For starters, can you tell us more about yourself? For eg. your family and educational background.
My name is Eugene. I'll be 30 this May. I started off life pretty small, as a premature baby, born to a family of 4, including an older sister I love to irritate. I spent most of my time, education wise, in several different schools - St. Andrew Primary up to P4, Anglo Chinese School P5 to Sec 3, and from then Year 11 and 12 at Scarsdale High, New York. After that, I went to Boston University for my tertiary education, a four year course in Bachelor of Arts (Computer Science). I then returned to fulfill my National Service commitments. I was posted back to the School of Artillery as an Instructor after graduation from OCS. More schools!
What dreams/ambitions/aspirations did you have when you were young?
When I was younger, actually I didn't know what I wanted to do. I led a pretty
carefree existence. When I started my studies in Scarsdale High, I found that
I had inclinations towards subjects in the science field. My uncle, who was my
guardian while I was in High School, is actually a researcher at Rockefeller and
somehow subliminally I started to do better in Chemistry. I went to college and
I actually applied to be Chemistry major. However, after my first year, I found
out that I was not Chem major material. The advanced course I took was very rigorous,
just copying answers to problem sets took me 4 hours, and this is excluding lecture
times and laboratory work! I was devastated and remember calling my mom long-distance
to tell her I couldn't do it. It was a very sad day for me to disappoint my parents
9200 miles away. I never really had much experience with computers but made the
leap to a degree in computer science instead. I think it is strange, it seemed
like God closed all the other doors and this was the only option available to
me at that time. And I loved it. So you could say I was guided into IT quite by
accident rather than by design.
Actually this parallels your switch from IT to doing your own business
The IT switch was different. Going from IT to business was a choice I had
made because I felt that it was something I needed to do. It was like something
off the beaten path had caught my eye and I just had to wander off to investigate.
vAfter my graduation, my dream job was to get into an MNC, so I applied to Hewlett Packard. I got in and I stayed with them for the first few years of my working
career, it was fun doing the corporate thing.
Did you actually imagine yourself setting up your own business?
No way.
So your dream all the while was to actually
To be a geek.
I wanted to be a technical consultant or Solutions architect, to work with
a firm like Andersen Consulting with a broad portfolio of clients across sectors.
I mean I loved doing technical work, but also craved to have more interaction
with people at the process or business level. So I didn't want a job that stayed
purely programming.
So actually what made you decide to make the switch? Like from being an
employee to an employer? Like to become a boss of your own.
In general, it wasn't planned. I started to do what I could where I was. When
I made team lead, I was presented with a lot of opportunities to travel and during
that time I was very happy really doing what I feel is my first love. And what
basically happened was that I was working very hard and seeing no returns. At
that time the economy was starting to slow nearing the end of my stint there and
starting to see corporate cutbacks. I was working to like till 2 a.m. everyday
to get my projects going and I would come back in to work at about 10 plus in
the morning, including Saturdays.
Once on an overseas stint in San Jose, a colleague brought me to a smoothie
shop. I fell in love with it. I said to myself that this was something that I
wanted to bring back to Singapore. It'd be perfect in our weather! The idea got
stuck in my mind. I couldn't get it out of my head. I thought about it and made
my plans out on paper napkins whenever I had a spare moment. This was only the
beginning. Great ideas, if ever, only come once in a lifetime, and I had to do
something about mine. I never aspired to be my own boss but I did want to see
this idea to completion.
Can you give me a brief description of your business and how you and your
co-founders started it from scratch?
In general what I did was to do research on the net to find out the potential
of this business. I also went to visit some of the major players there. I came
together with some friends and talked about whether we could start something like
that. I bought as many books as I could on smoothies to read up and off and on,
in my spare time, I would just blend some smoothies at home to test out the different
techniques the different authors presented. You can imagine my parent's reaction,
wondering what their son was up to in the kitchen, forcing them to down my mad
scientist experiments. I even worked part time at a coffee chain to find out what
life would be like as a retailer, without letting my parents know. My partners
and I eventually returned to the US to shop for a franchise but ended up acquiring
the technology.
What is your schedule like in a typical day?
My day starts at 10 am. I go through my emails and have a quick coord. meeting
with my guys if possible. My day is interspersed with meetings, working out design
and marketing issues and a good deal of project management. Occasionally there
is the networking or business dinner commitment so the day can stretch quite long.
In business, networking is very important; you will always need people's help,
it is impossible to do it alone.
How was the local market response, take up rate? Were you encouraged/discouraged
by it?
We emphasize health and convenience, which are two major global consumer trends.
The take up rate has been good but the going has been all up hill. Part of the
reason is that we have to spend a lot of resource to educate the local customers
on the product category and not just differentiating ourselves from the competitors
in the industry. In the US, people already know what a smoothie is as it had been
around since 1960s. So as pioneers and leaders in this market, we participate
heavily in road shows like the Singapore Food Festival and conduct smoothie workshops
to get the product into the hands of the people. We put in a lot of marketing
effort and a lot of R&D for long-term growth spreading our base. Needing to
build a market encouraged us to find multiple ways to expand our business; if
you just rely on one way, you will not succeed.
And can you give me in detail what are some of the (major) sacrifices you
have made due to this decision?
Time with your family and loved ones, time with yourself (your personal time)
are eaten up. Financial consideration, losing the security you have as a professional.
For my partners and I, we are very much on the ground, we love and believe in
the concept so much so we don't take a big salary. We just take what we think
it is enough and plough the rest back to our company and to our people. That is
the commitment you must have if you are in it for the long haul. There are no
sleeping partners here, everyone puts in 110%.
How did your family and friends react to your decision?
Well the fact is that I am now a drink stall seller! My dad was not very happy
initially, particularly since he had sent me for an overseas education to earn
my professional certification. I asked him for financial support to invest in
this company because I could not possibly do it on my own. I can tell he struggled
with the idea of me going into business.
My father was very anxious for me. My mum was, on the other hand, surprisingly
supportive. She told my dad that if this was something that I wanted to do, to
just let me go ahead and live my dreams. The good thing is that, after getting
over the initial shock, my dad is now my biggest fan. He would regularly bring
his friends down for lunch at the cafe. He would also come down on his own to
try everything on the menu including giving his feedback on new items. If I have
new store openings, he would travel halfway round the island to be there. I never
expected him to do that but that was he has been doing for me. Amazing.
Tell me some stories that give me an idea of the hardships involved when
you started a business from scratch. What are the problems that you encounter?
We had problems with staffing initially. I worked through my first Christmas
when we started this business, personally manning one of our three shops because
we were down on staff. We HAD manpower problems. Our team was very small and everyone
was stretched. Working in the office during the day, then rushing to take over
the 2nd shift from late afternoon to about 10pm. By the time we closed the store,
cleaned up and went for dinner, it was about midnight. I'd hit the sack at 2am.
The whole cycle would start all over the next morning. Hands raw from washing,
body tired from standing behind the counter or running deliveries, the mind exhausted
from tackling operational and concept problems. All this while trying concurrently
to conduct interviews. Tensions rose, relationships at work and at home were tried.
It was pretty tough. A real low point.
What are some of the things you had to overcome to succeed?
Its too broad a question to answer directly, but there were times that things
were so tough that I did think about turning back, fearing for my future. But
it is passion that drives you on, of achieving your vision. Also, watching the
commitment of your staff under you; you don't want to let them down.
When did you actually feel like quitting?
When I was working to the point where I got a car accident because I fell
asleep at the wheel from exhaustion. Working all day and all night. In the day,
you are in the office clearing paperwork, in the afternoon you go to the store
to do shift work because you don't have enough managers. Times like that are really
tough, and adding to that an economic crisis working against you. Everything seemed
to be falling apart. When you are trying your very best, but seem to be powerless
at effecting any change, it can be overwhelming.
Can you describe your best day/encounter in business?
Closing a business deal is a very satisfying feeling. As is seeing your shop
open in another country. As is having people excited about your product. The first
day we opened, the queue was right to the middle of the square. We used to sit
in a corner and observe whether customers finished their drink to see if the acceptance
and satisfaction level was good. When we see little kids drinking our smoothies,
we are always very happy because they are brutally honest about what they do or
do not like. Those are the best days.
What about your worst day?
Working with difficult people. Relational issues can be very frustrating.
How do you and your company cope with the recession?
We communicate what we plan to do to our staff. We have to pull the team together,
give them a vision and then lead them by sharing our plans to grow the business
and to weather the storm.
Don't put all your eggs in one basket. We are working on multiple projects,
although some can say that we are not very focused, these projects are all centered
on the same core technology, the same system, just creative variations.
What we do is we look for multiple channels, multiple revenue streams to stay
ahead. You have to look for different business opportunities and go for it. Get
your team behind you. Make sacrifices together. The management cut their own pay
first before the staff's pay. When we reinstated pay, we reinstated theirs first.
When times are good, reward them, remember their commitment. We've given out bonuses
in 2002 and even expanded our team, surviving and coming out stronger and a little
more confident.
Who are your competitors in this market and what strategies do you adopt
to make sure that you guys stand out?
Direct ones will include anyone in the lifestyle café business like
Coffee Bean and Starbucks, not just smoothie or juice bars.
To strategize against them, we need to differentiate ourselves well in the
minds of the consumer. We do a lot of R&D as well to stay on the cutting edge
and to raise benchmarks in our industry. We find our own niche and we market ourselves
as best we can. Our next step is to secure good, highly visible locations to make
our products more accessible and to create more awareness. Also, we find that
localization is very important. It allows you to give the customer exactly what
they want, making you culturally relevant to the country you are operating in.
What qualities do you think it takes to succeed? What personal qualities
you possess for you to succeed?
Tricky question. The topic of success is much debated upon. Success is a multi
faceted definition for me. One definition is seeing the goals you set for yourself
achieved. The second way I look at success is how far you have come, the obstacles
that had to be overcome to get to where you are, even if one's goals were not
fully achieved. The last way I define success is in what people think of you (or
your creation). Recognition from other people is important because it tells you
how good you are in other people's definition of success. And this is how you
benchmark yourself.
In this context, I believe that you must have vision, so you can set goals
for yourself and your company. Then, to overcome the obstacles in your way, you'll
need passion to see you through the highs and lows of the business world. It helps
also if you are stubborn and a jack of all trades because there are no defined
job scopes when you run your own company.
Who is your role model? Who do you admire in business?
Never really thought of that. I am always amazed at people like Bill Gates
and Michael Dell who achieved much at a very young age.
Is there anyone in particular that you would like to thank? Someone who
kept you going in difficult times
My parents and my fiancée. I must also give thanks to God too, who
does not give me more than I can bear.
What would you advise enterprising youngsters to do today in starting a
business?
Passion and vision is something you must have. You should start young since
you don't have many commitments and you should find very good partners to help
you achieve more.
Other than official titles like "director", what roles do you
play amongst the three co-founders?
I think I play different roles at different times. For the staff you try to
play a leadership role or be an inspirer. Among us partners, there are times that
each of us may feel low, so we try and push each other. We used to joke that Linda,
the MD is the brain of our organization because she is very forward thinking;
Robin is more the heart of our organization, he does the HR and accounting core
functions. Sandra, as Operations Director is of course the brawn of our organization.
I would like to think of myself as the soul of the company, working on being the
internal 'glue' bridging management and staff, setting the editorial voice for
all our external communications (Press Releases, Website, marketing and training
materials) and filling in the gaps in any of the other aspects of the business
from operations to R&D to IT to business development, if any.
As we try and pick the final 38 entrepreneurs from all the people we interview
what qualities would you think a person should have to inspire others?
The person should have come a long way from where he first started. And he
should be happy at doing what he is doing.
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? You don't have to decide now, but if some day you are asked - any ideas? Primary
school, secondary, college, technical or university?
Not necessarily my alma mater. I would like to review the schools, which are
eligible for this, and if I could, I would also like to select the student. I
think it is more meaningful if it goes to a specific person whom I feel has a
big potential and has a very good vision. I think we should let that person have
the chance to work that dream.
Before we end, any other story you would like to tell me?
Quite an interesting one to do with our beginnings. Few know that we almost
lost our deal to acquire the company in 1999. After all the research and a mission
trip to the US, we eventually found a suitable franchise, and after we signed
our part of the agreement, we received a phone call from the CEO saying that they
could not sign the other half of the agreement because they were being acquired
by a bigger smoothie company. I was shocked beyond words, as I had just tendered
my resignation to embark on this project.
From my experimentation in the kitchen, I knew that commercializing home recipes
and equipment for commercial use was extremely difficult and time consuming. We
needed a franchise system to kick-start the company in Singapore. Linda saw an
opportunity out of this set back. We decided that if we could just acquire the
technology without the trademarks associated with the full franchise, we could
still make it work
though not without increasing the complexity and risk
of the project. So we went back and negotiated with them to buy the operation
system, minus licensing and branding rights. And we won! Transferring the proven
system back to Singapore, we spent the next 9 months fine tuning and customizing
it in a way no master franchisor would have allowed. We had effectively changed
our position from a licensed Master Franchisee to that of a Franchisor! The set
back was an incredible experience. I thought it was the end, but it was really
just the beginning. It taught me the invaluable lesson that opportunities can
be found in every set back. And that was how we started Pacific Fusion International
Pte Ltd in Jan 2000.
Student Interviewer's Personal Comment
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