Operational Scalability: Alan Coughlan Of Lansil Global On How To Set Up Systems, Procedures, And People To Prepare A Business To Scale
An Interview With Kieran Powell
I think the first is focusing on having a robust team. I believe the foundation of any scalable business is a team of talented and dedicated employees. It’s important to trust your team, delegate tasks, and always consider their feedback. Scalability cannot be a one-person effort.
In today’s fast-paced business environment, scalability is not just a buzzword; it’s a necessity. Entrepreneurs often get trapped in the daily grind of running their businesses, neglecting to put in place the systems, procedures, and people needed for sustainable growth. Without this foundation, companies hit bottlenecks, suffer inefficiencies, and face the risk of stalling or failing. This series aims to delve deep into the intricacies of operational scalability. How do you set up a framework that can adapt to growing customer demands? What are the crucial procedures that can streamline business operations? How do you build a team that can take on increasing responsibilities while maintaining a high standard of performance?
In this interview series, we are talking to CEOs, Founders, Operations Managers Consultants, Academics, Tech leaders & HR professionals, who share lessons from their experience about “How To Set Up Systems, Procedures, And People To Prepare A Business To Scale”. As part of this series, we had the pleasure of interviewing Alan Coughlan, CEO and Founder.
Lansil Global was founded by Cork man Alan Coughlan (who is originally from Cobh) in 2015. Starting his studies at Cork Institute of Technology, he ended up moving to Shanghai in China over 10 years ago to study for a Masters in International Business. After earning his qualification, and wanting to spend more time in China, he later progressed to teaching English. Fully intending on returning to Ireland, he first developed the concept for Lansil Global following a visit to a local bicycle factory in Shanghai. It was there that he witnessed the entire manufacturing process and realising e-commerce was booming in the country, he decided to purchase a consignment to resell back in Ireland.
Unfortunately for Alan, when back home, sales didn’t happen as quickly as he thought. No one would purchase the bikes off him when he tried to sell through third-party site, DoneDeal. As a result, he visited two physical bicycle shops, the first rejected his offer and the second bought all the bikes at once, making him a tidy profit. Revisiting his initial strategy, Alan decided that whilst his strengths didn’t lie in selling online, he could certainly supply people who could, whether it be via the internet or through physical stores.
Despite having zero experience with establishing a business (he had no plan, investment or network of contacts) at just 27 years of age, Alan moved back to China. He took a calculated risk and set up the Lansil Global website, beginning to make sales shortly after. His first official resale consisted of power banks from which he made a small chunk of profit. Success didn’t come easy to Alan. His dedication to building a global enterprise meant he worked day and night, often travelling to factories and staying in the lowest budget accommodation across Asia in order to make his dreams a reality. Some of the biggest challenges he faced along the way included language barriers (he quickly decided to learn Chinese and is now fluent) explaining to people what he was trying to achieve and learning how to invoice. Alan describes his journey as one big roller coaster and says he’s glad he made the leap in his twenties as he wouldn’t have the energy to do it all over again at this stage in his life. He spent at least five years travelling alone which he admits was quite isolating at a time when all his friends were out socialising and birthdays and anniversaries were being celebrated back home in Ireland. COVID was also a tough time for Alan and his business — during the course of the pandemic, he couldn’t travel and had to make a number of new hires. Some of his staff he had only met for 48 hours, meaning he didn’t really get to know them properly and so he was missing the chance to establish employee-employee trust.
By basing the company in China, Alan has been able to achieve unparalleled success through developing his end-to-end supply chain service. At just 36 years of age (he is 37 in April) Alan is a hugely successful entrepreneur who has managed to establish an end-to-end fulfilment service for some of the biggest e-commerce companies in the world.
Thank you so much for your time! I know that you are a very busy person. Our readers would love to “get to know you” a bit better. Can you tell us a bit about your ‘backstory’ and how you got started?
After receiving an undergraduate degree in business from Cork Institute of Technology in 2011, I moved to Shanghai, China to pursue a Master’s degree in International Business. Upon graduation, unsure as to what to do next, I spent some time teaching English in China
It was during a visit to a local bicycle factory in Shanghai that I first developed the concept for Lansil Global. At the time I was hugely impressed by the manufacturing process and swiftly realized that the e-commerce market globally offered great business potential. On a whim, I decided to purchase a consignment of bicycles to try to resell back in Ireland. Unfortunately (but fortunately in the end!) The quality of some of the bikes I eventually received was not good at all.
I asked the manufacturers to review my order and fix any issues. I later returned to Ireland and attempted to resell all of the bikes, which I found extremely difficult. It was then that I realized my strengths didn’t lie in selling, rather sourcing and supply.
Despite having no prior experience in establishing a business and lacking a plan, investment, or network, I took a risk and moved back to China at the age of 27. I set up Lansil Global’s website and began sourcing products for companies abroad while focusing on supplying ecommerce sellers, starting with power banks. Overcoming numerous challenges, including language barriers and learning the complexities of business operations, today the business has grown significantly with over 100 team members and warehouses in China and the USA.
It has been said that our mistakes can be our greatest teachers. Can you share a story about the funniest mistake you made when you were first starting? Can you tell us what lesson you learned from that?
One of my mistakes was not delegating enough responsibilities to team members. When I created the company, I found myself wearing multiple hats, as accountant, first point of contact, marketer, procurement person, and more. I was deeply involved in almost every aspect of the business and a good work-life balance was difficult to achieve.
As we expanded and became busier, it became essential to hire more staff and establish different departments. However, it was incredibly challenging for me to delegate tasks to these departments. For instance, trusting new staff to communicate with customers on my behalf and ensuring they provided accurate information was difficult. Handing over accounting duties to a dedicated team was also a significant hurdle, as I had been handling it myself.
Learning to trust my team to carry out tasks correctly was a steep learning curve for me. However, I realized that for the company to grow, I needed to let go and trust my team to carry out their duties as best as possible.
What do you think makes your company stand out? Can you share a story?
I think our growth has been primarily driven by word of mouth. We’ve developed a solid reputation for being trustworthy, where e-commerce businesses always know their investment is safe with us. This year, we’ve revamped the website and undertaken major rebranding with the aim of enhancing our online presence and driving growth.
You are a successful business leader. Which three character traits do you think were most instrumental to your success? Can you please share a story or example for each?
If I had to pick three, the first would be resilience. I don’t worry about small things or stress over issues and emerging market trends. I focus on my strengths and my company’s strengths. When making business decisions, I act decisively and move on if something doesn’t work out.
Empowering the staff is another characteristic, I let my staff learn by allowing them to make mistakes. This approach has fostered a culture of innovation and growth within the company. When a mistake happens, we review the case together and come up with a solution that can improve our process in the future. Last but not least, loyalty to clients is important. I’m loyal and always dedicated to serving my clients. Building long-term relationships with them has been key to our success.
Leadership often entails making difficult decisions or hard choices between two apparently good paths. Can you share a story with us about a hard decision or choice you had to make as a leader? I’m curious to understand how these challenges have shaped your leadership.
One significant decision was expanding to the USA. At the time, our company was growing, but we didn’t have enough capital to fund such heavy growth. I knew the decision carried risks but I went with it because I believed we had an ample opportunity to grow our business in the States. I flew to Nevada, a place I had never been before. Within a week, I set up a warehouse, hired staff, and flew back.
Today, our business in the USA is thriving, with our warehouses growing month by month and becoming one of the largest departments in our company. Looking back, it was a bold move, and it could have gone either way. I had the option to partner with someone locally instead of owning a warehouse, but I chose to keep it all in-house and manage it myself. It was a challenging decision, one that, luckily, paid off in the end.
Thank you for all that. Let’s now turn to the main focus of our discussion about Operational Scalability. In order to make sure that we are all on the same page, let’s begin with a simple definition. What does Operational Scalability mean to you?
Operational scalability is a broad term, but if I have to define it, I’d say it is the ability of a business to expand its operations efficiently to keep up with demand. It involves having the right systems, procedures, and resources in place to handle growth without compromising on service quality or performance. This means preparing to manage larger volumes of production, increased number of users or customers, and more complex logistical challenges, all while maintaining high standards.
Which types of business can most benefit from investing in Operational Scalability?
All types of industries can benefit from operational scalability. It’s a strategy to grow sustainably and make the business future-proof. However, I think some businesses can utilize it more than others. Particularly, technology, ecommerce, and other industries that follow the asset-light business model can significantly leverage operational scalability. Whether it’s a startup, medium-sized enterprise, or large corporation, businesses of any size can explore the myriad benefits of scaling their operations and plan for more growth in the future.
Why is it so important for a business to invest time, energy, and resources into Operational Scalability?
I believe it’s paramount for businesses to allocate resources, capital, and time into exploring how they can scale operations. Almost every company in the world aims to keep growing, and the key to doing so is to find the best way to scale efficiently. Operational scalability is about building a strong foundation that can support the business as it evolves and expands, ultimately leading to long-term success.
In contrast, what happens to a business that does not invest time, energy, and resources into Operational Scalability?
It depends on the business and market dynamics. Some companies may stay operating for years before having to deal with the consequences of not planning for the future. But in most cases, neglecting operational scalability can hinder the ability to grow when the opportunity arises.
This is particularly critical for fast-growing startups and medium-sized businesses with room for growth. It’s hard for them to adapt to sudden changes, and that’s why they should always be planning ahead so that they are ready for any growth opportunities.
Can you please share a story from your experience about how a business grew dramatically when they worked on their Operational Scalability?
My favorite business story is the rise of McDonald’s into an international fast food chain. By focusing on operational scalability, McDonald’s was able to standardize processes, ensure consistent quality, and rapidly expand its footprint across the globe. Their venture into real estate by owning the restaurants and leasing them has been nothing short of impressive, turning McDonald’s into one of the world’s largest real estate companies and providing a stable revenue stream that further fueled their growth and helped them scale.
Based on your experience and success, what are the “Five Most Important Things A Business Leader Should Do To Set Up Systems, Procedures, And People To Prepare A Business To Scale”?
I think the first is focusing on having a robust team. I believe the foundation of any scalable business is a team of talented and dedicated employees. It’s important to trust your team, delegate tasks, and always consider their feedback. Scalability cannot be a one-person effort.
Another would be offering a service that is needed globally. To scale effectively, a business must provide a service or product that has global demand. Companies should identify markets that are underserved internationally and try to meet the demand. Putting the client first is of huge importance. Building a rapport with customers is essential for sustainable growth. It’s crucial to have a customer feedback process in place to continuously improve the services based on client input. Maintaining quality is another, consistent quality is crucial for scalability. Whether a product or a service, investing in quality ensures the business can keep its high standards while scaling globally. Lastly, ensuring speed and efficiency is important. To handle increased demand, it’s essential to streamline operations for speed and efficiency. Technology may help, but it’s not always the answer as you cannot automate everything. Focusing on having effective departments and learning from the past can greatly help.
What are some common misconceptions businesses have about scaling? Can you please explain?
In my opinion, one of the most common misconceptions is the idea that lighting-fast scaling will always lead to sustainable growth. I’m referring more to the tech and ecommerce sector, where some companies have tried to scale and acquire market share before considering profitability.
This business model revolves around the idea of dominating the market by offering low prices, beating the competition, and then starting to raise the prices again. The reality is that scaling is not a one-time effort and cannot be done quickly; it often requires careful planning and gradual implementation.
How do you keep your team motivated during periods of rapid growth or change?
I keep the team motivated by recognizing their efforts and providing financial rewards. I also maintain regular communication with them and offer support when they encounter challenges.
Can you please give us your favorite “Life Lesson Quote”? Can you share how that was relevant to you in your life?
My favorite quote is “Borders, I have never seen one. But I have heard they exist in the minds of some people,” by Thor Heyerdahl, a Norwegian adventurer and ethnographer.
I encountered this quote about four years after I started Lansil Global. It resonated with me because of my mindset. I don’t see obstacles as impossible to overcome. Instead, I dive into new things without worrying about failing. This quote reminds me that limitations often exist only in our minds, and that by pushing beyond them, we can achieve remarkable things.
You are a person of great influence. If you could start a movement that would bring the most amount of good to the most amount of people, what would that be? You never know what your idea can trigger.
My influence is primarily on our employees. At Lansil Global, we focus on making a significant impact on our clients and their businesses. We are deeply committed and loyal to our clients, ensuring we provide them with the best possible service and support.
How can our readers further follow your work online?
You can follow my LinkedIn account where I’m planning to be more active online and share my perspective and insights on the industry.
Thank you so much for sharing these important insights. We wish you continued success and good health!
About The Interviewer: Kieran Powell is the EVP of Channel V Media a New York City Public Relations agency with a global network of agency partners in over 30 countries. Kieran has advised more than 150 companies in the Technology, B2B, Retail and Financial sectors. Prior to taking over business operations at Channel V Media, Kieran held roles at Merrill Lynch, PwC and Ernst & Young. Get in touch with Kieran to discuss how marketing and public relations can be leveraged to achieve concrete business goals.
