Ep 2: Realities to Recognise When Starting Professional Service Businesses in Singapore – Erin Padilla from Accela

Erin: So, I grew up in the US., I grew up in the Midwest, my family has really deep roots in agriculture, so, I grew up on a massive 5,000-acre ranch. I went to a small private liberal arts college in Nebraska called Nebraska Wesleyan. 

When I initially got out of university, my first job out of school was actually working with a politician, a state level politician. So, I was doing assistant work for him, media work, helping with fundraising while he was campaigning. And then, once he was elected into office, I went to work on the executive team, it would be called. So, with, you know, the chief of staff and the heads of the different departments. 

I did that for quite a while, and then I was introduced through a fellow uni-mate to a company that was based also in Nebraska, but that was global called Talent Plus. And what that company did was psychometrics for different companies globally. So really large MNCs, and what they did was really helped those companies understand the profile of what is good talent in specific positions within those organizations, and how do we hire more, like, the best and make sure that they’re in the right roles. So, it was an amazing company in terms of ethos. It was all about making sure that you are understanding of a person’s natural talents and abilities, and then putting them in roles where they could really flourish by doing what they were good at, focusing on strengths versus weaknesses so that people would really learn and grow that way. So, it was actually through that company and the work that we were doing with the multinationals that landed me in Singapore. After about two years of working there, I was tapped to actually move to Asia, to open their Asia Pacific office. So, I initially came to Singapore in 2007 to do that, pre-Marina Bay Sands.

Vikram: 2007, pre-Marina Bay Sands, oh my god, city must look, 

Erin: Totally different, the skyline was completely different. 

Vikram: So, you’ve seen the modern-day Singapore really sort of grow in the last. 13, 14 years. 

Erin: Yeah, definitely. I mean, I think it’s amazing to see how much it has progressed in such a short period of time, especially, I mean, I’m really fortunate to be able to have that sort of juxtaposition of being American, so, being able to go back to America and see just the difference in pace of progression between the two places. Singapore, rapid progression, the US, slower, of course, you know, completely different, Singapore as a younger country, but yeah, fascinating. 

Vikram: What have been some key developments or changes that you’ve seen over the last 13 years? And specifically, like, I know your husband is in the F&B or beverage sort of business. And when you came, there were probably not a lot of hip bars and cocktail locations, but are there any specific things you’ve seen dramatically change over the last 13 years? 

Erin: I think, you know, you’ve touched on it, that’s absolutely one of the biggest ones. And I think a part of that, I feel that way because it’s down to personal preference, and those are things that I enjoy doing. So, you know, eating, drinking, having that type of experience. But that scene, has absolutely exploded in the last decade. And I think that it’s, for Singapore, one of the things that they can really proudly hold up in the region, in terms of a sector that they’ve really thrived in and actually are, you know, on top of Asia’s 50 best lists, world’s 50 best lists, with their F&B scene. Yeah, absolutely, in 2007, it was very difficult to get a proper cocktail if you wanted one. Today, you can basically go into almost any place, and there is, you know, well-trained bartenders, you’re spoiled for options in terms of amazing places to dine. So, I think, that’s been really fascinating and kind of on the line of the progression component, so, I think, one of the things that’s been really impressive is to see how a lot of those processes that are, maybe, backend for bars and restaurants in F&B has really started to become less manual and more digitized. And just how fast people here pick up on those types of systems.

Vikram: Right, and when you came here, you were part of a multinational company, were there a lot of people who started their own businesses? Right now, the startup culture has really blossomed in Singapore, what was the situation or the environment when you moved here?

Erin: Yeah, so, you know, we all, I think stand in different spots, so, have different perspectives at different times, given what we’re focused on. And obviously at that point, my role was more focused on MNCs, and so the people that I was spending time with were absolutely more MNC focused and I don’t believe that there was the burgeoning startup scene at that point in time that there is now. I think that over the past decade, Singapore has really put itself on the map as a place where both locals and foreigners alike can really, you know, step out of that MNC environment, do something that they’re really passionate about, you know, build businesses that provide good employment opportunities, and, you know, services for companies, both in Singapore and in the region. That maybe existed, but needed to be rethought and done in a bit of a different way. So, I think, at that point in time when I was here definitely more MNC focused. The ex-pats that were here that I was really interacting with were working for those larger companies. There were a few that were, maybe, in consultancies, but to be honest, the ones that I was interacting with at that time, typically weren’t based in Singapore, they, maybe, had a base in Thailand or somewhere else and then would serve as clients in Singapore. But even since then, with those types of contexts, for me, they’ve actually moved to Singapore, set up their business here because of the stability that’s provided in this time. 

Vikram: Right, right. And so, what was your, how was your progression from working at a MNC, and that’s the reason you came here, and then you started your own company. How did that happen? 

Erin: So, I was with the company that I spoke about for a decade, so, a long time, and I had, like, such great opportunities with them in terms of really learning, like, the full cycle of a business and all the components that are necessary. At the end of 10 years, I think, one, I had an opportunity presented to me to set up my business which was really exciting, and I had also reached a point professionally where, amazing, but I was at a point where if I was going to continue to work that hard, I felt like, it was time to place a bet on myself. And so, to maybe, step out on my own, I had good support, I had a group of really supportive investors, that could help along the way and see what we could make of it. I think, two, because I had that business set experience in Singapore, like, you touch, you hit it, exactly right. It was, like, so different to have a opportunity to come here and set up a company with an MNC where there was absolutely a budget, but I didn’t have to worry as much about making sure that we were able to fund the setup of the company versus setting up a startup that was doing something completely different, with limited funds and sort of knowing that, you know, we really had to get to work to build it and to build it organically. Just completely different pressures, sort of doing the same type of things. 

Vikram: Right, and was there that transition from an MNC to starting your own company? Did that sort of happen overnight or was that work in progress in your head for a very long time? 

Erin: It happened overnight. And so, I will say one thing, that, you realize quite quickly. And I mean, you’ve been on a similar journey, is you realize, like, oh, I have to hire all my own people and I have to do my own books, and I have to make sure that all these things are done, which is really different than working in an MNC where you have that back-office support to manage it for you. So, I think those were things that were a little bit, you know, eye-opening when suddenly, you’re used to having a team around you, and then, you’re doing everything or you’re hiring people to do it, and then, you feel really responsible for the people that you hire, because you’ve asked them to go on this journey with you that you’re also trying to kind of navigate along the way.

Vikram: Right, and was there fear? Were you afraid to start your own thing? 

Erin: I don’t remember. That sounds weird, but I just don’t remember because I don’t think there was ever a time where I felt, like, we couldn’t do it. And because I had a really supportive investor set, I knew that there would be some guardrails to be able to help along the way, like, ultimately it was on me, but I wasn’t completely alone doing it.

Vikram: Right. So, maybe, we can talk about what is your business? What does Accela do? And if you had investors from the beginning, how did that happen? Who are your investors? And why did they invest in your company? 

Erin: So, Accela is a professional services firm, that basically has three businesses. So, one of the businesses is a corporate secretary bookkeeping service, and with this part of the business, we help do setups incorporations for companies that want to have business in Singapore, and then we’ll help them along the way with their bookkeeping, their corporate tax needs, and all the compliance components that come into play with having a ACRA registered business here in Singapore. That part of the business to me was particularly close to my heart at the time, because I had gone through the process with my MNC of having to do that here, and found it to be quite complicated, in the way that it was explained to us, and in the way that things were done that were regulatory requirements, where once you sort of broke it down, it’s not really that hard, if someone can just explain it to you, simply put. I also felt that there was a lot of opportunity there for people that had global exposure to other ways of doing that in different countries, so that, if it’s someone from, let’s say the UK, that setting up here, you can compare the two systems. So, people can say, so it’s like this here in Singapore, which is somewhat similar to the UK or not at all similar. So that it gives people sort of an understanding of what it is. Another component of the business is a recruitment and HR outsourcing business, and so, with that, we focus primarily on high growth companies or first on ground hires, for businesses that are setting up from overseas. Primarily, in this, we work a lot with tech companies, which is really exciting because that’s a place that’s, or a component of, you know, the Singapore ecosystem that’s really growing. And then with that as well with a lot of the companies that are younger or that are setting up from overseas will actually play the role of their in-house HR support. So, we’ll do that up until a certain point where the company gets big enough where they actually need to in-house that. And then the third component of the business is a public relations agency. And this agency really focuses on B2C products, consumer lifestyle types of businesses. With that, we’re really focused on, you know, promoting them through traditional media relations. That part of the business was really built around a need to sort of look at how you do things differently, in terms of how you partner with companies more as an extension of their in-house marketing team versus, like, kind of a traditional agency approach where, you know, it’s really tracking of hours and a bit more rigid. So, we wanted to be able to do something where it was exciting for team members to be a part of it, because they did feel like they can really get stuck in with the companies that they were working with, but also that, you know, for our client base would really be sticky because they would feel, like, we do really care about the business we’re invested in helping them in the long run. 

Vikram: And when you started, how did you get investors on board from day one? Because that’s a very difficult thing to do, right?

Erin: Yeah, actually. So, it was a little bit, I think, backwards for me where I had an investor, a group of investors, who saw the need for a business like this. And then, when I had mentioned that I was kind of getting to a point where I wanted to think about doing something else, they said, we have an idea, we think you’d be perfect for it. You can refine it over time, but we think you could come in and do this. So, I had a bit of a different scenario with it, where then it was sort of ready-made set up. 

Vikram: Oh, that’s great. So, it seems, like, the situation was this investor base, they needed these services. 

Erin: They saw the need for it, with the companies that they were investing in.

Vikram: Right, and said, hey, we need someone to actually build a business, you’re perfect for it, we’ll invest in it, and you, this is your business. That is, I mean, that is, the perfect sort of setup for that transition, right? Oh, that’s great, and what year did you start Accela? 

Erin: 2016. It’s been six years, almost, in June. 

Vikram: Okay great, and so, when you started the business, then in 2016, I’m guessing the climate, the environment for professional services was very different than it is today. How has that industry evolved? Because in the recent few years, we’re seeing a lot of startups come to try to digitize the professional services business, so, you must have a lot more competition. How has that industry evolved? 

Erin: So, you’re exactly right. So, a lot more of, I would say, like a, try for more of a digital hands-off approach, which is really great for certain types of companies. Also, because more and more people are interested in setting up businesses, I think that, part of the push for the way that things are evolving is based on, like, skill sets and knowledge sets for founders within businesses. And so, I think what we’re finding is that, there is a really, need for these service firms to be able to work in a modern way and to be able to be quite consultative. And so, what we try to do, which is slightly different is to sort of blend the seamless technology component of it, along with good consulting, because so many people that are setting up, maybe, don’t understand the full picture. And they want to understand it, so they want someone that will take the time to do that, but that also doesn’t cost a lot, because everyone’s cost sensitive around these services, especially when you’re looking at corporate secretary services. Cause that’s a bit more of a commoditized service just given the fact that everyone in Singapore needs to have that. So, it’s definitely, I think what we’ve seen in terms of the evolution as well, there’s been lots of movement towards digitizing that, Its also sort of moved away from that consulting component and in our experience, when we’re having customers come to us who have maybe started down that path and then realized, I need a bit more support, I need a bit more explanation, I need someone that will sit down with me and help me understand what my different options are. We finding that it’s really important that you continue to be able to blend the best of both worlds.

Vikram: So, it sounds like, the industry has evolved in the sense that more people have come into the environment and they’re trying to do a lot more volume, but probably less quality. Whereas you’re seeing Accela, being this company that does maybe not as much volume, but does good quality, consultative, you know, and really puts in that human element and high touch sort of service, as opposed to here is an app, fill it in, and then it goes into some sort of engine and you’d never talked to anyone. 

Erin: Right, and chat bot if you have questions. Where we sit, is right on the tipping point between the two where we do as much as we can, and that we think is appropriate digitally, because we want it to be seamless and convenient for our customers, but also making sure that we continue to hire people, build a team that is knowledgeable and can actually, you know, give the support when our clients call us. 

Vikram: Yeah, and what have been some of the toughest challenges you’ve faced in and building Accela so far? Any stories, any funny, any scary stories you have? 

Erin: Gosh, so, I think at the beginning, and everyone has this, right, it’s sort of really narrowing down what your product is. Because it’s easy in the beginning to feel, like, there’s a lot of things we can do, there’s nothing but opportunity, which I think is a nice way to start out. But then as you start to do that, you realize, I’m never going to be able to do everything really well. And so, I think, that was probably the biggest challenge. In the first, like, two to three years of the business setup, was just trying to do a lot to understand what was really resonating with the market. And then starting to realize like, oh no, like, we just need to really like, hone in and do certain things really well. And then we’ll be able to, you know, build a good business, build a really good market reputation. Oh my gosh, funny stories about setting up Accela, I think, it kind of comes back to that, like, you know, like, the founder’s stories, right, of having to do everything. So, things like, showing up at the office the first day, realizing there’s no trash cans. 

Vikram: Got to make a run to Ikea. 

Erin: Yeah, exactly. I found all these places I wasn’t aware of for my MNC days, like, Toyogo and places like that, to buy trash cans. 

Vikram: What’s the Japanese brand, where you buy all this stuff very cheap.

Erin: Daiso. Yeah, exactly.  

Vikram: Got to run to Daiso to buy your essentials. 

Erin: Just things like, you know, like, a cleaner for the space, just for the office, all the different components of a business that you have to manage that you don’t think about. And when you’re a founder, you have to do it all, early on. And then, you know, as it grows, obviously other people can help with it. I think, some of the biggest challenges for me, have been really kind of just narrow going down the services like I mentioned. But then also, best part of it has been finding people to really work alongside in the business and, you know, really helping our clients, really, you know, live out what they want to do, or, you know, whether it be on the corp-sect side where it’s someone that we help set up and then we work with them through their finances and we see them through their first AGM, or, you know, the first time where they get profitable. I think that that feels really good to be a part of that. And then, you know, on the public relations side, it’s about really telling the story, seeing it resonate with the media and with consumers in the market. And of course, you know, with the talent side, it’s always about, like, you know, finding that really great fit for companies, where they find an employee that works for them, and, you know, five years later that person is still with them and thriving. So, I think there’s a lot of things that are really, like, satisfying about the work that we do for myself and the team. And, I think one of the, like, best parts of the journey have been really building the team.

Vikram: Yeah, seeing companies grow from zero into going on that journey with them until they become a much larger company. You know, and since one of the businesses you do is talent and helping companies recruit and onboard talent from around the world, you probably are the best person to sort of give your thoughts on what’s happening with the talent landscape in Singapore. Because I know there’s, you know, the country’s going through different evolutions and clearly Singapore needs strong talent pool from around the world and that’s what makes it so attractive and makes it a great country, but also there’s challenges politically, I suppose. So, what’s happening in the talent recruitment scene in Singapore?

Erin:  So, I think what we’re seeing at the moment is, I think, a response that is necessary in terms of managing a really difficult economic time, where, you know, the country is saying, we need to put our people first in terms of employment opportunities and making sure that they have opportunity for higher paying jobs. In some cases, maybe, you know, like, more meaningful development opportunities to really be able to move up the ladder. I think it is the right move, while it is a difficult move for people that are in certain roles here as ex-pats, that might then find it more challenging to be able to work here with work visas, I think that it is, you know, the right response to the economic challenges that are result of COVID-19. I do think, however, that it is fair play. So, in our work, we do a lot of incorporation for companies that are based overseas that are setting up here and then there is someone that would be coming here first on ground to then set up the business. In our experience, we’re not seeing that there’s issues with getting employment passes for those people. So, if the businesses are coming here to do good work, to build companies that are going to provide employment opportunities for people in the market, the government is really open to that, in our experience. I think, where it will get more difficult is with industries where there is a high reliance on foreign workers for service, so, hospitality in particular, will be really hard hit with those changes in quota. It’ll be interesting to see how that unfolds, like, does it make people more efficient? Does it force, venues to pay more, to attract local talent into those roles? I’m not sure how that will unfold. It is a challenging time, for sure. And I think that there are things that are, I think, more challenging than like, the employment pass side of things, like, the recent announcement about the letters of consent, you know, those are typically for trailing talent, and so, spouses that will come over with someone who is, maybe here for a larger MNC role. Those are things that are just, you know, that completely going away, will have a big effect on that trailing talent that comes here. But I think that, you know, as the government is looking at how they need to manage the needs of the local and permanent resident population, they feel that it’s the right thing to do.

Vikram: Sure, I mean, it’s a difficult problem anywhere in the world and it seems like Singapore is adjusting to the market conditions and if the market conditions change in the next few years, then they will adapt to the market conditions. 

Erin: Agreed, and I think that’s one thing that is really good is, you know, this is what it’s happening now, but things could evolve in a couple of years. But one of the trends that we are seeing is with the changes in work passes and with the experience that people have had with work from home through COVID-19, we’re seeing that if the talent’s not in the market and they know that they’ll struggle to get the talent in the market on a work pass, then people are much more open to outsourcing it. So, to working with someone who’s based in a different country, which is great. So, I think it could end up just making businesses more efficient at the end.  

Vikram: Yeah, what are you seeing in terms of talent development in Singapore and balancing the local talent development versus bringing in foreign talent. I think, they’re clear there’s a push to up-skill the local talent through lots of different government initiatives. What’s your sense of where that’s going and what’s going well and what can be improved? 

Erin: So, there are areas where I think it’s really important for Singapore to focus on continuing to really build itself out, and I think the government’s doing all the right things in terms of focusing on technology, because I think that’s where Singapore stands to really have another, like, competitive edge in the region. So, in terms of talent development, there’s components like, you know, the government’s released a special tech employment pass opportunity for companies that are setting up here that are tech based, so that they can bring in their senior team members. And that I view is a move to be able to bring in really top tech talent, to train and develop Singaporeans so that they can then, you know, move up into those roles. I think that while that’s an industry that’s been here for quite a while, it is newer and it’s obviously one of the fastest changing. So, I think that kind of focusing on, you know, pushing up the level of professional that comes into the market so that they can then, you know, their skills and knowledge cascade down, is really where we’ll see things migrate to. I think that the government has done a great job of putting a lot of training opportunities out there, for maybe, the older generation, so that they can upskill and then come back into the workforce, you know, if they want to with the skills that they would need in order to be successful. 

Vikram: So, essentially the government is doing everything it can to adapt and help the local talent pool either re-skill or up-skill.  

Erin: Make sure they are bringing in the right mentors, the right level.  

Vikram: Have you noticed in Singapore, the talent pool tends to be a bit more interested in being an employee and working for a stable company versus being much more entrepreneurial and taking that risk to start a business? Have you seen that difference or do you think that that is not the case? 

Erin: I think that, that was the case, but I have seen during my time here, I’ve seen an evolution of you know, in 2007, I feel that it was more important that, you know, as a Singaporean, you went into an MNC, you worked for a bank, you worked for a larger group, you worked for, you know, a big consulting firm. But I feel that my timing was quite good, so, when I was setting up Accela, that became a time in about 2016, where it did become cool and okay to go to work for a startup. So, in terms of like, employee base, I see that, that’s really changed that, there’s a lot of openness towards going to work in a smaller company that’s more of a startup. These, I mean, I think that no matter what everyone craves stability, especially if you’re more in that middle manager or junior level. But at the same time, I feel that I’ve seen a lot of people step out and start up their own businesses, do their own things creatively. I think that the mindset really evolved in terms of what success looks like in different industries. And so, I think, you know, in 2007, it maybe wasn’t really socially acceptable to be a bartender or not that it wasn’t socially acceptable, but it was like, oh, you’re doing that because you can’t do anything else. But now it’s like, well, it’s really cool that you’re a bartender at a place that everyone wants to get into that’s on, you know, all the lists for best in the world. You are, you know, being interviewed by Straits Times. And so, I think that like, I think that that mindset has really evolved in the past decade. So, I think it was the case, but now I am seeing a big shift in that. 

Vikram: Which sounds like, it’s a really good direction because then the talent pool has the pie grows as more opportunities, as more jobs, there’s more accept accessibility to taking on risk and doing more things that are more creative.

Erin: Exactly, and I think also, at the end of the day, it is in almost every country, but SMEs are really what drive a country’s economy. And so, you know, people being more open to that just means that there will be, I think, more growth and more opportunities within SMEs, which is actually really exciting. It’s exciting for consumers too. 

Vikram: Yeah, it’s definitely. And your husband is also an entrepreneur and what’s that like? Having a family of two people who are doing their own businesses, is that challenging? Is that fun? 

Erin: It’s fun, is not fun, if you’re both in the beginning two years, which I think are like, the super hard yards at the same time, which we had about eight months of that. But then as he’s gone out onto his next entrepreneurial journey at the moment, I’m in a really stable point with Accela. And so, it doesn’t feel as stressful. So, it’s interesting to kind of see the way that the scales tip, right? So, now it’s a lot of, you know, conversation around his business and what he’s doing and how he grows it, and can you remember what you did at this point with Accela? So, it’s different. Our businesses are really different too, because his main focus is actually with a tech platform that’s specifically for F&B distributors. So, it’s different because I was building a services business, which is highly dependent upon people and the talent that you bring in and the service that they can deliver to the customers, and he is building a tech business, which is really dependent upon the product and sales. So, it’s kind of, it’s interesting. So, I think it gives us a peek into both worlds, which is nice. 

Vikram: Yeah, so, for anybody who wants to start a professional services business today, or a consulting business today, you know, how did they get the customers? Where do they get their customers from? Because there’s a lot of, sort of, tech disruptors entering the market that are sort of automating a lot of this processes, so, what’s your advice to anyone who’s getting into that business today? 

Erin: Network. So, I think we’ve even seen this at Accela. So, our biggest driver of growth is referrals and that all comes off the back of having spent a lot of time networking, building different networks, hiring people or partnering with people that have good networks that can really drive that referral engine. When you’re doing a professional services business, it’s just different than a tech business where you can really heavily invest in digital advertising and marketing. Because your cost to run the business is quite a bit lower because you don’t have to have people that are doing the consulting, if you have a tech platform that can really manage it for you. So, the cost goes up then, right, like, the cost to deliver the services a lot more when it’s a consultancy versus a tech, like, a platform built on technology. So, having that network, I think is really important. Because that’s really, what’s going to drive you is just, you know, trust. Trust in the person, trust in you as the consultant, trust in the team that you hire, or trust in whoever’s referring you over. So, networking would be a big component.

Vikram: Great advice. Networking. One word advice. Yeah, that’s fantastic. And if you had to give advice to anyone who’s thinking about moving to Singapore, either for work or to set up shop and build a company. Any tips, advices, you’d give them?

Erin: Yeah, I would say, do it. I mean, it’s the best place you can be in the region. You have a really supportive government, it’s a very stable place to be, it’s a great place to work regionally as well. In addition to just having, like, a lot of opportunities in the local market, even though it’s a smaller population than some of the other countries, I would say do it.  

Vikram: That’s good advice.

Erin: Yeah. 

Vikram: All right, thanks and all the best to you and Accela. 

Erin: Thank you very much. I enjoyed doing this today. 

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