Johor Baru Umno secretary Abu Talib Alias was being cross-examined by DPP Muhammad Saifuddin Hashim Musaimi over a RM300,000 cheque that he received from Najib in 2015, through one of Najib’s officers, the late Datuk Azlin Alias from the Prime Minister’s Office.
When he was told to identify Najib in court, Abu Talib looked at the dock, where Najib was seated, and said: “There he is. Malu apa, bossku”, which sent the courtroom bursting into laughter. (Sources: thestar)
Najib, who is facing charges related to SRC International fund mismanagement and money laundering, chuckled.
Najib, 66, was prime minister of Malaysia from April 2009 to May 2018, and finance minister from September 2008 to May 2018.
He was charged with abusing the two positions to obtain RM42 million for his gratification by being involved in the government’s decision to issue a federal guarantee for the Retirement Fund Incorporated’s (KWAP) RM4 billion loan to SRC International Sdn Bhd. He was also charged with criminal breach of trust and money-laundering over RM42 million of SRC International funds. The company was initially owned by controversial state investment firm 1Malaysia Development Berhad (1MDB) before it was put under the sole ownership of the Finance Ministry's Minister of Finance (MoF) Inc.
The trial started on April 3 with the Attorney General Tommy Thomas outlining what the prosecution aimed to prove; 35 witnesses have already testified so far while 35 volumes totalling around 7,000 pages of documents have been presented by the prosecution to Najib's lawyers.
Now that you are primed, get ready to jump into this simplified recap and highlights of what the prosecution witnesses (PW) and multiple documents have revealed in the past 17 days of trial: 1. Before SRC International was born The 28th prosecution witness (PW28) Datuk Kamariah Noruddin, former deputy director general (Macro) of the Economic Planning Unit (EPU) in the Prime Minister’s Office, revealed that 1MDB had via Najib applied for a RM3 billion federal grant for SRC International to secure energy supplies. However, Kamariah described 1MDB's August 2010 application for RM3 billion as challenging for the EPU to process as it came directly from the prime minister instead of the usual route of other Cabinet members; also, SRC International was not even set up yet then.
The EPU finally approved in October 2010 only RM20 million to establish SRC International, which was then formed on January 7, 2011. (More info on SRC International can be found here in this Malay Mail story.)
2. How RM4 billion entered SRC International As a newly-formed company, SRC International approached KWAP in June 2011 for a RM3.95 billion loan with 1MDB as the guarantor. (This was via a letter addressed to PM Najib and which allegedly contained his handwritten note of approval to the proposal to borrow from KWAP). PW29 Amirul Imran Ahmat, who was the KWAP officer tasked with drafting proposals for loans sought by SRC International, hinted at what he believed to be the reluctance of the pension fund to lend money to the company. Amirul initially drafted in 2011 a proposal for a RM1 billion loan instead, amid the absence of multiple supporting documents, but the KWAP investment panel on July 5, 2011 deferred its decision until more information was available. Amirul then had to prepare a proposal for a RM2 billion loan to SRC International, which was discussed at the KWAP investment panel meeting on July 19, 2011 in which the KWAP CEO disclosed that Najib had asked to speed up the loan approval. The KWAP investment panel had raised multiple concerns over the issuing of a RM2 billion loan to SRC International that only had RM2 in paid-up capital and the overconcentration of risk in one company. SRC International finally got its first RM2 billion from KWAP in August 2011 after securing a government guarantee for the loan. (This first loan was for the purpose of SRC International's working capital and general investments). SRC International received another RM2 billion in March 2012 from KWAP, within about two weeks of applying for the second loan that was also backed by a government guarantee letter signed by Najib. (This second loan was for the purpose of SRC International's working capital and investments linked to natural resources.)
3. What did SRC International do with its funds?
According to bank officers who have testified, a total of RM85 million flowed out from SRC International's AmIslamic Bank account-650 (where the second RM2 billion loan was transferred from KWAP) a few years later to SRC International's subsidiary Gandingan Mentari Sdn Bhd's AmIslamic Bank account. Bank documents also showed Gandingan Mentari transferred a total of RM50 million to SRC International's purported corporate social responsibility partner Ihsan Perdana Sdn Bhd's Affin Bank account. Ihsan Perdana was later shown to have transferred a total of RM42 million to two of Najib's personal AmIslamic Bank accounts ending with -880 and -906.
4. How money in Najib’s accounts was spent
Najib's two earlier accounts at AmIslamic Bank were closed on August 2013 with a total remaining balance of over RM12 million, and replaced with three accounts at AmIslamic Bank that were all opened on July 2013. The three new Najib accounts were all specially indicated with AmPrivate Banking-1MY, AmPrivate Banking-MY, AmPrivate Banking Y-1MY as the primary name and with Najib's name as the secondary name of the account holder, AmBank Jalan Raja Chulan branch manager R. Uma Devi said. These three Najib accounts had account numbers, but it appears that such information may not necessarily show up in all banking documents at other banks on transactions involving these accounts. AmPrivate Banking-1MY is 2112022011-880, AmPrivate Banking-MY is 2112022011-906, AmPrivate Banking-Y1MY is 2112022011-898. (The two accounts ending -880 and -906 were singled out by the attorney general on the first day of trial as part of the money flows the prosecution will prove.) During the trial, Maybank KL branch manager Halijah Abdul Wahab verified three transactions between the Maybank accounts of Putra Perdana Construction Sdn Bhd (PPCSB), Permai Binaraya Sdn Bhd and the AmBank accounts as part of a larger web of transactions involving multiple accounts and more companies. Two of these also did not bear any account numbers and it took another witness, Maybank Treasury Settlement section head Noorlina Mahmud, to verify via other banking documents that a RM5 million transfer to PPCSB’s Maybank account came from “AmPrivate Banking-MY.”
Just based on the testimony of R. Uma Devi alone — the manager of the AmBank branch were Najib's accounts were opened and active — a dizzying pattern of funds movement in his accounts can be seen.
Curiously, over RM3 million was channelled from one of Najib's accounts to two credit cards — although it has not been disclosed in court to whom the cards belong or their purpose. (For more details of what Uma Devi's testimony revealed, read Malay Mail's previous story of the spider web of money transfers in the Najib accounts.) Bank Negara Malaysia (BNM) later raided the AmBank Group building in July 2015, with the central bank's manager Ahmad Farhan Sharifuddin confirming that AmBank was also fined in November 2015 for failing to report multiple suspicious transactions in six Najib accounts — four current accounts, two credit card accounts. 5. Then there were cheques One of Najib's accounts (-906) was used to issue 14 cheques worth over RM7.2 million between January 30 and February 26, 2015, for purposes such as funding for Barisan Nasional political parties, the promotion of Najib's 1Malaysia campaign, monitoring the local Chinese community's sentiments, a welfare home and for expenses such as water tanks.
There was a separate cheque of RM3.5 million from another Najib account (-898) that was given to a law firm on January 21, 2015. The purpose of this cheque has not been mentioned so far.
Altogether, the cheques from Najib's accounts mentioned so far in the trial come up to RM10,776,514 or over RM10.77 million. The three Najib accounts were closed in March 2015 (less than three years after their opening) with a combined balance of just over RM100,000 that was then sent to Ihsan Perdana. 6. Wage prospects for the politically ambitious? During the trial, witnesses also testified to how much Najib took home as an MP and prime minister. As an MP, Najib received a monthly income of RM10,355.18 (excluding special payments) from 2011 to 2014, which increased to RM19,846.59 from 2015 to 2018, a witness testified. Another witness testified that Najib took home RM48,681.65 monthly as deputy prime minister from January to April 2009, and a total monthly income of RM58,605.15 as prime minister from May 2009 until April 2018, and then a pro-rated salary for May 1 to May 9, 2018 including allowances of RM6,627.09.
Najib received a total of RM1,017,014.39 in May 2018 from the Prime Minister's Office, with the amount including the pro-rated sum and a special RM1 million payment. Also, he further received two special payments of RM22,826.65 and RM11,413.30 in December 2011 and January 2013.
Other memorable incidents that took place during the trial period include witnesses hailing Najib as “Bossku”, his former aide’s unauthorised leak of selected excerpts of the court’s recording of trial proceedings, his lawyer reading the Billion Dollar Whale book out loud in court and Najib denying taking a selfie during court proceedings. Today, KWAP Legal and Secretarial Department vice president Azlida Mazni Arshad, is expected to continue testifying as the 35th prosecution witness. The trial before High Court judge Mohd Nazlan Mohd Ghazali is expected to go on until at least July 3, but may be extended if necessary.
The trial now is at the prosecution stage in which the prosecution must prove that there is a prima facie case for Najib to answer. If the prosecution succeeds, Najib will be ordered to enter his defence and be able to call his own witnesses.
Najib’s lawyer Tan Sri Muhammad Shafee Abdullah has effectively announced his client’s defence would be that he is an alleged victim in a purported “conspiracy” by fugitive businessman Low Taek Jho. Najib also has trial dates scheduled up to April next year for his other criminal cases, which will all be heard in the High Court in Kuala Lumpur. Najib has to be personally present during each of the trials, so the cases cannot be heard on the same days.
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From jeanswear maker to one of Malaysia’s rising artificial intelligence (AI) companies. That is the interesting story of G3 Global Bhd that is unravelling today.
While many companies can attempt to boast the AI buzzword as a business focus, it is not an easy area to venture into.
First you need super computers. Then you need the AI software or algorithms. And then you need to use that software on vast amounts of data in order to build the AI applications for real use.
While G3 Global may have made some inroads into building its own Internet of Things (IoT) platform, it has yet to achieve anything big by itself in the AI space. That was until it signed a deal with China-based SenseTime Group Ltd, touted as the world’s most valuable AI startup.
On April 11, G3 Global told Bursa Malaysia that it will partner with SenseTime to set up Malaysia’s first AI park, in collaboration with China Harbour Engineering Company Ltd (CHEC). The AI park is expected to see more than US$1bil (RM4.13bil) in investments over the next five years
According to G3 Global executive chairman Wan Khalik Wan Muhammad, the AI park is vital in order to build AI research-related public service infrastructure as the base to promote AI technology in Malaysia.
“In addition, this becomes a place for talent to be trained on AI and machine learning,” he said. On Friday, the culmination of the relationship between G3 Global and SenseTime took place, following Prime Minister Tun Dr Mahathir Mohamad’s ongoing official visit to China. Dr Mahathir, accompanied by several Malaysian ministers, visited SenseTime’s Beijing office where they got a first-hand experience of the latest AI technologies and its application in smart city solutions, autonomous driving technology and remote sensing, among others.
During this visit, G3 Global had inked memorandums of understanding (MoU) with SenseTime and CHEC in relation to the AI park project.
G3 Global said in a statement that as the local partner, it will coordinate efforts with the Malaysian authorities and regulators, form local partnerships as well as promote and develop the AI park project. Meanwhile, SenseTime will serve as the AI technology provider for the partnership while CHEC will provide infrastructure engineering and construction services as well as management and maintenance of the park. Valued at over US$4.5bil (RM18.67bil), SenseTime is the fifth national AI platform in China and is also the country’s largest AI algorithm provider. Although it is only less than five years old, the company now serves over 700 customers and partners globally, including the Massachusetts Institute of Technology, Qualcomm, NVIDIA, Honda, Alibaba, vivo and Xiaomi, among others. Based on SenseTime’s website, the startup leads the AI market in “almost all vertical industries” such as smart city, smartphone, mobile Internet, online entertainment, automobile, finance and retail. “SenseTime has independently developed a deep learning platform, supercomputing centers, and a range of AI technologies such as face recognition, image recognition, object recognition, text recognition, medical image analysis, video analysis, autonomous driving and remote sensing,” it says.
According to a recent Bloomberg report, SenseTime has been profitable for two years and the company has recorded triple digit revenue growth for the past four years.
The collaboration between G3 Global and SenseTime aptly serves what both companies need. By setting up an AI park in Malaysia, SenseTime will be able to expand its global presence further while G3 Global gets to go big into the booming AI scene. Overall, the AI hub in Malaysia is a nice sounding plan. But how real will it be and how extensive will it be? Speaking with StarBizWeek over the telephone, Wan Khalik says that the move into AI has been a natural progression of the company. “With IoT as our core business, the only logical next move was to get into the field of AI. We had been in search for a good partner to fast-track out entry into AI, which has a high entry barrier. “That’s how we got to do a deal with Sensetime, which took much effort on our part, considering how successful Sensetime already is,” he says. Perfect partnerWan Khalik adds that SenseTime is the perfect partner, considering that they are one of the biggest AI companies in the world and have their own AI algorithm as well as products and services.
“Their products are already deployed in the commercial world,” he points out.
While acknowledging that AI is still nascent in its growth in Malaysia and still suffers from a lack of understanding and appreciation, Wan Khalik points out two important aspects that the deal with Sensetime will bring about. “First is that the lab will become an education tool to showcase what AI is all about and the benefits it brings. Second is the fact that we intend to address the issue of developing talent in Malaysia in the AI space.” In the press release announcing the strategic partnership between G3 and SenseTime, it was revealed that SenseTime will be assisting in the development and deployment of training syllabus for universities in Malaysia. Wan Khalik says that SenseTime has designed and developed part of the AI syllabus that is currently being taught in schools across China. “The good news is that the Malaysian government has expressed strong interest in AI and it wants industry to get involved in AI. But we need to invest in buidling up the talent in this field,” he adds. The little-known G3 Global’s journey is an impressive one. Its diversification into the information technology scene began less than four years ago after G3 Global (formerly known as Yen Global Bhd) acquired IoT solution provider Atilze Digital Sdn Bhd in December 2015. Green Packet Bhd, a mobile broadband and networking solutions provider, emerged as a major shareholder in G3 Global after it acquired a 22% stake in August 2016.
A year later, Green Packet boosted its equity interest in G3 Global to 32%.
The G3 Global stock’s trend has been rather flattish since mid-2017. However, since the start of April this year, shares of G3 Global surged by 106% to its record-breaking high of RM1.62. On April 25, the company hit limit-up and was issued with an unusual market activity query from Bursa Malaysia, in relation to the rapid advances in its share price. While the reasons behind the sharp increase in G3 Global’s share price were unclear, it seems to have some correlation with G3 Global’s partnership with SenseTime. G3 Global also saw the entry of Wan Khalik as shareholder, after he assumed control of private vehicle Global Man Capital Sdn Bhd, which currently has the largest stake in G3. Global Man Capital increased its holdings of G3 Global to a 32.04% stake following an acquisition of 32.15 million shares in April, edging out Green Packet’s 32% stake. On April 5, G3 Global appointed Wan Khalik as its new executive chairman. Wan Khalik, who is also a substantial shareholder in DWL Resources Bhd, has some notable Sarawak connections, having been the principal private secretary to the Sarawak State government between 2013 until July 2018. Wan Khalik’s background also includes experiences in corporate planning, public administration, IT strategic planning, and business development. When asked on why did he pick DWL and G3 Global as companies to invest into, he says, “For DWL we see opportunities in project management of jobs of major infrastructure projects that the country is embarking on. That is why we have teamed up with the likes of Gadang to prepare to jointly bid for such jobs. As for G3 Global, it is even more interesting because of the future of AI. As you probably already know, AI is the world’s next great technological revolution. It is changing the way information is gathered, stored and used. We will not be able to do without it, whether as individuals, organisations, companies and governments. We believe our deal with Sensetime puts G3 Global on solid footing to bring AI to Malaysia and the Asian market.” G3 Global recorded a net loss of RM17.15mil in the financial year of 2018 ended Dec 31, against a turnover of RM29.4mil. Both of its apparel and ICT business segments were in the red for the 12-month period. “The ICT business continues to show growth potential despite incurring losses due to business development costs and we hope to see better contribution to sales from this division in the new financial year. “The setting up of various new subsidiaries will drive the growth in the ICT business including the provision of IoT solutions and services like connected commercial vehicles and sensor hubs, and AI smart cameras. The group will be well positioned to take advantage of improving prospects of the ICT industry for the current financial year,” G3 Global said in a filing.
Moving forward, with the AI venture with SenseTime, the company is clearly on a new trajectory, especially considering the way AI is going to flood all our lives.
According to a recent study by Microsoft and IDC Asia Pacific, only 26% of organisations in Malaysia have embarked on their AI journeys, although about 70% of the business leaders polled agreed that AI is instrumental for their organisations’ competitiveness. The immense untapped potential in the domestic AI market offers promising opportunities for local AI companies, including G3 Global. With a strong backing from SenseTime, G3 Global could rise to become a leading AI solutions provider in the region. More Malaysian businesses are deciding to use English as the official language at the office. Businesses should be fluent in English in order to compete globally and increase opportunities across new and existing markets. These are 7 ways Malaysian businesses have been upgraded by using English as their language of communication, bringing benefits to their employee, the organization itself and even the customer. 1. Efficient Internal Communication Our Malaysian offices are linguistic melting pots and multiple languages are used on a daily basis due to our unique mix of culture. Forward-thinking businesses have opted to get all their employees to speak a shared language, ensuring minimal miscommunication and maximum accuracy when providing and receiving instructions. Organizations that use English as the official language experience greater productivity and enhanced teamwork across the floor. No employee is left out, confused or misunderstood due to cross-language communication. 2. Outstanding External Communication Communication with suppliers, manufacturers and stakeholders are crucial to the running processes of any business. Being able to deliver strategic ideas and messaging accurately is equally as important as an actual product being sold. Brands that adopt the use of English experience improvements in delivery and execution of communication between employees and strategic partners. Equipping employees with the necessary skills to communicate efficiently and professionally saves businesses hours of wasted time caused by miscommunication. 3. Improved Business Communication Skills Equipping your employees of all levels with good business English communication skills translates to improvement in areas such as presentation skills, customer service, sales pitches and public relations. A good grasp of the English language empowers employees with confidence when communicating with customers. It also helps them tremendously when they’re required to deliver ideas or presentations during meetings. Organizations that opt to use English report an increase in economic opportunities in the market as employees at all levels are equipped with the skills to communicate effectively with new and potential customers across the globe. 4. Improved Customer Understanding & Handling Organizations that priorities the use of English at the office experience improved understanding and handling of customers, on a multitude of platforms such as emails, calls and social media. These organizations report improvements in areas such as problem solving, critical thinking, customer service and even the speed at which issues are resolved. Employees are better equipped to understand the issue faced by the customer, and are therefore able to handle and resolve situations efficiently and professionally. 5. Improved Customer Experience Prioritising English doesn’t only improve the learning and development of your employees, its effects travel down to the end user. Customers have a better experience when interacting with your organization when all levels of your staff are able to resolve issues that arise, efficiently and professionally. Brands speaking fluent English are able to provide customized support to customers and resolve their issues efficiently. Employees are better able to understand the problem and remove the pain points affecting the customer quickly. Customers in turn experience quick solutions and provide positive feedback which is then used to further improve the organization. 6. Positive Brand Perception
While distinguishing your brand in the market is a challenging feat, having positive brand perception is key when it comes to standing out. Brand effectiveness and reputation are strongly reliant on interactions with customers. Brands that champion English know that the first point of contact between the public and an organisation, more often than not, tends to be with its employees. The value of the organisation significantly increases when its employees are able to communicate and engage effectively with the customer. 7. Higher Employee Engagement & Motivation Employees are more engaged and motivated when they are able to communicate confidently and efficiently. When your office speaks one shared language across the floor that everyone understand, no employee ends up feeling left out or excluded due to language barriers. Brands that choose English as the official language for their business report an increase in engagement, morale and productivity at the office. Messages, conversations, instructions and even jokes are easily shared and understood across all levels of employees.
It seems that hackers are deploying increasingly sophisticated malware to target cryptocurrency users. In the last couple of days, both Ledger users and big Asian companies have been targeted in separate attacks.
If any of our users own a Ledger, please be aware of the following phishing scam currently happening. Ledger Live AttackLedger announced a few days ago that they had detected a phishing attack on their Ledger Live desktop application.
This type of malware is called a phishing attack and is very common in hacking attacks on e-commerce companies and users, bagging millions, if not billions, of dollars, each year.
Ledger Live Malware – how does it work?
With details emerging, it appears that the following modus operandi is used: Step 1: Users’ computer security is compromised (it’s unknown how at present.) Step 2: Malware is implemented that replaces the official Ledger Live desktop app with a tampered-with and malicious version. Step 3: The compromised app claims that the user’s Ledger needs to be restored and therefore the user should provide the desktop app with their 24-word seed. Step 4: When a user complies and enters their unique seed, they give the hacker access to steal their whole investment within minutes.
Ledger Malware affects only desktop users
Ledger has been very proactive in handling this security issue, which at present seems to affect only a small number of its Windows desktop users, but it’s still a worrying issue nonetheless. Their Twitter account links to an old article that states that users should only reveal their 24-word phrases in case they want to clone a current hardware wallet or activate a new cold storage device. While the leading hardware wallet company assured their users that the phishing software did not originate from Ledger, nor did it affect the app’s intrinsic security or functionality, the problem remains that this malware can easily dupe inexperienced and even knowledgeable users into revealing their private data as it looks so authentic. And this problem won’t go away soon either. As long as a computer connects to the internet, it will always be susceptible to hackers who will exploit vulnerabilities and user ignorance to implement malicious software such as phishing scams and keyboard loggers.
New NSA-created Malware targeting companies
Yes, that’s right. The reason why many of these phishing malware are so sophisticated, is because they’re utilizing hacking tools that were developed by governmental security bodies such as the US’ National Security Agency (NSA). Only 2 days ago, Symantec released a report which claimed that a new malicious program called “Beapy” sends out infected Excel spreadsheets to users. Once company employees open them, the virus then spreads through a company’s whole computer network, using the dreaded “Double Pulsar” malware which was developed by the NSA, stolen and re-released as a virus, most notably during the infamous WannaCry ransomware attacks of 2017, where users were unable to unlock their machines without paying money to the hackers. Is a mobile app safer than a desktop app?In general, yes. There a number of reasons for a mobile environment is relatively much safer and more controllable. Here are a few:
How does CoolWallet keep users safe from phishing attacks?
Drawing on the knowledge base of our EVM-certified fintech parent company SmartDisplayer , CoolBitX are online banking security experts. Online security weaknesses and inconvenience some of the biggest reasons we why gave desktop computers a wide berth when we first developed the CoolWallet S. We therefore decided to build our hardware wallet to work exclusively with a smartphone, and to limit the risk of phishing attacks. Or maybe it was just because guys like John McAfee pioneered the first internet security solutions (much as we love colorful personalities like you John!) Our CoolBitX app for the CoolWallet S is only available on the official iOS and Android stores. By only using the official stores to download and install our trusted app, users can ensure their safety. Please, don’t ever use unauthorized sources to download a version of our “app”. While your funds will remain safe as our Secure Element will reject and not sign any fraudulent transactions, malicious parties could trick you into revealing your 12-24 phrase recovery seed. Please note, CoolWallet and CoolBitX will NEVER ask you for your seed recovery phrase. Are you sick and tired of your dead-end job? If you are, then you’re in luck. Today, my good friend and serial entrepreneur, Fred Lam has released a free video training. It shows you exactly how he’s helped his students..go from ZERO to owning 6-figure and 7-figure online businesses! Go here to watch this free video training now! Inside this free video training, you’ll discover the 5-step system that Fred used to turn himself from washing disgusting dishes to owning several multi-million-dollar businesses. Even his students who followed the exact blueprint he lays out inside this video training... ...have gone on to generate over $30 million online! This is unheard of. It’s a complete business in a box that almost anyone can replicate to potentially build a 6-figure online business. You need to go here to watch the training to learn how! Here’s the best part...
You DO NOT need to have any experience, prior knowledge or even a hefty investment to get started. All you need is $100 and to follow Fred’s training. That’s it. Then you can start generating your first sale even if you’ve never sold a thing in your life before! Go here to watch the training now! While you are there, you will see an insane offer by Fred who’s practically giving away a copy of his brand-new audiobook... Inside this audiobook, it shows the EXACT steps to follow to potentially build a 6-figure online business... ...even if you’ve never made a penny online before now! I seriously encourage you to grab a copy. If you like the free training today you’ll love the audiobook! See you there, Corwin
Scalability, innovation and disruption come at a high cost.
Startups are born to scale. They’re created to search for and validate a scalable business model in a way that can have a major impact on the market or how a problem has traditionally been solved. The innovation, disruption and scalability aspects of a startup are why they are different from small businesses and more importantly, why they can’t be treated or built as a small business or subversion of a large company.
Small businesses are created to generate profits and secure local market share. Although small businesses also have the potential to grow into large companies, the driving force behind their growth is national and international expansion through larger teams, supply, manufacturing and distribution channels. When WhatsApp was acquired for more than $19 billion, it only had 55 employees. Instagram, YouTube, Viber, Skype and Tumblr had 13, 65, 50, 911 and 178 employees, respectively. Technology is an enabler, and the reason startups can scale so quickly with a repeatable business model and a tiny user to employee ratio unlike small businesses.
For example, certified public accountants run a small business, and the core of their service is provided by them or their team. Although technology helps them do their job or save time on repetitive tasks, they cannot serve a client without investing time to review and complete their tax returns.
On the other hand, startups like TurboTax have created a scalable platform that enabled them to serve hundreds of thousands of people without needing the same number of service providers. A scalable business model powered by technology enabled this startup to grow exponentially at a pace a small or medium sized business cannot match without investing a lot of resources. Scalability, innovation and disruption come at a high cost. While around 50 percent of small businesses fail in the first four years, 90 percent of startups don’t make it and for those that do, several encounter near-death experiences along the way according to a Startup Genome study. Thankfully, several startup and product development methodologies have been introduced to provide entrepreneurs with frameworks to alleviate risk of failure and boost startup success predictability while minimizing costs, whether it’s time or money. Many of those practices can also be applied to start and grow small businesses. Here are two ways a startup development mindset can help you start small businesses on stronger foundations.
Leverage existing resources.
As opposed to small businesses, which typically execute on proven models, startups are created to search for a repeatable and scalable business model. As such -- and following the dot com crisis that resulted in massive failures due to startups investing hundreds of millions of dollars under the assumption that their business models are validated -- several principles were introduced to help startups alleviate risk, validate ideas quickly and build in response to demand instead of based on inaccurate projections. The lean and agile development methodologies entail implementing an iterative process that starts by validating customer needs and expectations qualitatively through interviews followed by small and quick product version launches to test quantitatively and continuously instead of investing significant amounts of time and money building an advanced product, risking that no one need it or want to use it the way it was originally hypothesized. In our example above, an entrepreneur is better off testing if people are willing to trust a software to do their taxes. Creating a simple landing page where users are prompted to submit their tax information, thinking that their returns will be processed automatically when in reality, the founder is manually running the numbers in the backend and then sending a clean report, is an example of an MVP that can be executed quickly and inexpensively while providing valuable information about user needs and expectations.
How is this relevant or applicable to small businesses? Most small business owners fail to start due to lack of cash. Execution is often delayed until the envisioned business is created to perfection whether it is a restaurant, car wash, a logistics company or hair salon. Adopting a lean approach to starting small businesses entails leaving the biggest expenses for last, using existing resources and focusing on getting the job done. In the case of a restaurant, it could be using your own kitchen and vehicle to deliver. Start a car wash business on demand before buying all of the expensive equipment and leasing a commercial space. Follow the same approach to start a hair salon or a logistics company, one truck at a time.
Aspiring entrepreneurs understand the fact that they may have to start from zero. Real entrepreneurs start below zero. Sell first, build next. It is often believed that a product must be good or unique enough for a business to exist. The truth is, what entrepreneurs poor blood, sweat and tears in to build to perfection today, is often mediocre when evaluated a few months later. The idea of building a perfect version of the product or service before offering it for purchase is flawed. By combining the lean principles shared above with presales, founders can significantly minimize business risk since they will build in response to demand, with higher certainty. While the product may later fail to meet buyer expectations, its value can be validated quickly with financial commitments.
Researchers and consultants Homayoun Hatami, Candace Lun Plotkin and Saurabh Mishra found that companies that presell their products achieve above average customer acquisition and retention rates of 40-50 percent and 80-90 percent, respectively.
No matter the product, several marketing campaigns can help you execute a presale strategy. However, since you are selling a promise, prospects will be investing in you, therefore, personally meeting your ideal buyers, showing your passion and seriousness in addition to samples or a prototype is how you will be most effective in preselling your idea. Paul Graham, investor and co-founder of Y-Combinator once said, “it’s better to have 100 people that love you than a million people that just sort of like you.” Find your 100 big fans even if it takes meeting them one person at a time. Those fans will help you build a better version of your product, provide you with testimonials and 10X your reach as they invite others to buy from you. Business funding has long been considered the only fuel of business initiation and growth. Not anymore. Nowadays, serious entrepreneurs can start small businesses and startups by focusing on getting their customers’ job done or problems solved by leveraging existing resources, preselling the idea and delivering value through non-scalable approaches.
If two businesses are pretty much the same, why would anybody work for or buy from the one run by a jerk?
The success of a business is due in large part to the personalities of the people who run it. You can have the most amazing, innovative ideas, but if you have a toxic personality that repels even your most loyal customers and most diligent employees, you may be singlehandedly costing your business time and money. As a manager or leader in your business, it’s important to recognize that you wield influence over your company, which can either help make or break your business. Much of that impact comes from how you communicate and interact with others. Are you projecting the qualities that make others want to work to build your company… or work at finding another job?
Take a hard look at your qualities and personality traits. Are you doing more harm than good? If you find you’re harboring any of the following 11 toxic personality traits, it’s time to make some serious changes.
1. Low emotional intelligence. In a nutshell, having low emotional intelligence, or EQ, is toxic for business as it affects everyone you come in contact with. EQ is often just as important as your actual IQ (or raw intelligence). EQ helps you understand others and recognize what motivates them. A strong EQ is the foundation for working cooperatively with a group and creating a sense of cohesion at work. Low EQ leads to poor communication skills. It damages your credibility and makes others feel less confident in you. When you’re emotionally intelligent, you’re aware of your emotions, as well as the feelings and needs of those around you. Having a high EQ helps you manage social situations and relationships, and enables you to regulate your emotions accordingly.
2. Chronic sarcasm.
A little bit of sarcasm can come across as funny at times, but if you live to spout sarcastic comments, you may be unwittingly creating a toxic environment. This is especially true if you focus your snark on belittling others or enjoy giving backhanded comments to subordinates. If you think your constant sarcastic comments are scoring points or making you look smart, think again. Sarcasm makes you seem bitter, angry and arrogant. Try being nice. Treat everyone with a level of decorum and respect. Resist the urge to chide others or throw verbal zingers to get a laugh at someone else’s expense. 3. Inflexibility. The ability to think on your feet and be open to suggestions and ideas is crucial to being able to adapt to unexpected changes in any business. When you’re too rigid in your thinking and decision-making, you can inadvertently limit your options or be unable to make quick adjustments as needed -- and this will adversely affect your business. Yes, planning and scheduling are a necessary part of any business, but you also need to weigh the importance of following through with a particular strategy or method versus what you may gain (or lose) by sticking to your guns. Any successful company will sometimes need to exercise flexibility and find creative solutions in unexpected situations. Work to be part of the solution, not the problem.
4. Not following through.
Failed promises and flaky leadership diminish your credibility with those you work with. If you want to preserve your influence and earn the respect of others, you’re going to need to learn to follow through and follow up. That means being dependable, hearing others out and acting with integrity. If you say you’re going to do something, do it. And just as important, work to build trust and mutual respect with colleagues, employees, clients and customers. Support those around you, be there for them, and you will earn yourself and your business a loyal following. 5. Impatience. The success or failure of a business is often based on timing -- knowing when to leap and when to stand back, analyze and consider your options. But making these decisions requires an ability to step back and have the patience to contemplate the bigger picture. Business is a balancing act of aggressiveness and reservation. Impatience can lead to hasty decisions that lock you into a bad arrangement. Being determined and eager is a good thing; being rash and making snap decisions is not. 6. Being a control freak. We usually assume that the most successful people in business are those who have all their ducks in a row -- they have a meticulous plan and know exactly where each decimal goes. But if everything is perfectly lined up, you’re only allowing yourself to see as far as the end of that list. Anything beyond those computations or conclusions is also beyond you and your control, and this can leave you flailing. Being a control freak hampers your ability to make quick decisions. You can easily become overwhelmed by your sense of perfectionism and grow frustrated when things don’t go as planned. What if, instead of trying to control everything, you embraced the unpredictable? Give it a try and see how liberating it is to let go.
7. Lacking empathy.
It’s easy to feel cynical sometimes, but those who fundamentally lack empathy or fail to show compassion will find their toxic attitude is corrupting their company. Cynicism makes you look defensive and angry. Empathy helps others feel connected and understood. We’re naturally drawn to those who are supportive and seem relatable. By showing we care and understand what others are going through, we create a supportive atmosphere that draws people in. Empathy and caring make others feel valued, and that makes customers more inclined to stay loyal and employees more inclined to work hard. So, when you feel cynicism creeping in, remember that showing your human side and letting people know you care can also be profitable. 8. Being closed-minded. Closed-minded people tend to want to point fingers at others rather than accept responsibility when things go wrong. They believe they have the answers to everything, so they have a hard time listening to what others have to say. No matter how certain you are, make sure you hear others out. Even if your way ends up being the best, you’ll be a better leader and your business will grow if you’re open to hearing other perspectives and suggestions. Seek to be radically open-minded. It may be hard on your ego, but it will shift your whole business perspective. Don’t allow an obstinate or narrow-minded attitude keep you from hearing out-of-the-box ideas and making good decisions. 9. Constant complaining. Nobody likes a pessimist. If you’re constantly complaining, you’re not only bringing everyone else down, you’re being unproductive and making everyone else more unproductive to boot. Plus, you come across as a high-maintenance whiner. If you spend all your energy grumbling and lamenting, you’re reinforcing a negative mindset in yourself and driving everyone else away. Pay attention to how often you say negative things. If you can’t get through a conversation without complaining, you have a problem.
10. Managing with fear.
Are you a “my way or the highway” type of manager? This mindset is absolutely toxic to businesses. Many leaders use fear-based measures to control others without being aware of what they’re doing. These are the managers who wield a big stick and keep everyone on edge. They use tacit threats and scare tactics to get others to do what they want. Managing with fear creates a culture based on suspicion and angst, in which no one wants to admit to a mistake, voice disagreement or offer new ideas, all for fear of being rejected or beaten down. Successful companies strive to create a healthy, happy, creative atmosphere where good work can be done and a strong business can be built. 11. Narcissism. Narcissists are noxious to a business because their enlarged ego keeps them from listening to anyone who contradicts them. They really don’t want to hear what you have to say if you’re not in line with their thinking. Oh, and they’re also completely self-focused. If that’s you, then this is your wake-up call. Your self-centered ways are not only denying others an opportunity to share possibly inspiring ideas; you’re also hurting your organization and frustrating everyone you work with. Try to think about others every now and then. Your career and your business will thank you.
Most of the world’s largest companies experimenting with blockchain are apparently doing so on Ethereum. Amongst the notable names are Fidelity, Google, and HTC.
Blockchain spending has been increasing dramatically over the last few years and it looks like the number two crypto by market capitalisation is leading the way in terms of corporate adoption.
Much of Ethereum’s Fabled EEA Still Interested in the Platform
For many Ether investors, enterprise adoption is all important. In 2017, Enterprise Ethereum Allianceannouncements were often accompanied by massive price surges for the number two crypto by market capitalisation. Names likes Deloitte, National Bank of Canada, Samsung SDS, and Toyota and many more were gradually added to the list. Meanwhile, investors waited for one of these massive companies to develop a killer application for the blockchain that requires the use of vast quantities of Ether, thus sending the price rocketing. Things have not exactly turned out as many had expected. The Enterprise Ethereum Alliance (EEA) has not been in the news much of late and there is no corporate use case of the blockchain that has sent the price parabolic again. However, development is clearly still going on.
Forbes has just released a list of billion dollar companies experimenting with blockchain technology. The “Top 50 Billion-Dollar Companies Exploring Blockchain” is the first part of two similar articles. It will eventually create a full top 100.
The list shows that most of the world’s largest companies that are interested in distributed ledger technology are currently looking at public Ethereum or private Ethereum-derived ledgers to build applications on. Most companies featured are exploring numerous blockchains, however. Of those that prefer other blockchains, Hyperledger, IBM Blockchain, and Bitcoin all seem popular amongst the corporate giants exploring the tech. In an article detailing the new Forbes list, ConsenSys stated that 24 of the 50 billion-dollar companies are currently investigating the Ethereum public blockchain, with a further 12 using Enterprise Ethereum-derived platforms in instead. The ConsenSys piece goes on to opine: “It’s likely that the large developer community, existing standards developed by the EEA, and public compatibility are driving some of Enterprise Ethereum’s reported dominance.”
What Are The Biggest of The Big Working on?Below are some of the more notable companies on the list and the specific blockchains they’re currently exploring:
Blockchain Spending Growing Dramatically
According to International Data Corp, spending on blockchain technology solutions increased by 89 percent compared to the previous year. It is projected to reach $2.9 billion this year and $12.4 billion by 2022. Meanwhile, Deloitte surveyed executives from a range of companies. The results found that 95 percent of those asked were already invested or planned to at some point this year. You’ve probably heard all the buzz about the One Funnel Away Challenge by now… (...you know, the crazy, intense challenge where you have 30 days to build and launch your online funnel, while having Russell Brunson, Julie Stoian, and Stephen Larsen as your coaches?) Word is spreading about how awesome this Challenge is, and thousands of entrepreneurs have been a waiting list for it to open back up, so they can join the next one. Well, after months of waiting, it’s finally back! (And YES - I’m joining!) You can check out the One Funnel Away Challenge details, and join the Challenge here → START CHALLENGE The Challenge officially kicks off January 7th, but you can join right now! Crazy part is, for a huge 30 day Challenge with 3 top-notch marketing trainers, it’s just $100 for the WHOLE Challenge! Sooooo, it’s pretty much a no-brainer deal…
If you’re the type of person who wants an online business, but you struggle to get it off the ground… Or you hate the business you’ve built... Or you struggle with the actual implementation part… Then this Challenge FORCES you to bite the bullet and get your first (or next) funnel built. They go through everything in detail, so even if you’re a newbie and have never built a funnel before, this would be an appropriate Challenge for you to do... I’ve already signed up for it…and I hope that you’ll come join me, and we can go through it together! You can check out the details of the Challenge here Have you ever felt like the cards are just stacked against you when it comes to starting (or growing) your online business? Julie Stoian knows a little something about that... I just watched the most amazing and inspiring presentation from Julie, where she shared her “freelancer’s roadmap” that took her from stay-at-home mom to earning over six-figures. If you’re a funnel hacker, I’m sure you probably already know a little bit about her... She’s literally had so many obstacles thrown her way in life… Divorce. Pregnancy. No job. No insurance. No cushion or savings that she could turn to. So I always wondered how someone like Julie, who was dealt a crapstorm of obstacles as a single mom, turned things around and built a wildly successful business as a freelancer (and then an agency owner)… So if you’re trying to get your online business off the ground and running…(especially if you have a service-based business idea) Or, if you want to start your own online business, but you don’t have a product just yet… Or, even if you’re thinking of dipping your toes into the service-based industry to see what this “freelancer” thing is all about, but aren’t bringing in projects or clients quite yet… You NEED to watch and listen to Julie’s very important message for you… (it’s totally free to watch)
She walks you through the “freelancer’s roadmap” that took her from stay-at-home mom to six-figure freelancer in just a few years. Here’s the link to where I found her free presentation -> LINK |
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