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FOR Kain Sim, managing director of SLP International Property Consultants, the economic crisis has been a 'blessing in disguise'.
Having the courage to expand in the midst of the downturn meant being able to attract talent that the company otherwise would not have been able to tap.
Ms Sim says: 'During boom time, we will not be able to attract the right talent. We are a small company and can never compete with the big boys.'
Indeed, for the property agency specialising in consultancy and marketing services for industrial properties, talent is a crucial factor for successful expansion.
In Shanghai, the company grew from 10 staff to 50 staff within five months. In order to achieve the target of opening 35 branches in China by 2011, the company needs as many as 400 staff.
But attracting talent in a foreign country is not easy. Ms Sim says: 'It took us about nine months to find several qualified team leaders and managers. However with the October 08 crisis, it has given us a chance to secure qualified staff with our international outlook and expansion plan.'
The crisis has also helped in more ways than one. Prior to the crisis, Ms Sim was locked in negotiation over the rental issues for some office sites that she was looking at. Following the crisis, office rental plummeted and SLP was able to secure good sites at relatively lower rates.
But the crisis did not ameliorate the challenge of assimilating into a new business environment characterised by low transparency.
As Ms Sim recalls: 'In China, it takes a lot of effort to ensure that information given is accurate for our decision making. We lost 300,000 yuan (S$64,140) participating in a property exhibition during our first foray into the Shanghai market. There are also taxation and accounting issues which we need to understand for local operation.'
Being unfamiliar with the local market and not having sufficient information led SLP to participate in the 'wrong' exhibition. In a nutshell, the exhibition's audience was different from the company's intended target. Neither did the profile of the organisation fit in with the company's image.
But looking on the bright side, Ms Sim says that the episode taught her the importance of due diligence and networking with the right partners.
Since then, SLP has engaged in extensive research before venturing into new markets. Stanley Yeo, the executive director, has spent about a year researching the Shanghai market before the eventual decision to setting up a base there.
The company has also been working with the right partners who are not only able to attract the right talent, but are also able to impart knowledge about the local culture.
Looking back, Ms Sim says: 'We learnt not to rush into things so it was good money lost.'
In spite of mistakes, investing in a downturn has paid off handsomely for SLP. Their Shanghai office started with a monthly turnover of 50,000 yuan that has since increased to 400, 000 yuan.
With such stellar results, SLP is charging ahead with expansion plans. Aside from their goal of opening 35 branches in China, the company is planning to grow its commercial property and local residential property arm in Jakarta.
Back in Singapore, Ms Sim has plans to steadily up staff strength from 45 to 100 in 2010, to meet growing demand.
This year, the company has expanded into residential, valuation, property management and commercial property, with an aim of becoming a full service property agency by 2010.
The question is where will the funding come from? For now, SLP relies on a mix of retained earnings and a Spring Singapore bridging loan.
In sum, investing during a recession has certainly panned out well for the company. Ms Sim says: 'We have to make use of the right timing to do the right things. We have been praying for a slowdown. The crisis has always been a blessing for us.'
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