I always wonder why there are businesses taking off within 2-3 years without proven and solid business model in practise. In best, you can even setup a company with 2 ringgit and let the rest done by other parties.
I finally found an answer when I actually involved with such company.
The company is DropZone Sdn Bhd, a Malaysian courier company which is found by Mr. Sham Ismail Tom.
My bad business experience is as below, it is totally an experience sharing. You are adviced to read with your own judgement and discretion. I do not held any responsibility for whatever consequences incurr.
This company had an aggressive promotion and advertisement during year 2006. That promotion was not merely newspaper advertisement, but rather bombarding its slogan and its service profile in TV3 daily and I think hourly. This was incredible and amazing. It should be a good company with strong background. Yes, everyone think in such a way, and of course, you are absolutely normal with no mental retardation. According to its web site, this company was saying they are collaborating with Caltex to setup courier service station nationwide. Wow!! Sounds good. You were 100% convinced to believe this company was financially strong and managed by a team of professional.
Yes, you should always ... not until you were involved.
Luckily, one day, I received a phone call from a Malay guy saying his company needs security service to prevent discruption from unknown parties. For sure, I attended the appointment and were introduced to Mr Sham Ismail Tom.
I were asked to deployed several security guards to safe guard his office from any form of discruption, including those were debt collectors, misbehave customers or even unknown problematic parties. This was just a usual deal without any special expertise or even technological equipments to complete. I was gratefully accepted this job. As usual, we signed contract for certain period of months. I deployed a few guards in his office in Ara Damansara. The guards worked in day shift and night shift.
As my customer predicted, the premise owner came out from time to time to collect rental in bad temper. He looked very angry and emotionally to collect the debt (my guard told me). Also, there were some contractors came out from time to time to collect payment in bad temper. Some contractors even threaten to take away office equipments to offset its debt. Of course, that's my reponsiblity to prevent him from accessing the premise and asked him away (of course, my guard was professional in these job). A few months pass and there were so many debtors came out, perhaps daily or weekly, in bad temper and threaten mood.
This company finally made a decision to move to Section 13, Petaling Jaya. My contract ended and there were a overdue amount of about RM40,000++. I tried to contact Mr Sham Ismail Tom, but were informed to delay the payment. I were also told to be patient because he was getting a huge softloan amouting to RM5,000,000 from local bank in pre-approved way. Sometimes, I were told by his financial manager to be wait because of the business starting and need more cash flow to pay salaries, rental and commissions. But, from what I understand, they were collecting minimum RM200,000 for each franchised branch outlet. Mine was merely a small fraction amount and they should be able to pay for.
I keep asking from them. I beg them. I cry from them.
Soon after, I realised that I were one of the debt collectors who came out from time to time in bad temper. According to my accountant's advice, I have no choice, I have to write off this debt in my profit-and-lost for year 2007. I have no choice, I have to forget this bad experience although I reluctant to do so....
Finally, I smile because I have such a lesson in my life and not many people could ever have.
On year 2008, I receive a phone call, knowing as a business consultant representing DropZone Sdn Bhd to inform me for a financial re-structure exercise ...
I smile because I understand why so many companies in Malaysia are successful even without a proper and solid business model.
How about you, :) ?