Why I Think You Shouldn’t Do Business with People You Love. September 15, 2008
Posted by mona in : Business, Personal , add a commentPeople usually say, you must pick a business that would be enjoyable for you so as to ensure success. Well, I used to think that it would be so much fun putting up a business together with my friends. It’s like rolling business and pleasure into one. Yeah, we’d have lots of time to hang around and have a ball. Like it would be so much more exciting planning how we’ll be spending our glory days in some far away land sipping pinacoladas under the sun once the business starts running smoothly.
Well, that point of view, of course, has changed over the years. And boy, am I glad I never opted to go into such partnerships! And if, like me, you put more premium on RELATIONSHIPS (whether they’re family or friends) over MONEY, I’d say you read on and try to see how things really work in the real world.
These are the top three reasons why I decided not to do business with friends and relatives.
1. Commitment - Even if you jive well together, it doesn’t necessarily equate to all of you having the same level of commitment. There will always be the issue of who did more work for the business.
Say for instance you guys decided that having you own spa would be cool. So each of you decided to put in equal amounts of money as capitalization. There would be some who are just so into it so they put in a lot of effort in planning, researching, sourcing, marketing, etc. There would be others who are into it only because they’d feel left out if they didn’t join. Still there would be some who join but don’t always have the time to put into the business because of a lot of reasons. And there would also be those who would just sit and watch everybody else do the work.
Sometimes, no matter how hard you try to divide the tasks equally among yourselves, it doesn’t always get done equally and up to par to everyone else.
2. Discipline - The hardest part would always be telling your friend, your sister or your relative that he is not doing his job well and to exact punishments for wrongdoings. If your friend is always yakking on the phone all day instead of working or if your sister always comes in late or if your uncle is always sleeping on the job and you don’t try to even call their attention to it, it would trickle down to your other employees. Why punish them for being late when your sister does it? Why scold them for unfinished reports when your friend isn’t even doing her job?
3. Money - Each one of you is different. Some have time to spare. Some don’t. Some have the skills. Some don’t. Some have the patience. Some don’t. Even if all of you spend eight hours in the office everyday, your outputs will always vary.
So who gets paid more?
I have never tried getting into business with friends. And I no longer have the intention to. I have seen some very good and tight relationships ending in fierce squabbles about business because of the reasons I’ve stated above.
I’m not saying there’s no way around it and that doing business with friends would just end up in total disaster. Maybe there is a way around it if you’d sit down and discuss these issues beforehand and try to come up with a compromise that would work well for all you. But one thing’s for certain. It’s going to be one tough ride that would certainly test you to the very core of your beings.
As for me, even if there’s a way around it, I wont. My relationships are just to precious to risk for the sake of money.
Are Philippine Banks Anti-Entrepreneur? August 25, 2008
Posted by mona in : Business, Personal , 6commentsLet’s face it. The toughest problem when starting a business is the money needed to run it. Although I have suggested in an earlier post several ways to remedy the situation, I notice a lot of people finding it really hard to approach banks for loans. That, of course, does not exclude me.
My friends from the US tell me that even the jobless people there have credit cards and can easily apply for loans. Here in the Philippines, sometimes opening a savings or a checking account or placing money in a time deposit makes you feel like going through a needle’s eye.
Let me share a recent experience.
There’s this one bank that opened near our house so I was thought maybe it would save me a lot of time and gas to just transfer our accounts there. So, I went and inquired.
First up were my children’s savings accounts. I told the new accounts clerk that my kids (ages 9 and 12) will be opening a savings account. So, she rattled off a list of requirements. I was quite prepared for everything except for the 2 VALID IDs. I asked her if the school ID would suffice (as I failed to bring their passports with me). She stressed that the bank requires TWO VALID IDs. Whaaaaaaaaaa? Is she crazy?!!! I really wonder how the banking industry can really promote the value of saving to the Filipino youth with THAT requirement. For one, not all kids have passports. They don’t have driver’s licenses or gun permits or social security or tax account numbers!!! Gosh, they’re just kids! 
Next up were my business accounts. Lo and behold, the new accounts clerk told me that in order for me to open a checking account, I needed to have a savings account with them for at least 6 months with an average daily balance of no less than 50,000 bucks!!! And as a welcoming remark she told me “Ma’am, let me remind you that we charge a lot for bouncing checks.” How warm. How welcoming. Gosh, I felt like a criminal! Grrrrr! @#$#$%#&^%$%^$%#$!!!
And believe me, that happens in MOST banks here. You need to have someone REFER or sort of GUARANTEE for you before you can open an account. So what if you have a really good business that needs funding but you simply lack the “person who will refer or guarantee for you”? Do you simply set that business aside?
It’s tough how sometimes “small-time entrepreneurs” like me are being treated like trash in big banks. I don’t suppose they give the same kind of welcome to their big-time corporate clients. No wonder a lot of people are turning to getting loans from the Indian nationals who charge whopping interest rates!!!
Though there are really scrupulous characters around, heck, what’s the credit investigation for? They don’t even bother to check if you’ve got a good record with credit card companies or if you’ve ever issued a bouncing check in your life. Nope, they don’t do that here. You simply get that rejection upfront - even if you are just inquiring.
Are Philippine banks just for millionaires and for those who have average daily balances of no less than 50grand? Oh well, no wonder more and more Filipinos are at a complete loss when you talk to them about putting money in UITFs or even time deposits. All they ever know of banking is their ATM payroll account that don’t even earn noticeable interests.
I believe there are still a whole lot more of honest individuals who can make a difference in this country’s economy if banks would be more accomodating to small business people (and to kids as well). A lot of potential is being put to waste simply because these people aren’t being given the chance.
More Filipinos are Earning from Home August 19, 2008
Posted by mona in : Business , 5commentsHeard it on the news the other day. As the rate of unemployment rises in the country, more and more Filipinos are getting into home-based businesses. Whether it is as simple as putting up a sari-sari store or going into multi-level marketing or direct selling or getting into high tech businesses like home-based call centers or internet based online tutorial businesses, Filipinos are slowly finding their way towards self-sufficiency.
However, it is still a question of “How long can they make the business last?”
Aside from financial illiteracy, there are other factors which contribute to the failure of a business venture.
According to www.home-based-business-opportunities.com:
“The number of people failing with these opportunities is significantly larger than those who succeed. The major reason contributing to the fact is that because of low entry costs and the huge claims made by these programs, many people join at impulse only to find that running the business, like any real business takes whole lot of work! Other factors that contribute to members failing with business opportunities can be:
1. Catering to a dying or over saturated market. Upon signing up, the members may find that they are competing with already settled big players in their neighborhood or their prospective customers might have already been approached with similar proposals earlier.”
(Mona says: It always pays to be “the early bird.” Sometimes, people hear of a good business idea but they tend to wait for a friend or a relative to try it out first before going into it himself. By that time, a lot of people have already entered the scene so they only get the “crumbs”. This is true not only for MLMs but also for any type of business. It is so common to see the same business like internet cafes standing side by side and competing neck-to-neck with each other. It is the early players who usually get the prime spots and who have the advantage of having a larger share of frequent customers. And having been there “first” also means they had the advantage of earning loads of money before any competition went into the picture. In cases like this, one has to try harder to STAND OUT from the rest by offering better service or other things the competition does not have.)
“2. High priced products/services. Customers may not be willing to part their money for high-priced products when they can find equivalent low-priced products in the market. Or the quality of the products may not justify its steep price.”
(Mona says: Know your target market well. Be sure you are where your market is. Simply put…A high-end boutique would not sit well in a low-class mall.)
“3. Limitations on marketing methods. The business opportunity may not flexible enough to allow their members to express their creativity by allowing them to employ their own approach to market the products.”
(Mona says: This is so true for food franchises as businesses like these come with a manual and a fixed set of rules. Inasmuch as one would like to make his franchise compete aggressively with those around him specially in terms of pricing, he is restricted by these rules. However, if he can defend his stand about the need to apply such changes not only for his outlet but also for the other franchisees I don’t see any reason why the mother company wouldn’t change the rules. Even giants like McDonald’s implement changes to their menu or to their company colors to suit a particular country’s culture and taste.)
“4. Lack of support. The members may find their mentors too busy to help them get started and may get overwhelmed due to lack of support and mentoring.”
(Mona says: If support won’t come to you, then you better get out there and look for it! There are ways ( and there will always be ways) to get your business going. One of them is to never stop learning. You can learn not only from mentors but also from books, from other people’s experiences, from your personal experiences, and heck, you can even learn from your own imagination!)
“5. Illegal operations. The business opportunity may not confine to state laws and local zoning regulations and may shut down after some period of operation.”
(Mona says: If you want something to turn out right, you’ve got to start it right. Make sure that all the legalities are in place - from paperwork to fire safety standards. There’s more harm in trying to go against the rules when it comes to this one.)
“6. Over exaggerated claims. The members may find that the claims were larger-than-life and the facts may be bitter to digest.”
(Mona says: Okay..okay…As a consumer, I have been a victim of overexagerrated claims one too many times. From diet pills all the way up to real estate and college education plans. If you think it’s too god to be true, then it probably is!)
“7. Other aspects from members side like lack of marketing know-how, lack of record keeping, lack of management competence and lack of financial management.”
(Mona says: In my opinion, no business can ever go on autopilot. In business, one has to move, make his lists and make things happen.)
“Doing proper investigation and research and restraining from joining on impulse will ensure your long term success with the home business opportunity you decide to join.”
When is the best time to start a business? August 12, 2008
Posted by mona in : Business , 9commentsI just talked to a friend who’s been slaving away for one company for the past thirty years. (Yes, folks, he’s got loyalty awards to show for it.) He’s looking forward to availing the early retirement program being offered to employees who have long served the company. He says, aside from paying off all his outstanding loans, he’s dreaming of putting up a business with the money he is going to get.
The problem : He still does not know what business he wants to get into.
The bigger problem : Because of that, he sounds quite skeptical to risk his money because it might not work out.
The biggest problem : What will happen to a 49-year old man with no business, little or no money and no job?
In my opinion, getting into business should never be pushed off as some sort of a “retirement plan.” Correct me if I’m wrong, but shouldn’t one who “retires from work” be relaxing and enjoying life?
If these people think that starting a business is easy and relaxing, I hope and pray they know what they are really talking about. Isn’t it more logical to think that one must take advantage of his youth and start early so that when he reaches a certain age, he can “really retire and enjoy life”?
After that meeting I found myself thanking my lucky stars again that we went into business early on in life. At 25, I know we weren’t really all that young and fresh. But we still had room to make mistakes, learn from them, get back on our feet and start all over.
As for my friend…I wish him all the luck! 
It pays to procrastinate…sometimes. August 12, 2008
Posted by mona in : Business, Personal , add a commentAcross race, gender and age, procrastination or putting things off for tomorrow is looked upon as a bad habit. We were always taught to do things NOW.
However, I never really knew that there will come a time when I’d be looking at procrastination differently.
We’ve wanted to buy a new car since last year to replace our five-year old pick-up truck. Thank God, we kept putting it off! The entire business community has been wracked by the global crisis that sales have also gone down for all our businesses. It would hurt to pay off the monthly amotization of car with this scenario. To top it off, the price of gas is just soooooooooo high now in this side of the world that we can only use the car on very important and skillfully scheduled trips.
Okay, so we don’t have the new car. And I thank my lucky stars for that because we found two new outlets for our food business and we can use the money we’ve saved up for the car to put it up! That would mean additional income for us!
See, there’s good in putting off buying some things…even if they’re on sale for a limited time only!!!
What’s stopping you from going into business? 4 - The Scaredy Cat with Two Gods August 12, 2008
Posted by mona in : Business , add a comment“I can’t concentrate on putting it up and going into it fulltime because I’m scared of losing my regular paycheck.”
So, we’re talking about risks now. Everything in life is a risk. So, doesn’t it ever cross your mind that staying employed is as risky as going into business? Believe me, it is. How many companies have closed shop due to the global crisis? You are only as good as you’re boss thinks you are. Once a new and more aggressive one comes along, you’ll be relegated to the ranks of the “retirables.” So you’re out there battling it out. But who gets rich out of your efforts? Who gets to sit back and enjoy the fruits of your labor as you try your best to outdo the others in the company? Oh, sure, you get a piece of it when you get a commission or a bonus that you can blow off with one grand vacation with your family.
So, is that really all you’re worth?
If you think not, then read on.
If all the hesitation to start that business comes from the toss-up between staying employed and going into business fulltime, you’ve got to understand that you can’t be serving two gods. What if you’re boss asks you to stay overtime and at the same time you are having an emergency situation in your “part-time business”? Who do you follow – your boss or you? Ultimately, one has to give in.
Going into business means you have to make a choice. There’s little room for gray areas. You’ll never get anywhere if you always play it safe. It’s like you’re neither here nor there. At some point in your life, you’ve got to make that leap of faith. And to do that, you’ve got to know and believe in yourself.
What’s stopping you from getting into business? 3 - The Clueless August 12, 2008
Posted by mona in : Business , add a commentOkay, to continue the discussion on what’s keeping people from starting their dream businesses…
This isn’t really about the people who don’t even have the ability to find out for themselves the how to’s of registering the business and making everything legit. But I’ll attack it just the same. Gosh! People who make THAT a problem are either lazy or stupid or both and don’t really stand a chance of making it as entrepreneurs. If one can’t even muster enough strength, self-confidence and what-have-you, to make a call or visit a government agency by himself and find out, I really wonder how in the world he’s gonna get his clients.
So going back…
What this is really all about is the inability of the person to know exactly what business to put up. All they have in mind is “it’s gotta be something that’s gonna make me a lot of money.”
We all want to be rich. Fine. Problem is, some people are just so totally clueless in the dream business that they’re planning to up. They just read or heard somewhere that Mr. X or Uncle Y is already a millionaire by putting up a Z business. And they come up with the conclusion that:
IF Uncle Y or Mr. X + Z Business = Millionaire,
THEN, Me + Z business = Millionaire…
Haha! 
How we all wish it were always that easy to say that if he can do it, so can I!
What they plainly missed out, intentionally or unintentionally, are the variables in between that would make Uncle Y or Mr. X equal or not equal to Me.
In choosing a business, you never start with the money that you want to have. Treat that as some sort of a “given goal” for everyone. Heck, who wants to start a business and not make money?!!!
You always start with what you know, what you can do well and what you enjoy doing. It’s that simple, really.
A diving enthusiast can put up a dive equipment shop and offer diving lessons. A person who enjoys surfing the internet can find business opportunities online. There are a zillion ways to earn while having fun. You just have to really know yourself!
What’s stopping you from going into business? 1 - Lack of Capital August 12, 2008
Posted by mona in : Business , add a commentI’ve often come across people telling me how much they want and need to start their own businesses. And I always ask “So, why don’t you?”
Topmost on the list of reasons why people can’t start their business is the LACK OF CAPITAL.
Some have really great business ideas that remain just that - IDEAS - because they don’t have enough personal financial resources to make them happen. Some are afraid to apply for bank loans because they lack the multitude of “necessary documents” for such loans in the Philippines. Others have bad credit standings with banks and lending institutions so they wouldn’t even dare try and show face. So they simply stop there.
They fail to look beyond that problem to think of more creative ways to make their dream businesses come true…I’m not rich and I’m no business guru, but over the years, I have learned how to deal with the “happy problem” of making money out of other people’s pockets…
Here’s how:
1. The Power of Family, Relatives and Friends (FRFs)
People have a tendency to shy away from FRFs when money matters are involved. You don’t simply approach relatives, family and friends and say “I need to borrow half a million from you to start my dream business.” Haha! Tough luck!
Most of the time, these are the people who want and expect their capital to come “only from one source.” Unless you belong to the circle of the rich and famous, you are facing a blank wall here, kid! You must keep in mind that FRFs can help a lot in “pooling” enough funds to kick off the business. A little from A, a little from B and some from C can spell a lot of difference.
2. The Power of Downpayments and Progressive Billings
Believe it or not, there are times when you can make money without having to shell out from your own pockets. You don’t simply turn a client away because you don’t have money. It’s like flushing a great opportunity to earn down the drain.
Downpayments are always a must for us. You simply have to learn how to manage it. Scheduling purchases and limiting personal drawings is key. Talk “terms of payment” with suppliers.
Sometimes, when the downpayment is not enough to cover for the expenses to finish off the project, you have to talk to the client for a reasonable schedule of progressive payments.
3. Trimming Off the Excess Fat
Nope. I’m not asking you to go on a diet or to lessen your food intake to raise funds. What I mean is, knowing the “baseline” for the fund that you need to have just so you can start.
There are a lot of people who dream BIG. There’s really no problem with that. In fact, it is highly encouraged in business. However, there’s an ocean of difference between DREAMING BIG and STARTING BIG.
Big dreams don’t always come with a BANG. Start small. Go for the lowest overhead. Do you really need that posh business address to get your clients? Haha! Think again. There are more clients who prefer to be wooed and dined out or met in the convenience of their own offices than those who’d like to visit your headquarters and enjoy your airconditioning and state-of-the-art furniture. Do you really need the full office staff combo when you’re starting? Sometimes a secretary can only do so much as answer calls and take down messages. The client still needs to talk to YOU. So, why not just hire an answering service or make sure that you cellphone is always charged to answer those calls and text messages yourself? There are also cases when you can consider getting people on a contractual or on a per project basis.
Bottomline is, plan on doing what you can do yourself and lessening the frills when you’re starting…YOU are the MAIN MAN in YOUR BUSINESS…NO ONE should know your business better than you do…and ABSOLUTELY NO ONE should be able to do a better job at controlling it than YOU….
Who knows? Maybe, once you start doing this, you just might trim those excess fats…
Kids and Business : A mother’s point of view August 12, 2008
Posted by mona in : Business, Personal , 1 comment so farAs a mother, the first and foremost in my mind, will always be my kids…
It would sure be nice to leave them a HUGE inheritance. (HAHA!)
BUT, even if I could, I’d rather not.
I’ve seen it one too many times with relatives and friends.
They work their bones off to provide their kids’ every single need and want.
Some would say they should be given praises and honors for being the World’s Best Dad or Mom.
I’d say, it’s a heroic effort that, more often than not, creates total disaster in the end.
Oftentimes, the World’s Best Dad or Mom ends up creating The World’s Best Bum cum Brat…
You see, they’ve given their kids everything…
BUT they took away their ABILITY TO DREAM.
How could these kids ever know how to dream if every single thing drops on their laps with a flick of a finger?
How will they ever have the drive and the hunger to succeed if there was never a reason to be driven or be hungry for something?
I’d like my kids to VALUE everything that they will ever have in this world.
I’d like them to know that nothing ever really comes for free…
(even if you think you got something for free…there’s always a minimum purchase requirement! hahaha!)
I’d like them to strive, persevere and aim high.
I’d like them to go through the process of starting up and making their dreams come true…
ON THEIR OWN…No sugar-coating, this time.
It is only when they go through their own life’s journey experiencing all the ups and downs…
…it is only when I let them go will they ever find themselves and be WHOLE.
And when that time comes, none will be happier than ME…
Getting a Food Franchise August 12, 2008
Posted by mona in : Business , add a commentA lot of companies offer food franchises. Here are some tips you need to know before putting your hard earned money in a food franchise:
First, you’ve got to try out the product. Go. Buy. Taste. And decide. It has got to be something you believe would sell over all the other competitors. If it tastes more or less the same as the others, it would be advisable to get one that is more or less “known” already.
Once you find the right product, you then, check out the franchising company. For food, it is very important to check out if they have secured an approval from the Bureau of Food and Drug. The commissary must be clean and must be capable of producing the stocks required by all their existing franchises. It is very important to gauge whether the people behind the franchise know more than just supplying the stocks. Here are some important questions that need to be answered:
Do they have a system in place? From choosing a location for their franchise outlets to marketing and product positioning to inventory reports to ordering, delivery and payment of stocks.
Do they really care about the franchise? A good franchising company makes sure that it has a system of monitoring that all existing franchisees are following the standards set in the franchise agreement. The mother company must have clout enough to make all franchisees think twice about deviating from SOPs and getting stocks from sources other than the commissary.
Do they have a support system for franchisees? This is specially helpful for those who are new in this kind of business. It sure feels good to have people guiding you through the entire process from selecting a location to training of the crew to actual operations.
Are the prices of their stocks and the figures they are spewing out as they do their marketing pitch to you sound logical at all? If you feel the stocks are a bit too pricey giving you very little leeway for profit and wastages, think again. If you feel, just by listening to them, that you’ll be a millionaire in a month’s time, think again and think harder!!!
Do their existing outlets really sell? Is it really possible to achieve the targeted sales per day? There are some who get sweet talked into franchises right away without actually visiting and observing an existing outlet or talking to an actual franchisee about sales and operations and problems encountered.
If the franchising company passes all your tests, then it is time to start hunting for the right location. It is very important that you know how and where the food franchise stands in terms of its target market and product positioning before you go looking for “the place”. An ill-situated franchise, like putting up a chocolate fountain in a public market, spells total disaster. You also need to carefully study and analyze the cost of the rent as against the expected flow of customer traffic and targeted profit per month. As otherwise, believe me, the landlord is gonna eat you up alive.
If you think you can do better than the franchising company, then I suggest you forget about getting a franchise and simply start your own food business. Who knows? You might actually really be a whole lot better off on your own.
