How to increase the efficiency of the Start-up machine?

04/08/2016 - 10:52

Productivity, efficiency and effectiveness are different concepts, but are related to each other. However distinction between these concepts is not the goal of this article. Except for a few examples, the rest we will use the word "efficient" for the post.

According to the report by the International Labour Organization (ILO) and Vietnam Productivity Institute, the labor productivity of Vietnam only by 1/15 of Singapore, 1/11 of Japan, 1/10 of Korea, 1/5 of Malaysia. And with the growth of this labor productivity is until the last ... 50 years after Vietnam can catch up to Thailand.

We are at the "bottom of the valley."

If this situation does not change in next Start-up generation of Vietnam, then when?

So, what is the key for the Efficiency door?

The world always need you to focus.

Come on, if you have not remember this then repeat 3 times.

The world always need you to focus.

The world always need you to focus.

The world always need you to focus.

The focus will also need to ... focus. Need to put your focus on three aspects: Strategy - Market, Investment - Energy, and Process - operation.


1. Strategy – Market

This means that businesses need to segments (Market Segmentation) is clearly, focused on the target customer segment particular. The saying "My business sells to everyone" when the Start-up means "My business is not sold to anybody" (unless you are Vingroup), or thinking of doing business in a way, "Who’s need then I sell" or is hiding vocational not want to disclose their target customers segments, or doing wrong, ... haphazardly hit, that business methods will do not take you to the way of sustainable development.

When particular market, particular customers, their products / services will very particula, and their strategy is also very particular.

One of the frequently "temptations" of Start-up Business is trying to serve many clients assigned with many different needs. Therefore they can not effectively allocate their meager resources to meet the needs of all customers. That's the Battle of Waterloo when stretch the power in various battle lines, mean the surely failure of Napoleon.

Startup -  as small as possible to focus!

2. Investment - Energy

Maybe you've heard about "core competence", or "core competitive advantage" of the business.

The resources that do not create your core competence then does not need to invest, but Start-up should be outsourced (Outsource), rather than self-built, self-raising and waste of money, deplete capital .

For example, a technology enterprise contact with customer via the Internet no need to search the offices of 100 m2 located in District 1, Building A type when startups. Ask why, it is "naive" replied: let’s dread. Maybe Outsource "office" by renting virtual office for example.

A commercial enterprises - trading simply, initially not need a accounting department, which might Outsource external accountant.

A service business, initially no need a IT department that occasionally only to reinstall Win for the boss, which can Outsource IT segment for a partner.

A business as e-commerce, business model is Online Sales, initially with little capital away from the equity capital to go up, it is not necessary to solve the delivery problem by themselves, should choose and Outsource for some partners (not only one partner) delivery to their customers (will be mistakes happen, but muss to understand that with an acceptable rate, it is still OK, rather than build by your self without business, ultimately it’s not working, but no mind to develop Customer volume, finally bring trouble and losing money). Enterprises should focus on the development of the number of customers, focus on sales, customer service, user experience.

Startup - as small as outsourced!

3. Process - Operation

In process of Startup, the activities is divided into two types: creation added value activities and do not create added value activities.

Example: sales activities, promote the brand is create added value activities,  and active transport of components in a production line, waiting their turn, to be assembled into finished products, is itself waiting or shipping it does not create added value. Therefore good production management is when you cut to the minimum downtime, travel time too long between processes. At some point, the whole system is called Optimal (Optimization)

Example: Sales executive have activities to create value for customers as build relationships with customers, introduction / presentation of products / services and customer feedback receive. The activities does not create value for customers as internal reports, making quotation to simplistic.

Enterprises - as small as  simple and streamlined the process activities!

The focus will help you to develop your full potential and make wide open the Effect door

The sun heat to 5,700°C which distributed "resources", radiating sunshine out on the earth is not harmful to anyone instantly, just makes us black skin or... skin cancer if prolonged exposure to light sun in the damaged ozone layer. Laser rays have a much lower temperature but focused, converging into a single point, making a laser gun capable of high destructive.

That's the power of focus.

The world needs you to focus.

Your customers need you to focus.

Your employees need you to focus.


Contact us for more information about "Startup Business" services package of Pente here.

(TMT -