EMBA proves an invaluable tool for entrepreneurs
Graduates take practical and theoretical aspects of the course and apply them directly to their fledgling businesses

Starting a new business takes more than just a great idea. It also takes detailed planning, a spur to action and a lot of hard work.

“Sometimes, you underestimate the amount of work and have to get used to handling all the faxes, couriers and maintenance yourself,” said Jodie Cheung of J Concept Lounge.

“I realized though, that it also gave me a chance to know every little detail of my business.”

The company opened in September last year and is both an agency representing local fashion designers and a retail outlet selling their party and evening gowns at reasonable prices.

“There is already something like this in London and Paris, but it is pretty new for Hong Kong,” Ms Cheung said.

“I was inspired to try it after visiting the Fashion Week exhibition last year.”

Ms Cheung said she had considered an early version of the idea before completing her EMBA at the Richard Ivey School of Business in 2004. At the time, she was working for a well-known United States-based restaurant chain and, hoping to impress senior management, had tried to transpose lessons from the course into the workplace.
When these initiatives repeatedly failed, she decided, after an interim spell of doing freelance marketing projects, to turn her dream of being in the fashion business into reality.

“It is kind of strange to step out of the corporate world and start on your own. But my first instinct was to get out my Ivey notes and prepare a business plan. I found it really helpful to look back at various cases and see how other people had done it.”

From early last year, she began to contact local designers and sell the concept. They would have the freedom to concentrate on design: she would promote their work and offer an upmarket showroom capable of attracting a new clientele.

To keep things on track, Ms Cheung developed spreadsheets based on a two-year plan that included the monthly costs, sales and product mix needed to break even.

“Plugging in the numbers” has helped her to monitor the daily progress of the business, and to make adjustments along the way.

“Because of the amount of investment, there is always financial pressure, especially when estimated returns are on the edge,” she said. However, the EMBA training definitely made me less afraid of numbers.”

Now, if she runs into unexpected problems, her first step is to set down the options.

This technique has taught her to be creative and confident that any problem can be solved. And more relaxed.

Assuming all goes well, the long-term plan is to expand both “vertically”, with more product categories, and “horizontally”, by getting into overseas markets.

Sanjiv Mahbubani was similarly inspired to take things into his own hands when he saw that his first employer offered no real chance of career progress.

“When you hit a glass ceiling, your entrepreneurial instinct kicks in,” said the managing director of Alpe Sport (HK), which sources and exports footwear and has about 35 employees in Hong Kong and the mainland.

Mr. Mahbubani started out as a merchandiser. In the early'90s, he and a partner set up their own company sourcing garments, toys and shoes for buyers in Europe and South America.

“We kept building and found there was a huge demand for quality footwear out of China,” he said.

The business took off, making it possible to invest in property, stocks, and even schemes in Brazil and Azerbaijan. But when the full force of the Asian financial crisis hit in 1998, everything crashed. In the aftermath, the partners divided what little remained and agreed to go their separate ways.

Resilient by nature, it didn't take Mr. Mahbubani long to start up again.

“I decided I really needed to bolster my skills and know more about the strategy and critical thinking required to run a company,” he said.

“Also, a mentor pointed out that it wasn't enough just to know about sales or the international side of things. I needed to go into the finance, logistic and operations, and get a better perspective.”
In 2001, he enrolled in Ivey's EMBA programme.

“After every module, I would take whatever was most relevant and implement it the very next day,” he said. This could be anything from upgrading the IT system to financial analysis, or reviewing the medium-term marketing plan.

“The programme gave me frameworks and best practices to think through,” he said.

“Basically, I learned how the ‘big boys’ did it, and could tailor that to my own company.”

Mr. Mahbubani said the case-study method made it possible to understand the hardships and pitfalls other companies had encountered, and to realize that even multinationals could get it wrong.

Wide network of contracts is a useful spin-off

For many people, one of the biggest benefits of taking an EMBA is the network of contracts they develop.

“My core study group still meets up every 30 to 45 days,” said Sanjiv Mahbubani, managing director of Alpe Sport (HK), who completed the Ivey programme in 2003.

“Some have even agreed to be on the advisory board of my company, so now I am getting excellent advice from CFOs and marketing directors in different industries on how to steer my business.”

He said one of the recurring challenges for any entrepreneur was securing funds for expansion. During the course, he took the chance to sound out classmates who worked as bankers. This wasn't to get direct advice, but to understand how, in their professional capacity, they would look at certain requests or proposals.

“I could then see my issues from a banker's perspective and, at work, could tailor my responses or business plan accordingly,” Mr. Mahbubani said.

Even today, he can contact former classmates, such as those who specialize in IT, to ask for advice and information on the latest applications or service providers.

“So a lot of value is derived from the programme in that way as well,” he said.

Jodie Cheung of J Concept Lounge had a similar experience with her Ivey classmates when setting up her fashion business last year.

“If I had any doubts, I knew I could ask members of my study group,” said Ms Cheung. “We’re still great friends.”

When studying, what most impressed her was the high level of energy and mutual support among her classmates. She finds that still exists among the group and provides her with an ongoing source of motivation.

“They have helped me out a lot and made me less 'frightened' about whether to do it or not,” she said. “Young people need a pat on the shoulder to get them going and encouragement to push them forward.”

South China Morning Post
Tuesday, February 6, 2007