Pitfalls to Avoid

Case Study:NuSuara Technologies Sdn Bhd

26 May 2011

Marketing myth: New business failure rate

* Headd, B. Redefining Business Success: Distinguishing Between Closure and Failure, 2002# Shane, S. Startup Failure Rates – The Real Numbers, 2008< Phillips & Kirchhoff. Small Business: Critical Perspectives 1989

Pitfalls to Avoid

1) Clear Business Plan

• A business road map• Business objectives• Marketing 4Ps• Analysis of competition• SWOT analysis• Potential problems • Costings / margins• Financials - P&L, cash flow, balance sheet

2) Marketable Products / Services

• Product Strategy

• Product life-cycle• Marketing oriented – new products / refreshing

product presentation / innovative marketing ideas

Innovation Differentiation

Niche Low Cost

3) Entrepreneurship

• Entrepreneur vs businessman• Passionate • 25/8• Resourceful• Great execution • Customer-centric• Knowledgeable

4) Alignment of Objectives

• Common objectives for Investor / Investee:

- Targets- Market- Rollout plans- Exit plans

• Build & sell or build an empire?

5) Poor Financial Management

• Transformation from a small start-up into an organisation

• A neglected aspect for entrepreneurs

6) Contingency Plan

• Fallback plan• Alternatives

7) Learning Curve

8) Transparency

• Relationship between investee / investor• Communications

NuSuara Story

Introduction

• Our business – speech technology and broadband solutions

• Established in 2002 when MAVCAP bought the IPs and foreign team from US angel

• MSC premier company• 2003/2004 – R&D on development and commercialisation

of language packs / speech engine• Products – VR (Virtual Receptionist), IVR (Interactive Voice

Recogniser), OD (Outbound Dialer), TTS (Text-to-Speech), Help Desk, Virtual Contact Centres

Business Development

• First customer in 2003 – TM Net IVR• Prior 2008 mainly focusing on virtual

receptionist (VR)• Profitable in 2008 with MAB Flight Info system• 2009 - ventured into broadband solutions in

the CBC rural Wi-Fi centres • 2011 – village and campus Wi-Fi

Business Transformation

• Change of product strategy from VR to speech and broadband projects

• Strengthening of team with more professionals• Product repricing• Business expansion into broadband solutions

leveraging on experience in software development and system integration

Conclusions

• Bold to adopt changes• Biz models not set in stone• Continuous business realignment

NuSuara Technologies Sdn BhdUnit 29-11, The Boulevard, MidValley City

Lingkaran Syed Putra59200 Kuala Lumpur

Tel: 03 2027 0111 / Website: www.nusuara.com