Can high costs be a business success ingredient? Costs have to be expended on activities to capture and deliver value. Unless high costs also bring high effectiveness and efficiency, high costs can negate a good business opportunity.
High risks associate with investing in any startup business. The risks however can be managed by analyzing the business' value proposition eg if the innovative product or service really provides a good solution to a market problem and therefore a good business opportunity. The risks can also be managed by assessing the startup's intellectual, financial and business management capacity to deliver value.
If Hong Kong wants to become an innovation hub, the public sector should devise appropriate fiscal measures eg introducing further innovation-related tax incentives to lure multinational investors to consider Hong Kong as an investment destination. At the same time, Hong Kong entrepreneurs should also start smart by devising trendsetting business models and executing them effectively and efficiently. The objective is to minimize costs and risks while partnering or innovating in Hong Kong.
I believe low costs and low risks, and effectiveness and efficiency are the business success ingredients. I practise what I believe by analyzing costs, benefits and risks and by delivering outcomes that exceed customers' expectations. As there must be some circumstances beyond my control, I believe between the pessimistic and optimistic extremes of my estimates lies my most likely return on investment!