Companies in Malaysia witness different growth levels from startup till the expansion period. However, the stages may differ according to different industries.
What is the importance of knowing about company growth? It’s simple really. You need different method of funding/financing & issues to be addressed from one period to another.
Here is a brief explaination about it:
- Idea – Prototype: Usually you only have a business idea at this point. It’s that spark where you think of something and you tell yourself that “if such a product can be made, it must be a hit, I can sell it”. During this period you need to draft up business plan (see my previous post on the importance of business plan) and transform your idea into a prototype with features similar to your idea.
(Financing : Pre Seed Financing which means conditional grants or use your own money. You can click on my previous post on pre seed funding)
- Prototype – Product Production: Next you transform your prototype into a product for the market. This involves production and you need expert employees in your company and a good planning + execution.
(Financing : Grants, Debt Financing or Equity Financing in which you get loan from bank or private institutions. It could be micro loan or any financial instruments. You can read more from my previous post on micro loan and SMIDEC Grant)
- Product – Market Expansion: Should you succeed in bringing your product to the market, the next thing is to expand it through product improvement or simply to export it overseas or expand it into new markets. It’s simply growing your business.
(Financing: IPO Listing, this is where you get your company listed in the Bursa Saham or get institutional investors to invest big time on your company)
The main idea is to know which growth you are at and from there, strategize on picking which type of funding is most suitable. It’s very hard to get RM2 million funding from government agencies when you are at the prototype stage except if their fund is for prototype. So be sure to analyze and from there pick which funds are most suitable for you to startup your business.