WHAT’S #TRENDING FOR 2016

BE YOUR OWN BOSS I ENTREPRENEUR.COM.PH DECEMBER 2015-JANUARY 2016 I

WHY START IT’S NEVER TOO LATE

PHILO CHUA TO BEGIN THEO + PHILO NOW CHOCOLATES

VOLUME 15 NUMBER 166 FIND SUCCESS IN YOUR SECOND ACT

THE FUTURE OF RETAIL FRANCHISES

WRITE A LEAN BUSINESS PLAN

CONTENTS dECEmbEr 2015-jaNuary 2016

FEATURES 45 MAHAL NAMING MGA KABABAYAN... Expert advice for overseas workers about investments, money, and coming home

54 #TRENDING Consumer and business trends that will shape the world in 2016

64 ART OF REINVENTION Three entrepreneurs build growing businesses for their second act

IN EVERY ISSUE 08 STAFF BO x 10 EDITOR’ S NOTE

ON THE c OVER 12 FEEDBAcK han baldonado

photo by jonathan baldonado 84 cOMp ANY DIREcTORY T 85 FRANc HISE hair and grooming by Tricia Miranda OppORTuNITIES 86 EVENTS hotos by jona by hotos P

2 december 2015 -january 2016 Entrepreneur Philippines

CONTENTS december 2015-january 2016

BRIEFING 15 DOLLED up Bunso’s art cloth dolls capture a piece of local culture

16 OpEN KITcHEN Back of the House’s flexible kitchen is the place for both casual cooks and food ‘treps

17 BLOOD WILL TELL A Pinoy-engineered home dengue test makes diagnosis easy

18 NuMBERS AND INSIGHTS Entrepreneurship as the next step for returning overseas Filipino workers

19 ETHIcS: up FOR GRABS? The etiquette of sharing clients within your network MONEY 21 A c ApITAL IDEA Make sure your financial projections are spot on

24 FINANcIAL ADVISER: A FAIR DEAL When buying out a partner, make sure your valuations are in sync

26 pERSONAL FINANcE: GOOD VIBES What to expect in 2016 START IT UP 28 BEST LAID p LANS Consider a one-pager instead of a long business plan for your startup

32 cOuRSE cORREcTION It’s never too late to shift gears baldonado jonathan by Photo

4 december 2015 -january 2016 Entrepreneur Philippines

CONTENTS december 2015-january 2016

DOING BUSINESS 78 GAME ON 33 NO B uSINESSMAN Cyber café gamble IS AN ISLAND pays off for freelance Why joining a community of graphic designer ay-ban

entrepreneurs makes sense r , and ol I sy of Charr sy E QUE nd E and court

36 SpEAK EASY I a There’s an art EI d to writing a press release

38 cuSTOMER 007 Improve your customer service by hiring

mystery shoppers , h han baldonado T ona TECH 39 uNDER ATTAcK No startup is too small Photos by j by Photos for cybercriminals jeremiah idanan by illustration

43 TEcH BITS Philippines crowned “most social” country

FRANCHISE REWARDS 72 FORWARD MER cH 79 NOT J uST A c AR The changing landscape of It’s one of the most retail franchising expensive things you’ll ever buy. You can’t keep it 74 WITH EASE forever, and it loses value Wholesale distributor every day. And yet you still forays into retail want it

GET BUSINESS UPDATES ONLINE 75 pROBLEM SOLVED 82 SHINY OBJE cTS: Start your business week right— MatheMagis piques SMALL WONDERS just go to www.entrepreneur.com.ph children’s interest for Spread holiday joy with and sign up for our weekly newsletter. Singapore math these fun-size goodies JOIN ThE DIALOGUE! Check out EntrEprEnEur Philippines 76 LOcAL FLAVOR on Facebook at www.facebook. Sitsirya Sari-Sari levels up com/entrepreneurmagazine.ph for the Pinoy INSPIRATION regular updates on business and 92 GOuRMET entrepreneurship. You may also 77 SAY c HEESE FOR GOOD follow us on Twitter at twitter.com/ Local bread manufacturer This family-run café is a ENTREPRENEURph imports Japanese service to both diners and cheesecake concept the differently abled

6 december 2015 -january 2016 Entrepreneur Philippines

ABOUT OUR CONTRIBUTORS

editor in chief Kristine Fonacier

associate editor Maricris C. Carlos art director Frantz C. Salvador

features editor Victoria Vizcarra

assistant managing editor Toni Antiporda

contributing writers Lorenzo G. Abellera, Juju Z. Baluyot, Rienzie Biolena, Lou Bognot, Cathie Carpio, Excel V. Dyquiangco, Mikael Angelo Francisco, Ieth Inolino, Aya Laraya, Luis Gerard Limlingan, Clifford Olanday, Henry Ong, Kim Arveen Patria, Charlene Pe, J.E. Ramos, Bernadette Reyes, Mari-An C. Santos, Yvette Tan, Lolita Villa

contributing photographers Heidi Aquende, Jonathan Baldonado, Vincent Coscolluela

contributing illustrators James John Andres, Drixkie Bojador, Fabo, Jeremiah Idanan, Conrad Lachica Jonathan Baldonado contributing makeup artist Tricia Miranda photographer

SUMMIT PUBLISHING CO. INC. president and coo Lisa Gokongwei-Cheng Jeeb is a -based publisher Edna T. Belleza deputy group publisher Ichi Apostol-Acosta photographer, who regularly vp for operations Hansel Dela Cruz editorial directors Myrza Sison, Jo-ann Maglipon associate publisher Dave P. Khodr is and admin director Mags E. Castro contributes to lifestyle admin services manager Whilma M. Lopez executive assistant Rosalie Arteta admin assistants Marlyn Miguel, Michiel Lumabi Yvette tan writer magazines like High Life of BusinessWorld Publications, WEB web managing editor Jaime Humarang Jr. Yvette is a lifestyle writer and award- Esquire Philippines, and winning horror author. Her books, PRODUCTION FHM Philippines, among production manager Elizabeth Rellis assistant production manager Jane M. Puno Waking the Dead and Kaba, are available others. This multimedia production coordinator Eric Cagoco advertising traffic supervisor Eliziel Del Rio advertising traffic assistant Arthur Villaflor graphic artist Dindo Rollan in National Book Store and Powerbooks, arts graduate from the as well as Fully Booked and Filbar’s EVENTS De La Salle College of assistant marketing manager Roberlin Rubina Jr. for the latter. She is working towards Saint Benilde is also the project officers Rica Gae Lozada, Dorothy Joy Bulan senior marketing associates JC Brion, Juan Paolo Maningat, a world where it is permissible to wear associate photographer at Katrina Alexie San Pascual, Mitz Jairus Baldoza, Valine Aquino flip-flops to a board meeting. For this junior marketing associates Katrina Camille Peña, Rachelle Anne Castillo, Shutterspace Studios. Jeeb Neil Emerson De Guzman, Charmie Abarquez, Roi Kevin Palma, Kaye Calleja issue, Yvette wrote our feature story did the cover photo for this TRADE MARKETING about entrepreneurs who’ve made a month’s issue as well as the sr. trade marketing associate, oic Jamie Islo trade marketing assistants Hannah Roque, Lalaine Taguiam, Joylyn Guinto 180-degree turn in their careers to go photos for our main feature. trade marketing project coordinator Wendl Magsino, Raven Dorado into business. CREATIVE SOLUTIONS editor in chief Dondi Limgenco acting managing editor Aiza Santos art director Jaykee Evangelista senior graphic designer Ben Arnold

ADVERTISING vincent coscolluela photographer group advertising director Florence Bienvenido advertising director-key accounts group Regie Uy advertising manager Maiza G. Mueco key accounts specialists Joey G. Anciano, Cos started as a freelance writer, then 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 became managing editor of GamesMaster, jr. account managers Ivan Ainza, Melinda Kitane-San Diego, MJ Pineda senior digital account manager: Luke Reyes a former Summit Media title, for almost advertising category ad assistant: Lorena Santiago-Marfil two years. He took up photography after advertising executive assistant Rita M. Barbacena key accounts assistants Chinggay M. Cabit, Onnie Y. Del Mundo, Maricel S. Adaniel, Dianne S. Suegay that, and has now been taking photos for CIRCULATION a living for 10 years. He studied creative deputy national circulation manager Glenda Gil circulation manager-gma Noreen Sescon-Peligro writing at the University of the Philippines, asst. manager for print and online distribution Ulyssis Javier key accounts group head Vivian Manahan, Charlotte Barlis Diliman. He has two kids, Leelee and subscription group head Carla Soriano key accounts specialists Jennifer Tolentino, Simon. He loves playing board games and Alfredo Toledo Jr., Harold William Rey, Rejie Paquibot, Marjorie Yu newsstand supervisor Joel Valdez video games with his kids, and reading distributor specialists Kim Sarmiento, Roberto Revilla, Elaine Einosas, Eric Ferdinand Gasatan, Bee Datinguinoo comic books during his spare time. junior sales representatives John Lakhi Celso, May Ann Ayuste, Aeron Nolasco Brylle Gonzales, Melrose Tamboong, Julie Dunn Bantan sales coordinators Jennyfer Marcelo distributor analysts, Christian Austria online distribution assistant Mark Jocell Manio Patricia Miranda subscription coordinators Nathaniel Embiado, Ariel Rivera, Ma. Glenda Uchi, Annalyn Arambulo makeup artist and hairstylist subscription telemarketer Jon Maynard Ortiz circulation admin supervisor Marie Lenn Reyes circulation admin assistants Tricia’s love affair with cosmetics Elnie Marie Delos Santos, Lizel Tumali started in 1997 when she became for back issues call Visual Mix and Booksale (02) 815-2076; (02) 824-0959 LECSON (02) 525-1990 local 12 an assistant product manager at Subscribe online at www.summitmedia.com.ph/ subscribe/entrepreneur.php VMV Hypoallergenics. She went for dealership/distributorship inquiry Circulation Department at (632) 451-8888 or 637-2200. Look for Joel Valdez on to become the brand manager for Metro Manila (local 1094). For provincial distribution, call (063) 451-8888 local 1097 to 1099. For international distribution, of Max Factor Cosmetics in the call (632) 451-8888 local 1033 ENTREPRENEUR MEDIA INC. 2445 McCabe Way, Irvine, California, USA 92614 Philippines before saying goodbye chairman/ceo Peter Shea president Ryan Shea editor in chief Amy Cosper to the corporate world. It’s been 10 years since she became a freelance makeup artist, and she believes she has found her calling. “I finally understand when people say they’ve found their passion, Talk to us. If you have inquiries, comments and concerns, email us at and to do anything else just doesn’t [email protected]. Your feedback will help us serve you better. compare,” she says. www.entrepreneur.com.ph/themagazine

8 december 2015 -january 2016 Entrepreneur Philippines

EDITOR’s NOTE CHANGE IS EVERYWHERE his magazine isn’t about We like to live what we preach, and so with this issue of the magazine, making money. It’s a we are also announcing a big change: magazine about change. EntrEprEnEur Philippines will now shift TOf course, the thought of money, in all its expressions— from print to a purely digital platform, profit, cash flow, savings, investment, etc.—pervades beginning in February 2016. our pages, just as it must remain at the back of every This change comes along with the entrepreneur’s mind. We share our readers’ concerns and sweeping changes in the nature of preoccupations, as we should. entrepreneurs themselves, and even But, over and above the (relatively simple) matter of as our mother title, EntrEprEnEur money, it’s the far more intangible and complex reality of US, has just rebranded itself with a change that occupies all entrepreneurs. Constant, inevitable, radically different banner. This is a unstoppable change is the one thing we all have in common, response to the way our readership has even as it remains one of the things that we worry about changed, and how differently today’s the most. More than money, change might well be why entrepreneurs approach business. this magazine exists in the first place: We’re here to help We’ve come to recognize that our local entrepreneurs make sense of trends, of competition, of the audience may best be met and served current needs of the market. Change might be largely out of online, and we’re focusing our creative our control, but with proper knowledge, preparation—and energies in that space. the right set of people around you—change is manageable. This has not been a decision that’s Change can be exciting, it can be powerful, and it can be fun. been made lightly. EntrEprEnEur Philippines has been in print for 15 years, making it one of the stalwarts in the local publishing industry. I’ve had the privilege to work at this title over the last two years, and have been honored by being able to work with this singularly talented, dedicated team: Maricris Carlos, Frantz Salvador, Victoria Producing a magazine Vizcarra, and Toni Antiporda, who have is never easy, that helped steer the title through some big is why I jest about changes over these past couple of years. having a “love-hate We’re going to miss the print version, relationship” with my I’m lucky to have had the luxury of a job I truly especially since we’ve all gotten the job. It’s a hard grind. loved: Working at EntrEprEnEur was engaging chance to rub elbows with some truly And it just sucks and challenging, gave me the chance to learn sometimes. Having from some of the most talented people in the unforgettable entrepreneurs, and work said that, being industry, and most importantly, let me meet with some of the country’s finest talents part of EntrEprEnEur new friends. Goodbye, EntrEprEnEur. We’ll as contributors to boot. We’ve each It’s actually a dream Philippines will always always have Persiana. grown, professionally and personally, in come true for me be special for me. victoria vizcarra our roles, and we’re extremely grateful to to be working It was a really great be part of this journey. in EntrEprEnEur experience. And I feel Philippines—my That said, we embrace this change, absolutely grateful to mother and I have and we hope to translate the same my editors for trusting been avid readers quality of work in print into the online me. Thank you guys. and collectors of the Group hug later. version of EntrEprEnEur Philippines. magazine since 2000. frantz salvador The digital world is an exciting new But, as with all good space, and there is much exploration to things in life, it too be done; we hope that you can join us as has come to an end. EntrEprEnEur Philippines steps into It was hard work, but it was such fun But I also know that this next phase. getting this magazine to print every its spirit will live on, month. We can only hope that with every especially in the lives issue we inspired aspiring entrepreneurs of its readers who’ve to take the plunge. May your cash gathered the courage registers keep on ringing and your to become their own customers always happy. bosses. Kristine Fonacier Maricris carlos toni antiPorda editor in chief

10 december 2015 -january 2016 Entrepreneur Philippines

FEEDBACK

wife recently got pregnant. I have a few debts which include my car loan. I am an average Filipino who did not came from a rich family. These past few days, I’ve been thinking about going into business. Like many others, I’ve always wanted to be financially free. I don’t know if this is a normal thing but business is always in my mind. No matter where I go, whoever I speak to, business always comes up. Now my question is, what do you think it tells me? Darvin Tan Via Facebook

>> Fitz, one of the traits of an entrepreneur is high adversity quotient. However, if the numbers are not correct, no amount of high adversity quotient will help you run a business. In the retail food business, there are fundamental numbers that must be in place. If they are not, it will be a case of throwing good money after bad.

A. Food cost must be between 27 and 32 percent of sales.

B. There are two monthly fixed cost that must be paid: rent and payroll. Rent must be paid for by two days average daily sales. Payroll must be paid for by three days average sales. Average sales is a reflection of the competitive environment in your area.

C. The full investment must be recovered in the first six months. HAPPY READER If P6 million was invested (it does not matter if it was capital or I have been reading your wonderful magazine since 2010. There loan), the average monthly sales must be half a million a month is always a lot to learn in each and every issue even though I have in the first six months. been a follower of your mag for so long. I have honed my skills at being a sari-sari store owner from 2004 to 2011. I’ve tried making If these fundamental numbers are not met, the retail food it online since then (I have an online anime/comics store), but business is not viable and will never make a return on investment. now I’m ready to make it into a brick-and-mortar shop. Maria Patricia Ramona Guerrero >> Darvin, financial freedom is the objective of every person and Via Facebook entrepreneurship is one of the vehicles to achieve this. But keep in mind that working full-time is not mutually exclusive to entrepreneurship. There are 24 hours a day. You work eight >> Thank you for your kind words, Maria Patricia. And hours a day. You commute three hours a day and sleep eight hours a great to hear about your online anime/comics store and your day. That leaves you only six hours for entrepreneurial ventures. plans for a brick-and-mortar shop. It’s why we love being part Start with a home-based business to test your product or of EntrEprEnEur—to help people stretch themselves in their service. A food business is always safe. If the food does not sell, business endeavors. it can be consumed by the family. If it sells, it can be moved to a more visible commercial area.

Dr. Alejandrino “Andy” Ferreria is HELP DESK the CEO of ACE-ME and one of the Gurus I have a problem with my food business. I’m thinking of giving of the Master in Entrepreneurship up after two months of running it because I have so many Program at the Ateneo Graduate School competitors in the area, which is near a school. I’m upset about it of Business. and I want to quit. What shall I do? Fitz Via Facebook Want your business featured correction I am one of your avid readers. I really love your posts because it in entrepreneur.com.ph? A story entitled “Moving Drop us a line at letters.entrepreneur@ gives an idea on how to become a millionaire (or a billionaire, summitmedia.com.ph, tell us in two to three Money” in our October 2015 who knows?). I am a trainer in one of the BPOs here in Makati. sentences why we should feature your issue was erroneously I do love my job and enjoy what I’m doing. The pay is good, but business. You can send us your company credited to another writer. It profile, but no more than a page, please. should have been attributed not enough to build a family. I just got married last year and my We’ll get in touch with you if we think your

story would be interesting for our readers. to Zar Castro. ARNOLAND by ILLUSTRATION

12 december 2015 -january 2016 Entrepreneur Philippines

To the winners of the Pacific Entreprpreneurship Awards 2015, we applaud your excellence in responsible entrepreneurship emulating strong commmitment, advocacy, integrity and leadership in Philippines. Not only have you come to rise through your sheer entrerepreneurial qualities, but also help raise others around you with yoour strong leadership backbones throughout your journourney. Congratulations on being part of an elite group in Philippiness to receive Asia’s Most Prestigious Awards for Entreprepreneurs.

RECIPIENTS OF THE ASIA PA CIFIC ENTREPRENEURSHIP AW ARDS 2015, PHILIPPINES

ENTREPRENEUR WOMAN ENTREPRENEUR MOST PROMISING CATEGORY OF THE YEAR OF THE YEAR

TONY TAN CAKTIONG VIVIAN QUE-AZCONA ABELARDO M. JOSE MARIA P. MELECIO C. RAJAN Foods Corporation Mercury Drug Corporation TOLENTINO, JR. ZABALETA MALLILLIN KOMARASU Aidea Inc. Bronzeoak Philippines, Charter Ping An Concepcion Industrial Inc. Insurance Corporation Corporation

OUTSTANDING CATEGORY

BEVERLY M. RAMON HAILE PARGAD ENGR. LEONORA DAYANAN GARCIA, JR. “JACK” BITENG B. SALVANE CAROLINA S. JOEL S. CRUZ ROSANNA “RIA” Contempo Property DFNN, Inc. Fountainhead GTCosmetics OSTERIA $ÀFLRQDGR*HUPDQ\ V. VERGARA Holdings Inc. Technologies, Inc. Manufacturing, Inc. ACM Perfume Cabanatuan Electric Landholdings Corporation (CELCOR)

NORMITA A. GLENN Z. LANSANG-VILLARUZ ESTRELLA Villaruz, Villaruz & Co., Yondu, Inc. FERNANDO L. DR MILAGROS ESTHER A. VIBAL CPAs MARTINEZ O. HOW Vibal Group, Inc. Eastern Petroleum Universal Harvester, www.enterpriseasia.org Group of Companies Inc.

Organised by 2IÀFLDO0HGLD3DUWQHUV Regional Media Partners Bunso’s cloth art dolls capture apiece of local culture Dolle D www.entrepreneur.com.ph/themagazine up IDEAS money while taking care of their their of care taking while money enabling mothers to work from from work to mothers enabling dolls, my desire [was] to share share to [was] desire my dolls, children,” says s says children,” who moved to the Philippines Philippines the to moved who the culture of , while while Filipinos, of culture the “ home, so that they can earn earn can they that so home, i n creating Bunso art cloth cloth art Bunso n creating eight years ago. years eight Lov E

S Filipiniana as such garb, traditional in those are bestsellers the but characters, of variety a in come dolls cloth art Bunso a month. in sold are 30 around average, on apiece; P4,000 to P1,500 for go can doll Bunso artisans. Cebuano of team five-man her with doll the produce to how and used, be to materials feasibility, its discusses first she design, anew on decides Secco Before . in artists and needlewomen by made then are which herself, dolls the for patterns the creates Secco it. into goes that detail of amount the on depending doll, single clothes the authenticity, added For Cebu. in down settling eventually before Spain, in live to 2005 in children her with France left who Secco, [like that],” says details small eyes; the of hair, color the the faces, the of expressions The hand-painted. particular, mothers.” in and people, to salary and work give can [that] company alittle create and brilliance cultural the in participate to wanted really “I says, she dolls, cloth art Bunso With culture. Filipino the capture that dolls making by back give to decided she experience, the loving and years country.”— the around all trips my during discovered [I] lifestyle Philippine the from comes inspiration “My says, Secco designs, up thinking When festival. Sinulog the during celebrated character apopular Juana, Reyna as up dressed one and dolls; fisherman and farmer the are popular L oc ophie Depending on the model, a handcrafted ahandcrafted model, the on Depending are faces the unique; is doll “Each AL in the Philippines over the last eight eight last the over Philippines the in living after but France, of south the in raised and born was Secco ophie are intricately made using local local using made intricately are december 2015 It takes two to five days to finish a finish to days five to two takes It s ecco, or Ifugao or Victoria Vizcarra Victoria as cultural pieces by locals. by pieces cultural as materials like abaca, corn corn abaca, like materials souvenirs by tourists, or or tourists, by souvenirs leaves, banana leaves, leaves, banana leaves, by doll aficionados, aficionados, doll by doll Each bamboo. and costumes. Also Also costumes. bought as collectibles collectibles as bought also has a name, and and aname, has also dolls, these are often often are these dolls, comes with a small asmall with comes also drawn to the the to drawn also explaining booklet While children are are children While Philippine culture. culture. Philippine of aspect an -january 2016 12/2015-01/2016 #FOUND IDEAS! 15

Photos by Vincent c oscolluela IDEAS

FEAr FActOr “I’ve always been afraid of the kitchen until my sister bim and I took a recreational cooking class, which opened the world of cooking for me,” recalls back of the house co-founder and managing director booboo OpEn kItchEn atayde alvendia. Back of the House’s flexible kitchen, a place for both casual cooks and food ’treps

espite its name, Back of the House Marivic Del Rosario, and Bim Zulueta. is much more than just a kitchen for Alvendia, managing director, says, “We all D rent. In fact, the venue’s range of uses wanted the idea of a shared kitchen closer is limited only by the customer’s own to home—a place where ordinary people can creativity, whether you’re a professional chef, just come together and cook together and eat entrepreneur, or just a foodie looking for a together, a community kitchen where people setting to hold an intimate gathering. can learn recipes, get help with their food Spanning 70 square meters, Back of the businesses or anything else you can think of.” House is equipped with eight cooking stations Back of the House can be booked by and can accommodate up to 40 people. A reservation (per hour or per day) and only kind of kitchen-away-from-home, its doors opens when there is an event booking or a are open to entrepreneurs who are looking to class. For private dining, Back of the House use it as a short-term commissary to fulfill offers Spanish, Mediterranean, Italian, orders, a test kitchen to try out new recipes, Filipino, and Thai cuisine. or a place to host cooking classes. It’s also Back of the House has hosted private an events space that can host private dining business dinners, family meal get-togethers, or cooking parties for families or corporate bloggers’ events, and cooking parties. “You teambuilding, or even as a ‘test-aurant’—a have to understand that when you reserve place to test your restaurant concept before Back of the House for a dinner, you are pursuing a full-blown establishment. On our only guest. You have the place all to weekends, Back of the House also serves as yourself,” says Alvendia. “[Families] like a cooking school. having the place all to themselves and still Back of the House soft opened in August taste restaurant-quality food, since we work and was in full operations by September. It is with them in crafting the cuisine and menu the brainchild of entrepreneurs Jose Gaerlan, that their family would want. It’s customized

Booboo Atayde Alvendia, Cynthia Diaz, to the last detail.”—J.E. Ramos baldonado jonathan by Photos

16 december 2015 -january 2016 Entrepreneur Philippines Blood will tEll A Pinoy-engineered home dengue test makes diagnosis easy

very year, 400 to 800 people die in the and expensive lab equipment. The new test will be very helpful as a diagnostic tool for Philippines because of dengue fever. needs neither. “Our dengue kit can be used the communities, and even schools.” While E Thankfully, a team of scientists at the anywhere and anytime, even by the patients there are similar tests available in the market, Research and Biotechnology Division of themselves,” he says. these either detect only the antibodies against St. Luke’s Medical Center, assisted by the The kit, which is single-use, works similarly dengue, which may take four to five days after Department of Science and Technology, to a pregnancy test, except that it uses a pin- the fever hits before manifesting; or must be developed a test, that makes diagnosis faster prick of the suspected dengue patient’s blood used by trained healthcare professionals. and easier, and that, in turn, may reduce death instead of urine. After applying the drop of While the team still needs to do field trials rates from the disease. blood on the kit, it only takes 15 seconds to to see how the test performs in the real world Dr. Mark Pierre Dimamay, a member get results. “With this kit, patients do not and get the necessary permits, the kit—which of the research team who spent the past need to go to a hospital to have themselves Dr. Dimamay has unofficially christened two decades studying the lethal virus, had tested for dengue,” says Dr. Dimamay. “Dengue Check”—should be ready for mass actually been able to develop laboratory- Once the kit is mass-produced, people distribution by the end of 2016. “We need to based tests, which they had been using should be able to obtain it with ease, either find an industry partner whom we can license since 1998. But these were costly, requiring at a drugstore or a barangay center. “With to manufacture and help bring the kit to the both the skills of a trained professional dengue outbreaks occurring annually, this market.”—Mikael angelo Francisco james john andres james by illustration fight thE fEvEr Lab-based dengue tests already exist, but these are expensive and have to be performed by medical professionals. dr. mark Pierre dimamay and his team realized that there was a need for a more convenient and cost-effective way to test for dengue that could be used by an ordinary person without the need for expensive laboratory equipment.

www.entrepreneur.com.ph/themagazine december 2015 -january 2016 17 OFW #found| nuMBERS And In SIGHTS s

By dEvElopInG RETuRnInG ovERSEAS woRkERS InTo ExpoRTERS And EnTREpREnEuRS, wE wIll BE cREATInG A nEw STREAM of ExpoRT REvEnuES. wITH THE pHIlIppInE ExpoRTS RoAd MAp In plAcE, wE ARE lookInG AT MoRE EnTREpREnEuRS And ExpoRTERS BREAkInG InTo THE GloBAl MARkET. Trade UndersecreTary AdriA n CristobAl Jr.

$26.93 billion ToTal amounT of ofW remiTTances in 2014, up from $25.35 billion in 2013, according T o daTa from T he bangko senTral ng p ilipinas

600,000 138 in 174 6 in 10 EstimatEd numbEr of balikbayan ratio of rEpatriation casEs handlEd boxEs passing through customs by migrantE’s rights and WElfarE ratio of WomEn ofWs to EvEry month, amounting to assistancE program involving fEmalE mEn, according to data 7.2 million box Es a y Ear, ofWs, most of Which involvEd ofWs according to data from th E Who WErE ovErWorkEd, undErpaid, or from thE cEntEr for dEpartmEnt of f inancE and physically, vErbally, and Emotionally dor filipinos ovErsEas thE burEau of c ustoms abusEd by thEir EmployErs JA E bo i

“to attribute ‘reverse migration’ to so-called ‘inclusive XK growth’ is outright deceitful and misleading. With the record- “While driven by N BY dri high unemployment rate and the lack of a comprehensive good intentions, these io and sustainable reintegration program for returning o FWs, practices leave OFWs a so-called ‘reverse migration’ will not be tantamount to with zero savings, even USTRAT

Aquino’s claim that o FWs have been opting to come home for , ill

incurring debt, when A good. Filipinos will not be stopped from being forced to leave they’re supposedly the country in search of ‘greener pastures’ abroad, and so earning more.” ntipord the cycle continues.” A regisTered financial planner sol pillAs,secreTary-general of migranT s’ righT s groU p migranT e Alvin tAbAnAg, foUnder of p inoy inTernaTional, reacTing T o presidenT benigno “noynoy” aqU ino iii’s smarT savers learning c enTer, on The habiT of ofws of sending all d BY toni claims dU ring his las T sTaTe of T he naTion address T haT more ofw s Their salaries To Their families E il are coming home for good T hanks T o improved economic condiT ions and noT seTTing a bUdgeT. P

in T he coU nTry. com

18 december 2015 -january 2016 Entrepreneur Philippines ethics Up for grabs? The etiquette of sharing clients within your network

The client of a close issues to consider. Would you be of work before, but after checking friend and member of my compromising your values around trust, with our tech team assured the client Q: networking group approached integrity, or relationships by stepping in we could handle it. I am concerned we me about a consulting project. If I take on an unresolved situation, especially can’t deliver. the project on, am I poaching? Should when a friend is involved? How has the As a startup, we succeed about I give my friend a heads-up to give client handled the situation—would 80 percent of the time when taking her a chance to revive what may be a accepting the job make you look like you on new kinds of work. We don’t disclose fallen relationship? betrayed a friend and took advantage the risk to clients because we don’t want of a relationship stumble? How would them to amend contracts to protect their It’s not your job to perform you feel if you were dropped from the interests. I’m not worried about being CPR on a colleague’s networking group? That may sound sued if we fall short, but I am uneasy A: business relationship, friend overly dramatic, but until you clarify about the ethics of our process. What do or not. However, before moving ahead, what’s really going on, you leave yourself you suggest? make sure everything in this situation is open to criticism. what it appears to be. Information will After learning all you can, if you still This sounds like an ideal help clarify your ethical responsibilities. want the work, call your friend. Tell her time for your leadership Ask the potential client where things you were approached by one of her former A: team and investors to sit stand. Did the previous project conclude clients and you’re considering taking the down and look at the pros and cons of naturally, with the scope of work job. Listen to what she says and go from your current system, which hands all the completed, including a wrap-up meeting there in terms of your decision. It is far risk to your customers. This undermines with your friend? If so, let your friend easier to avoid ethical problems when whatever other efforts you may be know her old client just tapped you for a we look at the total picture of an issue, making to promote ethical behavior in nited states u project—but keep details to a minimum. viewing it from multiple perspectives the organization. What if the focus of the It isn’t uncommon or unethical for to see beyond our self-interest to the meeting, to borrow from leadership guru companies to sample talent by hiring larger impact. Stephen Covey, is “Think win-win”? different people. Some items you should discuss But if the project your friend worked We signed a contract to when thinking about an ethical work ntrepreneur- on had a messy ending—or is ongoing, deliver a new application of environment and customer trust: What and the client expects you to step in Q: our product. My partner was threats are likely to emerge from the to finish (or redo) it—there are ethical upfront and said we hadn’t done this type current way of doing business as you grow? What collaborations, resources, approaches, or standards could be leveraged to increase the tech team’s ability to successfully build experimental products? When leaders give assurances to customers, what should that mean? What values do you hold yourselves eprinted with permission from e accountable for as you develop products and client relationships? How can more transparency benefit your company and your customers? Taking a leap of faith is part of the entrepreneurial DNA, and “thinking win-win” makes it enduring, increasing the likelihood of a sustainable business and fostering customer loyalty. —Gael o’Brien

Gael O’Brien is publisher of The Week in Ethics and founder of coaching and consulting firm Strategic Opportunities Group. Follow her on

Twitter, @gaelobrien. illustration BY Luciano Lozano/getty images r

www.entrepreneur.com.ph/themagazine december 2015 -january 2016 19

MONEY 12/2015-01/2016 MONEY START IT UP DOING BUSINESS A cApitAl ideA TECH Make sure your financial projections are spot on written by CHARLENE PE

uring the first few months of its operations, fashion and home decor D retailer Flying Dutchman tried to keep its costs to an average of P50,000 per month, the budget which owner Jonathan Tolentino determined when he started the business four years ago. Tolentino figured the P50,000 would cover expenses for the business, which at the time had an online and occasional bazaar presence. But as sales improved, the retailer decided to open a physical store in 2012. Tolentino had to adjust Flying Dutchman’s financial forecast as he had to take on monthly rent and a bigger budget to buy stocks to meet stronger demand. The company, however, underestimated its capital requirements by 50 percent as it did not anticipate inventory flow and failed to account for the cost of reordering items. As a result, Flying Dutchman lost potential sales. In hindsight, Tolentino says the problem could have been prevented if he had been more careful and conscientious in projecting the company’s funding needs. The importance of forecasting cannot be overemphasized. A startup won’t be able to break even if there are big discrepancies between its expected and actual expenses, says Dr. Alejandrino Ferreria, president of the ACE Center for Entrepreneurship and Management Education Inc., a joint venture partner

of the Ateneo Center for Continuing espejo warren by illustrations Education (ACE) in Rockwell. >>

www.entrepreneur.com.ph/themagazine december 2015 -january 2016 21 MONEY

Henry Ong, a certified management consultant and president of the Young Entrepreneurs Society Philippines, says ideally, startups should project how much capital they need for their first five years. But they should prioritize forecasts for the first six months, first year, and the following year, as they are critical to the success of the business, he stresses. Making sure your startup will have capital during the early months or years depends on how accurate you’re able to project your funding needs and sticking to targets. Here are some pointers. >IdentIfy costs Make sure you account for both flexible and variable costs. Fixed expenses are cost that are independent of production or sales volume, while variable costs change proportionally to changes in production. Startups should consider one-time costs like incorporation fees, as well as utilities and other ongoing costs in the course of the business. “The higher the fixed expenses, the higher the break-even. Variable expenses [allow you to] fine-tune your gross profit A startup won’t be able to break even or margin. The higher your margin, the greater the chance for your business if there are big discrepancies between its to survive, assuming you have regular volume sales demand for your product or expected and actual expenses. service,” says Ong. Startups should also be able to products with very high margins. [What] and be ready for contingencies. Ong says distinguish between essential and we have to focus on is to develop the right businesses should use their own judgment optional expenses. Outsourcing, for product that has a quality that would to estimate a percentage of the total budget instance, is an optional expense, which justify its retail value,” says Tolentino. that will serve as a buffer for contingencies. startup owners should avoid when Flying Dutchman’s variable costs As budgets are only meant as a guide, there possible. When they were just starting mostly consist of buying merchandise, will most likely be discrepancies between out, for instance, instead of outsourcing a cost, which fluctuates from time to the projections and the actual expenses, jobs, Tolentino and his partner opted time. To cope, the company monitors and businesses should focus on controlling to do everything themselves, from its supplier’s prices and ensures that and maintaining the variance at a delivering merchandise, sourcing inventory costs won’t significantly reasonable level, he adds. This could mean materials to setting up the company affect margins. If the supplier’s cost making cuts in other areas, adjusting the website, and manning their store. increases by more than 5 percent, Flying scope when expenses go beyond estimates, Flying Dutchman’s essential expenses Dutchman buys from another supplier or saving when earnings are up, to be able include rent and production costs. who can offer the same, or a better, value, to have a security buffer. Manufacturing cost consists of labor—a says Tolentino. “It’s important to be Apart from having money set aside fixed cost—and materials cost, which aware of the things that could affect your for emergencies, Tolentino uses the varies according to the production business like the behavior of costs in the spare cash to take advantage of business volume. Since maintaining a physical market. You have to be more patient in opportunities as they become available. store, Flying Dutchman has been paying finding the right supplier that could give “Our savings are intended for [future a fixed monthly rent, too. “[Rent expense] you good quality at the right cost. Don’t businesses and emergency expenses, automatically reduced our sales margins. stop with just finding one, go around, ask which are] important for our growth Having a fixed cost pushed us to sell more around, compare, then finally decide.” and security...Aside from emergency and develop more products. At first, we expenses caused by forces of nature and thought that our pricing should depend on >set up a buffer unexpected costs, we treat an opportunity our expenses, but we eventually realized Ferreria says that businesses should be as an emergency expense. A very good that we don’t really have to sell our conservative in their business forecasts timing for a new business doesn’t just

22 december 2015 -january 2016 Entrepreneur Philippines [happen] every day and so when [there is an opportunity], we brainstorm, find a Cost CheCklist location, and venture,” he says. Make sure you’ve accounted for these costs in your projections. >research One way to keep a lid on costs is to do research. Startup owners can research One-tiMe Cost of goods sold Technological expense on similar businesses and use that fixed cOsts Companies that sell Technological expense information as a guide in cost estimates Equipment products incur costs consists of the cost This refers to the cost of such as direct materials of maintaining a for the budget, says Ong. Tolentino and buying machines to be cost, direct labor, and company website and his partner actually went around studying used in the startup. overhead costs, which IT infrastructure such existing brands to get acquainted with their are all directly related as enterprise resource branding, pricing, and marketing strategies Legal and to the products being planning systems before coming up with their own. incorporation fees manufactured. used in day-to-day Startups should also focus on the costs This refers to SEC operations. for product development and marketing, registration fees and a. Direct materials which are areas most companies other legal fees required This refers to the cost Supplies underestimate, adds Jonathan Chua, to set up a business. of raw materials used Supplies expense refers CEO of non-cash remittance service in manufacturing the to the cost of using Furniture and fixture products in question. consumables incidental BeamAndGo. Startups should research, This refers to the cost to the business. This ask around, and read up, to get a deeper of purchasing office b. Direct labor can range from office perspective on costs, he explains. When furniture such as chairs, This refers to the supplies such as paper, doing business forecasts, startups should tables, and cabinets. wages of workers notebooks, and ink first assess their business model—whether directly involved in cartridges to factory business-to-business, business-to- OngOing O r the manufacturing supplies used in consumer—then determine product and recurring cOsts process. production. marketing strategies. “Try to be as granular Rent and lease expense as possible. Saying ‘we’ll run some This consists of the cost c. Overhead Repairs and Facebook ads’ is not enough. Be specific.” of renting property such This refers to other maintenance as office space or leasing expenses directly This refers to the cost of equipment such as incurred during maintaining equipment >observe and adapt machines. Rent is usually the manufacturing owned by the business. Ferreria says that startups should paid on a monthly basis, process. This usually Repairs and maintenance monitor variable costs on a daily basis while payment of leasing includes expenses is a cost businesses during the incubation period. Real time fees depends on the like power, gas, should consider when or current costs should serve as the basis agreement with the lessor. and equipment deciding between for future projections, he says. “The maintenance. leasing and purchasing entrepreneurial way is to incubate the Utilities equipment. In the case of enterprise and make adjustments along This primarily refers In the case of retailers, manufacturing firms, the the way [daily in many cases] until the to the cost of using cost of goods sold refers repair and maintenance electricity and water in to the cost of purchasing of equipment directly situation [becomes] stable and therefore day-to-day operations. inventory from suppliers. related to the production predictable. It is only at this level of Cost of goods sold process is usually stability [that] forecasts [can be used as] Salary expense consists primarily of labor accounted for in cost of a tool to predict the future,” he says. This refers to the cost, freight cost, and the goods sold. BeamAndGo initially came up salaries of non- total purchase figure. with a range for budget items like manufacturing Research and development costs, hosting, marketing, employees. This may Tax expense development expense sales. It eventually made a point to also include employees’ This refers to business Some startups usually define its budget based on performance withholding tax taxes due the government. outsource the services metrics, with the flexibility to adjust expenses, 13th month of market research pay, and other bonuses Selling expense and consultancy quickly. “I believe that succeeding is they are entitled to. Selling expense consists firms to help them not about keeping a tight rein on costs of agents’ commissions, research about market but maximizing the ROI [return on Interest expense as well as the costs trends and consumer investment] on every dollar that is spent This is the cost of using related to sales and behavior. Research and in the business. When factoring costs, loans, credit lines, and marketing activities. development usually [you] establish metrics for each cost. bonds. This is incurred This includes the cost of refers to expenses By analyzing these metrics, you can periodically, depending developing promotional directly related to understand how to maximize the return on the terms and materials and business development on your spend and minimize the risks to discount rate. advertising campaigns. activities. your budget,” says Chua. E

www.entrepreneur.com.ph/themagazine december 2015 -january 2016 23 FINANCIAL ADVISER

What are the other alternatives to make Henry Ong, CMC, CMA is president and COO of Business the buy-out possible? Sense, a business advisory firm that provides solutions to If you are going to use your own money small- and medium-sized companies. you may reach him to buy out your partner, this transaction at [email protected] or follow him on Twitter @henryong888. will be fast and simple, but your return on investment will be lower. Because of the premium that you agreed to pay, your investment will be higher and the payback period will be longer. It may take some time before you can fully recover. You may also borrow to finance the acquisition, but you have to make sure A fAir deAl that the income that you will earn from When buying out a partner, make sure your the business will be able to pay your interest and principal over time. The valuations are in sync downside is, a bank can turn down your loan application. If you don’t have My friend and I set up our track record with the bank, your credit small grocery business four Valuation can be limit may be limited and you may not Q: years ago. But I do most of quite subjective be able to get the funding you need. the work these days because she works Also, your interest cost may also be high overseas. I want to buy her out. How do depending on the considering the risks. I make sure I’m able to offer her a fair assumptions of the Alternatively, you can negotiate with deal, while at the same time, taking into your partner to allow you to pay by account that for the past year, I’ve single- people involved. installment over a period of time. To handedly ran the business? compensate her for the potential loss your partner may demand a premium for of income, you can offer to pay a higher The first thing to do is to her share, being one of the founders of the multiple provided she agrees to your come up with fair valuation business. You will have to agree with your term period, say 12 to 24 months. A: of the business. Valuation partner what premium is reasonable. This way, your partner will act like can be quite subjective depending on One way to value the business is by using a lender. You can use the company’s the assumptions of the people involved. multiplier of either the net book value, monthly cash flow to finance your buy- Sometimes, this can become a source monthly gross sales, monthly gross sales out. Over time, as you pay down your of disagreement among partners, so it’s plus inventory, or after-tax profits. If you opt liability to your partner, you increase important that before you do this for the net book value, you can agree to use your share in the business until you take exercise, you and your partner have multiplier of times three. This means that if full control. This option is best as you similar assumptions. the net book value of your grocery business don’t have to borrow from the bank nor You can agree to price the business at is P500,000 and the share of your partner shell out your own cash. net book value as a starting point. The is P250,000, you will pay her times three net book value represents the resulting the amount of her share, which is P750,000. equity of the business after you deduct The premium, in effect, is P500,000. all your liabilities from your total assets. Now, let’s say you posted a net do the math To get your net asset value, simply add income of P150,000 and you agreed up all your cash and inventory minus all with your partner to value the business Valuation by b ook Value Total Assets 1,000,000 your payables to suppliers. This amount is based on income using multiplier of Less: Total Liabilities 500,000 the accounting value of the business that times eight, the business will be valued also represents the actual capital that you at P1.2 million. You can buy out your Net Book Value 500,000 50% share of Partner 250,000 invested in the company, plus all income partner’s share at 50 percent of the S that the business has earned to date. amount or P600,000. The premium, in Agreed Multiple 3 Valuation of the Share 750,000

If the business was losing and you are this case, is P350,000. ndre Less: Book Value of Share 250,000 about to liquidate and distribute the assets, The premium multiplier that you will Premium 500,000 the net book value would be the basis for use will depend on a lot of assumptions. j OH n A your division. You can simply divide the Since you have been running the business Valuation by i ncome S amount by two and pay your partner the single-handedly, you can negotiate for a Sales 1,000,000 Less: Cost and Expenses 850,000 AM e cash that you will raise from the proceeds lower multiple and argue that the growth Net Income 150,000 by selling your inventory and other assets. of the business was due to your effort. But because you expect the business Once you have agreed on the valuation, Agreed Multiple 8 Total Valuation 1,200,000 to continue operating profitably in the the next thing you need to solve is the 50% share of Partner 600,000 future, there will be some income that your financing. Are you going to use your own Less: Book Value of Share 250,000 Premium 350,000 partner will not be able to earn anymore money to buy out your partner? Are you j by illustration after you buy out her share. In this case, going to borrow money to finance this?

24 december 2015 -january 2016 Entrepreneur Philippines

PERSONAL FINANCE

The Eurozone remains intact according Rienzie Biolena is one of the pioneering members of the to the IMF, with a robust recovery in Registered Financial Planners Philippines. He is also an accredited domestic demand and inflation beginning investment fiduciary of the U.S.-based fiduciary education and training provider fi360, and a chartered wealth manager of the american to increase. McKinsey & Co. also association of Financial Management. You may reach him at rienzie. observed improving consumer sentiment [email protected], or follow him on Twitter @rbiolena. as well as gains in manufacturing and trade. From a 1.5 percent growth in 2015, the Eurozone is seen to grow between 1.7 and 1.8 percent in 2016, according to the World Bank and IMF. Major economies in Asia like Japan Good vibes What to expect in 2016 will have modest growth due to weak consumption. China, which is undergoing a he new year comes with new between 3.3 and 4.1 percent, up from rebalancing of its economic growth model, opportunities and challenges. If you’re the 2.8 and 3.8 percent forecast in 2015. is seen to slow down to 6.3 to 7 percent in T an entrepreneur, there’s certainly money The forecasts are significantly above 2016, according to the IMF and McKinsey. to be made if you invest your money right. the average global growth of 1.8 percent Given these backdrop, how would the After the recession of 2008 and 2009, during the past 50 years, making it a good Philippines fare in 2016 given that it investors saw significant gains in the backdrop for investments, says McKinsey. is also an election year? Experts agree market. This is most notable in the equities The International Monetary Fund that the economy will grow 6 percent in market, with the Philippine Stock Exchange (IMF) forecast that the growth of 2016, which is on par with China and well Index rising by more than 300 percent from advanced economies will pick up above the growth pace of most advanced its lowest point in October of 2008. gradually from 2.1 percent in 2015 to economies and even the global economy. But remember, the stock market 2.4 percent in 2016. It also projects All told, 2016 is expected to be another does not move in a straight line. The developing countries economies growing banner year for the stock market which recovery from the recession, for instance, from 4.2 percent in 2015 to 4.7 percent may gain at least 9 percent for the full year. looked more like a roller-coaster ride, in 2016 due to improving economic It doesn’t mean, though, the market with market corrections, spikes and conditions and lower oil prices. Citing will go on a straight path. There would be volatilities caused by headwinds like experts, the Wall Street Journal forecast bumps along the way, of course, but this should be seen as opportunities to buy and All told, 2016 is expected to be another accumulate more shares. In a study, Junie Banaag, equities fund manager at Philam banner year for the stock market, Asset Management Inc., says that the stock which may gain at least 9 percent for market moves in tandem with corporate earnings growth, which bodes well for the full year. stocks as experts see corporate earnings growing between 13 and 16 percent next the Eurozone crisis, the U.S. credit that oil will remain below $60, ranging year, further strengthening the outlook that rating downgrading, quantitative easing from $54.40 to $58.70 per barrel, due to the stock market will indeed gain. concerns, the U.S. Federal Reserve ample supply and weak global demand. Given that 2016 is an election year, interest rate hikes, and just recently, The U.S. economy is seen to have a election spending will kick in and provide concerns over the Chinese economy. deeper and stronger recovery in 2016. The more stimulus to the economy. In another Navigating the investment climate IMF cites major economic factors such study, Banaag says the stock market is never easy, nor the route, sure and as wage growth, improving labor market historically gains at least 15 percent after predictable. Investing is like sailing the conditions, easy financial conditions, and the first year of every presidential election sea—you may know your destination and upbeat investor sentiment. McKinsey (starting with the Ramos administration), how to get there, but the winds and the identifies increased trade activity, lower and at least 63 percent after the second S seas may not go as predicted. That’s why, fuel prices, and a strengthening housing year in three out of four presidential e like sailors, investors should know what market bolstering this outlook. The World elections. With all of these, the stock the weather is like before setting sail. Bank, McKinsey, and the IMF expect the market will most likely go up next year. n and R For 2016, the overall global economic U.S. economy to grow between 2.8 and Consumer stocks would be a good bet for jo H environment is expected to be better 3 percent in 2016, up from 2.5 percent the year as they are expected to benefit S e than it was in 2015. This is encouraging in 2015. The Federal Reserve, however, from election spending. M as the global market acts like the tide is poised to raise interest rates, which As an entrepreneur, you can go for and the individual country markets like may cause some volatilities in the global pooled funds like mutual funds or boats—when the tide is up, the boats go up stock markets along the way. This move, unit investment trust funds or hire a as well. According to the World Bank and however, can be construed as a welcome professional fund manager to help you management consulting firm McKinsey one, as this means that the U.S. is really manage your investments so you can focus

& Co., global economic growth will range catching up. more on building your business. ja by illustration

26 december 2015 -january 2016 Entrepreneur Philippines

Best laid plans Consider a one-pager instead of a long business plan for your startup written by JuJu Z. Baluyot

hen you’re new to startup circles, The shorTer, The beTTer Running Lean—that sums up everything how do you introduce yourself? VC firms like Kickstart Ventures like about your startup in just a single page. W Handshakes and calling cards to see startups plan over the next three In 2009, Maurya adapted Lean Canvas will only get you so far. There should to five years, says Navarrete, “because from Alex Osterwalder’s own Business be a formal document about who you innovation initiatives, especially, go Model Canvas, looking to make it as are, according to Minette Navarrete, through a period of experimentation “actionable as possible while staying president of Kickstart Ventures—and where we assume there will be various entrepreneur-focused.” Theoretically, that’s where a business plan comes in iterations or changes [along the Azurin says, one can draft a Lean Canvas handy. This outlines a founder’s desired way].” This helps the readers to better in as short as 20 minutes. “A Lean Canvas path for the growth of their startup, and understand the underlying economics provides the startup a window of a viable by laying down specific metrics on paper, of the business they’re in, and give them business model; hence, it becomes the it “identifies the milestones to achieve an idea how the startup may fare locally, business plan,” he says. those metrics: what does success look regionally, and globally. like, and how to get there from their But the uncertainty in which startups Plans change—don’T sweaT iT starting point,” she says. operate has driven others away from Unlike other kinds of businesses that can s E

But if you’re thinking a good business g the conventional business plan, says roll out based on a time-tested playbook, A

plan should run as long as a novel, Founder Institute Manila co-director a startup doesn’t have the luxury of im you’re wrong. On the contrary, says Y Jojy Azurin. “Startups with limited relying on a proven model. “Startups, tt Navarrete, it’s important to keep it resources have only a few months to live and indeed any innovative enterprise, are E simple and concise; it should have just [so they] need to quickly find out the best building businesses in an environment enough information, written in a clear business model to succeed,” he explains. of uncertainty,” Navarrete says. “This and compelling manner, to entice your A traditional business plan takes a lot of difference means that startups need to be reader. “If you have done a good job time to make and “85 percent of plans absolutely clear and honest in writing a [with your business plan], the potential change, anyway.” business plan, and in identifying what partner, investor, or customer will seek Instead, Founder Institute Manila asks are knowns versus the unknowns and more information,” she adds. “What we its startups to draft a Lean Canvas—a the unknowables.” want to see [in a business plan] can fill up business model developed by Ash That’s why a business plan is about a very short piece of paper.” Maurya, CEO of Spark59 and author of direction, not finality. “A Lean Canvas illustration BY ANDY BAkER/g

28 december 2015 -january 2016 Entrepreneur Philippines “A Lean Canvas allows you to constantly change along the way. It doesn’t penalize you if you constantly revise.” necessarily mean the startup can no Overpromising, passing off assumptions longer be flexible; they are supposed to as facts, or opinions as data, or presenting go into detail about the founder’s goals growth projections based on untested for the business, but the startup can assumptions won’t win you any good still pivot when data shows a need for it. favor, warns Navarrete. Instead, do your If anything, a business plan “provides homework and go out of your way to meet clarity around what to hold fast to, and and get to know your target customers what to change out,” she says. before working on your business plan. Change is inevitable, most especially for startups that have yet to make a name for PeoPle maTTer over Plans on PaPer themselves in their industry—and that’s fine. It’s essential to have a business plan from the “Don’t be afraid to change it. Don’t be afraid onset, because it doesn’t just give potential to fail,” Azurin advises. “Failure is just a fine- investors or partners an idea about the tuning process on the way to success.” startup, it also helps first-time founders themselves think about what—and who— exaggeraTion will geT exactly that they’re offering the market. “The you nowhere business plan clarifies the capabilities and In the end, business plans are there for talent that a startup needs,” adds Navarrete. you to put your best foot forward, but No matter how impressive a business not to stretch the truth. Being honest plan might read, ultimately, what holds is more likely to impress. “For all the the most weight to investors are the ‘fake it ‘til you make it’ hustle involved in founders themselves. “Investors have startup pitches, we believe it’s critical to seen thousands of plans. They are not be forthright with investors,” Navarrete investing in the plans; [they] invest on the says. “We are more likely to invest in a founders and their abilities to execute,” founder who failed in an ambitious plan, Azurin says. “As they say: ideas are allows you to constantly change along but shared the information throughout; cheap.” Navarrete agrees, “The business the way. It doesn’t penalize you if you rather than a founder who might have plan is a starting point. What will bring constantly revise,” says Azurin. Navarrete been successful previously, but whose you forward is your ability to execute and agrees that having a business plan doesn’t integrity is suspect.” deliver results with impact.”

Google isn’t going If you’re a newbie, Don’t overuse Do your research. to write your find a mentor and startup Many startups may the business plan for get involved in buzzwords. not yet know exactly you. “Templates the local startup Padding your what their customers are useful things. ecosystem. This business plan want, says Azurin, Write But like everything will help you gain with words like but that’s why it’s found online, some valuable insight “innovative” and crucial to look for templates are very from those who have “disruptive” is early adopters stuff good [while] some already amassed a turn-off, says and get feedback are trite or downright a lot of knowledge Navarrete. early. “A shallow Whatever format terrible,” says and experiences understanding of you prefer, here Kickstart Ventures for themselves. the market” and are some tips president Minette Serial entrepreneur “assuming industries to keep your Navarrete. Jojy Azurin says, are static” are some business plan an “The people in this of the cardinal sins interesting read: community are of drafting a business [among] the most plan, says Navarrete. helpful bunches in the country.”

www.entrepreneur.com.ph/themagazine december 2015 -january 2016 29 A cloud-based app SAMPLE Product: that builds fully-functional websites

PROBLEM SOLUTION The lean canvas >Complex >App with an websites easy to use are difficult interface where TemplaTe to make you just drag- without a and-drop web desktop elements computer > PROBLEM Work is saved This should be a well-defined >Buying web on the cloud and problem or customer pain point that design software can be accessed your product or service is looking to solve. “Whose problem is it, or hiring a web on desktop why is it a real problem, and what designer can computers, so makes it worth solving for whoever in the business model pays for the be expensive you can build solution?” asks Minette Navarrete of on your website Kickstart Ventures. “Most technical problems worth solving can be >Available web later on captured in plain English, even if the builder apps solutions might be more complex are lacking to explain.” in enough KEY METRICS features to >App downloads make a decent per day website

KEY METRICS >Add-on “A startup needs to know which purchases metrics define ‘go’ or ‘no go’ decisions; and which ones made per day define ‘accelerate,’ ‘fix,’ ‘pivot,’ or ‘close’ decisions,” Navarrete says, so flexibility needs to be built into its business plan. “There has to be specificity about what assumptions are being made, and which are the most critical that need to be tested first.”

COST STRUCTURE Add-on features at P25 apiece App development costs:P50,000

COST STRUCTURE Hosting costs:P5,000/month “Financial projections are [not] cast in stone, because forecasts are almost Beta testing costs:P500/50 always wrong,” says Navarrete, but testers over six months financials should show “the ‘shape’ of the business, and how it grows and matures over time.” Break even at 3,000 unlocked add-on features

30 december 2015 -january 2016 Entrepreneur Philippines

1215-0116 STARTITUP OPENER.indd 30 11/26/15 3:10 PM A cloud-based app SAMPLE Product: that builds fully-functional websites

PROBLEM SOLUTION UNIQUE UNFAIR CUSTOMER The lean canvas >Complex >App with an SELLING ADVANTAGE SEGMENT websites easy to use PROPOSITION >All layouts >Early-stage are difficult interface where >Design complex, are saved and businesses TemplaTe to make you just drag- fully customized hosted on the with limited without a and-drop web cloud so it budgets UNIQUE VALUE PROPOSITION websites on a In assessing their startup’s problem- desktop elements mobile device, won’t take up solution fit, Navarrete advises ‘treps computer without writing space on your >Small-scale to think on these questions about their unique value proposition: > mobile device e-commerce PROBLEM Work is saved a line of code “What is the problem your product This should be a well-defined >Buying web on the cloud and merchants is trying to solve? Is it a problem felt by many, or just confined to the problem or customer pain point that design software can be accessed > your product or service is looking Already entrepreneur and [his] friends? Is it to solve. “Whose problem is it, or hiring a web on desktop comes with a CHANNELS >Men and a problem someone would pay to why is it a real problem, and what designer can computers, so comprehensive women aged make it go away, or is it a solution makes it worth solving for whoever >Apple App looking for a problem?” in the business model pays for the be expensive you can build set of features, Store 27, the solution?” asks Minette Navarrete of on your website add-ons optional average age Kickstart Ventures. “Most technical people become problems worth solving can be >Available web later on >Google Play captured in plain English, even if the builder apps >No intrusive Store entrepreneurs solutions might be more complex are lacking to explain.” pop-up ads in enough KEY METRICS while you use features to > the app CUSTOMER SEGMENT App downloads It helps to cite data drawn from make a decent per day legitimate customer feedback website for your business plan. “What helps to impress us [is] actual KEY METRICS >Add-on market information—not desk “A startup needs to know which purchases research, speculation, or opinion,” metrics define ‘go’ or ‘no go’ says Navarrete. “[We want] real decisions; and which ones made per day customers using and reacting to a define ‘accelerate,’ ‘fix,’ ‘pivot,’ real product.” or ‘close’ decisions,” Navarrete says, so flexibility needs to be built into its business plan. “There has to be specificity about what assumptions are being made, and which are the most critical that need to be tested first.”

COST STRUCTURE REVENUE STREAMS Add-on features at P25 apiece >Donation button UNFAIR ADVANTAGE App development costs:P50,000 Founders should also be able to present >Crowdfunding campaign their startup’s competitive edge, especially if they’re venturing into a dense industry COST STRUCTURE Hosting costs:P5,000/month that already has many players. Says “Financial projections are [not] cast in >Add-on purchases to Navarrete, they should be able to answer stone, because forecasts are almost Beta testing costs:P500/50 unlock more advanced questions like: “What do you have that always wrong,” says Navarrete, but testers over six months others don’t have? Why would a customer financials should show “the ‘shape’ of features buy your product or service and not your the business, and how it grows and closest competitor?” matures over time.” Break even at 3,000 unlocked add-on features

30 december 2015 -january 2016 Entrepreneur Philippines www.entrepreneur.com.ph/themagazine december 2015 -january 2016 31

1215-0116 STARTITUP OPENER.indd 30 11/26/15 3:10 PM 1215-0116 STARTITUP OPENER.indd 31 11/26/15 3:10 PM start it up

hen the export market for Marikina-made shoes dried up W in the 80s, the Cheng family, which had been in the shoe business Course for decades, changed course. The maker of shoe brands like B Club, AGS, Dominique, Leaveland, Surfers Island, and Urge ditched the export CorreCtion business and instead focused on the local retail market. It was a big decision It’s never too late to shift gears that meant closing down their tanning factory in Marikina. Not wanting the property to lay idle, the family decided on a completely new course: They turned it into a restaurant and events place called Industriya Marikina. The restaurant venture was new territory for the Chengs. Alex Cheng, general manager, says, “We wanted to try the restaurant business, as this is one of the growing businesses in the Philippines and in Marikina, particularly.” Open since November 2014, the restaurant can seat 120 and 130, respectively, while its events area can fit 250. There are still touches of the old factory in the new structure: The wood the Chengs saved from the old factory was repurposed in the new building. It doesn’t stop there. “The details you will see [are] truly a work of art,” she says, citing the dyed beer bottles arranged into chandeliers, wooden molds (called shoe lasts) on the feet of their couches, dining seats made from fitting chairs or reupholstered with old leather, and windows made from old glass shelves used in some of their shoe stores. Repurposing many items and equipment from their old factory and shoe stores helped the Cheng family save on costs in building the restaurant. Since they are new to the restaurant business, the Chengs are busy learning the ropes. For instance, they’re still getting used to running their kitchen on the second floor, knowing the Marikina area is prone to floods. Cheng advises entrepreneurs The old shoe factory was torn who want to diversify their business down so it could be rebuilt using portfolio to go with their instinct concrete. It took the Cheng family and never be afraid to learn. “I am two and a half years to turn the very hands-on in the business,” property into a restaurant and she explains. “I treat every day as a events space. learning opportunity.” —Cathie Carpio baldonado jonathan by Photos

32 december 2015 -january 2016 Entrepreneur Philippines

1215-0116 START IT UP INDUSTRIYA MARIKINA.indd 32 11/26/15 3:27 PM doing business

No busiNessmaN is aN islaNd Why joining a community of entrepreneurs makes sense davor pavelic/getty images pavelic/getty davor by illustration

written by Kim Arveen PAtriA

www.entrepreneur.com.ph/themagazine december 2015 -january 2016 33 n entrepreneur is someone who inspire younger members to become For the Association of Filipino identifies a consumer problem self-made achievers. “One main Franchisers Inc. (AFFI), meanwhile, A and offers a sellable solution. That advantage of joining an entrepreneur strength in numbers means it can host definition takes the entrepreneur out organization is the ability to network regular trade shows where members can of a vacuum: You, as an entrepreneur, with like-minded entrepreneurs who present franchise concepts to potential cannot exist without your consumer. can be your partners, suppliers, or investors. “Franchisees are more likely The businessmen we’ve interviewed, customers in the future,” Ong explains. to visit trade fairs where they can look however, agree that clients are not the Another benefit, he adds, is the into several options than a meeting only ones you need for your enterprise to learning you gain from joining where they will see only one franchise truly grow. You must also seek input from forums, seminars, and conferences concept,” says AFFI executive vice workers, investments from partners, and your organization hosts. “Some of president Ricardo Cuna. even insights from competitors. these lessons can be valuable to your Entrepreneur organizations or business,” Ong says. booSting truSt associations, they say, are good places Membership in an organization also to find all these potential actors in your Strength in numberS bolsters the legitimacy of a business, business success story. Andoni Albert, president-elect of which Cuna says is key to attracting “Success in business is not only the Entrepreneurs’ Organization clients and, more importantly, investors. determined by what you know but also (EO) Philippines, agrees that hunger “When you’re in the trade fair of a by whom you know. The more people for knowledge and insight is a good large group of franchisers, people you know in the business, the higher your motivation to seek membership in a are more confident to work with you,” chances of succeeding,” says business group. The EO is a peer group that he explains. AFFI has some 165 consultant and EntrEprEnEur columnist caters particularly to “hyper-growth” members, some of them founders of Henry Ong. Ong is chairman of the entrepreneurs, or those whose homegrown businesses that have gone Young Entrepreneurs Society (YES) businesses are growing exponentially. global. It is one of only two prominent Philippines, a group that supports young Thus, like the YES, the EO gives organizations of Filipino franchisers, entrepreneurs and even students with entrepreneurs an easy way to relate to, the other being the Philippine Franchise business potential. YES holds mentoring share with, and learn from each other. Association (PFA). sessions, boot camps, and competitions But Albert says being part of an Cuna owns Milkin Corp., the for its campus chapters nationwide. It organization makes it easier not only to franchisor of ice cream brand Fiorgelato. counts as its members the founders of learn from within your group, but also He thinks that prestige—both of the some successful Philippines businesses, from without. “As a collective, we gain PFA, of which he is a longtime member, including the local arm of online food access to global speakers and learning and the AFFI, which he co-founded delivery marketplace Food Panda, events to further grow and develop as 18 years ago, contributed to Milkin barbecue chain , and tutorial entrepreneurs,” he explains. Corp.’s success. “That’s why it’s and review center AHEAD. In the case of the EO, which has important to maintain the organization’s Being in the company of established chapters in other countries, members good reputation,” Cuna says. The AFFI businessmen, of course, does not also get to learn from entrepreneurs is strict about screening prospective guarantee success, but Ong says his of different cultures. “This gives us, in members based on criteria that include group facilitates interaction among turn, the opportunity to expand our branding, sound franchising practice, and generations of entrepreneurs to businesses in new markets,” Albert says. potential organizational contribution.

EntrEPrEnEurs’ YOung EntrEPrEnEurs sOciEtY OrganizatiOn-PHiliPPinEs (YEs) PHiliPPinEs joining the club The local chapter of the global peer- YES links budding and potential Entrepreneur organizations in the to-peer network of entrepreneurs was entrepreneurs with successful business Philippines range from broad to founded in the Philippines in 1996. It now owners, events, and mentorship and specific. Here are some that might has 136 members. Membership is by networking opportunities. It has chapters pique your interest: invitation only, so if you want to join, you in colleges and universities nationwide. If need to ask a member to endorse you. you are 18 to 49 years old, whether you You must also be the founder, co-founder, already have a registered business or plan owner, or controlling shareholder of a to start a business, you are qualified to company that grosses $1 million annually. join YES. If you own a business, however, Even if invited, you need to go through you must be generating at least P1 million screening. As a member, you may attend in annual gross sales. If you are over 50 trainings, meetings, chapter, and global years old, you may still join as an affiliate. events. The EO has more than 10,000 Benefits include invitations to forums and members worldwide. The annual fee learning events, online and face-to-face is P55,000, on top of the one-time new mentoring, discounts on YES-produced and member chapter initiation fee of P30,000. -sponsored seminars, among others.

34 december 2015 -january 2016 Entrepreneur Philippines activities that your experience will be most “One main advantage of joining an rewarding,” he says. entrepreneur organization is the ability to When it comes to fees, Albert insists the cost should be commensurate to network with like-minded entrepreneurs the benefits. Ong, meanwhile, notes who can be your partners, suppliers, or that fees can regulate the quality of members. “If you pay a high fee, that customers in the future.” means your business is probably successful,” he says. Only half of those who apply for Like Cuna, Ong finds wisdom AFFI membership get accepted, Cuna in joining a group even if you’re a Deal breaker? estimates. “We don’t want members giant. “For more established ones, But Ong, Albert, and Cuna agree that who will only take advantage of the [organizations mean] more than the biggest investment you will make organization’s network and brand; we connections. It can be for political when you join an organization is not the are looking for people who also want to lobbying to promote and protect their membership fee but your time. It is also contribute,” he explains. business interests,” he explains. the reason many entrepreneurs don’t join groups. “In order to take advantage Coping with the timeS ChooSing your peerS of the networking and mentoring This eagerness for collaboration is also Ong highlights the importance of opportunities, you need to actively the reason why AFFI, which used to profiling entrepreneur organizations participate in all the activities. Can you be open only to owners of franchise before joining one. “Before you join any afford to leave your business with your businesses, recently welcomed group, you should find out whether it associates for a day or two?” Cuna says. members who are not in franchising, will add value to you and your business,” If your answer is yes, Cuna says you accepting even startup owners. “Our he says. should make the time investment count. organization’s advocacy is really to Will the members enrich your “Gather as much insight as possible, but provide small and medium enterprises network? Do you see possible partners also share what you can, ’wag lang puro vehicles for growth. Franchising is one or clients from the membership tanggap. When you share your insights, effective growth strategy, but there are pool? What are the activities in the people will return the favor,” he adds. emerging business models that may organization that will help your Ong, meanwhile, goes as far as saying offer opportunities. We don’t want to be business? Are you interested in the that if you can find time, it makes left out,” Cuna says. seminars or forums they usually host? sense to be part of more than one In business, Cuna notes, how much you Albert, for his part, says you should organization. “Organizations can have know is not always directly proportional make sure your personal and business different objectives and both can benefit to how long you’ve been doing it. “It’s beliefs are aligned with the core values of your business,” he says. never too early to join an entrepreneur the organization. He also advises that you Albert agrees, but notes that joining organization, because you will learn from identify what you want to learn, and use it more than one organization might your big brothers in the group. But it’s as a guide in scouting peers. “Your mindset weaken your commitment. “If you can also never too late, because veterans will needs to be: I am ready to give time and fully align with the mission of one group, benefit from the innovativeness of young energy to this organization. It is really in that would be enough to satisfy, and even members,” he says. giving time to the learning activities, board exceed, your expectations,” he says. e

assOciatiOn Of filiPinO PHiliPPinE rEtailErs PHiliPPinE cEntEr fOr francHisErs inc. (affi) assOciatiOn (Pra) EntrEPrEnEursHiP (PcE) Owners of homegrown businesses that First known as the Chamber of Philippine The PCE is a non-profit organization that eventually became successful franchise Department Stores and Retailers Inc. in promotes entrepreneurship as a solution brands—Figaro, Fiorgelato, King, 1976, the PRA has evolved into a 400- to unemployment, underemployment, or Lavandera Co., Malabon, and Potato strong network of companies, including labor migration. It helps SMEs by linking Corner, among others—founded AFFI retailers, mall operators, suppliers, them with partners and giving them access in 1997. It now has some 165 members. manufacturers, distributors, and to training programs and funding sources. AFFI used to be open only to owners or wholesalers. You may join the PRA as a Through its advocacy program called executives of franchise companies that regular member if you are directly involved Go Negosyo, launched in 2005, the PCE have been operating for not less than two in retail and have been operating for at regularly holds Negosyo Seminar, a one-

years, but recently allowed members who least year, or as an associate member if you day affair for SMEs, as well as caravans Kadur/getty images hristoph are not into franchising to join, so long as supply services, equipment, or materials to and summits, which are usually open to they have been operating for at least a year. retailers. Members gain access to industry the public. You don’t need be a member to Benefits include educational programs, information and publications, seminars participate in mentorship programs. You slots in trade shows, and consultation and trainings, as well as opportunities for may, however, offer to be a partner or an sessions. Members need to pay an annual community service. There’s a one-time fee exhibitor during caravans, host seminars, or

fee of P9,000. of P10,000, plus annual dues. help train aspiring entrepreneurs. c by illustration

www.entrepreneur.com.ph/themagazine december 2015 -january 2016 35 fledgling business will do practically anything just to get noticed and, A in turn, gain loyal customers. Speak eaSy Press releases are a way to spread the word without having to shell out There’s an art to writing a press release a small fortune. by Lorenzo G. AbeLLerA Distributed to print, online, or broadcast media, press releases can come in the form of straight news about a company or establishment, or in the illustrations by jeremiah idanan by illustrations

36 december 2015 -january 2016 Entrepreneur Philippines form of features, with topics ranging from outreach or corporate social responsibility Press release programs to lighter approach on new products or services. There are also photo releases, with information-laden captions. essentials Milen De Quiros, who heads Writing a press release may sound communications firm Full Circle Inc., intimidating. It doesn’t have to be. says that, among communication tools, Just remember these five basic rules. issuing a press release is the fastest way to spread the word about the latest developments in an enterprise. 01 Don’t forget the what, when, where, why, “We advise our clients to hold press and how of an event or a product offering. Answering the question “So what?” would conferences if there is something big also be helpful as this would tell the reader to announce. There are also media or why the event or product offering is relevant product launches. But with these, you still to them. “In any press release, what is have to look for a venue, prepare to feed A press release important is that it provides the information guests, and do a set-up for the program. that the public should know,” says Andres With press releases, you just have to send should contain a Saracho of the Public Relations Society of email to the editors,” she says. real, valid story that the Philippines. Content iS king would be palatable 02 Keep it simple, straight to the point, But while issuing press releases sounds and informative. Press releases have been given a bad name for having flowery words. as easy as hitting the send button, to the readers Editors, not to mention the readers, will an enterprise will have to work hard easily give up on reading press releases in order for their announcements or “You have to know how the media that are too wordy. statements to stand out among the heaps works,” she adds. of press releases that reach the reporter 03 Make sure the release is error-free or the editor. A press release should it’S not about you and grammatically correct. A press be worth the time of the editor, not to And while press releases are intended statement that is free from grammatical and mention the limited space on magazines to announce good news from a company, typographical errors would easily make it to and newspapers, and the precious air the article should be written with the the editors’ selections. time on TV or radio. readers’ preferences in mind. If the business 04 Keep the consumer in mind. The goal of “If the press release complies with is a newcomer, the press release should be a business is to be able to create awareness all or most of the elements of news, if I able to convey to the readers why the story and spur people to buy their product or know it will click with my audience, if should be read and why the business or a service. This is where a press release it has complete details or most of the product should be patronized. comes in. But businesses or writers of press basic details, has minimal grammatical De Quiros says the press release releases should bear in mind that readers do errors, and is written in a very simple should be written with none of the not want to feel that they are being forced to and attractive way, I will publish it,” says flowery words that make press releases buy. Keeping the press releases informative, Regina Bengco, senior deskman at the “praise releases.” The writer of the and, to a certain extent, entertaining, would Malaya Business Insight. press release should ditch claims of the do the trick. “There is a traditional way of Simply put, a press release should business or a product as being the best writing press releases, mostly they are text heavy with really long paragraphs (that contain a real, valid story that would or being the number one, as readers get sometimes contain technical terms and be palatable to readers. Targeting easily tired of hard selling. “We are now quotes) and tend to hard-sell a product or publication of press releases on a in the age of sincerity and authenticity. event. Today’s readers or consumers don’t schedule, say on a weekly basis, without The audience is discerning. They know if want to feel like they are being forced to buy having a good story to tell, will just be you’re not telling the truth,” she notes. something. They should feel that they are a waste of time, says De Quiros. “Even Andres Saracho, head of the professional reading any ordinary news or feature story if you have a good relationship with the development team of the Public Relations with details about a product, or event...eased media, if your release does not have a Society of the Philippines, adds: “‘Praise into it,” says Regina Bengco, senior deskman good story, it will not see print. You releases’ are a no-no and will surely go at the Malaya Business Insight. have to have a good story,” she says, straight to the trash bins. The release 05 Make it visual. In this day and age of citing for example the relevance of a should be straight to the point, using multimedia technology, texts should be product and how it will improve lives simple language and no hard sell.” supported by pictures so the readers and as good story angles. For the startup or the newcomer, the editors can appreciate the release Timing is key when sending out press De Quiros says the focus should still better. Enclosing pictures and even video releases, she says, given the deluge be on growing the business and not clips, which would be useful to online media, of stories and issues that would only just on publicity. “If you can’t sustain your should win the attention of both the editors eclipse an announcement or statement. business, no one will believe you,” she says. and the readers, says Bengco.

www.entrepreneur.com.ph/themagazine december 2015 -january 2016 37 CUSTOMER 007 Improve your customer service by employing mystery shoppers

ike any other business owner, you restaurants and bars, hotels, on this criterion and contact people probably wish you know what your government offices, airlines, cinemas, to review this questionnaire, and L customer thinks about your offering. malls, gaming centers and health mystery shop the target store. “The But how do you assess exactly if your facilities, and retail establishments. success of a mystery shopping program product is effective, your establishment Patel says that mystery shoppers are depends on a very good questionnaire, customer-friendly, and your service there not to find fault in the staff but to which uses words that can easily be excellent? One way to take out the catch people who are doing things right. understood and are not vague and open guesswork is through mystery shoppers. to misinterpretation,” says Patel. “The “Mystery shoppers are real customers dIy MySTERy ShOppIng challenge in doing it yourself is ensuring who anonymously evaluate their If you don’t have a budget to hire a firm that your mystery shoppers remain bias- experience with the establishments offering mystery shopping services, you free. But if you are committed to putting they visit or interact with, which could can do it on your own, or mobilize people a system in place to regularly evaluate also be a phone call or a website visit,” you trust to do the job. First, identify the your personnel, and you want your staff says Michelle Patel, co-founder of customer journey, define the customer to trust the credibility of the mystery SatisFIND, a provider of customer touch points within that journey, and shopping program, you need to partner experience measurement services finally set a standard. Formulate a with a third-party company to conduct it which helps businesses improve how mystery shopping questionnaire based for you.”—Excel V. Dyquiangco they deal with customers. She says customer experience measurement gives business owners feedback on how well programs are executed or implemented at the branch-level. “It gives them that snapshot of how their customers really experience their brand when no one’s looking,” she says. Mystery shoppers are not researchers or auditors, Patel says, but they visit an establishment with the eyes and ears of a real customer because they are one. “They visit a particular establishment with a purpose to observe closely and report back their experience, both good and bad.” es G a

WhO nEEdS MySTERy ShOppERS? M Any business that deals with customers could use the services of a mystery shopper to get insights on how customers perceive their brand and their front-line staff. These include industries such as banks, car dealerships, russel tate / G ett Y i tate russel

By remote If budget is tight, you can always use technology to listen in on your front- line staff. Josiah Go of Mansmith and Fielders Inc. says business owners can pose as a customer for telephone or online inquiries. They can also monitor their staff’s in-store interaction with customers through CCTV. In cases when the interaction is by phone, a supervisor can set up the phone system so he could listen in during the actual conversation or a recording of the chat. The

business can also use SMS to get customer feedback, he adds. an D conrad lachica by illustrations

38 december 2015 -january 2016 Entrepreneur Philippines Under ATTACK No startup is too small for cybercriminals

written by Bernadette reyes illustrations by arnoland by illustrations

www.entrepreneur.com.ph/themagazine december 2015 -january 2016 39 on’t think that, because your business processes, neither can it afford to be codes and removes them before harmful is small, you’re off the radar of exposed to danger. This is especially programs are embedded in your D cyber criminals. important for SMBs,” Bansal says. computer. Anti-spyware, meanwhile, As a small- or medium-sized Entrepreneurs should keep an eye out prevents attackers from spying on your enterprise, you may even be an easier for abnormal activities such as attempts activities while you’re on your computer. target because you might not have the to edit files, an unusual number of log Spyware is usually installed on a budget to protect your business from files, and access to critical data and computer without the users’ knowledge— cyber attacks. Cyber criminals will information outside of business hours. that’s why you should have tools to often go over thousands of IP addresses, combat it. (Note that there are Trojan then zero in on the low-hanging fruit. >Buy pRotection spyware that masquerade as free anti- “They target vulnerable networks, Setting up a secure network doesn’t need spyware downloads.) systems, or computers. Usually, the least to be complicated or costly. Firewalls protect your system from secured networks are prone to these A network should at least have some attacks that steal sensitive information, attacks. Many SMBs [small and medium basic form of protection, such as firewalls or worse, crash your network. However, businesses] have become victims of cyber and anti-malware tools, including a firewall is usually meant for a single attacks because they failed to use data antivirus software and anti-spyware. computer. For multiple computers, protection for customer information,” Antivirus software detects malicious hardware routers may be necessary. explains IT expert Art Samaniego Jr. A survey of IT managers by research firm Ponemon Institute commissioned by IT security provider Sophos showed that smaller firms apply less rigorous security for their networks than big companies. “Their average self-assessment score of security posture—which includes ability I saw a sI gn to mitigate risks, vulnerabilities, and Viruses and malwares come in various forms and means. attacks—was a six on a scale of 10,” says Watch out for these signs—if any of these look familiar, Sumit Bansal, director for Asean. “The your network may be under attack. survey also reported fewer than three full-time workers fully dedicated to IT security.” pop-up ads While many pop-up ads are harmless, some may compromise The survey also reports that many your system. Some spyware, adware, and scareware may disguise SMBs fail to provide the needed security themselves as pop-up ads. If you feel your account has been for their systems because of budget compromised, run an antivirus software or apply an anti-spyware. As constraints, and lack of personnel and in- a proactive measure, enable pop-up blocking options on your device. house expertise for their network. But network security should never phantom messages take a back seat because, as Samaniego Have you ever received an email from friends or colleagues, supposedly says, a cyber attack can have disastrous as a response to an email you didn’t send yourself? If so, chances are, results. “SMBs need to understand that your network was compromised by phantom messages. These types it would be a costly mistake not to secure of messages usually come with a link that, once clicked, infects your system and may even spread to other networks. Change your passwords their data,” he warns. “If it fails to keep right away and run your security software. Inform your colleagues client information private, the company’s and bosses that your account was hacked, so they themselves can take reputation would be in peril, and it would necessary precautions. affect would-be clients.” LImIted aCCess to Computer >Recognize the signs Ransomware is exactly what it sounds like: A message that asks your Cyber attacks are designed to stay business to pay a ransom in exchange for returned access to your system inside a network for as long as possible or to compromised data. Still, it may not be wise to pay the ransom. After to get more information from the target all, there is no guarantee you will regain access to your computer or file organization: They access passwords after the ransom has been paid. Instead, remove the threat by removing the compromised part of the system, then restore files from your backup. and other personal information, steal contracts and classified documents, wonky p rograms among others. Your computer, without warning, doesn’t work properly. So you try to That’s why detecting the first telltale restart your system, key in Ctrl+Alt+Del to reboot the system, check symptoms of an attack is important. your connection and your power supply, but suddenly, everything is “For a business to achieve optimum working just fine. But these may be signs that a virus has attacked your performance, it cannot be shackled network. Use a reputable anti-malware software to correct the error, or by complex and awkward security check your hardware for possible malfunctions.

40 december 2015 -january 2016 Entrepreneur Philippines checked it, it had malware that could steal data,” Samaniego warns. Something as easy as avoiding public computers to access your accounts can help keep passwords safe. Many employees also fall into the habit of leaving their computers turned on for convenience. No less than the U.S. Federal Bureau of Investigation says that “being ‘always on’ renders computers more susceptible” to attacks. By shutting down your computer, you effectively cut off your connection from an attacker. You may also lock your network to allow only trusted uses to connect to your network. This way, you also avoid wardriving, such as when attackers on mobile devices try to connect to random Wi-Fi networks while on the move. >Keep employees vigilant Cyber attackers have become wiser and more creative in infiltrating networks. “Many malware attacks and cybercrimes rely on psychological tricks to dupe users into activating malicious code, “For a business to achieve optimum for example, by opening an attachment in an email,” Bansal says. A seemingly performance, it cannot be shackled by harmless email can lead you to a virus complex and awkward security processes, or to a fake link that would collect your log-in credentials. “All emails should neither can it afford to be exposed to danger. also be treated with caution, as some viral emails may appear to come from This is especially important for SMBs.” colleagues or friends,” Samaniego adds. That’s why, aside from investing on a It’s not enough to have protection recipient of the data can decrypt it secure system, educating your employees installed, either; you need to update these in its readable form. Encryption will is necessary to improve your business’ tools along with your operating system secure your data while it’s transferred IT security. Says Samaniego, “You don’t periodically so they can continue to to other parties, effectively preventing need high-tech security tools to protect detect security threats, including the new theft. “It would be difficult for outside yourself from hackers. Sometimes it malicious codes floating in the web. parties to breach the encrypted data just takes common sense to secure your Bansal urges SMBs to use cloud-based and get sensitive personal and business system.” Establish a sound policy among IT security solutions “because they are information,” Samaniego says. employees, specifying which file types easy to install, configure, and manage, are safe to download from the Internet. and should provide automatic, real-time >get Rid of Bad haBits Also, you can restrict installation of protection from most threats.” Since Don’t forget to protect your IT hardware, downloaded software and browsing 90 percent of attacks come from online too. One way to do this, Samaniego compromised sites. sources, cloud-based security measures suggests, is to limit the number of people The education process should be automatically block access to malicious who can access it. In fact, it’s everyday constant to ensure that everyone in or infected websites. The cloud-based careless habits that usually expose your the company is up to date. To keep security solutions also intercept malicious networks to cyber attacks. abreast of new and emerging threats, files before they can infect the system. For example, the use of CDs and USB some companies sign up for alert Whatever security measures your sticks could easily facilitate transfer of services over email. “Alert services business has in place, it’s best if you virus and malware from one computer provide early warnings of new encrypt your business data all the time. to another. “Be careful when you use a threats, and allow administrators to Unauthorized third parties may still be thumb drive from unknown sources. One check whether their antivirus and able to access your data, but they won’t of my colleagues once found a thumb anti-spam protection is adequate,” be able to read it. Only an authorized drive inside the cafeteria, and when we Bansal says. e

www.entrepreneur.com.ph/themagazine december 2015 -january 2016 41

BITS | TECH

Online hiring declining online hiring in the philippines fell 16 percent as of September this year against the previous year, according to the Monster employment Index, a monthly gauge of online job hiring activity around Southeast asia. Hiring in the production, manufacturing, automotive, and ancillary sectors posted the sharpest decline, falling 56 percent during the period. on the other hand, the It and telecom sectors posted the highest growth at 16 percent. online hiring activity in banks and financial institutes, meanwhile, grew 10 percent, reflecting the demand for finance and accounting professionals. , PhiliPPines crowned ‘‘most social’’ country S S Once known as the world’s text messaging capital, the Philippines now has a new title: It’s been dubbed the “most social nation” thanks to factors like higher smartphone adoption and easier access to Internet, according to gett Y IM age Opera’s State of the Mobile Web Report, which was based on aggregated / information gleaned from Opera Mini servers. The report’s findings show that, among 50 Opera Mini user countries, the Philippines’ mobile Internet users have a tendency to visit social networking sites over others: In fact, 86 percent of page views from Opera Mini mobile browser users in the Philippines are to social networking sites. Facebook tops that list, while Twitter, Tumblr, Flirchi, and Pinterest are also other social media counted gett Y IM age lee woodgate/ by illustration among the top 20 most visited sites. Y peter dazele by photo

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45 MAHAL NAMING MGA KABABAYAN... Expert advice for overseas workers about investments, money, and coming home

54 #TRENDING Consumer and business trends that will shape the world in 2016

64 ART OF REINVENTION three entrepreneurs build growing businesses for their second act Jonathan baldonado Jonathan BY PHOTO

44 december 2015 -january 2016 Entrepreneur Philippines OFW SPECIAL

b y Mari-a n C. SantoS illustrations b y fabo

www.entrepreneur.com.ph/themagazine december 2015 -january 2016 45 OFW SPECIAL

TRACK THE MONEY Take control of your finances so that money will always be there when you need it.

by Francis Kong, as told to mari-an c. santos

Having been invited to different cities in Europe and the Middle East, I would say that I have spoken to a total of 10,000 Filipinos working overseas. Filipinos are extremely hardworking and family-oriented, so much so that they are willing to sacrifice in order to provide for their family. However, we also trust too much. When OFWs send money to their relatives and loved ones here, they assume that their money is being managed well.

The following scenarios are only too familiar:

• The family is overdependent on the OFW. This has also given rise to a generation in the Philippines that is unwilling to work.

• Without proper money management training, OFWs use their hard-earned money in order to buy happiness to deal with their loneliness.

• OFWs work hard, splurge, then go back to work and try to earn money again.

OFWs and their families need to develop an entrepreneurial mindset. An entrepreneur understands that before you get a profit, you need to invest in hard work to earn the money that you are asking for.

Ask your family members to come up with a plan. Ask them the following questions:

• Where are you going to use the money that you are asking for?

• What are the fixed expenses? This can be rent and food. By tracking everything, you will know where the money goes in terms of needs. Do not allow them to use the money for wants.

• If they ask for additional money, they have to earn it. Tell them that the money that you will

46 december 2015 -january 2016 Entrepreneur Philippines send them is to prepare them to start a livelihood for themselves so that they will become self-sufficient. If you are sending someone to school, you also need to track GET OUT OF DEBT school records. If they don’t deliver, the funds should stop. Sometimes, we need to Debt happens. What’s important do this. Tell them: If you are irresponsible, why should I fund your irresponsibility? It is what you do to get out of it. may take one semester or one year, however by r andell Tiongson, as told to m ari-an c. santos long it takes for that person to become mature enough. And then, you continue your financing. Over the years, I’ve spoken to Filipinos Due to the low cost of communication these working in the Middle East and Asia. I’ve days, you can afford to ask for weekly updates heard many stories of their hardships and in order to track your family’s expenses. challenges. Unfortunately, Filipinos are very OFWs also have to contend with challenges trusting and are in dire need of financial relating to health and aging, and the volatility literacy. Debt comes from not saving enough, of the world economy. So you have to take not preparing enough, and having no exit plan. extra care in tracking every expense. You Our perception of money and how we deal with it is a behavioral need to set aside money for yourself, apart problem. You don’t go into debt overnight. That’s why we have to from the money you send home. You need to change our behavior. save for emergencies. Debt is an issue that is first about behavior and secondly about At any given time, you should have at least knowledge. Before buying anything on credit, consider the following: the equivalent of three months of your salary. First is purpose—is your prospective purchase a need or a want? If You should be liquid; work out something that it’s not a need, consider postponing and saving up for it. Second, how gives you funds at the moment you need it. much does it cost? Consider buying in cash rather than credit if it ends Filipinos are grossly underinsured. We do up cheaper that way. And third, look at the interest rate on your loans. not think far enough into the future. There The best way to deal with a credit problem is by not getting into debt in the first place. Avoid borrowing altogether. If you really need to use are insurance companies now with very credit, make sure it’s “good credit”—a home loan or business loan. attractive packages to help prepare OFWs Shy away from consumer-type loans. for retirement. Some even have flexible Don’t despair if you are buried in debt. Do something about it. First, investment plans incorporated into it, so it do a debt inventory. Make a list of all your debts. On a piece of paper forces you to save. or spreadsheet document, write the following: name of the creditor, Another folly is immediately shelling out amount due, when the loan was taken out, interest date, due date, money to buy a house despite the fact that you etc. Also indicate: current, past due, and under legal action, if any. still do not have enough savings. Remember, When you start to pay debt, it’s like going to war, but do you have you can buy a house anytime you want, but the ammunition? The logical move that most financial counselors will don’t do it just because you think it will give advise is for you to pay the ones with the highest interest. It’s logical, right? But that doesn’t work because if you pay them all at the same you fulfillment. Owning a house where you time, you will inevitably get debt payment fatigue. will live is never an investment. If something My advice is that once you have identified all your debts, pay breaks or needs repair, you have to pay for the smallest ones first. When you see progress, then your behavior it. The very definition of investment is that changes along the way. You start believing that being debt-free is a it appreciates in value, you are able to sell it, legitimate reality. As you knock off one debt after another, you’ll see and enjoy the benefits. If you are able to buy a a positive effect in your cash flow as payments made for your earlier house, and then buy another and rent it out, it debts can be used to pay your other debts. becomes passive income, yes. But considering Some people will advise you to consolidate, to take out a personal the current real estate market, it’s not that loan and pay off the other debts with the amount. But that does not easy because there are many vacancies and work because it’s still debt. It’s artificial. Instead, talk to your creditor. Stay calm and be honest with whoever is trying to collect from you. units for rent-to-own. Owning a house can Let them know your real situation and that you are willing to settle come anytime if you are liquid. OFWs need your obligations. Negotiate for settlement amounts. to have someone teaching them, empowering The root of the problem are the head and the heart. It’s all just a them to come up with the right decision. matter of budgeting and basic money management. You should track and control the outlay of money.

Francis Kong is a business consultant and corporate trainer. Randell Tiongson is a life and personal finance (franciskong.com) coach. (randelltiongson.com)

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INvEsT EARLY, AND WIsELY Don’t wait: It’s always a good time to get started when

it comes to investments. by luis gerard limlingan

When investing in stocks and bonds, I Investment Gains: One of the primary benefits of investing in the stock would give the same advice to OFWs that market is the chance to grow your money. Over time, the stock market I would give to any other investor, with tends to rise in value, though the prices of individual stocks rise and fall some minor differences. The short answer daily. Investments in stable companies that are able to grow tend to make is, it’s always a good time to invest profits for investors. Likewise, investing in many different stocks will help (especially in stocks), and once you get build your wealth by leveraging growth in different sectors of the economy, started, you’ll never be content to sell. resulting in profit, even if some of your individual stocks lose value. The longer you hold stocks, the chances of loss are minimized. In WHAT DO YOU WANT? fact, after 10 years, if you had invested during what would seem like the Whenever I sit down with first-time investors, I ask worst possible time, then you would at the very least break even. More them three questions, which serve to help “know importantly, after 20 years on average, you should be making thyself” in terms of expectations. It helps me gauge 7 to 8 percent a year on a compounded basis. what their investment personality is, and helps them align their objectives with more realistic expectations. Liquidity: Liquidity is the ease by which something can be traded or converted into cash. With stocks, there is a regulated market for people First: What is your investment objective? Are you to buy or sell shares during trading hours. If you are satisfied with the looking to maximize return, preserve capital, or rely price at which you are going to buy or sell your shares, then you can have on passive income? This is important because stocks this done automatically. (This isn’t the case for other assets. Selling a or companies depending on the nature of their painting, for example, won’t be as easy. You’ll need to find a buyer and business, behave differently, so too the manner by likely haggle over the price before reaching a deal.) which they reward shareholders. Dividends: Some stocks provide income in the form of a dividend. Next: What is your risk tolerance? For example, While not all stocks offer dividends, those that do deliver annual payments this year has not been favorable to stocks, so it may to investors. These payments arrive even if the stock has lost value and take some time to weather out the storm. If you represent income on top of any profits that come from eventually selling are not willing to ride out the volatility, then it’s the stock. Dividend income can help fund a retirement or pay for other best to invest in companies that are less prone to investments as you grow your portfolio over time. speculation and the cyclicality of business shocks. Tax Savings: Real estate, businesses, and other valuables are taxed Last: What is the time horizon you 10 to 20 percent when sold. When you sell stocks, you will only be taxed need to work with? Are you looking 0.5 percent of the value at which you sold them. to make a small return after a year to pay for your children’s education, OFWs need to take note of fluctuations with regard to foreign or is this part of a long-term plan of exchange. For our hardworking relatives, this year has been much more accumulation leading favorable as the peso has depreciated with respect to other currencies. to retirement? In this regard, I believe they can be more aggressive in remitting funds and investing in stocks. In terms of forecasting, it’s best to observe the REWARD VS. RISK latest inflation reports because, generally, our central bank raises and Investing in stocks is lowers rates in order to fight risks from hyperinflation or deflation. often risky. But if you The most important advice I always give to newbies is just be patient. manage the risks, As Charlie Munger, Warren Buffet’s right-hand man, says: “Patience is an you can secure your underappreciated but critical component of investing success.” financial position and earn money. What exactly are the benefits of investing Luis Gerard Limlingan is the head of sales at Regina in stocks? Capital Development Corporation. (reginacapital.com)

48 december 2015 -january 2016 Entrepreneur Philippines forecasting, and budgeting; savings and investing; and financial analysis. We also ensure that OFWs have an entrepreneurial mindset. We also provide back-to-back training, where a migrant worker enrolled in any of the programs offered has the opportunity to nominate a family member in the Philippines to undergo the same training. At the same time, ASKI Philippines provides financial assistance to family members in the form of a loan, which they can use as startup capital for their business plans. The goal is to establish a common mindset between the OFWs and their relatives. We provide financial and non-financial assistance, such as trainings, coaching, and mentoring sessions, and we attend to the needs of the community. We have an in-house insurance arm, a mutual benefit association, and we also partnered with a commercial insurance firm to help our clients. The aim is to reach out to Filipino migrant workers to change their remittance behavior, to earn as much as they could and use their hard-earned money to put up a business in the Philippines. We give them a one-on- one business coaching aimed at helping OFWs create a business, and draw up marketing plans and strategies to ensure the venture’s sustainability and boost profits. Our students need to present their business plans before they finish the course. After passing the course, they will receive their certificates at the National University of Singapore—one of our staunch supporters who co-developed the modules for the training. This is done not just to train them, but to also educate them and help them realize their dreams for their families. GET YOUR FAMILY It’s also our mission to mentor them along with their family members on proper handling of their finances. We always tell the OFWs who underwent the training programs to keep on dreaming big dreams. We even run a microfinance facility for OFWs who want to go ON BOARD into business. Once an OFW decides to go back home, they If you want you and your family to become confident that the knowledge and skills on entrepreneurship and financial education they acquired have long-term financial security, will help them in providing a better life for their families. Since we started the program in 2010, there have you have to get them to share your been 37 OFWs who decided to go back home for good after working in Singapore. They have established their savings philosophy. businesses and continuously apply their learnings. Some of the Singapore-based OFWs who decided to by rolando VicToria, as told to m ari-an c. santos be reunited with their families include Bella Paz Ignacio from City, who established her own dress shop, and Jenalyn Espiritu from Tuguegarao City, who put up Cool Breeze Spa, which is now profitable. We all hope that, one day, somehow, our kababayans Many Filipinos have a “one-day millionaire” attitude— will go home for good, and together with their where they squander all their savings in a short period families, establish a business here. This social of time by spending it without thinking. Proper handling objective is one of those close to the heart of of finances is important. That’s why education and ASKI Global. Over the years, we have seen that training, as well as ensuring OFWs apply their learning, financing is not the only need of our fellow is crucial. Filipinos. That is the reason why we considered OFWs in our financial education and literacy ROLANDO VICTORIA is the executive program, because they are one of the pillars of director of Alalay sa Kaunlaran (ASKI) the economy. Philippines (aski.com.ph) and the Our financial education and literacy program guides OFWs on how chairperson of ASKI Global Ltd. He is to handle their finances. We teach them about financial planning, based in Cabanatuan City, Nueva Ecija.

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FIND THE RIGHT BUsINEss Franchising is a way to get into business with a little help from like-minded people.

by a rmand Bengco, as told to m ari-an c. santos

The financial objective of any business is not mere profitability. It is best said in Filipino: “Maging karapat-dapat pautangin, maging kaakit-akit bilhin.” There are two ways to get rich: (1) investing in the stock market and (2) getting into business. Getting into business makes a community, a country, and the world rich. There is more employment generated and more money circulated. When you decide to invest your hard-earned cash, you must choose well what kind of business you will invest in for the long term. Why do people go into business? It could be any or a combination of five reasons: Personal satisfaction is one reason—because you enjoy the challenge. It may also be because of family ties, and because you’re taking off from a legacy of a family business; or, similarly, because of social networks (you find a business that is based on the needs of people you know). People become entrepreneurs to be their own boss; they don’t simply want to be employed by somebody else. But, ultimately, people go into business for profitability: While this is not the sole motivation, it is important to make money. There is no right answer to the question “what is a good business to go into?” A business’ success does not depend on capital, but based on one of these reasons. Going into franchising also means going into business for yourself, but without having to do it by yourself. There are more than 800 companies now offering franchises. Before deciding to get a franchise, check the track record of the business. Look at the first and last franchisees, and some of those in between; interview as many as five franchisees so you know how the franchise is conducted and track its progress. Make sure there have been no complaints in the past. Whatever business you decide to go into, make sure it is something you’re interested in or holds your interest while you study it. Start small and grow your business. A good profit is 20 percent on a yearly basis, excluding capital, electricity, among other expenses. Come up with a business plan. To do so, answer the following questions: What are you going to do? How will you do it? When will you do it? What are you expecting from what you will do? Cash flow is important to business. You should somehow have a mastery of the business, including its risks. It is also very important to have everything properly

50 december 2015 -january 2016 Entrepreneur Philippines documented: sales, financials, transactions, what REMINDERS FOR worked, and what didn’t work. THE NEW FRANCHISEE A business works not just because of the brand or a business plan, but because of the person running it. An entrepreneur must be decisive, disciplined, and 01 PAY YOURSELF A SALARY. Do not mix determined. One person can have the same franchise business and personal finance. as another, but fail while the other person succeeds. Again, it does not depend on the kind of business or 02 MAKE IT YOUR GOAL TO MAKE BUSINESS amount of capital. Business success depends more THRIVE. Save for it and grow your business. on the person—on you. Every business just starts with an idea. If it is an 03 UNDERSTAND THAT SALES IS DIFFERENT idea that you thought about, cultivated, nurtured, FROM PROFIT. You have to consider and planned for, and it is a business you are the expenses. interested in or interested to learn, then you are ready to start your business. 04 LOOK AT FINDING HELP. There are many groups that you can consult for advice. ARMAND BENGCO 05 FIND A WAY TO START AND SUCCEED IN is the executive BUSINESS IN THE PHILIPPINES. After all, director of the Colayco Foundation, this is our country. and the general manager of the KsK SMP Cooperative. TAKE TAxEs INTO CONsIDERATION Arm yourself with a little knowledge, so tax expenses won’t become the downfall of your business. by aya laraya

If you are an OFW thinking of using much of that actually became income. Just because your hard-earned money to put up the business generated P120,000 does not mean a business, the most important you will receive P120,000 in income. For one thing, it will cost you money to run the business—salaries, advice I can give you is this: Do not inventory, government fees, among other expenses. overlook the BIR and the effect that And if you borrowed money from a bank or other taxes can have on the success of credit institutions, then there will be interest costs your venture. as well. Lastly, the BIR can be owed up to 32 percent Simply put, taxes can mean the difference in taxes before you can actually call anything yours. between a business failing or earning a sustainable Using the above example, you may be surprised to income in the long run. The sad fact is that many learn that, after expenses and taxes, the P120,000 businesses tend to omit taxes when they show how in “earnings” actually results in income of less than much a business can earn. P30,000 per month—assuming no loans were taken I recently attended an event wherein a completely out. Suddenly not as attractive, don’t you think? legitimate business was touted to have an earning In conclusion, before you actually put in any potential of over P30,000 a week—or over P100,000 money into a business, make sure you know how a month. Sounds attractive, right? much you can realistically expect to earn after all However, nowhere in the presentation was the matter the necessary fees and taxes have been paid. of operating expenses discussed, nor were business taxes and income taxes mentioned at all. Plus, the implicit assumption was that the entrepreneur wouldn’t AYA LARAYA is a personal finance have to borrow money at all to get the venture started. adviser and the writer behind So assuming that the business earned P120,000 the website Pesos and Sense over four weeks, the most important figure is how (pesosandsense.com).

www.entrepreneur.com.ph/themagazine december 2015 -january 2016 51 OFW SPECIAL

sTAY THE COURsE Know what you’re doing this for, and never forget it.

by loreTo soriano, as told to m ari-an c. santos

I worked in Riyadh for six years in the 1980s. I had finished a technical course and worked in the telecom industry before deciding to leave the Philippines to work in Saudi Arabia. My main reason was to build a better life for my young, growing family. This is also the reason why many of our countrymen choose to leave home to work overseas. This must be clear at the outset: when a Filipino decides to work overseas, he or she must have a strong reason and a clear vision. Then, you keep your focus fixed on the vision, despite distractions and trials that may come your way. Whether it’s for your wife and children, or parents and siblings, you need to determine for whom you are leaving. In addition, you need to have a tangible goal of improving your lives. For example, if your family is engaged and was able to make considerable money, and so, in farming, then you need to do what you can to raise the level of livelihood helped with our expenses. As I said, there needs to be and become better farmers; if they are involved in a business in their town a joint effort towards wealth creation. or barrio, then they should become better entrepreneurs and expand their That is why, when I came back, even if there was business. That way, when you’re overseas, you can cope more easily with less income, at least there was still some from the small the challenges of migration. business. In the case of many others, when they come Before leaving, talk to the members of your family about how there will be back, there is no other source of financial support improvement in the family and how each member can help if there is a joint and eventually, they resort to taking money from their initiative towards wealth creation. savings. That is very dangerous. Then, after a while, My wife and I spoke about this before I left to work abroad. We sat down not finding any employment at home, there’s confusion and discussed: among family members and the savings dwindle. Even when I was working abroad, I already knew • How much debt do we need to pay? What are the things that should that I wanted to put up my own business back home. I change while I am away? These are the priorities that must be settled. thought: If I could do something here in the Philippines, Then, of course, our dream house. Buying a house is an accomplishment where my family was, I would try to do it. for us. Or maybe having the house repaired or renovated. By raising them in an environment of entrepreneurship, my children got used to helping • What are the things that should happen for the kids or the siblings so that in the business. It came naturally to them. So when their lives also improve? For example, finishing school. With children, you I put up my own recruitment firm, they would spend need to provide motivation and incentive with regards to studies. In the summers helping in the office, typing up resumés. They case of our children, it was based on grades and achievements. Even also got rewarded for their efforts. when my eldest was in his school’s varsity basketball team, I would give Our journey as an overseas family has been him incentives when he scored during tournaments. You need to provide blessed. In 2013, we were awarded OWWA Model them a mission and find achievable ways to accomplish that mission. OFW Family of the Year. All of our children were involved in the business at some point. Now, my • What are the things that can wait? These are things you can talk about eldest son is our vice president and our youngest later on. You can make a list of these things, and the list might change and son, the head of the IT department. After running my get longer over time. You need to keep lines of communication open to recruitment company for 28 years, I now have time to complete and update this list. work more actively in furthering OFW welfare. I work with NGOs and we have formed a coalition of OFW It is important to write all of these things down. The biggest problem would advocates assisting workers in distress. I also do be proceeding without a clear plan. research on various issues that confront our OFWs. E Aside from a plan for the allocation of your earnings, you also need a plan for your transition when you decide to come back to the Philippines. While I was abroad, I encouraged my wife to put up a small business, a food stall LORETO SORIANO is the president of outside our house that was near a high school in Pangasinan. It slowly grew LBS Recruitment Solutions Corp.

52 december 2015 -january 2016 Entrepreneur Philippines DigitalLab1half_Entrep1215.indd 1 11/3/15 5:03 PM FEATURE

54 december 2015 -january 2016 Entrepreneur Philippines #TRENDING CoN sumER aND busINEs s TRENDs T haT wI ll shapE T h E woR l D IN 2016

c o m p i l e d b y Toni AnTipordA, w i t h a d d i t i o n a l i n p u t f r o m MAricris cArlos illustrations b y JAMes John Andres

erhaps there’s nothing more digitally native settling down and are fast becoming happy than a hashtag. Formerly known as the parents to Generation Z children. They are still pound key during the golden age of analog their fun-loving, digital-native selves, mind phones, the hashtag is now the symbol of you, but they are now using their online savvy unified thoughts and experiences in the to become better homemakers and parents. digitalp realm. But it serves to reflect what’s Who knew? happening in the real world —in the physical and Southeast Asia is also set to have an the traditional. And as digital trends go, they only e-commerce boom, but its traditional trade serve to remind us of our basic humanity. channels, like our very own sari-sari stores, Which is why it’s interesting to look at the will also continue to thrive and eat up market trends coming our way this new year. share for the sale of fast-moving consumer Omni-channel, that new tech buzzword after goods. Digital innovations will continue to mobile, big data, and cloud, serves to remind change the way people travel and approach businesses that even while the world is on the their health, and will also prompt more cusp of massive digital transformation, consumers consumers to demand natural and sustainable still yearn for physical interactions with products products and services. Digital transformation and people. might be nigh, but it is still shaped by very Millennials, today’s current generation, whom human traditions and values, as the following experts said will never settle down, are actually trends will show.

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SPOTLIGHT ON THE PHILIPPINES Consumer confidence in the Philippines will remain bullish Filipinos remain confident yet cautious consumers coming into 2016, says the results of the latest Global Survey of Consumer Confidence and Spending of consumer insights firm ThE RIsE oF ThE mIllENNIal moms Nielsen. With a Consumer Confidence Index score of These “chief household officers” 117, up two points year-on- year, Filipino consumers are sTill fun-loving digi Tal naTives remain optimistic amid the recessionary sentiments of its Asean neighbors Millennials—those born between 1981 and 1996—remain a formidable (Malaysia, for one, has a market segment. In the Philippines alone, there are 35 million millennials, more than a third of the country’s entire population. And these millennials score of 78, considered are growing up and becoming parents to Generation Z children. “pessimistic” against the baseline of 100). “The MillenniAl MoMs rUle... country’s robust economy Most millennial moms in Asia see themselves as the “chief household continues to keep the officer,” as 83 percent consider themselves the primary decision-makers in consumers’ confidence in their households, reveals the latest Asian Digital Mom survey of parenting the Philippines bullish,” resource portal TheAsianParent.com. They often control household product says Stuart Jamieson, choices, domestic arrangements, and even life-changing family decisions, managing director of which is why Pauline Fermin, marketing director of brand consultancy Nielsen in the Philippines. group Acumen, urged marketers and brand managers present at the recently Still, job security, work- concluded Brand Bootcamp to “get to the skin and soul” of these millennial moms to gain brand loyalty. life balance, and health remain to be key concerns …And so do dAds of Filipino consumers, with There’s a reason why #TeamKramer, the official social media handle of financial security given Cheska and Doug Kramer’s family, works. Fermin of the Acumen group says top priority—67 percent it’s because millennial moms believe in “parenteam,” a parenting style where of Filipino consumers husband and wife work together as a team, and “parentwining,” where the put their spare cash into millennial parents’ life is tightly-knit with their children’s—they cook, sleep, and savings, while 30 percent even go shopping together. make it a point to invest in stocks and mutual funds. she’s A diGiTAl nATiVe But Filipino consumers Millennial moms in the Philippines thrive online, with 63 percent spending one to six hours on the Internet daily for work and social engagement, still know how to reward according to data from the latest Asian Digital Mom survey of parenting themselves, as shopping resource portal TheAsianParent.com. Surfing the Internet has become the for new clothes (30 percent) new “me time,” with 49 percent being more active online past seven p.m. And and splurging on travel she makes up for the lack of face time with lots of screen time—77 percent (26 percent) remain admit to interacting with friends mostly online through various communities a priority for their and social platforms, while only 12 percent admit to having the luxury of discretionary purchases. bonding with them face-to-face.

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SPOTLIGHT GO FOR SUSTAINABLE hoY, suKI! ON THE Heightened environmental and social awareness influence Filipinos’ sari-sari sTores as an ally in PHILIPPINES purchasing decisions The baTTle for markeT share Consumer confidence Filipinos are fast becoming one of the most socially conscious consumers in the Philippines will in the world, recent data from consumer insights firm Nielsen show. In its latest Global Survey of Corporate Social Responsibility and Don’t underestimate the power of remain bullish Sustainability, Nielsen reveals that 8 in 10 Filipino consumers the humble corner store in the battle Filipinos remain confident (83 percent) say they are willing to pay extra for products and services for market share, says consumer which come from companies that have a commitment to “positive social insights firm Nielsen. In its report yet cautious consumers and environmental impact.” Stuart Jamieson, managing director of called Maximizing Traditions: The coming into 2016, says the Nielsen in the Philippines, says that Filipino consumers are becoming Shop. Shopper. Shopkeeper, Nielsen results of the latest Global more aware of environmental and societal issues, and this awareness argues that this ubiquitous trade Survey of Consumer influences their purchase decisions. “Sustainability is now a worldwide channel can boost sales by putting Confidence and Spending concern,” Jamieson adds. fast-moving consumer goods in front of consumer insights firm ThE RIsE oF ThE mIllENNIal moms More Filipino consumers are now checking labels, doing background of more consumers. In 2014, almost Nielsen. With a Consumer checks on businesses and their manufacturing practices, and paying half, or 47.9 percent, of all retail sales Confidence Index score of These “chief household officers” attention to public opinion about certain brands, especially on social in Asia and India were made through 117, up two points year-on- media, Jamieson observes. “They are doing their homework,” he adds. these traditional trade channels, as year, Filipino consumers are sTill fun-loving digi Tal naTives And, of course, doing good always pays off—according to the report, sales opposed to only 17.2 percent made remain optimistic amid the of consumer goods from brands that have shown a strong commitment through supermarkets. In Southeast to sustainability grew by more than 4 percent in the past year. Needless Asia, there are more than five million recessionary sentiments Millennials—those born between 1981 and 1996—remain a formidable to say, brands that overlook sustainability efforts risk hurting not just of these small stores that Filipinos of its Asean neighbors their reputation but also their bottom-line. “Ignoring the sustainability fondly call sari-sari stores. In 2000, (Malaysia, for one, has a market segment. In the Philippines alone, there are 35 million millennials, more than a third of the country’s entire population. And these millennials imperative makes [brands] vulnerable to competitors of all sizes, who Nielsen estimated that there were score of 78, considered are growing up and becoming parents to Generation Z children. will seize the opportunity to build trust with the predominantly young, around 430,000 sari-sari stores in the “pessimistic” against the socially conscious consumers who are looking for products that align Philippines alone. Now, that number baseline of 100). “The MillenniAl MoMs rUle... with their values,” Jamieson explains. has ballooned to around 800,000. country’s robust economy Most millennial moms in Asia see themselves as the “chief household The report adds that sales made continues to keep the officer,” as 83 percent consider themselves the primary decision-makers in at these corner stores are mostly for consumers’ confidence in their households, reveals the latest Asian Digital Mom survey of parenting small, immediate needs: 39 percent of the Philippines bullish,” resource portal TheAsianParent.com. They often control household product the purchases were for immediate use says Stuart Jamieson, choices, domestic arrangements, and even life-changing family decisions, and consumption, such as powdered coffee, carbonated drinks, laundry managing director of which is why Pauline Fermin, marketing director of brand consultancy group Acumen, urged marketers and brand managers present at the recently detergent, and shampoo. The key Nielsen in the Philippines. SURvEy SAyS... to maximizing sales through this Still, job security, work- concluded Brand Bootcamp to “get to the skin and soul” of these millennial moms to gain brand loyalty. trade channel, Nielsen argues, is to life balance, and health 60 pERcENT oF FilipiN o coNSUmERS SAy T hAT “ENviRoNmENTAlly FRiENdly” leverage on the relationships between remain to be key concerns …And so do dAds pAckAGiNG hEAvily iNFlUENcES ThEiR pURchASE dEciSioNS the shopkeeper and the shopper, and of Filipino consumers, with There’s a reason why #TeamKramer, the official social media handle of to come up with packaging formats financial security given Cheska and Doug Kramer’s family, works. Fermin of the Acumen group says that can cater to smaller and more top priority—67 percent it’s because millennial moms believe in “parenteam,” a parenting style where immediate needs, such as single- of Filipino consumers husband and wife work together as a team, and “parentwining,” where the serve and single-use sachets. put their spare cash into millennial parents’ life is tightly-knit with their children’s—they cook, sleep, and 74 pERc ENT SAy T hAT pR odUcTS mAdE wiTh FRESh, NATURAl, oR oRGANic savings, while 30 percent even go shopping together. iNGREdiENTS AppEAl STRoNGly To T hEm, iN pART dUE To poTENTiAl hEAlTh make it a point to invest in ANd wEllNESS bENEFiTS stocks and mutual funds. she’s A diGiTAl nATiVe But Filipino consumers Millennial moms in the Philippines thrive online, with 63 percent spending one to six hours on the Internet daily for work and social engagement, still know how to reward according to data from the latest Asian Digital Mom survey of parenting 83 pERcENT ARE williNG To pAy E xTRA FoR pR odUcTS ANd SERvicES which themselves, as shopping resource portal TheAsianParent.com. Surfing the Internet has become the comE FRom compANiES ThAT hAvE A commiTmENT To “poSiTivE SociAl ANd for new clothes (30 percent) new “me time,” with 49 percent being more active online past seven p.m. And ENviRoNmENTAl impAcT” and splurging on travel she makes up for the lack of face time with lots of screen time—77 percent (26 percent) remain admit to interacting with friends mostly online through various communities a priority for their and social platforms, while only 12 percent admit to having the luxury of discretionary purchases. bonding with them face-to-face. (SoURcE: NiElSEN GlobAl SURvEy oF coRpoRATE SociAl RESpoNSibiliTy ANd SUSTAiNAbiliTy, 2015)

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ASIA-PACIFIC AND pREmIum oN “THE ASEAN ELEPHANT” pREmIumIZaTIoN Doing business on this side of the world Southeast Asia’s growing middle class The Association of Southeast Asian Nations (Asean) is is trading up to premium brands, notes reaching an anticipated milestone come 2016 through consumer insights firm Nielsen, in part thanks to improved spending power economic integration, with the creation of the Asean and increased demand for quality and Economic Community (AEC). Made up of 10 Asian differentiation. Demand for premium nations—namely Brunei, Cambodia, Indonesia, Laos, items, especially in the fast-moving Malaysia, Myanmar, the Philippines, Singapore, Thailand, consumer goods (FCMG) category, is and Vietnam—the AEC is poised to be a young and growing despite being priced at least dynamic consumer market, posits consumer insights firm 20 percent higher than mainstream Euromonitor International, what with its over 622 million products—Nielsen identified a consumers, its growing middle class with dispensable 21 percent increase in the share incomes, and its total consumer expenditure of $1.5 of premium-priced goods sold in trillion as of 2014 alone. No wonder it’s called “the Asean Southeast Asia, thereby taking up Elephant”—by 2030, the Asean bloc is eyed to become the 16 percent of total grocery sales in the region. Further, around 43 percent of third largest economy in the world, behind only the United Asian consumers say that they will pay States and China. more for a product that exhibits high quality and safety, superior technology, and boosts their social status and sense of self-reward.

E-CommERCE hoTspoTs Southeast Asia is seen as the new prime spot for e-commerce, according to consumer insights firm Euromonitor International. The region has a young population (half of which are below 28 years old), an expanding middle class, increasing Internet connectivity, rising smartphone penetration, and improving online payment options, all of which are favorable for the growth of e-commerce, explains An Hodgson, income and expenditure research manager at Euromonitor International. Categories that will have the strongest growth in e-commerce from 2016 to 2019, according to recent data from Euromonitor International:

INDoNESIA Apparel and footwear, with 138 percent growth

THAILAND Beauty and personal care, with 82.5 percent growth

PHILIPPINES Consumer healthcare, with 39.4 percent growth

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ASIA-PACIFIC AND pREmIum oN DIGITal “THE ASEAN ELEPHANT” pREmIumIZaTIoN CoNsumERIsm Doing business on this side of the world Southeast Asia’s growing middle class The Association of Southeast Asian Nations (Asean) is is trading up to premium brands, notes reaching an anticipated milestone come 2016 through consumer insights firm Nielsen, in part IN asIa thanks to improved spending power economic integration, with the creation of the Asean and increased demand for quality and Economic Community (AEC). Made up of 10 Asian differentiation. Demand for premium TrendWaTching.com says nations—namely Brunei, Cambodia, Indonesia, Laos, items, especially in the fast-moving Malaysia, Myanmar, the Philippines, Singapore, Thailand, consumer goods (FCMG) category, is and Vietnam—the AEC is poised to be a young and growing despite being priced at least digiTal consumPTion habiTs dynamic consumer market, posits consumer insights firm 20 percent higher than mainstream Euromonitor International, what with its over 622 million products—Nielsen identified a in asia are evolving consumers, its growing middle class with dispensable 21 percent increase in the share incomes, and its total consumer expenditure of $1.5 of premium-priced goods sold in trillion as of 2014 alone. No wonder it’s called “the Asean Southeast Asia, thereby taking up MessAGinG Apps As Elephant”—by 2030, the Asean bloc is eyed to become the 16 percent of total grocery sales in the region. Further, around 43 percent of The new “liFesTyle third largest economy in the world, behind only the United Asian consumers say that they will pay reMoTe conTrols.” States and China. more for a product that exhibits high Users can now shop, pay quality and safety, superior technology, bills, and avail of government ThE K-INVasIoN CoNTINuEs and boosts their social status and sense services via messaging of self-reward. apps. WeChat and LINE, for Filipinos are no strangers to K-Dramas and K-Pop, not to mention the example, already have a strong infectious dance craze that was “Gangnam Style” courtesy of South Korean ecosystem that brands like pop star Psy back in 2012. But it seems like the Korean wave is far from over Burberry are leveraging on to as it’s influencing consumption patterns in and beyond Asean. reach their target consumers. Food & drink E-CommERCE hoTspoTs diGiTAl direcTories South Korean food chains are spreading all over the world, and no, they’re Remember the Yellow not even serving South Korean food fare. Food concepts such as pizza chain Southeast Asia is seen as the new Pages? Well, the concept has Mr. Pizza, and coffee and pastry shops Caffe´ Bene and Schneeballen, all prime spot for e-commerce, according evolved as digital directories of which have found their way to the Philippines via master franchise to consumer insights firm Euromonitor help consumers navigate agreements, are all brands from that have European flair. International. The region has a young the “consumption-sphere” Who knew, right? And more of these South Korean food concepts are population (half of which are below online. These can range from expected to come to the Philippines next year, notes Sam Christopher 28 years old), an expanding middle aggregators of retailers on Lim, assistant vice president for marketing and strategy at franchise class, increasing Internet connectivity, Instagram, to trackers of consultancy Francorp Philippines. “More [South Korean] food operators rising smartphone penetration, and available parking spaces and are now looking at setting up shop here after seeing how well food concepts improving online payment options, all nearby comfort rooms in key like Caffe´ Bene, for example, is being received by Filipino consumers,” he of which are favorable for the growth Asian cities. adds. of e-commerce, explains An Hodgson, income and expenditure research Tech For The MAsses BeAUTy & lUxUry manager at Euromonitor International. Digital technologies now help South Korean dramas and pop idols are not only influencing the viewing Categories that will have the improve the quality of life for habits of its ardent followers, but their sensibilities have also seeped into strongest growth in e-commerce from Asian consumers at the so- beauty and luxury consumer trends, says Nicole Tyrimou, global beauty 2016 to 2019, according to recent data called “bottom of the pyramid.” analyst at consumer insights firm Euromonitor International. “The from Euromonitor International: SariLoad and SariScan, for influence of Korean dramas and Korean pop has been unprecedented, example, provide enterprise- not just in the beauty industry, but also for luxury, apparel, consumer INDoNESIA Apparel and footwear, with grade loading and inventory electronics, and consumer food services, with items featured in music 138 percent growth management solutions to videos and TV dramas in high demand among consumers,” Tyrimou sari-sari store owners in the adds. Even international cosmetics giant L’Oréal has been swept up in THAILAND Beauty and personal care, Philippines, while the mFish the Korean wave, introducing K-Beauty inspired products such as BB with 82.5 percent growth mobile app helps fishermen in creams with Garnier, and air-cushion foundations with Lancôme. In the Indonesia look for good spots to Philippines, homegrown cosmetics brand Happy Skin takes some branding PHILIPPINES Consumer healthcare, fish in, with the aid of satellite and packaging cues from the K-Beauty phenomenon, with some of its with 39.4 percent growth technology. packaging and ingredients even originating from South Korea.

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Digital transformation will now be at the center of growth and THE profitability strategies of businesses worldwide beyond 2016, says data insights firm International Data Corporation (IDC). This GLOBAL will drive more than half of the IT expenditure of enterprises for the next 24 months, and will rise to 60 percent by 2020. “Digital STAGE transformation should now be a priority for business owners, lest they be left behind,” says Jubert Daniel Alberto, country lead at Consumer trends from IDC Market Research Philippines Inc. The Internet of Things (IoT), which IDC predicts will span 22 billion devices by 2018, will drive all over the world the development of more than 200,000 apps and other digital solutions that have the potential to boost competitive advantage in industries like manufacturing and transportation. And we need not look far to see what digital transformation can do—it’s already changing the way we shop, travel, and manage our health.

or the past couple of years, talk be how to accommodate both the in- of big data, cloud computing, store and online purchases with the wElComE To F and mobile has dominated same level of efficiency,” Alberto adds. conversations about enterprise Stuart Jamieson, managing technology solutions. These director of information and ThE YEaR oF technologies are definitely here measurement company Nielsen to stay, and now tech industry Philippines, touts Zalora’s move. observers are urging entrepreneurs “It’s incredibly smart,” he says. omNI-ChaNNEl and executives to look at what “It comes back to, ‘is the offering these three trends have wrought, that you have compelling for and to look at them through consumers?’ Because if it is, then all bases covered as an omni-channel perspective. it’s going to work in a physical “Having omni-channel measures sense, as well as in a digital and strategies can really help sense.” Moving that very strong digiTal goes Physical businesses thrive in an ever- online presence into a physical growing digital consumer market,” presence, he says, “just extends says Jubert Daniel Alberto, country your brand for those people who lead at data insights firm IDC are not comfortable and confident Market Research Philippines Inc. yet in going online. You build that As the term suggests, “omni- relationship... A lot of those people channel” basically means being will transfer into the online world present in all possible channels. as well because you started to build “So, for example, if you’re a a relationship.” retailer, you should have an Another company that has e-commerce platform, a brick-and- leveraged on the omni-channel mortar store, and the necessary trend is NetSuite, a maker of infrastructure and strategies cloud-based business management to support the growth of both,” solutions, which introduced a explains Alberto. A great example solution that would make it easier would be the unprecedented move for retailers to serve customers, of e-commerce giant Amazon to whether shopping online or in build a brick-and-mortar bookstore brick-and-mortar stores. “We saw in the . In Asia, the omni-channel world coming,” fashion retailer Zalora, another said NetSuite president Zach e-commerce native, has opened Nelson when he introduced the a series of pop-up stores in Hong solution during the company’s Kong and the Philippines. “The global user conference SuiteWorld challenge for retailers here would in San Jose, California last May.

60 december 2015 -january 2016 Entrepreneur Philippines He said the company saw the need for such a solution as businesses wE’RE GoING plaCEs realized the need to give a seamless experience to customers both online and offline. “We knew digiTaliZaTion is changing The Way We Travel. caroline we had to bring together not just the website touchpoint, but any bremner of euromoniTor inTernaTional Tells us hoW. touchpoint, in particular, in-store touch point,” he said. Dubbed SuiteCommerce InStore, oFF The iT’s personAl The power the solution will allow a retailer’s BeATen pATh Travel companies oF The crowd sales associates to deliver a more Thanks to multiple will now be able to Luxury hotels are personalized shopping experience online platforms suggest activities now turning to with a comprehensive view of the and mobile apps, for travellers at crowdsourcing and customer history, and the ability digitalisation is any location in crowdfunding to to order products from a tablet or driving travel to more real time thanks finance the opening mobile device if it’s not available secondary cities to big data and of new boutique in the store. The solution unifies all over the world. mobile technology. properties. Would- all customer information into a In Europe, visitors Suggestions will be be hoteliers, such as single customer profile. This means are even advised personalized, using Amberlair and the that any employee, whether a store to go on “hipster data and preferences Prodigy Network in associate or a customer service holidays” to explore mined from a the United States, representative in a call center, can alternative districts consumer’s social are now tapping have an immediate understanding that are popular media accounts, and social media to of any customer, in real time, with, well, local cross-checked with find potential regardless of the channel, which hipsters and avoid the online directories of collaborators facilitates better service, more sales, “mainstream crush” local travel services and investors, and improved customer loyalty. with the help of and activities. Google with contributors “This is the holy grail of in-store Twitter and Facebook. Now, for one, aims receiving benefits and online. Talk about a unified In the Philippines, on to give information or free stays in the experience. It is by definition a the other hand, a new before consumers hotel as rewards. unified experience,” Nelson said breed of digital travel even ask, using past In the Philippines, during the May conference. agencies like FlipTrip behavior as reference you can have a Admittedly, says Jan Pabellon, seeks to promote and geo-localisation piece of Novotel principal product manager for lesser-known to keep suggestions Suites Manila by Asia Pacific at NetSuite, omni- destinations. locally relevant. Century Properties channel is still in its infancy in by way of “fractional the Philippines. But eventually, ownership.” he says companies will need to adopt omni-channel strategies and solutions in order to serve customers. “It’s all about winning the trust and loyalty of the customer, providing superior customer experience whatever channel is involved.” “The challenge for many companies is they’re not prepared, they don’t have the tools for it, they don’t have the strategy for it, and the changes that are happening are so fast that even if they wanted to, it could be very difficult for them, or be very expensive, sometimes,” he says. “If you’re a company and you’re not prepared, you’re not going to be able to offer a good customer experience.”

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cold Brew coFFee flavoured with bitter, sour, or LET’S What started out as a means to spicy ingredients such as , sell more coffee during warm ginger, herbs, or citrus fruits. DRINK seasons has led to innovations that can yield stronger, better sophisTicATed JUice TO ThAT tasting, and smoother iced coffee An extension of the cold-pressed that doesn’t need to be mixed juice movement, its appeal rests Elizabeth Friend, into indulgent blended drinks. on presentation and preparation, foodservice analyst often incorporating vegetables at consumer insights “AdUlT” sodAs and herbs to offer “functional” Mixology has turned cocktails drinks that are both healthful firm Euromonitor into an experience rather than and high value—offerings like International, lists just a drink, and also brought non-traditional lemonades, for three upcoming trends about the advent of “adult” example, will be flavoured with sodas—sparkling beverages with cucumber, lavender, or any other in craft beverages. sophisticated flavor profiles, often seasonal fruit.

wellness promotes self-monitoring analyst at consumer insights and self-medication with the firm Euromonitor International. TaKING YouR aid of mobile apps and online “The consumer health industry services, some of which are even is entering a new era where an approved and backed by doctors empowered consumer will benefit sElFIE oF hEalTh and other health professionals. As from the virtual accessibility of his early as April 2014, the European electronic health records (EHRs),” Commission’s Green Paper on adds Feldman. Pioneers in eHealth marrying consumer healTh Mobile Health has predicted that and mHealth such as Microsoft’s mHealth revenue worldwide will Health Vault and Apple’s HealthKit and digiTal Technologies reach $23 billion by 2017. Also, have been aiding not just its users free-of-charge health, sports, and but also the consumer health fitness apps have already reached industry as a whole by promoting for a beTTer you 231 million downloads as early as digital connectivity for research, 2013, with an estimated 68,000 product development, and available health-related apps consumer engagement, Feldman Thanks to digital technologies such targeted directly at consumers. further explains. “Consumers as medical devices, applications, And the trend will continue are recording and uploading wearables, smartphones, and to strengthen next year as more their personal health records tablets, more consumers are taking cloud-based technologies are in digital spaces, and these will full ownership of their health expected to emerge in response eventually merge with their EHRs, and wellness. Dubbed electronic to the digitization of patient which will create an amazing health (eHealth) and mobile health health records worldwide, says and comprehensive view of their (mHealth), this trend in health and Monica Feldman, consumer health individualized health.”

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FroM FArM To FAce wAsTe noT “Natural” trends that first emerged As the global population is eyed ThE NEw FaCE to reach 9.6 billion by 2050, food in food and drink are now finding its way to other categories. Case in production remains a growing point: the farm-to-face beauty trend, concern, which is why brands and oF CoNsCIous an offshoot of the farm-to-table food consumers alike have taken to movement, with the same emphasis combating food waste. As early on localism, provenance, and as 2014, French supermarket CoNsumERIsm responsible sourcing. Commonplace Intermarche has been selling beauty products like makeup, nail imperfect-looking fruits and polish, perfume, and even tampons vegetables at 30 percent below the iT’s noT enough To go are now under scrutiny from a more standard retail price through its discerning—and demanding—female Inglorious Fruits and Vegetables flavoured with bitter, sour, or cold Brew coFFee consumer base. Startup cosmetics campaign. Swedish-Filipino startup What started out as a means to spicy ingredients such as vinegar, LET’S “naTural,” says daTa insighTs brand NatureLab understand FoPo, on the other hand, has taken sell more coffee during warm ginger, herbs, or citrus fruits. this demand for information and to turning overripe fruit into dry seasons has led to innovations DRINK transparency about the ingredients powder to prolong its shelf life. Chefs that can yield stronger, better sophisTicATed JUice firm JWT inTelligence and processes that go into making and restaurateurs in the United tasting, and smoother iced coffee An extension of the cold-pressed TO ThAT their beauty products, and don’t shy States and Europe have also taken to that doesn’t need to be mixed juice movement, its appeal rests away from the scientific and even serving limited edition “scrap-based Elizabeth Friend, into indulgent blended drinks. on presentation and preparation, technical lingo in their packaging meals” to diners. And there’s growing often incorporating vegetables foodservice analyst and brand messaging. “Natural” support for this practice—according “AdUlT” sodAs and herbs to offer “functional” at consumer insights products will no longer be niche, to a survey conducted by data insights Mixology has turned cocktails drinks that are both healthful but are expected to become the new firm JWT Intelligence, 70 percent of firm Euromonitor into an experience rather than and high value—offerings like normal come 2016, and brands in this millennials from the United States just a drink, and also brought non-traditional lemonades, for International, lists category are advised to scale up in and the are willing about the advent of “adult” example, will be flavoured with three upcoming trends order to reach a wider mass market, to pay more for products that reuse sodas—sparkling beverages with cucumber, lavender, or any other adds JWT Intelligence. and recycle materials. E in craft beverages. sophisticated flavor profiles, often seasonal fruit.

wellness promotes self-monitoring analyst at consumer insights and self-medication with the firm Euromonitor International. mobilE hEAlTh by ThE NUmbERS TaKING YouR aid of mobile apps and online “The consumer health industry services, some of which are even is entering a new era where an 63.2 million units 108 million units approved and backed by doctors empowered consumer will benefit NUmbER oF pASSivE wEARAblES Sold woRldwidE sElFIE oF hEalTh and other health professionals. As from the virtual accessibility of his early as April 2014, the European electronic health records (EHRs),” iN 2015, ANd by 2020 Commission’s Green Paper on adds Feldman. Pioneers in eHealth marrying consumer healTh Mobile Health has predicted that and mHealth such as Microsoft’s 1.25 billion units 1.64 billion units mHealth revenue worldwide will Health Vault and Apple’s HealthKit NUmbER oF SmARTphoNES Sold woRldwidE iN 2015, and digiTal Technologies reach $23 billion by 2017. Also, have been aiding not just its users free-of-charge health, sports, and but also the consumer health ANd by 2020 fitness apps have already reached industry as a whole by promoting for a beTTer you 231 million downloads as early as digital connectivity for research, 68,000+ 2013, with an estimated 68,000 product development, and ESTimATEd NUmbER oF AvAilAblE hEAlTh-RElATEd available health-related apps consumer engagement, Feldman AppS AS oF 2013 Thanks to digital technologies such targeted directly at consumers. further explains. “Consumers as medical devices, applications, And the trend will continue are recording and uploading 231 million wearables, smartphones, and to strengthen next year as more their personal health records tablets, more consumers are taking cloud-based technologies are in digital spaces, and these will NUmbER oF dowNloAdS FoR FREE-oF-chARGE full ownership of their health expected to emerge in response eventually merge with their EHRs, hEAlTh, SpoRTS, ANd FiTNESS AppS iN 2013 and wellness. Dubbed electronic to the digitization of patient which will create an amazing health (eHealth) and mobile health health records worldwide, says and comprehensive view of their (mHealth), this trend in health and Monica Feldman, consumer health individualized health.” (SoURcE: EURomoNiToR iNTERNATioNAl)

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1215-0116 FEATURE SECOND ACT revised.indd 64 11/26/15 3:42 PM here is a lot of hype about entrepreneurs who started their businesses early, as if knowing what you want to do is a rare gift. While that may be so, we mustn’t discount folks who found their calling later in their careers. Many entrepreneurs achieved success after they switched careers—some of them, after retirement. The most popular example is Colonel Harland David Sanders, who worked different jobs before opening a restaurant at 40. To this day, his name and image are synonymous with KFC’s delicious fried chicken. It takes a lot of guts to decide to change careers, especially when one is already successful. But sometimes, no amount of money or success can equal the call of a personal goal or passion, especially when one sees an untapped opportunity in the market. These three entrepreneurs saw a chance and took it, and are reaping the rewards after years of hard work and patience. It just goes to show that no matter how old you are or what your background or training is, when it comes to setting up your own business, it’s your willingness to research, learn, bootstrap, and work hard and smart that will determine your future success. Three entrepreneurs build growing businesses b y Yvette tan p h o t o s b y Jonathan Baldonado m a k e u p a n d h a i r b y t ricia Miranda for their second act

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1215-0116 FEATURE SECOND ACT revised.indd 64 11/26/15 3:42 PM 1215-0116 FEATURE SECOND ACT revised.indd 65 11/26/15 3:42 PM based SGS, to do the product testing. SGS came back RICA KING impressed with the results. “Our products passed with flying colors—up to 99.99 percent antibacterial and COCOLINE Naturals antifungal qualities that can beat the quality of many other brands, and additionally, ours is natural, without Instead of retiring, this parabens,” King says. “I felt like I won the lotto that day.” high-flying exec discovered The biggest challenge, King found, was changing the way consumers thought about coconut oil. “Many a way to use her experience Filipinos are aware of the benefits of coconut oil, but to develop her passion. were averse to it being sticky, warm, and amoy ,” she says. “Our challenge was to produce a winning formula that captures its effectivity on skin yet is delightful to use. COCOLINE Naturals was made to give coconut oil a modern twist. We found other Rica King headed a global skincare brand for 20 years before retiring to natural ingredients that complement well with virgin spend time with her family. As a high-ranking executive, King played a big coconut oil to make the products smell fresh, feel cool role in securing wins for the brand in the Philippines and in Asia. It was and non-sticky, and pleasant to use daily.” her idea to offer whitening products, which were unheard of at that time, King draws on the ideas and experiences that has but have become de rigueur today. She managed to see the company grow made her one of the most creative forces in her old to become a billion-peso business, and saw her products reach the top of company to help launch her new one into public their categories. She’d done it all, and she was ready to take a back seat. “I consciousness. “Aside from the high quality and strong retired in 2010 thinking I could be a full-time housewife.” benefits COCOLINE Naturals has to offer, we dared During retirement, King discovered holistic living, and, wanting to adopt to be different in our way of communication,” she says. the practice for her family, began to study natural alternatives to chemical- “Against the traditional use of celebrity endorsers, we laden mass-produced skincare. She found that fruits and plants are loaded focused on our hero—the coconut. With our battlecry with healing properties, and are more effective and a lot safer than synthetic ‘The Power of Coconut,’ we aimed to be distinct, ingredients. “I was fascinated by the unmatched powers of coconut oil,” she straight-to-the-point, honest, and caring. With the says. “Scientists hail coconut oil as the ‘miracle oil’ because it outweighs the increasing rate of cancer and skin problems, the demand benefits of other popular and expensive oils. It is a strong antioxidant. Many for ‘healthy’ products is at its highest. People are taking Hollywood celebrities claim this oil as their beauty secret. A study also notice and we are slowly building our loyal base.” revealed that the Philippines has the best quality of coconut oil in the world. It seems to be working. Several interested parties I figured, if there is any country that can come up with the best line-up of have approached King to explore having COCOLINE coconut-related products, it should be us.” in their countries. “Growing our local market will just The turning point came after she saw the devastation made by typhoon be as important as planting our seeds well in other Yolanda to coconut farms in 2013. “It provided me a stronger mission markets,” King says. “Using naturals means you care and advocacy to help coconut farmers and help improve the quality of life enough to live longer for yourself and your loved ones. through nature.” It’s a kind of beauty care that goes way beyond vanity. That’s when she decided to set up COCO HealthProducts Inc., which This is true beauty care, inside and out.” makes lotions, body wash, and soaps made with virgin coconut oil under the King tells of a conversation that happened just before brand name COCOLINE Naturals. The products, which are available in she decided to retire. “A prominent businessman once supermarkets, department stores, and drugstores nationwide, naturally have challenged me, saying, ‘You have already earned them antibacterial properties and are paraben-free. COCOLINE Naturals came [former company] tons of wealth, why can’t you do about very systematically, through “Research, plan, create, and network.” “I it for yourself and build your own company?’ That updated myself with world trends [and] market size, and gathered consumer statement haunted me, but I was quite decided to spend insights. We visited factories and talked to chemical engineers and other the next half of my life closer to my family.” experts. It was vital to find and work with the right people and agencies who Even though she didn’t know it then, that question share the vision,” King says. “The entire process was not hard, but it can would lead her to fulfill a goal she didn’t know she had. be tedious because I am OC [obsessive compulsive]. To add fun [and turn And now, in the middle of rolling out COCOLINE’s moments into bonding opportunity], I involved my kids—from creating the products and developing new ones, she has found her brand, to conducting consumer surveys and helping out [with] the launch.” second wind. In the end, for King, it’s all about making After finding the proper formulation, the next step was to have the people happy. “When consumers tell us how they love products certified. King wanted COCOLINE to adhere to international the products and how it helped their skin problems, we standards, so they chose a renowned and impartial laboratory, Switzerland- still get happily giddy about it.”

66 december 2015 -january 2016 Entrepreneur Philippines

1215-0116 FEATURE SECOND ACT revised.indd 66 11/26/15 3:42 PM Rica King’s Golden Rules

• Set your goals, do research, and plan well before you leap; [relying on] passion alone can make the journey to success based SGS, to do the product testing. SGS came back longer and harder. RICA KING impressed with the results. “Our products passed with flying colors—up to 99.99 percent antibacterial and • Have a good grasp COCOLINE Naturals antifungal qualities that can beat the quality of many of your strengths other brands, and additionally, ours is natural, without and weaknesses. This builds grit and Instead of retiring, this parabens,” King says. “I felt like I won the lotto that day.” a strong backbone high-flying exec discovered The biggest challenge, King found, was changing necessary to face the way consumers thought about coconut oil. “Many the rollercoaster a way to use her experience Filipinos are aware of the benefits of coconut oil, but ride called to develop her passion. were averse to it being sticky, warm, and amoy latik,” entrepreneurship. she says. “Our challenge was to produce a winning formula that captures its effectivity on skin yet is • Don’t just do it for the money, but delightful to use. COCOLINE Naturals was made for a higher purpose. to give coconut oil a modern twist. We found other If you aim to create Rica King headed a global skincare brand for 20 years before retiring to natural ingredients that complement well with virgin improvement for the spend time with her family. As a high-ranking executive, King played a big coconut oil to make the products smell fresh, feel cool world around you, role in securing wins for the brand in the Philippines and in Asia. It was and non-sticky, and pleasant to use daily.” somehow the world will her idea to offer whitening products, which were unheard of at that time, King draws on the ideas and experiences that has cooperate with you. but have become de rigueur today. She managed to see the company grow made her one of the most creative forces in her old to become a billion-peso business, and saw her products reach the top of company to help launch her new one into public their categories. She’d done it all, and she was ready to take a back seat. “I consciousness. “Aside from the high quality and strong retired in 2010 thinking I could be a full-time housewife.” benefits COCOLINE Naturals has to offer, we dared During retirement, King discovered holistic living, and, wanting to adopt to be different in our way of communication,” she says. the practice for her family, began to study natural alternatives to chemical- “Against the traditional use of celebrity endorsers, we laden mass-produced skincare. She found that fruits and plants are loaded focused on our hero—the coconut. With our battlecry with healing properties, and are more effective and a lot safer than synthetic ‘The Power of Coconut,’ we aimed to be distinct, ingredients. “I was fascinated by the unmatched powers of coconut oil,” she straight-to-the-point, honest, and caring. With the says. “Scientists hail coconut oil as the ‘miracle oil’ because it outweighs the increasing rate of cancer and skin problems, the demand benefits of other popular and expensive oils. It is a strong antioxidant. Many for ‘healthy’ products is at its highest. People are taking Hollywood celebrities claim this oil as their beauty secret. A study also notice and we are slowly building our loyal base.” revealed that the Philippines has the best quality of coconut oil in the world. It seems to be working. Several interested parties I figured, if there is any country that can come up with the best line-up of have approached King to explore having COCOLINE coconut-related products, it should be us.” in their countries. “Growing our local market will just The turning point came after she saw the devastation made by typhoon be as important as planting our seeds well in other Yolanda to coconut farms in 2013. “It provided me a stronger mission markets,” King says. “Using naturals means you care and advocacy to help coconut farmers and help improve the quality of life enough to live longer for yourself and your loved ones. through nature.” It’s a kind of beauty care that goes way beyond vanity. That’s when she decided to set up COCO HealthProducts Inc., which This is true beauty care, inside and out.” makes lotions, body wash, and soaps made with virgin coconut oil under the King tells of a conversation that happened just before brand name COCOLINE Naturals. The products, which are available in she decided to retire. “A prominent businessman once supermarkets, department stores, and drugstores nationwide, naturally have challenged me, saying, ‘You have already earned them antibacterial properties and are paraben-free. COCOLINE Naturals came [former company] tons of wealth, why can’t you do about very systematically, through “Research, plan, create, and network.” “I it for yourself and build your own company?’ That updated myself with world trends [and] market size, and gathered consumer statement haunted me, but I was quite decided to spend insights. We visited factories and talked to chemical engineers and other the next half of my life closer to my family.” experts. It was vital to find and work with the right people and agencies who Even though she didn’t know it then, that question share the vision,” King says. “The entire process was not hard, but it can would lead her to fulfill a goal she didn’t know she had. be tedious because I am OC [obsessive compulsive]. To add fun [and turn And now, in the middle of rolling out COCOLINE’s moments into bonding opportunity], I involved my kids—from creating the products and developing new ones, she has found her brand, to conducting consumer surveys and helping out [with] the launch.” second wind. In the end, for King, it’s all about making After finding the proper formulation, the next step was to have the people happy. “When consumers tell us how they love products certified. King wanted COCOLINE to adhere to international the products and how it helped their skin problems, we standards, so they chose a renowned and impartial laboratory, Switzerland- still get happily giddy about it.”

66 december 2015 -january 2016 Entrepreneur Philippines www.entrepreneur.com.ph/themagazine december 2015 -january 2016 67

1215-0116 FEATURE SECOND ACT revised.indd 66 11/26/15 3:42 PM 1215-0116 FEATURE SECOND ACT revised.indd 67 11/26/15 3:42 PM Success secrets from Philo Chua

• Be persistent— things will not always go your way all the time so be patient and just keep at it if you believe in what you are doing.

• Read or travel and be curious— you can learn a lot from reading and traveling, and not just information. You can gain different insights from different perspectives from different people you will never meet otherwise. Be curious [about] what others are doing and what they have to say. Those insights can help transform how you see the world and, in turn, help you gain a better understanding of your market.

• Time—a lot of things have to do with proper timing. It’s hard to say when it’s the proper time. It may be your biological clock, or your timing with regards to commitments, or it can be about proper market timing.

68 december 2015 -january 2016 Entrepreneur Philippines

1215-0116 FEATURE SECOND ACT revised.indd 68 11/26/15 3:42 PM Success secrets from Philo Chua

• Be persistent— things will not always go your way all the time so be patient and just keep at it if you believe in what me. It was a steep learning curve—I had to deal with you are doing. PHILO CHUA mechanical motors which I knew nothing about and was literally getting down and dirty if something broke down. • Read or travel I was a one-man team at the start. From sourcing, R&D, and be curious— Theo + Philo Chocolates you can learn a lot repairs, production, design, accounting, etc.” from reading and To launch his bean-to-bar Chua knew that he was on the right track when he traveling, and not chocolate business, this web joined an expo where his work-in-progress product just information. garnered positive comments. “We were not selling You can gain developer worked two roles. and was just offering it for people to taste, but people different insights were already asking about buying it. It was gratifying from different to hear that a lot of people understood what I was perspectives from different people trying to do, and liked the product,” he says. you will never meet The gamble paid off. Not only did Theo + Philo otherwise. Be curious set off the artisanal chocolate craze, it brought [about] what others Before launching a chocolate company that would herald the craze for Philippine cacao—and those who farm it—back into are doing and what locally sourced products, Philo Chua was a web developer in the United the limelight. “The best thing about my job is that they have to say. States. “I took up computer science in college, but I always enjoyed doing I feel like I’m building something that has purpose Those insights can something more creative. The job I entered, however, didn’t really allow beyond just earning a living for myself. We are able help transform how you see the world a lot of creative freedom. I was mainly doing back-end programming to help transform lives through the people we employ and, in turn, help work for a company that offers services to law firms,” he says. and work with, and it is gratifying as a business owner you gain a better Living alone in the U.S. made him appreciate cooking. This necessity to see one’s employees prosper also. In addition, I am understanding of turned into a hobby, which led him towards baking as a creative outlet. able to create products that I hope can bring a smile your market. “I wasn’t really thinking of cooking or baking as a business. It was just and happiness to our customers,” Chua says. something fun to do,” he says. Now, Theo + Philo is halfway between a startup Time—a lot of • After a few years, he decided to make a change. “I wanted to start a and a big company. “Originally, to be able to make things have to do with proper timing. business—it would let me switch careers and try out something new. At 10,000 bars a month sounds like a big goal to have It’s hard to say the same time, while still being relatively young, I could always go back when we were just starting out. Now, we are able to when it’s the proper and look for a job if it failed,” he says. make more than that and we now want to have a goal time. It may be your A visit to a newly opened chocolate shop in Pittsburgh, where he was to be able to make at least 10 times more per month,” biological clock, based, changed everything. “It showed exotic single-origin chocolates Chua says. “We have six to seven people doing daily or your timing from all over the world. That’s when my eyes opened to the potential production. Depending on the product and the load, with regards to for chocolate. I knew that we have cacao here in the Philippines, and we can make between 300 and 1,000 bars a day.” commitments, or it can be about proper I felt like that’s what I wanted to do. At the same time, bean-to-bar “Our challenge now is to create a better system market timing. chocolate makers from garage type operations was beginning to start in place and manage our growth. We need to plan in the [United] States. Reading about those guys who had never made earlier and have a proper culture in our company that chocolates before encouraged me to start one, even without the know- encourages excellence and productivity. It can no how and experience.” longer be just me who oversees everything. In order He moved back to Manila. His capital consisted of his savings, as well for us to grow properly, I need to relinquish control in as additional funding from his parents to purchase machines. To keep some areas and have people take on responsibilities.” capital rolling in, and to make sure that he had enough to live on on a day- Chua’s cautious approach has been beneficial to to-day basis, he kept his job as a graphic designer, working with his U.S.- the company. “Sales and profit has been steady for the based clients in the evenings while working on chocolate during the day. past couple of years. This year, however, is a transition Chua relied on research and experimentation. “It’s really the year, as we set into a new place and have a new experiments that I try that really helped me understand how it is to make machine. It’s almost like starting over but in a slightly chocolate,” he says. “There were a lot of trials and errors.” bigger scale, and we have new things to learn.” In a country where artisanal chocolate was yet nonexistent, everything And there’s room to grow. “We plan to start having seemed to be a challenge. “It was difficult at the start because nobody more products that are mainstream, just like the really understood what I was trying to do at the time, especially here in chocolate spreads that we have now. In addition, we the Philippines. When talking to suppliers and companies for machines, want to start doing some export as interest from nobody knew what I meant when I mentioned about processing cacao outside shores are beginning to increase,” Chua says. beans. If they did know, they could only offer industrial-sized machines “I’m not great at growth forecast. All I can say is that from foreign manufacturers that were too big and too expensive for we don’t expect demand to go down anytime soon.”

68 december 2015 -january 2016 Entrepreneur Philippines www.entrepreneur.com.ph/themagazine december 2015 -january 2016 69

1215-0116 FEATURE SECOND ACT revised.indd 68 11/26/15 3:42 PM directory from 11,000 to 14,000 restaurants we have currently and maintain accuracy. I think a key reason BEN WINTLE for my team’s high productivity is that everyone feels Booky like they’re owners of the business, most of them have stock options so they are.” Moving to Manila meant moving The app touched a need, and was an instant hit. “Making an app that really gets used is hard, so when I full-time into entrepreneurship first started learning that friends and friends of friends were repeatedly using Booky, it got me pumped,” Wintle for this expat. says. “We have about 500,000 monthly users now.” Their strategy for growth is simple: “to generate content that delivers value to our user base,” Wintle says. “One example is our Instagram, where every day Ben Wintle’s first job was in commercial real estate in Hong Kong. In we post about the new restaurants opening in Manila. 2005, this led into him and some friends starting a headhunting company I think our Instagram account @bookymanila now that focused on the real estate sector. Their sector-specific focus and has the biggest following compared to any other hard-hitting sales culture proved to be a winning formula. Wintle was lifestyle/food app in the country.” in charge of their China operations until the company was sold in 2009. Despite Booky’s success, there are still some After taking a year off, he stumbled into technology and was attracted to challenges to be hurdled. “With 15 people, I feel we’re the scalability of apps. still a lean team for what we’re trying to achieve, so Wintle moved to Manila where, using his own funds, he set up an app knowing what to focus our resources on at any given development studio whose mission was to experiment with different time is as much an art as it is science,” Wintle says. app concepts “in view of finding a winning horse.” “Booky was the first But Wintle is confident that Booky has a long, app we did that solved a big personal problem in Manila; the Internet successful way to go—thanks in part to sucky Internet. sucked so it was tedious to find restaurant information quickly. Given that “We’re aiming for 20,000 Prime subscribers by mid- connectivity is a universal problem here, the app got traction right away,” 2016,” he says. “We will introduce Booky to Jakarta in he says. 2016 as it’s a bustling market and the 3G is terrible, so Booky is an app that’s basically a phonebook of restaurants in [it has] very similar conditions to Manila.” Metro Manila that also works offline. It’s currently rolling out a premium Booky is a great example of an app that is so service called Prime, which entitles members to discounts at over 200 simple and so obvious, the first thing one thinks upon leading restaurants. experiencing it for the first time is, “Why didn’t I think Developing a winning app wasn’t easy. It took Booky’s five employees of this?” And that’s part of what makes it great. “I love (Wintle included) three months to build the initial directory of restaurant that we deliver some value to so many people,” Wintle information and develop the first version of the app. “It’s like the movie says. “I get a great kick when I’m in a public place and I The Martian; there is a constant barrage of new problems arising,” Wintle see people using Booky on their phones.” says. “One of the challenges from the start has been keeping our restaurant After all, for an entrepreneur, the passionate directory updated. Our team has required a lot of grit to grow our adoption of their product is the best of all scenarios. E

Reinventing yourself involves learning. Here are some books that can help you along the way.

Wise words al Book Store The Real-Life MBA: Leadership BS: Fixing Workplaces From the Other Side N Your No-BS Guide To Winning the and Careers One Truth at a Time of the World: Extraordinary Game, Building a Team, By Jeffrey Pfeffer Entrepreneurs, Unlikely Places and Growing Your Career By Elmira Bayrasli (HarperCollins, 2015) t Natio A By Jack and Suzy Welch Why and how do leaders fail? (Public Affairs, 2015) (Harper Business, 2015) The author Jeffrey Pfeffer, Silicon Valley doesn’t have E If you want to learn about a professor at the Stanford the monopoly on innovation. bl running a business, might as Graduate School of Business, Innovation and entrepreneurship A il

well study under Jack Welch, the famed who is considered one of the leading is happening even in emerging markets. A former chairman and CEO of GE, and his management experts in the world, examines That’s the premise of this book, which v wife and co-author Suzy, former editor the causes of the failures to help follows entrepreneurs building globally in chief of the Harvard Business Review. readers understand how leaders fail their competitive products and services in The couple offers insights on building a people and organizations and, in turn, unlikely places—in countries seen to great company, creating a winning team, change attitudes and mindsets to create be the source of overwhelming economic and growing your career. better and more effective leaders. growth over the next 25 years. All books A

70 december 2015 -january 2016 Entrepreneur Philippines

1215-0116 FEATURE SECOND ACT revised.indd 70 11/26/15 3:42 PM Smart advice from Ben Wintle

• If you’re starting your own business, make sure you have the financial means to last you twice as long as you directory from 11,000 to 14,000 restaurants we have originally planned. currently and maintain accuracy. I think a key reason BEN WINTLE for my team’s high productivity is that everyone feels • View every day, whether success or like they’re owners of the business, most of them have Booky failure, as a linear stock options so they are.” progression towards Moving to Manila meant moving The app touched a need, and was an instant hit. your goal. “Making an app that really gets used is hard, so when I full-time into entrepreneurship first started learning that friends and friends of friends • Put your family were repeatedly using Booky, it got me pumped,” Wintle and health before any for this expat. says. “We have about 500,000 monthly users now.” business matters to keep you sane. Their strategy for growth is simple: “to generate content that delivers value to our user base,” Wintle says. “One example is our Instagram, where every day Ben Wintle’s first job was in commercial real estate in Hong Kong. In we post about the new restaurants opening in Manila. 2005, this led into him and some friends starting a headhunting company I think our Instagram account @bookymanila now that focused on the real estate sector. Their sector-specific focus and has the biggest following compared to any other hard-hitting sales culture proved to be a winning formula. Wintle was lifestyle/food app in the country.” in charge of their China operations until the company was sold in 2009. Despite Booky’s success, there are still some After taking a year off, he stumbled into technology and was attracted to challenges to be hurdled. “With 15 people, I feel we’re the scalability of apps. still a lean team for what we’re trying to achieve, so Wintle moved to Manila where, using his own funds, he set up an app knowing what to focus our resources on at any given development studio whose mission was to experiment with different time is as much an art as it is science,” Wintle says. app concepts “in view of finding a winning horse.” “Booky was the first But Wintle is confident that Booky has a long, app we did that solved a big personal problem in Manila; the Internet successful way to go—thanks in part to sucky Internet. sucked so it was tedious to find restaurant information quickly. Given that “We’re aiming for 20,000 Prime subscribers by mid- connectivity is a universal problem here, the app got traction right away,” 2016,” he says. “We will introduce Booky to Jakarta in he says. 2016 as it’s a bustling market and the 3G is terrible, so Booky is an app that’s basically a phonebook of restaurants in [it has] very similar conditions to Manila.” Metro Manila that also works offline. It’s currently rolling out a premium Booky is a great example of an app that is so service called Prime, which entitles members to discounts at over 200 simple and so obvious, the first thing one thinks upon leading restaurants. experiencing it for the first time is, “Why didn’t I think Developing a winning app wasn’t easy. It took Booky’s five employees of this?” And that’s part of what makes it great. “I love (Wintle included) three months to build the initial directory of restaurant that we deliver some value to so many people,” Wintle information and develop the first version of the app. “It’s like the movie says. “I get a great kick when I’m in a public place and I The Martian; there is a constant barrage of new problems arising,” Wintle see people using Booky on their phones.” says. “One of the challenges from the start has been keeping our restaurant After all, for an entrepreneur, the passionate directory updated. Our team has required a lot of grit to grow our adoption of their product is the best of all scenarios. E

Reinventing yourself involves learning. Here are some books that can help you along the way.

Wise words al Book Store The Real-Life MBA: Leadership BS: Fixing Workplaces From the Other Side N Your No-BS Guide To Winning the and Careers One Truth at a Time of the World: Extraordinary Game, Building a Team, By Jeffrey Pfeffer Entrepreneurs, Unlikely Places and Growing Your Career By Elmira Bayrasli (HarperCollins, 2015) t Natio A By Jack and Suzy Welch Why and how do leaders fail? (Public Affairs, 2015) (Harper Business, 2015) The author Jeffrey Pfeffer, Silicon Valley doesn’t have E If you want to learn about a professor at the Stanford the monopoly on innovation. bl running a business, might as Graduate School of Business, Innovation and entrepreneurship A il well study under Jack Welch, the famed who is considered one of the leading is happening even in emerging markets. A former chairman and CEO of GE, and his management experts in the world, examines That’s the premise of this book, which v wife and co-author Suzy, former editor the causes of the failures to help follows entrepreneurs building globally in chief of the Harvard Business Review. readers understand how leaders fail their competitive products and services in The couple offers insights on building a people and organizations and, in turn, unlikely places—in countries seen to great company, creating a winning team, change attitudes and mindsets to create be the source of overwhelming economic and growing your career. better and more effective leaders. growth over the next 25 years. All books A

70 december 2015 -january 2016 Entrepreneur Philippines www.entrepreneur.com.ph/themagazine december 2015 -january 2016 71

1215-0116 FEATURE SECOND ACT revised.indd 70 11/26/15 3:42 PM 1215-0116 FEATURE SECOND ACT revised.indd 71 11/26/15 3:42 PM FRANCHISE

Forward merch The changing landscape of retail franchising

written by lolita villa

ou want to get a franchise. And Philippines, retail franchises [comprised] to-wear] retail, clothing has definitely you’re interested in retail. But is it 75 percent of franchise brands,” he says. been on the downtrend for several years Y a good idea? “Today that segment was taken over by food, already. Look at the foreign brands Going by franchise stats, it doesn’t and vanity and health-related franchises, coming into the market,” he says. He look like retail is doing well. Experts while retail is down to 5 percent.” estimates that about a third of all retail say, however, that while apparel retail The entry of foreign retailers like franchises in the Philippines are into has been on the decline, other retail Uniqlo, H&M, and Forever 21, for apparel and accessories retail. The influx segments are on the rise. instance, has made it difficult for local of cheap, imported merchandise, which clothing retailers to compete, which come via bazaars, ukay-ukay stores, and WINNERS AND LOSERS is why franchises of apparel retail has online RTW set-ups, are also eating into Rudolf Kotik, president and CEO of RK slowed down, says Christopher Lim, the pricing margins of both retailers and Franchise Consultancy, says the number senior vice president for marketing and retail franchisers, he adds. of retail franchises has gone down over strategy of Francorp Philippines. Kotik But there’s a bright side. Both Kotik

the years. “When we started in 1997 in the agrees. “When we talk of RTW [ready- and Lim agree that convenience stores, illustration by paper boat creative/getty images

72 december 2015 -january 2016 Entrepreneur Philippines usually foreign Filipinos. Everyone has a favorite think of e-commerce,” he adds. “Think of concepts from sari-sari store, and these convenience when will they start competing in their big players, stores function just like a sari-sari store. brick-and-mortar stores, and achieving and pharmacy That’s why these franchises are doing so growth through franchising.” concepts are well now,” says Kotik. growing in NICHE SEGMENTS popularity. In NEW CONCEPTS There is one segment that may prove the convenience The industry has also seen new concepts promising: niche retailing. Kotik says store segment, and developments. Two of the newest that a niche product can be anything 7-Eleven concepts include Calata Corp.’s Agri, under the sun that is not commonly sold, Philippines which sells agricultural supplies to such as gift boxes, accessories, or highly already boasts farmers, and Holcim HUBB Builders specialized beauty and home products. of more than Center, which sells construction supplies “It has to be its own market so it can 1,300 stores to DIY enthusiasts and contractors. Both maintain mark-up and profitability with nationwide, concepts are using the franchise model no competition. The more competition, while rival in order to expand. “Holcim, a global the smaller the margins. If you have your Ministop has cement supplier, has started franchising own niche, you can sell for how much the more than 500. a retail arm. So they started competing market is willing to buy it and not play In the pharmacy with mom-and-pop stores that sell with the competition,” he explains. retail segment, construction supplies and equipment,” Lim has found such niche brand, homegrown Lim said at the recently concluded 18th even investing in one—stationery medicine retailer Asia-Pacific Retailers Convention & retail franchise The Paper Stone from The Generics Exhibition Summit. “They serve as a Singapore. “They have the cutest, Pharmacy middle-ground between the home depot liveliest, and trendiest stationery and now leads the stores and the mom-and-pop stores, paper goods. The competitive advantage field in generic but they entered retail as well and are of the store is that new designs are medicines retail, competing with the people they supply developed every week to keep customers with more than to,” he says. coming back,” he says. 1,812 stores to One new development that has For an aspiring entrepreneur, it seems fend off upstarts piqued Lim’s interest concerns online that pursuing niche markets, playing wanting a piece retailers. At the retail summit, he with online platforms, and looking of the market. observed a development that no one has at convenience store and pharmacy One of foreseen nor expected—“online players franchise concepts may be the way to the major factors behind the rise of are starting to have offline stores.” He go in retail. But Armand Bartolome, the convenience store segment is the cites the Zalora pop-up stores in Hong president and CEO of GMB Franchise country’s growing middle class. Data Kong and the Philippines, as well as Consultants, cautions against just blindly from the Philippine Statistics Authority e-commerce giant Amazon opening a joining the bandwagon. “Look at your and consumer insights firm Euromonitor brick-and-mortar store in the United lifestyle and personality. Gauge if you International show that the middle class States. “I really think that beyond 2016, a are the kind of person who loves food, has grown from 4.6 million households retail trend will be online stores opening services, or retailing. Then, check your in 2008 to 5.4 million in 2014. The offline. When a brand like Zalora starts budget and location if you can afford growing market has lured FamilyMart to open offline stores, how long until that kind of franchise. Finally, see if the and Lawson, both Japanese chains, and they decide that they want to go into franchise is a winner, and if you have few Indonesia’s Alfamart, to set up shop franchising?” he says. “When people talk competition in the market. Huwag lang in the country. “This is cultural for about online competition, do not just sumali sa uso.” E

TECH-DRIVEN 3-D PRINTING CLICK-AND-MORTAR PAYMENT While seen by some more as Who would have thought CHANGE IS Technology-driven a service, 3-D printing can be that online merchants would developments in the a boon to the industry as it eventually come up with their form of mobile and online would allow customers to buy own brick-and-mortar stores? GONNA COME payment solutions, and customized made-to-order goods. E-commerce giant Amazon just upgraded point-of-sales Coming up with mock-ups or came up with its own physical Sam Christopher Lim of systems in-store leads to prototypes, which traditionally bookstore in the United States, Francorp Philippines lets us better conversion rates took weeks, can now be done while online fashion retailer in on changes shaping the due to less queuing in in less than a day, or even mere Zalora has had multiple pop-up future of retail franchising. stores and the option of hours or minutes, depending on stores in Hong Kong, Singapore, advanced payment. the size of the item. and the Philippines.

www.entrepreneur.com.ph/themagazine december 2015 -january 2016 73 FRANCHISE

Suy Sing to come up with this innovation since it already had the range of products, the logistics, and the system to support it,” says assistant vice president for business development Lerida T. Guzman, who’s spearheading the company’s first foray into retail franchising. Easy Day is positioned as “a modern neighborhood grocery store,” she says. “We want to be an extension of people’s pantry,” she notes, adding the stores will boast of a wide range of products that can rival those offered by big-box supermarkets, but in a compact and accessible format. The Easy Day franchise is turnkey, says Guzman, as it is already backed by Suy Sing’s roster of more than 300 suppliers, and supported by its logistics network, inventory management systems, and marketing programs. “We already give franchisees a system as part of the franchise package, and this gives them a chance to level up their retail offerings so that they can be more competitive.” Each Easy Day store will have three check-out counters and a food counter which sells grab-and-go items such as hotdogs, , and rice meals. A bills payment counter and an automated teller machine will also be

Lerida T. Guzman is available in every store. spearheading Suy Sing Commercial Corp.’s first Easy Day will also provide the right foray into retail franchising, assortment of goods at “everyday low with the Easy Day community grocery store. prices,” starting with its Easy Day brand line of items which includes bread, pasta, mineral water, and party and cleaning supplies. At P5 million, startup costs may be steep, in part due to construction costs, WITH EASE but Guzman believes that Easy Day still Wholesale distributor forays into retail makes for a worthwhile investment for aspiring entrepreneurs. “Whether the lthough Suy Sing Commercial Corp. economy is doing well or is in a recession, has been in the wholesale distribution FRANCHISE PACKAGE a grocery store would still do well since it A business for the past 70 years, it Total investment: P5 million to P6 million, provides the basic needs of households.” knows a thing or two about retail. After all, depending on the size and location of the store Currently, Easy Day has five company- it has been the go-to supplier of more than owned stores in San Andres and Tondo, 15,000 retailers, including independent Size requirement: Minimum of 200 sq. m. Manila, Quezon City, and Makati City. supermarkets, mini-marts, grocery stores, It is set to open five more stores before the and convenience stores. Contract term: 7 years, renewable year ends.—Toni Antiporda No surprise it came up with the concept for its community grocery store retail Inclusions: License to use name, trademark, and logo; site evaluation brand Easy Day. The idea was to set up assistance; site construction and renovation EASY DAY SHOP mini-supermarkets in residential areas, assistance; operations manual; training; (Suy Sing Commercial Corp.) while leveraging on its wholesale and business system support; retail automation; suysing.com retail experience by helping others set stock management and control; marketing (02) 706-8888; (02) 247-1888 o by Heidi aquende o by up their own stores. It has even decided and promotions support; customer loyalty 511 Muelle de Binondo St., Binondo, Manila T

to franchise the concept. “It was easy for program, among others [email protected] Pho

74 december 2015 -january 2016 Entrepreneur Philippines

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Suy Sing to come up with this innovation since it already had the range of products, the logistics, and the system to support it,” PROBLEM says assistant vice president for business development Lerida T. Guzman, who’s spearheading the company’s first foray into retail franchising. SOLVED FRANCHISE Easy Day is positioned as “a modern MatheMagis adopts neighborhood grocery store,” she says. PACKAGE “We want to be an extension of people’s Singapore math for pantry,” she notes, adding the stores learning center Total investment: will boast of a wide range of products P2 million that can rival those offered by big-box et’s face it: Children hate math. Joanne to P3 million supermarkets, but in a compact and Tabora-Sison realized this more than for a 40 to accessible format. five years ago as she struggled to find 60 square-meter L location The Easy Day franchise is turnkey, a mathematics enrichment program for says Guzman, as it is already backed her son. And she wasn’t alone—fellow Contract term: by Suy Sing’s roster of more than 300 mothers and educators Ina Cuisia- 5 years, renewable suppliers, and supported by its logistics Sehwani and Julienne Sison-Vital were network, inventory management systems, also in the same boat. Inclusions: and marketing programs. “We already But they were all disappointed when License to use give franchisees a system as part of the they learned that learning centers focused trademark, name, franchise package, and this gives them a on drills and memorization when it came and logo; start-up chance to level up their retail offerings so to teaching math—an approach they business guidance; site selection that they can be more competitive.” knew children hated. So in 2010, the and evaluation Each Easy Day store will have three three mompreneurs started their own assistance; training check-out counters and a food counter mathematics enrichment center using a and certification which sells grab-and-go items such teaching method from Singapore. of teachers; as hotdogs, arroz caldo, and sisig rice MatheMagis Singapore Maths teaches operations manual meals. A bills payment counter and an children math concepts, skills, and and systems; automated teller machine will also be processes using visual tools such as toy learning materials; marketing support, Lerida T. Guzman is available in every store. blocks, colorful worksheets and books, spearheading Suy Sing among others Commercial Corp.’s first Easy Day will also provide the right and interactive activities on an iPad. This foray into retail franchising, assortment of goods at “everyday low visual approach enables children to better with the Easy Day community grocery store. prices,” starting with its Easy Day brand grasp the logic behind math problems and, strengthen their foundation skills so that The founders are aware some see line of items which includes bread, in the process, promote creative thinking when they move up to the higher grades, Singapore math as just a fad. “They think pasta, mineral water, and party and and strategic problem solving. they are more prepared and confident.” that way because some schools tried it but cleaning supplies. The visual approach also helps children MatheMagis’s enrichment program stopped after a year—they weren’t able to At P5 million, startup costs may be develop a more positive attitude towards also complements the math lessons taught implement [the program] because they steep, in part due to construction costs, math, says Sehwani, chief executive in private and public schools. “When didn’t train the teachers,” shares Sehwani. WITH EASE but Guzman believes that Easy Day still officer. “Many children don’t like math you look at the K-12 framework, it’s That’s why they developed a solid training Wholesale distributor forays into retail makes for a worthwhile investment for because their foundation skills were moving toward problem-solving skills,” and certification program for teachers. aspiring entrepreneurs. “Whether the not developed well early on—we want to notes Sison, chief program officer. “The The founders also want to ensure the lthough Suy Sing Commercial Corp. FRANCHISE PACKAGE economy is doing well or is in a recession, concept and success of their franchisees. “We want to has been in the wholesale distribution a grocery store would still do well since it (from left) Julienne Sison-Vital, implementation choose the right partners—it’s not easy to business for the past 70 years, it provides the basic needs of households.” Joanne Tabora-Sison, are the same, and re-wire the way of teaching,” says Vital, A Total investment: P5 million to P6 million, and Ina Cuisia-Sehwani have knows a thing or two about retail. After all, Currently, Easy Day has five company- grown MatheMagis Singapore it’s aligned with operations chief. “Yes, this is a business, depending on the size and location of the store Maths to six branches. it has been the go-to supplier of more than owned stores in San Andres and Tondo, MatheMagis.” but this is also our passion—whatever 15,000 retailers, including independent Size requirement: Minimum of 200 sq. m. Manila, Quezon City, and Makati City. The founders happens, we will be there to support our supermarkets, mini-marts, grocery stores, It is set to open five more stores before the started to fran- franchisees,” says Sison.—Ieth Inolino and convenience stores. Contract term: 7 years, renewable year ends.—Toni Antiporda chise the center No surprise it came up with the concept this year. “There for its community grocery store retail Inclusions: License to use name, was a demand trademark, and logo; site evaluation brand Easy Day. The idea was to set up from parents to MATHEMAGIS SINGAPORE MATHS assistance; site construction and renovation EASY DAY SHOP mini-supermarkets in residential areas, offer it to places (Explorarium Co. Ltd.) assistance; operations manual; training; (Suy Sing Commercial Corp.) mathemagis.com while leveraging on its wholesale and like Alabang, business system support; retail automation; suysing.com (02) 833-7374 retail experience by helping others set stock management and control; marketing (02) 706-8888; (02) 247-1888 Quezon City, and o by Heidi aquende o by 3/F Cedar Executive Bldg., up their own stores. It has even decided and promotions support; customer loyalty 511 Muelle de Binondo St., Binondo, Manila T even abroad,” 1006 A. Arnaiz St., Makati City to franchise the concept. “It was easy for program, among others [email protected] Pho says Sison. [email protected] baldonado jonathan by Photos

74 december 2015 -january 2016 Entrepreneur Philippines www.entrepreneur.com.ph/themagazine december 2015 -january 2016 75

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The Ocampo family (from left: daughter Haraya, Era, grand-daughter Sophia, and Eufracio) each with their own favorite pasalubong.

traditional Filipino delicacies like pili tarts, de leche, , and tamarind candies. When Eufracio failed to renew their business registration, they lost their business name, which forced him to coin a new one—he came up with Sitsirya Sari-Sari. The name change ultimately redirected the course of the business, and paved the way for a better brand. While Sitsirya doesn’t produce the goods themselves, it has a network of trusted suppliers of traditional delicacies from different parts of the Philippines. The suppliers are able to tap a bigger market through the Sitsirya brand, with the Ocampos guiding them on how to improve their production practices, facilities, and product costing. LOCAL FLAVOR Their packaging innovations allowed Sitsirya to corner diverse markets, Sitsirya Sari-Sari levels up the Pinoy pasalubong from balikbayans, tourists, and even organizations in need of gifts and henever a family member or a friend “the best of what the Philippines has to giveaways. Small pouch samplers called comes home from a vacation, or even offer,” says Eufracio. “Pasalubong kay Bunso,” which sell for W just from work, almost always they While the concept centers on tradition P15 to P20, makes pasalubong within would have pasalubong in tow. “When we and happy memories, the business itself reach for the mass market. Sitsirya’s use were young, our father would always come was built on loss and hardship. In 1983, of high-grade desiccants and triple-layer home from work with pasalubong,” recalls the Ocampos found themselves jobless foil in premium boxes also improves the Eufracio Ocampo. and mourning the death of Era’s father. products’ shelf life and quality, cutting It’s a tradition he wants to keep alive Fighting back temptation to work abroad, the need for preservatives and making through his pasalubong kiosk Sitsirya for fear that it might tear the family apart, them easy to distribute even overseas. Sari-Sari, which he started with his wife, the Ocampos chose to start their own After setting up 17 company-owned Era, in 2001. But instead of peddling the business instead. outlets, the Ocampos realized that they usual commercial junk food fare, Sitsirya Armed with P10,000, the Ocampos needed a more systematic way to grow promotes traditional Filipino delicacies, started Burp Foods in 1984, selling the business, prompting them to start franchising Sitsirya Sari-Sari last June. “It’s a simple business—you just need to sell,” says Eufracio. “But Sitsirya FRANCHISE PACKAGE doesn’t just sell pasalubong; it also sells memories,” he adds, noting that every Total investment: P450,000 to P700,000, Filipino has a favorite pasalubong, with a depending on the size and location of the kiosk story attached to it. “The memories are there, you just need to capitalize on the Contract term: 3 years, renewable emotional triggers,” he says.—Lolita Villa Inclusions: License to use name, trademark, and logo; site evaluation assistance; kiosk set-up; training; operations sITsIrya sarI-sarI InC. manual; P40,000 to P50,000 worth of initial sitsirya.com stocks; marketing and advertising support, (02) 713-5040; 0920-9209680

among others [email protected] Heidi Aquende by Photos

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FRANCHISE PACKAGE

Total investment: P7.5 million to The Ocampo family (from left: daughter Haraya, Era, grand-daughter Sophia, and Eufracio) each with P10 million, their own favorite pasalubong. depending on the size and location traditional Filipino delicacies like of the store. In-line pili tarts, pastillas de leche, piaya, and stores are allowed tamarind candies. When Eufracio failed to have three to renew their business registration, satellite kiosks. they lost their business name, which Contract term: forced him to coin a new one—he came 5 years, renewable up with Sitsirya Sari-Sari. The name change ultimately redirected the course Inclusions: of the business, and paved the way for a License to use better brand. name, trademark, While Sitsirya doesn’t produce the and logo; site goods themselves, it has a network of selection; trusted suppliers of traditional delicacies operations manual from different parts of the Philippines. and systems; staff hiring and training; The suppliers are able to tap a bigger pre-opening market through the Sitsirya brand, with preparations; the Ocampos guiding them on how to marketing support; improve their production practices, SAY CHEESE operations and facilities, and product costing. Local bread manufacturer imports Japanese cheesecake concept quality assurance Their packaging innovations allowed audits, among LOCAL FLAVOR others Sitsirya to corner diverse markets, Sitsirya Sari-Sari levels up the Pinoy pasalubong from balikbayans, tourists, and even organizations in need of gifts and hen Walter Co went to That was Co’s introduction to Uncle the bread business for 33 years. His henever a family member or a friend “the best of what the Philippines has to giveaways. Small pouch samplers called for a business trip, he stumbled Tetsu, a cheesecake brand originally pitch convinced Uncle Tetsu, who comes home from a vacation, or even offer,” says Eufracio. “Pasalubong kay Bunso,” which sell for W on a bakeshop with a long line from Japan, but is now also present in agreed to grant Co a master franchise W just from work, almost always they While the concept centers on tradition P15 to P20, makes pasalubong within of people waiting 45 minutes just Taiwan, China, Malaysia, and Canada. for the Philippines. would have pasalubong in tow. “When we and happy memories, the business itself reach for the mass market. Sitsirya’s use to buy cheesecake. When he tried Not long after, Co set out to bring Uncle Uncle Tetsu Philippines opened its were young, our father would always come was built on loss and hardship. In 1983, of high-grade desiccants and triple-layer the cheesecake, he discovered it was Tetsu Cheesecake to the Philippines. first store in July 2014. It now has six home from work with pasalubong,” recalls the Ocampos found themselves jobless foil in premium boxes also improves the different from the Western-style versions In May 2013, Co met with the brand’s branches—in SM Megamall, SM Mall of Eufracio Ocampo. and mourning the death of Era’s father. products’ shelf life and quality, cutting he had tried before—it was light and fluffy founder Tetsushi Mizokami—Uncle Asia, SM City San Lazaro, The Podium, It’s a tradition he wants to keep alive Fighting back temptation to work abroad, the need for preservatives and making and almost melted in his mouth. “It was Tetsu himself—a baker and pastry chef. Alabang Town Center, and SM City through his pasalubong kiosk Sitsirya for fear that it might tear the family apart, them easy to distribute even overseas. like eating a cloud of cheese, and it was “We assured him that we understand the North Edsa. Three more franchised Sari-Sari, which he started with his wife, the Ocampos chose to start their own After setting up 17 company-owned not overly sweet,” says Co, president of bakery business, and presented to him outlets are set to open next year in Cebu, Era, in 2001. But instead of peddling the business instead. outlets, the Ocampos realized that they C. Walter Company Inc. and founder and our plans for the Uncle Tetsu brand in the Iloilo, and Davao. usual commercial junk food fare, Sitsirya Armed with P10,000, the Ocampos needed a more systematic way to grow CEO of Walter Bread. Philippines,” says Co, who has been in Apart from the cheesecake, Uncle promotes traditional Filipino delicacies, started Burp Foods in 1984, selling the business, prompting them to start Tetsu has also introduced cheese tarts, franchising Sitsirya Sari-Sari last June. pastry puffs, cream cake rolls, and “It’s a simple business—you just need chilled decorated cakes, in line with the to sell,” says Eufracio. “But Sitsirya company’s commitment to introduce FRANCHISE PACKAGE doesn’t just sell pasalubong; it also sells new products every quarter, says Co. memories,” he adds, noting that every —Lou Bognot Total investment: P450,000 to P700,000, Filipino has a favorite pasalubong, with a depending on the size and location of the kiosk story attached to it. “The memories are there, you just need to capitalize on the UnCle TeTsU Contract term: 3 years, renewable emotional triggers,” he says.—Lolita Villa CheeseCake PhIlIPPInes Inclusions: License to use name, (C. Walter Company Inc.) trademark, and logo; site evaluation (02) 239-2959; (02) 239-2964 local 201 assistance; kiosk set-up; training; operations sITsIrya sarI-sarI InC. Walter Co of CST Bldg., Lot 33 & 34 Felix Ave., y HEIDI AQUENDE Walter Bread was manual; P40,000 to P50,000 worth of initial sitsirya.com immediately taken Brgy. San Isidro, Karangalan Village, stocks; marketing and advertising support, (02) 713-5040; 0920-9209680 with Uncle Tetsu, Cainta, Rizal a Japanese

among others [email protected] Heidi Aquende by Photos cheesecake chain. [email protected] B Photos

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Kingsley Tan immediately recognized FRANCHISE the value of a Mineski Infinity franchise. PACKAGE

Total investment: Starts at P3.2 million, depending on the size and location of the shop

Contract term: 5 years, renewable

Inclusions: License to use name, trademark, and logo; site selection assistance; interior renovation; operations manual; training; technical Game on support; computer gaming units, Cybercafé gamble pays off including monitors, for freelance graphic designer tables, and chairs; lighted signboards, among others

o this is where all the people But it was a meeting with Mineski’s already has 300,000 members. Tan’s are!” exclaimed Kingsley Tan founder Ronald Robins that sealed first branch, which houses 100 computer “S when he walked into a packed the deal for Tan and his partners. “We units, caters to more than 35,000 gamers cybercafé two years ago. The freelance liked where the company was headed— per month on average, and can still cash graphic designer, his sister, and potential [Robins] knows where he is going with it, in up to P21,000 even on slow days. business partners were then scouting and he understands the market because Overhead remains a concern, though, Katipunan Ave., Quezon City for a he is the market,” says Tan. especially since it’s a 24-hour business. franchise to invest in. At first, they So in November 2014, Tan and his “We keep an eye on our electric bills looked at food concepts; learning about partners finally set up their own Mineski since it takes majority of our expenses,” the Mineski Infinity cybercafé made shop along E. Rodriguez Avenue. It was a Tan discloses. To save on electricity costs them reconsider. huge gamble for them. For one, the total during off-peak hours, Tan advises his They went to another branch along investment needed, more than P3 million, staff to either turn off air-conditioning or E. Rodriguez Ave., Quezon City to see if it was rather steep. “We ran the numbers move all customers to just one section of was as packed as the one in Katipunan—it and knew that we were paying a premium the shop. was. “We went around 10:00 p.m. and for the brand,” discloses Tan. “We were Still, the biggest challenge for Tan is there were still a lot of people, and I apprehensive at first, especially since ensuring that his customers are happy. thought that was unusual,” Tan recalls. other cybercafés had cheaper packages.” He has trained the staff to respond But, in the end, Tan and his partners to customer complaints right away. saw that the investment was worth “Because if you don’t, then expect a bad it. “Mineski already had 10 years of review on Facebook,” he says. Tan is experience, so we figured that paying happiest when the shop is packed and the franchise fee just saved us 10 years nobody’s complaining. “I’m not a gamer; of headache,” says Tan. To finance their I’m in this purely for business, but I still investment, Tan and his partners pooled want my gamers to be happy.”—Ieth Inolino their savings and took on loans. In less than a year, the gamble paid off as they were able to set up their second MINESKI INFINITY Mineski shop in Caloocan last August, (Mineski Franchise Corp.) using profits from the first branch. Tan infinity.mineski.net credits the success, in part, to Mineski’s (02) 442-2228

growing e-sports community, which [email protected] baldonado jonathan by Photos

78 december 2015 -january 2016 Entrepreneur Philippines 12/15-01/16 AFTER 6 sHINY OBJECTs

For some people, it’s not just a car. “Think

AFTER 6 of it,” a friend counseled, “as freedom.” es As the next-biggest material purchase N in your life other than a house, every car that you own inevitably has some emotional resonance. You will be able to

count the cars that pass through your life, Phili PP i MPANY each one acting as sort of a marker for touchpoints in life. The first car, which you may never forget, is a first signal of NOT JUST A CAR financial security; it is the first time you It’s one of the most expensive things you’ll ever buy. have enough money to spend on things You can’t keep it forever, and it loses value every day. other than necessities, and can spare a bit to make life a little better for yourself. And yet you still want it Somewhere along the way, something will force you to give up that beloved written by kristine fonacier first car, and it’ll probably be because Ford Motor C o Motor of Ford courtesy Photos

www.entrepreneur.com.ph/themagazine december 2015 -january 2016 79 REWARDS AFTER 6

of a welcome necessity: A bigger, more sensible car now, for a growing family. And on and on, until again the circumstances align, and you have room for a little more than just what you need. This is when you can get a car that you truly enjoy. As with all expensive interests, many people try and justify this as “an investment.” With very few exceptions, however, from a purely financial point of view, a car is a terrible investment. A new car offers especially bad returns: You just have to accept that it loses at least 10 percent of its value (and as much as The Mustang was more than just transportation. 30 percent, according to some alarmists) over its first year. That’s not even counting It was my childhood watching The Dukes of the maintenance and running costs of Hazzard over my dad’s shoulder. It was rock n’ your “investment,” which includes fuel, repairs, and insurance—which, over four roll. It was power. It was speed, and it was living or five years, can run you as much as the life. Needless to say, I wanted it. price of the car itself. A financial adviser I know likes to tell Now, I’d like to think of myself as a that gives a bit more than is sensible. There’s her clients that they should take their person who, when it comes to personal more power under the hood; there’s a little bit original budget, buy secondhand, transportation at least, is rigorously more room than you need; it occupies a tiny and put the difference into a much practical—but not immune to the bit more space in your life than any inanimate more sensible investment like stocks or enchantment of a really nice automobile. object has the right to. bonds, which can then make up for the When I bought my first car, I set “You’re going to like this,” I was told as depreciation of the car. At the very least, myself a strict budget, did a survey of the driver handed me the keys to the 2015 this approach can defray the cost of the all the current models, and narrowed Mustang that I was being loaned. “Enjoy,” car, if not put you slightly ahead. This my decision based on a small set of he winked. is all possible, she says, because of the parameters, of which fuel efficiency was I didn’t stand a chance. I turned the lower initial costs of a secondhand car the top priority. I read technical specs, key, and the V8 engine roared to life. and its slower depreciation rates; even talked to engineers, and did everything That’s when I understood what it meant accounting for higher maintenance costs short of kicking the wheels. to have a car that was more than just a and perhaps even for the inferior fuel And yet, despite all this, it all boiled car. The Mustang was more than just efficiency of an older automobile, the down to a gut decision: I can only describe transportation. It was my childhood value of a new one declines so sharply it as love at first sight. When I visited the watching The Dukes of Hazzard over my after you drive it off the dealer’s premises last car dealer and saw the sleek, shiny dad’s shoulder. It was rock n’ roll. It was that it makes absolutely no sense to think beast that was to be my first car, I felt it in power. It was speed, and it was living life. of it as an investment. my heart. Sure, it was a tiny subcompact Needless to say, I wanted it. So: buy a used car, put the savings in whose best feature was its top-of-its- Now I’m justifiying this to myself by saying a more sensible investment. I ran this class fuel efficiency. Under its hood lay a that, with a sub-P2 million price tag, it was information by another friend—let’s call nondescript engine, but its transmission, actually a good buy that could beat out some him Mike—who was at that moment I was told, was an experimental little SUVs in the market. Surely that’s not a bad shopping around for a new ride—he was machine borrowed from European race price for power and speed and life, is it? considering a new-model pony car or a cars. It was small, efficient, but it was also My friend Mike disagreed. “I’m looking tank-like SUV, either option far outside cunning and deceptively powerful. It was a at a Land Rover,” he said. “Do you know what could be considered frugal or even car that was the person I wanted to be. that’s the only car that appreciates in reasonable. On a normal day, he himself As it goes, however, fiscal responsibility value as time goes on?” was an entrepreneur who had a reputation prevailed, and upon the advice of other I told him I had never heard of that for being very careful with his money— financially capable advisors, I sold that car factoid, though he insists that it’s true. It’s perhaps, I suggested, he’d just be better before it could fully depreciate. It’s been a wise buy, even with the price tag that off downgrading in the interest of fiscal a succession of practical cars since then, hovered around the P10-million mark on sensibility. “Anyone who says that,” he each one more sensible than the last. the model he was looking at. “I took one out scoffed, “has never driven a good car.” In the interest of science, I asked to borrow for a test drive, and let me tell you, it made What is it about cars that makes what anyone would rightfully consider “a me feel…” he paused, and swept his arm normally level-headed people swoon? good car”—which means, quite simply, a car dramatically in front of him. “Powerful.” e

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of a welcome necessity: A bigger, more sensible car now, for a growing family. And on and on, until again the circumstances align, and you have room for a little more than just what you need. This is when you can get a car that you truly enjoy. As with all expensive interests, Wouldn’t you love to many people try and justify this as “an investment.” With very few exceptions, see these under your however, from a purely financial point of view, a car is a terrible investment. A new Christmas tree? car offers especially bad returns: You just have to accept that it loses at least 10 percent of its value (and as much as The Mustang was more than just transportation. 30 percent, according to some alarmists) over its first year. That’s not even counting It was my childhood watching The Dukes of the maintenance and running costs of Hazzard over my dad’s shoulder. It was rock n’ Available in bookstores, convenience your “investment,” which includes fuel, stores, and on newsstands nationwide. repairs, and insurance—which, over four roll. It was power. It was speed, and it was living or five years, can run you as much as the life. Needless to say, I wanted it. price of the car itself. A financial adviser I know likes to tell Now, I’d like to think of myself as a that gives a bit more than is sensible. There’s her clients that they should take their person who, when it comes to personal more power under the hood; there’s a little bit original budget, buy secondhand, transportation at least, is rigorously more room than you need; it occupies a tiny and put the difference into a much practical—but not immune to the bit more space in your life than any inanimate more sensible investment like stocks or enchantment of a really nice automobile. object has the right to. bonds, which can then make up for the When I bought my first car, I set “You’re going to like this,” I was told as depreciation of the car. At the very least, myself a strict budget, did a survey of the driver handed me the keys to the 2015 this approach can defray the cost of the all the current models, and narrowed Mustang that I was being loaned. “Enjoy,” car, if not put you slightly ahead. This my decision based on a small set of he winked. is all possible, she says, because of the parameters, of which fuel efficiency was I didn’t stand a chance. I turned the lower initial costs of a secondhand car the top priority. I read technical specs, key, and the V8 engine roared to life. and its slower depreciation rates; even talked to engineers, and did everything That’s when I understood what it meant accounting for higher maintenance costs short of kicking the wheels. to have a car that was more than just a and perhaps even for the inferior fuel And yet, despite all this, it all boiled car. The Mustang was more than just efficiency of an older automobile, the down to a gut decision: I can only describe transportation. It was my childhood value of a new one declines so sharply it as love at first sight. When I visited the watching The Dukes of Hazzard over my after you drive it off the dealer’s premises last car dealer and saw the sleek, shiny dad’s shoulder. It was rock n’ roll. It was that it makes absolutely no sense to think beast that was to be my first car, I felt it in power. It was speed, and it was living life. of it as an investment. my heart. Sure, it was a tiny subcompact Needless to say, I wanted it. SummitBooks_2thirdH_Entrep1215.indd 1 11/16/15 3:22 PM So: buy a used car, put the savings in whose best feature was its top-of-its- Now I’m justifiying this to myself by saying a more sensible investment. I ran this class fuel efficiency. Under its hood lay a that, with a sub-P2 million price tag, it was information by another friend—let’s call nondescript engine, but its transmission, actually a good buy that could beat out some him Mike—who was at that moment I was told, was an experimental little SUVs in the market. Surely that’s not a bad shopping around for a new ride—he was machine borrowed from European race price for power and speed and life, is it? considering a new-model pony car or a cars. It was small, efficient, but it was also My friend Mike disagreed. “I’m looking tank-like SUV, either option far outside cunning and deceptively powerful. It was a at a Land Rover,” he said. “Do you know what could be considered frugal or even car that was the person I wanted to be. that’s the only car that appreciates in reasonable. On a normal day, he himself As it goes, however, fiscal responsibility value as time goes on?” was an entrepreneur who had a reputation prevailed, and upon the advice of other I told him I had never heard of that for being very careful with his money— financially capable advisors, I sold that car factoid, though he insists that it’s true. It’s perhaps, I suggested, he’d just be better before it could fully depreciate. It’s been a wise buy, even with the price tag that off downgrading in the interest of fiscal a succession of practical cars since then, hovered around the P10-million mark on sensibility. “Anyone who says that,” he each one more sensible than the last. the model he was looking at. “I took one out scoffed, “has never driven a good car.” In the interest of science, I asked to borrow for a test drive, and let me tell you, it made What is it about cars that makes what anyone would rightfully consider “a me feel…” he paused, and swept his arm normally level-headed people swoon? good car”—which means, quite simply, a car dramatically in front of him. “Powerful.” e

80 december 2015 -january 2016 entrepreneur Philippines

1215-0116 REWARDS OPENER.indd 80 11/26/15 3:55 PM rewardS | ShinY objectS

01 Forever Young 02 currencY pouch 03 lemon curd bY braceletS bY bY dunhill olivierS & c o. charriol The perfect gift for the All you need to know is If you can’t afford to get frequent traveler has two that a curd is the more her that jaw-dropping zippered compartments intensely flavored cousin piece of jewelry (for for organizing different of the custard. In other Small currencies and, more words, it's delicious. now), win her over with a set. These are your importantly, it's small The exceptional flavor standard steel cable enough to slip into the of this fruit curd from bracelets, except they pocket of a suit, trouser, Oliviers & Co. is attributed come in a rainbow of or coat. The grained to lemons harvested hues, from fuchsia to calfskin, in a deep inky from Algarve and the cobalt to pistachio. The blue, also delivers the traditional methods used wonderS right message: The in its production (no narrow design makes Spread holiday joy with these them perfect for stacking bearer of this accessory preservatives or coloring). is sensible and elegant. Greenbelt 5. fun-sized goodies on her delicate wrists. Greenbelt 5. Rustan’s Makati.

written by CLIFFORD OLANDAY

01

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03

04

82 december 2015 -january 2016 Entrepreneur Philippines 04 aviatorS 05 timewalker watch 06 jaSmin immortelle 07 Swagger bag 08 boat ShoeS bY raY-ban bY mont blanc bodY powder bY bY coach bY SperrY Almost everyone If the trio of counters l’occitane Looking for something JFK wore it. The Official Preppy Handbook looks better wearing and the carbon-like She will literally sparkle new? Head to Coach, sunglasses. More leather strap do not tip with a few dabs of this which recently opened its endorsed it. What was specifically, almost you off about its athletic shimmering powder. first store in the country. an invention born of everyone looks cooler in leanings, then the She will also smell What to get? Only necessity (a shoe built a pair of aviators. This is sand-blasted steel case temptingly delicious—like their hottest bag, the to maintain traction on why the aviator is the gift and ceramic bezel will a blend of lemon, pink Swagger. Its structured a slippery boat deck) to give when you don’t definitely say that this pepper, jasmine flower, frame, in that modern has become a wardrobe really know what to give. timepiece is not meant and orange blossom winged shape, transmits staple for men. To give: This particular model, to be kept inside a vault, as concocted by famed formality and coolness, the Authentic Original the Light Ray, builds on but worn on the wrist on French pastry chef Pierre but what makes it really boat shoe from the Gold the timeless style with many adventures. Hermé. Also consider the desirable is the serious Cup collection. The more titanium temples for Rustan’s Makati. perfume and body lotion hardware, a double dose premium line uses the comfort and a screw- versions. Rustan’s Makati. of the fashion house’s finest leathers, memory less, mono-block hinge signature turn-lock. foam foot beds, and for durability. Rustan’s Shangri-La. anti-shock and vibration Eye Society, Makati. technology. Glorietta 3.

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www.entrepreneur.com.ph/themagazine december 2015 -january 2016 83 Business OppOrtunities Company Directory

ASSOCIATION OF FILIPINO CALATA CORPORATION FRANCHISERS INC. calatacorp.com affi.com.ph (02) 511-1701 (02) 501-5449 [email protected] [email protected]

BACK OF THE HOUSE facebook.com/backofthehouseph 0906-2695655 INDUSTRIYA MARIKINA facebook.com industriyamarikina (02) 904-8372

IDC MARKET RESEARCH PUBLIC RELATIONS SOCIETY PHILIPPINES INC. OF THE PHILIPPINES idc.com prsp.ph asean.idc.asia facebook.com/PRSPnews ap.idc.asia (02) 623-9479 NC. i

COCOLINE (COCO S HEALTHPRODUCTS INC.) KICKSTART VENTURES RK FRANCHISE t cocolinenatural.com kickstart.ph CONSULTANCY (02) 625-8723 rkfranchise.com ODUC EASY DAY SHOP (02) 912-2946; (02) 912-2973

BEAMANDGO (SUY SING COMMERCIAL [email protected] lthpr beamandgo.com CORPORATION) A facebook.com/BeamAndGo suysing.com SATISFIND he (02) 869-6414 (02) 706-8888; (02) 247-1888 satisfind.com [email protected] f COCO BOOKY MANSMITH AND FIELDERS INC. y O ph.phonebooky.com ENTREPRENEURS’ mansmith.net ORGANIZATION ur TES

(02) 584-5858; (02) 412-0034 O eophilippines.com [email protected] and c

EUROMONITOR ,

SITSIRYA SARI-SARI A INTERNATIONAL

sitsirya.com el

euromonitor.com U (02) 713-5040; 0920-9209680 [email protected] FLYING DUTCHMAN flyingdutchman.ph SOPHOS

(02) 710-9981 t C OSCO ll

sophos.com N

FOUNDER NC e MATHEMAGIS THEO + PHILO Vi INSTITUTE MANILA , mathemagis.com theoandphilo.com https://fi.co/mentors?target=manila (02) 833-7374 [email protected]

FRANCORP PHILIPPINES DONADO francorp.com.ph l BA (02) 638-3142 MILKIN CORPORATION [email protected] fiorgelato.com AN (02) 524-0384 th

FULL CIRCLE [email protected] ONA

COMMUNICATIONS , j

fccpr.ph MINESKI INFINITY e ND e

facebook.com/fccpr.ph infinity.mineski.net UNCLE TETSU CHEESECAKE U (02) 637-1116 (02) 442-2228 (02) 239-2964 local 201 q i A

[email protected] [email protected] D BUNSO ART CLOTH DOLLS GMB FRANCHISE facebook.com/BUNSO- CONSULTANTS PHILIPPINE CENTER YOUNG Art-Cloth-Dolls- gmb.com.ph FOR ENTREPRENEURSHIP ENTREPRENEURS SOCIETY 1524567604451097 (02) 532-8386 gonegosyo.net yesphilippines.org

[email protected] (02) 637-9347 (02) 225-3726; (02) 263-3233 PHOTOS by hei

84 december 2015 -january 2016 Entrepreneur Philippines

1215-0116 BUSINESS OPP DIRECTORY.indd 84 11/26/15 2:48 PM Business OppOrtunities Company Directory Franchise Directory FOOD RETAIL SERVICES INTERNATIONAL BIALETTI CAFFE AFICIONADO AMAZING LASH STUDIO ASSOCIATION OF FILIPINO CALATA CORPORATION Café, casual dining Perfumes, personal care items Eyelash extensions calatacorp.com FRANCHISERS INC. bialetticaffe.org aficionado.com.ph amazinglashstudio.com affi.com.ph (02) 511-1701 0917-8081255; 0922-8965581 (02) 740-0000; (02) 411-5455 Total cost: $246K-$404K (02) 501-5449 [email protected] Total cost: P1.8M to P2.5M for Total cost: P465K Total franchises/co.-owned: 21/6 [email protected] expanded kiosks, Total franchises/co.-owned: P3.5M for full stores 294/175 BABY BODYGUARDS BACK OF THE HOUSE Total franchises/co.-owned: 10/2 [email protected] Baby proofing, CPR instruction, facebook.com/backofthehouseph [email protected] car-seat installation 0906-2695655 BENCH BODY babybodyguards.com INDUSTRIYA ENZO’S SHAWARMA Intimate apparel CRYSTAL CLEAR Total cost: $33.2K-$59.9K MARIKINA Shawarma bench.com.ph Water refilling station Total franchises/co.-owned: 1/1 facebook.com facebook.com/EnzosShawarma (02) 777-7888 loc. 173 crystalclear.com.ph industriyamarikina (02) 585-7039; 0917-8336967 Total cost: P4.5M-P5M (02) 975-6623 BARKEFELLERS, (02) 904-8372 Total cost: P300K Total franchises/co.-owned: Total cost: P500K THE PLACE FOR DOGS Total franchises/co.-owned: 9/2 26/237 Total franchises/co.-owned: 302/22 Upscale pet hotel [email protected] [email protected] [email protected] barkefellersfranchise.com D an

PUBLIC RELATIONS SOCIETY Total cost: $938K-$4.5M ,

IDC MARKET RESEARCH m OF THE PHILIPPINES FERINO’S GAMOT PUBLIKO CUT & FIX Total franchises/co.-owned: 0/3

PHILIPPINES INC. CO idc.com prsp.ph Traditional rice cakes, coffee Generic and branded medicine Hair salon s. E asean.idc.asia facebook.com/PRSPnews ferinosbibingka.com.ph and personal care items cutandfixinternational.com BEBALANCED HORMONE g A ap.idc.asia (02) 623-9479 (02) 216-1028; 0917-8313477 gamotpubliko.com (02) 445-5994; 0936-6949977 WEIGHT-LOSS CENTERS m NC. i Total cost: P385K (02) 723-8142; (02) 727-3869 Total cost: P1.8M Hormone-based weight-loss

COCOLINE (COCO S t RK FRANCHISE Total franchises/co.-owned: 12/8 Total cost: P500K-P600K Total franchises/co.-owned: 16/4 and wellness services FREEI HEALTHPRODUCTS INC.) KICKSTART VENTURES / [email protected] cocolinenatural.com kickstart.ph CONSULTANCY [email protected] Total franchises/co.-owned: 46/5 bebalancedfranchise.com rkfranchise.com ODUC [email protected] Total cost: $87.9K-$141.2K

(02) 625-8723 ll ERO EASY DAY SHOP (02) 912-2946; (02) 912-2973 FLAWLESS Total franchises/co.-owned: 1/1

Skin care center s sI [email protected] lthpr K2 DRUG BEAMANDGO (SUY SING COMMERCIAL O A beamandgo.com CORPORATION) Generic and branded medicine flawless.com.ph BODY BY DR. MIAMI l AR SATISFIND he and personal care items (02) 586-6807 Plastic surgery facebook.com/BeamAndGo suysing.com C , (02) 869-6414 (02) 706-8888; (02) 247-1888 satisfind.com k2drug.com Total cost: P5M-P6M balharboursurgery.com [email protected] (02) 708-5299; (02) 913-7271 Total franchises/co.-owned: 16/25 Total cost: $237.6K-$495.9K f COCO BOOKY MANSMITH AND Total cost: P980K [email protected] Total franchises/co.-owned: 0/1 PORTs y O ph.phonebooky.com FIELDERS INC. Total franchises/co.-owned: 11/13 ’s s ENTREPRENEURS’ Y mansmith.net [email protected] MICROTEL INNS & SUITES ORGANIZATION ur TES

Hotel TO b

(02) 584-5858; (02) 412-0034 O eophilippines.com , [email protected] PLAINS AND PRINTS microtelphilippines.com Ladies’ apparel and accessories (02) 870-0303 and c

EUROMONITOR , Total cost: P2.5M/room SITSIRYA SARI-SARI A plainsandprints.com INTERNATIONAL sitsirya.com el FONDUE FACTORY CAFÉ (02) 372-6190 to 92, loc. 117 Total franchises/co.-owned: 7/8 euromonitor.com U (02) 713-5040; 0920-9209680 Chocolate fondue Total cost: P2.7M-P3.2M [email protected] [email protected] Total franchises/co.-owned: 31/37 FLYING DUTCHMAN fonduefactorycafe.com [email protected] NETOPIA flyingdutchman.ph (02) 531-3008; (02) 274-6363 SOPHOS Total cost: P380K for standard cart Internet café (02) 710-9981 t C OSCO ll N sophos.com package, P580K for standard TOBY’S SPORTS netopia.ph f FONDUE FACTORY CAFÉ O counter package Sporting goods, merchandise, (02) 638-6742; (02) 638-0618 FOUNDER NC e MATHEMAGIS THEO + PHILO and equipment Total cost: P2.6M for a BURRITOBOX

Vi Total franchises/co.-owned: 5/8 INSTITUTE MANILA , mathemagis.com theoandphilo.com tobys.com 30-computer branch Burrito vending machines https://fi.co/mentors?target=manila [email protected] ur TESY (02) 833-7374 (02) 651-7777; (02) 651-7753 Total franchises/co.-owned: 27/68 theboxbrands.com [email protected] OCTOBOY Total cost: P3M-P5M [email protected] Total cost: $55.4K-$62K FRANCORP PHILIPPINES DONADO l Total franchises/co.-owned: 17/45 Total franchises/co.-owned: 10/5 francorp.com.ph Takoyaki and other Japanese BA

OH MY LASH [email protected]; PHOTOS CO (02) 638-3142 MILKIN CORPORATION street food

AN [email protected] Eyelash extensions CRUMB & GET IT [email protected] fiorgelato.com octoboy.wix.com/octoboy (02) 524-0384 th (02) 359-2881; (02) 216-6568 ohmylashsalon.com COOKIE COMPANY Total cost: P450K-P500K (02) 912-2946; (02) 912-2973 Made-to-order cookies

[email protected] ONA FULL CIRCLE Total cost: P450K crumbandgetit.com COMMUNICATIONS , j Total franchises/co.-owned: 3/5 [email protected] Total franchises/co.-owned: 5/2 Total cost: $128.K-$178.5K

fccpr.ph e ND MINESKI INFINITY [email protected] Total franchises/co.-owned: 1/1 e

facebook.com/fccpr.ph infinity.mineski.net UNCLE TETSU CHEESECAKE U (02) 637-1116 (02) 442-2228 (02) 239-2964 local 201 q REDBUCK’S COFFEE SHAKES i A Coffee shakes [email protected] [email protected] D redbuckscoffeeshakes.com Note: Investment costs indicated here might be different from actual investment BUNSO ART CLOTH DOLLS GMB FRANCHISE (044) 931-7893 costs due to various reasons, such as ongoing promotions, adjustments, and facebook.com/BUNSO- CONSULTANTS PHILIPPINE CENTER YOUNG Total cost: P200K-P350K conversion rates, among others. The inclusion of any company in this list is not an Art-Cloth-Dolls- gmb.com.ph FOR ENTREPRENEURSHIP ENTREPRENEURS SOCIETY Total franchises/co.-owned: 22/4 endorsement; please get in touch with the companies concerned to make a sound 1524567604451097 (02) 532-8386 gonegosyo.net yesphilippines.org [email protected] decision about starting a franchise business. [email protected] (02) 637-9347 (02) 225-3726; (02) 263-3233 PHOTOS by hei COMPILEDANTIPORDA BY TONI

84 december 2015 -january 2016 Entrepreneur Philippines www.entrepreneur.com.ph/themagazine december 2015 -january 2016 85

1215-0116 BUSINESS OPP DIRECTORY.indd 84 11/26/15 2:48 PM Business OppOrtunities Events

SEMINARS & December 4 December 11 EXPOS MANAGE AND CONTROL INCOME TAX AND TAX WORKSHOPS YOUR INVENTORIES UPDATES & TRADE FAIRS December 1 December 4-21 Prevent excess and fraud related to Stay updated with the latest income PRODUCTION AND WORLD BAZAAR FESTIVAL inventory management. tax rulings. OPERATIONS MANAGEMENT The premier destination for your Venue: Unit 626 Tower A, BSA Twin Venue: Astoria Plaza, 15 J. Escriva FUNDAMENTALS Christmas shopping needs. Towers, Bank Drive, Ortigas Center, Drive, Ortigas Center, Pasig City 1600 Adopt lean manufacturing practices. Venue: World Trade Center Metro Pasig City 1605 Contact: Ariva Events Management; Venue: Unit 201 Richbelt Tower, Manila Building, Gil Puyat Ave. ext. Contact: Day 8 Business Academy; (02) 890-9651; (02) 895-9527; 17 Annapolis St., Greenhills, corner Diosdado Macapagal Blvd., (02) 722-2318; day8.org [email protected]; San Juan City 1502 Pasay City 1300 ariva.com.ph Contact: BusinessCoach Inc.; Contact: Worldbex Services December 5 (02) 225-6616; businesscoachphil@ International; (02) 656-9239; BUSINESS OPERATIONS January 14 gmail.com; businesscoachphil.com (02) 477-1899; [email protected]; & PEOPLE MANAGEMENT BEST PRACTICES IN worldbex.com Professionalize your operations. STRATEGY EXECUTION December 2 Venue: 1503A West Tower, Philippine Convert strategies to results CREATIVE PROBLEM-SOLVING Stock Exchange Building (Tektite), effectively. & DECISION-MAKING Exchange Road, Ortigas Center, Venue: EDSA Shangri-La Hotel, Think out of the box to better solve Pasig City 1605 1 Garden Way, Ortigas Center, problems and make decisions. Contact: The Business Maker Mandaluyong City 1650 Venue: Upon inquiry Academy; (02) 687-4445; Contact: Center for Global Contact: Salt and Light Ventures; kcbm@businessmaker-academy. Best Practices; (02) 556-8968; (02) 813-2703 or 32; inquiry@ com; businessmaker-academy.com [email protected]; cgbp.org saltandlight.ph; saltandlight.asia January 15-17 December 8 January 15 WORLD GAMEFOWL EXPO December 2 MARKETING THRU LABOR LAW UPDATES & An annual exhibition of the latest ESTATE PLANNING SOCIAL MEDIA REMEDIES products and services for the game Transfer properties legally. Harness social media for your business. Stay updated with the latest labor- fowl industry. Venue: Unit 201 Richbelt Tower, Venue: The Philippine Trade Training related regulations. Venue: World Trade Center Metro 17 Annapolis St., Greenhills, Center Building, Sen. Gil J. Puyat Ave. Venue: EDSA Shangri-La Hotel, Manila Building, Gil Puyat Ave. ext. San Juan City 1502 corner Roxas Blvd., Pasay City 1300 1 Garden Way, Ortigas Center, corner Diosdado Macapagal Blvd., Contact: BusinessCoach Inc.; Contact: The Philippine Trade Mandaluyong City 1650 Pasay City 1300 (02) 225-6616; businesscoachphil.com Training Center; (02) 468-8969; Contact: Center for Global Best Contact: World Expos & Concepts [email protected]; pttc.gov.ph Practices; (02) 556-8968; lara@cgbp. Inc.; (02) 855-8341 to 44; 0915- December 4 org; cgbp.org 6652965; [email protected]; FINANCING YOUR December 8 worldexco.com SMALL BUSINESS MOVING INTO MANAGEMENT January 20 Learn ways to finance your business. Go from managing tasks HOW MAY I HELP YOU? January 16-17 Venue: Unit 626 Tower A, BSA Twin to managing people. CUSTOMER SERVICE 101 FOR GETTING MARRIED BRIDAL FAIR Towers, Bank Drive, Ortigas Center, Venue: Upon inquiry FRONTLINERS A showcase of the best suppliers for Pasig City 1605 Contact: Salt and Light Ventures; Learn the principles of excellent weddings and other events. Contact: Day 8 Business Academy; (02) 813-2703 or 32; inquiry@ customer service delivery. Venue: SMX Convention Center, (02) 722-2318; 0917-5673298; saltandlight.ph; saltandlight.asia Venue: 3F Ateneo Professional SM Mall of Asia Complex, [email protected]; day8.org Schools Bldg., 130 H.V. Dela Costa Seashell Drive, Pasay City 1300 December 9 St., Salcedo Village, Makati City 1200 Contact: Getting Married Wedding December 4 MANAGING BIR TAX Contact: The Ateneo Center for Coordinators & Event Planners; INNOVATIVE CREDIT ASSESSMENTS Continuing Education; (02) 830-2050; (02) 671-5496; 0917-5412749; AND EFFECTIVE COLLECTION Know how BIR officials assess taxes. (02) 840-1742; [email protected]. gettingmarriedbridalfairphils.com STRATEGIES Venue: Unit 201 Richbelt Tower, edu; cce.ateneo.edu Create an effective credit and 17 Annapolis St., Greenhills, January 23-24 collection strategy for your business. San Juan City 1502 January 27 WEDDING AND DEBUT EXPO Venue: Astoria Plaza, 15 J. Escriva Contact: BusinessCoach Inc.; NEW YEAR TAX UPDATES & Stay updated with the latest trends, Drive, Ortigas Center, Pasig City 1600 (02) 225-6616; 0915-2050133 REMEDIES products, and services for weddings Contact: Ariva Events Management; Get updated on the latest BIR and debuts. (02) 890-9651; successseminars@ December 10 issuances. Venue: PICC Forums 1-3, ariva.com.ph; ariva.com.ph CUSTOMER SERVICE Venue: EDSA Shangri-La Hotel, CCP Complex, Roxas Blvd., EXCELLENCE 1 Garden Way, Ortigas Center, Pasay City 1307 Keep customers satisfied and get Mandaluyong City 1650 Contact: Weddings & Beyond; repeat business. Contact: Center for Global Best (02) 890-0179; 0915-1990538; Venue: 1503A West Tower, Philippine Practices; (02) 556-8968; (032) 512- [email protected]; Stock Exchange Building (Tektite), 3106; [email protected]; cgbp.org weddingsnbeyond.com Exchange Road, Ortigas Center, Pasig City 1605 Contact: The Business Maker Academy; (02) 687-4445; NOTE: The information on this page is correct as of press time. Please get in businessmaker-academy.com

touch with the event organizers in order to confirm the event details. COMPILEDANTIPORDA BY TONI

86 december 2015 -january 2016 Entrepreneur Philippines

BUSINESS CLASSIFIEDS

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. FROM IDEAS TO IMPACT For the fi rst time, the Hult Prize is coming to De La Salle University. Over 30 teams—composed of undergraduate, graduate, and PhD students from DLSU—are vying to compete in the inaugural run of what’s dubbed as the “Nobel Prize for Students”. Successful participants will propose solutions to a critical social problem: Crowded Urban Spaces, a subject handpicked by no less than former president Bill Clinton. Finalists will be pitching in front of an esteemed panel of judges on December 11, 2015 at the DLSU campus. The winning team will automatically advance to compete in one of the regional fi nals in Boston, San Francisco, London, Dubai, and Shanghai. The Hult Prize is an annual competition that encourages entrepreneurs to create and launch the most compelling social businesses. Winners will receive USD 1 Million in seed capital as well as mentorship from the international business community. HAVE YOU MET ANDY? It’s time to meet the newest player on the whisky block: Andy Player. Get to know Andy Player and the whisky experience it offers. You can choose new and interesting ways to take Andy—from mixing it with cola, or trying a new combination like taking with citrus soda or even coffee. Or do a classic shot on the rocks. Whatever you mix, Andy will be a surefi re hit with friends. Share your experience by using the hashtag #HaveYouMetAndy or visit HaveYouMetAndy.com. PAVING THE WAY Fred DeLuca and Dr. Peter Buck opened the fi rst Subway restaurant in the city of Bridgeport, Connecticut in the summer BREEDING WINNERS of 1965. Due to constant demand, the Francorp begins a new tradition of success through fi rst franchised shop was opened in 1974. the inaugural NxtGen in Franchising Award. Organized Subway is the largest restaurant chain in by the Philippine Franchise Association, it’s open to WELL-STOCKED the world with more locations than any business owners 35 years old and below with strong other restaurant. Since its founding, the potential to grow a franchise. The award seeks to Subway franchise system has experienced recognize the next generation of leaders in the franchise KITCHEN phenomenal growth, and has become Unilever Food Solutions’ range of industry, and support them to gain international the #1 Quick Service Restaurant chain success. Agri, an agriculture retail franchise, was the quality, professional ingredients in the world. To know more about inspire food business owners to overall winner. While the Paper Stone from Singapore, franchising a Subway restaurant, write to Beauty & Beyond from Cebu, 360 Fitness from Manila, make all dishes on any menu [email protected] or call 843-6057. appealing and delicious. They and Blu Nektar from made it to the fi nals. With work closely with businesses of over 18 years of experience in the Philippines, and 3,000 all sizes, and carry some of the brands developed worldwide, Francorp continues to world’s favorite brands, such as support enterprises to grow through franchising. For a Knorr Liquid Seasoning, Knorr free franchisability assessment, visit francorp.com.ph, Broth Pastes, and Lady’s Choice email [email protected], or call (+632) 638-3149 / Real Mayonnaise. (+63917) 835-5530. INSPIRING

ENGAGING

IGNITING

WWW.SUMMITMEDIA.COM.PH INSPIRATION

“We are targeting a more inclusive country, where Gourmet [the differently abled] can really get jobs that they are both for Good interested in and good at.” This family-run café is a service to both diners and the differently abled

hen their father, Butch, was about to retire, Ysabella “Ciab” W Canoy and her siblings Jose, Ponch, Toons, Kara, and Juz, had a family heart-to-heart about their future. “Being a close-knit family, we started talking about who was going to possibly take care of my autistic brother, Jose,” says Ciab, who is also one of the co-managers of the café. “My parents weren’t getting any younger, and we knew that one of us would eventually take him in.” It inspired them to open Puzzle Gourmet Store & Café, a safe haven where 20-year-old Jose can learn valuable work skills. And he isn’t the only one: Puzzle Café has also welcomed other differently abled trainees, who have different levels of either Down Syndrome or autism, to practice skills like how to interact with others and how to follow instructions. The Puzzle Café team works closely with the trainees’ parents and therapists during this process, and the trainees are assigned various roles in the restaurant to measure their strengths. Some are under the care of the Independent Living and Learning Center, which caters to needs of people with developmental conditions. The family-owned establishment not only serves up hearty comfort food, it also seeks to promote a special cause. Their shelves are lined with specialty foods, along with autism awareness products. With Puzzle Gourmet Store & Café, “we are targeting a more inclusive country, where [the differently abled] can really get jobs that they are both interested in and good at,” says Ciab. Heidi aquende by Photo

92 december 2015 -january 2016 Entrepreneur Philippines

1215-0116 ENTREP INSPIRATION.indd 92 11/26/15 4:37 PM INSPIRATION

“We are targeting a more inclusive country, where Gourmet [the differently abled] can really get jobs that they are both for Good interested in and good at.” This family-run café is a service to both diners and the differently abled hen their father, Butch, was about to retire, Ysabella “Ciab” W Canoy and her siblings Jose, Ponch, Toons, Kara, and Juz, had a family heart-to-heart about their future. “Being a close-knit family, we started talking about who was going to possibly take care of my autistic brother, Jose,” says Ciab, who is also one of the co-managers of the café. “My parents weren’t getting any younger, and we knew that one of us would eventually take him in.” It inspired them to open Puzzle Gourmet Store & Café, a safe haven where 20-year-old Jose can learn valuable work skills. And he isn’t the only one: Puzzle Café has also welcomed other differently abled trainees, who have different levels of either Down Syndrome or autism, to practice skills like how to interact with others and how to follow instructions. The Puzzle Café team works closely with the trainees’ parents and therapists during this process, and the trainees are assigned various roles in the restaurant to measure their strengths. Some are under the care of the Independent Living and Learning Center, which caters to needs of people with developmental conditions. The family-owned establishment not only serves up hearty comfort food, it also seeks to promote a special cause. Their shelves are lined with specialty foods, along with autism awareness products. With Puzzle Gourmet Store & Café, “we are targeting a more inclusive country, where [the differently abled] can really get jobs that they are both interested in and good at,” says Ciab. Heidi aquende by Photo

92 december 2015 -january 2016 Entrepreneur Philippines

1215-0116 ENTREP INSPIRATION.indd 92 11/26/15 4:37 PM