Benita Aw Yeong | The New Paper | Mon Jun 25 2012
There are more millionaires here now and among them, entrepreneurs who started out young.
After all, if fortune favours the brave, then the young have a leg up in the cut-throat world of wheeling and dealing.
After all, if fortune favours the brave, then the young have a leg up in the cut-throat world of wheeling and dealing.
The New Paper on Sunday spoke to four entrepreneurs who started out young. A common theme emerged - their battle cry is no fear.
Meet the million-dollar babes
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Take Miss Magdalene Chan (right), for example.
She is only 20 years old, but already runs a million-dollar business.
Miss Chan and her 24-year-old sister, Clare, are bosses of Hervelvetvase, a fashion blogshop which has been making an annual seven-figure revenue for the past two years. It started in 2007.
The younger Miss Chan, who recently graduated from high school at the Overseas Family School here, says her friends do tease her.
"Sometimes they call me Millionaire Mag for fun," she says with a laugh.
Two 10-piece collections are launched with the help of their 12-women team every week.
Most of the pieces, priced between $20 and $30, are designed by the duo, then sent to China for manufacturing.
The Chan sisters are among the growing number of rich who call Singapore home.
Born to a Malaysian housewife mother and a businessman father who is from Hong Kong, they have been living in Singapore for the past 17 years and are permanent residents here.
Social media has been integral in the success of their business, say the sisters.
"Platforms like Facebook help our customers to see the previews of our collections and to share them," says Clare.
Their business started in 2007, with just three pieces of clothing sourced from the wholesale streets of Melbourne, Australia.
Then, Clare was an undergraduate studying psychology at Monash University. She had an insatiable appetite for shopping.
"I noticed that the clothing choices back home were quite limited and if it was a pretty design, it would be worn virtually by everyone, losing the exclusivity factor," she says.
Meet the million-dollar babes
Take Miss Magdalene Chan (right), for example.
She is only 20 years old, but already runs a million-dollar business.
Miss Chan and her 24-year-old sister, Clare, are bosses of Hervelvetvase, a fashion blogshop which has been making an annual seven-figure revenue for the past two years. It started in 2007.
The younger Miss Chan, who recently graduated from high school at the Overseas Family School here, says her friends do tease her.
"Sometimes they call me Millionaire Mag for fun," she says with a laugh.
Two 10-piece collections are launched with the help of their 12-women team every week.
Most of the pieces, priced between $20 and $30, are designed by the duo, then sent to China for manufacturing.
The Chan sisters are among the growing number of rich who call Singapore home.
Born to a Malaysian housewife mother and a businessman father who is from Hong Kong, they have been living in Singapore for the past 17 years and are permanent residents here.
Social media has been integral in the success of their business, say the sisters.
"Platforms like Facebook help our customers to see the previews of our collections and to share them," says Clare.
Their business started in 2007, with just three pieces of clothing sourced from the wholesale streets of Melbourne, Australia.
Then, Clare was an undergraduate studying psychology at Monash University. She had an insatiable appetite for shopping.
"I noticed that the clothing choices back home were quite limited and if it was a pretty design, it would be worn virtually by everyone, losing the exclusivity factor," she says.
The first collection they launched, imported from Australia, was snapped up and spurred them to expand the business.
But over the years, competition has intensified exponentially, says the duo.
When they first started, there were only a handful of players in the local blogshop scene, a far cry from the thousands which occupy cyberspace these days.
The competition can be daunting, they say.
"The (online shopping) market has become saturated.
"Even as one of the trailblazers of the industry and having operated for more than five years, we still find ourselves shaken from time to time by the sheer amount of competitors who are vying for customers," says Clare.
Although the women have their father, a director of his own company, as a mentor, they felt like "two lost sheep" when they started out on their own.
Being young and female added to the challenge, they say.
"There were countless times we were ripped off by suppliers.
"In a particularly bad case, a supplier we went to in China cheated us of a five-figure amount and disappeared with our own designs, which we sent to his factory to manufacture.
"Some time later, we saw them floating about in Singapore," says Miss Clare.
"But the business offers us a great sense of achievement and satisfaction especially when it comes to drawing a salary," says Magdalene.
In fact, this reporter spotted a pair of Chanel ballet flats on Clare and a designer bag on her younger sister.
But they are quick to add that they are a lot more aware of the value of a dollar now.
"We do a lot of budgeting and financing in our business, and that flows into our decision-making when it comes to personal things, whether it be buying a pair of shoes or taking up a course," says Clare.
Young and restless
His parents had hopes of him clinching a government scholarship, but Mr Marcus Cheng took an alternative route.
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Three years ago, the 32-year-old founded Acclivis Technologies and Solutions, an IT company, together with two partners.
Within its first year of operation, the company reaped an annual revenue of $15 million . Last year, this figure jumped to $22 million.
Starting his own business has always been "at the back of his mind" since his university days, says this father of two toddlers, aged two and four.
After graduating from Nanyang Technological University in 2005, he joined IBM, where, as a sales specialist, he sold IT hardware and software solutions to enterprises.
Four years later, he took the plunge to become his own boss.
He is glad he started young.
Mr Cheng, whose partners are both in their 40s, says being just past 30 years old has its advantages.
High energy level is something he is grateful for - working for 24 hours without sleep is still a feat he can manage when there are important tenders to submit.
"I think when you're younger you're also more in tune with the IT generation, which is key for someone in my position.
"Responding quickly via the Blackberry and e-mails is also something I don't have to take too much time to get used to," he says.
Still, starting out on his own was a risky move, especially because he was leaving a relatively stable job at an established MNC.
He also had a wife and young son to support.
"I remember the day I did the exit interview at IBM, then walked across the road to our tiny 1,500 sqft office.
"It was a bit surreal. I don't think I would have been able to do it without my wife's support," says Mr Cheng.
Acclivis supplies the needs of enterprises, from data management to backup and disaster recovery. The early months were fraught with challenges, he says.
"The IBM badge was suddenly taken away and we had to talk to clients who did not even know how to pronounce our company name.
Hiring the right people was also not an easy task, says this vivacious and straight-talking man. "I remember at some interviews I conducted, I almost had to sell them the job," Mr Cheng says jokingly.
"We were a small start-up, and our office was in Changi. Some didn't want the job because they had to travel so far."
But over the years, competition has intensified exponentially, says the duo.
When they first started, there were only a handful of players in the local blogshop scene, a far cry from the thousands which occupy cyberspace these days.
The competition can be daunting, they say.
"The (online shopping) market has become saturated.
"Even as one of the trailblazers of the industry and having operated for more than five years, we still find ourselves shaken from time to time by the sheer amount of competitors who are vying for customers," says Clare.
Although the women have their father, a director of his own company, as a mentor, they felt like "two lost sheep" when they started out on their own.
Being young and female added to the challenge, they say.
"There were countless times we were ripped off by suppliers.
"In a particularly bad case, a supplier we went to in China cheated us of a five-figure amount and disappeared with our own designs, which we sent to his factory to manufacture.
"Some time later, we saw them floating about in Singapore," says Miss Clare.
"But the business offers us a great sense of achievement and satisfaction especially when it comes to drawing a salary," says Magdalene.
In fact, this reporter spotted a pair of Chanel ballet flats on Clare and a designer bag on her younger sister.
But they are quick to add that they are a lot more aware of the value of a dollar now.
"We do a lot of budgeting and financing in our business, and that flows into our decision-making when it comes to personal things, whether it be buying a pair of shoes or taking up a course," says Clare.
Young and restless
His parents had hopes of him clinching a government scholarship, but Mr Marcus Cheng took an alternative route.
Three years ago, the 32-year-old founded Acclivis Technologies and Solutions, an IT company, together with two partners.
Within its first year of operation, the company reaped an annual revenue of $15 million . Last year, this figure jumped to $22 million.
Starting his own business has always been "at the back of his mind" since his university days, says this father of two toddlers, aged two and four.
After graduating from Nanyang Technological University in 2005, he joined IBM, where, as a sales specialist, he sold IT hardware and software solutions to enterprises.
Four years later, he took the plunge to become his own boss.
He is glad he started young.
Mr Cheng, whose partners are both in their 40s, says being just past 30 years old has its advantages.
High energy level is something he is grateful for - working for 24 hours without sleep is still a feat he can manage when there are important tenders to submit.
"I think when you're younger you're also more in tune with the IT generation, which is key for someone in my position.
"Responding quickly via the Blackberry and e-mails is also something I don't have to take too much time to get used to," he says.
Still, starting out on his own was a risky move, especially because he was leaving a relatively stable job at an established MNC.
He also had a wife and young son to support.
"I remember the day I did the exit interview at IBM, then walked across the road to our tiny 1,500 sqft office.
"It was a bit surreal. I don't think I would have been able to do it without my wife's support," says Mr Cheng.
Acclivis supplies the needs of enterprises, from data management to backup and disaster recovery. The early months were fraught with challenges, he says.
"The IBM badge was suddenly taken away and we had to talk to clients who did not even know how to pronounce our company name.
Hiring the right people was also not an easy task, says this vivacious and straight-talking man. "I remember at some interviews I conducted, I almost had to sell them the job," Mr Cheng says jokingly.
"We were a small start-up, and our office was in Changi. Some didn't want the job because they had to travel so far."
Fortunately, business mentors came his way to help him through the hard times, he says. The company, now headquartered in the Paya Lebar area, employs about 80 people and has a branch in Indonesia.
It can be lonely at the top, confesses Mr Cheng, who often has take-out lunches at his desk. And the pressure can be a bit suffocating.
"If the company makes a mistake or overlooks a certain aspect, you really feel it more than everyone else," he says.
But there are perks to being a boss.
Mr Cheng says: "As an employee, some of your ideas will be met with resistance. "But as a boss, you have greater say in pushing your ideas into reality. And when those ideas work, there's a tremendous sense of satisfaction."
AGE: 32
BUSINESS: IT
REVENUE: $22m
Young man, old soul
The only thing young about this 28-year-old towkay is his body.
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"I feel damn old," he says with a chuckle, when this reporter asks if he is someone with an old soul.
Meet the managing director of the Timbre Group, Mr Edward Chia, who started the company with his partner, Mr Danny Loong.
Timbre, founded seven years ago, posted a revenue of $13 million last year and is expected to rake in $12 million to $14 million this year.
Asked if he has made his first million since starting his business, Mr Chia hemmed and hawed before settling on a non-committal reply: "It's possible."
The brand has several food and beverage outlets which feature live bands, a music school and an artiste management arm under its name.
It also organises large-scale events such as the recently-concluded Beerfest Asia.
It is not surprising that this young entrepreneur has grown up quickly.
"There's responsibility when you have a huge payroll and a company to run.
"Most of my friends are older than me, and I've always got along well with people who are more mature," he says.
Mr Chia's own maturity peeks through in this interview.
Like a seasoned newsmaker, he fields questions articulately in a low, steady tone, while his clasped hands rest on his leg.
While others his age were slogging (or partying) their guts out as undergraduates, Mr Chia, then 21, was putting his energy into his business - Timbre@the Substation.
Keeping up with his studies at the National University of Singapore, where he studied economics and political science, while taking care of the business was a challenge.
Very little time was left to make friends, he says.
"I did feel a little out of place at university because I didn't really have time to socialise," he says.
His last proper break from work was a two-week trip to Turkey two years ago.
In the first five years that he started his business, he did not go on holidays beyond short weekend trips.
It's all worth it, though, he says.
"The dream was always to promote and develop Singapore music, and I've always been a person who enjoyed turning ideas into reality."
It can be lonely at the top, confesses Mr Cheng, who often has take-out lunches at his desk. And the pressure can be a bit suffocating.
"If the company makes a mistake or overlooks a certain aspect, you really feel it more than everyone else," he says.
But there are perks to being a boss.
Mr Cheng says: "As an employee, some of your ideas will be met with resistance. "But as a boss, you have greater say in pushing your ideas into reality. And when those ideas work, there's a tremendous sense of satisfaction."
AGE: 32
BUSINESS: IT
REVENUE: $22m
Young man, old soul
The only thing young about this 28-year-old towkay is his body.
"I feel damn old," he says with a chuckle, when this reporter asks if he is someone with an old soul.
Meet the managing director of the Timbre Group, Mr Edward Chia, who started the company with his partner, Mr Danny Loong.
Timbre, founded seven years ago, posted a revenue of $13 million last year and is expected to rake in $12 million to $14 million this year.
Asked if he has made his first million since starting his business, Mr Chia hemmed and hawed before settling on a non-committal reply: "It's possible."
The brand has several food and beverage outlets which feature live bands, a music school and an artiste management arm under its name.
It also organises large-scale events such as the recently-concluded Beerfest Asia.
It is not surprising that this young entrepreneur has grown up quickly.
"There's responsibility when you have a huge payroll and a company to run.
"Most of my friends are older than me, and I've always got along well with people who are more mature," he says.
Mr Chia's own maturity peeks through in this interview.
Like a seasoned newsmaker, he fields questions articulately in a low, steady tone, while his clasped hands rest on his leg.
While others his age were slogging (or partying) their guts out as undergraduates, Mr Chia, then 21, was putting his energy into his business - Timbre@the Substation.
Keeping up with his studies at the National University of Singapore, where he studied economics and political science, while taking care of the business was a challenge.
Very little time was left to make friends, he says.
"I did feel a little out of place at university because I didn't really have time to socialise," he says.
His last proper break from work was a two-week trip to Turkey two years ago.
In the first five years that he started his business, he did not go on holidays beyond short weekend trips.
It's all worth it, though, he says.
"The dream was always to promote and develop Singapore music, and I've always been a person who enjoyed turning ideas into reality."
At age 11, he used to breed and sell hamsters to a pet shop.
"I don't remember if it was even for a profit, but I sold the hamsters for $3 each.
"I've always been a kid who daydreamed often and had weird ideas. I still daydream a lot," he jokes.
He does not regret starting young.
"You have fewer responsibilities, less opportunity costs and a larger risk appetite," he explains.
He says one of the biggest misconceptions people have about his job is that he only works at night.
"They think that because I run bars which operate mainly at night that I'm very free during the day."
Nothing could be further from the truth, he says.
There are meetings with the landlord to attend, partnerships to discuss and deals to close. These are bits of the business he thrives on.
The part he doesn't enjoy so much? People management.
"People are the hardest aspect of management, especially when there are issues to settle between staff. It's not productive and it's time-consuming," he explains.
"People think that when you're the boss, you can behave how you want, but actually you are the one who has to adapt most to your staff in order to communicate well with them," he says.
Seven years into the business, he still subscribes to the cliche that every day is a new learning journey.
The next lap for the business involves sustaining what it has already achieved, while exploring overseas expansion, he says.
"We're thinking of expanding to places like Kuala Lumpur, Hong Kong and Sri Lanka. "But at the same time, I'm concerned about not obsessing only about the top line but growing the margins, and at a pace which the staff can cope with."
AGE: 28
BUSINESS: F&B entertainment
REVENUE: $13m
Entrepreneurs here starting at younger age
Entrepreneurs here are getting "younger and younger", notes Singapore Management University (SMU) Professor Desai Arcot Narasimhalu.
"I don't remember if it was even for a profit, but I sold the hamsters for $3 each.
"I've always been a kid who daydreamed often and had weird ideas. I still daydream a lot," he jokes.
He does not regret starting young.
"You have fewer responsibilities, less opportunity costs and a larger risk appetite," he explains.
He says one of the biggest misconceptions people have about his job is that he only works at night.
"They think that because I run bars which operate mainly at night that I'm very free during the day."
Nothing could be further from the truth, he says.
There are meetings with the landlord to attend, partnerships to discuss and deals to close. These are bits of the business he thrives on.
The part he doesn't enjoy so much? People management.
"People are the hardest aspect of management, especially when there are issues to settle between staff. It's not productive and it's time-consuming," he explains.
"People think that when you're the boss, you can behave how you want, but actually you are the one who has to adapt most to your staff in order to communicate well with them," he says.
Seven years into the business, he still subscribes to the cliche that every day is a new learning journey.
The next lap for the business involves sustaining what it has already achieved, while exploring overseas expansion, he says.
"We're thinking of expanding to places like Kuala Lumpur, Hong Kong and Sri Lanka. "But at the same time, I'm concerned about not obsessing only about the top line but growing the margins, and at a pace which the staff can cope with."
AGE: 28
BUSINESS: F&B entertainment
REVENUE: $13m
Entrepreneurs here starting at younger age
Entrepreneurs here are getting "younger and younger", notes Singapore Management University (SMU) Professor Desai Arcot Narasimhalu.
The youngest he has come across is 18 years old.
But not all start-ups reap revenues greater than $1 million a year.
In fact, it's something "quite rare", says Assistant Professor Leong Kaiwen, who teaches economics at the Nanyang Technological University.
Still, young people are plunging in with their business ideas.
A spokesman for Spring Singapore, which dispenses grants to local start-ups, says applications for the Young Entrepreneurship Scheme for Schools had increased over the years.
The scheme, which began in 2008, provided grants to entrepreneurs under the age of 26.
In its first year, it received 120 applicants, but the number jumped to 200 last year.
It has since been replaced by a similar scheme which has no age limit for applicants.
Starting young has its advantages, says Prof Narasimhalu, who heads SMU's Institute of Innovation and Entrepreneurship.
The younger generation, compared to their more experienced counterparts in the corporate sector, are also more primed to spot "emerging opportunities", especially those in the social media sector, he notes.
Hiccups - and failures - are common among start-ups, says Prof Narasimhalu.
"Venture capitalists (VCs) report that out of 10 start-ups they invest in, one is a big success, three are medium successes and the rest are either failures or "living dead".
"Remember, there are many more start-ups than those funded by the VCs."
A recent report by the Boston Consulting Group (BCG) revealed that the number of millionaire households in Singapore jumped in 2010 to 170,000 from about 123,000 in 2009.
About one in every six households has more than $1 million in assets according to the group's data.
Not all of Singapore's wealthy are tycoons, note analysts.
The rich include entrepreneurs and affluent immigrants, said Mr Tjun Tang, partner and managing director of BCG in Hong Kong, in a Businessweek report.
benitaay@sph.com.sg
This article was first published in The New Paper.
But not all start-ups reap revenues greater than $1 million a year.
In fact, it's something "quite rare", says Assistant Professor Leong Kaiwen, who teaches economics at the Nanyang Technological University.
Still, young people are plunging in with their business ideas.
A spokesman for Spring Singapore, which dispenses grants to local start-ups, says applications for the Young Entrepreneurship Scheme for Schools had increased over the years.
The scheme, which began in 2008, provided grants to entrepreneurs under the age of 26.
In its first year, it received 120 applicants, but the number jumped to 200 last year.
It has since been replaced by a similar scheme which has no age limit for applicants.
Starting young has its advantages, says Prof Narasimhalu, who heads SMU's Institute of Innovation and Entrepreneurship.
The younger generation, compared to their more experienced counterparts in the corporate sector, are also more primed to spot "emerging opportunities", especially those in the social media sector, he notes.
Hiccups - and failures - are common among start-ups, says Prof Narasimhalu.
"Venture capitalists (VCs) report that out of 10 start-ups they invest in, one is a big success, three are medium successes and the rest are either failures or "living dead".
"Remember, there are many more start-ups than those funded by the VCs."
A recent report by the Boston Consulting Group (BCG) revealed that the number of millionaire households in Singapore jumped in 2010 to 170,000 from about 123,000 in 2009.
About one in every six households has more than $1 million in assets according to the group's data.
Not all of Singapore's wealthy are tycoons, note analysts.
The rich include entrepreneurs and affluent immigrants, said Mr Tjun Tang, partner and managing director of BCG in Hong Kong, in a Businessweek report.
benitaay@sph.com.sg
This article was first published in The New Paper.
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