get in the way. 'It is never too late to learn,' he says. 'Many of the things I learn today are very relevant to my business. Now I understand why people say shu zhong zi you huang jin wu (loosely translated: knowledge is wealth).'
This article was first published in The Business Times.
