Jerome Tan lost a quarter of a million dollars in previous business ventures, but he bounced back from failure to become an entrepreneurial success.
The true entrepreneur knows that money is not just about money – it is about opportunity. Every cent is a potential investment, every dollar a chance to make another.
Which is why, unlike most Singaporeans, Jerome Tan of Executive Directions Pte Ltd does not want to own a car. In a country where car ownership is a status symbol, it says alot.
“The less you need, the more you have,” he explains. “I don’t need a car. As a result, I have more money to invest in my business and I have more bargaining power.”
The Entrepreneurial Drive
Jerome came from a poor background. His entrepreneurial drive was borne of a desire to be rich. That's how he picked himself up after losing S$250,000 and was declared bankrupt when his earlier business ventures failed.
Central to his ability to bounce back was a willingness to learn from his errors and to take responsibility for failures. “I made a mistake, but the key is to learn from it and do better next time,” he says. “I invested in myself and learnt from successful business people.”
All the lessons Jerome has learnt are now benefiting other entrepreneurs. Executive Directions trains business people to be successful. Does it work? Absolutely – that’s why in 2004 Jerome invested in Extreme Entertainment – the brainchild of one of his graduates.
Structuring The Business
When Jerome wanted to start Executive Directions Pte Ltd, he could not be appointed as a director as he was still an undischarged bankrupt. In 2003, he found a partner in Wendy Kwek and together they started the company. Wendy was appointed the director and he was the 'Manager'. When he was discharged from bankruptcy later that year, he was added as a director in the company.
Although he leaves most of the company’s administration to a corporate secretarial firm, Jerome wisely ensures that checks and balances are in place. He personally signs the cheques and regularly checks the bank balance because he knows that ultimately the buck stops with him.
Jerome also hires employees who can multi-task. “I look for employees who have the skills we need and also previous experience in bookkeeping or company admin,” says Jerome. "They take care of the monthly accounts and CPF contributions."
Professionals And Their Fees
Jerome uses a corporate secretarial firm as he believes in hiring experts. It also allows him to focus on running the business. They incorporated the company and ensures the business has obtained the necessary licences and permits.
“I was pleasantly surprised when I got the bill from our corporate secretarial firm,” he says. “The cost of incorporating Extreme Entertainment, our new venture, was about 25% of the price we paid in 2001 when we incorporated Executive Directions.”
Advice For Entreprenuers
So, what is Jerome’s advice to budding entrepreneurs? “Invest in yourself. Build a good team and add value to your business to succeed. If I can make it, anyone can.”
How Executive Directions Got Started
- Set up a private limited company right from the start.
- Engaged professionals to handle the accounts and apply for licences and permits.
- Hired employees who could also help out in company administration.
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Practical Tips
- Do not give up just because you have failed. Learn from your mistakes and bounce back.
- Keep a close eye on the bottom line. Be personally involved in the finances.
- Even if you have been declared bankrupt, do not let it stop you. Once you are discharged you can take on the post of company director again.
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