Malaysia has various opportunities for both residents and non-residents to start any type of business. To have a successful business is up to the responsibility of a person, he or she needs to know about the business and the procedures to maintain the business.
Every environment has different procedures, so when you are starting a business you need to learn about your environment. When you want to start a business in Malaysia you need to know about Malaysia, understand the country and the people. And know what kind of products and service can be successful in Malaysia.
Here are the following common mistakes done by new entrepreneurs while forming a business in Malaysia.
1. Kind of business:
Entrepreneurs are normally people who has a lot of creativity and talent to create a product. As an entrepreneur you need to know what kind of business you are interested and what kind of business you like to create. Creating what you like is the most important point of entrepreneur or any business person.
You need to know what kind of product you are making and also know that if these kinds of product are suitable or recognized in the environment. In most cases entrepreneurs fail to ignore the part of products which people prefer.
People preference is an important thing for the factor of gaining profit in the business. creating a product of own interest is not enough to create a business. It is important to know that the connection between the interest of yours and environment are equally related.
2. Type of business:
In Malaysia there are totally five types of business which can be started. The business opened has to be under either one of the following types of business.
- Sole proprietorship
- Partnership
- Limited Liability Partnership (LLP)
- Private Limited Company
- Public Limited Company.
Most often mistakes done in start-up companies is to not register under any of these company types.
3. Setting goals:
It is always important to aim success in a business. The main objective of any business is to have a goal. Goals of a business is the most important factor which drives a team for aiming success, it motivates the team to set goals, aim high and gain profit.
The problem for not setting goals can lead to non-consistency of a business, due to which there is no motivation to start or continue a business.
4. Planning a business:
After setting a goal for a business, the first step is planning. Planning requires a lot of work when it comes to starting a business, planning is a main base when it comes to building a successful business. Planning requires a lot of patience, time and contribution for starting a successful business. Many of you these days find to lose the patience to start a business and fail the main initial process which is the starting process of the business.
5. Patience in business:
Being an entrepreneur who wants to start a business needs to have a lot of patience when it comes to starting a business. Today most of them expect instant gratification which is instant success of a business. Most of you all need to gain profit immediately when you start a business.
But it is important that you need to know that it takes time to gain profit after starting a business. Success does not come overnight immediately after you start a business. Thus, being patient is an important characteristic of a person to start a business.
6. Time taken:
For every person in the earth, time is an irreplaceable asset. Time is the most important thing in the world where people need to use it well. As person who is starting business, you need to analyse your time properly. Being quick is rash and also taking time is also time wasting. You need to do your task according to the required time in order to continue a successful business.
7. Budget flow:
Money plays an important role when it comes to business. But at the same time many of you have a wrong assumption when it comes to starting business with money. It is not necessary to have huge amount of money while starting a business. It is a wrong mindset to think that having large amount of money can gain large amount of business.
Having a limited amount of budget is more than enough to start a successful business. But you need to keep record of all expenses and it is recommended to hire financial assistant in order to assist all your financial statement. Doing this will help you keep a record of where and how you spent and where you need to save money.
8. Partnership:
Selecting a partner with you to run the initial business is very important. He or she needs to be successful and help you by supporting you for the business. A partner needs to be with you from the beginning who will know an overall idea about the business. A partner needs to be chosen carefully; they need to be the person who you can fully trust. They need to be the person where you can rely on them and not cheat on you.
9. Company name:
Naming a company is the simplest common mistake made by most entrepreneurs. Entrepreneurs are known to be creative and though they release promising products in a business world there seems to be a problem. The problem is the name of the company, as mentioned above, the company laws in Malaysia are strict.
Thus, it is important to note that naming of the company plays a vital role when registering the company. The company name as to be unique and different, the name has to be non-repetitive compared to other registered companies. And you need to have 2 or more options as a backup option when choosing a company name.
10. Hiring staff:
When hiring staff members, you need to know if they are efficient or not. Hiring an employee in a company is important. The lesser staff you have the lesser income you get. You need to know that the company always requires staff members including the fact of employees who have the qualification according to the position.
Key points for entrepreneurs to maintain a new business in Malaysia:
- Start a business in which your interest relies on and accordingly compare the kind of business which suites the environment
- Register under a specific type of business according to the business which you are providing
- Have a motivational factor to start a business
- Initial process is a difficult and important step to start a business and thus it requires proper “planning”
- You need to be patient and give it a little time for your business to gain success
- You need to complete your task according to the time. Completing targets are important in a business process
- Have a proper record of your financial statement and plan properly with your business budget
- Choose a partner who will help you and your business. Choose a partner who as a good understanding about the business.
- Choose a company name which is unique and gives an understanding about the type of business
- Staffs chosen to work in your business needs to be efficient and have the qualifications according to the position employed.
Related Articles:
3 Things to Consider Before Starting a Small Business in Malaysia