Budding Dreams of a Young GKonomist

Many stories have been told about people who rose from rags to riches, but few are written about the young ones who carry others in their dreams.

Mara Salvacion first saw the sun in Tacloban, Leyte on October 7, 1986. Her parents moved to Metro Manila when she was only 5 years old.  For a few years, they shared a home with her aunt’s growing family in Tayuman until her father decided to build their own house using his carpentry skills at the Smokey Mountain in Tondo.

Mara’s father Maciano worked hard daily to put food on their table while her mother Anita did what was common trade at the slum area – produce charcoal to augment the family’s income. But the smoke from charcoal-making proved to be hazardous to the children’s health and so the family decided to distribute the younger ones to other relatives, with the eldest Mara left behind.

“Kapag nag-uuling, mahirap makahinga, mausok. (When we are making charcoal, it’s hard to breathe, it is smoky),” Mara shared.

When the children were growing up, they dreaded Thursdays because it was the day of the week when they would no longer have money for food and they would end up asking from their neighbors or just endure their hunger pangs.

But through the hard work of her father, the family survived and Mara was able to go to elementary school at General Vicente Luna. When she reached Grade 4, the family were relocated to temporary housing at Road Ten, Bitas, just across her school.

“Nag-focus talaga ako sa pag-aaral.  Lagi akong umuuwi sa bahay, sumusunod ako sa mga magulang ko. (I focused on my studies. I always went home and obeyed my parents),” Mara reflected on the past.

Being a good student, Mara was granted a scholarship by the Educational Research Development Assistance Foundation which allowed her to finish high school. Through ERDA’s recommendation, Mara also became a PGMA Scholar and went on to earn a Bachelor’s degree major in Cooperative Business Management at the Polytechnic University of the Philippines.

Her family was also blessed with a permanent home at GK Paradise Heights in 2004.

“Nung pumasok ako sa GK, mas lalo akong napalapit kay Lord, especially yung pamilya ko (When I came to GK, I grew closer to the Lord, especially my family),” Mara said.

After graduation, she served her community as part of the staff that starts livelihood programs there.  She also serves as the Water Officer in their building’s homeowner’s association where she deals with all kinds of issues such as swindlers and syndicates – so brave for such a young petite girl willing to face such challenges.

In 2009, she was taken in by GKonomics International as the executive assistant of GKonomist Rose Cabrera.  Now also an entrepreneur-in-training, Mara manages Bayanihan Rentals which rents out tables and chairs during special gatherings and events.

“Dati ang iniisip ko lang yung para sa mga kapatid ko, pag laki nila matutulungan ko ba sila? (Before I was only thinking of my siblings. When they grow up, will I be able to help them?),” she shared.

“Gusto ko rin mabigyan yung family ko ng magandang buhay. Pero ngayon iniisip ko na rin yung mga tao sa community ko, yung mga tao na gusto kong tulungan. (I also want to give my family a beautiful life. But now I also think about my community, the people I want to help),” Mara said.  

“Matutulungan ko sila in a way na mapasok ko sila sa trabaho, para sila din tumulong sa iba. (I can help them by helping them get jobs, so that they can help others too),” Mara said.

Her dream of helping others more was granted when Mara received a scholarship from Spanish foundation CODESPA, providing her with training in social entrepreneurship.

Along with 21 entrepreneurs from all over the Philippines, Mara underwent educational training this year on business principles, accounting, marketing and human resources.

During the training, Mara was inspired by one of her co-participants from Mindanao whose business was marketing Tinalak merchandise and products from the Tiboli tribe.

“Nakita ko na hindi lang mayaman ang gustong tumulong, na may mga mahirap din na gustong tulungan ang kapwa nya mahirap. (I saw that not only the rich wants to help, but the poor also wants to help their fellow poor),” Mara shared.

Her work in GKonomics has exposed Mara to a very different world – the world of the privileged, where monthly rent of a residential unit equals the entire purchase price of two housing units in her building; a world where a single restaurant meal  is equal to one week of food for their family of 7 and that a price of a dress is comparable to her younger sister’s annual tuition fee. Seeing such disparity however has not made her bitter but has rather strengthened her resolve to work even harder in GKonomics as her own little contribution towards narrowing the gap between the rich and the poor.

Now armed with lessons learned from CODESPA and with the guidance of her mentor GKonomist Rose Cabrera, Mara sets her sights on growing her social enterprise.

“Pag-pinalaki ko yun, makak-employ pa kami ng marami, marami ring matutulungan. (When I make the business grow, we can employ more people and we can help a lot more),” Mara dreams. 

Her hidden talents are also being harnessed in GKonomics as she assists in other social enterprises such as the GK Performing Arts Group and Mich Dulce’s business where she helps the internationally famous hat designer find good sewers from GK Paradise Heights.

“This is the essence of empowerment in GK,” GKonomist Rose Cabrera said, “Having the poor develop their potentials to the fullest and enabling them to actively seek opportunities for themselves and their community.”  

Mara Salvacion with her mentor Rose Cabrera

With the support of the growing GKonomics family, greater things are in store for Mara and her community.

What does it take to become World Class?

Last week’s quarterly GKonomics Forum gathered some 40 social entrepreneurs who wanted to learn how to protect their products and what it takes to become world-class. Lawyers from the Intellectual Property Alumni Association and the Chief Marketing Officer of Jollibee offered their valuable insights and knowledge on how to achieve these goals.

Attorney John Paul Gaba focused on copyrights. He said that anything literary and artistic such as music and stories can and should be copyrighted. After finishing an original creation, the maker can simply place the © copyright symbol on his product alongside the date of completion. By doing so, the creator has successfully copyrighted his or her work.

“From the time you finish your work, you should stamp the copyright symbol and date of completion,” Atty. Gaba said. For Filipinos, copyright certificates of registration may be obtained at the National Library or through the Intellectual Property Rights Office with 2 original copies of your birth certificate, an accomplished registration form and payment of a registration fee.

Atty. Gaba also advised his audience to mail the work they produced to themselves. A self-registered mail of your work can confirm that the work was done by you.

“Copyright protection depends on the lifetime of the owner plus 50 years then it becomes part of the public domain,” he said.

Atty. Gaba, speaking on copyrights warned about piracy. Having helped develop the Optical Media Act, he warned that “anyone who is caught in possession of 4 unregistered CDs of the same content or 6 unregistered CDs of different content are presumed to be in the business of selling pirated CDs,” this is against the law and has corresponding penalties.

Meanwhile, Atty. Divina Gracia Pedron discussed that entrepreneurs need to protect their trademarks per jurisdiction and that enterprises doing business overseas must also register their trademarks in those countries.

“Brands are covered by the trademark law and need to be registered,” she said.

She mentioned that in the past, before 1998, Filipinos only needed to use their products as proof of ownership. However, after the Philippines joined trade organizations, businesses needed to register their trademarks.

“Trademark has value. World famous brands are protected by trademarks,” she said, adding that product packaging including logos should be registered to prevent others from using the same symbol, word or words that represent your product or company.

Atty. Celeste Jumadla, for her part, talked about patents, explaining that the government grants exclusive rights for an invention, utility models, and industrial designs for a limited period of time, usually a minimum of 20 years. These Exclusive Rights mean the right to exclude others from making, using, selling and distributing products just like your own invention without permission.

She advised entrepreneurs to exercise due diligence and to check for the state of your art first at every stage of research and development. “Do your research and check existing patents in the world even though you are not aware of it,” she said.

Dondi Gomez, Vice President and Group Marketing Head of Jollibee Foods Corporation (JFC), was the last to speak, inspiring social entrepreneurs with his talk entitled “Going for World Class.”

He began with John Maxwell’s encouraging insight:  “Desire reveals design. You’re naturally intuitive in your area of giftedness.”

Dondi believed that self-mastery is necessary to succeed in business, noting that, “God-given desire reveals design. You have a gift, follow it.” He  also advised the social entrepreneurs to “always follow your passion.”

"Identify and commit to your strengths and build that unique skill you possess,” he said. Dondi also mentioned the need for a stretch project - “achievements that prove the relevance of your strength.”

He also noted that successful entrepreneurs have the charisma to sell their vision, guided by their “mission for others,” and are able to share their dream with "authenticity, energy and empathy.”

He said that if you are truly passionate about what you do and are in-tune with your strengths and apply them; you will eventually attract mentors who will open doors for you.  These are “influential supporters who will fight for the success of your mission.”

Dondi shared the example of one of his mentors Tony Tan Caktiong, Founder and Chief Executive Officer of JFC, whose big dream is for Jollibee to become a truly global brand by year 2020 with 4,000 stores worldwide.

He is known for starting Jollibee, now the number one fast-food chain in the Philippines, the undisputed market leader who beat international fast food giant McDonald's.

While proving that David can overcome Goliath, Tony is one who will not rest on his laurels: “If you get distracted by the success of the past, it will get in the way of the success of the future,” he was noted as saying. “If we remain humble and live by the tenets of JFC, we will succeed.”

Jollibee, best known for its Chicken Joy, continuously improves its flagship product which Dondi says as key to their success. He also shared that simplicity must be at the heart of operations.  “If it’s not simple, it can’t be scalable; if it’s not scalable, it can’t be world-class.”

He added that the secret to successful marketing campaigns is to break marketing formulas while following its principles.  Having successfully launched marketing campaigns for Unilever Philippines in the past, he shared that the best selling lines are made with a maximum of seven words. “In three words, you should be able to tell me, why I should buy your product.”

He also shared that challenges are inevitable but they are necessities for innovation. “There is value in failure,” he said. Failures teach us valuable lessons and help us become better once we learn from our mistakes. “The good news is everybody who makes a mistake has to weather it through,” he said.

Dondi emphasized the necessity of courage in order to succeed. “We need to play to win.”

“What will make us win is the courage to win,” he said, “You need courage to focus. You’ve got to know who you are.”

Dondi noted that,  “Filipinos are fundamentally world-class. It can only go as far as you believe it. There’s only an absence of courage. Courage is the difference.”

“It takes more courage to be in your world, entrepreneurs. Believe,” he said.

GKonomist Pinky Velez Poe ended the Forum by reminding everyone to “always keep our poor brothers and sisters in mind” in our journey to entrepreneurship, leaving no one behind in the pursuit of progress.

“Use your time, talent and resources to benefit the community,” she said, concluding a very inspiring Social Entrepreneurs Forum on August 10 at Magallanes, Pasay City.

The Light Bearer from Laguna

I met a light bearer from Laguna. His graying hair spoke of wisdom while his calloused hands revealed years of hard work. 

Arturo Tabunda (Tito Art) generously shared his knowledge to 15 residents from GK Alaska and GK Freedomville during their skills-training last July 1.

Supported by Accenture’s Skills to Succeed Program, the 3-day training sought to teach additional skills to GK residents to help them start a livelihood. Many of those who attended the workshop were out-of-school youth and fathers willing to learn.

Tito Art, a resident of GK Landco, was asked to teach his fellow beneficiaries how to make products from stone, resin and fiber glass. 

Art, true to his name, is a craftsman who discovered a passion for working with his hands, crafting candles in particular. 

As a young man, he was curious and observant. When he saw things that interested him, he always wondered how he could make them.  He taught himself from scratch and began sculpting wax when he was 18 years old. He took inspiration from a dentist’s mold on how to make his own. Soon after, he began designing candles and sold them and it became his source of livelihood. Light began to shine in his world.

The turning point when he discovered his true mission in life was when he volunteered with Caritas Manila and visited the Bilibid Prison. A man he talked to moves him to this day. 

The man he met in prison was depressed even though was going out of the jail in a week’s time.  “I wondered why he was so sad when he was going to be free,” Tito Art reflects. “I can still remember his eyes. He did not see any hope in life after prison.”  The next thing he knew, the man was found dead inside his cell. He had committed suicide.

Tito Art was so disturbed by the incident. With the help of a Jesuit priest Fr. Vic Labao, they started the Pag-Asa sa Paglaya Foundation. The priest loaned the land beside his church to start a livelihood center - a halfway house - where the men could go once they were released. They were given livelihood as they started a new life outside prison. 

Tito Art taught the men how to make candles and ceramics to help them to start their new lives anew.

When the foundation could already stand on its own, Art went on to share his knowledge of candle-making to GK Freedomville. 

The candles produced by the residents were brought to 23 cities in the United States during the WOW GK Events in 2008 which was aimed at raising awareness and funds to build more GK communities in the Philippines.

The sales of these candles enabled them to buy the land for their multipurpose center in which a pre-school will be built. The community fund also provided for the health and education needs of the families here.

The light bearer from Laguna continued to shine his light when he came to train the residents of GK Alaska on stone craft, fiberglass and resin-making.

The plan is that the GK communities in the province will form a supply chain where they will collaborate in producing quality items for customized orders and retail.

GK Freedomville will continue to produce the candles and products made from wax. GK Alaska will make stone craft and wood products while GK Landco will make items from resin and fiberglass. The GK community in Pangil will then produce packaging for these products from recycled materials.

This emerging social enterprise, a mini-economy that does not leave the poor behind, seeks to provide sustainable livelihood through the support of GKonomics which seeks to instill a culture of productivity in GK communities.

The focus on handicrafts making or products made by hands is to help more people. With a manpower based production, 75% of earnings go directly to labor, and more families are helped as a result.

Swimwear with a Twist

Summer's here! Just wanted to share the interview I did on two inspiring young entrepreneurs,  Sawi Puyat-Perez and Liza Puyat, owners of Sun Fun and Play, retailer of export-quality swim wear. They have an outlet at the 3^rd Level, East Wing, Robinsons Galleria Mall, in Ortigas.

ALL IN THE FAMILY

Perez:  My mom went into the business of making swimwear 30 years ago. My brothers and sisters helped her with the business when she began exporting her products. That was the time she closed our local stores.

Puyat:  Sawi and I were never involved in the family business, although I wanted to have my own and do something meaningful with my life. I approached my sister because she took up business in college and resigned from her job after she got married.

DIVINE INSPIRATION

Puyat: Before I got the idea for our store, I prayed that I find a business that will provide a source of livelihood not just for me but for a lot of people. And then one day while sitting in my car an idea hit me: “Why don’t I sell bathing suits?” It’s a business I am familiar with. 

THE ‘SPF’ FACTOR

Puyat: We wanted a catchy name for the store that would also highlight the sun protection factor our products provide. The fabric we use for our bathing suit has a built-in ultraviolet ray protection. One already gets 50+ the UV protection just by wearing our swimsuit.

Perez: Since we started this business, we’ve discovered that swimming is a yearlong activity. We’re surprised to find that people go swimming even in the cold months of October to December.

QUALITY AT A LOW PRICE

Perez: We want to offer very affordable yet good quality swimwear. People are usually shocked when they look at the price tag because we don’t scrimp on quality. They’re the same products we sell abroad.

ONE-STOP SHOP

Puyat: Our store is a one-stop shop for the family. We carry items for men and women of all ages. We even have a line for plus-size women. We offer men’s board shorts and trunks, protective rash guards (skin tight shirts) for kids, swimwear with long sleeves for those who are averse to tan lines, one-piece suits with sleeves for kids, as well as suits for swimming lessons and competitive swimming.

VALUE FOR MONEY

Puyat: The buyers are getting the latest in designs and the best in sun protection from our store. We can offer the best prices because we keep our markups low and we get the best deals from our suppliers.

Perez: We concentrate on selling volume rather than put a huge mark up on a few items.

SLOW AND STEADY

Puyat: We are very conservative when it comes to expanding the business. Branching out too fast is like having too many babies and not being able to take care of all of them. We want to be hands-on so we can give good service.

Welcome to the Digital Age

Just came from an interview with a wonderful professor at the Asian Institute of Management for a business article I am trying to write. I remember looking for mini-cassette tapes yesterday to use in my Sony recorder but the stores had none. Perplexed and confused, I realized it had been quite awhile since I tried buying a tape, more than 5 years perhaps. I've gotten used to recycling old ones which are now worn-out from hearing far too many voices.

An old soul when it comes to writing, I still love to record thoughts in longhand (trying to preserve the art of scripts in an age of fonts), I decided I would recycle another tape and hope for the best. It turns out that even tape recorders have to retire. Especially when it zonked out in the middle of an interview and could not be revived, while the kind professor considered lending me a tape from his old archives. Had to rely on the best recorder of all, the mind,while writing fast to capture his thoughts.  It was time for my dependable companion (the manual recorder) to take a much deserved rest.

This entry is an attempt to record a turning point in my life from a seemingly simple day. Walking out of the university, I decided right there and there I would buy a digital recorder.

I know it's not an earth-shaking realization but to me it was :) I am normally a cheapskate when it comes to gadgets, but today was a day I tried something new without thinking too much of the cost. As the good professor would say, "Invest on the right tools so you can improve your capacity," a business advice that is also applicable to personal concerns.

So what little savings I had, I decided to invest today on a tool which I hope will help me become more productive. I bought it already without regret.

So, I welcome myself properly today to the digital age.  Although I use the internet quite a lot, I'm still technology-challenged when it comes to a lot of gadgets. There is a lot to learn. Have to remember though that it is just a tool, what matters is what I do with it, and to use it well so that we recover the investment, so to speak.

They say, when you enter the digital age, there is not turning back. In a way, it is quite an advantage to be delayed in jumping on the bandwagon because the price becomes lower after a while, new gadgets having a fast turnover, getting replaced by new and improved versions. Sometimes, it's great to buy when it's no longer the fad. As you know, the lesser the demand and the higher the supply, prices go down. As to why one would buy into a fad is another question. I believe it's good to buy what you need, and not scrimp on quality, because it saves you more in the long run. Some things, "wants" as they are called are okay to simmer for awhile. Good things come to those who wait. But also it is best to know when to act.

Suffice to say, I love my digital recorder :-) maybe a laptop, next time?

How do you make fish sleep?

Boni Comandante Jr. made the discovery of his life in 1987 while studying sex reversal of groupers or lapu-lapu in Palawan. Once he inadvertently left some fish in an ice bucket at night, and the next morning he was surprised to see them alive. “The day I saw the fish, I saw dollars in my hand,” he says.

Intrigued, he began experimenting on fish hibernation to develop an anti-stress solution called buhi (Visayan word for alive) blend, which conditioned fish to sleep. “What happens to the fish is that you slow down their metabolism so they consume less oxygen and spend less energy,” he says. “You then have a few hours to transport them without water and still keep them alive.”

Comandante tested his invention in 1989 by transporting live fish to Hong Kong for 12 hours without water. The fish reached their destination alive, but he kept the technology to himself until he could back it up with scientific evidence.

He got sidetracked for 14 years until he discovered the Coastal Resources Management program of Silliman University and presented his invention for his master’s thesis in 2003. The same year, he entered his invention in 1st Negros Oriental Business Development Foundation Innovations Awards, where it won the grand prize of P50,000 as seed money.

Comandante then approached Silliman university economics professor Wilma Tejero to develop his technical paper into a business plan. Eventually the Department of Trade and Industry introduced partners Comandante and Tejero to Dumaguete City entrepreneur Edward Du, who offered P2 million to finance their venture. On June 8, 2004 the partners launched their technology for transporting live fish without water under the company Buhi Marine Worldwide Supply Inc. with a starting capital of P5 million.

Initially, Buhi Marine offered its technology as a franchise to local government units in Negros Oriental, and Bais became the first municipality to acquire its franchise for P150,000 for five years. The company started buying freshly caught fish at the Bais fish port at double their market prices to help the fishermen. It then supplied the fish to the local wet markets and to some restaurants in Metro Manila.

“For every kilo of fish that we buy, we give P2 to the municipality,” says Tejero. “They can expect to recoup their investment in less than two years.”

Comandante says local fish traders could save up to P10 million in shipping costs annually and ship more live fish than the 300 tons they transport each year from the Visayas and Mindanao to Manila by eliminating water, which accounts for 75 percent of their shipments’ weight. (They could also do away with the 10 percent mortality of fish shipped in tanks, because all the fish transported using Buhi Marine’s technology are said to survive the journey.) International shippers could save about $248 million form the 55,000 tons of live fish that they ship annually.

Buhi Marine started receiving proposals from foreign investors after it showcased its technology in a trade show organized by the Center for International trade Expositions and Missions. Later, two Australian investors offered, and Buhi Marine agreed, to form Buhi International to offer the franchise abroad. “It is one of the most innovative solutions for this decade,” said Australian investor Gavin Wilson. “It’s revolutionary – like the invention of the motor. We want to take it to the next level by offering the best service for this product to the world.”

Wilson and his partner pledged to invest $4.5 million in the partnership and discussed the possibility of shipping live tuna without water. (Comandante says he has tested the technology on several fish species including bangus and tilapia and succeeded in stretching their hibernation to 24 hours from 12. he has also tested his technology on prawns and oysters, which “slept” for 12 and 48 hours, respectively.)

Comandante and his partners will soon set a plant in his native Siquijor to train 36 technicians, who would later be assigned to help franchisees. He has also applied for an international patent for his technology in Geneva. “The technology and we supply the technicians to apply it. We call it a black box that only Filipinos can handle. We want to take advantage of the technology so we can supply Filipino technician worldwide.”

In March 2005, Comandante became the first Filipino to win in San Francisco, in the 7th University of San Francisco Business Plan contest, where his invention placed third and bested 150 entries from 18 countries. Still, getting people to accept his invention had once been a challenge. “Some people thought I was using drugs,” he says. “I kept telling them that the compound that triggers fish hibernation was actually naturally occurring. It was out there at sea. You just had to use it.”

He had his moment when specialists at the Bureau of Fisheries and Aquatic Resources studied his technology and then pronounced it safe. “Now I can present the idea to people without them thinking I’m crazy,” says Comandante who has completed his doctorate in marine biology at Silliman University in Dumaguete: “If it’s a gadget you invent, people will see it; but for ideas such as this, you need a scientific basis. That’s why I went back to school."

Franchising ABCs

I attended a franchise trade show last Saturday (September 20) sponsored by the Association of Filipino Franchisers and it reminded me again of my dream of starting a business...to have the chance to live life to the fullest and be a blessing to others...

How do you know if franchising is right for you or you're better off starting on your own? This question led me to a story I wrote two years ago for a local magazine focused on parents, the ideas are still very much relevant today. Hope you will learn as much as I did...

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Increasingly more couples are planning to have their own businesses to secure their growing family and ensure a good future for their children in these trying times. But few realize that having a business is like having another baby. It must be nurtured and attended to with its growing pains, parents who know what it takes to care of children can also understand that the rewards of a business if handled properly. With great risks and hard work bears much fruit not only materially but psychologically as well with the peace of mind that comes with financial freedom and the joy of doing what you love.Yet some don’t know where to begin or can’t figure out what they would like to get into.

For Marvey Mariño, father of two boys, ages 3 and 5, buying a franchise was the way to go.“ I did not have time to ‘invent’ a new business and experiment along the way. I was in a hurry to recover my investment and make a profit since at the time my wife and I were expecting a child,” he shares. He relates having found a good location in Batangas city even before he knew what type of food franchise he would get into. He would stand across an abandoned structure in the middle of a commercial intersection at P.Burgos street , daily observing countless workers and students passing by the area that also became a favorite route at night coming home from gimmicks and parties. Going with his guts, he wasted no time depositing money to secure the lot.

And then began his search for a 24-hour food business that will serve his market and finally bought a Goto King franchise with his sister-in-law who invested additional capital. That was in 1999, and he hasn’t looked back since then because his instincts have been right. Now, his store has the most sales among Goto King franchisees in the country today.Robert Trota, president of the Philippine Franchise Association says buying a franchise business is more beneficial than putting up your own from scratch.

“When you buy a franchise, you don’t need to reinvent the wheel. Instead of developing your own business system, you just need to use theirs, which is already proven and tested.” He says the benefits are immediate because you already have an established brand and therefore a guaranteed market. “If you follow the procedures already set, in most cases, your franchise will already be successful,” he adds.

Indeed, research has shown that most franchised businesses have higher chances of survival and success than developing a new business since it already has a working blueprint and has gained a loyal following with its recognized brand. Even banks are kinder to grant loans to franchisees rather than entrepreneurs with new ventures since they are backed with an established company’s history and track record. Mall owners also prefer to have tenants with recognized and reputable brands, usually franchise companies, to attract more customers. To get a franchise for a business means you are actually buying the business system a company which works for them.

You will benefit from the lessons they have learned and their technology and skills along with valuable information that have made them successful, knowledge they will transfer to you. You may get a franchise business anywhere from P50,000 to P25 million depending on your budget and the type of business concept you want to get into. You can choose from low, middle and high cost investments. Aside from what interests you based on your personality, skills, and preferences, the capital is usually a main consideration in choosing what franchise to get.

Low-cost franchises would include kiosks and stalls such as those offering potato fries, soft serve ice cream, cell phone cards and accessories while the more sophisticated and capital intensive franchises include your fast food joints, coffee shops, casual dining restaurants, and clothing retail stores among many others. The PFA alone have 150 members having a total of 800 business concepts. Franchisees usually give a franchise package which include the use of their trade name and logos, store design and layout, equipment, uniform, initial inventory, recruitment assistance and training, use of operations manual and pre-opening assistance.

Be sure to ask for the total investment required to set up shop, which is different from the franchise fee you pay up-front for the use of their system. The franchiser requires you to write them a letter of intent, fill-up an application form and send directions to your proposed site. Be ready for a location visit and personal interview with you to assess if you are fit to be a franchisee. They may decline your application if they see that the location is unsuitable, have a lack of resources or lack of skills in running the business.

Your values and character are also a big consideration as well as your enthusiasm, commitment and passion for the business. “It goes both ways. You and your franchiser want to make sure that your investment will not go to waste,” says Trota. The relationship of a franchiser (one who owns the business) and a franchisee (the one who buys the business system) is comparable to marriage. You and your franchiser must have the same vision and values that prevents a strained relationship.

“Divorce is very hard. With legal battles, it is not going to be good for both of you. The brand is going to be affected as well,” explains Trota. So, one must be very sure first, before taking the plunge by doing your home work and asking the experience of fellow franchisees who are in the business you want to get into. Although you have an option to sell a franchise if you want out and the franchiser has the first option to buy it or have another buyer to run it, both parties always hope for the best in the beginning of the relationship and expect to stay for the long haul, usually the franchise terms have a minimum of three years to as long as 24.

When you finally tie the knot with a franchise agreement, be sure to read it even if it’s 30-pages long, to make sure you understanding everything before the franchiser can start transferring his knowledge and system to you. Because it is up to you to grow it, with the support of the franchiser who receives royalty fees or a percentage of sales which he in turns invests into marketing campaigns and advertisements which translates to more sales for you.

A good franchiser should be able to give you continuous training, guidance and support in the duration of your business relationship. Bards Montanido, owner of Chicharific by J.E.E. Lapid, now with 12 franchisees, says having a franchise does not necessarily guarantee success. “You have to nurture it also to make it grow. Para ring anak iyon, you also have to take care of it,” says Montanido. “It’s so easy to put up a business. It’s hard to sustain,” says Trota.

Although franchises offer you better chances of success, the hard work is still up to you.

Montanido shares that her franchisees can except to recoup their investment of P200,000 at an average of 8 months, but her franchisee in Baguio city’s Session Road recouped their investment in just two months. The franchiser is also a big brother or sister you can go to when problems arise. “We can tell them what to do since we’ve been there,” explains Montanido of the value of experience. With a proven system in place, franchisees do not have to go through trial and error and the possibility of making mistakes are less. However, some people are simply too creative to be bound and limited by a system and will probably not make good franchisees.

“Some entrepreneurs would want to create their own businesses and control the direction of their companies rather than follow the standards of the franchiser,” explains Mariño. Creative people may be able to work better putting up their own businesses where they can have more freedom.Having a franchise can have its side-effects too. “The more obvious disadvantage is having couples fight or spend a lot of time in the business and neglect the kids,” says Trota. Mariño admits that the first two years of his business was very difficult since he was really working at the restaurant on a daily basis.

“Eventually I re-organized my priorities and put time with the family on top of the list,” he says. Now that he has learned to delegate operations and has empowered to make decisions when he is not around he says, ““I have more time for family and more time to pursue other interests like other businesses.”

He also takes his young children to Goto King to say hello to customers that can help develop their people skills and tags them along when going to the bank to teach them values of proper handling of money.For Oscar and Gail Santos who owns a Max’s franchise in Olongapo and SM Marilao expanding their family business through a franchised restaurant has been a good decision. When they opened their store, all the children who were studying in Manila came home to help. “It was a family undertaking,” they say.

Two children are now assisting them with their business particularly in handing the technology side and have been given management reins over the family’s donut franchise. “We have grown closer now that they take part in our business.” Santos says the secret for a harmonious relationship in business is harmony at home. Max’s Restaurant which require a larger investment, with a franchise fee of P3 million and a total investment of P10 million to P20 million, observes that 12 out of their 30 franchisees thus far are wife and husband tandems who complement each other.

They are able to balance their time for business and accommodate the needs of a growing family by managing their time well. “You can schedule in the way that would fit you best. As against working professionally, you are dictated with the company’s policies and time,” says Trota.
Montanido agrees and believes that as long as “you can manage your time properly, you can have quality time with children,” says the single mother of three.

The key is to prioritize, schedule the needs of the family and the needs of the business and stick to it. Parents who want to go into business together must also share responsibilities and complement each other. The Goto King franchisee advises that if you are planning to buy a franchise, make sure you do your homework and research. “Look for reputation, quality of product or service and support,” he says.

For the franchiser’s part, they have to make sure that prospective franchisees like what they are getting into. “My first question is, Do you really like chicharon?,” says Montanido. She also advises that they ask other franchisees of their experience to learn what the business is. You must also have clear plans on who and how will the business be managed. Ask your self if you can live with a prospective franchiser’s business system- which has been proven—even if you don’t fully agree with it. Remember that once you buy into its franchise, you can’t stray from its established rules and procedure.

Make sure also you have the money to invest in the franchise and if it is better for you to have one than put up all the expenses it will require for your to put up and run your own business concept. Taking out a loan will help you cover all you initial expenses but it will also add up to your costs and affect your returns.

Trota says, the best time to scout for possible franchise business is in during the annual franchise show held every July where you can get as much information you need from franchisers who join the exhibition. While you wait for this, it’s best to start your business with your own savings while you are working. “Maganda rin talaga yung nagtrabaho ka muna sa iba, it helps you learn, how to take care of your own people,” Montanido says.

Look for a franchiser with the same goals and values as yours, one who is committed, dedicated, and adheres to quality standards and seeks to continuously improve his business. And when you do find the perfect match: “Go into it wholeheartedly. If you find out that you like it, it would be a very successful business. You’ll be able to share it with your kids,” ends Trota.

Shopping for the right franchise?

It is best to ask from recognized associations like the 10-year old Philippine Franchise Association that include local and international franchisers as members, and the Association of Filipino Franchisers composed of local and home-grown businesses.

Search their web sites at the http://www.philippinefranchiseassociation.com/ and http://www.affi.com.ph/ for a listing of your preferred concepts or call PFA at (632) 687-0635to 67 and AFFI at (632) 873-8435 and ask for a list of legitimate franchises and their contact details. Their members undergo a screening process before they can join. This will secure your self from fly-by –night franchisers. Good luck!