Vietravel Chairman's Thoughts on Startups: Think Carefully Before 'Rebuilding' Your Business Model, Because 'No Mother Can Keep Supporting Endless Failures'

• The Chairman of Vietravel emphasizes the importance of having a proper structure and personnel arrangement in organizations so that everyone can develop their full potential.

• A weakness identified is that Vietnamese entrepreneurs are often too impatient, quickly wanting to "demolish and rebuild" their business models when faced with stagnation or lack of desired results, rather than carefully considering their approach.

• After the COVID-19 pandemic, the starting point is the same for both large businesses and startups, and the key is to continuously innovate, make quick decisions while preparing thoroughly, and restructure the business every 5-7 years rather than constantly.

• Innovation and adopting disruptive technologies are crucial for all businesses to stay relevant as consumer needs are changing rapidly, and in the current market ecosystem, it is not about big businesses beating small ones, but fast businesses beating slow ones.

In today's era, those who prepare thoroughly and adapt quickly will succeed, rather than big corporations crushing startups. However, this quick adaptation doesn't mean constantly 'tearing down and rebuilding' business models like some startups are doing; because 'with too many failures, no mother can keep supporting forever'.

"When I started my business decades ago, I only had 6 million dong and 6 teammates. But young people today have a higher starting point, making it harder for them to choose where to begin their startup journey. From my perspective, before deciding to venture into a startup, you should carefully evaluate global development trends and then set your direction in Vietnam. Instead of trying to create completely new models that don't exist in the market, we can learn from successful startup models from abroad. Basically, we need to identify market gaps and consumer needs that haven't been met by anyone yet, and then position our business for the future. As the Vice Chairman of Ho Chi Minh City Business Association, I see many untapped market opportunities, especially in sustainability, emission reduction, and recycling initiatives," Mr. Nguyen Quoc Ky - Chairman of Vietravel Group stated at a recent event.

Over the past 30 years, Mr. Nguyen Quoc Ky and his "teammates" have built an "empire" in Vietnam's tourism industry, comprising four companies that rank among the country's largest travel agencies, an airline, and 11 overseas offices, all contributing to a thriving economic ecosystem.

One significant weakness he often observes among young entrepreneurs today is their tendency to 'come together quickly and break apart just as fast', particularly among high school and university students.  According to him, startup groups often dissolve early because everyone wants to be a star, but he poses the question, 'if everyone is a star, who will be the night sky that allows these stars to shine?' When working on a startup project, it's crucial to clearly assign tasks to each person and delegate decision-making authority in specific areas to those with genuine capabilities. This approach helps maximize each individual's strengths and creates a more sustainable team structure.

"The main reason for the failure of many Vietnamese startups is often due to poor personnel allocation, arrangement, and structure. A good business must have a proper structure and personnel arrangement so that everyone can develop their highest potential," the Chairman of Vietravel emphasized.

Another weakness is that Vietnamese entrepreneurs today are often too impatient. As soon as their business stagnates slightly or doesn't bring the desired results, they immediately want to start over. Many young entrepreneurs nowadays are very fond of "demolishing and rebuilding" their business models. However, according to him, before doing so, they should think carefully because 'too many failures and no mother can keep supporting forever'. This approach often hinders the development of a sustainability business model.

The right approach for both startups and large businesses is to continuously innovate, make quick decisions but prepare thoroughly to avoid wasting resources, and restructure the business every 5 to 7 years rather than constantly every year.

"In the current times, it's not just startups but all businesses that need to be responsive to the situation while continuously innovating." This is where breakthrough innovation and disruptive technologies can provide a competitive advantage."

"So why do we need innovation? Because consumer needs are changing very rapidly. Ten years ago, Vietnam produced rice mainly for domestic consumption, but today it's primarily for export.  After Covid-19, customers prefer quick, contactless, and safe services. When society transforms completely, businesses must correspondingly transform through innovation to stay relevant. Only when society needs us do we have the opportunity to showcase and serve everyone!

It can be said that after Covid-19, everyone starts from the same point, regardless of size. Therefore,in today's market ecosystem, it's not about big businesses beating small ones, but fast businesses beating slow ones," Mr. Nguyen Quoc Ky expressed.

For example, nowadays, if businesses don't change their communication and market approach, they won't attract customers. Currently, consumers typically watch marketing PR clips on their phone screens, and within just 3 to 7 seconds, if they find the content uninteresting, they will definitely swipe away immediately.

This new consumer behavior demands businesses to adapt their marketing strategies quickly and effectively to capture attention in those crucial first seconds of engagement.

Therefore, businesses must creatively place their key messages at the beginning of video clips to instantly catch customers' attention upon first contact. The old approach of gradually delivering messages is no longer effective. Consequently, businesses have only one chance to win customers' hearts, and if they fail, it's unlikely they'll get another opportunity.

Similarly, when developing and launching a brand identity, if the market cannot quickly embrace it, it's better not to proceed at all. This is because restarting such a project would be extremely challenging and could cost two to three times more than the initial investment.

From another perspective, every 5 to 7 years, both Vietnam's and the global economy face significant challenges due to crises or pandemics, which coincide with businesses' healthy development cycles. For a business to develop sustainably and achieve sustainable profitability, leaders must undertake comprehensive restructuring every 5 to 7 years, making changes from top to bottom to adapt to the new era. This restructuring process is essential as it ensures that businesses remain competitive and relevant in an ever-changing market environment, while also preparing them to face potential economic challenges that may arise during these cyclical periods. This approach is crucial for maintaining a sustainable innovation cycle and implementing an effective business model innovation strategy.

In the next decade, Vietravel will need to reposition itself. They will no longer be just a tour operator but will transform into a company that brings new value to customers' lives. Vietravel's goal is to enhance the quality of life for Vietnamese people, making their lives more colorful and joyful. This transformation aligns with the principles of a purpose-driven business, focusing on both social impact and environmental impact.

Another concern that troubles the chairman is that despite Vietnam's open-door policy and renovation over several decades, we haven't created any products or brands that are globally consumed, unlike Japan or South Korea.

"We need to seriously reflect on this issue and understand why this is happening! Currently, Vietravel has 11 representative offices abroad, but in my opinion, that's still not enough," Mr. Nguyen Quoc Ky concludes. The company's future strategy will focus on sustainable practices and sustainable innovation to ensure long-term success and value creation in the global market.

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Source: markettimes.vn https://markettimes.vn/chu-tich-vietravel-tam-tu-ve-gioi-startup-hay-nghi-ky-truoc-khi-dap-di-xay-lai-mo-hinh-kinh-doanh-vi-that-bai-nhieu-qua-thi-khong-nguoi-me-nao-nuoi-duoc-mai-69929.html