Research, good business plan crucial for SMEs to be successful

Nation Broadcasting Corporation (NBC)’s Nation Radio held a forum last week called “Young Idol Smart Idea” at SFX Cinema, Central Plaza Grand Rama 9, to inspire young entrepreneurs who want to be successful.
CEO Agrifood managing director Pita Limjaroenrat, 30, who has been running the Bt1-billion worth business since his father passed away six years ago and left behind a Bt100-million debt, said young entrepreneurs need to quickly pick up information from different sources such as books, the Internet and schools.
“This would allow young blood to be good at bridging the gap between the old and the new,” Pita said.
Peter Thaveepolcharoen, managing director of Daddy Dough (Thailand), said that before starting a business, entrepreneurs must first begin with product research and development so they can find the right market. Also, he said, they should not forget to create a good business plan.
“Even though you are an SME, a SWOT [strengths, weaknesses, opportunities and threats] analysis is crucial. If you are able to make a difference with your products and services and find the limitations or weak point of the big rivals in the same market, it would benefit your company,” Peter explained.
He said this has been part of Daddy Dough’s marketing strategy over the past six years and has generated Bt120 million in revenue from its 30 branches last year.
Likewise, Pattarapon “Paul” Silapajan, partner and executive director of CAPP Group (Thailand), said that sometimes businesses might face the limitation of laws and regulations. For instance, his pharmaceutical company needs to operate according to the Food and Drug Administration’s regulations, particularly in terms of advertising.
Pattarapon, who is also a well-known actor and TV personality, said that with such limitations, entrepreneurs need to think out of the box and find alternative channels, such as events, road shows and the use of online media, to reach target customers.
Additionally, the three young CEOs said every SME should eye the global market from the very start, because in three years, Asean will become a single market.
For instance, Pita said, his company has plans to put rice-bran oil on the global market to compete with olive oil from Italy, rapeseed oil from Canada, soybean oil from the United States and palm oil from Malaysia. The company is also developing health products, supplements, cosmetics and foods based on rice-bran oil.
Pita said his Japanese partners would look after overseas distribution, while seeking new production bases in Southeast Asia to increase production capacity. In the next five years, the company will be listed in the Stock Exchange of Thailand to mobilise funds. Daddy Dough is also seeking business partners outside Thailand, while CAPP (Thailand), which already has distributors in 18 countries, hopes to expand into 30 new markets in the near future.