Why did you consider going into business?
I had a friend who encouraged me into it. He told me that the comics industry has a future here in Singapore and I decided to give it a try. This how we started with our first outlet in Bukit Timah Plaza. The rest, as they say, is history.

How did you start out - by selling to family and friends?
In my teens, I was working with my brother selling cameras and radios. After the British withdrawal, we gave up the business, and I started a trading business, sending goods to Indonesia.

When you started Comics Connection, what were your family's views?
My three children were young and my wife was a housewife. She trusted me to make decisions and gave me her support.

Tell me about the first few customers and the first few years of business?
When we were in Bukit Timah Plaza, the first customers are the students from Ngee Ann Polytechnic and a secondary school located opposite the mall. Not many people went to the shopping center when we first started. For the first year, our customers kept coming back, and business got a little better every month. We opened our second outlet in Junction 8, and business there was a little better because it was located next to the MRT station and bus interchange. Junction 8 was the second heartland mall built for the retail market. I think the first was Northpoint. During that time, this was a new concept of shopping centres. You got food courts, cinemas and shops all under one roof. Since it was a new concept, many people patronized the mall, and we jumped on the bandwagon.

You have 18 branches around Singapore and what are the criteria for the selection of location of your outlets?
Our first choice would be a location near an MRT station, bus interchange and at large catchment areas. Some locations are situated near the MRT station and bus interchange, but it does not cover a wide geographic area. Those are our second choices. Then we have areas without a bus interchange or an MRT station nearby. These are our last choice. Hence the location of an outlet is not necessarily an ideal place. Our strategy is to have 20 outlets, preferably at high traffic MRT stations and bus interchanges, but there aren't many of them around. We are looking into the Bedok area - however the rental rates are rather high. The other is Ang Mo Kio, which we are currently negotiating with some shop owners. We hope to be represented in these areas by the next year.

Do you have any working partners?
No, I afraid not.

So, who are your competitors?
I would say there are two categories - the large retailers and the heartland shops. Ironically, we seem to cater to a somewhat different clientele. The large retailers such as Kinokuniya are located in Orchard area, and heartland shops handle mostly rental business. Our heartland locations plus our sufficient stocks ensure our clientele do not have to go far nor miss out on any issues.

Have you thought of going into business with any of your competitors?
We have been approached by others before, but I feel we are doing well enough now should continued to expand accordingly.

When did the expansion of Comics connection start and did you face any difficulties?
When I first started out in1992, the business was named Comics Paradise. 5 years later, we had a total of 5 outlets. We decided we were ready to expand, incorporate into a private limited company and renamed it Comics Connection. And within the next 5 years, we opened 12 more outlets. In the next 3 to 5 years I hope to open up to 30 outlets, with 20 large-scale and 10 smaller scale ones. The smaller outlets will carry products with a shelf life of 4 to 6 weeks to ensure the latest releases are available. I am also planning to go into publishing, obtain copyrights to print books. With the advent of publishing, we will be able to better provide for our customers. At this point in time, there have been no major difficulties in our expansion plans.

Tell me some stories that give me an idea of the hardships in starting a business from scratch.
In all business, raising capital is the most daunting task. I was rather fortunate - I had some savings and had made some money previously. I started this business at the age of 47, so this is not my first business. In this instance, it was not difficult because my initial capital was about $20,000. Renovation costs were kept to the minimum - we bought shelves from IKEA and a friend helped us put them up. We spent the rest of the money on the rental deposit and purchasing our products. Even then, we were not sure if the business would succeed.

When you first start up, you need to buy your goods, so you have to spend a certain sum on it - but your stocks build up gradually. With a steady cash turnover, you can add more products and increase you product range. Back then, you would probably need about $30,000 to start up, but now, you would probably need at least $120,000. It is very different now because renovations would set you back by #30,000 to $40,000, and you have to cough up a 3-month deposit for the rental and 1-month deposit for utilities. With a need for storage space, a shop would need to be bigger, say 550 to 600 square feet. We currently have an extensive range of comics, games and trading cards. We are bringing in limited editions of trading cards such as Harry Potter, and our customers do not only buy the latest releases. With games, a larger amount of capital is required to provide our customers with the widest range possible. Customers start off by browsing, and a smaller shop with a less extensive range would not fare as well. We also bring in our products by air on a weekly basis to ensure that our customers get the latest releases as soon as possible, which admittedly translate to slightly higher prices - but most customers are willing to pay just a little more just to be the first to get the comics.

Beside capital, are there any other obstacles you need to overcome to succeed?
Of course, you need to study the market and shop location. For malls in the heartland, there is definitely human traffic - whether this translates to customers is another questions.

Competitive prices and range of products are also important - price your products too high, and you lose customers. An extensive range attracts more browsers, who may then discover something that they like and ultimately turn into customers.

Another important factor is good suppliers - one of our local suppliers is Chuang Yi, which has been our loyal supporter. As we have quite a few outlets, we are able to purchase larger quantities, which means we stand to enjoy bigger discounts. Chuang Yi is also able to provide us with reprints of books that run out of stock due to our high turnover - comics like 'Slam Dunk' run for 34 issues, and at most shops some issues are out of stock. We seldom encounter such a problem as we have a warehouse to store additional copies, hence stocks at our shops are easily replenished.

Isn't that high inventory turnover?
Yes - which means we have to be careful what we order. Given our extensive range of products, this means we have a large database - and I am proud to say that we have a good team working consistently to monitor our stock levels.

Tell me about some of the best moments in this business.
I feel that comics sales is a 9-month business - most of our clientele are students and a small percentage of young working adults with less spending power. Students rely on pocket money to purchase comics - during school holidays, pocket money is limited and unless they have a part-time job. Weekends reap the highest profits, as these are the normal shopping days. Peak seasons are when a current trend hit the town - for instance, during the tamagochi craze some years ago, and the current Harry Potter fever.

With regular feedback from our customers, we realized setting up shops in heartland malls would be an added convenience to our clientele - instead of traveling from one end of the island to another just to buy a book, they can save time and transport costs.

Are there any significant moments, which affect or influence your life and business?
That was in 1983, when I was in the trading business. Trading in Indonesia was by the word of mouth, for example, how much you own me, I would just jot it down. I would purchase electrical items in Singapore with cash, and sell it in Indonesia on credit terms. My partner died in an accident in Indonesia, and I was unable to collect payment as all his customers claimed they had paid him in full. That was also during the property slump, so I was in financial difficulty.

Have you ever thought of giving up the business? If so, how often and why?
The thought has never crossed my mind. I believe all business have their difficulties - when you have a problem, analyze your situation and solve the problem, never give up. For example, when business is bad, we have to view it from the customer's point of view - it could be the exam period, or school holidays. We accept that this is the downtime and wait it out.

Is your family involved in your business?
At the present, my wife and son are helping out. My daughter is studying and my younger one is currently serving National Service.

Do they give you any advice on how to run the business?
Let's just say that usually I'm the one giving advice.

Will your children be taking over the business when you decide to retire?
My eldest son is currently working with me, so he would probably take over the reins. Then again, it would depend - I believe in having a capable person to take over my business, regardless of familial ties.

In the event of ill health?
I am already 57 years old - I have groomed several senior employees to handle respective areas, and my wife too will continue to assist me. As it is, day-to-day operations are well taken care of, and only major decisions such as opening new outlets or extending our range of products require my attention.

What are your retirement plans financially?
At present, I feel I am comfortable with what I have - there is enough to see me through old age and ill health, and we own 3 properties. Financially, I believe I can retire comfortably.

What values in business would you want like to pass on to your children?
Work hard, work smart, and be passionate about it. Let me give you an example - when I first started this business, I had to stay as late as 3 am in the morning when the new stocks arrived. Back then, there were no barcodes and computers. Stocks had to be checked manually, and sales too had to be tallied manually. I had to learn about the latest trends in comics, what's saleable, what's not. By the time we opened the second shop, I had put in a lot of hard work and done a lot of market research. Most importantly, be honest - always honor a promise, and never promise what you can't honor.

I feel that the younger generation are not as focused. They tend to do too many things at one time, resulting in insufficient attention to certain aspects. Better to concentrate on one business at a time - if it doesn't work out, then try another. Every business has competitors. Never be complacent and do not get distracted. Invest wisely, spend sparingly - too many youngsters are earning money solely for personal gratification such as buying cars, and not investing for their future.

Why does someone decide to be on their own rather than join an existing company?
For some, it's their dream to be rich and successful. You see people around you with designer clothes, flashy cars and beautiful apartments. You want to be a part of the dream, be your own boss. This is easier say than done. It takes a lots of guts to run a business, not just hard work. Quick thinking and risk taking play a big part too. Success is dependent on how you handle a situation.

For others, they are content with what they have and are not risk takers. Take for instance accountants, they make calculations and limit their risks - how many successful businessmen are accountants?

Do you have any role model?
Li Ka Shing. He started with nothing, and now he is a property magnate. As much as I admire him, I would never out myself in the same category. I am content with my achievements and don't think I should compare myself with others.

We are selecting top 38 entrepreneurs for the Spirit of Enterprise - what qualities do you think an inspiring entrepreneur should have?
I think the creator of "Bread Talk" is inspiring - within a short period of time, he has managed to do very well. He is a both creative and strategic person.

If you are chosen as one of the 38 winners will you attend the ceremony to be honored?
It would be my honor.

Would you be comfortable with the media asking you many of the same questions posed?
I doubt it would be a problem.

Do you have any objection to this interview being posted on the Community Web Site or published in the newspaper prior to being chosen?
I believe not.

If part of the Spirit of Enterprise is a scholarship given in your name directed to any school you would like to give it to: any idea now where that would be?
I would give it to the Polytechnics for research on gadgets to make life easier for people.

Do you have a suggestion for someone else we might like to interview - someone you think has an interesting story to tell?
I think the man behind the King Hu aquarium would be a likely candidate. He has achieved international status in a short period of time and should have quite a few stories to tell.

Before I go any other story you would like to tell me?
I think that is about all.

Ok! Thank you, Mr Daniel for your time.

Student Interviewer's Personal Comment