For Selvaraj Ramakrishnan, entrepreneurship was never a given skill nor was it a blazing passion from childhood. The Indian- born engineer and founder of TGTS Pte. Ltd. migrated to Singapore in 1995 to work as a CNC machinist – this is someone who sets up and operates computer numerical control (CNC) machines to cut, shape, and create parts and components from metal and plastic. The highly skilled technical job uses technical drawings and computer programming to produce crucial products with precision.
Approaching his late 30s, he decided to upgrade his skills, with a part-time degree in mechanical engineering at the University of Newcastle, Australia via PSB Academy. Upon graduating in 2009 he joined his then employer’s engineering team to learn more about product design. With his unique skills and knowledge in both design and manufacturing, he was quickly promoted to a product-responsible engineer. Yet his curiosity for more technical knowledge was never low and he jumped at an opportunity to work in Norway as a senior product engineer for a year.
Renewal through challenges
Upon his return to Singapore, Selvaraj found himself in an altered company due to a merger. It was at this phase in his life that he found himself contemplating other aspects that mattered beyond technical skills. “I found that the new working culture was not suitable for me and that if I really wanted to achieve work-life balance, setting up my own business was the best option,” he reflected.
In April 2017, Selvaraj launched Tech Global Trading & Services (TGTS), offering online retail, authorised distribution, resale, and e-commerce consultancy. He subsequently quit his job and began focusing solely on his business a year later. With his engineering background and deep technical knowledge, Selvaraj knew the range and detail of available products and their applications. But he was clueless about running a business. “Lots of lessons were learned and challenges navigated during the journey, of which cash flow was my biggest,” he admitted. Like an engineer, he learned to methodically focus on a few key areas - budgeting / forecasting, expense management, cash reserve, and monitoring/ adjusting.
“I created a detailed budget and cash flow forecast to track income and expenses which helped identify potential shortfalls in advance. I reviewed and prioritised expenses, cutting non-essential costs and negotiating better terms with suppliers to improve cash outflows. A portion of profits was set aside to build a cash reserve for unexpected expenses, providing a safety net during lean periods. Last but not least, I regularly reviewed cash flow statements and adjusted strategies based on real-time data to stay agile and responsive to changing circumstances.”
Then came COVID-19. Like many businesses in 2020, TGTS found itself unable to maintain product stock levels, resulting in customer dissatisfaction. Today, its risk mitigation strategy includes a warehouse in the US providing a 4-6 month storage and a new supplier in Vietnam. The pandemic also brought positive learnings as Selvaraj adapted the business by quickly identifying more products that customers were interested in.
Looking ahead
To date, TGTS has partnered with Lazada, Shopee and Amazon and participates in all shopping events to offer big discounts. Its next big leap will be the start of an e-commerce store to grow their base and better serve loyal customers. It is also planning to launch new products under the “GIFT” category and expand the Amazon business to the UK.
Credits: LinkedIn
As an entrepreneur, Selvaraj derives great satisfaction when customers give positive reviews. Yet it is his quest for learning that underpins his advice to budding and current entrepreneurs, “Customers are the most important of any business. So, understand your customer's needs first and deliver beyond their expectations.”
Learn more about TGTS (www.techglobaltrading.com) or get in touch via contact@techglobaltrading.com
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