However, for chinese or asia culture. This always doesn't work.
Indian community like to do small business. They operate their own newspaper retail outlet, a Money changer, a mamak stall, or which we call "Kacang Putih" business. Such small business approach resulted a statistic showing they control less than 3% of Malaysia's economy. Which I feel is not true.
Chinese in Malaysia, Hong Kong and Taiwan (not Singapore) are more entrepreneur. Their partnership is less successful than outsoucing.
I heard a story from Hong Kong:
Two of a long term friend form a partnership. One partner is good at marketing and like to deal with people. The other is good at production. As they complement each other skill. Business has prosper. Then, relationship between partner turn sour when they have dispute over remuneration of partners. Later, the situation become worst when one partner hire a relative of him under to work in the partnership, without the consent of the other. They have dispute over the staff salary as well. Eventually, they have a great fight and they agreed to cease the partnership and operate on their own.
Business turn bad after that. The one who is good at marketing unable to hire a good production staff. Thus, the quality of the work was not as good as before. This has turn customer away. Whereas the other who is skillful in production unable to get enough business as marketing is not his strength. He might be not have the contact or unable to negotiate the best price or unable to provide the good customer service as before. Business turn bad and their separation is prove to be a lose-lose situation.
However, as both of them has bad experience with each other. It is unlikely they become partner again as they have dispute on hiring and numerous other matter.
One of the partner happen to know a amateur business consultant and he seek his advice. The amateur consultant advice them to work together, but not in partnership nor in same company.
They operate under two company. Which they can hire their own staff and control their own expenses. However, they operate as a separate independent business entity. They can work in the same office or have their office next to each other.
One company with good marketing skill get the business. Then they outsource the work to another company at an agreed price. The other company concentrate on production and quality control.
Initially, the partner sceptical about the suggestion. But when he approach the other partner who has quarrel with him before. The other partner was just figuring how to solve the problem of declining sales. He immediately agree to cooperation again.
After few months of operation. Business has prosper again.
This indicate that sometime, outsoucing is better than partnership.
But how to scale the business?
Then you have to read Robert T. Kiyosaki's "Rich Dad, Poor dad" Series. You have to read "Before you quit your job" first. Then, if you want more indept advise. You have to add "The ABC of Building Business Team that Win"
Update: In Taiwan, outsourcing and small business approach has turn the country into on of the largest business cluster in personal computer industry which able to overtake South Korea giant like Samsung LG and Hyundai
Link : Ehlite Junior.com
TechnoratiTag: Business Commentary competitive Economics Economy Malaysia Opinion
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