LESSONSE N FROMFR M A 30 SMARTM AR T WAYS WAY SUMMITUMMIT MEDIA TURNS 20 162-YEAR- OLD BRAND TOO SPEND P50,00P50,000

BE YOUR OWN BOSS I ENTREPRENEUR.COM.PH JUNE20 15 I PHILIPPINES

T H E M O N E Y I S S U E

NENE TAMAYO

O F N E N E

P R I M E F O O D S

VOLUME 15 NUMBER 160 REALIT Y TV CELEBRITY NENE TAMAYO WON AND LOST A MILLION PESOS. NOW MICRO-LOANS ARE HELPING HER COME BACK IN A BIG WAY.

CONTENTS JUNE 2015

FEATURES 50 THE P50,000 QUESTION 30 smart ways for entrepreneurs to spend a windfall

58 SMALL LOANS, BIG DREAMS Thanks to small, accessible, no- collateral loans, small business owners are getting a leg up to start and grow their business

68 WHAT MAKES A GREAT BRAND? Learn the secrets of staying power from a 162-year-old company IN EVERY ISSUE 08 STAFF BOX 10 EDITOR’S NOTE 11 FEEDBACK 86 COMPANY DIRECTORY 87 FRANCHISE OPPORTUNITIES 88 EVENTS

G A L I ON THE COVER R A Nene Tamayo OF NENE PRIME FOODS D Y R STYLING BY Belle Camarsi I A HAIR AND MAKEUP BY Tricia Miranda D Y B O T O H P

2 JUNE 2015 Entrepreneur Philippines

CONTENTS JUNE 2015

BRIEFING 22 RAIN ING CATS START IT UP 1 5 ICY TREATMENT AND DOGS 31 PLAYING IN Cold wraps are a cool THE BIG LEAGUES way to heal Pet cafés find a ready market among animal lovers Take the leap from stall to full-scale restaurant 1 6 DIGITAL GIFTS

Social gifting app lets 3 4 RAISING THE BAR users treat their friends Philo Chua of Theo and Philo from a distance on exploring a new niche in chocolate-making 1 8 PAWN STAR

PawnHero now lets 3 5 SWEET TALK Pinoys pawn online Jertie’s Kitchen finds its niche 1 9 SUPPORT THE SELF-EMPLOYED 3 6 HAPPY THRIFT Horsepower.ph helps MiCab turns to advertising freelancers and ’treps avail to keep taxi fees of insurance, healthcare “Cebu-friendly”

2 1 NUMBERS AND INSIGHTS D O I N G Microfinance is mighty B U S I NE SS 2 4 SPOTTED 4 0 IN A WOR LD Soon, entrepreneurship OF CONVENIENCE and financial literacy How to beat the competition programs in all levels in the big marts of education nationwide 4 3 IN YOUR CUSTOMER’S MONEY 3 8 COMEBACKS SHOES 2 5 BITIN G AND MAKEOVERS To serve them better, THE BULLET Make your old brand get to know them first Why buy when you good as new can lease? TECH 2 8 CASHIN G 4 4 BLOG BOOSTERS IN THROUGH Beef up your business’ blog LINKEDIN with rich media content How to use the N professional network 4 6 DIGITAL O I T to find investors ALLOWANCES I D E VMoney normalizes P 2 9 HOME SWEET X paperless transactions for E HOME G employers and employees N I Make sure you get the best T T I terms when shopping for a 47 WATCH N K home loan AND LEARN F O How to make online Y S 3 0 KNOW YOUR E seminars work for you T R CUSTOMER U O Assess your customers 4 8 TECH BITS C D before letting them The Philippines has N A buy on credit smartphone fever E D N E U Q A I D I E GET BUSINESS UPDATES ONLINE JOIN THE DIALOGUE! H Y Start your business week right—just go Check out ENTREPRENEUR Philippines on Facebook at www.facebook.com/ B S O to www.entrepreneur.com.ph and sign up for entrepreneurmagazine.ph for regular updates on business and entrepreneurship. T O our weekly newsletter. You may also follow us on Twitter at twitter.com/ENTREPRENEURph H P

4 JUNE 2015 Entrepreneur Philippines

CONTENTS JUNE 2015

F R A N C H I S E 72 SEE YOU AT THE EXPO Make the most of your visit to a franchise exposition

74 FASHION FORWARD Bellyaching about baduy maternity wear births fashion brand

75 INTERNATIONAL APPEAL This regional favorite just got global

76 BEYOND COOKIE-CUTTER Mrs. Fields breaks from its old-fashioned mold to tap a younger market

77 LESSONS LEARNED Former hair salon franchisee proves her mettle as a franchisor

78 WITH FLYING COLORS IT professional finds passion and profit in educational center franchise R E W A R D S 79 WALANG HIYA! Proudly dishing out Filipino fare

81 PRINC IPLE OVER PROFIT These books will help you reexamine your life goals

82 COLOR OUTSIDE THE LINES Why wear black when you can wear brights?

84 SPACE CRAFT I N S P I R A T I O N O D To put together the 92 PEOPLE A N perfect work space, WILL PROFIT O D find pieces that provide Carmaela B. Alcantara L A functionality and of Crystal Seas B N A inspiration—or both H T A N O J WANT TO SUBSCRIBE TO ENTREPRENEUR PHILIPPINES MONTHLY? Y B Go to any of the following: 01 Our website, www.entrepreneur.com.ph, and click on “the magazine” (print and digital editions) 02 The Summit Newsstand at O T www.summitnewsstand.com.ph/entrepreneur (print and digital editions) 03 The App Store (download the iPad app) 04 Zinio at www.zinio.com (digital edition O H for iPad, Mac, Android, and desktop) Or, if you prefer to talk to a live person, call our Subscriptions Group at (02) 451-8888, local 1086 or 1087. P

6 JUNE 2015 Entrepreneur Philippines

ABOUT OUR CONTRIBUTORS

EDITOR IN CHIEF Kristine Fonacier DAIRY DARILAG MANAGING EDITOR Maricris C. Carlos ART DIRECTOR Frantz C. Salvador PHOTOGRAPHER ASSOCIATE EDITOR Johanna D. Poblete FEATURES EDITOR Victoria Vizcarra EDITORIAL ASSISTANT Toni Antiporda

Dairy left his marketing job to become CONTRIBUTING WRITERS Juju Z. Baluyot, Rienzie Biolena, KC Calpo, Belle Camarsi, Cathie Carpio, a photographer more than five years Dulce Castillo-Morales, Zar Castro, Philo Chua, Joe Esguerra, Mikael Angelo Francisco, Michelle Goodman, Ieth Inolino, Gabriel A. Magno, Clifford Olanday, Henry C. Ong, Babe Pañares, ago. He’s done cover photography for Charlene Pe, Bernadette Reyes, Josephine Roque, J ennee Grace Rubrico, Claude Tayag, several magazines, including Men’s Lolita Villa, Denise Lee Yohn CONTRIBUTING PHOTOGRAPHERS Heidi Aquende, Jonathan Baldonado, Health Philippines, Good Housekeeping Vincent Coscolluela, Dairy Darilag

Philippines, Top Gear Philippines, and CONTRIBUTING ILLUSTRATORS Jaykee Evangelista, Juan Carlo Maala

now, ENTREPRENEUR Philippines. As seen CONTRIBUTING STYLIST /MAKEUP ARTISTS Belle Camarsi, Vida Non Jaucian, Tricia Miranda in this issue’s cover, Dairy believes that a relaxed yet dynamic environment—and SUMMIT PUBLISHING CO. INC. PRESIDENT AND COO Lisa Gokongwei-Cheng great lighting!—are critical to produce PUBLISHER Edna T. Belleza DEPUTY GROUP PUBLISHER Ichi Apostol-Acosta VP FOR OPERATIONS Hansel Dela Cruz EDITORIAL DIRECTORS Myrza Sison, Jo-ann Maglipon photographs that resonate with readers. ASSOCIATE PUBLISHER Dave P. Khodr IS AND ADMIN DIRECTOR Mags E. Castro ADMIN SERVICES MANAGER Whilma M. Lopez EXECUTIVE ASSISTANT Rosalie Arteta ADMIN ASSISTANTS Marlyn Miguel, Michiel Lumabi

WEB WEB MANAGING EDITOR Jaime Humarang Jr. DIGITAL PUBLISHER Jamie Lyn Arcega IETH INOLINO EDITORIAL ASSISTANTS Angelica Dantes, Mary Jane Dinglasan

WR IT ER PRODUCTION PRODUCTION MANAGER Elizabeth Rellis ASSISTANT PRODUCTION MANAGER Jane M. Puno PRODUCTION COORDINATOREric Cagoco ADVERTISING TRAFFIC SUPERVISOR Eliziel Del Rio Ieth is not only a writer and stylist, ADVERTISING TRAFFIC ASSISTANT Arthur Villaflor GRAPHIC ARTIST Dindo Rollan but also an entrepreneur developing EVENTS ASSISTANT MARKETING MANAGER Roberlin Rubina Jr. A Great Big World, a travel agency PROJECT OFFICERS Rica Gae Lozada, Dorothy Joy Bulan SENIOR MARKETING ASSOCIATES JC Brion, Juan Paolo Maningat, which she established a year ago Katrina Alexie San Pascual, Mitz Jairus Baldoza,Valine Aquino, Elizabeth Acosta with her cousin, Brendel Tatoy. JUNIOR MARKETING ASSOCIATES Katrina Camille Peña, Rachelle Anne Castillo, Neil Emerson De Guzman, Charmie Abarquez, Roi Kevin Palma, Kaye Calleja Writing about two franchise brands TRADE MARKETING for this issue reminded Ieth that SR. TRADE MARKETING ASSOCIATE, OIC Jamie Islo there is no shortcut to success. TRADE MARKETING ASSISTANTS Hannah Roque, Lalaine Taguiam, Joylyn Guinto TRADE MARKETING PROJECT COORDINATORWendl Magsino, Raven Dorado

CREATIVE SOLUTIONS EDITOR IN CHIEF Dondi Limgenco ACTING MANAGING EDITOR Aiza Santos ART DIRECTOR Jaykee Evangelista ASSOCIATE ART DIRECTOR Juan Carlo Maala

ADVERTISING GROUP ADVERTISING DIRECTOR Florence Bienvenido ADVERTISING DIRECTOR-KEY ACCOUNTS GROUP Regie Uy ADVERTISING MANAGER Maiza G. Mueco KEY ACCOUNTS SPECIALISTS Joey G. Anciano, Joyce T. Argana, Junn T. de las Alas, Alex S. Revelar, Annie S. Santos, Suzette G. Tolentino SR. ACCOUNT MANAGERS Ginger Taduran, Bem Caharian, JJ Dinglasan JR. ACCOUNT MANAGERS Ivan Ainza, Melinda Kitane-San Diego, MJ Pineda SENIOR DIGITAL ACCOUNT MANAGER: Luke Reyes ADVERTISING CATEGORY AD ASSISTANT : Lorena Santiago-Marfil ADVERTISING EXECUTIVE ASSISTANT Rita M. Barbacena KEY ACCOUNTS ASSISTANTS Chinggay M. Cabit, Onnie Y. Del Mundo, Maricel S. Adaniel, Dianne S. Suegay

CIRCULATION DEPUTY NATIONAL CIRCULATION MANAGER Glenda Gil CIRCULATION MANAGER-GMA Noreen Sescon-Peligro ASST. MANAGER FOR PRINT AND ONLINE DISTRIBUTION Ulyssis Javier KEY ACCOUNTS GROUP HEAD Vivian Manahan, Charlotte Barlis SUBSCRIPTION GROUP HEAD Carla Soriano KEY ACCOUNTS SPECIALISTS Jennifer Tolentino, Alfredo Toledo Jr., Harold William Rey, Rejie Paquibot, Marjorie Yu NEWSSTAND SUPERVISOR Joel Valdez DISTRIBUTOR SPECIALISTS Kim Sarmiento, Roberto Revilla, Elaine Einosas, Eric Ferdinand Gasatan, Aeron Nolasco, Bee Datinguinoo JUNIOR SALES REPRESENTATIVES John Lakhi Celso, May Ann Ayuste, Brylle G onzales, Melrose Tamboong, Julie Dunn Bantan JUAN CARLO MAALA SALES COORDINATOR Jennyfer Marcelo DISTRIBUTOR ANALYST Christian Austria ILLUSTRATOR ONLINE DISTRIBUTION ASSISTANT Mark Jocell Manio SUBSCRIPTION COORDINATORSNathaniel Embiado, Ariel Rivera, Ma. Glenda Uchi, Annalyn Arambulo SUBSCRIPTION TELEMARKETER Jon Maynard Ortiz Carlo is an associate art director for CIRCULATION ADMIN SUPERVISOR Marie Lenn Reyes the Creative Solutions team of Summit CIRCULATION ADMIN ASSISTANTS Elnie Marie Delos Santos, Lizel Tumali Media’s men’s titles. When he’s not CLIFFORD OLANDAY FOR BACK ISSUES CALL Visual Mix and Booksale (02) 815-2076; (02) 824-0959 using his ad agency background to LECSON (02) 525-1990 local 12 WRI TE R Subscribe online at www.summitmedia.com.ph/ create advertorials, he illustrates subscribe/entrepreneur.php FOR DEALERSHIP /DISTRIBUTORSHIP INQUIRY Circulation Department for Men’s Health Philippines, at (632) 451-8888 or 637-2200. Look for Joel Valdez for Metro Manila (local 10 94). For provincial distribution, FHM Philippines, Yummy , and Clifford is the fashion features editor call (063) 451-8888 local 1097 to 1099. For international distribution, call (632) 451-8888 local 1033 ENTREPRENEUR Philippines. He also of Esquire Philippines, and regularly ENTREPRENEUR MEDIA INC. 2445 McCabe Way, Irvine, California, USA 92614 CHAIRMAN /CEO Peter Shea PRESIDENT Ryan Shea EDITOR IN CHIEF Amy Cosper enjoys drawing and designing things contributes to ENTREPRENEUR Philippines. that bring him back to his childhood— For this month’s Shiny Objects, Clifford comic books, cartoons, and just about focused on fashioning the ideal anything from the nineties. Look workspace. “We spend a lot of time in for his illustrations in our story on our office, maybe even more than our leasing. “I was able to play around home, so it’s important that objects that with flat vectors and different color surround us for nine or more hours are Talk to us. If you have inquiries, comments, and concerns, email us at combinations to make it more fun and pieces that help us in work, and more [email protected]. Your feedback will help us serve you better. lively,” he says. importantly, life,” he says. www.entrepreneur.com.ph/themagazine

8 JUNE 2015 Entrepreneur Philippines

F RO M T HE STAFF EDITOR’S NOTE HOW DOES #passionON DRIVE YOU? #passionON MARICRIS CARLOS MANAGING EDITOR “I’ve always felt that I make more sense if I writ e e hardly ever talk about ourselves, but outside the U.S. Passion was always built things down rather than if I speak. Which is why this time I’d like to make an exception. into our DNA. I’m here, in this job. It’s not t he easiest thing facing W Our mother company, Summit Media, It doesn’t end with us. If anything, off with a blank screen. But needs must. And it’s turns 20 years old this month, and it’s a our entire reason for being is to be always a great feeling when I hit Apple+S knowing I landmark worth talking about. a partner in our readers’ passions. beat that screen senseless.” When Summit launched in 1995, there ENTREPRENEUR Philippines and all its weren’t many other magazines available sister publications have always aimed on the racks, and in some ways it seemed to encourage and enable our readers like a foolhardy business venture. Even to pursue and enjoy whatever it is that back then, as young writers entering the they love—in our case, it’s the passion, workforce, we were already being told not just for business, but for knowledge, that Filipinos just weren’t readers, and innovation, independence. that those who were readers weren’t going Twenty years later, Summit is still to spend on something so frivolous as a very much around, as is Preview—as we FRANTZ SALVADOR ART DIRECTOR monthly magazine. are, too—which is a brilliant answer to “Whether I’m designing a magazine, doing illustrations, or even just doodling, it’s my love for But Lisa Gokongwei and her team the question of whether or not it was art that pushes me to creat e.” nonetheless launched the company and a business worth pursuing in the first its first (and only) title, Preview changing place. As with all journeys, our family the publishing landscape—and our lives of publications has weathered many ups with it. Of course it all boiled down to and downs, and we’ve all had to adapt and a business decision, but from the very grow with the times, and embrace the new beginning, there was passion involved in platforms that have opened up for us to be the equation. And passion, by definition, able to communicate better with all of you. runs deep: Our passion was not only to In the course of our work, we’ve met JOHANNA POBLETE ASSOCIATE EDITOR publish magazines; the passion was for our fair share of people whose businesses “It must be love, or madness, maybe both, to work creating intelligent, edifying, potentially started from their own passions, and while through hunger and sleep deprivation, just to beat life-changing content that would be worth passion isn’t the only thing, it certainly nother deadline.” our readers’ money. does count for a lot. Passion is what can ENTREPRENEUR Philippines was give you the courage to keep going when launched five years later, in November everyone is saying you can’t possibly make 2000. It was much the same passion that it, and passion is what can keep you true drove the bold decision to bring in what to your mission when the going gets tough. was then only the third edition of the title It’s what makes things possible.

VICTORIA VIZCARRA FEATURES DITOR “Passion is what makes the long commutes and even longer hours not just bearable, but enjoyable. They say misery loves company, but it’s really the K ISTINE FONACIER other way around: My passion thrives when I’m around people I can share it with and, like me, are KRISTINE FONACIER SUMMITMEDIA CO M PH . @ . . doing what they love.”

T RMA AZIN . ENT R R

TONI ANTIPORDA EDITORIAL ASSISTANT “Passion fuels me to keep on moving forward no matter how tired, uninspired, or jaded I become. As young as I am, energy, inspiration, and aspiration can sometimes still be in short supply—it’s really passion for the things I do that keeps me going.”

1 UNE 2015 Entrepreneur Philippines FEEDBACK

SELLING, AND GAMING, ONLINE IMPACT HUB OPENS A new incubator, innovation hub, and community center, Impact Hub Manila (impacthub.ph), opens its doors this month. “It’s not just a co- working space, it’s not just where people work, but also where they get inspired and grow,” says co- founder Liza Andrea Kuster of their headquarters at Green Sun Building along Don Chino Roces Ave. in Makati City. ’Treps interested in connecting with over 11,000 members in 62 other cities worldwide are welcome to join. Among the benefits would be use of the space, mentorship, and event participation. Last March, Impact Hub mounted the three-day Collaborative Carnival, Hi, I have an online shop selling band shirts and gathering entrepreneurs and CDs. I would like to ask: How can I make it different from marketing experts. other shops selling the same thing? Should we make our own products already? How do we borrow money if I am a first-time online shop owner? God bless.

Lourdes Pulido via Facebook

“Hi sir! Any tips on operating an e-games [establishment]? Slot machines or bingo? I want to start in our province. Dominic via Facebook

>>Lourdes, your products have very little or no will be best to first invest your capital to do an differentiation from those of other sellers. As initial product to prove to any lender that your WELL MET! N such, in the online game, you can differentiate in product development process leads to market Y NTREPRENEUR R Business advisor and N terms of product delivery. The fear of many online acceptability, and therefore sales or revenues that E Philippines’ financial columnist H buyers is: Will the product arrive as promised and can be used to repay the debt. F Henry Ong had the opportunity to as shown or claimed in the pictures? You have >> Dominic, one must get a franchise from meet Amy Cosper, editor-in-chief of to find a way to assure the buyer that as soon as NTREPRENEUR T the franchisor to keep your venture legal. As a United States, at the R the payment is made to you, you are able to send U franchisee, there will be manuals and operating Global Entrepreneurship Congress notice on the status of delivery. procedures provided in exchange for franchise fees. in Milan. “She likes ENTREPRENEUR O Making your own product or design requires T Philippines,” a beaming Ong a thorough knowledge of what the customer is H relates. Thanks, Amy! P looking for in terms of product features, plus Dr. Alejandrino “Andy” Ferreria S what are the comparable competitive products or E is the CEO of ACE-ME and one designs available in the market. Your design must A of the Gurus of the Master in I M give a distinction sought after by the customer Y Entrepreneurship Program CORRECTION T that no one is giving. It will be difficult to borrow T at the Ateneo Graduate School Mida Foods was incorrectly spelled E money to fund your product development. It of Business. as ‘Mica Foods’ in our May tech M O story “Smart Squad.” We would R F also like to credit Jan Edrosolan N O I for the hairstyling of Reese T A WANT YOUR BUSINESS FEATURED IN ENTREPRENEUR? Fernandez-Ruiz, and Vida Non R T Drop us a line at [email protected] , and tell us about your business. Jaucian for the hair and makeup of S U You may also send us your company profile. We’ll keep you in mind for future st ories. Natasha Bautista in our May issue. L L I

www.entrepreneur.com.ph/themagazine JUNE 2015 o Rightfor Your Rest

When it com es to As ian Whether you’re planning to open After all, Chinese cuisine is known a vo r up a new Chinese food joint or just worldwide for its savory delights. rec ipes, fl looking to introduce an oriental mix Use Knorr Chicken Powder to can de fine into your tried and tested menu, achieve that iconic Chinese taste you r bus iness’ your customers will be looking that customers will keep coming success for flavors that are authentic. back for.

Preparation time: 30 minutes Total servings: 5 ClaypotC aypot CrabCr Rice Cooking time: 45 minutes

Ingredients For the crab: 30g Dried scallops, soaked in 5g White pepper 2 pcs. Crab, 300-400g per piece hot water 700ml Water 60ml Rice wine 200g Crab meat, white lumps 45ml sesame oil 5g Knorr Chicken Powder with dark meat 1 pc. Circular piece of 3g Black pepper, crushed 250g Sticky rice grains, soaked lotus leaves in water 1 pc. Marinated crab For the rice: 300g Dinorado rice 30g Leeks or scallions, sliced 100ml Soya oil 20g Knorr Chicken powder thinly across the grain 30g Ginger, finely minced 20g Knorr Shrimp powder Procedure For the crab: making sure that the grains are into the pot. Fold the excess part Break the crab into 7 serving glazed with the oil of the lotus leaves over the rice and pieces (including the top shell) Add the dinorado rice grains, also cover with pot with it’s lid or cling Drizzle with rice wine making sure that they are glazed film. Steam in the oven for about 20 Season with Knorr Chicken Powder with the oil while stirring minutes or when rice is almost done and crushed black pepper. Set aside Add the Knorr Chicken Powder cooking. in the chiller until ready to use. and Shrimp Powder When the rice is almost done, take Season with white pepper powder the pot out from the steamer and For the rice: Add water and sesame oil. Let arrange the marinated In a sauce pot, heat oil the liquid come to a boil and turn it crab over the rice. Drizzle with Lightly sweat the ginger down to simmer. Taste the broth an d sesame oil. Return the pot into the When all is done, sprinkle sliced Add the dried scallops add more seasoning if needed. steamer and cook for an additional leeks over the crab and cover once and crab meat Line a large Chinese claypot with 10 minutes. again. Serve immediately. Add the sticky rice, stir well, the lotus leaves. Pour in the rice rice ADVERTISINGFEATURE

Preparation time: 20 minutes Total yield/ servings: 8 Hainanese Chicken Cooking time: 45 minutes

Ingredients Hainanese Chicken: 200g Ginger 5g Leeks 1000g Whole chicken 5g Turmeric 2g Garlic 30ml Chinese rice wine 100g Leeks, sliced into segments (Shaoxing wine) 30g Rock sugar Ginger sauce: 50g Ginger (medium chunks) 60g Knorr Chicken Powder 150ml Vegetable oil 5g Shallots, chopped 90g Ginger, grated or chopped 5g Garlic, chopped Hainanese rice: very finely 20g Knorr Chicken Powder 480g Jasmine rice, long grain 10g Spring onions 800ml Chicken stock 2ml Sesame oil Poaching liquid: (poaching liquid) 100ml Bango Kecap Manis 3000ml Water 20g Ginger, sliced 100g Chili garlic sauce, prepared Procedure Hainanese chicken: it inside for 30 minutes. Then remove it in a pot then pour in stock, ginger, Rub the inside of the chicken with the chicken from the pot and drain well garlic and leeks. Cook for 20 to 30 rice wine. Place ginger, shallots and of any traces of liquid and blood. Bring minutes or until liquid is gone but still garlic inside the chicken and season back the stock to boil again then turn inside and outside parts with Knorr slightly moist. Chicken powder. Secure the stuffi ng it off. Place the chciken back inside the using a stick by stitching its outer pot and let it cook slowly for another Ginger sauce: opening skin. 30 to 40 minutes. Heat your oil in a small, shallow pan. Remove the chicken from the pot. When hot enough, turn off the fire Poaching liquid: Drizzle it with sesame oil then let it then place the ginger, Knorr Chicken In a pot big and deep enough to cool by submerging it in ice water Powder, and spring onions in the same submerge the whole chicken, pour Strain the chicken stock and set aside pan. Drizle with a little sesame oil. water, ginger, turmeric, leeks, Knorr Chicken Powder and rock sugar. Bring for the Hainanese rice. Serve this with Bango Kecap Manis to a boil. Let it boil for five minutes. and chili garlic sauce. The sliced Turn off the heat, then submerge the Hainanese rice: chicken can be serve cold or hot. whole chicken inside and cover. Leave Wash the rice twice with water. Place

Seafood in Black Bean Preparation time: 45 minutes Total yield/ servings: 5 Butter Sauce Cooking time: 15 minutes

Ingredients Preparation: 30g Garlic 250g Prepared squid 760ml Soya oil 5 pcs. Whole dried chilies 300g Prepared prawns 250g Squid, sliced into panels 60g Unsalted butter 10g Corn starch diluted in and scored 30g Black beans, drained, 60ml water 250ml Prawns, head on, shell on, washed and mashed 15ml Sesame oil deveined; flash fried 45ml Knorr Oyster Sauce 10g Spring onions, 60ml Rice wine 500g Manila clams chopped finely 5g Knorr Chicken Powder 60ml Rice wine 10g Coriander, trimmed 125ml Water from stem To Cook: 2 pcs. Sea cucumber, blanched 60ml Soya or canola oil in ginger water and 30g Ginger sliced horizontally Procedure Preparation: To cook: prawns. Toss gently with the sauce. Heat oil in wok, until it reaches 350F. Sweat ginger, garlic and whole dried Adjust seasoning to taste. Season the squid and prawns chilies until fragrant Add the corn starch if needed, to separately with rice wine and Knorr Add unsalted butter, black beans thicken the sauce. Chicken Powder. and Knorr Oyster Sauce Add sesame oil to make the dish Flash fry the seafood separately Add the clams more fragrant. in hot oil. Strain and set aside over Add the rice wine and water. Add the spring onions paper towels until ready to use. Simmer until the clams open up Transfersfer to a serving plate and Add the sea cucumber, squid and garnishh with fresh coriander leaves.

Let authentic Chinese flavors burst in your dishes with every bite! Knorr Chicken Powder is the secret to unlocking that iconic flavor. Give your savory specialtiess a classic oriental twist.

GET MORE RECIPES FOR YOUR RESTAURANT AT WWW.UFS.COM

06/2015

IDEAS!

#FOUND

Cryo+ packs are reusable up to five IDEAS times after initial use—albeit as regular refrigerate-as-needed gel packs. For their thesis project, Mich Ilustre and her team originally set out to develop a tablet that could instantly cool drinks. But after realizing that cold packs are more viable in the market, they came up with Cryo+ instead. “We ICY TREATMENT may have failed to actualize our initial concept, however, it paved the way for Cold wraps are a cool way to heal us to come up with other applications for it,” she says. They plan to make neoprene sleeves hen it comes to muscle injuries, Unlike regular cold packs, Cryo+ doesn’t to secure the gel pack on other parts of pain relief in 10 seconds rather require refrigeration for its initial use. By the body. Packs with cute, eye-catching than 10 minutes can make all squeezing and shaking the pack, the water prints are also in the works. the difference. That’s why a group of inside mixes with the powdered formulation, The Cryo+ Starter Kit, which comes BS Management of Applied Chemistry and turns into a cold, blue gel-like substance. with one neoprene sleeve and one graduates from Ateneo de Manila It also comes with a neoprene sleeve that instant cold pack, costs P850, while University created Cryo+ —instant cold helps keep the pack in place around the the refill set, which has two instant wraps that soothe injured muscles. target area—in this case, the user’s knee. cold packs, retails for P650. —Juju Z. Baluyot

! E U R E K A i n d s b e h e g u y T h i t i a l l y y o + i n a C r m a k e t e d t o r i n k s w a n o o l s d t h a t c a l l y d u c t v e n t u p r o , b u t e t a n t l y m o r e i n s f o r a t o p t e d n s t a n a b l e i a r k e t o o t h e m k t o s l d p a c s. c o u s c l e s o r e m

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www.entrepreneur.com.ph/themagazine JUNE 2 15 IDEAS DIGITAL GIFTS

Social gifting app lets users treat their friends from a distance

there are now around 1.69 billion active social accounts worldwide. Gregor Arn knew this— and it’s why he’s combined the two in gift- remittance and instant-messaging app Cheers. Though instant messaging and money transfers seem like an odd pairing, Arn thought otherwise. With Cheers, users GIFTED can send their friends virtual gifts In 2013, Gregor that come with the items’ real-life Arn was in a coffee monetary amount. “Sometimes, shop when he asked it takes a few bucks to make a himself: What would social statement or a gesture count,” he networks be like if you could says. “It’s about giving someone a actually pay for someone else’s drink halfway treat, showing appreciation that is across the world? tangible and not just a few hurried words texted while catching a taxi.” The feature that separates the messaging app from the competition is its e-wallet, called the Cheers Wallet. Users can load money onto their e-wallet to be able to send gifts. Upon sending an item, money is taken from their e-wallet and transferred to the recipient’s. And just like with real cash, the receiver can withdraw the money anytime. Arn refers to this as social gifting. “A social gift is like an instant gesture—something that has real value,” he explains. “Everyone can send a message or a smiley, but sending a gift shows that you really care.” There are various gifts that can be bought with Cheers, including drinks and snacks. “Imagine your 10 good friends all send you a beer on your birthday. [That’s] pretty neat!” says Arn. He claims that the Che ers Wallet is likely the most versatile of its kind be cause it can be loaded by various country-specific methods. In the Philippines, Cheers accepts top-up options such as GCash, over-the- counter deposits, and bank transfers. He reveals that users will also be able to pay through credit cards soon. Though technically a foreign product—its main office is in Singapore—Cheers was first developed and launched in the Philippines. “Filipinos are tech-savvy and are great in giving feedback, helping make the product exting today has become bigger than better,” says Arn. ever—and it’s showing no signs of The app is available in almost all countries, T diminishing. Messaging apps exploded although the Cheers Wallet feature is only D N to twice their volume in 2013, even as low- for Philippine-based users. But Arn assures A L that the e-wallet will soon become available O cost payment and remittance services were N outside the country, as they want to become R just starting to disrupt traditional business A “a social platform with a global reach Y models. More people are also getting hooked B on social apps: According to We are Social’s connecting users from various countries and N I O cultures.” —Juju Z. Baluyot T Digital, Social, and Mobile in 2015 report, A R T S U L I L

16 JUNE 2015 Entrepreneur Philippines

IDEAS PAWN STAR

PawnHero now lets Pinoys pawn online

alk about the Internet of Things. Even pawning has gone digital, thanks to T PawnHero, which claims to be the first online pawnshop in Southeast Asia. The intention is the same: Allow people to pawn their possessions in exchange for some cold, hard cash. Co-founder and chairman David Margendorff says PawnHero targets Filipinos who don’t have bank accounts or access to credit. o pawn something, customers must first upload a photo of their item on the site, together with a description. After PawnHero’s appraisers estimate the item’s value, its logistics partner 2GO picks up the item for free. The customer receives the loan through their PawnHero Card, a debit card issued in partnership with Security ough a bank deposit; or through cash transfer via GCash or mart Money. After the IN THE BANK c stomer repays the loan, David Margendorff set up awnHero will ship back the PawnHero after realizing item for free. All shipments that pawnshops were are fully insured. he loan in every corner of the erm can be as short as country, but had not gone ne month or as long as a digital yet. year. While the pawned item is ith the company, it’s kept in a warehouse so secure that argen orff dubs it “Fort Knox.” “We have the lowest interest rate in the country,” claims Margendorff. PawnHero charges a flat interest rate of 2.99 percent against the 6 percent average interest rate of traditional pawnshops. There is also an option to sell the items directly on PawnHero.ph. he e-pawnshop, which was launched in February, is already gaining traction: In its first month of operations, it already had more than 50,000 visits and P10 million worth of loan requests, while one million worth of items were successfully pawned. “We pretty much target everyone. Since it’s private and discreet, it is for the A-B market as much as it is for C to E markets,” says Margendorff, D N adding that PawnHero has been receiving A L O items such as high-end handbags and N R gadgets.—Cathie Carpio A Y B N I O T A R T S U L I L

1 UNE 2015 Entrepreneur Philippines EASING THE PAIN When the founders of Horsepower.ph realized freelancers lack basic healthcare and insurance, they decided to do something about it by setting up a one-stop shop for HR, back office, healthcare, procurement, and logistics needs.

SUPPORT THE SELF-EMPLOYED

Horsepower.ph helps freelancers and ’treps avail of insurance, healthcare

reedom, flexibility, and the chance to be your basic healthcare, HR support, admin back- recruiting and talent acquisition, and own boss—these are some of the things that end, and purchasing power because they event strategy. freelancers, entrepreneurs, and the self- are mostly one-man te ams,” says Horsepower.ph offers healthcare and life employed enjoy, as the Internet has provided co-founder Jorge “Jojy” Azurin. “We take insurance, and allows users to pay their SSS, everyone with more options when it comes to care of their back-end needs so they can Pag-IBIG, and PhilHealth contributions, plus how they work and what they work on. only focus on one thing: to generate sales.” their utility bills. For non-online members, The freedom may be appealing, but It’s a problem the founders observed Horsepower.ph accepts payments through foregoing the nine-to-five job also has its within their respective industries: Azurin bank deposits, Smart Money, G-Cash, and drawbacks. More often than not, being self- was a regional director for an online ATMs, among others. Members can also avail E employed means that you’ll also have to give outsourcing company; Hannah Carla D. of free legal and tax advice, as well as free use A up benefits that a full-time employee has, Crisostomo was the business development of accounting and bookkeeping services. I M Y such as healthcare, retirement planning, director of a direct marketing company; “In terms of monetization, Horsepower.ph T T and insurance. This is what the founders of and Diego Jose A. Ramos has been a earns from membership fees. We also have a E

Horsepower.ph want to address. “We saw the relationship and channel executive for revenue sharing agreement with our partner M O need to support entrepreneurs as they lack over 15 years, and was also involved in establishments,” says Azurin.—Zar Castro R F O T O H

www.entrepreneur.com.ph/themagazine JUNE 2015 1 INFORMATION FOR THE WORLD’S BUSINESS LEADERS

ALSO AVAILABLE FOR DOWNLOAD ON HTTPS://WWW.SUMMITNEWSSTAND.COM.PH/FORBES-PHILIPPINES M I C R O F NUMBERS AND INSIGHTS #FOUND I N A N E 12

NUMBER F RE I TE RED MICROFINANCE INSTITUTIONS IN THE PHILIPPINES�MORE THAN HALF OF WHICH ARE BASED IN INDANAO�SERVING ORE THAN 1.7 MILLI ON CLIENTS NATIONWIDE ource: The 2012 Microfinance Client Mapping Initiative, a project of Dutch aid agency Cordaid is is not and the Microfinance Council of the Philippines arit . is is usiness: usiness wit a

PR JE TED R WTH F ocia o jective, THE GLOBAL MICROFINANCE “The establ ishment of w ic is to e p MARKET THROUGH 2019 the credit bureau can be ource: Microfinance Market eo e et out Outlook 2015: Growth Driven by taken in the cont ext of ) Vast Market Potential, released N November 2014 by assets overt . O responsible microfinance A management firmRespons bility D T T to help the poor. We must A (

avoid over-indebtedness R D and credit pollution because MUHAMMAD YUNUS, DUBBED E M these defy the reason f or “THE FATHER OF ACTUAL RE PAYMENT MICROFINANCE,” which microfinance was N RATE OF MICRO LOANS FOUNDER OF A ) MICROFINANCE I P I N T HE PHI L P INES established, and that is to L INSTITUTION A Source: PinoyMEFoundation, an ” GRAMEEN BANK I independent non-stock, non-profit improve lives .” R “ A organization in the microfinance and IN BANGLADESH L microenterprise development sector ND NOBEL T DR. JAIME ARISTOTLE “ARIS” ALIP, FOUNDER OF THE CENTER O PEACE PRIZE T FOR AGRICULTURE AND RURAL DEVELOPMENT-MUTUALLY S I RECIPIENT R REINFORCING INSTITUTIONS A E I A J . D ( Z E I R “OUR [MICROFINANCE] PARTNERS HAVE DISBURSED A M A R QUARTER OF A MILLION LOANS, AND THE REPAYMENT RATE IS Y N 98 PERCENT; 94 PERCENT OF THE RECIPIENTS ARE WOMEN… N WE KEEP RUNNING THESE NUMBERS UP, AND KEEP PRO ING AND S Y REPROVING THE MODEL, THAT’S REALLY OUR BEST ARGUMENT GOING FORWARD TO ENGAGE THE SOCIAL CAPITAL MARKETS. ” N O I T A MATT DAMON, ACTOR AND CO-FOUNDER OF WATER.ORG, TALKING ABOUT THE SUCCESS OF R T THEIR WATERCREDIT PROGRAM TO MCKINSEY PUBLISHING IN 2014 S U L L I

www.entrepreneur.com.ph/themagazine JUNE 2 15 21 #FOUND TRENDS

CAT’S MEOW: Cat Café Manila offers good food and great company in the form of rescued feline friends. Business partners Anna Calvo and Denis Ty (right) house strays as their “catvocacy.”

Of course, visitors may simply hang out with their furry friends for the price of a meal and a drink. Barkin’ Blends charges RAINING CATS AND DOGS P180, inclusive of a drink and a two-hour stay at their café. Miao Cat Café charges a Pet cafés find a ready market among animal lovers fixed P300 that includes a full meal and stay at the café for two hours. Cat Café Manila charges P200, half of which goes to the cats’ et owners didn’t like it much when the by Gonzalez in March last year, the café caters living expenses, while the other half goes to Quezon City government came out with to both the furbabies and their human handlers. consumables like food and drinks at the café. P an ordinance in April that limited each More pet cafés have since cropped up in As pet cafés are a new concept, getting household to four pets. Within days, the city Quezon City: Barkin’ Blends, a dog café along permits proved a challenge. “A lot of the government caved to public outcry against the Katipunan Avenue, launched in September; departments [in government offices] still ruling and repealed the ordinance. Miao Cat Café, located in Congressional don’t understand what [you’re applying for] That just goes to show that there’s a pet Avenue, in February; and Cat Café Manila in or why you’re even trying to get a permit,” economy in the Philippines. In fact, in March, Maginhawa Street, Diliman in April. says Gonzalez. trends watcher Euromonitor International Beyond banking on a novel concept, Sanitation and safety of both resident pets says the Philippine pet care industry recorded the owners of these pet cafés are keen on and human visitors are always prioritized. growth in 2013 as pet ownership rose. The promoting good practices in pet ownership. Cat Café Manila requires reservations and report didn’t specify figures, but predicted that “We try to educate our customers to clean enforces house rules: Shoes are removed “interest will grow over the forecast period up after their pets,” notes Gonzalez. Other and hands washed clean before entry. No with a continuing increase in the number of pet cafés promote animal adoption. Anna pulling of tails or disturbing any catnaps— pet-friendly areas and events.” Calvo, co-owner of Cat Café Manila, says visitors even sign a waiver promising only the In fact, pet cafés are starting to sprout in they’ve partnered with CARA (Compassion best behavior. the country following trends overseas. The and Responsibility for Animals) Welfare Seeing the warm reception to these pet first known pet café, called Cat Flower Garden, Philippines to provide shelters for cats cafés, Gonzalez predicts that more will pop began in Taipei in 1998. The concept was rescued by CARA in the hopes that café up soon, but the challenge remains on how simple: Give people the chance to snuggle and patrons will adopt them. to strike the balance between running a café E play with cats while sipping coffee or nibbling “Our advocacy—catvocacy—is to spread business and acting as an animal custodian. D N on a sandwich. The idea has since spread to love for animals; [promote] cat equality In Singapore last year, a cat café closed E U Q Japan, South Korea, China, Singapore, Canada, [or the equal treatment of pedigreed and down after seven cats died from disease and A I the United States, the United Kingdom, and mongrel cats]; and raise stray cat awareness. alleged mishandling by customers. “They [the D I E now the Philippines. We want people to realize and understand owners of pet cafés] just have to make sure H Y The first local dog café was an offshoot of that puspins (pusang Pinoy ) are wonderful that their resident pets aren’t overworked or B S Chef Giannina Gonzalez’s Whole Pet Kitchen and beautiful creatures, and there are a lot of abused—it can be very hard to control clients O T Pet Deli & Barkery in San Juan, which sold them in the streets that need loving homes,” who have a heavy hand in terms of touching O H nutritious pet snacks as early as 2011. Opened says Calvo’s business partner Denis Ty. pets,” cautions Gonzalez.—Josephine Roque P

22 JUNE 2015 Entrepreneur Philippines PARTNER PROMOTION

L A N D B A N K A SACRED TRUST T R U IT IS THE CONCEPT OF STEWARDSHIP, OF BEING S T RESPONSIBLE FOR SOMETHING OTHER THAN B A N ONE’S SELF, WHICH BROUGHT JOSEPHINE G. K I N CERVERO INTO THE WORLD OF INVESTMENTS G

tewardship truly is a noble cause to get the value of saving and investing through Cervero explains, “It is important for people to behind, and Josephine G. Cervero had that its different trust fund products, especially know, especially the younger generation, that S purpose in mind when she first entered the among folks in the rural areas as well as startup the economy has a cycle of bliss and a cycle of world of investments. Ms. Cervero was a companies and cooperatives. These are market meltdown... We have been blessed for the past product manager for a pharmaceutical company segments often overlooked by private banks, years, but we also need to prepare and before she switched industries and joined a but which also have the need to set aside funds set aside funds for unfortunate eventualities financial institution. Her bosses wanted her to to prepare for emergencies or to achieve such as calamities, sickness, loss of jobs, apply product management concepts to promote long-term goals. or economic turndown.” its trust funds, but she had reservations. She Trust funds are not the exclusive domain of She adds, “If we will exercise prudent spending says, “At first, I was hesitant because I thought the rich; the average Juan can invest in trust and not be wasteful, for sure we will be able to set that I will be building treasures on earth rather funds too. Ms. Cervero says, “If an investor aside some funds for emergency. Nowadays, we than treasures in heaven.” wants to avail of a trust product that is efficient are bombarded by advertisements of expensive After taking a one-year course on trust, and cheaper to manage, he should try the food, clothing, and travel. There is nothing wrong however, Ms. Cervero’s outlook on trust funds Unit Investment Trust Funds (UITFs) or in enjoying and indulging once in a while, but one changed. She says, “It is actually, in essence, pooled funds.” must not forget priorities. Set aside cash for basic stewardship. It is for this reason that I have been UITFs are funds pooled from several investors, needs and an emergency fund.” in trust services for about 20 years now, and and managed by a trustee or fund manager. With More than preparing their investors for the still counting.” as little as P5,000, one can invest in government future, LANDBANK also helps them grow Today, Ms. Cervero is the First Vice President securities, corporate bonds, and listed stocks in terms of income or the return on their of LANDBANK’s Trust Banking Group. A mom through UITFs. Through economies of scale, the investments over a period of time. Ms. Cervero of four, she is the former director of the Trust UITF’s income (or losses) are distributed among says, “We also help them grow in knowledge and Officers Association of the Philippines and participants accordingly. experience because we provide daily market the incumbent director of the Trust Institute Investing your money today to prepare your updates and conduct investor’s briefings about Foundation of the Philippines. family for the future is a contingent measure trust. Basic knowledge about investments is LANDBANK’s Trust Banking Group promotes in case of unforeseen circumstances. Ms. the key to growth.”

GOVERNMENT SECURITIES� MONEY MARKET FUND GROWTH FUND GLOBAL DOLLAR FUND FIXED INCOME FUND

 First-time    WHICH investors Prudent investors Aggressive investors Dollar investors   100%       special savings deposit 100% xed income diversied Minimum 40% in government Minimum 100% US dollar- FUND IS accounts into tradable government sec urities, tradable p rivate denominated xed income   sec urities, corporate b onds, securities; maximum 60% in securities, diversied into P10,000 and b ank deposits listed stoc ks trad able government sec urities, FOR YOU?       corporate bonds, and stock  P10,000 P10,000 deposits Know the different P5,000        kinds of UITFs and     $200 figure out which works  P5,000 P5,000    best for you! 30 days       30 days 30 days 30 days #FOUND SPOTTED

BOOST FOR E-VEHICLES Believing that a strong ecosystem of charging stations, payment platforms, and communication ASIA’S services can help speed up the adoption of MARKETS OF electronic vehicles locally, Global Mobility Service THE FUTURE Inc. (GMS) recently partnered with Meralco Energy Bangladesh, Cambodia, Inc. (MServ), CIS Laos, Myanmar, and Bayad Center Sri Lanka are Inc., and SMART identified as Asia’s Enterprise. next-generation Charging stations consumer markets will be built by in the latest Markets MServ, but will ENTREPRENEURSHIP 101 of the Future report be owned and of market insights managed by the firm Euromonitor M tricycle operators ntrepreneurship and financial literacy programs will O C . International. Laos is S and drivers’ soon be taught in all levels of education nationwide. E considered the fastest- G associations of E The House of Representatives has approved on A growing of the five I M participating second reading House Bill 5603, known as the “Youth E markets, with c onsumer E municipalities. R Entrepreneurship and Financial Literacy Program spending set to triple / F Payment for every G Act,” which includes entrepreneurship and financial between 2015 and N charge is made U O management in the basic education curricula. An 2030—a growth rate Y easier through Y Entrepreneurship Education Committee will be created higher than established R SMART Money D to study and standardize current programs on these emerging markets such N and Bayad Center. A as Indonesia and the S Meanwhile, subjects, and provide assistance, training, and support E Philippines. Operating G vehicles equipped for schools and institutions. The Education Secretary A in these small, fast- I M with the mobility will head this committee, whose members will include Y growing markets, T cloud connecting representatives from the Commission on Higher T though challenging, E system developed Education, Technical Education and Skills Development G can prove to be a M by GMS can O Authority, Department of Trade and Industr y, National profitable strategy, R be remotely F Youth Commission, and the Micro, Small, and Medium says Euromonitor S monitored N O I Enterprise Development Council. International’s T and controlled A economic and consumer R T by their respective S insights analyst Sarah U operators. L Boumphrey. Taken L I as a whole, she adds, A D these markets can be R “sizeable.” However, O I P T RURAL SHIFT companies should N A recognize the trade- I More people in Southeast Asia will live in rural areas and small cities in the next decade, N off poor consumers O according to a report from consumer insights firm Nielsen. In The Age of ASEAN Cities: From T make between price Y Migrant Consumers to Megacities, Nielsen says that close to two-thirds, or 62.6 percent, of the B D and quality, and opt to E region’s urban population will reside in small cities and urban centers by 2025. To tap into these L I produce quality goods P emerging markets, Nielsen regional director for client services Regan Leggett suggests introducing M at a low price. O smaller product sizes or single-use portions that appeal to both shoppers with limited purchasing C power and retailers with limited storage space.

24 JUNE 2015 Entrepreneur Philippines 06/2015

MONEY

START IT UP

DOING BUSINESS

TECH

MONEY BITING

ou know that, to improve your sales business expenditures,” says Henry Ong, staff’s productivity, you need to arm a certified management consultant and Y every single member with a laptop. president of the Young Entrepreneurs The problem is you don’t have the budget Society Philippines. to buy the laptops. Fortunately, buying isn’t “For as long as the asset can generate the only option when it comes to acquiring enough revenues to cover the leasing cost THE big-ticket items for your business. You monthly, you don’t need to shell out so much can opt to lease the laptops, too, or for cash to acquire the asset,” he says. This is A that matter, any equipment or machine especially true for companies without ready L A essential for your business. Sure, it’s extra cash for expansion that find it hard to raise A M expense, but you don’t really have a choice capital. By matching revenues and expenses, O L R if you want your business to grow. entrepreneurs can better manage their cash A C The good news is, experts say, small flow and ensure that there is enough money N A businesses with limited capital have in their coffers at any given time. Businesses U J the option to lease office equipment or can even allocate the budget freed up from Y B BULLET S machines they need for their operations. acquiring an expensive equipment to other N O I “The reason why leasing can be more essential expenses. T A attractive is because it allows you to avoid But how can you know for sure that R Why buy when you can lease? T S [forking] out a big amount of money leasing is the right option for your U L WRITTEN BY CHARLENE PE up front, which you may need for other business? Here are some guidelines. I L

www.entrepreneur.com.ph/themagazine JUNE 2015 25 MONEY

A MATTER OF EXPERTISE COST MANAGEMENT the 10 percent balance at the end of Neil Sison, managing director of In the long run, though, leasing is more the period. accounting and consulting firm Sison expensive than buying the equipment as Aside from the operating lease, Corillo Parone & Co., says companies there are, of course, extra fees involved. companies can also enter into a financial should lease when they have limited For instance, businesses may still need lease agreement, where lessors acquire cash and when they themselves lack the to pay miscellaneous operating fees on a company’s required assets, which are expertise in maintaining and running holidays that fall within the contract then leased back to that company. The the equipment. When businesses have period. The total cost of all the lease adjustable terms and payback period no in-house technical support, leasing payments will definitely be higher than in most leasing agreements today allow can be more economical, he says, citing the cost of the asset, says Ong. businesses to better manage the schedule possible savings of 20 to 30 percent due “When it rains hard and operations are and timing of their cash-outs such that to better productivity and efficiency. This cancelled due to safety or site concerns, I they are not a strain on the budget. Ong is because the maintenance becomes the certainly wouldn’t want to still be paying adds, “Consider the best type of transaction responsibility of the leasing company. for something I am not benefiting from, based on the package that they will offer He warns, though, that the timeliness and with so many holidays and erratic you. Sometimes the leasing offer can prove of the service is often a problem. And of weather patterns that affect logistics and to be more cost-effective than the purchase course, the company’s operations as well power, it is really better to own,” says Cua. one or the other way around.” as its public image will be gravely affected Buying is cheaper, particularly when should a third party fail to deliver its the business concerned has an in-house DESIRED LEVEL OF FLEXIBILITY commitments up to standard. technical support team, which can take Another advantage of owning an asset Ready-mix concrete supplier Concrete care of maintaining the equipment and is that it gives businesses more freedom Royal Mix Corp. rents its pumps from troubleshooting when it’s down. Also, when it comes to operating the equipment a business partner skilled in handling says Sison, by buying office equipment, in line with customer demands. Cua says projects that require such equipment. the business can save on interest expense, that owners of the equipment can easily Doing so allows the company to leverage insurance, and value-added tax charged standardize and upgrade machine parts on the lessor’s know-how, transfer liability by financing companies. like bearings when they discover that for some of its projects, and ensure Today, leasing companies also offer another brand is more cost-effective. equipment safety. lease-to-own arrangements that give Owning assets can also improve entrepreneurs the option to purchase the company’s balance sheet, which EXPECTED UTILIZATION assets after leasing them for a certain can go a long way in convincing banks VERSUS ACTUAL UTILIZATION period. This is the case for typical and investors to provide capital. “The Reiner Cua, vice president at Concrete operating lease arrangements, where advantage of buying an asset is the Royal Mix Corp., says companies should lessees make rental payments over a fixed flexibility of using it. You can improve it rent when they are confident they can term to use an asset. Ong says one can opt and extend the economic benefit of the maximize use of the equipment. “If a to renew the lease, purchase the asset at its asset. You can also leverage this in the pump that would cost P6 million has an fair market value or return it to the lessor future as a collateral if you plan to borrow expected utilization of 10,000 hours, then at the end of the period. money,” Ong says. it would not make sense for a contractor Sison says that, for the lease-to-own On the other hand, lessees have to put to purchase one when he is only making option, lessees usually need to initially up with limitations on the use of the asset one building where the hours of operating shell out 20 percent of the total cost, since they do not own it, says Ong. For the pump would only be around 100 pay off fixed rental fees for two to instance, businesses that lease equipment hours,” he says. “The art of estimating and three years (or even five to 10 years will need to ask the lessor’s permission to forecasting now comes into play.” depending on the equipment), and settle relocate machines and even have to wait

COST FACTOR Since leasing entails cost, it’s best that you negotiate the rate and the term of the leasing agreement, says Henry Ong, a certified management M consultant and the president of the Young Entrepreneurs Society O C . S Philippines. Both a lower rate and a longer term translate to lower E G amortization. “Have [the lowest possible] amortization so your cash out is A lowest to maximize your cash inflow,” he says. I M E E Companies should also compare terms from different financing companies R to help them assess the best option, says Neil Sison of Sison, Corillo, Parone F M O & Co. This includes checking the availability of expert support, their R F response time, and their cancellation or termination options. O T In the end, it all boils down to evaluating if the business can handle the O H leasing terms, says Ong. P

26 JUNE 2015 Entrepreneur Philippines HOW TO CHOOSE A LESSOR

Before you seal the deal, ask a few questions to determine whether the leasing company is right for you.

What is your level of expertise in handling the machine or equipment? Businesses should approach leasing companies that are well acquainted with the machine or equipment they need. After all, the leasing company will be in charge of maintaining it.

What kind of support do you offer? Neil Sison of accounting firm Sison Corillo Parone & Co. also that businesses need to check if technical support is available and if the leasing company will be able to “The reason why leasing can be more respond in a timely manner when assistance is needed. attractive is because it allows you to avoid Ideally, the leasing company should be able to act as [forking] out a big amount of money up front, a consultant that helps businesses decide the best which you may need for other business equipment for them.

expenditures.” Do you offer lease- to-own options? for the lessor’s support whenever they face engineer in case they are not allowed Entrepreneurs who expect downtime, says Cua. This can make things to inspect the units prior to purchase. to use the equipment for a long time should ask inconvenient for the business, he says. Businesses should consider things like the about buyout options, which warranty coverage and free training for at allow them to purchase the INTUITION AND COMMON SENSE least two operators when purchasing a new equipment from the lessor at Cua says companies should take into equipment, he says. Businesses that choose a fair market value at the end account factors like their budget, the to purchase machines—regardless whether of the leasing period. project duration, the availability of human they are new or secondhand—should also resources, and the usefulness of the machine be prepared to face issues like selling the Can we still negotiate in future projects, when deciding whether to asset in the future. Cua says that a business the terms? You can try buy or lease equipment. One should also try should take into account the economic negotiating for lower rates to predict machine downtime and how the situation. If it is in a position to get a loan, and a longer leasing period. If the leasing company is company expects its economic conditions to the owner can ask different banks to submit not willing to adjust their change in the future. proposals, and use his negotiating skills to terms, consider hiring other When purchasing second-hand machines, get the best deal out of them. “Continue to companies. “Get at least companies should assess if their in-house always assess the situation, if it calls for you three financing [companies]. team of mechanics is capable of handling to buy and stop renting, then optimize the Get their terms and [choose] them and consult with a mechanical future and control the risk,” says Cua. E the best one,” says Sison.

www.entrepreneur.com.ph/themagazine JUNE 2015 27 MONEY CASHING IN THROUGH LINKEDIN

How to use the professional network to find investors

ave Gowel has raised $3 million in the says Milwaukee entrepreneur Seth Knapp, through a mutual contact can catapult you three years since he started his U.S.- who’s looking for investors for his social to the top of the correspondence slush pile. D based enterprise-training platform marketing app, Chitter. “Reaching out to for cloud technologies. Of the 29 angel an investor without doing any homework >BE PATIENT investors he’s brought on board, all have tells him everything he needs to know Partnerships aren’t built overnight. “Your one thing in common: “Every investor about you—none of it good.” deck and any other information you send relationship I have was influenced by over will fall on far less deaf ears if you LinkedIn,” says Gowel, RockTech’s CEO. >VET AND BE VETTED patiently develop a relationship with the “A compelling example of this came when Resist the urge to ping investors who sound investor,” Knapp says. one of my investors listed his affiliation with like a fit right away. Instead, ask mutual Of course, most angels won’t end up RockTech on LinkedIn, and then another contacts for insights about them, Gowel investing, no matter how much they love your angel who saw that update contacted me,” advises. You don’t want to partner with an pitch, warns Brandon Bruce of Cirrus Insight, Gowel continues. “The latter angel had a investor who’s known for being difficult or which sells a software add-on to Salesforce. very strong respect for my investor who one who doesn’t meet the SEC’s definition But a carefully cultivated relationship can had updated his profile, and [he] became of an accredited investor. lead to market intel, strategic advice and, an investor within six months—he even If you do decide to move forward, don’t most important, referrals to other potential brought in another angel to invest with him.” contact an investor cold; an introduction investors.—Michelle Goodman Thanks to the U.S. Securities and Exchange Commission (SEC) lifting the

ban on general solicitation for investors, D N Linkedln has become a potential mother A L O lode for identifying and pitching investors. N R But it’s a nuanced and regulated game. A Y “I don’t think a general solicitation as a first B N contact is the way to go,” Gowel says. Instead, O I T A he and others recommend using Linkedln as a R T recon tool to improve real-world interactions S U L with potential investors. Here’s how. L I

S >EMBRACE THE ADVANCED SEARCH E T A T If you’re not clicking the “Advanced” link S D next to the site’s search bar and hunting by E T I industry, company, location, alma mater, N U - groups you belong to, or specific keywords R U of your choosing, you’re wasting your time, E N E says Gowel, who, in addition to running R P RockTech, is the author of The Power in a E R T Link: Open Doors, Close Deals, and Change N E the Way You Do Business Using LinkedIn. M O “There are 300-million-plus people on R F LinkedIn,” he says. “Advanced searches N TOO NEW FOR PINOYS O I help you cut through the clutter and zero in S S I In the Philippines, startups haven’t quite graduated to using LinkedIn as a means to M on the right people to meet.” R find investors, as the startup scene is not yet as developed as that in the United States. E Next, follow a potential investor’s P “We use LinkedIn as a way to know more about the investors we’re already in contact H company page. Join any relevant Linkedln I T with and not as a pr imary source,” says An gelique Uy, one of the founders of loyalty W groups to which your target belongs. Scour D and rewards app Zap. For now, she says, “referrals are still the best way to l ock in E his or her profile and posts to familiarize T investors, specifically referrals from existing investors. It has to do with the ‘newness’ N I R yourself with the person’s portfolio, of the Philippine startup scene. Most foreign investors are looking for local entities to P E investment approach, likes, and dislikes, lead the round of funding before they’ll consider investing.” R

28 JUNE 2015 Entrepreneur Philippines PERSONAL FINANCE

RIENZIE BIOLENA is one of the pioneering members year, and may do so again in Researching rates is fairly of the Registered Financial Planners Philippines. He is also an accredited investment fiduciary of the U.S.-based the future. Those who are easy, as bank websites and fiduciary education and training provider fi360, and planning to take out a loan other third-party sites offer a chartered wealth manager of the American Association should take advantage of ready information. When of Financial Management. You may reach him at current rates. getting a loan, a borrower can [email protected], or follow @rbiolena on Twitter. You may secure home opt for a fixed rate of interest loans from banks and from for a number of years— government institutions like practically locking in the rate HOME SWEET HOME Pag-IBIG Fund. Interest rates and payment—which can run do vary, but with the very for one, three, five, 10, 15, or 20 competitive environment years. A locked-in rate gives Make sure you get the best terms when today, they are not too far the borrower the advantage shopping for a home loan from each other. of making the cash flow stable As a general rule, the longer and reasonably predictable. the loan’s fixed term, the The rate and the fixed number or entrepreneurs, owning Luckily, we are now higher the interest rate. of years then gives the a home must be a dream living in a low interest rate For instance, a five-year fixed borrower the opportunity to F come true. It speaks of environment. With rates at rate loan may have an interest re-price for better terms. their success and can be historical lows, the best time rate of 6 percent, while a But let me tell you a trade considered a legacy to their to borrow really is now. 25-year fixed rate loan can secret: published rates are not family. But owning a home Bank lending rates were at a have 9.75 percent interest a given. Clients with a good requires a lot of cash and is a high of around 14 percent in rate. Below is a sample loan relationship with their bank huge drain on anyone’s bank 2001, but rates are now below rate table for various banks can actually get a lower rate. account. That is why one of 6 percent. This does not for a P1-million loan, interest Moreover, you can haggle for a the best ways to own a home is mean that it will stay low rate fixed for five years lower rate and, given the tough to take out a bank loan. Your forever. The Bangko Sentral with a term of 10 years, competition today, banks risk cash flow won’t take a huge hit ng Pilipinas has already comparable with Pag-IBIG losing a potential client if they this way. raised rates twice in the past Fund’s 9.75 percent rate. don’t offer better rates. Banks usually give a maximum of 20 to 25 years’ term for a home loan, while Pag-IBIG offers as long as BANK INTERESTR ATE( %p ery ear) MONTHLYRE PAYMENT MINL OANA MOUNT MARGINOF FI NANCE 30 years. The minimum amount can be as low as P400,000, and the maximum equivalent up to BPI 6.50% P 11,355 P 400,000 80% 80 percent of the appraised EASTWEST BANK 6.75% P 11,482 P 500,000 80% value of the property. Then there are the loan SECURITY BANK 7.00% P 11,611 P 1,000,000 80% fees and charges. Most financing institutions charge PSBANK 7.50% P 11,870 P 500,000 80% a non-refundable filing and appraisal fee that ranges from CHINATRUST 7.50% P 11,870 P 500,000 80% P1,000 to P3,500 to cover the cost of ocular inspection, METROBANK 7.50% P 11,870 P 500,000 80% as well as the processing of documents. Some even bundle HSBC 7.75% P 12,001 P 700,000 80% the loans with fire insurance and mortgage redemption MAYBANK 7.88% P 12,069 P 800,000 80% insurance, which provides

financial protection for the Z E BDO 8.00% P 12,133 P 500,000 80% borrowers and their families I R M in the event of death or A R CHINABANK 8.75% P 12,533 P 500,000 80% disablement of the borrower Y N by covering a part of or the N O RCBC 10.00% P 13,215 P 300,000 70% S entire unpaid portion of the Y B home loan. N UNIONBANK 10.75% P 13,634 P 500,000 70% I O At the end of the day, T A R SOURCE: WWW.IMONEY.PH always aim for the best deal T S and the lowest rate for your U L dream home. I L

www.entrepreneur.com.ph/themagazine JUNE 2015 29 by carefully choosing which Once credit is granted, assign

HENRY ONG, CMC, CMA is president and COO of customers you extend credit the right people to monitor the Business Sense, a business advisory firm that provides to. You can do this by doing receivables. Regularly remind solutions to small- and medium-sized companies. a background check on new customers about their dues You may reach him at [email protected] customers. What is the without irritating them. When or follow @henryong88 8 on Twitter. nature of your customer’s faced with a past-due account, business? Is the customer’s assign a staff to deal with the business cash-based? Is it a customer. There are customers large company or a startup? that face temporary cash- What is the customer’s flow issues. Try to get them to KNOW YOUR CUSTOMER credit experience with other commit on when they can settle suppliers? You can decide the account, or maybe develop Assess your customers before how much credit to give and a payment plan that allows the letting them buy on credit for how long based on your customer to pay by installment risk assessment. if the situation is serious. When you have limited If your margins can afford it, I supply meat products The capital losses, especially capital available for credit, give your customers discounts Q: to restaurants in when your working capital is you need to manage it like as a form of incentive if they pay Bulacan. I’m having cash-flow tight, can eventually lead to an investment portfolio. on time. For example, customers problems because I’m having a serious cash-flow problems. Diversify your risk by can get a 5 percent discount hard time collecting from our When your capital is not extending credit to a number if they pay 30 days earlier customers. Can you give me sufficient to support your of creditors instead of one or than their 60-day term. Or if tips on how I can collect more operations, you will always just a few. Set credit limits customers pay in cash, they get a promptly from our customers? be short of cash to pay your to make sure that no single 10 percent discount. monthly expenses or payables. customer can get a major Obviously, the more No matter how good When this happens, you will be share of the capital, so that customers pay in cash, A: you are in selling, if forced to get short-term loans to if one doesn’t pay, it will the better. Some customers you are not able to collect from bridge finance your expenses. not affect your business will surely avail of this offer your customers, it is as if you The more you borrow, operations so much. and, in turn, reduce the did not make the sale at all. the higher interest expense To limit your risk, you may number of customers who If you think that selling and you pay, the lower your require new customers or will buy on credit, thereby growing your list of customers profitability. Your business those you perceive to be high- lowering your exposure. is important in your business, will also be pressured to risk to pay a certain percentage Do your homework. Assess letting customers buy on credit generate more sales in order of the selling price as down your customers first before and collecting their payment on to recover the lost capital. payment. The down payment granting them credit. It is time is even more important. The irony is, you can only can be 20 to 40 percent of the the first step to effective When you extend credit to increase your sales if you let selling price, which should collection of accounts your customers, your sales your customers buy on credit, roughly cover the cost of the receivables. Also, make sure will increase, but you also hence the vicious cycle. product sold. This way, you your collection team has the increase your risks. You can avoid getting can limit your risk of capital right attitude and follows The fact that you are saddled with bad debts, or loss just in case the balance procedures to help ensure having cash-flow problems at least minimize your risks, becomes uncollectible. efficient collection. because you are having a hard time collecting from your customers shows that your working capital is highly SCENARIO 1 SCENARIO 2 dependent on your accounts receivables. The longer your TOTAL SALE 1,000,000 1,000,000 customers delay in paying

you, the more problems you CREDIT 1,000,000 500,000 Z E will have with your cash flow, I R M increasing the risk of the loan CASH 500,000 A R turning into bad debt. Y N Even if only one of your N O S big customers fails to pay you, Y % UNCOLLECTIBLE 5% 5 % B that could already paralyze N I O your business. Losing that T A BAD DEBT EXPENSE 50,000 25,000 R account will not only mean T S loss of profits, but also loss U L of capital. % OF BAD DEBT TO SALES 5% 2.5.% I L

30 JUNE 2015 Entrepreneur Philippines he dream, for many food entrepreneurs, is to own a sit-down restaurant. Though T they may start small at weekend markets, they don’t plan to stay that way. “After doing the markets for a couple PLAYING IN of years, you eventually want a bigger challenge,” admits Aasish Mirpuri, who parlayed his mother’s chicken kebab recipe to Maharajas Kababs, a food stall he opened in Legazpi Sunday Market in November 2011, and later in Salcedo Saturday Market. Business was going so well that THE BIG LEAGUES Maharajas Kababs transitioned to a restaurant in Makati in November 2013, before Mirpuri and his wife Joy decided to Take the leap from stall to full-scale restaurant relocate the restaurant to Aurora last year. And it’s not the only food startup that’s WRITTEN BY CATHIE CARPIO, WITH INPUT FROM VICTORIA VIZCARRA made the leap. >>

A L E U L L O C S O C T N E C N I V Y B S O T O H P

www.entrepreneur.com.ph/themagazine JUNE 2015 31 TESTING THE WATERS Market, though Renato says, “At the their food stall, but they compensate with A weekend market is the closest thing to a restaurant, we still have a long way to go.” bigger servings. There, they were also able business incubator a budding restaurateur to introduce new items, like sauces and can find. For Pia Renato, opening a A SPRINGBOARD FOR GROWTH dishes that complemented their chicken. restaurant was always the end game. Unlike Renato, Gerodias-Borja had She, along with her husband Jonathan, only intended for Manang’s Chicken BUILDING A FOLLOWING had spent eight months perfecting their to be a side business—until it became a Back when they were vying for a spot Portuguese-style chicken recipe for major hit among the crowd in Mercato at Legazpi Sunday Market, Renato Frangos at home. But before they could Centrale. They cut the ribbon on their first recalls, “[the organizers] preferred that move forward with their plans, they restaurant six months after their debut. stall owners be present during market decided to gauge their product’s reception A fast turnaround, but Gerodias-Borja operations.” Face-to-face interaction in the market first. wanted to capitalize on the momentum with the buying public is an advantage of “[Food carts are] great for a single- they earned as a food cart, and now the weekend markets; entrepreneurs should concept food business,” says Jill Gerodias- franchise is 15 branches strong. leverage on this and cultivate a stable Borja, president and CEO of Giabella Once ’treps have validated their customer base. Foods Corporation, which owns Manang’s food concept, a brick-and-mortar Having a loyal following strongly Chicken, a fried chicken franchise that establishment can provide the needed indicates that a food concept is sustainable. traces its origins to food bazaars. “It allows space and stability for them to further If your product is sold out at the end of them the wiggle room to adjust according grow their product line-up. “A restaurant the day, “not just [once], but a lot of times, to customer feedback before venturing into is more expensive to operate, but we can that’s an indicator that the customers like the big leagues.” serve all of our specialties and drinks it,” Renato says. “It’s a very good signal that A food stall is a way for entrepreneurs there. We cannot rely just on our chicken the product is ready for the next level.” to litmus-test their idea with minimal products; we always develop new food It’s not enough to attract new clientele, investment. Maharajas Kababs was able to to offer,” says Renato, who had brought but also to retain the returnees. A recover its P10,000 investment on its third a consultant onboard, Chef Jerome restaurant’s success, says Mirpuri, week. Similarly, the Frangos team earned Valencia, to expand their menu. depends heavily on repeat customers. back their initial investment of P175,000 They’ve had to price their items slightly Renato and her co-founders, for example, after only four months at Legazpi Sunday higher at Frangos restaurant than at felt confident about scaling up after

Frangos founders Pia Renato (center), her husband, Jonathan, (left) and brother, Aldrin Mababangloob, were able to build on their food stall’s star product, Portuguese- style chicken, through an expanded menu at their restaurant.

32 JUNE 2015 Entrepreneur Philippines steadily gaining more regulars at their Sunday stall, with others asking where else they could buy Frangos’ chicken.

TRIALS BY FIRE A food stall and a restaurant each come with their own set of challenges: Since the restaurant will incur higher overhead expenses, and labor costs, it calls for “Not all concepts will successfully translate more capital. There are longer leases for restaurant space, which offers businesses well as a restaurant, and entrepreneurs need to the permanence they need to establish themselves, but that also means ’treps offer more than what was in the food cart.” can’t easily cut their losses and pull the plug when sales lag. “You need to sell Renato agrees that the demands and fast investment, the business is on the right much more just to break even,” warns pace of food stall life is a kind of trial by fire track, says Renato. Gerodias-Borja. that will prep business owners and their Especially if, like Manang’s Chicken, On the other hand, because a employees for the hustle and bustle that entrepreneurs plan on striking while the food stall is transient and mobile in goes on behind the scenes of a restaurant: iron is hot, their profits need to be on an nature—some markets are open for half Whereas call time at the Frangos restaurant upward trajectory. “[They] should not a day, and only during certain days of a is at 10 a.m., Renato and her family need to open a restaurant when their food cart has week—it’s undoubtedly a labor-intensive set up their food stall as early as 6:45 a.m. plateaued,” says Gerodias-Borja. undertaking. Mirpuri found the weekend every Sunday. “Handwork is difficult,’” she There are other options if one prefers market circuit to be more of a challenge says. “You have to get used to it, then it isn’t to scale up slowly: Maharajas Kababs, because he and his wife practically had to so hard anymore.” for example, transitioned to a kiosk transplant their kitchen to a small stall Despite their differences, running a before opening a full-scale restaurant. every week. Lack of access to a nearby food stall can unlock valuable lessons Gerodias-Borja advises ’treps to look washing area was also an issue. “Running that can be applied to a brick-and-mortar ahead and decide early on if their business a food cart is a logistical headache since establishment later on. For instance, the model is for a food stall, or if they intend you’re always moving. Packing and Frangos team learned to be particular about to use the food stall as a jump-off point unpacking was my least favorite thing to cleanliness in their operations and to cook for a restaurant. Whatever the case, they do,” Gerodias-Borja admits. with precision—habits they have carried should be prepared to make adjustments But for businesses like The Breadery, over to the restaurant. And like their food to their business plan depending on what the food cart experience also provided stall, the restaurant also has an open kitchen their customers are looking for. valuable hands-on training for its staff, setup that lets customers watch as their It’s imperative that founders study and who would later man the The Breadery’s orders are cooked on the spot. know their own market before making a first permanent bakeshop, complete with decision. “Crunch numbers on the total dining space, when it launched last year GETTING THE GREEN LIGHT investment [needed], and the break-even in Ortigas, followed by another branch How do you know if your food startup is [point] in sales, [to determine] if upgrading in UP Town Center. “We felt it was good ready to take the leap? Check the books: If is worth it,” Gerodias-Borja says. “Not all training for our people before we opened your food stall’s net income is increasing concepts will successfully translate well as a our store,” says Inna David Go, president every month, and you’re meeting a restaurant, and entrepreneurs need to offer of The Breadery. modest monthly target for your return on more than what was in the food cart.” E

FOR A FOOD STALL, FOR A RESTAURANT, IN YOUR PLACE LOOK AT THE COMMUNITY LOOK AT THE AREA Eateries are everywhere, from the “Consider the people who operate and Restaurateurs want to settle in a side of a street to the top floor of a manage these weekend markets,” advises place with many source s of foot building. But the size and scale of Aasish Mirpuri of Maharajas Kababs. traffic: Being near offices, commercial the food business can help ’tr eps He advises ’treps to apply to reputable establishments, parking lots, and determine where to set up shop: ones, where vendors have a sense of residential areas is a top consideration camaraderie and the organizers can when scouting a location f or a provide you support. After consulting restaurant. Frangos decided to lease a with organizers, Frangos, for instance, space in Kamagong St., Makati, for its innovated a special exhaust pipe for restaurant and headquarters, because it their stall so smoke from the rotisserie was only a few minutes away from where wouldn’t disturb their neighbors. their food stall is on Sundays.

www.entrepreneur.com.ph/themagazine JUNE 2015 33 START IT UP DIARIES

hen I first thought of making designing the packaging, and fixing the chocolates as a business, I had machines. Half of the time, I was unsure W absolutely no idea how to go about of what I was doing. it. I became intrigued by the concept When we first debuted our product of single-origin chocolates—which at the International Food Exhibition means their cacao comes from only one in 2010, we only had two variants: region, similar to the terroir concept a 70 percent dark chocolate bar and when talking about wines—while I a milk chocolate bar. Our plan was was working as an IT programmer to sell plain chocolate bars to consumers in the U.S. and later on as bulk chocolates for I came back to the Philippines in institutional clients like bakeries September 2007 with the dream of and hotels. starting a chocolate business. At the When we came out with the flavored time I saw that no one was making chocolates for the holiday season, I had quality single-origin chocolates from no idea that we would create so much Philippine cacao, and felt that it was a noise. Almost immediately, people were niche I could get into. talking about us on social media. Even The harsh reality quickly set in, though we had intended to make only however: Sourcing cacao beans was not plain chocolates, we couldn’t ignore as easy as I thought. Back then, the cacao that the flavored variants were selling industry was in a slump. There were few well even after the holiday season, so we RAISING cacao bean farmers, their harvest was continued making them. We finally found already contracted to big buyers. The a potentially profitable business model. few that I was able to talk to didn’t have I know we have already achieved a THE BAR the kind of cacao beans that I liked. level of success, but I feel we are still in Discouraged and panicking, I thought the early stages of our company. We have of revising my plans and getting cacao just moved to a bigger place and invested Philo Chua of Theo & Philo beans elsewhere. Fortunately, I was able heavily in new and better production on finding his own way to talk to a cacao farmer who let me buy equipment. Every day is still a learning in business two sacks’ worth of cacao beans. period for me, and I am excited, anxious, Then came another problem: I found and hopeful for the challenge of creating it next to impossible to find machines a business that can last. for small-scale production. We ended up The challenges I faced with Theo & using repurposed machines and having Philo have taught me to be patient and some fabricated. But this brought on to be persistent. Things take time to its own set of problems. I was forced to take shape and it can be a measure of learn more about machines than I ever how much you believe in the business had to. I was literally getting down and you’re building. It has also taught me that dirty trying to fix machines I didn’t business is about constantly learning know anything about. new things—from learning about new During that time, I was spending products and processes, to learning on everything, without having even about customer behaviors and trends. All made a single bar of chocolate yet. that we learn can be applied to building a Fortunately, I was working remotely better product and a better business. from here as a programmer; I was lucky I think that all good business ideas to have had a job that allowed me to stem from understanding how the world work any time, freeing me to focus on works in the context of where and what my chocolate business. you’re working with. My advice to people The two and a half years in between who want to start their own business is to O returning to the country and selling my observe, go out, and be curious. It helps I L H first chocolate bar was a learning period to meet new people and see new things P & for me. I didn’t have any background in to understand what it is people want O E H chocolate-making, so I was try ing to or need. Reading also helps. You get to T F absorb whatever I could find from books, know other people’s perspective and see O Y the Internet, TV, and newspapers. what’s outside your own little bubble. S E T Nobody in Manila was doing what I R U was trying to accomplish, so it was O C O really a lot of trial and error. I was doing Philo Chua is the founder and owner of T O everything from sourcing, formulating, Theo & Philo Artisan Chocolates. H P

34 JUNE 2015 Entrepreneur Philippines START IT UP SWEET TALK

Jertie’s Kitchen finds its niche

ertie and Jaclyn Abergas used to eventually adopting it themselves, They also began seeking out niche run a café, so they thought that that that they realized there was so much fairs, where they can meet many potential J experience taught them what they more to healthy eating than sweetener. customers and expand their network. needed to know about business. Little did It wasn’t long before the Abergas sisters “[Some of] the clients have now become they know that Jertie’s Kitchen, their new began to incorporate what they learned regulars, and until now, the businesses line of specialty vegan and gluten-free into the business. In 2013, Jertie’s Kitchen and entrepreneurs [we’ve met] continue to food, was a completely different animal. rebranded specifically into a gluten-free be our partners,” she says of these events. Early on, the Abergas sisters and vegan food company. “We realized Demand for Jertie’s Kitchen pastries, mistakenly believed that switching we can’t just market to anyone and initially averaging two or three orders from white to brown sugar automatically everyone,” says Jaclyn. “Consumers now in a month, has now risen to around made their products healthier. Jertie’s are more discerning. Targeting specific 60 to 100 products a month. Jaclyn and Kitchen initially eyed an older audience markets makes it easier to create more Jertie have also begun holding cooking who may have health problems, then effective campaigns.” workshops to get to know their customers. turned around and attempted a broader This time, they paid closer attention to One class usually has 15 to 20 people in appeal. “We cast our nets wider just to what went into their ingredients list: their attendance. “We now sell our relatability,” see who we could catch,” says Jaclyn. products are now made without any eggs, says Jaclyn. “It’s important for us to But without a unique selling point or a butter, milk, or refined sugar—instead, share our stories, because we want our clear-cut demographic, customers still these have been replaced with healthier customers to know that we do understand weren’t biting. alternatives like bananas, coconut oil, what they’re going through, because we’re It wasn’t until they did more research coconut milk, coconut sugar, and going through the same experiences.” about a gluten-free and vegan diet, cane sugar. —Victoria Vizcarra

Sharing the vegan and gluten-free lifestyle put Jertie and Jaclyn Abergas in their customers’ shoes, which prompted them to pivot the business. “It was hard to sell products we no longer [believed] in,” says Jaclyn.

E D N E U Q A I D I E H Y B O T O H P

www.entrepreneur.com.ph/themagazine JUNE 2015 35 START IT UP

HAPPY THRIFT

MiCab turns to advertising to keep taxi fees Cebu-friendly

hen it launched in Cebu in with a 200-unit fleet, MiCab’s founders knew that doing so would 2013, MiCab became known founders knew they needed to cost them MiCab’s distinguishing W for being one of the first taxi- amp up their driver rewards and feature. It also flew in the face of the hailing apps to operate outside customer acquisition if they were company’s promise of convenient of Metro Manila. That, and its to stay competitive. “It became an and cheap cab hailing. “We had to affordable P10 booking fee. “Cebu uphill battle,” Ybañez recalls. “The protect the passenger’s pockets,” is a very interesting market,” P10 was just enough to sustain he says. After all, they themselves explains co-founder Eddie Ybañez. operations, but not enough to keep were familiar with the frustration of “Cebuanos are price-conscious. everyone in the ecosystem happy.” hailing down cabs to the airport for [They] have a knack for [being] The solution seemed obvious: their red-eye flights. thrifty.” It’s why MiCab is priced to raise the booking fee, which MiCab retreated temporarily be acceptable to Cebuano users. would increase the topline. They from the market last October The startup was able to cover its were also facing pressure from while the founding team operational costs, thanks in part the competition, who charged recalibrated their strateg y. When to funding raised and strategic booking fees of P35 to P80. “It it reemerged from its hiatus in partnerships. But after spending was very tempting to do the same,” June, rather than focus on earning the last two years beta testing Ybañez admits. But he and his co- revenue from passenger fees— these “would never be enough to sustain operations” anyway, Ybañez says—MiCab decided to pivot to digital advertising platforms as its primary income stream. The company now offers indoor advertising—clients can rent out ad space in the seven-inch tablets deployed to MiCab taxi drivers—and outdoor advertising via the LED panels atop their cabs. These run on a platform MiCab developed to support mobile geolocation advertising. It also expanded its partner taxis to a 500-unit f leet, and is looking to add 200 more within the year. Looking back, Ybañez is confident they made the right decision. It would have been a mistake to depend heavily on something so volatile as booking prices for profit—in fact, some competitors have now begun throwing “no booking fee” promos. A higher taxi fee would have definitely helped cover costs, D N but “it would not be the reason A L behind MiCab’s success,” he says. O N R “A premium cost for hailing cabs A Y is still not accepted in the market B N we are operating in. You have to I O T A focus on the solution, not on the R T S problem.”—Victoria Vizcarra U L I L

36 JUNE 2015 Entrepreneur Philippines

DOING BUSINESS

, a ove, at wor on n tt ng xpedition’s wool warmers and cuddle toys, left

such as “Pizza ka ba? Kasi crust kita ” “ Lahat gagawin, pasta ikaw” —cater to the youth’s penchant for selfies. And to underscore its claim of “Freshly Made Everyday”—emblazoned in a “pizza seal” on the wall—the kitchen is partly exposed so customers can see pizza dough getting tossed and garnished. Of course, rebranding comes at a cost, what Cruz calls “the pain of change.” “It’s painful because there are a lot of expenses involved, and different emotions come in play,” he cautions. If you’re contemplating a similar change, heed the following tips.

COMEBACKS >ASSESS YOUR BRAND MERCILESSLY Gauge if a rebranding is indeed needed. “If the brand has more bad points—like lack of recall and brand identity—then it’s probably time to seriously think of going into a massive rebranding where AND MAKEOVERS the good points of the brand may be carried over, while starting anew,” says Ameera Capay, owner of Spanish-themed Ma e your old rand good as new casual dining restaurant Q Bistro, which

RITTEN BY GABRIEL A. MAGNO is being refreshed, with the help of Cruz’s Powercom, into two new brands: veryone loves a good comeback story. Cruz, managing partner at marketing agency catering service Q Provisions, and “tasting It’s rare, but an entrepreneur could Powercom, which offers rebranding services. restaurant” The Round Table. The latter E decide to revitalize a dormant brand Greenwich, for one, has revamped its allows diners to partake of tasting portions to appeal to a nostalgic target audience, look to match its predominantly young of the Q Provisions menu. Both brands, reintroduce it to a new generation, and market and communicate that it’s a soft-launched last April, now serve Asian even emerge in a better business position pizzeria—it’s not a run-of-the-mill fast- and continental comfort food. than before. food place,” says Thor Balanon, COO of Capay says they embarked on a Periodic touch-ups are also needed for Space Encounters, which, together with W. comprehensive market and feasibility thriving businesses: Maybe your audience Lopez Designs, is tasked with the redesign. study to ensure that the new branding is changing (or has changed), or newer Now, there’s an industrial feel to would be more effective than Q Bistro. competition is transforming the playing Greenwich, using a clever mix of wood, “We did the difficult task of dissecting the field. You’ll need to evolve to keep up. brick, and metal. Brand colors of red and Q Bistro brand and really went into what’s “The most obvious change would be the green are made more vibrant when paired good and what was not-so-good in order packaging—it could involve the colors, the with black. A “barkada zone” showcases to come up with a thorough assessment on logos, or the product treatment,” says Cyrus graphics and typography—cheesy lines how to go about the rebranding,” she says.

JUNE 2015 Entrepreneur Philippines “The focus is now on catering, and The If the brand has more bad points—like lack of Round Table restaurant is a marketing platform for the catering side. Walang recall and brand identity—then it’s probably impact yung catering business alone, and ime to seriously think of going into a massive the catering industry is already saturated to begin with. So we created a kick-ass rebranding where the good points o the brand concept to complement the catering business. It was a distinct opportunity for may be carried over, while starting anew.” Q Bistro,” Cruz explains.

>LISTEN TO POPULAR DEMAND >KNOW WHA TO KEEP, AND WHAT TO LET GO on local shores—hand-knit toys. “I think Sometimes, all you must do is listen to Some things don’t have to change at all. Knitting Expedition is now definitely your customers, as in the case of Tom “We still tap our contacts and suppliers, as more marketable locally because Sawyer’s Old Fashioned Krispy Chicken, we have already established a relationship Ricefield Collective used to sell winter which once boasted of a 20-store network with them—quality of delivery, as well as items such as pure wool scarves and hats during its peak in the ’90s, closed shop in the terms, are maintained. It helps the that we really can’t use here,” Alipio says, 2003, and rebounded last year with a new new brand to keep afloat and not have to adding that, with knitted handmade toys, branch in Tiendesitas in Pasig City. start from scratch,” Capay notes. “we don’t need to be concerned with sizes Louie Aurelio, Tom Sawyer’s owner, After knitwear brand Ricefield or fashion forecasts.” says the inspiration to bring back the Collective, which had addresses in both However, it was leveraging on Ricefield brand came from a group of diehard Tom New York and Ifugao, folded up last Collective’s reputation that proved to be a Sawyer’s fans he calls the “Tom Sawyer September, businesswoman Candy strategic, if not crucial, move for Knitting Babies,” who would order the brand’s Reyes-Alipio seized the opportunity to Expedition. “It gave our very young flagship fried chicken through Aurelio’s tap the company’s now-jobless workforce, company credibility right from the start, Catering, even after Tom Sawyer’s had consisting mostly of women Ifugao both to clients and to customers, and has closed shop. knitters, and employ them in a wholly saved us a lot of time and money that we “The brand never really died—Tom local enterprise, Knitting Expedition— would have otherwise spent on travel and

Sawyer’s Fried Chicken was still being “to keep the happy knitting circle going,” training, and starting from scratch,” she adds. ) E G served through food catering, by special as she puts it. “Ricefield Collective has A > P request,” Aurelio says. Reopening the given us the opportunity to connect with BE PA IENT E T I restaurant, he says, meant catering to this designers and knitters in other countries There’s considerable effort—and S O P nostalgic market, while appealing to a whom we can eventually tap for our own expense—involved. Some changes P O ( new audience. Tom Sawyer’s now reflects line of products. Some international are slow to take effect. But ultimately, N the evolution of market tastes during the clients have also found us through our a well-executed rebranding campaign I O I T D brand’s 11-year hiatus: It streamlined former associations,” she explains. can do wonders for a business looking E P an old menu that, at one point, included Meanwhile, Knitting Expedition’s to bring something fresh to the table. X E burgers, stea ks, and a salad bar, and shift to an exclusively local market has Q Provisions and The Round Table, G I N focuses instead on the restaurant’s famous permitted the new enterprise to create for instance, are competing much T I T fried chicken and hickory ribs items. new products that are more marketable better than the former Q Bistro. “It’s an N K uncontested market space...Q Provisions D N can offer same-day catering, thanks to A ’ S R The Round Table concept,” Cruz says. E Y The Greenwich makeover of 25 stores W A to date has increased walk-ins ranging S M from 13 to 20 percent, and improved O T sales performance at an average of F O Y 5 percent per store, says Greenwich S E T retail and channel marketing officer R U Mavel Villanueva. It has also become O C the “model” for refreshing other brands D N under Jollibee Foods Corp., starting A E D with Chowking, adds Balanon. N E In general, Cruz adds, “If you do things U Q A intelligently and properly, it will definitely I I D be worth it. You’re giving a second life to the E H brand. And when you create a second life, a Y B Tom S wyer’s evolved from an old-fashioned restaurant, lot of beautiful things can happen—you will S O left, to a more modern dining establishment, above, with a T be successful, you can provide more jobs, O strea lined menu—but their amous and well-loved ried H chicken remains the same. more consumers will patronize you.” E P

www.entrepreneur.com.ph/themagazine JUNE 2 15 DOING BUSINESS

There’s no better time to get into convenience stores: Sales are soaring, IN A WORLD with Kantar recording a 45 percent increase in convenience store purchases just last year. Supplying is actually easy—the hard OF CONVENIENCE part is how to move your product in an environment where equally competitive products are also being sold. You could How to beat the competition in the big marts excel at this game if you heed these tips.

onvenience stores are the fastest-growing in the advent of fast-paced and more >WIN THE POPULARITY CONTEST retail channel in the country—and it’s demanding lifestyles of consumers,” Have you got what they want? The Kantar C probably where you should be. says Kantar Worldpanel new business survey, conducted in January, shows that A study released by consumer insights development head Lourdes Deocareza. food, ice cream in particular, comprise the firm Kantar Worldpanel in April shows In fact, market-research company bulk of convenience stores’ fast-moving

D that 18.5 percent of Filipino households Nielsen says that the Philippines has consumer goods (FMCG) top sales. Based N A now buy in convenience stores, up from the biggest opportunity for growth for on value sales, other products that made it L O 16.1 percent last year. This translates convenience stores among the markets in to the top 10 bestsellers are milk, snacks, N R A to 566,991 more families buying from Southeast Asia. Their latest figures show alcoholic beverages, diapers, biscuits, soft Y B convenience stores, most of which are that in terms of convenience stores per drink, water, fabric cleaner, and juice. N I O operational ’round the clock. capita, the country has one for roughly FamilyMart’s customers gravitate to its T A R “We anticipate this trend in the every 41,000 people, compared to South green tea matcha soft-serve ice cream—all T S convenience store segment to persist Korea’s one store for every 2,000 people. you can swirl into a single waffle cone U L I L

40 JUNE 2015 Entrepreneur Philippines for the price of P25—which it introduced upon launching here two years ago. “We put great value in adjusting and servicing Full meals and pastries are also in the needs of every community, so there are demand. Chef J Gamboa, who has consulted for FamilyMart, spea ks of some areas where we put a greater emphasis a trend where the convenience store is no longer just a place to sell cigarettes, on certain products that could be in demand newspaper, or candy, but also serves as “a 24/7 quick service restaurant.” by our consumers there.” “You have to be hyper v igilant on producing products that will move believe they can effectively push in their be in demand by our consumers there,” and that are trendy,” says Bruce Lim, store,” Azanza says. she says. executive chef of Mise en Plus Foods Inc., Food safety is crucial, not just to make your In fact, Villar says they introduce new which supplies ready-to-eat products products easier to sell but to avoid lawsuits products every month. “All Day closely to Ministop Philippines. Among their too, says Kerwin Tansekiao, managing monitors the ever-changing needs of our products, for example, is the kariman, director of Jimini Foods Group. His Pizza customers and we make sure that we are which is popular among students and Pedrico’s pizza bar partnered with Ministop able to address that as quickly as possible. yuppies. “You have to ensure that your almost at the same time that the convenience It is part of our culture to be innovative and products offer consumers value for store opened in the country in 2000, also bring what is new, fresh, and novel to our money,” adds Lim. with an outright purchase agreement. “We consumers wherever they may be,” she says. had to do concept testing with some of their In an earlier interview with marketing >WATCH YOUR QUALITY stores before rolling it out to all stores,” expert Josiah Go, 7-Eleven president For Juju Eats, fresh deliveries are made on Tansekiao recalls. Victor Paterno also said that convenience a daily basis to natural food and product “The number one thing on my mind stores are meeting the boom in the store Healthy Options through an outright besides creativity and flavor is food safety, business process outsourcing sector with purchase arrangement. “We provide them because people might get sick eating your more ready-to-eat products. But in the 20 kinds of soup, salad, and sandwiches products. That will cause a headache, not provinces, Paterno observes, “it will be a each. They call us every day to make the just for you, but for your convenience store case of more Slurpees, less rice meals” as delivery,” says Kat Azanza, co-founder and partner, too,” adds Lim. consumers outside Metro Manila have vice president for sales and marketing of plenty of access to cheap food. Feelgood Inc., which owns both Juju Eats >CATER TO THE LOCAL and Juju Cleanse. Study the locals. Camille Villar, executive >GIVE EXTRAS “It’s difficult enough to make people eat vice president of All Value Holdings Corp., You’ll find that you can negotiate some vegetables. It becomes more difficult if our which operates All Day convenience concessions if you’re willing to provide products are not fresh…We would rather stores, says they maintain a merchandise extra services. Philip Morris Fortune they run out of stock rather than overstock. mix consisting of regular items you find Tobacco Corp. Inc. (PMFTCI) says It was a conscious decision to maintain the in all the stores, but with optional items they’ve been able to get favorable product freshness of our products,” explains Azanza. specific to the locale. placement this way. The partnership with Healthy Options, “We like to be consistent in our “We design and install the shelf for free, which began in 2014, is founded on a product offerings. However, we also put with the understanding that our products common philosophy of being able to provide great value in adjusting and servicing are displayed more prominently, that fresh and natural grab-and-go food. the needs of every community, so there we get principal display,” says PMFTCI “It was synergistic and coincidental. They are some areas where we put a greater communications manager Dave Gomez. chose from our range the products that they emphasis on certain products that could This means the top two shelves of their standee would house their products, AT A GLANCE whereas their competitors would occupy the lower shelves. % OF VALUE SHARE OF SECTORS It also helps to give incentives to your TO TOTAL CONVENIENCE STORES customers so that your products move faster. Most convenience stores impose a JANUARY JANUARY sales quota for products that they carry, 2014 2015 so underperforming products undergo 58.8 FOOD 59.3 evaluation, and could be removed from shelves. As part of PMFTCI’s brand 25.6 BEVERAGE 23.8 promotions last year, customers got a freebie lighter if they bought an extra pack 11.3 PERSONAL CARE 13.4 of cigarettes—and the lighter came stamped 4.3 HOUSEHOLD CARE 3.5 with the brand name, too. You could say that it’s a win-win for everybody. —Babe Pañares SOURCE: KANTAR WORLDPANEL

www.entrepreneur.com.ph/themagazine JUNE 2015 41 INSPIRING

ENGAGING

IGNITING

W W W. S U M M I T M E D I A . C O M . P H A S K A P R O

obtain quality data…Of course, when the investment is significant and the stakes are high—like needing to make major decisions about funneling resources into a new category altogether, or discontinuing a product or service that’s been running for a while—having formal research findings as basis for moving forward is valuable.

WHAT DO I LOOK FOR IN A RESEARCH AGENCY? Look at both the track record of the company—the outcomes of their research—and willingness to customize the research to your specific concerns. Meet with the research team if possible. So much of research, particularly qualitative research (interviews, observation, focus groups), is highly dependent on the skills of the individual researchers. And rather than taking a research brief off the bat and running with it, a good research agency should also be willing to engage clients in a discussion about the best questions to ask, given the stage of the business or service.

WHAT WOULD HELP ME UNDERSTAND MY CONSUMER BEST? It really depends on what you want to find out. If you’re curious about a very broad IN YOUR area (for example: What exactly makes people stay longer in some coffee shops but not in others? What’s a typical teenage CUSTOMER’S SHOES experience of a phablet?), and just looking for data to spur new ideas for products and services, or ideas on how to improve them, To serve them better, get to know them first it’s best to start with a few people using interviews, simulations, observation trips, he starting point of good design is HOW DO I CONDUCT CONSUMER INSIGHTING? or co-creation workshops. Meanwhile, if getting to know whom it is for. “Ordinary Get to know customers first, be open to you want to know specific things—like how T people who use products, systems, and constructive feedback, because so many many people out of a demographic segment services should also be treated as experts questions can be answered by just talking will buy my product, for what price, for how in how things ought to be designed, rather and observing customers on your own. You often, and in what quantities—then you are than leaving the process entirely up to can even check your social media accounts, better off conducting a quantitative survey professionally trained designers, whose blogs, forums, or Google to see if feedback with a lot more people. lives may be miles apart from those they about your business already exists. Another design for,” says Pamela Cajilig, co-founder low-risk method: Make a mockup of your SHOULD I BE WORRIED W HEN FINDINGS of Curiosity Design Research. business idea and get family and friends to DO NOT MATCH MY EXPECTATIONS? Curiosity helps entrepreneurs and experience it and give their comments before Research partners should be willing to development workers understand how making any major moves. constructively flag pieces of information S people use products and services, and valuable to the direction of the business, E G then rethink design. Cajilig, a designer WHEN SHOULD I HIRE OUT THE TASK? positive or negative, which might be A I M and business anthropologist, draws from [Only] when, as a business owner, you’ve different from the original assumptions of Y T previous experience in strategic planning done enough poking about on your own their client. Clients also make the most out T E at digital communications agency Movent, and encountered questions you can no of their investment when they view G M O and the Ogilvy Group. Disregarding longer answer by yourself, [or] when the data that surface with an open mind. R F consumer insighting, she says, will result you’re experiencing tunnel vision and Good research leads to discovery. If all N O I T in a product that causes frustration in need a neutral party to see things in a research activity does is validate your A R T the user. Here’s how to avoid making that different light. Commissioning research current assumptions, then there’s a S U mistake.—Bernadette Reyes takes a certain amount of investment to problem somewhere. L L I

www.entrepreneur.com.ph/themagazine JUNE 2015 43 BLOG BOOSTERS

Beef up your business’ blog with rich media content

WRITTEN BY BERNADETTE REYES

logs have become the medium of grabbing,” says Alessa Lanot, a Startups and small businesses can choice for entrepreneurs looking to graphic designer whose blog, Life After get more attention by throwing in B reach out to a wider audience at lower Breakfast , is full of graphic art. Initially, multimedia content. Producing short cost. But now that most people know their the blog was just an outlet where Lanot videos, infographics, and supporting way around the Web, how can you make would post her work, but has since images to support your blog makes it yours stand out? become a marketing tool, too. “Now more “shareable,” says All Famous Digital “Since there are more blogs now than that it has gained a steady following, I CEO and co-founder Robin Leonard. ever before, you need to create content promote my workshops and events on “There is an overwhelming amount of that is unique, useful, and attention- the blog,” she says. text content available to read. Sometimes,

44 JUNE 2015 Entrepreneur Philippines TECH people prefer to watch a video or read SCREEN SAVERS an infographic instead. It just makes it easier,” he says. Making a personal appearance on your latest podcast or video? Here Leonard, for example, created a are some tips on speaking and appearing on air: YouTube video when he was recruiting for the company. “Instead of writing Apart from voice warm-ups and other an article about it, the video got a vocalization techniques, make sure huge amount of organic traction while to write a script prior to broadcast. showcasing our company’s personality,” Prepare key talking points and map he says. out the timing of topics you will cover. For a low-budget production, >EXPLORE NEW MEDIA invest in a GoPro camera, tripod, and But unlike a text post, which is relatively microphone, then find a quiet place straightforward, producing multimedia to shoot. Preferably, the background should be a plain wall or a tidy desk. content requires skills in video and Learn some basic video-editing sound recording, editing, graphics, skills. “Give editing a crack, and animation, which may be difficult so that you learn it and can quality- for small business owners to make manage others later on,” says themselves. “Unless you have experience All Famous Digital CEO and [in these areas], everything is harder co-founder Robin Leonard. than writing a blog,” says Leonard. Lanot’s advice is, “Figure out what is the most useful thing that your readers can get from you, and bank on that. Find something unconventional that you can share in the blog.” Even if you’re lacking in the skills department, you Leonard suggests creating as much Lanot. This way, readers will know what can find a graphic artist that you can content as possible. “If you could release a to expect, what to watch out for, and when. collaborate with. new video blog multiple times per day, that Podcasts may be easier to create, would be great, but most brands are limited >REACH NEW AUDIENCES so long as you have something by internal resources. For a brand [that’s To gain new markets, provide downloads, interesting to talk about. You can even still] starting out, I’d suggest getting into a information, tips, and other content do it at home with the use of a laptop or routine of releasing something weekly, or at that people outside your existing market a smartphone. Video production, on the least monthly.” will find useful. The free printable other hand, may be more expensive Scheduling posts per topic also makes it calendar downloads on Lanot’s blog and tedious to produce, but may give a easier for you to fill your blog with content have the highest search and hit rate blog more mileage. on a regular basis. “Create a skeleton of among her posts. types of posts. For example, Mondays The costs involved in producing rich >OPTIMIZE CONTENT can be for freebies, Tuesdays can be for media content are minimal if you can go When creating video or any image interviews with industry professionals the do-it-yourself route. However, expect content within the blog, embed the and leaders, Wednesdays can be for new to shell out for advertising if you want these video on your website with a thorough product features, and so on,” suggests posts to become viral and get more reach. text description or transcript so that Says Leonard, “If you spend resources on Google recognizes it in searches. “If creating high-quality content like video, you have a YouTube video optimized “Figure out what podcasts, infographics, or white papers, you correctly with keywords, that video should absolutely invest a serious budget to is more likely to rank on the first page is the most useful advertise them so your effort in the creation immediately than a web page with thing that your process isn’t wasted waiting for organic the same text,” Leonard explains. As virality, which is very difficult to achieve.” S E the “holder” of the video, the blog is The text blog is here to stay, but G readers can get from A promoted along with it. Leonard says today’s entrepreneurs don’t I M Y T you, and bank on have much of a choice but to join T E >SET A SCHEDULE the bandwagon and start creating G M that. Find something O Unconventional blog content requires different kinds of content. “Sooner R F more time and effort. Lanot writes on or later, entrepreneurs will need to S unconventional that N her blog at least once or twice a week, get their heads around this, as it will O I T A but her graphics posts only come around become a norm soon and every company R you can share T S once or twice a month. She also posts will be forced to create rich media U L regularly on her social media accounts. in the blog.” content,” he says. E L I

www.entrepreneur.com.ph/themagazine JUNE 2015 45 TECH DIGITAL ALLOWANCES

VMoney normalizes paperless transactions for employers and employees

s Filipinos become a more mobile and The VMoney suite can be applied incorrect pay, for example—sometimes tech-savvy workforce, employers to companies of any size—especially would take several days to resolve. Now, A need to evolve with the digital times. since many of their services are tailored with V Money, [our] accounting [team] can Cashless solutions, which last year for unbanked or on-the-go users. In a add pay to an agent’s account 24/7.” saw widespread use locally, can help month, VMoney can rack up to 1,000 Many of PNI-KMPG’s employees did businesses boost efficiency, convenience, transactions from its clients, the bulk not have credit cards, which made travel and transparency with real-time of which come from its TAPnPASS and expenses and reimbursements a hassle. transactions. various funds disbursement solutions. But with the VMoney MasterCard, the “The world is undeniably making the TAPnPASS, though recently utilized by company’s accounting team is now able to shift from paper money and metal coins to bus companies like Philtranco and Jam reimburse or even fund travel expenses digital,” says Ralph Santos, chief executive Liner for their accounting processes, is in real time. Supplying rewards and officer of paperless payment solutions ideal for micro-transactions common to incentives can also now be done at any provider VMoney. “The VMoney platform smaller-scale projects and businesses, time, whereas previously, employees was initially built to address the growing says Santos. Because TAPnPASS doesn’t would only receive these during the gap between the bank and the consumer require PIN verification, TAPnPASS- next payroll cutoff. Its agents now use [by presenting] a more cost-effective and enabled devices are protected by a VMoney for round-the-clock banking quicker way for people to send money.” proprietary security and authentication access via the V Money app, online, or Its contactless payment products and application that encodes stored value data even through SMS. “Our agents are now services—which are secured by near-field to prevent fraud. buying load and paying bills through communication technology—allow for PNI-KMPG Inc., an outsourcing VMoney, saving them both time and bills payment, prepaid load purchase, and solutions firm, began using VMoney’s money,” claims Kinsella. Prepaid MasterCard issuance. VMoney services last year, after going through Santos reveals that VMoney will soon also has tie-ups with partners like Bancnet, several other payroll solutions in the past. also enable their business clients to LoadCentral, and Dragonpay, which, “When you’re distributing payroll to accept payments by verifying a customer’s respectively, support its bills payment almost 2,000 [employees] across multiple identity using the latter’s mobile phone. services, prepaid load services, and sites, issues invariably occur,” says co- VMoney is also planning to establish its interbank fund transfer capabilities. founder Nathan Kinsella. “Simple issues— own ATM network.—Victoria Vizcarra

D N A L O N R A Y B N I O T A R T S U L I L

46 JUNE 2015 Entrepreneur Philippines WATCH AND LEARN

How giving online seminars can work for you

f you’re looking to widen your Internet need, and is looking to explore content reach beyond social media posts marketing, should consider hosting or I and blogs, why don’t you try coming taking part in webinars. Secuya says POINT AND SHOOT out with webinars? “Webinars are, coaches, consultants, and educators Here’s how to make your essentially, seminars conducted on the looking to move past traditional models webinar watchable: Web,” says Internet marketing consultant can also be tapped as webinar speakers. Ben Francia. Pick topics that you’re passionate BE PREPARED As the speaker, Webinars allow you to reach out to a about. “People will buy into you, and not make sure you know your stuff wider audience, build your mailing lists, exactly whatever it is that you’re selling,” to be able to field offbeat questions and generate leads for your business. Secuya says. from participants. Tom Secuya, chief imagination officer Since you can shoot a webinar DON’T HOG THE CAMERA of Carve, a Davao-based consulting and anywhere, the costs of producing one are Alternate between your camera, outsourcing company, says webinars “close to insignificant,” says Francia. If your slides, and other visual tools allow you to “open your business and you’re going to take the do-it-yourself to keep the audience engaged. yourself up to [thousands of] people, all at route, all you need are a monthly Internet the same time.” connection; regular fees for webinar MAKE SURE EVERYONE’S ON As an entrepreneur, speaking at platforms like GoToWebinar, WebEx, THE SAME PAGE Outline the webinars can help establish you in your and WebinarJam; and a laptop that has webinar’s objectives before the industry. The more webinars you do, and a built-in microphone and webcam. You webinar starts, and summarize the more people learn from you, the more can also buy external microphones and your content at the end. people may recognize you. These also cameras for better video and audio. GO LIVE Live webinars keep the help establish trust and good working Another option would be to work with S audience engaged as opposed to E relationships with your market. a firm that offers webinars as a service. G recorded webinars, which may A Even if attendance is unpredictable— If all you want to do is show up and come out as artificial. I M Y Francia says the average show-up rate for talk, you can do just that: Companies T T E free webinars is around 50 percent—the like Carve can handle everything from KEEP IT SHORT AND SWEET G M content and delivery quality should pre-event prep work like promotion and Keep webinars as short as 30 O R remain the same. registration, to recording the webinar minutes to as long as an hour. F O T Francia says anyone with skills or itself, down to post-webinar reports. O H knowledge that address a consumer’s —KC Calpo P

www.entrepreneur.com.ph/themagazine JUNE 2015 47 TECH BITS

CREATIVES AT WORK This month, graphic design startup Canva launches Canva for Work (canva.com/work), specifically targeted to aid companies in creating social media graphics, presentations, and other marketing materials. Prior to the launch, over 200,000 companies and organizations were already regular users of Canva. “Canva for Work will make it even easier for individuals and teams to produce their own branded graphics,” says Melanie Perkins, Canva CEO.

SMARTPHONE FEVER

lmost 15 million smart devices were shipped Since 2013, the total amount of smartphones A to the Philippines—with smartphones priced below US$100 has quadrupled. Models accounting for a majority share of 81 percent, with screen sizes between 4.5 inches and STILL CLOUDY and tablets at 19 percent—in 2014, leading 5.5 inches have doubled to adapt to Filipinos’ the International Data Corporation (IDC) social networking and content consumption To encourage cloud usage, software and to remark on the “shift in market dynamics,” habits. “Filipinos have appreciated being able to hardware should not whereby foreign vendors flooded the country browse content from even bigger screens,” claims only meet the growing with affordable smart devices, while local players IDC—a trend that also explains the phablet’s demand for cloud agility improved their smart device models (devices with screens between 5.6 to 6.9 inches) and operational scale, but to stay competitive. 61 percent year-on-year growth. also mitigate the security and governance concerns of enterprises, says Elie Hanna, president of Ericsson Philippines and Pacific Islands. TELCO, STATE UNIVERSITY Enterprises have yet L to fully embrace the N

COLLABORATE cloud—74 percent of Y B the largest enterprises S N worldwide cite security O I A new generation of young engineers will be able to augment T and governance as major A their textbook-reading with hands-on training at the UP-Nokia concerns, based on Te ecommunications Engineering La oratory—a resu t of a U data from Ericsson. Of L partnership between the University of the Philippines (UP) and L I this number, 17 percent the Nokia-Manila Technology Ce nter. operate on a hybrid S he newly inaugurated learning facility, which opened E cloud system; 16 percent in Apri , is ocated inside the E ectrica and E ectronics A have enterprise resource I M Engineering Institute at UP’s Diliman Campus. Here, students Y planning workloads T will learn more about telecom-specific topics, including T on the cloud; and 27 E radio resource management, radio resource control, mobility percent opt to just use M management, air interface architectures, and ce u ar systems. R digital commercial apps F The lab is also stocked with state-of-the-art e quipment from O on the cloud. T Nokia Networks, such as a radio access network that’s able to O connect user devices to one of its core networ s in Asia. H

4 JUNE 2015 Entrepreneur Philippines 50 THE P50,000 QUESTION 30 smart ways for entrepreneurs to spend a windfall

58 SMALL LOANS, BIG DREAMS Thanks to small, accessible, no-collateral loans, small business owners are getting a leg up to start and grow G A their business L I R A 68 WHAT MAKES D Y R A GREAT BRAND? I A Learn the secrets D Y of staying power from a B O 162-year-old company T O H P

www.entrepreneur.com.ph/themagazine JUNE 2015 49 50 JUNE 2015 Entrepreneur Philippines FEATURE THE P50,000 QUESTION

3 0 S M ART W A Y S F O R E N T R E P R E N E U R S T O S P E N D A WINDFALL

WRITTEN BY JENNEE GRACE RUBRICO, DULCE CASTILLO�MORALES, A N D JOE ESGUERRA ILLUSTRATIONS B Y JAYKEE EVANGELISTA

f P50,000 landed on your lap, how would finances better, says there are four different you spend it? kinds of expenses: productive, protective, I There are infinite ways you can spend lifestyle, and destructive. He says productive that kind of money. Of course, you can put expenses ensure you make more money; it in a savings account. But why would you? protective expenses are about safeguarding your Armand Bengco, a financial advisor and money; lifestyle expenses are things that help executive director at the Colayco Foundation you and your family enjoy life; and destructive for Education Inc., says parking your money expenses are wasteful expenses that don’t add to in a savings account is not enough. Saving is your life. For the sake of this story, we’ll focus on just part of financial wellness, but you have to productive, protective, and lifestyle expenses. invest your money, too. It’s easy to go through P50,000. That’s why In an article for Entrepreneur.com in January, we identified 30 ways you can spend that kind Garrett Gunderson, CEO of Wealth Factory, a of money wisely. Here’s hoping that after the group that helps business owners manage their purchase, buyer’s remorse won’t set in. >>

www.entrepreneur.com.ph/themagazine JUNE 2015 51 PRODUCTIVE SPENDING

01 ENROLL IN A 02 TAKE SPEECH LESSONS 04 LEARN A NEW LANGUAGE MANAGEMENT COURSE Speech courses at John Robert Powers Sure, you can always hire an interpreter, What can be more productive than could cost as low as P5,000 for one-day but you’d be able to build relationships learning new stuff ? Management courses classes. Another school, SpeechPower, better if you show your potential business can give you a solid framework for offers a full program on Persuasive partners that you made an effort to learn running a business. “Anything that will Presentation for P6,500, inclusive of 12 their language. lead to your self-improvement, especially meetings running for two hours each. Rosetta Stone, a provider of language improvements that will further help you Henry Ong, a certified management learning software solutions, offers courses run your business more effectively, is a consultant, however, thinks that it would in more than 30 languages. Beginner worthy investment,” says Arturo Ilano, be better to hire someone with good modules start from $229, available as a professor at the Cesar E.A. Virata School communication skills rather than spend CD-ROM or via instant download. of Business at the University of the money and time training. “Why not hire Philippines-Diliman. someone who can speak well rather than 05 HIRE A DESIGN The Asian Institute of Management train? Maybe it’s cheaper,” he says. COMPANY TO IMPROVE offers a range of certificate courses that YOUR LOGO, COL LATERALS, run for a week for less than $1,000. Other 03 BUY PRODUCTIVITY AND PACKAGING organizations and schools also offer an OR BUSINESS BOOKS A new logo could cost as little as P800, and array of training courses that run for a “Buy into additional learning and it will with a lot of leeway to trade up, you could week or longer. never be a bad investment,” Ilano advises. have your pick of the best design companies Depending on where you look, online Start with books deemed by book review in the country. courses could cost you nothing. Coursera, sharing site Goodreads.com to be among Packaging design costs more, but there an online education platform, partners the best business books of 2014: Think Like are options within the P50,000 budget. with universities worldwide to offer a a Freak by Stephen Dubner and Steven On its web site, advertising agency wide array of courses for free. Levitt, Creativity, Inc. by Ed Catmull and Webrandd offers a package for brand Amy Wallace, How Google Works by Eric architecture, inclusive of three to five Schmidt and Jonathan Rosenberg, Leaders studies, three to five revisions, and final Eat Last by Simon Sinek, and Thrive by artwork using Adobe Illustrator CS5 PC Arianna Huffington, among others. format, for $1,000.

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06 SHORE UP YOUR SET MONEY GOALS 09 EAT HEALTHY WOR KING CAP ITAL While a good thing, a windfall is more You can’t be at the top of your game if This is particularly important if the of a one-shot deal than a regular you’re not eating properly. A growing business is growing. “If you have a small occurrence. Financial advisers stress number of companies can deliver healthy store, then use the windfall to purchase the importance of having money meals to anywhere in Metro Manila. more inventory. And if you’re offering a goals for meeting your business’ Healthy food delivery service Sexy Chef, service, then buy technology or assets financial goals. for one, delivers two full meals—lunch that can further improve or speed up “There will be rough pat ches as the and dinner—five or seven days a week, customer service, such as investing in business moves forward. With clear with packages that start at P1,500, money goals, it acts as a l ighthouse customer relations management software depending on your dietary needs. that steadies your entrepreneurial or services,” Ilano says. hand when difficulties come,” says 10 GET A GYM MEMBERSHIP financial advisor Joe Ferreria. “Cre ating 07 SPRUCE UP YOUR OFFICE a business should have a financial OR UNDERGO AN EXECUTIVE It won’t be much, but it could help. “If you objective that is set beyond the hor izon. MEDICAL CHECKUP are in fact receiving clients and you need It must be exciting, challenging, and A gym or fitness club membership offers to make a good impression, then sprucing rewarding. It must be a little bit beyond you access to expensive facilities and the up your office becomes a worthwhile your reach that it requires you to st retch chance to meet like-minded people who investment because first impressions last,” out to get it.” will encourage you to follow through Ilano concedes. Arturo Ilano, profes sor at the Cesar. with your health goals. Membership at E.A. Virata School of Business at the Anytime Fitness, a 24-hour fitness club, University of the Philippines-Diliman, 08 ADD IT TO YOUR RESEA RC H ranges from P2,300 to P2,500 a month says that financial targets ensure that AND DEV ELOP MEN T FUND the business continues to be a going depending on the package. Be warned, though—P50,000 might feel concern. “If financial targets are not Meanwhile, an executive check-up like a drop in the bucket. Ilano says you met, then chances are your business helps you spot illnesses you didn’t know probably won’t even feel it, not when will grind to a halt as soon as you run you had, and allows you to make lifestyle venture capitalists are funding you in out of cash. This is a scenario that changes to improve your health. Screening the millions if you’re working on a really happens quite often to micro and small packages at St. Luke’s Medical Center in good idea. enterprises,” he says. Quezon City start at P10,712.

www.entrepreneur.com.ph/themagazine JUNE 2015 53 PROTECTIVE EXPENSES

11 BUY INSURANCE 12 PAY OFF DEBT PEACE OF MIND Whether you’re a business owner or not, It is always a good idea to pay down any buying insurance should be a priority. kind of debt. Not only will it do wonders Investment adviser Efren Ll. Cruz defines protective expenses as Efren Ll. Cruz, chairman and CEO of for your peace of mind, it will also save “expenses that—in the case of partial Personal Finance Advisers Philippines you from taxes or interest on those or total loss—can re store an item to Corp., urges business owners to buy debts. “Pay off as much outstanding debt its prior state, or restore for a limite d insurance for their most important as you can because, chances are, what amount of time the productive capacity asset—their life. This should be followed you’re paying in interest will be far more of a person or item.” Thus, a wind fall of by buying insurance on their business than what you’ll be making from that P50,000 c an restore your peace of mind assets, he says. P50,000,” Ilano says. But if you are relying and actually give you a second wind, Insurer American International Group on interest-free loans from friends and so to speak. The primary consideration Inc., for instance, offers businesses family, then this is not an issue, he adds. when choosing, he says, is your accident and health insurance for financial goal in life and risk preference or tolerance. their employees. It also offers casualty 13 INVEST IN MUTUAL FUNDS, insurance to provide protection against UITFS, ETC. legal liability for bodily injury and You won’t go wrong if you invest in 14 INVEST IN STOCKS property damage claims suffered by a mutual funds, unit investment trust funds, If you want more control over your third party arising out of an insured’s exchange-traded funds, and variable finances, investing in stocks may be business activities and products sold. universal life insurance, among others. a better option for you as opposed to There’s also an insurance product Anna Lissa Chan-Macabanti, Sun Life investing in pooled funds. Since you’re that protects companies from the financial advisor, says investing in mutual basically on your own—that is, you don’t consequence of property damage, funds yields higher returns than savings in have a portfolio manager helping you which includes potential loss from banks. Because the money is invested in a track which companies will do well or business interruption, resulting in diverse portfolio of securities, it allows clients not—you have to be always on your toes. reduced productivity. to own a wide range of securities from various As legendary investor Warren Buffett has companies. “[Investing in mutual funds] advised when it comes to investing: “Be lessens exposure to risks compared to fearful when others are greedy, and be owning one or a few securities,” she says. greedy when others are fearful.”

54 JUNE 2015 Entrepreneur Philippines FEATURE

15-16 OPEN A SAVINGS ACCOUNT 18 AD D TO YO UR 20 HIRE A FINANCIAL OR START A COLLEGE FUND RETIREMENT FUND PLANNER FOR YOUR KIDS Socking away P50,000 into your You might as well go the distance and This may be a good time to kickstart that retirement fund would be a big boost, hire a professional to help you take care college fund that you have been meaning to especially if the money were invested on of your finances. The beauty of having start for your children. Opening individual the right instrument early on, Biolena a financial planner is that you have an savings accounts for all your children is a says. “A one-time P50,000 investment adviser not beholden to any financial smart idea, too. It will get them, especially would already be worth P1.5 million in institution, and thus won’t be pushing the grade-schoolers, into the money-saving 30 years, if invested in a stock fund you to buy certain investment products. habit. Maybe you can convince your little earning 12 percent per year,” he says. Instead, he’ll make sure to recommend a ones to add those coins and loose bills they Now, that is P1.5 million more for you product or service that suits you best, have saved in their piggy banks or alkansya during retirement, an amount which can says Biolena. into their savings account. already mean additional funds should Independent financial planners you or any of your family members need should have your best interests as a 17 ADD TO YOUR hospitalization, medicine, a caregiver, or goal, agrees Cruz. “A financial planner EMERGENCY FUND even a vacation, he says. “Contrast that if worth his salt will not sell any product Financial adviser Rienzie Biolena says an the same amount would just be allocated first, he will come up with a plan for his emergency fund, ideally worth six months for a gadget or any asset that really goes client based on the latter’s assumptions of paid expenses, is critical not just for down in value over time.” about the future—not based on standard every family, but also for every individual. assumptions of providers of financial “For a two-income family, three months’ 19 MAKE A WILL products. The end result will be strategy worth of emergency fund would suffice; Hire an estate planner. “Planning for one’s recommendations on how to achieve such for a one-income family, six months’ estate is one arduous and complicated a future. Only when the client is ready worth would be more suitable. Still, task. But the benefits—harmonious to execute will the financial planner two-income families or even individuals relations among surviving family recommend third-party products, or sell can also strive for six months’ worth, members, a secure future for them, products under his wing, if he is licensed depending on the level of ‘comfort’ they or continued charitable support to an to do so,” he adds. have for this buffer fund,” he says. institution—is all worth it,” says Biolena.

www.entrepreneur.com.ph/themagazine JUNE 2015 55 LIFESTYLE EXPENSES

21 PLAN A FAMILY HOLIDAY WHY IT’S IMPORTANT TO 23 BUY AN ENTERTAINMENT Whether you go out of town or opt for CENTER a staycation, a short break not only DO COMPARISON SHOPPING You don’t have to be a movie or music refreshes your mind and body, you’ll Comparison shopping allows you to buff to appreciate a good entertainment also have the opportunity to bond compare products offered by different center. Sports fans will love the high- with your family. Only this time, do merchants. In essence, when you definition images of weekend match-ups, yourselves a favor and leave the gadgets comparison shop, you’re trying to find while gamers will appreciate the stunning the item that will most likely give you at home. “If you’ll just bring your gadgets visuals and the crisp, booming surround the highest possible satisfaction given with you, then you might as well stay sound of their favorite console games. A your budget constraint. It may seem at home,” says personal finance coach troublesome at first—after all, checking good option is the LG BH9540 TW Aya Laraya. You can find value for money out stores in different sections of a mall Blu-ray Home Theater System, which vacation packages and hotel deals at sites (or in some cases, even those located costs P45,000 on Lazada.com. agoda.com and asiatravel.com. in other malls) is exhausting and time consuming. But the biggest benefit of 24 BUY JEWELRY 22 GET A GOOD NIGHT’S SLEEP comparison shopping is that it minimizes Laraya says that the one advantage of Nothing beats a good night’s sleep after the possibility of buyer’s remorse. jewelry over cars and gadgets is that they a tiring day—it keeps you healthy and The International Finance don’t depreciate—“their value either stays Corporation, the private sector arm of gives you the energy you need to face the the same or appreciates,” he says. On the the World Bank Group, explains that the next day’s challenges. But there are times other hand, Biolena believes that buying human mind has a tendency to become when sleep becomes elusive. Having a irrational when it comes to purc hasing jewelry isn’t worth it unless you’re buying good bed and blanket can help set you off decisions. This, coupled with the sens e a high-end brand, or a type of jewelry that to dreamland. At SM Our Home, your of urgency coming from the salesmen, is likely beyond your P50,000 budget. P50,000 will buy you a complete set—a sometimes pushes you to skip t he due If you’ve decided to plunk your cash bed frame (P27,000 and up), foam and diligence required of big spending into precious stones and metals, research mattress (P13,000 and up), giving you decisions. So before you hand over your first. To give you an idea of how much plenty to spare for bedsheets and pillows cash or swipe that credit card, it usually these things cost, an 18-karat diamond (P500 and up). wouldn’t hurt to check if there are ring at Ocampo’s, for instance, costs better deals elsewhere. P30,000 to P50,000.

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25 BUY LOCAL ART 27 UPGRADE YOUR 29 GET COOKING LESSONS Experts advise would-be buyers to tread MOBILE DIGITAL DEVICES For some people, cooking is a way to carefully. “We don’t really have a thriving Since you also use your device for work— relax and get away from the daily grind, art scene here and it’s a very cliquish you can’t deny that, thanks to the Internet, even for just a few minutes. At the same community. Unless you’re really part of cloud, and mobile, you can now bring your time, it can also be a means of building that community, how can you get a good work with you even if you step out of the deeper connections with your loved ones. deal?” says Laraya. office—you can always rationalize the Cooking lessons allow you to introduce If you’ve done your homework and purchase. So, consider using the P50,000 new dishes, new culinary techniques, and feel confident about your ability to spot windfall to arm you or your staff with the new ingredients to family meals, helping good artwork, check out the exhibits and latest digital devices. enhance the overall living experience catalogues at the many different galleries in your home. And they’re not that around the city, such as Silverlens, Finale 28 TAKE UP A HOBBY expensive, too: you can take part in a class Art File, or even the ones who display at Whether it’s painting, collecting wines, at The Maya Kitchen for as low as P1,500. the Art Walk in SM Megamall. Or better or scuba diving, getting a hobby is good yet, head straight to Paete in Laguna or for the soul. If you’re taking the plunge, 30 BUY IN VESTMENT Angono, Rizal to check out the works of Divers.ph says an introductory PADI PIECES FOR YOUR WARDROBE budding artists. (Professional Association of Diving If you’ve put off buying investment pieces Instructors) dive course costs P4,000, for your wardrobe for the longest time, 26 UPGRADE YOUR KITCHEN inclusive of gear rental, tank use, resort perhaps getting a P50,000 windfall will AND LIVING RO OM use, plus lunch. An open water dive spring you to action. Buy pieces that Upgrading the look and feel of the kitchen certification costs between P12,000 to never go out of style. For instance, a and living room, where you get to interact P25,000. While all gear can be rented, bespoke suit by Tino Suits in Makati will with family members and friends the expect to shell out another P30,000 set you back at least P25,000. E most, is a way of telling your loved ones for the basic getup. In comparison, how much you value the time you spend an introductory freediving course is with them. For P50,000, you should be about P6,500, and a three-day beginner able to purchase new fixtures for your certification costs P13,000 with living and dining rooms at SM Our Home. Freediving Philippines—but you won’t need much gear except for your dive suit.

www.entrepreneur.com.ph/themagazine JUNE 2015 57 SMALL LOANS,

THANKS

TO SMALL,

A CC E SS I B L E ,

NO-COLLATERAL

LOANS, SMALL

BUSINESS

OWNERS ARE

GETTING A

LEG U P TO S TART

A N D G ROW T H E I R

BUSINESS

WRITTEN B Y MARICRIS CARLOS A N D JOHANNA POBLETE

PHOTOGRAPHY B Y DAIRY DARILAG

STYLING B Y BELLE CAMARSI MAKEUP B Y T R I C I A M I R A N D A

58 JUNE 2015 Entrepreneur Philippines FEATURE

ouldn’t it be a lot easier if money grew on trees? Raising capital is still one of the biggest W hurdles for businesses, says a report, released last year, on entrepreneurship in the Philippines. In fact, the Global Entrepreneurship Monitor says a third of Filipino entrepreneurs blame lack of financing and poor profitability for business closures. Here’s where small loans, or microfinancing, can come in. According to the Bangko Sentral ng Pilipinas, microentrepreneurs have outstanding loans amounting to P9.3 billion as of June last year. That figure is likely to grow as more small businesses turn to microfinance to raise capital. Rita Duenas, BanKO’s chief marketing officer, says the aim of microfinance is to provide financial services to small businesses (and even to low-income individuals) that otherwise have no means of accessing these services, and typically do not qualify for loans from banks. Dr. Jaime Aristotle Alip, founder of microfinance leader Center for Agriculture and Rural Development Mutually Reinforcing Institutions (CARD MRI), says microfinance programs are designed to provide loans to people shut out of the formal banking system because their incomes are too low or are uncertain, or they have no collateral. If you need capital of not more than P300,000, microfinance may be the answer for you. It’s a good option for the untried business owner who doesn’t have credit history or collateral to speak of, as microfinance is considered consumer-friendly since it aims to provide credit to people who otherwise won’t have access D R E A M S to credit. You’ll be in good company, too. Here are four business owners who were able to start and grow their businesses, thanks to microfinance. >>

www.entrepreneur.com.ph/themagazine JUNE 2015 59 With the boost in working capital, REALITY BITES she’s also tak ing the opportunity to press ahead with plans to export to the United NENE TAMAYO, NENE PRIME FOODS States, Canada, and Dubai this year. She’s already working to get clearance from the Food and Drug Administration for her products, which now include bangus in hen Nene Tamayo took home the She started filling up the loan application olive oil, which sells for P300; bangus in P1-million prize for winning reality in September last year, but only completed corn oil, P200; tuyo in oil, P210; tinapa W TV show Pinoy Big Brother in 2005, it in October. in olive oil, P220; and pickled chili, P100. she thought she was golden. She finally BanKO approved the loan in November She also has spicy variants for the bangus, had the money to put up the businesses and agreed to lend her P300,000 after tuyo, and the tinapa. she’d been dreaming about. Her winnings doing a credit investigation on the With her renewed focus on the business, also included an instant franchise business. The loan payments, she says, are she also wants to widen their local business with Ink for Less. manageable at P17,750 a month for the distribution channels. At present, the While she successfully ran the next three years. The bank didn’t ask for bangus products are sold at ECHOstore, Ink for Less franchise until the term collateral, but made sure the business had Sugarleaf, Bibliorganics, and Whole Food ended in 2007, she and her husband, the capacity to pay back the loan. Tamayo Remedy, but she’s also targeting to sell at Anthony Plamio, were forced to close says she had to prove to BanKO that Nene 7-Eleven, Shell Select, and roasted chicken the businesses they put up from her Prime Foods was an ongoing enterprise chain Baliwag, for the pickled chili. winnings from the reality show between and that it was registered with the Bureau With the business gaining traction, 2008 and 2009: a comedy bar in Angono, of Internal Revenue, the Department of Tamayo is feeling golden again. She’s Rizal, a dance studio in Quezon City, a Trade and Industry, and other relevant confident she has the best Spanish-style convenience store, and a printing and government agencies. She also showed bangus in town and is bullish about the corporate giveaways business. But with so loan officers their sales reports and their business—helped along by word of mouth, many things taking up the couple’s time, daily and monthly production schedules. and even a feature on Kris Aquino’s they were unable to focus on any of the Now, Tamayo’s grateful she got the Kris TV , which immediately boosted sales to businesses, forcing them to give up on the loan. With the additional working capital, P500,000 after it came out. In fact, business ventures one by one. last December, she was able to buy the is so good, Tamayo is confident they’ll be Losing nearly everything was an equipment she needed to really ramp up able to hit P2.5 million to P3 million in sales eye-opener. “Sagad na sagad talaga production: a freezer, pressure canners, this year. “ Noong una,doubtful pa ako sa kami noon,” Tamayo recalls. “Dahil steamers, bottles, and packaging labels product. Nahihiya ako na baka mapahiya lang nagkaroon ako ng puhunan, parang lahat were all bought using the loan, and she ako at hindi makapasa yung product ko. Lahat ng business gusto kong gawin. Na-excite was also able to upgrade their production tuloy ng kakumpitensya kong products binibili talaga ako masyado,” she says. On the area with more food-safe stainless steel ko at tinitikman ko, so I can improve my own bright side, though, she recognized it as counters. All in all, she spent close product . Confident ako na mailalaban ko a learning experience: “ Doon naman ako to P200,000. yung produkto ko.” natuto.” And so, when she tried again with a home-based business venture, Nene Prime Foods, she knew she had to be hands-on. Tamayo set up the business as a single proprietorship in 2011 to make and sell MICROFINANCE BASICS Spanish-style bangus. But, with a young son she needed to take care of, she only What are microfinance loans? Microfinancing loans are small loans went into seasonal production for bazaars granted to borrowers for their microenterprises and small businesses. and for the Christmas season. Beginning These loans are typically unsecured. last year, however, Tamayo decided to How much can a borrower get? On average, microfinance clients borrow focus on the business full time. To grow the about P25,000, from a l ow of P2,000 to P5,000. For a time, the maximum business, she realized she needed capital. principal amount ca n be as high as P150,000, but in 2011, the B angko She initially balked at taking on new Sentral ng Pilipinas expanded the loan amount to P300,000. loans, though she needed to consider it to Does the borrower have to provide co llateral? A microfinance borrower fund the business. “Initially, I really didn’t is not likely to be able to borrow from a large commercial, thrift, or rural want a loan. Ayoko ng obligation dahil bank. Thus, microfinance loans are typically unsecured, for relatively short katatapos ko lang bayaran yung loan namin periods of time. for our car.” In fact, Tamayo hemmed What kind of interest can a borrower expect? Lenders typically charge and hawed about her loan application market-based interest rates, allowing the institution providing microfinance to BanKO, the microfinance-focused services to cover administrative costs, provisions for loan losses and savings and thrift bank of Bank of the intermediation or funding costs, and also to realize some bottom-line gains. Philippine Islands and Globe Telecom. Source: Bangko Sentral ng Pilipinas

60 JUNE 2015 Entrepreneur Philippines FEATURE

www.entrepreneur.com.ph/themagazine JUNE 2015 61 GROWING UP LEONARDO ANGELES, L. ANGELES MACHINERIES CORP.

ndustrial machine manufacturer L. Apart from the bank loans, Lamaco Angeles Machineries Corp. (Lamaco) also took advantage of technical grants I may no longer have a problem finding from the government. For instance, capital these days, but that wasn’t the the company bagged a technical grant case when it first set up shop in 1959. In from the Department of Science and fact, the founder, Lamberto Angeles, Technology (DOST) under the was only able to get the business started Small Enterprise Technology Upgrading after borrowing P50 from a bank, which Program, or SETUP, which allowed the he used as downpayment for the lathe company to acquire a brand new lathe machine he needed to get his machine machine, which was crucial for shop in Pasay up and running. its operations. His son, and now the company’s Now, Lamaco is a multimillion-peso president and general manager, Leonardo business. Leonardo sees Lamaco’s sales Angeles, says the microloan was just the doubling this year, from more than start. “Before siya magstart ng sariling P20 million in 2014. Sales have been business niya, machinist na siya. He was brisk because of the construction boom, a foreman at a big machine shop in Pasay. as they supply steel-bending and shearing Kabisado niya yung business kaya ’yun din equipment to roofing manufacturers. ang pinasukan niya. Habang palaki nang Additionally, Leonardo has also been palaki yung mga projects niya, dumadami able to expand the opportunities for the din ang mga customers niya.” Eventually, company. Since he’s a government scholar he says, his father was able to save and consultant, the DOST regularly another P50 to use as downpayment for sends him to hold lectures in different another lathe, the most essential tool in a parts of the country. This gave him the machine shop, and hire a machinist. opportunity to network with potential Lamberto again took out a loan in 1969 clients. “Ang laki ng naging impact sa to acquire a 350-square-meter property company [in terms of marketing],” he says. in Bacoor, Cavite, where the business is Now that roofing manufacturers have now based. Leonardo says that over the made it a practice to set up warehouses years, his dad acquired neighboring lots outside Metro Manila, he says they get in the area, so their factory now sits on a more orders for their machines. The 7,000-square-meter property. company also supplies materials recovery In fact, Lamaco has grown so big equipment, such as plastic shredders and that it’s gone beyond micro loans. Ten waste-management bioreactors, to local years ago, Leonardo decided to borrow government units. They also fabricate P500,000 from the Land Bank of the machines based on specifications Philippines (Landbank) in order to buy supplied by their clients. new machines to replace their aging His advice to business owners looking equipment, and to use as additional for capital to start their business? capital as they tried to grow the business. “Huwag matakot sa loan , kailangan mo Eventually, Landbank offered Lamaco siya,” he says. Lamaco only borrows when a standby credit line, which increases it knows it has revenues coming in— every year based on the company’s easier in their case, since most of their collateral and capacity to pay. Leonardo projects are repeat orders from regular says Landbank offered them a standby customers. Also, he advises to start with credit line because it was happy with the a small amount and make sure to check company’s financials. The standby credit your capacity to pay. “Yung loan dapat line, he says, is good for one year, which dun mo lang siya gagamitin sa business. the business can draw from any time. The Maraming bumabagsak kasi dina-divert credit line also allows Lamaco to enjoy yung loan—yung iba bibili ng sasakyan. better interest rates compared with a Madali nang bumili ng sasakyan kapag straight loan, he says. may pera ka na,” Leonardo says.

62 JUNE 2015 Entrepreneur Philippines FEATURE

BY THE NUMBERS

P9.3 billion The volume of microfinance loans extended to microenterprises as of June 2014 183 The number of banks with microfinance operations as of the second quarter of 2014, against only 119 in 2002

P186 million The volume of loans extended to borrowers, with loan amounts between P100,000 and P300,000, as of the second quarter of 2014

Source: Bangko Sentral ng Pilipinas

www.entrepreneur.com.ph/themagazine JUNE 2015 63 Moreover, the U.S. recession forced AGGRESSIVE ADVANTAGE large companies and their suppliers to close shop. The companies could not FLORO AND GEMMA SALINAS, FNDG SHELLS & HANDICRAFTS maintain operations because demand had slumped. Luckily, a small player like FNDG was able to position itself so it could still export to the U.S. “‘Yun ang he first time Floro and Gemma review —“Matinding interview kung paano factor na maging successful din kami, kasi Salinas, founders of FNDG Shells yung business namin, kung sigurado ba lahat nagsasara, ako lang nagbubukas. T & Handicrafts, borrowed P200,000 kami,” says Floro—but because they had Yung dati na order nila na P1 million , from CARD SME Bank Inc., they didn’t their documents in order, a network P300,000 na lang. Hindi na nila ma- really need the money. In fact, Floro was of buyers, and only accepted orders maintain ang kanilang mga kumpanya. disappointed to be given a repayment term that they could finish, the interviewer Yung natitira [na orders ], napunta sa of six months instead of three months. He conceded they could well afford to take amin…malaki na ’yun sa akin,” says Floro. figured, the faster they established a good out a loan. Now, FNDG exports to four clients credit history, the easier it would be to get Plus, they had the right timing: in the U.S. and Japan. Its portfolio has a much bigger loan approved when they CARD SME Bank Inc. needed them to widened from just coco-shell products really need it. prove to the Bangko Sentral that it could to seashell products, jacking up their raw The couple were used to beating the lend larger sums—the finance institution materials cost to P3 million each month. odds, having moved to Batangas to set up was in the process of becoming a thrif t Their income has also steadied because a backyard business in 1986, a phoenix- bank. “Agresibo sila, kami agresibo different production cycles meant that from-the-flames rebirth of an earlier din,” says Floro, whose accounting they would work on one product line enterprise they’d shut down in Cebu. background was an advantage, though he during another’s off-season. Juggling At the time, they had very little except had shifted careers to IT programming accounts has become second nature: For improvised tools and P4,000 loaned to long before he and Gemma, a commerce instance, rather than lose an account them by a former client, who wanted graduate, decided to seriously pursue when an old client doubled his order, them to keep supplying him with coco her handicrafts “hobby.” Both were but lowered his downpayment, FNDG shell items. Ground zero for FNDG were entrepreneurial: Gemma, who likes cars, brokered a deal with another exporter and a manukan that served as both workshop also dabbles in auto buy-and-sell, while sold at cost. and living quarters for the Cebuano Floro has just recently bought Saving isn’t a priority for the husband- workers who’d relocated with them, and a boat because he’s testing the waters of and-wife team, given negligible interest a kubo that became their home. But they Palawan’s tuna fishing industry. on bank deposits. What money they have gained a reputation for dependability, and goes to repaying their business loans, eventually won over a steady clientele. rather than allow interest rates to shoot In 2006, after two decades of supplying up further. “Tutal, andiyan na yung pera. handicrafts to the local markets, Floro Kung kailangan, ilabas, paikot-ikot felt they could start to export, never mind BORROWING DO’S lang,” says Gemma, indicating they also that scarcely eight years had passed since It might be easier t o get a loan maintain a large inventory and balances their first attempt went bust in 1994. from microfinance institutions in large commercial banks for easier “ Napag-aralan na namin kung saan kami than conventional banks, but business-to-business and business-to- pumalpak, ano yung mga problema dati, at you still have to pr ove you’re client transactions. kung bakit nag-fail. Kailangan lang namin worth the risk. Rita Duenas, In the event that they’ve got a little extra ng financing . Nakita ko na ang future BanKO’s chief marketing profit, they plow it back into the business. officer, says that, unlike requirement ay malaki ,” he explains. They’ve got 15 regular workers for whom commercial banks, BanKO And so began their campaign: They they provide housing. And they also need can’t always require clients to stocked up on inventory, streamlined submit their asset declaration, storage space, so newly bought property their production processes, kept overhead balance sheets, or financial is turned into residences or warehouses. costs low, and made their loan payments statements. “But this is not “Hindi kami nag-ipon para may capital. on schedule. Within a year, they’d gone to say they do not have the Ang inipon namin is for inventory , at saka from borrowing P200,000 to borrowing capacity to pay,” she points yung facilities ,” says Floro. P1 million. They’d also found a buyer in out. “In our case, we look at “Wala kaming pera, pero maraming the United States, who’d agreed on a huge the size of their business, their pera ang bangko,” he quips. “Basta in downpayment, allowing them to ship seven relationship with suppliers or good faith lagi—kung para saan ’yung loan distributors in the value chain, containers’ worth of items. “Nung bumalik mo, dun talaga gagamitin, at alam mo na and the number of years their kami sa export noong 2006 , wala kaming kung paano mo babayaran ‘yun. Good business has been operating. cancellation , wala kamingdelay , kasi We also look at the he alth of faith kayo sa iyong buyer, sa iyong tauhan, pinaghandaan talaga namin,” says Floro. their business, and usually sa bangko. Siguro walang magiging Convincing CARD SME Bank to loan require some documentary problema. Kung isa dun mawala, kung them money meant undergoing a rigorous proof whenever possible.” hindi buo, masisira ang diskarte mo.”

64 JUNE 2015 Entrepreneur Philippines FEATURE

www.entrepreneur.com.ph/themagazine JUNE 2015 65 to start Pillows & Bears Giftshop in 2005. LOOKING UP They bought two sewing machines for P10,000 apiece from their former boss, RAMIL FLORES, PILLOWS & BEARS GIFTSHOP and set up a makeshift factory in a wood- and-nipa house in Brgy. Sto. Angel in San Pablo City, Laguna, for which they paid P1,000 in monthly rent. hen the toy factory he’d worked in for want to give up the accounts he handled. To stretch the money, they convinced 15 years folded, Ramil Flores already “Talagang may pera doon sa negosyo na one of their old clients to give them a W had a Plan B. He knew he could make yun,” says Flores. “Na-mismanage lang yung 50 percent downpayment, which money from the toy business given a chance. kompanya namin kaya nagsara.” covered the costs of materials. They also Plus, having put himself through accounting He partnered with colleague Milo Silva convinced four of their former colleagues school while sewing toy bears, he did not and scraped together P30,000 as capital to come on board. Still, the capital could

66 JUNE 2015 Entrepreneur Philippines FEATURE

only go so far.“Kulang sa puhunan. and pillows of various sizes, to as many LEVELING UP Nag-start kami ng May, mga December as 10,000 through the peak months. To So you have capital. But you still have to run your business and nangutang na kami sa CARD [SME Bank meet stronger demand, they bought three make sure that it becomes a Inc.] ng P12,000,” says Flores of their second-hand sewing machines and hired profitable enterprise. How do you first loan, payable in six months. part-time workers. level up? Flores says business was brisk at the To pay for overhead, Flores and Silva Dr. Jaime Aristotle Alip, onset, with more clients coming in and had to borrow money, as there was founder of microfinance leader production ramping up from June all the usually a lag before they got paid. As they Center for Agriculture and way to February. They sold stuffed toys were producing more, they had to borrow Rural Development Mutually to gift shop owners, companies looking more from CARD SME Bank, until the Reinforcing Institutions for giveaways, and wedding suppliers loan size grew to P500,000. “Pag natapos (CARD MRI), says “successful needing customized wedding souvenirs. yung loan mo na P12,000 , doble na yung microentrepreneurs must be passionate about their business, Orders grew from an initial 100 bears uutangin mo, P24,000 , six months ulit. and thus pour their hearts, Pag natapos mo yung P24,000 , another minds, and time into it. They P12,000. Palaki nang palaki, hanggang sa must be innovative, always umabot ng P500,000 ,” says Flores. minding the ever-evolving It wasn’t hard to convince the bank to needs of their clients, and lend them money, says Flores, because responding creatively to these they had the purchase orders to show needs. They must always watch that money would be coming in. It helped their bottomline if they want to that they were up-to-date with their loan exist sustainably. They must payments. The P500,000 loan, he says, build their networks. They took a year to pay at 22 percent interest, must advocate for government policies and regulations that and they made it without trouble. provide conducive environment By 2008, they’d opened a mall kiosk, for microentrepreneurship.” Hugs & Touch, to ensure that they had Graduating from becoming a money coming in even when large orders microenterprise into an SME also dried up during off-peak season. This means facing a unique set proved a successful strategy, and they of challenges, he adds. That’s opened three more kiosks. why CARD MRI set up its thrift Apart from getting collateral-free bank arm, CARD SME Bank, and financing, they’ve also gotten training a finance and leasing company in product development via CARD MRI to address the capital requirements of CARD MRI Development Institute Inc. “ Nagbibigay members who graduated from sila ng oportunidad para ang negosyo mo microfinancing, and of non- lumago, mag-level up. Nagbibigay sila members, he says. Its efforts ng mga training at mga seminar ,” says seem to work: Alip says that, as Flores, adding that he even got sent on a of December 2014, CARD MRI had tour of the textile shops and toy factories 2.7 million clients, and repayment in Bangkok—this came in handy when rate was at 99.40 percent. their local textile supplier closed shop and they had to start importing cloth, initially from Thailand, and then later from Indonesia, too. Now the challenge is in getting more Typhoon Ondoy alone caused P100,000 workers and managing their production worth of damage, in the same year they schedules. He admits that the workshop had to close three of their mall kiosks. isn’t ideal, since they’ve opted to do most But things are looking up, says Flores. of the work manually, rather than buying They’ve got steady clients, and apart from expensive equipment that would speed their Hugs & Touch kiosk at the Bay City up production. They’d bought land in the Mall in Batangas City, they’re looking at hope of building a better workshop, but reopening one more. He doesn’t regret scuttled the plan when they realized their starting the enterprise, boasting that workers weren’t willing to commute far his four kids studied in private schools from their homes. because of the business. “ Dahil may They’ve learned to make do with what experience naman kami, tatakbo kahit they have, and it has cost them—two papaano. May market na, hindi na kami typhoons, in 2006 and 2009, destroyed mahihirapan. Kailangan lang talagang stock when the workshop’s roof caved in. pagtiyagaan,” says Flores. E

www.entrepreneur.com.ph/themagazine JUNE 2015 67 MAKES A

GREAT

BRAND?

68 JUNE 2015 Entrepreneur Philippines FEATURE

L E A RN T HE S E C R ETS O F

S TAYING P O WE R F R O M A

162-YEAR-OLD COMPANY

WRITTEN B Y DENISE LEE YOHN

n our consumer culture of shiny-new- commands the highest share of the global jeans object syndrome, it is increasingly market. Retailers credit Levi’s for having unique unlikely that a brand will survive—much brand assets they can’t get from other lines. As less thrive—for more than a few seasons. Gary Oneil, former creative director for J .C. But for 162 years, Levi Strauss & Co. has Penney, explains, “Levi’s has become a brand titan done just that. The staying power of the that scales across lifestyle, gender...this allows Levi’s brand stands out boldly in this era retailers to cast a broad net that captures a diverse I of pop-up stores, Snapchat-style startups, customer base.” and fleeting loyalty. Moreover, Levi’s continues to be considered hip. For perspective, consider that when Levi Strauss Complex, a website devoted to twenty-something emigrated in 1853 from Buttenheim, Bavaria, to males, listed Levi’s among its “15 Brands Hipsters the U.S. and founded his company, there were only Love,” alongside Band of Outsiders and other indie 31 American states. designers. Sightings of Levi’s-clad celebrities fill Another 32 years would pass before the the pages of style and pop-culture media. automobile was developed. Among iconic U.S. Shawn Parr, head of San Diego-based brand brands, only Anheuser-Busch (founded in 1852) and innovation consultancy Bulldog Drummond, has been around longer than Levi’s. Coca-Cola whose clients include Adidas, American Eagle D came about in 1892; Ford in 1903. Outfitters, and Nike, observes, “Levi’s is like the N A And yet Levi’s remains a formidable brand Rolling Stones or Johnny Cash. They’re one of the L O N today. Over 140 years after the first blue jean, all-time greats who defy and define the category, R A Levi’s remains one of the most recognized brands and without them, the genre wouldn’t be the same.” Y B in the world, sold in approximately 50,000 retail The secret to the longevity of Levi’s actually isn’t N O I locations in more than 110 countries, including a secret at all. The company uses classic brand- T A R the Philippines. building principles to maintain and grow its brand T S Fiscal 2014 revenue increased 2 percent over the equity. These are fundamental ideals that remain U L L previous year to $4.68 billion, and the company the keys to building a brand with staying power. >> I

www.entrepreneur.com.ph/themagazine JUNE 2015 69 COMMIT—AND Airplane, Levi’s sought to make a powerful emotional connection with its audience. In the ’70s and ’80s, STAY COMM ITT ED Levi’s turned to TV, capturing consumer attention with vignettes that were risqué at the time, including Above all else, Levi’s is authentic—and fiercely a commercial starring model Nick Kamen stripping committed to maintaining and reinforcing down to his boxers in a laundromat. The spots that authenticity. inspired a visceral response. The company got its start by selling built-to-last More recently, in 2009, Levi’s stirred viewers pants to miners during the California gold rush. with an expertly crafted and beautifully shot Demand spread across the nation, and as pioneering campaign titled “Go Forth.” The series of mini- gave way to manufacturing in the economic films sets black-and-white images of a Hurricane landscape of the early 1900s, Levi’s became the THE Katrina-ravaged New Orleans against a soundtrack clothing of choice for the working class. of Walt Whitman poetry. By celebrating the “brand During the mid-century deindustrialization period, for pioneers who are in the process of building a new the company’s denim became popular among rebellious COMPANY America,” Levi’s once again managed to capture youth subcultures. Its proposition as a genuine, original and convey a unique spirit. brand resonated with greasers and hippies alike. FAVORS In each of these campaigns, Levi’s stoked In the mid-1980s, Levi’s launched a campaign passion for its brand without describing its wares promoting its classic 501s, which rekindled excitement or promoting product features. In fact, it could and demand for the five-pocket jean originally MAINTAINING be said that Levi’s advertising has systematically introduced more than 100 years earlier. The company avoided selling its products—aiming instead for an returned to the effort again in the late 2000s. ITS BRAND emotional connection with consumers. “People love the original 501 because it is “We’ve been there with people for many of their timeless,” comments Levi’s CMO Jennifer Sey. “As a great and defining life experiences—big and small,” Sey brand that’s been around for more than 160 years, we INTEGRITY explains. “From first dates to the first day of school…our have clothed a lot of people and been a part of many job as marketers is to facilitate and amplify that great great, pivotal storytelling moments.” OVER storytelling to drive deep engagement.” These days, authenticity is one of the most common business buzzwords and desired brand traits—and with good reason. The Authentic Brand JUMPING DEFY THE TRENDS Index (ABI) has shown that the stronger a brand’s All brands need to evolve to remain relevant. perceived authenticity, the more likely people are to ONTO THE Levi’s, despite the powerful brand equity it has become advocates for it. Authenticity, ABI’s analysts established, is no exception. But the company favors observe, helps fuel success in today’s markets as maintaining its brand integrity over jumping into consumers search for greater meaning and sincerity LATEST the latest trends. from the brands they choose. People desire to “What has kept Levi’s in the forefront of the connect with products that feel safe and certain. TRENDS. ever-changing jean world is their market research— Levi’s clearly identifies its core purpose, attributes, and value—and then uses them as a compass for everything it does. This resonates particularly with today’s influential young consumers. “Brands that create purpose win Millennials’ hearts, and brands that are different and authentic win their minds,” says Jeff Fromm, co-author of Marketing to Millennials.

GO FOR AN EMOTIONAL RESPONSE The quality and integrity of Levi’s products is unquestionable. The rivets on the jeans have become a standard around the world, and the signature red-stitched selvage and double-needle stitching are superior design details. But the company’s brand messages have made a more culturally significant appeal. Starting in the 1950s with print ads featuring celebrity bad boys like Marlon Brando, and continuing into the late ’60s with counterculture radio spots set to psychedelic music from Jefferson

70 JUNE 2015 Entrepreneur Philippines FEATURE

MADE OF PROGRESS

COPPER RIVETS ED TA UTTON FL ATWIN Levi’s got its start as In 1936, it added as Buttons were used Designed by Walter the durable workwear an identifying mark on the original pair Landor in 1967, the of choice of gold the red tab stitched of 501s, designed 20 red batwing-shaped ACK-POCKET prospectors in the with LEVI’S to the years before the zipper housemark, signifying STITCHIN 1850s. The copper-rivet right back pocket of was created. Levi’s the upper portion of feature was created its jeans, where it still eventually replaced the Since 1873, Levi’s the back pocket, acts LEATHER PATCH by Jacob Davis, Levi appears today. buttons with a zipper, has stitched the back as visual shorthand In 1886, Levi’s Strauss’ tailor, who hoping to broaden pockets of its jeans for the brand. introduced a leather placed each copper the brand’s appeal to with two connecting patch branded with an rivet at points of strain female customers. double arches that image of pants that are to make the jeans But more recently, meet in the center. It so strong they can’t be sturdier. it reintroduced the is the oldest known pulled apart by button fly on the 501. apparel trademark two horses. in the U.S.

how they test products with a variety of the “new” identity include the shape of the diverse retailers and use that feedback to stitching that has been on the back pockets for address various fits, washes, and fashion more than a century, a modernized rendition elements to stay current,” says Billy of the two-horse mark, and the message Rudnick, general merchandising manager “Patented 1873.” for New York retailer Dr. Jays. “But they S Marketing strategies also tie strongly to E never go too far into the gimmicks that have T A the brand’s history and values. In 2013, Levi’s T misled many good companies.” S held a series of concerts along the oldest U.S. D At times, this stance caused the company E railway route, with stops in small towns. Social T to fall behind. In the early 2000s, for I media marketing communications, meanwhile, N example, the design team was late to move - R serve to educate consumers about issues such U into popular new fashion directions like E as water conservation, or to support social N colored denim for women and tailored E R justice leaders, as much as to promote products. P jeans for men. As a result, sales plummeted. E Levi’s recognizes that trend-following may be R But in many other instances, Levi’s was T the simplest way to attract attention and raise N ahead of its time, especially in areas of E short-term revenue, but following someone else’s M O social responsibility. Way back in the 1890s, R lead usually causes a company to stray from its F Levi Strauss established scholarships for N own brand identity. At times in Levi’s history, O I students at the University of California, S its managers learned this lesson the hard way. S I Berkeley, and ever since, the company M randing consultant Parr says Levi’s has “always R has pursued a mission that executives call E got to watch that they’re not trying too hard to P “profits through principles.” H be something they’re not. They’ve been at their best I T Strauss’ great-great-grandnephew Robert Haas, W when they are comfortable being Levi’s, leaning on the CEO from 1984 to 1999, launched a manufacturing D past, but being risk-takers.” T code of conduct for overseas suppliers. He was N I R A look at Levi’s offers insight into the P also the first Fortune 500 CEO to extend medical E commitment, courage, and consistency that goes R benefits to employees’ domestic partners and one into making a great brand. One of the longest- of the earliest corporate executives to champion standing companies in the United States, it thrives funding for HIV/AIDS research. on its identity as an original American brand in Adds Sey: “We invented the blue jean, provided an increasingly global marketplace. It represents C the first-ever women’s jean, and continue to innovate & S individuality and rebelliousness while appealing S today based on consumer need with greener U broadly, and it offers accessibility in an industry that A products, including the Water

www.entrepreneur.com.ph/themagazine JUNE 2 15 FRANCHISE

housands of visitors—the majority on the lookout for a good business T opportunity—are attracted to the franchise expos, says Charito Estrada, executive director of the Philippine Franchise Association (PFA). SEE YOU It’s sometimes referred to as a show, and rightly so: The franchise expo is the best venue where local and international franchise brands gather to showcase their strengths to consumers and potential franchise buyers alike. “Attending franchise expos is a great first step in knowing and getting familiar with different types of businesses,” says AT THE EXPO multi-unit franchisee Pauline Plata- Bondad, a frequent visitor of franchise expos for the past decade. Make the most of your visit to a franchise exposition Why go so often? These handful of expos are organized only once a year; you don’t want to be missing out. So WRITTEN BY TONI ANTIPORDA whether you’re already an established entrepreneur, or just shopping around for a new concept, here’s how you can make the most out of your visit to a franchise expo.

BE DELIBERATE You’ve got to have a specific reason for going. Do you want to just look around, or are you already considering buying a franchise? Your intent for the visit is important since this will also dictate your “plan of action,” says Rafael Canare, executive director of the Association of Filipino Franchisers, Inc. (AFFI). For Plata-Bondad, her purpose for visiting expos evolved in step with her maturation as an entrepreneur. In the beginning, she dropped by to familiarize herself with different types of businesses and available franchises in the country. Eventually, she visited to link up with suppliers of kitchen materials, packaging, and equipment for her fledgling food businesses. Now that she’s a seasoned entrepreneur—apart from owning Butch Restaurant in Batangas, Plata-Bondad S E G is also a multi-unit franchisee of burger A chain Hungry Hippo, pizza chain I M Y T Shakey’s, and barbecue joint Ineng’s T E Barbecue—she visits primarily to check G M in on the competition and do proper O R F benchmarking. N O I Knowing your intention, she says, T A R also allows you to come up with a “needs T S list,” which details what you need to U L accomplish by the end of your visit. L I

72 JUNE 2015 Entrepreneur Philippines TRACE YOUR ROUTE “Attending franchise expos is a great first Figuring out why you’re going is just half the preparation; you’ll also need step in knowing and getting familiar with to know what to expect. Is it just a showcase of homegrown brands, or would different types of businesses.” international franchisors also be there? How many visitors does it get on average? To ease the process, bring a friend Don’t be easily swayed by an affordable And, more importantly, how many along to work the halls with you. Also, franchise fee, adds Canare—ask if there exhibitors will be there? bring your own eco-bag, where you can are also monthly fees, such as royalty fees, At the expo’s official website, reminds just dump all the brochures, flyers, and continuation fees, and even marketing or PFA’s Estrada, you can find a detailed business cards handed to you, adds Plata- advertising fees. list of exhibitors and line-up of activities. Bondad. While exhibitors are now also Inquire about the number of outlets Armed with this information, you can then giving away eco-bags as expo souvenirs, and their locations, Estrada adds, both for pinpoint which booths to prioritize and it’s always best to bring your own in the company-owned and franchised ones. If which activities to participate in. Even size of your choosing. you notice that your base of operations if you’re just looking around, coming up Also, take advantage of the free samples is far from the area where the brand’s with an itinerary gives your visit a sense of and demos during the expo, especially existing outlets are concentrated, ask how direction, and keeps you from getting lost if it’s for a product or service that’s still you will be properly supported once you in the crowd. unfamiliar to you, says Canare. That become a franchisee. If you already have a shortlist of way, even if you already have a franchise Canare also says that you should also franchises that you are seriously in mind, you get to properly compare it ensure trademarks, names, and logos considering, it becomes easier: Check if with another franchise offering the same have been duly registered so as not to they are exhibitors in the expo and find product or service. cause legal problems in the future. In out where their booths or stalls will be. addition, inquire about the length of In coming up with your shortlist, take ASK THE RIGHT QUESTIONS their franchise term or contract, if it is into account your budget, interest, and A franchise expo is a great opportunity renewable, and under what conditions. inclination, advises Estrada, and exercise for you to know as much as you can about When talking about returns on your due diligence. Still, you can’t go wrong a franchise prior to buying one—that is, if investment, figure out the average daily sales with an exhibitor that’s a member of a you ask the right questions and get your needed to be able to hit that projection. In franchise organization, and the logo of answers from the right sources. the case of food concepts, remember to ask the organization they belong to should be While talking to sales and franchise if they have their own commissary or if they displayed in their booth, adds Canare. representatives might suffice, it is still have their products toll manufactured, as better to seek out the franchisor for this will affect your operations. GRAB NOW, SORT LATER more serious inquiries, says Canare. “If Take note of the answers you get during The number of exhibitors in a franchise you’re really serious, you can also set up the expo. Either write them down, or expo might overwhelm you, but Plata- a meeting with the franchisor after the document them using your smartphone’s Bondad believes you should take time to expo,” he adds. voice or video recorder as a security swing by all of them. “Make sure that you While exhibitors might be quick to measure on your end. “They might have don’t miss any stall or supplier. Get their dish out their franchise fees, remember just said those things to entice you, but flyers and review them once you get home to ask for the total investment needed they can change their minds once it’s time after the expo,” she suggests. to set up the business, reminds Estrada. to close the deal,” cautions Canare. E

REGISTER ONLINE BAG IT TAKE NOTES LISTEN IN PRO MOVES Reserve a slot via Even though some You can get a lot of Learn from the free the official website of information during Walk the halls exhibitors are giving seminars given during the franchise expo and a franchise expo, so like a pro with away their own eco- franchise expos, have easier access better take notes. these tips from bags, it is better says Plata-Bondad. to the franchise hall Bring a dedicated franchise expo to bring your own, Here, experienced compared to a notebook, or use veterans preferably a big one, entrepreneurs will walk-in visitor, says Plata-Bondad. your smartphone share their stories says multi-unit It’s lightweight, and to take pictures and startup tips. franchisee Pauline you can just dump all and capture video Some franchise Plata-Bondad. the brochures, flyers, or audio recordings expos even offer free Just bring along and business cards during the expo, says mentoring sessions your printed e-ticket handed to you, to be Rafael Canare of the with seasoned to confirm your sorted accordingly Association of Filipino business mentors, registration. once you get home. Franchisers, Inc. adds Canare.

www.entrepreneur.com.ph/themagazine JUNE 2015 73 FRANCHISE

Rowena Velasco says that “a lot of love, thought, and sweat goes into creating a collection” for Pois Belly & Kids, which caters to teen girls and young ladies.

FASHION FORWARD

Bellyaching about baduy maternity wear births fashion brand

hanks to her then-pregnant After the initial excitement, Alabang Town Center, SM Mall FRANCHISE sister-in-law, who came griping though, Rowena began to feel of Asia, SM Megamall The Atrium, PACKAGE T to her about how maternity bored. “I was thinking, how many Shangri-la Plaza, SM City Cebu, wear was so baduy, Rowena pregnant people are there to wear SM City Iloilo, SM Lanang Total Velasco thought of starting a all our clothes?” She realized that Premier Davao, and Ayala Center investment: boutique that sells casual wear to she could work on a line for little Cebu. They also have limited P1M-P1.5M, moms-to-be and their kids. “[My girls too, encouraged by customers presence in stores in Australia, depending on sister-in-law wanted something who were clamoring for age- Bahrain, and Germany. the store size simple, flattering, and modern,” appropriate clothes for their tween But the Velascos have she says. That’s how she got the and teen daughters. She responded bigger plans for the brand’s Franchise fee: idea for Pois Belly & Kids, the by coming out with a trendy line for lobal foray. Clement thinks P450,000 boutique she and her husband this age group. the Asean integration is the Contract term: Clement started in 2000. Their success earned them perfect opportunity to franchise, 5 years It seemed natural for Rowena a space at TriNoma in Quezon particularly in Southeast Asia. to start the business, since she had City,the first standalone space for “Wholesalers pick out clothes Inclusions: studied fashion merchandisingin Pois Belly & Kids. that they like, choose the quantity, License to use Singapore and came from a Rowena says growing the and sell them alongside other trademark, family that was into garments business wasn’t easy. “We really brands in their store. We want to name, and logo; manufacturing. At first, the couple had to put out a substantial capital. retain our brand image, but we site selection set up the business from their We could not design just a few on’t have the capital to knock on I D and evaluation K home, with Rowena designing pieces. It had to be a whole every country in the world that assistance; Y L training; just a few pieces of maternity collection for each brand. By will have our store,” he says. L E operations clothes. Soon, the clothes God’s grace, He saw us through “Franchising is the best way to B I S manual and became available at Robinsons and allowed us to grow the do it.”—Lolita Villa O P systems; and Department Stores under the business.” There was competition, marketing brand Great Expectations but the couple persisted, believing support, E Maternity. Clement handles that it challenged them to improve T R among others U the business side of Eurowear their products even more. POIS BELLY & KIDS C Marketing Corp., which owns Now, the couple have acebook.com/poisbellyandkids S O T the brand, while Rowena is nine company-owned,free- 0917-8997693 O the creative director. standing stores in TriNoma, [email protected] H

JUNE 2015 Entrepreneur Philippines INTERNATIONAL APPEAL This provincial favorite just got global

s chicken inasal concepts FRANCHISE to make it overseas,” says Paolo. long-term partnerships, enable jockey for a place in the hearts In the end, after numerous visits the Bernabes to partner with A of Filipinos, Bacolod PACKAGE and product tasting, the Germans diverse individuals here and Chk-n-BBQ House is quietly brought the brand to Dubai, abroad. “I believe we were able widening its reach outside Total deciding it was “a good fit” for the to expand overseas because of the Philippines, beating its investment: Middle East market due to the our commitment to our master competitors in markets where P4 million food’s taste and quality. “ [The franchise owners,” says Paolo, a there’s a big Filipino population. It decision] was a surprise to me second-generation restaurateur Franchise fee: now has three branches overseas because they have covered a lot in born and raised in Bacolod City, P600,000 and is slated to open six more terms of studying our brand and the birthplace of chicken inasal . within the year, while in the Contract term: our competition in the Philippines,” His family has been in the chicken Philippines, it has eight branches, 6 years says Paolo. inasal business since 1976. two of which are franchised. Because their food made such While having one master Inclusions: Paolo and Josephine Bernabe, a big impression on the Germans, franchisee per country is ideal, Use of trade the chain’s founders, did not the Bernabes are determined to a franchisee can also operate in name and initially plan to go global. But proprietary deliver the same quality of food to various countries, preferably in the when two German businessmen marks; site their overseas outlets. “The food same region, provided they have based in Dubai inquired about evaluation; here in the Philippines is exactly the logistics and manpower support. setting up Bacolod Chk-n-BBQ training; same as what customers abroad can The Bernabes are also growing House in the United Arab procurement expect. We use the same ingredients their Philippine presence. They Emirates, they agreed. Now, program; sourced locally and we ship them plan to add more stores and to Bacolod Chk-n-BBQ House is also marketing abroad,” he says. At the same time, strengthen support systems, such present in Kuwait and Qatar, and assistance; the couple are making sure their as their commissaries, trainings, soon in Oman, Bahrain, Saudi opening menu and store design take into and research and development. assistance; Arabia, and Myanmar. consideration the sensibilities of Proper sourcing and shipping of operations “The Germans, our first master manual; and their market in the Middle East. local ingredients will also be a franchisee, actively searched, not research and But beyond having a great priority to maintain the quality and only for our brand, but for other development, product, their flexible franchise taste of products here and brands that have the potential among others terms, plus their emphasis on abroad.—Ieth Inolino

BACOLOD CHK-N-BBQ HOUSE bacolodchickenbbq.com (02) 948-5326; (02) 934-4017 20 Lilac St., Hacienda Heights, Marikina City 1800

E S U O H Q B B - N - K H C D O L O C A B F O Y S E T R U O C S O T O H P

www.entrepreneur.com.ph/themagazine JUNE 2015 75 FRANCHISE

While the cookie café format proved BEYOND to be a hit, the brand’s price point and “premium” reputation still failed to capture what See calls the “more dynamic [and] well-informed” millennial crowd, which COOKIE-CUTTER now forms a huge chunk of the market. See is once again pushing for change. “It’s quite a mature brand, and it’s been known Mrs. Fields breaks from its old-fashioned to have a vintage concept… So we need to mold to tap a younger market transition the brand from that perspective to a younger paradigm,” he explains. rs. Fields is one tough cookie. Known So after eight years, Mrs. Fields is and loved in over 20 countries, the introducing a new cookie café format, and M brand has had a good run since it this time, opening itself to franchising. launched in 1977. But now, the rather See wanted to achieve organic growth for dated concept of a dedicated “chippery”—a their cookie cafés first, which is why their cookie shop—doesn’t fly so well with the cookie kiosk format was the only one up for millennial crowd. franchise before—of their 23 stores in the Gerwyn See, president of Cookie Café Philippines, three are franchised kiosks. Franchise System Inc., the local franchise This new cookie café format has a more holder for the Mrs. Fields brand, wants modern look, and a wider range of snack to change that. While the brand has been and meal options, including sandwiches, in the country since 1994, See took on its salads, pasta, breakfast meals, and rice operations in 2007 and introduced the dishes. Their new “meal bundles”—which cookie café format as a response to the rise will bundle together a meal, drink, and of coffee shops back then. “We stretched cookie of your choice—will also be “easier the basic operations of the brand from a on the pocket,” says See, to better cater chippery to a simple coffee house,” to the preferences, and the purchasing See recalls. power, of young and senior markets alike. Of course, the cookie chain’s specialty cookies, cookie gift boxes, and cookie cakes will still be there. And to keep up FRANCHISE with the tech-savvy millennial crowd, the brand is also collaborating with social PACKAGE media groups and even group-buying sites, says See. Total investment: While the kiosk format will remain an option for franchisees, See believes P750,000 that the improved cookie café format will for kiosks, push consumers to indulge more, thereby P1.1 million providing a better return on a franchisee’s for cookie cafés investment. To further encourage potential franchisees to take the next step, Contract term: financial support is also available via a 5 years partnership with BPI Family Ka-Negosyo. Inclusions: Now that they have the café format License to use own pat, See and company also intend to trademark, name, franchise in the provinces, especially in and logo; franchise locations with high per capita income such fee; store location as Cebu, Davao, Pampanga, and Cagayan L E assistance; store de Oro.—Mikael Angelo Francisco U L design & planning; L construction; S equipment and COOKIE CAF T wares; initial N stocks and FRANCHISE SYSTEM, INC. E I N supplies; marketing Tough cookie: Mrs. Fields mrsfields.com.ph V has weathered the changing Y collaterals; (02 501-3037 loc. 105 B preferences of the Philippine UPRC Building 1, 2230 Don Chino Roces S and training, market, thanks to Gerwyn See’s O T among others commitment to the brand. Ave., Makati City 1200 O H [email protected] P

7 JUNE 2015 Entrepreneur Philippines LESSONS LEARNED

Former hair salon franchisee proves her mettle as a franchisor

FRANCHISE PACKAGE

Total investment: Starts at P500,000 for a 20-square-meter salon

Contract term: 5 years

Inclusions: Use of trademark, name, and logo; training; construction and renovation; four stations for clients; furniture and fixtures; initial salon supplies; marketing collaterals, among others

or Robina Marie Ko, experience is still the waived for the first three months. “We want our best teacher. At 21, fresh out of college, she franchisees to have the orientation that this is not F took over the family’s hair salon franchise. just for us to make money from them. We want The self-confessed kikay took to the business them to sustain and really grow the business. well. “When the franchise was sold to us, it was Through that, I believe they will get more making around P300,000 a month. When we value from this later on,” she says, adding that took over, it reached P700,000,” she says. Status Hair Salon already has three franchisees Still, Ko had problems with their franchisor. in the pipeline. “There was [a] conflict of ideas. They prohibited And the value extends to their clients, too. us from doing a lot of things, particularly in Designed to be a one-stop shop, Status Hair Salon marketing. At that time, we already wanted out, boasts of a full range of services, including hair but we were still under contract,” she recalls. cutting and coloring, waxing, eyelash extensions, Her father decided to put up their own hair manicure and pedicure, as well as traditional and salon after the contract ended in 2010. Thus, airbrush makeup for all occasions. Status Hair Salon was born in December 2011, They’ve kept prices–and staff size–down with Ko and her sister Roseann running the because each staff member has a varied skill set. show. Ko poured her knowledge and frustrations The salon also carries in-house product lines to

into the salon, turning it into the young and hip keep costs of inventory manageable.—Ieth Inolino, E D Sisters Roseann (left) and Robina Ko salon that she always wanted. “I realized that I from an interview by Toni Antiporda N had grown Status Hair Salon to six E am a better fit as a franchisor than a franchisee.” U branches prior to franchising. Q A She’s so bullish about the business, in fact, that I STATUS HAIR SALON D I they’re starting to franchise this year. Using her E statushairsalon.ph H experience as a franchisee, Ko cobbled together Y Unit 17B, 17F Olympic Heights Tower 1, B a franchise package she feels will be attractive to S Eastwood City, Bagumbayan, Quezon City 1110 O T franchisees. The salon’s franchise package starts 0998-5776880 O H at P500,000, with the franchise and royalty fees [email protected] P

www.entrepreneur.com.ph/themagazine JUNE 2015 77 FRANCHISE FRANCHISEE

HIGHER EDUCATION: After 11 years of working in the IT industry, Ethelbert de Leon, left, joined the education sector by buying an Eye Level franchise. An Eye Level teacher, above, with his students.

adding that the decision answered two of their prayers—to have their own business, and to be able to home-school their children. It was a tough decision for the couple. “I knew it would initially be a sacrifice for us, because income from a business is not as certain compared to a monthly salary,” says de Leon. Still, he took the leap, tapping family savings to finance the business. “My mother, a retired assistant principal, appreciated that I was coming back to education,” he adds. The center broke even on its second month. They only employed two teachers, including de Leon, who chose to waive his salary at first. The center gained a good reputation and the number of its enrollees grew, even during the off-peak season, thanks to referrals from parents. “We tried several marketing activities, but nothing really beats word-of-mouth and referrals WITH FLYING COLORS from parents,” he says. By the end of 2014, the de Leons’ Eye Level branch was already one of IT professional finds passion the brand’s best-performing centers. De Leon plans to open three more branches and profit in educational center franchise in Cavite over the next six years. He just opened his second in Molino in Bacoor last March, and ot wanting to teach like the rest of his family, FRANCHISE PACKAGE he’s positive that operations will break even in Ethelbert de Leon took up IT in college. But two months. It helped that Eye Level cut the Nafter 11 years of working in the IT industry, franchise fee in half, and shouldered the cost of Franchise fee: the signage and billboard. he quit his high-paying job in 2013 and bought an P112,000 educational center franchise, ending up exactly Beyond the financial rewards, de Leon believes in the field he had tried to avoid. Starting capital: P500,000 he has found his true calling. “The passion is “It started with the desire to home-school for a 50-square-meter space there to educate young people. It started with our children, which my wife and I couldn’t do this desire to home-school our kids, but now it then since we were still both in the IT industry,” Contract term: 5 years translates to educating other children,” he says. recalls de Leon, “Teacher Teng” to his students —Toni Antiporda E Inclusions: License to use D and co-teachers. He chanced upon Eye Level, N trademark, name, logo, and E a learning center concept from South Korea, U teaching methods; site selection; Q A while looking to enroll their eldest daughter, I initial training; continuous EYE LEVEL PHILIPPINES D I now 6 years old, in supplementary classes. E training; system-wide advertising myeyelevel.com H While de Leon and his wife Karen liked the Y support; local marketing support; (02) 706-1670; (02) 706-4630 B Eye Level program, the learning center didn’t S continuous center visits; and Unit 812 Globe Telecom Plaza I, Pioneer St. O T have a branch near their home in Dasmariñas, implementation of standard corner Madison St., Mandaluyong City 1500 O H Cavite. “We decided to bring it here,” he says, operations, among others [email protected] P

78 JUNE 2015 Entrepreneur Philippines 06/15

AFTER 6

BOOKS

STYLE

SHINY OBJECTS

he world could use a heaping of Pinoy flavor. As every Filipino knows, ours is T probably one of the best cuisines in the world. We love it, we are passionate about it, and we eat it every day. So, what gives? We’re not the only ones raving about it. Back in 2008, Simon Majumdar, Cutthroat Kitchen and Iron Chef judge, told Metro Home magazine that he had underestimated Filipino cuisine. He called it “one of the few undiscovered culinary treasures left in the world,” adding, “if the people of the Philippines attacked the marketing (italics mine) of their food with the same gusto that they apply to eating it, it could be the next culinary sensation.” Following the February 2009 U.S. premiere of the Philippine episode of his show No Reservations, host Anthony Bourdain blogged that sisig is “one of the world’s best beer drinking dishes,” whereas slow-roasted lechon from Cebu elevated the Philippines to the top spot in his Hierarchy of Pork. Bourdain, in October 2008, also told Therese Jamora- Garceau of The Philippine Star that a tourism push could help the country become a food destination on par with Singapore, Thailand, and Vietnam. “It’s an unfair thing to capture in a few images and dishes the heart and soul of Filipino cuisine, but you promote that,” suggested Bourdain. Andrew Zimmern, host of Bizarre Foods, told Today.com in 2012 that given a couple more years, Filipino cuisine would be “the next big thing.” In an interview with PEOPLE Magazine, he also ranked Filipino cuisine second among his Top 10 Food Trends of 2013. The Filipino food movement, he said, will one day be A F T E R 6 traceable to Paul Qui serving dinuguan (pork blood stew) at his restaurant, Qui, in Austin, Texas. There are two points I’m leading up to S by citing these: One, it’s been a marketing E G problem from the start. Two, we need A I M to serve our food the way it is. All three Y T foodies—Majumdar, Bourdain, and T E WALANG HIYA! Zimmern—love it just the way it is. It G M O doesn’t need to be presented the Western R F way or glossed over. Remain true to its S Proudly dishing out Filipino fare O T taste and essence, just use better-quality O H WORDS BY CLAUDE TAYAG ingredients, leaner cuts of meat, fresher P

www.entrepreneur.com.ph/themagazine JUNE 2015 79 REWARDS A F T E R 6

On the local front, the phenomenal rise in popularity of the Ilocano bagnet, Pampango sisig, or Ilonggo chicken inasal into the national culinary scene is a good illustration on how the best, or at least the most popular, of a regional cuisine actually takes part in weaving the quilt that makes up Filipino cuisine as a cohesive whole. And if you try one region, then you are likely to be curious to try the rest. The emergence of chef-centered and regional-themed Filipino restaurants is a clear proof that there’s a local market to sustain them. The Filipino diner has come of age: He goes out with an open mind and palate. There has been a rediscovery produce, and make sure to adhere to Meanwhile, in the West Coast, and appreciation of the sheer diversity of hygienic practices. eat-all-you-can restaurant Cabalen opened our cuisine. Entrepreneurs can cash in on Of course, the proverbial proof is in its first overseas branch last year in San this by coming up with “concept” dining the actual eating, especially with the Bruno, California. In the same Bay area, alternatives, trendy looking interiors, emergence of several upscale Filipino Patio Filipino and Tastebuds are practically consistently good food, and better service. restaurants here and abroad. institutions serving the traditional Filipino And why not bring your Filipino A lot of individuals should be credited lechon. There’s also Karilagan, Boracay restaurant abroad (or, as in the case of for passionately championing Filipino Garden & Grill, Ongpin, Max’s, Kuya’s Asian Purple Yam, back home)? We may be cuisine in America. At the forefront Cuisine, and countless others. In the Los late bloomers, but we have definitely are Amy Besa and Romy Dorotan, who Angeles area, there’s LA Rose Café, Fiesta taken off for a long haul across the Pacific drew devoted diners to their acclaimed Sa Barrio, Bahay Kubo Restaurant, Kusina and the world. One can safely say the Manhattan restaurant, Cendrillon, for Filipina, and Bahay Natin. very successful Madrid Fusion Manila, 13 years starting in 1995. In 2009, the With many hands pushing our cuisine, concluded last April, was the culmination couple opened Purple Yam in Brooklyn, a few shoves are expected—but is it right of five golden years of bountiful harvest New York. They continue to garner new to argue whether one Pinoy dish is more for our cuisine. CJ Junterreal of Manila fans and rave reviews. Chef Dorotan’s Pinoy than another? If you happen to be in Bulletin called it “the Philippines’ coming- cooking has been featured in and praised a foreign land, does using salmon, bokchoy, out party to the food world.” by Gourmet, New York magazine, the and sinigang powder make sinigang less It seems that the oft-asked question— New York Times and the Wall Street “authentic”? Cooking, in any country or “Why isn’t Filipino cuisine known Journal . Also in New York City, Fil-Am culture, is making the most of whatever internationally?”—no longer holds true. Nicole Ponseca and chef Miguel Trinidad is available locally, and then adapting it Filipinos have finally found pride in opened Maharlika on 7th Street in the to the taste— panlasa—one grew up with, our own cuisine. There’s no stopping East Village. wherever that may be. us now. E

HELP YOURSELF! Tatung; kambing bagnet, and halo- from pan-Filipino cuisine papaitan (goat halo with crema at Cabalen (San Bruno, innard soup with de pastillas at California); the Pampangan- For truly tasty Filipino food, bile) at Bistro Downtown 1956 Style Sizzling Sisig with consider this short list as Candon (Candon Café (Angeles City, Egg at Maharlika Filipino merely a way to whet your City, Ilocos Sur); Pampanga); betute Moderne (East Village, appetite. For seconds, there black tempura (stuffed frogs), Manhattan, New York); are food guides aplenty, and crispy isaw and kamaru (mole lechon at Tastebuds (San my paperback Linamnam ng manok at Demeter Diner crickets) at Everybody’s Café Bruno, California); crispy included. Mangan ta na pu! (Aziza Paradise Hotel, Puerto (San Fernando, Pampanga); pata at Patio Filipino (San When exploring the Princesa C ity, Palawan); and grilled Bonuan bangus Bruno, California); and Philippines, try the oxtail three-kinds ceviche and at Matutina’s Seafood Haus ukoy (vegetable fritter with kare-kare, and sinoteng baby Adobo Overload at La & Restaurant (Urdaneta, shrimp), pork tocino sliders, squid at Abé ; Blackened Terrasse (Puerto Princesa Pangasinan). beef kare-kare, and bibingka Sinigang (smoked pork belly) City, Palawan); bringhe rice When food-tripping in at Purple Yam (Ditmas Park, and palabok negra at Chef pizza, lechon taco, pan de the U.S., take your pick Brooklyn, New York).

JUNE 2015 Entrepreneur Philippines BOOKS REWARDS PRINCIPLE OVER PROFIT

These books will help you reexamine your life goals

book follows the growth of his company through 11 years—from working with very few resources and an “overworked” skeletal team to a large professional organization racking up hundreds of millions of dollars in sales annually, and encouraging small acts of kindness (submitted causes DO THE KIND THING that receive the most By Daniel Lubetzky votes among their online Ballantine Books,2015 community) with funding of If you’ve made it a life goal up to $10,000 every month. to build a not-only-for- Even if it means profit company, Lubetzky’s taking financial gambles, 10 philosophical tenets Lubetzky says the KIND might inspire you. The way is actually business- founder and visionary smart: “As our market CEO of KIND Healthy share growth demonstrates, Snacks shows what social if you have a commitment entrepreneurship is all to excellence—a commitment about: living, and working, to avoid false compromise— according to principle. The you will win in the long-term.”

“Instead of projecting our own power through our material prowess, we will express our identities, and signify who we are—our character, our individuality—not through the purchase and ritual THE ROAD TO CHARACTER display of physical objects, By David Brooks however rare and valuable Random House, 2015 they may be, but through “Most of us have clearer strategies for how to achieve STUFF OCATION the activities, adventures, career success than we do for how to develop a y James Wallman and encounters we experience,” he says. profound character,” says New York Times pundit Sp egel & Grau New ork, 201 Wallman speaks of “new David Brooks. “We live in a society that encourages us Getting rid of all the clutter measures of progress,” to think about how to have a great career, but leaves in our lives could be the for our selves and for many of us inarticulate about how to cultivate the inner route to future happiness. society as a whole: “What S life….We live in a culture that teaches us to promote and Wallman sees a movement marketers call our buying E A advertise ourselves and to master the skills required from materialism to motivators or consumption I M Y for success, but that gives little encouragement to humility, sympathy, and experientialism, which triggers will change, T T honest self-confrontation, which are necessary for building character.” favors collecting memories and they will change their E Brooks says he wrote this book “to be honest, to save his own soul.” If (quality of life) over business models. And M O owning more things the repercussions could be R yours needs saving too, he’s cleared the path for you via selected stories F (quantity in life). even more far-reaching." N of how some people, ordinary in some aspects but quite extraordinary in O I T others, have cultivated strength in their own character. A R T As George Eliot, author and one of Brooks’ chosen subjects, once wrote, S U “Adventure is not outside man; it is within.” ALL BOOKS AVAILABLE AT NATIONAL BOOK STORE L L I

JUNE 2015 REWARDS | STYLE

COLOR STYLIST’S TIPS OUTSIDE

Do color splashes in small doses. THE LINES If royal blue trousers are a bit Why wear black too much for you, when you can try a navy blue long-sleeved polo in wear brights? a bright pink polka- dot print. usiness is good and life is literally and B figuratively colorful for Dennis Ng. He founded Govago Inc. two years N I A C ago, initially to offer a taxi U A dispatching system, but J N overhauled it to become a O N dispatching app and fleet A I D management system, V Y with taxi operators A spot of color for B R&E, Sturdy, EFE, and the shoegazer. G N I Nine Stars among its Before you reach M O O clients. Ng is also behind for your dark brown R G restaurant reservation loafers, try teal ; P system ResDiary, which he A lace-up brogues D A brought to the Philippines instead. Colored D N from the U.K. last year. shoes, especially Y L “I want to bring newer on men, are A R and more innovative E a fashion statement G Y technologies to the in themselves. B D Philippines...[and] I would E T like to see some of our S I S . business units publicly S L A L listed in about three I , A S M R A years,” he says. A G M E Ng is just as fearless A M C M a dresser as he is a E S L , businessman—getting L A E G B older hasn’t stopped him N I Y D B from exploring trends and L I G U colors, from his apparel N I B If you’re not L , Y R to the paint on his office T O ready for colored S O walls. His philosophy is ; L shoes, start O F D D simple: Everybody always N with socks. A 2 wears black. Why not N E You think a detail like O H D T stand out by wearing L that won’t matter A N colors?—Belle Camarsi B O much, but even a D N E A T small splash of H A T C Navy woven color can make a A O N L long-sleeved polo by difference. Go bright O S J I Y 1 Forever21 Men; or choose a quirky B 2 R S E Pants and shoes, print. The thing about O V T E model’s own wearing color is to O R H O just have fun with it. P F

82 JUNE 2015 Entrepreneur Philippines ADVERTISING FEATURE

BUSINESS WATCH

We’ve gathered some strong options for franchising and new business. Keep your eyes on this month’s crop of business opportunities if you’re looking for worthwhile investments.

7-ELEVEN TO OPEN 500 STORES IN 2015 World-leading convenience store chain brand 7-Eleven, announces its aggressive expansion campaign in the country, with plans to put up 500 new stores this year. Via its exclusive local licensor, Philippine Seven Corp., 7-Eleven aims to expand in major cities of Mindanao and other major cities in the Visayas such as Dumaguete, Capiz, and Aklan. As part of its major expansion goals, PSC is aggressively seeking franchise partners particularly in the said areas. Offered in flexible options, potential partners can avail of 7-Eleven’s franchise business package in two simplified ways: Regular New Store Franchise (open a new 7-Eleven store); or by Property Conversion (convert an established business or properties into a 7-Eleven franchise). 7-Eleven’s franchise package offers suitable franchise partners a unique opportunity to benefit from a proven system and ongoing support. Apart from one-month preparatory training, partners are given assistance especially at the first crucial stages of operational transition, from supervising, basic HR coaching, to sales monitoring. BURGERS AND BEYOND The Burger Factory Franchise is a food cart franchise package by JC Worldwide Franchise Inc., which also offers several other food cart packages. This particular food cart serves burgers, and also offers a buy one take one scheme. Aside from the usual hamburger sandwich, Burger Factory also offers longaburgers (longganisa), ham sandwiches, cheese mania, footlong hotdogs, hotdog sandwiches, burger steak with rice, and chicken pops. Their burgers come with cheese, coleslaw and even egg. Drinks like gulaman and red iced tea are also available. Come and visit a Burger Factory outlet at Victory Mall Lacson Underpass Quiapo, Manila. For franchise AQUABEST ANNOUNCES inquiries, please call (02) 889-4773 to 76. NEW BATCH OF SCHOLARS Aquabest, the country’s leading water franchise, is pleased to announce the awarding of its new batch of scholars under its Corporate Shared Values RECIPES FOR (CSV) program. Under its CSV program, the company offers scholarships to the children of its deser ving SUCCESS employees.The company has always placed an emphasis in the welfare of its employees and As a follow up to the success of its their families. This is driven by the company’s initial installment, SIAL ASEAN returns realization that its people are its prime assets and on June 17 to 19 at the World Trade as part of its Christian values. Center Manila, Philippines for another Every year, the company sets aside funds to yummy and fulfilling round that seeks help with the education of its employees in good to bolster the country’s reputation as schools that offer quality education. With the Southeast Asia’s most lucrative food scholarship grants, the children of its employees trade hub.Serving up a total of 300 get to realize their dreams and reach their full exhibitors from 19 countries, nearly potential. 7,500 buyers from 33 countries flocked to the first-ever SIAL ASEAN to take part in the biggest B2B Since its inception, the scholarship program platform for the Philippine food industry. At SIAL ASEAN 2015, members of the food and beverage has assisted dozens of children in getting the industry can expect lots to explore and discover. From getting a first hand look at the industry’s most good education needed to succeed in their lives. innovative products and services to tapping into the boundless B2B opportunities that abound in This year’s scholars are Fitz Geralde Palomar, each turn, the highly anticipated food exposition also assures a highly entertaining and informative Grade 2 at Creative Learning Center Educational experience for its visitors as it cooks up a compelling line-up of event highlights. If you’re a part of the Foundation Inc., Danica Marie Boton, 2nd year high food and beverage industry, jump aboard and explore the flavors of the world as SIAL ASEAN 2015, the school at Fortunato F. Halili Agricultural School biggest food gathering of the season, happens on June 17 to 19 at the World Trade Center Manila. and Scarleth Jane Cayetano, Grade 3 at Merry Mount Preparatory School. SPACE

CRAFT SMALL WONDER The meeting of two curved surfaces resulted in this small table. Crafted by Patricia Urquiola, using a bending technique that creates a rounded shape with no corners To put together the perfect or joints, the unobtrusive but intriguing Bow can slip into work space, find pieces that any role, from a side table in your office or a coffee table in the lobby. Bow table by Moltini & C at Furnitalia, Bonifacio provide functionality a nd Global City, Taguig City inspiration—or both

WRITTEN BY CLIFFORD OLANDAY

SOUND AND GLORY Whether it is the warblings of Rihanna from HiFi streaming service Tidal or the rally cry that is your voice during a Monday meeting, these sculptural columns deliver perfec t sound throughout the room. Bang & Olufsen, in celebration of its 90 th anniversary, returns to the Roaring Twenties, the decade of its founding as well as the era of Ar t Deco. With its rose-gold finish, the BeoLab 18 wireless speakers can also dress up your corner office or conference suite. BeoLab 18 by Bang & Olufsen, Shangri-La Plaza Mall, Mandaluyong City

RETRO FLAVOR May we reintroduce you to Mandaue Foam (MF)? What began as a mattress company has grown into a furniture and decoration source with a full range of classic and modern solutions, and even custom-made pieces, all at the reasonable prices MF is known for. This vintage-style chair has been envisioned for the home, but it would not look out of place in your office. It is a piece that gives nuance to any room. Black Retro chair by Mandaue Foam, mandauefoam.ph

84 JUNE 2015 Entrepreneur Philippines SHINY OBJECTS REWARDS

SMART SOLUTION Here is where you can corral all the clutter that seems to be multipying EASY DOES IT on your desk. A large tray, with its wide surface, can be used to stack papers and folders or hold many personal items like your iPhone, keys, The low profile and gently swooping curves or sunglasses. That graphic design of tribal origins also proclaims your of the Stockton chair will soften the edge of passion for travel (or getting away from the office). Ethno tray by a steel-and-concrete office. This is exactly BoConcept at MOs Design Building, Bonifacio High Street, Taguig City what sisters Stephanie Kienle-Gonzalez and Jessica Kienle had in mind when they were putting together their California-inspired collection for Philux. The pair captures that laid-back vibe with raw and natural materials in earthy tones. This will put your guests at ease. Place near your table— in view of your collection of heavy plaques and cr ystal trophies. Stockton chair by Philux, Power BATTLE STATION Plant Mall, Makati City To find balance between the nature of the workspace as an environment of relationships and technology, and a place for concentration and calm, designer Rodolfo Dordorini creates the highly adaptable Jobs desks.

Besieged by a colleague in need of advice? The desk allows for the X U addition of a round table, creating a I L H mini-meeting area that is separate P D from your space. And what if you N A require a suite of machines and T P gadgets for always-on connectivity? E C A concealed wiring system N O C accommodates technology while O B retaining a formal neatness. Jobs , M also declares that you are the boss A O with premium materials like satin- F E finished steel and oak veneer. What we U A like best: A central strip of wood that D N distinguishes which side is host’s and A M guest’s. Jobs desk (available in Easy, , I A L Executive, and President models) by A I T Poltrona Frau at Furnitalia, Bonifacio N R Global City, Taguig City U F , N E S F U L O & G N A B F O Y S E T R U O C S O T O H P

www.entrepreneur.com.ph/themagazine JUNE 2015 85 BUSINESS OPPORTUNITIES

L. ANGELES ROCKTECH MACHINERIES CORP. rocktech.com MPANY DIRE T RY lamacoph.com [email protected] (046) 417-2852; (046) 417-5901 [email protected] THE ROUND TABLE facebook.com/RoundTablePH LEVI STRAUSS & CO. (02) 706-1668 levistrauss.com [email protected]

MICAB SISON CORILLO PARONE & CO. micab.co scp-ph.net 0917-5335755 (02) 687-6649 [email protected] [email protected]

MISE EN PLUS FOODS INC. SPACE ENCOUNTERS miseenplusfoods.com spaceencounters.net (02) 646-1099 (02) 910-8031; 0917-7956739 [email protected] [email protected]

NENE PRIME FOODS STATUS HAIR SALON facebook.com/NenePrimeFoods statushairsalon.ph ALL DAY CONVENIENCE STORE CRYO+ INSTANT COLD WRAPS 0915-9058888 0998-5776880 allday.com.ph [email protected] [email protected] (02) 836-0519 local 118 CryoPlusInstantColdWraps [email protected] (02) 734-2334; 0927-7619911 PAWNHERO SUN LIFE FINANCIAL [email protected] pawnhero.ph sunlife.com.ph ALLFAMOUS DIGITAL 0917-6834376; 0998-9984376 (02) 555-8888; (02) 849-9888 allfamous.com CRYSTAL SEAS [email protected] [email protected] 0919-9926870 crystalseashandwoven.com [email protected] (02) 284-2804 PERSONAL FINANCE ADVISERS [email protected] PHILIPPINES CORP. ASSOCIATION OF FILIPINO personalfinance.ph FRANCHISERS, INC. CURIOSITY DESIGN RESEARCH (02) 216-1541; (02) 359-3094 curiosity.ph info@personalfinance.ph (02) 501-5449; (02) 504-3693 [email protected] info@affi.com.ph PESOS AND SENSE EYE LEVEL PHILIPPINES pesosandsense.com THEO & PHILO BACOLOD CHK-N-BBQ HOUSE myeyelevel.com (02) 419-4173 theoandphilo.com bacolodchickenbbq.com (02) 706-1670 [email protected] (02) 948-5326; (02) 934-4017 [email protected] (02) 631-1362; 0920-4315650 [email protected] PHILIP MORRIS FORTUNE [email protected] FNDG SHELLS & HANDICRAFTS TOBACCO CORP. INC. TOM SAWYER’S I L CARVE fndgshellsandhandicrafts.com pmi.com carve.ph (043) 784-0915 facebook.com/ TomSawyersFriedChicken & (082) 300-7896 fl[email protected] PHILIPPINE FRANCHISE O (02) 966-2291; (02) 650-5866 E [email protected] ASSOCIATION H HORSEPOWER [email protected] pfa.org.ph D horsepower.ph (02) 687-0365 to 67; (02) 579-4841 N VMONEY A [email protected] N vmoney.com I JERTIE’S KITCHEN T (02) 808-1888; (02) 808-1234 I jertieskitchen.com D PILLOWS & BEARS GIFTSHOP E [email protected] P 0908-8696824 facebook.com/hugsandtouchcollection X [email protected] 0943-5899291; 0917-5718873 E WHOLE PET KITCHEN: I N PET DELI & BARK-ERY T JUJU EATS PIZZA PEDRICO’S FOOD CORP. T wholepetkitchen.com I jujueats.com pizzapedricos.com N (02) 357-2753; 0917-8488857 K (02) 551-3968 (02) 411-9444 local 131 CAT CAFÉ MANILA [email protected] [email protected] [email protected] Y

catcafemanila.com E T [email protected] KANTAR WORLDPANEL POIS BELLY & KIDS YOUNG ENTREPRENEURS SOCIETY PHILIPPINES U kantarworldpanel.com facebook.com/poisbellyandkids CHEERS yesphilippines.org 0917-8997693 D cheers-now.com 0917-3464126 N KNITTING EXPEDITION [email protected] A [email protected] E knittingexpedition.com D ZAP N [email protected] POWERCOM E zap.com.ph U CIRRUS INSIGHT powercom.ph cirrusinsight.com (02) 866-5836; (02) 730-2059 A (02) 570-7805 I [email protected] D [email protected] E COLAYCO FOUNDATION H Y FOR EDUCATION INC. Q PROVISIONS B S colaycofinancialeducation.com qprovisions.com Note: Care was taken to get the right O T (02) 637-3731 or 41; 0917-8537333 (02) 706-1668; 0922-8948509 contact information; any mistake is O H [email protected] [email protected] unintended. P

JUNE 2015 Entrepreneur Philippines BUSINESS OPPORTUNITIES

INTERNATIONAL ACTI-KARE FRAN HI E DI Nonmedical home care actikare.com otal cost: $32.6K-$51.6K otal franch ses/co.-owned: 73/0 FOOD RETAIL BIALETTI CAFFE AFICIONADO Coffee shop Fragrance kiosk bialetticaffe.org aficionado.com.ph 0917-8081255; 0922-8965581 (02)7 0-0000; (02) 411-5455 Total cost: P1.8M to P2.5M for Total cost: P465K expanded kiosks, P3.5M for full stores otal franch ses/co.-owned: 324/145 Total franchises co.-owned: 8/0 franchisegroup@aficionado.com.ph [email protected] BENCH BODY SERVICES Intimate apparel CRYSTAL CLEAR CHEF IT UP! bench.com.ph Water refilling station Cooking classes and parties for (02) 777-7888 loc. 173 crystalclear.com.ph children and adults ota cost: P4.5M-P5M (02) 975-6623 chefitupkids.com otal franchises co.-owned: 18/229 Total cost: P500K otal cost: $10.4K-$54.8K [email protected] Total franchises/co.-owned: 297/17 otal franchises/co.-owned: 10/1 [email protected] GAMOT PUBLIKO ENVIE FITNESS Drugstore CUT & FIX gamotpubliko.com Women’s fitness studio ENZO’S SHAWARMA Hair salon (02) 723-8142; (02) 727-3869 enviefranchise.com hawarma cutandfixinternational.com ota cost: P500K-P600K Total cost: $84.6K-$292.9K facebook.com/EnzosShawarma (02) 445-5994; 0936-6949977 otal franchises co.-owned: 42/2 Total franchises/co.-owned: 9/1 (02) 585-7039; 0917-8336967 Total cost: P1.8M [email protected] Total cost: P300K Total franchises/co.-owned: 14/2 FRESH HEALTHY VENDING cutandfi[email protected] Total franch ses/co.-owned:7/1 Snack and beverage [email protected] FLAWLESS vending machines freshvending.com Skin care center FERINO’S BIBINGKA ota cost: $119.3K-$206.6K flawless.com.ph Rice cakes and coffee Total franchises/co.-owned: 185/35 ferinosbibingka.com.ph (02) 586-6807 (02) 216-1028; 0917-8313477 Total cost: P5M-P6M Total cost: P385K K2 DRUG Total franchises/co.-owned: 13/23 Total franch ses/co.-owned: 10/6 Drugstore raymond.diyco@finafranchising.com [email protected] k2drug.com (02) 708-5299; (02) 913-7271 MICROTEL INNS & SUITES FONDUE FACTORY CAFÉ Total cost: P980K Hotel microtelphilippines.com Chocolate fondue Total franchises/co.-owned: 9/11 (02) 870-0303 fonduefactorycafe.com [email protected] ota cost: P2.5M/room (02) 531-3008; (02) 274-6363 PLAINS AND PRINTS Total franchises co.-owned:5/6 Total cost: P380K for cart package, [email protected] HUNGRY HOWIE’S P580K for counter package Ladies’ apparel Pizzas and subs Total franchises/co.-owned: 3/6 plainsandprints.com NETOPIA hungryhowies.com [email protected] (02) 372-6190 to 92, loc. 117 Internet caf otal cost: $228K-$432.5K otal cost: P2.7M-P3.2M . netopia.ph otal franchises/co.-owned: 532/18 OCTOBOY otal franchises co.-owned: 28/35 E (02) 638-6742; (02) 638-0618 [email protected] A Takoyaki and other Japanese VAPOR SHARK Total cost: P2.6M for a branch I M street food E with 30 computers Electronic cigarettes and E octoboy.wix.com/octoboy R Total franchises/co.-owned: 31/72 related products F (02) 359-2881; (02) 216-6568 [email protected] vaporshark.com M Total cost: P450K-P500K R otal cost: $91.5K-$153.9K F Total franchises/co.-owned: 3/3 OH MY LASH otal franchises/co.-owned: 11/9 S [email protected] T Eyelash extension H WINE AND DESIGN P REDBUCK’S COFFEE SHAKES ohmylashsalon.com (02) 912-2946; (02) 912-2973 Paint-and-sip studio Coffee shakes Total cost: P450K wineanddesignus.com A redbuckscoffeeshakes.com D Total franchises/co.-owned: 2/2 Total cost: $35.8K-$83K R (044) 931-7893 [email protected] Total franchises/co.-owned: 39/1 I P Total cost: P200K-P350K T TOBY’S SPORTS N Total franchises/co.-owned: 20/2 A Sports merchandise I [email protected] N tobys.com (02) 651-7777; (02) 651-7753 ote: Investment costs indicated here might be different fr om actual investment Y B otal cost: P3M-P5M costs due to various reasons (ongoing promotions, adjustments, conversion D E Total franchises/co.-owned: 15/43 rates, etc.). The inclusion of any company in this list is not an endorsement; L I P [email protected]; please get in touch with the companies concer ned to make a sound decision M [email protected] about starting a franchise business.

www.entrepreneur.com.ph/themagazine JUNE 2 15 BUSINESS OPPORTUNITIES

June 18-19 June 24 June 5-7 HOW TO REALLY READ FINANCIAL HANDLING PROBLEM EMPLOYEES ENTREPRENEUR EVENTS STATEMENTS FOR BOARD Learn how to handle problem AND FRANCHISE EXPO DIRECTORS & DECISION MAKERS employees professionally. An expo promoting entrepreneurship Read and interpret financial Venue: The Heritage Hotel Manila, and franchise businesses. statements correctly. Roxas Blvd. corner Epifanio Delos Venue: SM Megatrade Hall, Venue: EDSA Shangri-La Hotel, Santos Ave., Pasay City 1300 SM Megamall, EDSA corner SEMINARS & 1 Garden Way, Ortigas Center, Contact: Harry Pound Consultants J. Vargas Ave., Mandaluyong WORKSHOPS Mandaluyong City 1650 Inc.; (02) 523-5394; optimum@ City 1860 June 4-5 Contact: Center for Global Best harrypound.com; harrypound.com Contact: MediaCom Solutions, Inc.; PACKAGING AND LABELING FOR Practices; (02) 556-8968; (032) (02) 509-4792; 0927-3951575; PROCESSED FOOD 512-3106; [email protected]; cgbp.org June 24-25 [email protected]; [email protected]; efe.ph Improve your product’s packaging. LOGISTICS MANAGEMENT Venue: Philippine Trade Training June 20 Maximize the benefits of logistics. June 10-14 Center Building, Sen. Gil J. Puyat Ave. KEY ACCOUNT MANAGEMENT Venue: Philippine Trade Training FRANCHISE ASIA corner Roxas Blvd., Pasay City 1300 FOR SMEs Center Building, Sen. Gil J. Puyat Ave. Asia’s biggest franchise event. Contact: The Philippine Trade Learn how to sell to key accounts corner Roxas Blvd., Pasay City 1300 Venue: SMX Convention Center, Training Center; (02) 468-8969; based on value rather than price. Contact: The Philippine Trade Seashell Lane, Mall of Asia Complex, [email protected]; Venue: Unit 626 Tower A, BSA Twin Training Center; (02) 468-8969; Pasay City 1300 pttc.gov.ph Towers, Bank Drive, Ortigas Center, [email protected]; pttc.gov.ph Contact: Philippine Franchise Pasig City 1605 Association; (02) 687-0365 to 67; June 4-5 Contact: Day 8 Business Academy; June 26 [email protected]; FACILITIES PLANNING (02) 722-2318; 0917-5673298; TAX AND ESTATE TAX PLANNING franchiseasiaphl2015.com.ph; Understand the different [email protected]; day8.org Plan ahead to minimize tax pfa.org.ph approaches in designing facilities. complications. Venue: Philippine Trade Training June 20 Venue: Astoria Plaza, 15 J. Escriva June 20-21 Center Building, Sen. Gil J. Puyat Ave. CHOOSING YOUR CHANNEL Drive, Ortigas Center, Pasig City 1600 THE PHILIPPINE corner Roxas Blvd., Pasay City 1300 Find and develop the right marketing Contact: Ariva Events Management; WEDDING SUMMIT Contact: The Philippine Trade Training channels for competitive advantage. (02) 890-9651; (02) 895-9527; A midyear showcase of products Center; (02) 468-8969; (02) 468-8990; Venue: Unit 626 Tower A, BSA Twin [email protected]; and services from the wedding [email protected]; pttc.gov.ph Towers, Bank Drive, Ortigas Center, ariva.com.ph and bridal industry. Pasig City 1605 Venue: SMX Convention Center, Contact: Day 8 Business Academy; SM Mall of Asia Complex, June 6 EXPOS & MANAGING AND CONTROLLING (02) 722-2318; 0917-5673298; Seashell Drive, Pasay City 1300 TRADE FAIRS Contact: YOUR BUSINESS IN ABSENTIA [email protected]; [email protected]; day8.org Themes and Motifs, Establish internal controls to June 3-4 The Special Events Co.; better manage your business remotely. June 23 POWER & ELECTRICITY WORLD (02) 818-9794; (02) 613-2368; Venue: Unit 626 Tower A, BSA Twin MAXIMIZING SAVINGS AND PHILIPPINES [email protected]; Towers, Bank Drive, Ortigas Center, EFFECTIVENESS THROUGH A showcase for the latest fuel themesnmotifs.com Pasig City 1605 LOGISTICS and energy products, services, Contact: Day 8 Business Academy; Learn the basics of logistics planning. and solutions. June 23-24 (02) 722-2318; 0917-5673298; Venue: Unit 626 Tower A, BSA Twin Venue: SMX Convention Center, LIVESTOCK PHILIPPINES [email protected]; day8.org Towers, Bank Drive, Ortigas Center, Seashell Lane, Mall of Asia Complex, An exhibition of products Pasig City 1605 Pasay City 1300 and services dedicated to June 10-11 Contact: Day 8 Business Academy; Contact: Terrapinn Pte. Limited; the livestock industry. AWARENESS ON HAZARD (02) 722-2318; 0917-5673298; [email protected]; Venue: SMX Convention Center, ANALYSIS AND CRITICAL [email protected]; [email protected]; day8.org terrapinn.com Seashell Lane, Mall of Asia Complex, CONTROL POINTS Pasay City 1300 Know the hazards in the food June 23 June 3-4 Contact: UBM Exhibitions production process. EXPORT COSTING AND PRICING THE SOLAR SHOW Philippines Inc.; (02) 551-7803; Venue: Philippine Trade Training WITH EXPORT PROCEDURES FOR PHILIPPINES (02) 551-7391; livestockphil@ubm. Center Building, Sen. Gil J. Puyat Ave. PROCESSED FOOD An expo on the latest in the solar com; livestockphilippines.com corner Roxas Blvd., Pasay City 1300 Learn how to price your processed power industry. Contact: The Philippine Trade food products for export. Venue: SMX Convention Center, June 25-27 Training Center; (02) 468-8969; Venue: Philippine Trade Training Seashell Lane, Mall of Asia Complex, WOFEX MINDANAO [email protected]; Center Building, Sen. Gil J. Puyat Ave. Pasay City 1300 A showcase of supply solutions pttc.gov.ph corner Roxas Blvd., Pasay City 1300 Contact: Terrapinn Pte Limited; for the food and beverage industry Contact: The Philippine Trade [email protected]; in Mindanao. June 11 Training Center; (02) 468-8969; (02) terrapinn.com Venue: SMX Davao Convention HOW TO STRUCTURE AND 468-8990; [email protected]; and Trade Center, SM Lanang, COMPUTE SALARIES, WAGES, pttc.gov.ph June 4-6 Davao City 8000 AND BENEFITS WITH THE NEW PHILCONSTRUCT VISAYAS Contact: Premier Events TAX RULES June 23 An annual showcase of Plus Group Inc.; (02) 929-7993; A MANAGE AND CONTROL YOUR D Address both labor and tax concerns construction equipment, [email protected]; wofex.com R in employee benefits administration. INVENTORIES building materials, and interior O I P Venue T : EDSA Shangri-La Hotel, Learn the basics of inventory and exterior products in the Visayas. N A 1 Garden Way, Ortigas Center, management. Venue: Waterfront Cebu City I N Mandaluyong City 1650 Venue: Unit 626 Tower A, BSA Twin Hotel & Casino, Salinas Drive, O T Contact: Center for Global Best Towers, Bank Drive, Ortigas Center, Lahug, Cebu City 6000 Y B Practices; (02) 556-8968; Pasig City 1605 Contact: Global-Link MP Events Note: The information on this page is D E (032) 512-3106; [email protected]; Contact: Day 8 Business Academy; International Inc.; (02) 893-7973; correct as of press time. Please get L I P cgbp.org (02) 722-2318; i [email protected]; (02) 832-9332; [email protected]; in touch with the event organizers in M O day8.org globallinkmp.com order to confirm the event details. C

88 JUNE 2015 Entrepreneur Philippines ADVERTISING FEATURE

BUSINESS SPOTLIGHT

More franchise opportunities are headed your way with 7-Eleven, Aneo, and Siomai King, while RK Franchise gives you the tools for whatever trade you’re in. Don’t skip out on these reliable business resources in our spotlight this month.

AFFORDABLE PROFESSIONAL FRANCHISE DEVELOPMENT AT EASY PAYMENT TERMS BUSINESS CLASSIFIEDS

JOIN TH E W ORL D' S # 1 RE STAU RANT C H AI N* 44,600* in 110 countries

ASIA COUNT 43,129 # OF 40,885, YEAR STORES 37,0007, 00 2014* 2117*

34,500 2013 1898

32,187 2012 1591

30,448 2011 1241 28,610 2 01 0 9 57

26,87626,876 2 00 9 7 80 24,912 2 00 8 6 70

2 00 7 5 51 h t w r o g 2 00 6 4 48 d t e c j e r o 2 00 5 3 52 p * *As of 6 January 2015 2 0 0 5 2 0 0 6 2 0 0 7 2 0 0 8 2 0 0 9 2 0 1 0 2 0 1 2 2 0 1 3 2 0 1 4 2015

*SUBWAY® is the #1 restaurant chain in total restaurant count with more locations than any other chain in the Quick Service Restaurant (QSR) industry.

Know more about franchising a SUBWAY® restaurant. Write to [email protected] or call 843-6057.

©2015 Doctor’s Associates Inc. Subway® is a registered trademark of Doctor’s Associates Inc. TO ADVERTISE, PLEASE CALL (02) 451-8888 loc.1012

HOUSE AD I O N I N S P I R A T

hanks to Crystal Seas, a Davao-based enterprise T that promotes hand-woven and handcrafted products from Mindanao, artisans from indigenous communities in the region now have livelihood. Crystal Seas designer Carmaela B. Alcantara—often in collaboration with government offices, design centers, and textile institutes—works directly with tribal weavers to improve their craft. “We give assistance in additional skills training, in product design, and new advancements in technology… [and] help them become more efficient,” she says. Crystal Seas ensures indigenous textiles are converted into quality products sold in specialty stores and trade exhibits here and abroad. They’ve worked with the Bagobo, Mandaya, Maguindanao, Manobo (including the Matigsalug), T’boli, and the Tausug tribes. “I sat at their looms, [and told them] ‘you have to do it this way’—show and tell talaga,” she adds. Crystal Seas pays more than the middleman—sometimes double the going rate per meter of cloth. The additional income CARMAELA B. ALCANTARA is welcome in places where the OF CRYSTAL SEAS women become the breadwinners because their husbands are caught up in armed conflict. “Their recourse is to become domestic workers abroad… we want them to be productive PEOPLE where they are,” Alcantara says. At Crystal Seas’ Davao workshop, they also work with 20 housewives, high school graduates, and out-of-school youth. Since November, these WILL workers have been given “bridging education classes” in English, Science, and Math to make them more comfortable with returning to school. “The goal is to build confidence in PROFIT them...that they can still do it,” says Alcantara. Crystal Seas has also started O The Field Trip Project, which D A N will fund field trips for public O D school students using proceeds L A from their new line of casual B N Money is not the only solution bags. “Field trips broaden your A H understanding of the world, T A and also increase your options,” N O to the problem of poverty. It’s also she says. “Money is not the J Y only solution to the problem of B O T about expanding your knowledge. poverty. It’s also about expanding O H your knowledge.”—Johanna Poblete P

92 JUNE 2015 Entrepreneur Philippines