Vigan bag maker grows business from P4-K fund

 By Hilda Austria 

VIGAN CITY – Using a P4,000 capital and basic knowledge in sewing, along with an immense desire to learn and hard work, a widow from this city has raised her children with her souvenir-making business
    When Lucila Datuin, 63, lost her husband in 2007, she quit from her job as a restaurant manager in Metro Manila and returned to her hometown.
    She learned how to make bags using the abel Iloco, an Ilocano textile made of cotton, and a second-hand sewing machine with the intent to sell them to souvenir shops.
    “Unang gawa, sabi nila, ano ba ‘yang gawa mo basura (On my first try, they said it was garbage),” she said admitting that she only had basic sewing skills.
    The harsh comments motivated her to improve her craft.
    “At first, I was the only one doing all the work but when orders kept coming, I hired and trained people,” she said in a phone interview on Monday.
    Datuin said her business boomed when Vigan City was hailed as one of the New 7 Wonder Cities of the World in 2014.
    From producing bags as souvenirs, she is also selling printed t-shirts, pouches, and tote bags among others.
    Her shop now has 20 employees, including seven seamstresses working from the comforts of their homes.
    They produce about 80 regular bags and 100 tote bags daily.
    Work stopped during the pandemic and they resorted to selling dressed chickens and bed sheets to get by.
    “I have my savings but I cannot spend it all, especially since those were times of uncertainty as to when the pandemic will end,” she said.
    She also has to deal with competitions and copying, especially from former employees who resigned to set up their own business.
    Nonetheless, Datuin always comes up with fresh ideas and offers new products to her customers. 
    “Pinapakita ko naman quality at nag-iba ako ng tela ngayon (I always make sure of the quality of our work and I also try to use other materials),” she said.
    Datuin said she was thankful for the help on her way to stabilizing her business, among them the Center for Agriculture and Rural Development Mutually Reinforcing Institutions Incorporated (CARD-MRI Inc.), a microfinance company that lent her capital for her business.
    Her borrowing capacity has grown from P4,000 to P300,000.
    “I thank God that I was able to send my children to school and buy properties and start other businesses and help other people in their livelihood as well,” she said. -- PNA

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Need money for growth? SEC tells small businesses: Try crowdfunding

 BUSINESS

Miguel Camus

The Securities and Exchange Commission (SEC) wants more small businesses to consider alternative fundraising sources such as crowdfunding, whose benefits it plans to underscore during a roadshow in Davao City on Wednesday.
    The event will highlight how even micro, small and medium sized enterprises can finance growth by tapping the capital market, which is usually reserved for large businesses and conglomerates.
    Crowdfunding allows businesses to raise money from a large pool of small investors though an online platform.
    The SEC regulates the sector and does not require prior registration of the securities as long as investments are solicited thought accredited third parties.
    There are currently three crowdfunding intermediaries registered with the SEC: Investree Philippines, SeedIn Technology Inc., and Eastern Securities Development Corp. (Round One).
    Those firms act as investment managers that use pooled money from small investors. On SeedIn’s website, it noted that investments are rigorously vetted and loans are backed by collateral. In exchange, investors can earn annualized returns of 7 percent or more.
    “The COVID-19 pandemic has caused many financial problems for a lot of MSMEs around the country. We at the SEC hope to stem their financial woes by providing possible solutions to these enterprises, particularly through the capital market and crowdfunding,” SEC Chair Emilio B. Aquino said in a statement on Monday.
    Within a 12-month period, a small business may raise as much as P10 million when its securities are offered and sold to any investor, and up to P50 million when offered and sold to qualified investors, the SEC said.
    Aquino will lead the Davao roadshow alongside speakers from the Philippine Stock Exchange, Investment & Capital Corp. of the Philippines, the Philippine Chamber of Commerce and Industry, Investree Philippines SeedIn Technology, and Round One.
    The program is an initiative of the newly created SEC Office for the Advancement of Strategic Investments in SMEs.
    “OASIS seeks to promote the interests of SMEs by setting up viable alternatives in raising capital by simplifying the capital-raising products, streamlining the registration process, and encouraging investment houses and other financial institutions to implement SME-friendly underwriting and advisory programs, among others,” the SEC said.

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15 ideal ways to make money in real estate

REAL ESTATE TIPS

Ria Isobel Don 

With the right amount of strategy, credible networks, and sometimes capital, you can find a lot of different opportunities to earn money especially in real estate because it will never go out of style. People will always look for a house to live in or a location to set up their companies or businesses. In short, you can never go wrong in real estate when you invest in the right places.Here are some ways to earn money in this booming industry in the Philippines:

Appreciation

 The increase in value of a property over time can generate income for owners through reselling and refinancing. Different factors such as market condition, home improvements, and neighborhood changes can affect the worth of your asset. It is best to sell your housewhen it appreciates since it is surefire to give you profit.

Long term rentals

Becoming a landlord requires time and effort aside from the money you already invested in your unit. However, long-term rentals are a guarantee that there is a continuous stream of profits for the rest of the tenant’s contract.

Short-term rentals

While waiting for your holding to appreciate, there is an option to lease it out for shorter time periods. This will ensure that there are returns especially when the market condition is not as favorable for you to sell your property.

Vacation rentals

Buy a vacation house and rent it out for a rental fee that is a little bit higher than your monthly cost. You get to have a vacation house that generates income so in a sense, you get the best of both worlds.

Offer your unit in rent-to-own deals

It gives tenants the opportunity to buy the house from the owner after a certain lease period but with a higher rental price. If the tenant does not push through with buying your house, there is always the fact that you have earned more than your usual rental price.

Pre-selling and reselling

Condominium units are available for sale even before the buildings are built. This type of trade entails risks however, the price of the units are lowest during this period. Investors may grab this opportunity to purchase at a low price and sell it in the future at a higher value depending on its appreciation.

Purchase raw land

Raw land is usually cheaper than the already developed establishments that a client could buy. One can earn money through this by leasing it out or reselling it to other investors or developers who need a good location for their future projects.

Farm investing

Aside from buying raw land for commercial purposes, investors may also devote in land ownership for agricultural purposes.

Lease out commercial or office spaces

A commercial space for lease in Ortigas Center, Pasig.

Invest on an office space and lease it out to business professionals. Besides residential spaces, offices are also in demand as more companies emerge and expand.

Buy a warehouse

Providing space for industries dealing with large equipment can also be a source of revenue. A warehouse can also be divided into storage rooms for multiple purposes.

               Real Estate Investment Trusts (REITs)

Real Estate Investment Trust (REIT) is a stock corporation established for the purpose of owning income-generating real property assets.

Become a broker/agent

Hoppler’s October 2016 Broker of the Month, Raymond Atencio sharing the lessons he learned as a real estate practitioner. On one hand, becoming a broker or an agent would require a lot of negotiations, paperwork, and legwork. On the other, the compensation is well worth the effort once you have closed your deals.

Manage properties

If you have friends or connections who own vacation houses or investment properties, you can help them administer the transactions concerning their rental space. This is beneficial for property owners who are out of town or too busy to handle the legworks.

Be a contractor

A real estate development will not be possible without a contractor. This is a vital aspect in the industry that could produce returns when you have enough stocks to invest.

Partner with a real estate firm an industry professionals

If you have the capital but lack the connections, it is best to seek partnership with the people who have been in the industry and have already made a name. This will ensure that your investment will not be in vain and your transactions are legitimate.With the right amount of hard work, determination, focus, research, and networking, success in the real estate industry is achievable.

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Baking seminar slated for home-based Baguio moms

BAGUIO CITY -  Communication and broadcasting students of the University of Baguio is set to hold a one-day baking seminar “Bake your Business” on Sept. 29 at the Forplays – The Camp, Leonard Wood Road just across Teacher’s Camp, here.

The event aims to help full-time mothers and interested individuals earn money by starting home-based baking business.

A series of demonstrations and consultation with experts Melanie Seňa of Sweetmates, Charisse De Guzman of Sweet Craving, Charisse and MaritessMalapit of Mom’s Goodies will also take place not only to highlight their experiences from being a novice to being an expert in baking but also to address queries of the audience and discuss the baking industry.

Bake your Business is free admission and organizers are inviting interested individuals to participate. For reservations, kindly contact 0927-985-7232. The event is sponsored by ABS- CBN Northern Luzon, My Only Radio for Life (M.O.R), Northern Philippine Times, Forplays- The Camp, Tiyatro, Sweetmates, Sweet Cravings by Charisse, Mom’s Goodies, Julie’s Bakeshop, Inprint General Merchandise and InCafe. – Layela Joy Barangan

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Brian Tracy on writing a book

THE GIRL NINJA

Liza Gaspar

I have always wanted to write a book which would help everyone achieve financial independence faster than they could without it. I have been writing columns for about two years now, but I don’t have a background or training in writing.

I am a nerdy finance person. So I was looking for a course that I could take to help me launch my book writing career when I found Brian Tracy’s How to Write a Book Virtual Training Course. I would like to share it with you as well.

This comprehensive course offers you an unprecedented level of valuable information on writing and publishing your book, plus an incredible array of bonuses that cover sales, marketing, branding and publishing.

The course is not cheap, but I believe every dollar is worth it. Read on below for more information about, the gift of opportunity.My friend and colleague, Success Expert Brian Tracy, has made it his mission to help as many action-oriented, results-driven individuals as possible to achieve their most important goals, personally and professionally.

His multi-million-dollar, international company specializes in training programs designed to help people reach their maximum potential in areas like personal development, goal-setting, sales, business, time management, and leadership.

That’s why, when he let me know about a special sale he’s offering, I knew I had to share it with you, right away. Why not give yourself, or your friends and loved ones, the gift of success?

You can explore his web site for his other products which are also on sale. I think you’ll be impressed when you see the selection of products he offers, to fit any budget and every success category.

So whether you’re ready to achieve unprecedented success in your own life, or you know of someone who’d benefit from one of Brian’s programs, I think you’ll find some perfect gifts.

I’ve joined Brian for several trainings, and read many of his books and reports, and I highly recommend you taking him up on this offer. Here’s that link again, where you can learn more about the programs he offers, and how you can use them to change your life:

Treat yourself, or your friends and loved ones, to a whole new life this year! Go here to begin:

P.P.S. I’m an affiliate of Brian’s, which means I believe in what he’s doing. It also means that if you do decide to invest with him, he may float me a commission to thank me.

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5 Money Move Musts to Start Now

FINANCE MATTERS

Liza Gaspar

The money choices you make now dictates how financially healthy you will be in the future. Start being financially healthy today and I guarantee that you’ll feel the positive effects not only on your wallet but also in your relationships with yourself and others for years to come.

1.     MAKE FINANCIAL GOAL. Identifying what you want to achieve, say, in the next 5 years, 10 years or even in the next few months give people a sense of being fully in control of their loves. Knowing what every financial and money decisions and actions you make at any point in time will result to gives you a strong sense of direction and purpose. Perhaps the most important function of clearly identifying your financial goal is it gives you a support system to ground you whenever problems and challenges strike.

2.     CREATE BUDGET. If a financial goal provides the destination, then a budget shows you how to go there. Having a budget for all of your expense items will give you a roadmap on how much money you can spend on, say, food and entertainment for a budget period which could be a week, a month, a year or whatever period you want to monitor your financial performance for. Don’t forget to include a budget for improving your financial management skills such as for buying books and attending seminars on money management.

3.     RECORD ACTUAL EXPENSES. Every day. Perhaps this is the most tedious part, but also the most rewarding. It’s tedious in that you have to keep track of every centavo you spend and rewarding in that at the end of the day, with a well-kept expenses record, you can breathe a sigh of relief that you know where your money is going to. At any given time, you should be able to look at how much you have actually spent on a budget item. Personally, I do this every day – before I go to sleep. Knowing how much you’ve spent on something gives you a sense of control on how you actually spend your hard earned money.

4.     COMPARE PERFORMANCE. With your budget and well-documented expenses, you can easily know how much budgeted-money you have remaining. For example, with the use of computer software such as Excel, you know at a glance how much you have spent, the remaining budget or if you have already overspent for, say, eating out. This ability to monitor your budget and actual expenses allows you to make immediate corrections on how you’ve been spending your money.

5.     REVISE MONEY BEHAVIOR. As I am writing this, I look at my budget for the month and see that I am in the red as regards my transportation budget. This means that I have over spent on what I intended to spent with 9 more days remaining for June! As I look into how I spent my transportation allowance, I saw that I have taken too many taxi rides. From now until the end of the month, I can therefore resolve not to take any more taxi rides which means I need to go out on time for my commitments rather than at the least minute which forces me to take a taxi so I won’t be late. In my next articles, I will discuss each of the 5 Money Move Musts in depth.

***

Interesting Money Facts. Are you a math genius? I am a math geek, but I can only claim, at my best moments, average math skills. If you are a genius in solving math problems, here is your chance of earning a cool US$ 1 million. All you need to do is solve the Beal Conjecture which is finding the common numerical factor of A, B, and C in the 350-year-old math mystery that is called Fermat’s Last Theorem which is stated as: Ax + By = Cz.

The reward is offered by Texas billionaire D. Andrew Beal hence ‘Beal Conjecture.’ He has been trying to solve for the numerical factor since 1993. Whoever said math is not cool must be mistaken.What are you waiting for? Get solving. There’s a million bucks at stake.

(Liza Gaspar is a wealth coach and personal finance enthusiast. She spends her free time helping out with the projects of the Rotary Club of Makati McKinley(rcmmckinley.org) and the Gerry Roxas Leadership Awardees (grlawardees.org). Visither Web site at thegirlninja.com, email her at liza@thegirlninja.com, or visit her at facebook.com/annalizagaspar and TheGirlNinja.com.)

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The off-price store

BUSINESS BITS
Mishell M. Malabaguio

“Fashion should not be expensive but affordable.” This thought occurred to Jonas Ang, who has been selling clothes wholesale since 2002, when he felt the need for his own retail store. His business has been providing various retail stores in and out of Metro Manila factory overruns and shelf-pull merchandise.

Ang has always been a stickler for quality—he refuses to sell clothes that are damaged or carry fake designer or custom labels. With the market flooded by such goods, however, he saw the need to put up a retail outlet that would only sell quality but affordable branded clothes.

That was why in 2003, with P3 million in capital, he started The Off-Price Store, located on Escrivá Drive at the Ortigas Center in Pasig City. Since then, The Off-Price Store has grown to eight outlets, five of which are franchised.

Each outlet has its own identity depending on its location and market. The Malate, Manila branch, for instance, is a boutique, while the Ortigas branch has a warehouse look and feel. This way, Off-Price is able to hit markets A to C, even if pricing is uniform in all of the stores.

The Off-Price Store started franchising in 2007, with the franchise fee ranging from P500,000 to P650,000 depending on the store size and location. Based on their studies, an Off-Price franchisee could recover his investment in 1.5 years.

Ang explains that the franchisee is allowed to add items to their merchandise; however, this should not exceed 5 percent of the total merchandise being sold, and the pricing and quality of such merchandise should be approved by Off-Price itself.

The factories from where Ang sources the clothes have the consent of the specific brands to sell their overruns; thus, he says he doesn’t need to get any license or permit from these clothing brands.

The only agreement he has with the factories, he says, is that all the goods he gets from them should be damage-free and that they should offer him the lowest price in the market. “I could make such arrangements with them because a lot of them are my friends,” he explains.

Among the brands he sells are Crocs US, Replay, Buffalo David Bitton and Seven7 Jeans. Off-Price also has in-house brands such as Vanilla and Low Label. Based on Off-Price’s studies, the average price purchase of people per clothing item is P450.

Therefore, Ang makes sure that their prices are close to that amount, or that the items are 60 percent to 80 percent lower than the original price. He also conducts comparative shopping to ensure that Off-Price is really offering the most affordable quality branded items in the market.

“Because I’ve been in the industry for a long time, I know what’s fake and what’s original, and if the item has any damage,” he says. “I also let my franchisees know why a certain item is priced lower than ours; if there is any such item, most, probably it’s damaged.”

To sell affordably priced goods, Ang keeps his overhead costs minimal. For one, he does not locate stores in malls to avoid high rental costs. He also maintains a strong and active customer database, and monitors customer preferences.

Despite the store’s low prices, it still gives discounts and promos to its customers, such as 10-percent discount on first purchase and a so-called valued customer card. Ang says: “Our profit is not that thick per item, but we aim for economies of scale.” They have built a strong customer base and give first-rate customer service.

“Having well-trained staff is really crucial for us because we’re relying on word of mouth,” he says. Ang says that at present, Off-Price has an average of 100 customers per store daily.

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How to ‘bag’ the local market

BUSINESS BITS
Portia Marie Silva

As a child, Amina Aranaz-Alunan spent all her summers working in her mother’s bag factory that it seemed natural for this style maven to take over the business one day. And in 1999, she did take over Aranaz.

But despite knowing the business like the back of her hand, Amina admits that she found it hard to identify and break into the local market because the family business initially operated as an exporter.

“I’ve always believed in our products, but we have a very select group of clients back then. The appeal it has on our foreign buyers might not work here,” she says.

As the new kid in the local bag industry and a fairly “unknown” brand at that, breaking through the mold scared Amina. “I wasn’t sure on who to tap or where to go to market our bags,” she shares.

All these questions were eventually answered in late 1998, after her brother Miguel made incredibly huge sales from selling their export overruns to his classmates in Ateneo de Manila University. The timing was perfect since her brother’s buyers were purchasing the bags to give as Christmas gifts.

So from 1999 to 2003, Amina decided to expand the enterprise and explore different markets in Manila, without necessarily having set up shop in malls and going mainstream. It was a branding tactic, she explains.

At that time, Aranaz bags could only be found in upscale Christmas bazaars. The brand had gained quite a following that at one point, they were invited by The City Golf Plaza in Pasig City to become an in-house brand.

“We want our brand to be known while remaining ‘exclusive’. In other words, we want buyers to specifically look and request for our items. Although we might come off as a little elitist, the company and the brand are not discriminating. In fact, we involve peoples from different walks of life in the business,” she says.

Indeed, Amina, together with good friend and fashion designer Rajo Laurel, has collaborated with social business enterprise Rags2Riches to help the women of Payatas. “I don’t think they have ever heard of the brand, but these women, you have to give it to them.

They are skilled,” she says. For three months, Amina conducted workshops at a design school that she co-founded, the School of Fashion and the Arts (SoFA), to hone the creative skills and educate the women of Payatas in bag design and manufacturing. The training paid off and the partnership with Rags2Riches produced an exquisite line of classy, eco-friendly bags.

The collection uses recycled materials gathered from the poverty-stricken Payatas community, incorporated with “distinctly Aranaz” pieces like wood handles, leather trimmings and mother of pearl embellishments. Amina says, “It is important to give back and help while you can. They have the talent; I have access to resources. Just do good and the business will flourish

The bag designer reveals that she is also looking into launching women’s clothing under the same brand sometime soon.

Right now, few pieces are on display in Aranaz boutiques in Power Plant Mall and Greenbelt 5 but Amina is quick to admit that she’s “not as strong a retail designer as she is a bag designer.” Her sister Rosanna, fashion blogger and co-author of www.littlemissdressup.com, does most of the creative planning for their proposed clothing line.

Amina adds, “I’m every bit of a bag junkie and a fashion lover turned entrepreneur. While I say I’m a designer first and foremost, I have learned through my years at Aranaz that creativity alone will not help the company survive. When you have the right business mindset and when you constantly innovate, then nothing can stop you from bagging it all.”

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Urban living and space saving solutions

BUSINESS BITS
Carlo P. Mallo

Janice Ting says becoming an entrepreneur is the only way to find real success.

Wanting to share her passion for entrepreneurship, Ting started her online store, with her sister and a sister-in-law, dubbed as “Urban Living and Beyond”. The concept of the store is pretty simple: it sells goods to help urban dwellers save space and utilize every square meter of their house.

What makes her business different is that she is using her venture to achieve her
other goal of encouraging employees to turn entrepreneurs.

“By starting small, people get to practice their entrepreneurial skills – from marketing to customer relations to inventory,” Ting said. “Right now, we are looking for people who want to be part of our business by becoming the seller or distributor in a particular building.”

The distributor, Ting said, will be the exclusive seller for a particular office building. “The nice thing about this business is that it can be done after office hours and it does not really affect your work hours. One may have to sacrifice some hours at night checking on stocks or orders for the next day, but it is a very good training,” Ting said

An employee of a multinational company, Ting believes that entrepreneurship is the only way one can truly find success.

Coming from a family of entrepreneurs, it comes as no surprise that Ting has always been interested in entrepreneurship.

“Since I was a kid, I have always been an entrepreneur. From selling ice candy to selling yellow corn, I just knew that I am bound to be an entrepreneur even if I have taken a different path by entering the corporate world,” Ting said.

Prior to opening Urban Living and Beyond online, Ting was already involved in other buy and sell businesses, such as clothes in Bangkok and wares from China. “Actually I sell to my officemates [and because of that] my boss teases me that I have already sold everything possible at the office. But of course, everything must be done after office hours,” Ting said.

In 2009, when Bangkok came to a standstill due to political instability, Ting’s buy and sell business of clothes from Bangkok was affected. It was then that Ting, with her sister and sister-in-law, decided to take a look at what China had to offer.

A trip early this year showed the trio that there was so much space saving solutions available in China at very cheap prices.”Some of the products are not even carried by the big stores here that we decided to pour in a big investment into this venture,” Ting said. “Just looking at the potential market, mostly condominium dwellers, there is a big potential for our business.” Ting said she and her business partners pooled P400,000 as their initial capital.

Launching the online store in Multiply just last month, Ting revealed that sales have been doing better than expected.

“There is still a huge potential for entrepreneurship here in the Philippines. Even if you start selling only in your office, the important thing is you have started and able to practice your entrepreneurial skills,” Ting said.

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Online stores a viable venture

BUSINESS BITS
Carlo P. Mallo

Janice Ting says becoming an entrepreneur is the only way to find real success

Wanting to share her passion for entrepreneurship, Janice Ting started her online store, with her sister and a sister-in-law, dubbed as “Urban Living and Beyond”. The concept of the store is pretty simple: it sells goods to help urban dwellers save space and utilize every square meter of their house.

What makes her business different is that she is using her venture to achieve her other goal of encouraging employees to turn entrepreneurs.

“By starting small, people get to practice their entrepreneurial skills – from marketing to customer relations to inventory,” Ting said. “Right now, we are looking for people who want to be part of our business by becoming the seller or distributor in a particular building.”

The distributor, Ting said, will be the exclusive seller for a particular office building.

“The nice thing about this business is that it can be done after office hours and it does not really affect your work hours. One may have to sacrifice some hours at night checking on stocks or orders for the next day, but it is a very good training,” Ting said.

An employee of a multinational company, Ting believes that entrepreneurship is the only way one can truly find success.

Coming from a family of entrepreneurs, it comes as no surprise that Ting has always been interested in entrepreneurship.

“Since I was a kid, I have always been an entrepreneur. From selling ice candy to selling yellow corn, I just knew that I am bound to be an entrepreneur even if I have taken a different path by entering the corporate world,” Ting said.

Prior to opening Urban Living and Beyond online, Ting was already involved in other buy and sell businesses, such as clothes in Bangkok and wares from China. “Actually I sell to my officemates [and because of that] my boss teases me that I have already sold everything possible at the office.

But of course, everything must be done after office hours,” Ting said. In 2009, when Bangkok came to a stand still due to political instability, Ting’s buy and sell business of clothes from Bangkok was affected.

It was then that Ting, with her sister and sister-in-law, decided to take a look at what China had to offer

A trip early this year showed the trio that there was so much space saving solutions available in China at very cheap prices.

“Some of the products are not even carried by the big stores here that we decided to pour in a big investment into this venture,” Ting said. “Just looking at the potential market, mostly condominium dwellers, there is a big potential for our business.” Ting said she and her business partners pooled P400,000 as their initial capital.

Launching the online store in Multiply just last month, Ting revealed that sales have been doing better than expected.

“There is still a huge potential for entrepreneurship here in the Philippines. Even if you start selling only in your office, the important thing is you have started and able to practice your entrepreneurial skills,” Ting said.

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The Clothing: From hobby to business

BUSINESS BITS
Roderick L. Abad

Graffiti was generally equated with vandalism perpetuated by street gangs and political activists who scribbled or painted rude or radical inscriptions, slogans and drawings on walls and other public and private surfaces without permission.

However, political developments in the last few decades worldwide have made graffiti acceptable, considered as street art even, so long as they do not degrade property and structures—remember Western Berliners painting on their side of the Wall in the 1980s before its fall?

Entrepreneurs, on the other hand, have been quick to recognize in graffiti another art form that could be used to generate business gains. The clothing industry in particular has embraced this form of expression, with Tshirts as the natural canvas for their radical, atypical and even extreme messages.

One of the many clothing brands that carry so-called graffiti shirts is THE, sold by The Clothing at Cubao X, an artists’ haven at the Araneta Center in Quezon City. The Clothing was an offshoot of the common hobby of its founders, Jerik Robleza and Dino Sarmiento, of making T-shirts printed with graffiti designs for their own use. Little did they know that such a shared pastime could have viable business potential.

Early on, Robleza and Sarmiento’s friends and family members who saw them donning their own creations commissioned them to make the same kind of T-shirts for them.

The two, with the collaboration of friends Auggie Fontanilla and Mara Reyes, then formalized the business in late 2007.

The unique name they adopted for their business, THE, reflected precisely what they envisioned their shirts to become, “a particular member of its class.” As a part of speech, “the” is a definite article used before a noun, “with a specifying effect.” To start off their venture, the four dipped into their savings and raised P30,000 as seed capital for the business

With this amount, they were able to produce 25 pieces of graffiti shirts they designed with “punk-rock” style. Without a physical store, they would then sell their products online and by joining trade events. “We would just set up a table and pull up a poster whenever there was an event,” Sarmiento recalls. “And from there, people started to notice our shirts and, eventually, patronized them.”

Although still a newbie in the T-shirt industry with just over two years under its belt, the owners have apparently made a mark in this cutthroat industry where artistry and commitment are key factors.

With “people who love art on shirt” as their target market in mind, they run the business on their own in a “very personalized” way—from conceptualizing to printing and packaging—and in a quick-strike manner, much like graffiti artists who must finish their work on public spaces before the public officer arrives. The owners are dedicated to showcasing local talents in their shirts by collaborating with a lot of Filipino artists—from local graffiti artists to illustrators, disc jockeys and visual artists.

Some of The Clothing’s featured artists are Kid Dragon, Ungga, Boy Agimat, Analog, DJ Eggboy, EPJey, Mara Reyes, Wiji Lacsamana, and Otto Reterdo. What’s more, they continue to patronize local products by sourcing raw materials from suppliers in Malabon and Quezon City. “Giving importance to Filipino artistry is the strong selling point we have,” says Fontanilla. “This sets us apart from our competitors.”

Since the inauguration of The Clothing flagship store at Cubao X in September 2009, T-shirt aficionados have been kind to them. Apart from graffiti shirts, they now offer jeans, hoodies and jackets, as well as denim leggings designed by Reyes. In the future, Robleza says they hope to connect with boutiques or shops abroad, where they could sell their own line of products. “We wish the artists who design for us to become popular around the world as well,” he stresses.

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The Clothing: From hobby to business

BUSINESS BITS
Roderick L. Abad

Graffiti was generally equated with vandalism perpetuated by street gangs and political activists who scribbled or painted rude or radical inscriptions, slogans and drawings on walls and other public and private surfaces without permission.

However, political developments in the last few decades worldwide have made graffiti acceptable, considered as street art even, so long as they do not degrade property and structures—remember Western Berliners painting on their side of the Wall in the 1980s before its fall?

Entrepreneurs, on the other hand, have been quick to recognize in graffiti another art form that could be used to generate business gains. The clothing industry in particular has embraced this form of expression, with Tshirts as the natural canvas for their radical, atypical and even extreme messages.

One of the many clothing brands that carry so-called graffiti shirts is THE, sold by The Clothing at Cubao X, an artists’ haven at the Araneta Center in Quezon City. The Clothing was an offshoot of the common hobby of its founders, Jerik Robleza and Dino Sarmiento, of making T-shirts printed with graffiti designs for their own use. Little did they know that such a shared pastime could have viable business potential.

Early on, Robleza and Sarmiento’s friends and family members who saw them donning their own creations commissioned them to make the same kind of T-shirts for them.
The two, with the collaboration of friends Auggie Fontanilla and Mara Reyes, then formalized the business in late 2007.

The unique name they adopted for their business, THE, reflected precisely what they envisioned their shirts to become, “a particular member of its class.” As a part of speech, “the” is a definite article used before a noun, “with a specifying effect.” To start off their venture, the four dipped into their savings and raised P30,000 as seed capital for the business.

With this amount, they were able to produce 25 pieces of graffiti shirts they designed with “punk-rock” style. Without a physical store, they would then sell their products online and by joining trade events. “We would just set up a table and pull up a poster whenever there was an event,” Sarmiento recalls. “And from there, people started to notice our shirts and, eventually, patronized them.”

Although still a newbie in the T-shirt industry with just over two years under its belt, the owners have apparently made a mark in this cutthroat industry where artistry and commitment are key factors.

With “people who love art on shirt” as their target market in mind, they run the business on their own in a “very personalized” way—from conceptualizing to printing and packaging—and in a quick-strike manner, much like graffiti artists who must finish their work on public spaces before the public officer arrives. The owners are dedicated to showcasing local talents in their shirts by collaborating with a lot of Filipino artists—from local graffiti artists to illustrators, disc jockeys and visual artists.

Some of The Clothing’s featured artists are Kid Dragon, Ungga, Boy Agimat, Analog, DJ Eggboy, EPJey, Mara Reyes, Wiji Lacsamana, and Otto Reterdo. What’s more, they continue to patronize local products by sourcing raw materials from suppliers in Malabon and Quezon City. “Giving importance to Filipino artistry is the strong selling point we have,” says Fontanilla. “This sets us apart from our competitors.”

Since the inauguration of The Clothing flagship store at Cubao X in September 2009, T-shirt aficionados have been kind to them. Apart from graffiti shirts, they now offer jeans, hoodies and jackets, as well as denim leggings designed by Reyes. In the future, Robleza says they hope to connect with boutiques or shops abroad, where they could sell their own line of products. “We wish the artists who design for us to become popular around the world as well,” he stresses.

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The booming direct selling industry

BUSINESS BITS
Peter Imbong

Learn to distinguish between a legitimate direct selling biz from pyramid schemes

Do you have Tupperware in your house, use Avon cosmetics, or take food supplements from Herbalife? These are just a few of the products taking part in what has grown to be called direct selling. But what exactly is itIn a recently held management conference by the Direct Selling Association of the Philippines (DSAP), a nationwide trade and industry association of direct selling companies, insiders said the industry has been growing at a rate faster than before.

Direct selling is face-to-face selling. According to Ador Bonquin, DSAP Chairman, “It is as personal as you can get. There is a communication process where all your senses are engaged. You can see, you can hear, you can smell, you can shake hands and touch. Direct-selling is set-up for greatest communication impact.” It can be used to sell different products: from cosmetics, apparel, intimate apparel, fragrances, toiletries, plastic home products, water purifiers, and food supplements. Chances are you have a direct-selling product in your home or office right now.

Some notable direct selling brands are Tupperware, the makers of durable plastic containers; Mary Kay, cosmetics and beauty products; Fern Inc., makers of food supplements; and Amway that provides health, beauty, and wellness products. They are just a few of DSAP’s 29 members.

In the Philippines, the direct selling industry is “a stable and growing industry” says Bonquin. DSAP’s members register P25 billion in annual sales, with a growth rate of about 14 percent. “That,” says Bonquin, “is still a very conservative number.”

Global figures state that from over 50 countries worldwide, the direct selling industry is worth $120 billion annually. It is, perhaps, not surprising that many entrepreneurs and even employees choose direct selling. In fact, there is one direct-seller for every 7.5 households, says Bonquin.

The reason for the popularity in direct-selling, says Bonquin, is that “[it] provides opportunities to people to augment their income, there is no need for a formal education to take part in it, it can be a home-based business, and everything is simply based on your contacts.”

The DSAP warns, however, against hastily joining direct selling groups. “They need to ask questions,” says Bonquin, otherwise, they might unknowingly get into a pyramid scheme.
Besides being illegal, these pyramid schemes claimed many victims in the past. In direct selling, compensation is paid from the sale of products. However, in pyramid schemes, compensation is paid for recruiting individuals.

According to Scott Balfour, VP and Deputy General Council for Amway, the following are some telltale signs that the business is a pyramid scheme:

1. The costs to enter the plan are unreasonably high.
2. Participants are compensated primarily for recruiting other participants.
3. The compensation is not based primarily on the sale of goods and services.
4. The goods and services are not legitimate and currently marketable.
5. The participants are required to buy more products than they can reasonably sell or use.
6. The plan does not allow return of unused inventories.
7. There is no written contract providing key terms and a definite cancellation period.

According to Bonquin, “legitimate direct selling companies do not offer false hopes [like pyramid schemes do], but rather, offer attainable rewards.”

He adds, “We at DSAP have been working to broaden people’s awareness on the direct-selling business and appreciate the entrepreneurial opportunity offered by the industry so that more people will be able to enjoy the financial stability that a legitimate direct selling business can offer.”

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Bosch stages car clinic, road show in Luzon

Baguio press pose for posterity with Bosch’s PR mamager Kaycee Crisostomo (3rd from R) with other members of the company at Lumie’re Bosch Car Service outlet in Baguio City during the Bosch Car Service Clinic Friday.

BUSINESS BITS

BAGUIO CITY – Bosch Car Service (BCS), the world’s largest independent network of over 15,000 outlets, conducted free vehicle diagnostic and safety checks for motorists during the North Luzon leg of its largest car service clinic road show on August 27-29.

This summer capital was at the center of all activities with two simultaneous event venues: First, Bosch associates provided free diagnostic and emission tests as well as service-related advice at The Drive in SM Baguio.

Services were performed via Bosch Diagnostic Testers that analyzed electronic-driven systems in vehicles.

Accredited BCS outlet Lumie’re Autotech provided discounted Bosch parts for the motoring public, in addition to free diagnostic services.

Parallel activities also took place in nearby Pangasinan and Ilocos as well as Metro Manila.

The BCS clinic is an ongoing awareness campaign to promote road and driver safety as well as regular preventive maintenance among local motorists.

“In view of variable petroleum prices, Bosch also endeavors to help Filipino motorists to reduce their fuel expenses through quality car parts and proper maintenance,” said Joseph Hong, managing director of Robert Bosch Inc. Philippines.

As the leading global supplier of automotive technology, the company has developed safety components like the Anti-lock Braking System (ABS), Traction Control and the Electronic Stability Program (ESP).

Likewise, Bosch developed various fuel-saving technologies that also reduce CO2 emissions, including commonrail diesel injectors of which over 33 million units were produced since its introduction in 1997.

The company presently manufactures the third generation Piezo injectors that help diesel vehicles achieve 30% less consumption (versus gasoline), 25% less CO2 emissions and 50% more torque.

“Baguio has earned the distinct reputation for being one of the country’s cleanest and greenest cities. We deemed it appropriate to advocate Bosch clean air initiatives here,” noted Hong, citing the local government’s commitment to preserving Baguio’s natural heritage and sustaining it as an eco-cultural tourist and business destination.

In each car service clinic location, BCS staff performed periodic and preventive maintenance services, lube services that included oil change and tune-up, and vehicle safety inspection, which covers the car’s suspension, steering, brakes, clutch and tires.

Motorists also received discounts on Bosch car parts, including filters, horns, headlamp bulbs, relays and wipers.

Participating BCS outlets include Lumie’re Autotech Corporation in G. Del Pilar corner Legarda Road in Baguio City; Dan’s Car Audio and Accessories in Lucao District, Dagupan Pangasinan; Northeast Car Care Centre along National Highway, Cabalanggan, Bantay Ilocos Sur; and TopGear Auto Service Center in Rosario Drive, Cubao Quezon City.

Bosch-trained mechanics were on-site to perform OE-quality (i.e: casa-quality) services and a variety of electrical services including battery, starter and alternator testing as well as free diagnostic services to check various engine parameters.

Each location was equipped with Bosch Diagnostic Testers that link-up to a vehicle’s Electronic Control Unit (ECU) and test electronic-driven systems, including engine, transmission, ABS, SRS Airbags, Traction Control and ESP. These testers are also capable of checking for errors, resetting, idling and running conditions, as well as actuator response.

Highlighting the event were free emission tests performed by Bosch associates for interested motorists at the SM complex. Emission analyzers for checking gasoline and diesel emissions benchmark various results against the country’s regulated Euro II standards.

As a pledge of support to the local auto services industry, Bosch entered into a technical partnership with TESDA in 2007, paving the way for the Hari ng Talyer program. Since then, over 5,500 skilled Filipino mechanics graduated from the program, which enhanced their service skills as well as their livelihood opportunities. Bosch also fosters the Clean Diesel Program, which engages local transport groups to achieve both fuel efficiency and emission reduction.

For inquiries, contact Kaycee Crisostomo PR and Corp. Communications Manager, PR Manager- Stratworks Kaycee.Crisostomo@ph.bosch.com , Tel.: +63 2 870-3837 www.bosch.com.ph.

You may also contact Chele Mendoza at tel.: +63 2 893-7472 to 7, Chele.Mendoza@stratworks.ph , www.stratworks.ph

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LGUs to speed up business licensing

BUSINESS BITS
Art Tibaldo

BAGUIO CITY -- Alarming reports on the Philippines’ rank in global competitiveness as presented by officials of the Local Government Academy to over 60 training participants from government and private sectors of Regions 1, 2 and Cordillera was not a likely starter for a three day training in this cool mountain city.

The recent workshop on “Upscaling business permit licensing system reforms in 2010” by the departments of Interior and Local Government and Trade and Industry briefed participants on the country’s status in the world economic forum global competitiveness index ranking for 2009-2010 where Philippines ranked 87th out of 133 countries, 14th among 18 Asian and last among the ASEAN-6.

Timothy T. Moiket, team leader of the LGA resource speakers told the participants despite the national government’s efforts such as organization of the National Competitiveness Council, the country ranks 43rd out of 57 countries in the International Institute of Management Development’s global competitiveness ranking for 2009 and last among the five ASEAN members.

Moiket added the country placed 139th out of 180 countries in Transparency International’s Corruption Perception Index (CPI) rankings in 2009 and the 144th among 183 countries in the International Finance Corporation’s (IFC) business 2010 report.

The Philippine’s ranking in global competitiveness survey has always been at the lowest third among countries and there is urgent need to speed up processing of business applications and renewals, he said.

Aside from being the last among the ASEAN-6 member countries, the Philippines also ranks poorest in starting and closing a business at 155th and 153rd respectively.

During his State of the Nation Address, President Benigno Aquino III expressed hope government agencies can find ways to implement reforms that will make business start-ups easier consistent with streamlining processes that his administration has started.

The LGA resource speakers noted these data had consistently identified the high cost of doing business in the Philippines as a constraint to competitiveness of the country and it can be interpreted in the number of days or literally cost in terms of fees and charges spent by a businessman or investor to start a business.

To address these issues and concerns, a covenant and commitment to implement standard business registration procedure for new business and comply with the provisions of the Anti-Red Tape Law was forged in Feb. 18 of this year involving National Capital Region cities, the DILG and DTI.

The covenant sought to address repetitious and cumbersome process of business permit licensing and eliminate lots of signatories and long queues, shorten inspections and totally illuminate irregularities and bribery in the bureaucracy.

The covenant further urged LGUs to empower more business permit licensing officers, set-up one-stop shops, adapt unified and single business permit application forms, business registration process, one-time assessment at the BPLO of related fees and charges including fire, and implement one-time payment system at the treasurer’s office.

All government offices are required to implement the Anti-Red Tape Act by observing the 10 days maximum business permit processing time and create a joint coordination inspection team following the standardization of business registration and permit process or SBRP.

DTI assistant regional director Carmelita C. Usman who also heads the National Economic Research and Business Assistance Center in the Cordillera said during an interview this program can reduce person to person interface, time, cost, number of steps and procedures required to start a business and number of forms to fill out to register which is a very important consideration to Cordillerans.

In the government’s bid to increase investments and improve governance, Usman cited need to address issues relating to transaction costs and flows.

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Entering the high-end market

BUSINESS BITS
Carlo P. Mallo

Fine dining restaurant owners share tips on entering the high-end market

In putting up a restaurant, one of the first decisions an entrepreneur must make is which market to cater to.

In the Philippines, there’s the mass market, the middle market and the high-end market. In the case of Katzer Restaurant & Bar, which offers French Mediterranean cuisine, the owners decided to go high-end. Shelby Yu Bayle and Silvana Bayle, co-owners of Katzer, cited their extensive travels in their decision.

“We travel a lot in and out of the country. Through this, we get to experience eating in different places and this inspired us to have our own restaurant. Everything fell into place when chef Andreas [Katzer] was also looking for a space to start his own restaurant. We partnered with him and so Katzer Restaurant was then established last July 15, 2010,” Shelby told Entrepreneur.com.ph.

Opening a 535-square-meter restaurant in the heart of Ortigas Center, Katzer Restaurant & Bar boasts of the culinary offering of chef Andreas Katzer, who is also part owner of the restaurant. As owners, Shelby said they were very hands-on -- from conceptualizing the restaurant, to building it and finally, until its launching and actual operation.

“We have the better brands from kitchen equipment, restaurant furniture and food ingredients. The interior was designed to suit the market’s taste, very cozy and relaxing. Since we are in the business district, our customers would always go to our restaurant to unwind, experience intimate dining and simply have a good time,” Shelby said.

As with any business, knowing your target market – their preference and their spending habits – is a must.

“We cater to the middle to high end market. We serve French Mediterranean dishes in our menu. [We use] very healthy ingredients. We establish good customer relations with our client and give them the best quality of service,” Shelby said. Besides knowing one’s market, Katzer owners also shared three things to know about the high-end market:

Always seek to improve. “One of the most important things to remember is having a detailed management of the business. You have to make sure to maintain or improve skills. You always have to be the best in your field,” Silvana said.

Avoid overspending . “Always practice cost efficiency and do not overspend. Always remember, you are running a business,” Silvana said.

Always extend topnotch service. “Don’t settle for good service; create a relationship with the customer,” Silvana added.

Although they chose to cater to the high-end market, Silvan and Shelby said they faced the same challenges that any startup entrepreneur go through. These include looking for the best source of quality materials and a killer schedule during the restaurant’s construction. But they are determined to succeed. [See guide to a successful food business here]

“As a first-timer in the food business, we had to learn fast and cope with the challenges we encounter each day. As of today, we are working hard to gain awareness and for customers to come back to our restaurant and in time be a popular restaurant not only through media but also by word of mouth,” Silvana said.

Now that the restaurant has opened, the real work for the owners has also just begun. “We want Katzer restaurant in five-year’s time to be one of the well-known French Mediterranean restaurants in town because we managed to maintain the excellent service we provide our customers plus the dishes in our menu will always have something new for the regular customers to enjoy,” Silvana said.

“Also, we want to be known for the satisfaction that we give because we have an open kitchen which accommodates every customer’s request as long as the ingredients are available.”
Katzer Restaurant & Bar

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