From Scaling Startups to Reinventing SMEs: An Honest Conversation with Malcolm Wong
Transitioning from high-growth startups and global corporations to a traditional small-to-medium enterprise (SME) is not a conventional career path. Malcolm Wong, with his rich experiences at BCG, Temasek and leading growth at 2 startups, took this leap into a traditional sanitary appliance business, carving out a unique path into scaling SMEs. In this conversation with Elena Chow, he shares the motivations, challenges, and lessons learned from his journey, offering insights for startup professionals considering a similar pivot.
Elena: What inspired your move from startups and large organizations to joining a traditional SME like Domaco?
“My career has always been about transformation and building businesses. I’m drawn to the potential of what a company could become rather than its current state”
Malcolm: My career has always been about transformation and building businesses. I’m drawn to the potential of what a company could become rather than its current state. In this business, I saw an exciting change and growth agenda. Working in an SME, I quickly realized, is like business building on steroids. Every decision can either propel or jeopardize the business because of resource and time constraints.
My background at Temasek involved creating platforms by integrating larger companies within sectors. Domaco is the first step in applying this model to high-performing traditional SMEs, where I have plans to eventually create a holding company for similar businesses under a new entity. This approach offers a deep dive into the home goods and sanitary products industry while eventually developing scalable models for SME engagement.
Elena: What challenges did you face in adapting to the SME environment, and how did you tackle them?
Malcolm: The challenges were multifaceted and I would like to highlight just a few:
Strategic Shift:
Helping the team transition from “running the business” to envisioning its growth potential was key. It took about six months to find the right rhythm. The focus was on realistic goals and empowering the team with tools and confidence to become changemakers.Operational Bottlenecks:
Without proper data systems, decision-making was difficult. For instance, most operations relied on WhatsApp, manual entries, and pen- and-paper processes. We introduced basic accounting tools and affordable SaaS solutions, achieving about 60% automation, with a target of 80% by March.
Managing 2,000 SKUs across multiple sales channels was another hurdle. A centralized Google Sheets database now tracks SKU-level performance, guiding pricing and inventory decisions. This simple, data-driven approach fostered a data-first mindset among the team.Limited resources
Limited resources demanded creative solutions. Establishing a cost-efficient marketing team in the Philippines allowed us to scale branding efforts while maintaining quality.
Elena: What strategies have you found effective for identifying growth opportunities in traditional industries?
Malcolm: There are several approaches:
Cross-Industry Learning: Drawing parallels from successful brands in other industries or countries. For example, Mr. DIY’s retail model could inspire innovations in home goods or sanitary ware.
Customer Experience: Walking the ground and reading customer reviews often reveal gaps. Identifying and addressing these service gaps is pivotal for evolution. Ultimately, we’re in the business of trust, and meeting customer expectations is non-negotiable.
Value Chain Exploration: Opportunities often exist within the value chain. While we’re primarily a B2C business, we allow space to experiment with B2B opportunities, which may become a focus in the future.
Blending Old and New: For example, leveraging small-format retail in residential neighborhoods while integrating digital marketing strategies has proven successful.
Elena: How important is the SME owner’s ambition, and how should professionals build partnerships with them?
“Growth must be a shared ambition; without it, transformation stalls”
Malcolm: The SME owner’s mindset is paramount. Growth must be a shared ambition; without it, transformation stalls. Owners often act as the heart of the business, which you can’t replace overnight. Aligning incentives is critical—compensation, whether salary or equity, must reflect shared goals.
Building trust is essential. This often starts with small projects, demonstrating value before assuming larger roles. Relationships evolve, and so do opportunities.
Elena: Compensation can differ drastically in SMEs. How did you navigate this?
“Initially I joined as a Consultant with a significantly lower monthly fee. This approach was deliberate; as it allowed both parties to test the waters.”
Malcolm: Initially I joined as a Consultant with a significantly lower monthly fee. This approach was deliberate; as it allowed both parties to test water with an initial project while we worked to find the right ownership and compensation structure to prepare Domaco for the next stage.
This approach to SME engagement is unique as it is like “holding period” which allowed me to assess the company deeper from within while co-creating with the founders a renewed vision; and at the same time demonstrating tangible outcomes.
Elena: What are key differences between startups and SMEs that professionals should consider?
“Startups are about going from 0 to 1 and 10 to 100, while SMEs focus on moving from 10 to 20. Changes in SMEs must be gradual and timed”
Malcolm: Startups are about going from 0 to 1 and 10-100, while SMEs focus on moving from 10 to 20. Changes in SMEs must be gradual and timed, with a greater emphasis on existing relationships and systems.
One of the biggest lessons I’ve learned is that SMEs require both the brain and the heart to succeed. As I often say, “We need the brain but cannot do without the heart.”
While strategic thinking and data-driven approaches are critical, understanding the human side of the business—its people, culture, and deeply rooted practices—is equally important. Emotional intelligence is crucial, as change management here often involves coaching and aligning with the existing team rather than simply replacing them.
Elena: What advice would you give to startup professionals contemplating a move to SMEs?
Malcolm: Transitioning to an SME requires a shift in mindset and approach. Here’s what I’d advise:
Do Your Research and Network: Identify industries that align with your interests and skill set. Talking to SME owners is invaluable for understanding their challenges and goals.
Start Small and Build Trust: Begin with a project rather than a full-time role. Demonstrate your value through actionable results and be prepared to invest time in building relationships.
Be Patient: Trust doesn’t form overnight. Focus on contributing to the business without expecting immediate rewards.
Be Adaptable and Self-Aware: SMEs often lack the structured roles typical of startups, so clarity about your strengths and how you can contribute is vital. But also be open to wearing multiple hats.
Balance Brain and Heart: As I often say, “Need the brain but cannot do without the heart.” Strategy and data-driven decisions matter, but so do emotional intelligence and understanding the people behind the business.
This pivot can be incredibly rewarding, but success depends on aligning with the owner’s vision, demonstrating your impact, and building trust incrementally.
Malcolm Wong’s journey is a testament to the fact that transitioning from startups to SMEs is not just about changing workplaces—it’s about embracing new challenges, mindsets, and ways of doing business. For professionals seeking meaningful impact beyond the startup ecosystem, SMEs offer fertile ground for growth and transformation.