Negosyo360

Basic Small Business Management: Why Some Businesses Fail?

2009-03-15T16:47:00.001+08:00

It always pays to read good business books. Why? Well, you’ll learn a lot. If you’ve been thinking of starting a business, or if you have been running your own enterprise for more than a decade, it never is a waste of time to read because in the process, you are able to update yourself to whatever changes or trends that’s going on in your industry.

Let me highlight something on this particular post – what makes a business successful? Is it pure luck? By the way, is there such a thing as “luck” or is it just being the right person in the right place at the right time with the right goods or services to sell to the right people (which can happen if you’re observant of the industry changes and trends and has a keen eye for new opportunties)? How about destiny? Say, you were born into Filipino-Chinese parents, are you destined to get rich and become the next whatever tycoon?

So why do so many businesses fail? According to Clifford Baumback’s book on Basic Small Business Management, it is commonly due to POOR MANAGEMENT. “It is poor management…that is at the root of most of the operating problems of small business,” Baumback said. And poor management is evidenced by conditions such as:

1. Inventory Imbalance. According to Baumback: “Many business failures are the result of poor judgment in buying.” If you’re into retailing, maintaining balance in your inventory is crucial. Furthermore, he said, “An inventory may be out of balance in either direction; that is, it may be too large or too small. If it too large relative to the demand for it, the cost of carrying an inventory will be higher than it need be. On the other hand, if the inventory is too small relative to the demand for it (that is, if inventory turnover is too fast) stockouts will occur.”

2. Overextension of Credit. “Business is dependent on a constant rotation or turnover of capital. Some small businesses get into hot water because they extended unwarranted credit in their eagerness to make sales.”

3. Excessive Overhead and Operating Costs. Chinkee Tan said in his interview on Go Negosyo that the secret to most business successes is keeping low overhead costs. According to Baumback, “Some small businesses tie up too much money in fixed assets, while others lack adequate expense controls, and operational expenses become top-heavy.”

4. Cash Flow Difficulties. Baumback said, “In cases where a firm’s need for cash is greater than its cash inflow, the firm is not able to pay its bills when they become due and therefore is technically insolvent.” I guess, in most cases, it’s true after all – that you (constantly) need money to make money.

5. Competitive Weakness. According to Baumback, competitive weakness happens when (1) the firm is unable to overcome the lower costs of its more efficient competitors, (2) poor location, (3) business operators fail to understand the changing world about them.”

Managing Asia: Christine Tan's Interview with John Lim Gokongwei, Jr.

2009-03-11T10:51:00.001+08:00

Hello everyone. Have you ever watched Managing Asia on ANC? I’m not sure if it’s still being aired, but I haven’t seen an episode lately. Anyway, I’ve been browsing the Web here and there (no I’m not wasting my time; I’m researching :-)) when I came across CNBC’s website. I didn’t know (just until the other day) that they have quite a collection of podcasts that you can freely download to your computer or mobile phone, iPhone or iPod, smartphone, etc.

I scrolled up and down and found this very short (yet interesting) interview with John Gokongwei. Here it is:

(START)
Welcome to Managing Asia, I’m Christine Tan. To mark the program’s 10th anniversary, this week, we put the spotlight in one of Asia’s visionaries, an entrepreneur with a classic rags-to-riches story. He has built an empire in the Philippines – with business in everything, from food, air travel to property development. He is Filipino tycoon John Gokongwei.

CHRISTINE TAN: “A true entrepreneur can find opportunities anywhere,” words of John Gokongwei – Filipino tycoon and one of the richest people in South East Asia. Known for his sharp intuition and business savvy, Gokongwei has done exactly that. He has found success by seizing opportunities even in his semi-retirement days in the past decade.

JOHN GOKONGWEI: I see an opportunity and go in. If that is an opportunist then I am an opportunist. But before we go into anything, we really make a study of what…that’s why we have been…90% successful in all our ventures.

CHRISTINE TAN: With his tough as nails reputation, the taipan has built up JG Summit into one of the largest conglomerates in the Philippines, leading in the food, airline and property sectors.

JOHN GOKONGWEI: When you go into business, then you are successful, you’ll learn. And you get…you feel..you know…you can compete against anybody, that’s why I, my personal feeling is, I live from competition, otherwise you will (weather?) away.

CHRISTINE TAN: Gokongwei who turned 80 last year, was born onto wealth, but he lost everything when his father died and his mother moved to China during World War II. At the young age of 15, he had to fend for himself.

JOHN GOKONGWEI: The only thing open for me was either I become a peddler, work for somebody else, or…so I decided to get a bicycle and become a peddler. And it was a very exhilarating experience. I’ll never forget it. In fact, I would look back as one of my, best time of my life.

CHRISTINE TAN: What early lessons did you learn from your childhood struggles and hardships?

JOHN GOKONGWEI: Most important thing is to have people trust you, work hard, try to get as much education as you can, but there were no schools open then. And (austerity?) to a certain degree. And the other virtues, let’s say, Confucius, I think I believe in that, in fact I practice that up to this day.

CHRISTINE TAN: Gokongwei made his first million when he was 30, running a cornstarch factory. But he struck a bigger goldmine producing snack foods. In the 1990s, JG Summit diversified into other businesses, including telecoms, petrochemicals, aviation and banking services – a timely move which analysts say helped the company weather through one of Asia’s most challenging periods – the 97 crisis.

JOHN GOKONGWEI: Like our food business, in a recession, I have noticed the last 40 years, it’s never really been affected. Airplanes, very bad. Because peoplehave no money to travel…but they eat, they have to eat. So it depends on what business…but one is important, you must have reserves. You must have reserves. In a crisis, you don’t declare default. Because if you…are…declared…in default, you are in big trouble.

CHRISTINE TAN: Since then, Gokongwei has aggressively expanded the company’s footprints abroad. So where does the visionary get his ideas from?

JOHN GOKONGWEI: I travel a lot. I read a lot. Ask me…about…very big entrepreneurs or business people in the West or Japan, or even Asia. What they do. I spend 2-3 hours reading every night.

CHRISTINE TAN: How do spot business opportunities just by reading?

JOHN GOKONGWEI: No. you read then you know what’s going on. Then you travel around, see, like C2, that’s already a very…the exceptionally successful. We launched it 2 years ago. I know about the thing by travelling in China. I see…Chinese…drink…tea for free…you know, status symbol. Everybody has that. So, I had a meeting among our people, we decided to go into it, so we’re doing a very big way. And the success…was also in a very big way. The…we were…astounded by the results.

CHRISTINE TAN: Do all your business ideas come into fruition?

JOHN GOKONGWEI: Not all. Not all. There are some that are not very successful. We had an ice cream project that we had for 20 years. We decided to close it. Anything that doesn’t give us the return, we just close it.

CHRISTINE TAN: Your move into aviation and telecommunications really surprised everyone. How did you calculate the risk when it comes to entering new businesses?

JOHN GOKONGWEI: First of all, I have 4 rules. First, we make a study whether we can do it. Secondly, do you have the capital or deep pockets needed? Third, do you have the people and can you compete? The fourth is, can you sleep at night? I guess I can have all 3, sleeping at night maybe I’m having a little difficulty, but I actually, during the daytime, naps, so I recover. Sometimes at night, you know, when you’re entrepreneur, you’re not 9-to-5, you always think of the problem, you know. But I usually don’t, I just go to sleep, I love to sleep, it’s one of my “virtues” I think, I love to sleep.

CHRISTINE TAN: So nothing keeps you up at night at all?

JOHN GOKONGWEI: Not nothing. Some do.

CHRISTINE TAN: Like what?

JOHN GOKONGWEI: Surprises, maybe.

CHRISTINE TAN: Surprises or crises?

JOHN GOKONGWEI: Or crises, either one, you know.

CHRISTINE TAN: Looking at your empire, the Gokongwei empire, spanning across 8 core business, do you ever get worried that the company gets too big, too clumsy and too slow, slow-footed?

JOHN GOKONGWEI: We’re in 8 areas, and we feel we’re not going to go beyond that, we’re doing very well in the last 5 years. It’s been increasing. I have put in place a very good, we have a foundation that owns 30% of the company now I gave half of my shares to the foundation. My son is running it as president. My brother is chairman. And the 2 of them combined, what, 50 years of experience in the company, so if I’m not around, they can run it as well, maybe even better, who knows. And we have a complete line up f very good professionals though. We had a, McKenzie did a thorough job of analyzing our company, about 8 years ago, and they recommended that, some steps which we are taking, and which we feel is, with some revisions, very useful for us, and this has made us a more efficient company, and more willing to take risks that are more understandable risk. So I think in the end we are in the right place and our, looking at competition, I think we’ll do well.

CHRISTINE TAN: Where do you see the company in the next 10 years?

JOHN GOKONGWEI: I don’t think I’ll be around, but, it’ll be in good hands. Top, still, will be run by members of the family, the lower, the presidents and below will be run by professionals. And we’ll be very competitive, I’ve seen around the kind of competition and, we’ll survive.

(END)

I guess Mr. Gokongwei was quite nervous during the whole interview. If you want to listen to the podcast yourself, go to Managing Asia Podcast.

Business Money Management: Bam Aquino’s Interview with Eduard Francisco

2009-03-09T10:46:00.003+08:00

As promised over a month ago, here’s Bam Aquino’s interview with Mr. Eduard Francisco of FINEX. It’s a bit incomplete. I missed the first few parts of the interview. My apologies, to my dear readers.

(START)
BAM AQUINO: Cashflow, that is something that an entrepreneur, I see probably, don't know that it's an important thing but it's not the one focused on in the book; it's not the one focused on in school. Tell us what's the importance of cashflow in the business.

EDWARD FRANCISCO: You're right. People think about profit. Sometimes that's a misnomer because the reality is...In fact, I guess, in the financial crisis, investors are not looking at profitability anymore of a company; they are looking at the ability to generate cash.

MONEY MANAGEMENT: In a crisis, investors are not looking at the profitability of a company but its ability to generate cash.

Because there are a lot, I guess, in the accounting side, non-cash items or things below the bottom line that are really important in terms of cash collections. Like even managing working capital, you like to manage that well.

BAM AQUINO: How are you able to convert all of these big concepts, financial concepts to, you know, the small business that you’ve run, for example, I mean for entrepreneurs it’s different when you read it in a book or pick it up in class versus actually applying it in your actual business?

EDUARD FANCISCO: You’re right because of course we go to school, we read books, but then at the end of the day it’s basics lang eh. In fact this year, we should all be going back to basics. It can be as simple as making sure that you manage your receivables, you always follow-up when something is supposed to be paid, you just make sure that you balance your cash at the end of each day sa kahera, even if it’s non-collecting na cash, and try to make sure that you pay your suppliers on time; you make that all you inventory nakabilang para at least, when you reconcile everything it’s there. It’s doesn’t have to be something fancy but as long as you know where things are, that should help you in today’s times.

MONEY MANAGEMENT: Back to basics: Make sure that you manage your receivables; balance your books; pay your suppliers on time; update your inventory.

BAM AQUINO: Is it true Ed that a lot of things fold-up because of poor cashflow management more than a poor business plan, for example?

EDUARD FRANCISCO: Yes. Because there are a lot of companies that do not push through, not because for lack of planning, but, in fact, I think, the problem sometimes is that they grow too fast. And when you grow too fast, it’s a good problem to have but if you don’t have enough cash, kung maiksi ang pisi mo, mauubusan ka. So you have to manage the cashflow.

MONEY MANAGEMENT: Many businesses fold due to poor cashflow management. Always have a financial back-up.

BAM AQUINO: And usually when cash is a problem, would, should you go to a bank or should you borrow? What should be the system there?

EDUARD FRANCISCO: Ok. That’s a good question. Ideally we should always have back-up financing. But the reality also for startup companies is bank financing is not yet available eh. Usually the source of cash for a startup, let’s say you’re a retiree or an OFW, it’s your own money. And then in addition you should have a backup, you should ideally have money from, maybe you get an advance from your “mana,” or you borrow from your mga kamag-anak, from your Ninongs, Ninangs. You should have that buffer kasi nga mauubusan ng cash at one point.

BAM AQUINO: And that buffer he tells is another topic for another show kasi that also pretty complicated. Talking about your personal finances, it’s sort of a rule that you should never mix your personal finances and the company’s finances, but as a startup, it’s inevitable that you do that, right?

EDUARDO FRANCISCO: Correct. It’s inevitable. What you have to do is just be ready to, I usually tighten your belt. Because for example you’re an entrepreneur; you put your nest egg into this business, you make sure that you agree with the family that certain cost, you only manage at a certain cost; you do not suddenly get advances from the company to have expensive dinners or trips or to buy a new PSP or iPod for your kids.

BAM AQUINO: Talking about personal finances, what part of your business should you put into savings or retained earnings, and what should you actually liquidate for you, for example?

EDUARD FRANCISCO: Sure. I guess ‘yun nga, you set up a budget at the initial stages palang, you manage that budget; you should not pull out any money if you can, that’s the ideal scenario. Because if you have a successful business, you want to plow all your earnings into the company. It is cheaper to plow it back than to borrow money kasi. And that makes he company stronger.

MONEY MANAGEMENT: If you have a successful business, you may want to plow back all your earnings back into the company to make it stronger.

BAM AQUINO: Is there a, like a rule, on how much savings you should put in? ikaw 100% ‘di ba? But there are some people who start their business, that they don’t have salaries, they’re just hoping na, kung kumita dun lang sila kukuha ng, you know, for themselves. Is there a rulethere, or maybe you should just give yourself a salary?

EDUARDO FRANCISCO: I agree with you. I think I prefer that having a salary. At least it’s a minimal salary muna in a startup stage. Don’t make naman super malaki because the company is not making money yet. You get a salary. You make your budget, household budget based on the salary you’ll get, minimal. As it becomes more profitable, you can increase it. And all the excess profits you retain as the company gets to the initial humps, then you probably can take dividends out already.

BAM AQUINO: Let’s say for example Ed, you have your retained earnings and I know you’re the Head of the BPO Investment Corporation , so would it be wise for you to invest that money again, especially these days that everyone ‘s saying na you know, medyo nakakatakot to invest in anything, at least in financial instruments, no. so is that advisable if you have some retained earnings to invest it again in something?

EDUARDO FRANCISCO: Yup. That’s also good. If let’s say, you don’t have the money to grow your business, medyo it’s maturing o there’s no need, you can take out some of the money, and you’re right, put it in a safe investment. It’s up to you naman because if you’re aggressive, if you see other good opportunities in other start ups, why not, if you’re diversifying. If you want some certainty then you put it in good banks, para at least, or government securities para may, you can sleep well also.

BAM AQUINO: For entrepreneurs, basically Ed, do you have, like, some tips, final tips for them on managing their money and running their business?

EDUARDO FRANCISCO: sure. I think the key of course is having a business plan; execute it well; keep your eye on the ball; don’t lose track; but also have longer cushion, long pisi. Be patient because these things are not suddenly goldmines an sometimes you try to pull out the plug but in reality, if you stay in longer, you’ll really succeed. And I guess, at the end of the day, you should believe in somebody up there who will support you.

MONEY MANAGEMENT: The key to a successful business enterprise is having a good business plan and executing it well.

BAM AQUINO: Who will help you out, ‘di ba? Ed, in your own experience, for example, in Little Gym and your food processing company, maybe you can share with us of your experiences there, in running the money management matters in those companies.

EDUARDO FRANCISCO: Basically, at least, corporate transparency, even at the SME level is important. So you discuss a lot with the Board, you talk about the weaknesses, the advantages, the risks. But at least you discuss them. It’s good to know so you know kung anu ang pinapasukan mo. And then at the same time, then just have to work well together, at least, we plan, and then we also visit, it’s a good, really good to get a sense of how the traffic is, when you have a store, you visit, you see what it’s like, you talk to the people para you always, you’re feet is always on the ground.

BAM AQUINO: Do you have a sort of, parang schizophrenic ka ba when it comes to being the corporate guy and being the entrepreneur or are you able to sort of put things together?

EDUARDO FRANCISCO: No. It’s very different. In fact, I’m sure your viewers have the same concern e. some of the retired corporate people have always been on the other side. They always had long deep pockets. Now it’s your own money already. So you really have to be more careful.

Business Money Management Tips: Handling Your Money in Business

2009-02-02T11:59:00.005+08:00

Bam Aquino's Start Up show never fails to surprise me. Every episode is a goldmine of great business tips and advice from great business experts . I'm pretty sure that the show generates a lot of interest from millions of "money-minder" Filipinos who have been dreaming of running their very own businesses.

Last January 16, 2009, Bam Aquino interviewed Mr. Eduard Francisco, the President of Finex, to talk about Money Management. (I still have to post the whole interview; can't do it right now because I'm officially without a working computer; I'm still saving for a brand new one - my old one already "died" weeks ago.) :-(

Here are some of the more important points mentioned during the interview:

1. In a crisis, investors are not looking at the profitability of a company, but it's ability to generate cash.

2. Back to basics: Make sure that you manage your receivables; balance your books; pay your suppliers on time; update your inventory.

3. Many businesses fold due to poor cash flow management. Always have a financial back up. (I have to remember this one - very very important)

4. If you have a successful business, you may want to plow back all your earnings back into the company to make it stronger.

5. If you have some retained earnings, you can put in in safe investments.

6. The key to a successful business enterprise is having a good business plan and executing it well.

Feng Shui in Business - Some Things Worth Knowing

2009-01-28T11:03:00.006+08:00

My mother is a big Feng Shui fan, and I don't know why. :-) Feng Shui, of course, originated in China, but I'm not Chinese. Filipinos have always interacted with the Chinese people, and we really can't deny the fact that the people who are "truly" running this country's economy (no, it's not the politicians) are mostly Filipino-Chinese.

Last Monday, January 26, 2009, Chinese New Year was celebrated not only by the Filipino-Chinese population in the country, but also by all people around the world.

I recently read one of my mother's Feng Shui magazines, and thought that posting an entry that's somewhat related to Chinese philosophy or culture would be great. So here's my post. It's short. It's not a comprehensive list of Feng Shui beliefs. :-) (I really can't write or compose my thoughts well without a word processor)

1. If your business depends on a steady stream of customers, choose an area frequented by people; an area with heavy foot traffic. Increased activity means that there is an active ch'i in the area.

2. According to one local Feng Shui magazine, establishing a business near a busy street (with fast-moving vehicles and heavy traffic) is a big no-no. Ch'i is driven away by fast moving objects like cars. Not only will the noise disturb your workers, the pollution may also bring poor health to your employees. SOLUTIONS: Cover your windows with blinds; place some plants in front of your building because plants can attract healthy ch'i to the area.

3. Establishing a business in an area with slow to no activity can kill the "business ch'i." Give your business a little facelift, or a little makeover. Draw people's attention by having colorful decoration and some signage. Just maintain a sense or level of professionalism to them. In other words, don't overdo it.

4. Give proper attention to your windows. They're the "gateways" of ch'i. Remember to open them during business hours. But if for some reason you can't have them opened, placing some green plants, or an aquarium will help. You need to increase the activity in the area. This will keep the ch'i circulating.

5. Don't establish your business in an area situated near or on low-lying ground. This will stagnate the circulation of ch'i, and will create an abundance of sha.

So there you have it. I'm not a Feng Shui expert, and I don't totally agree with all of these, primarily because I'm still a big believer of the positive results of hardwork, patience and perseverance.

What do you think? Comments are always welcome.

Good Business Traits: Are You an Entrepreneur or an Employee?

2009-01-21T16:52:00.004+08:00

My sister, a University student, recently borrowed a business book from their library. I read it and found it interesting. It touched on the topic of Small Business, Franchising and Entrepreneurship.

One particular article asked, "Do you have the traits of an entrepreneur, or are you more likely to work for others?" This caught my attention, thought that you might get interested, so I decided to do a post about it.

Are you an entrepreneur?

TIME ORIENTATION: Medium to long (5 - 10 years)
RISK TAKING: Moderate, calculated risk; will risk job security and net worth
TOLERANCE OF UNCERTAINTY: High tolerance of ambiguity and uncertainty
PERSONAL STANDARDS: High -- more oriented to internalizes, self-imposed standards
MANAGEMENT SKILLS: No, or limited formal management education; may have technical or scientific training if in a technical venture; knows a business well; may be former general manager with profit and loss responsibility
MOTIVATIONS: Highly goal-oriented and achievement motivated, self-reliant and self-motivated

Are you an employee (career manager)?

TIME ORIENTATION: Short to medium (monthly, quarterly, annual budgets and quotas; the next promotion
RISK TAKING: Lower risk taker; averse to making mistakes because of large company reward and penalty system; won't take the final plunge
TOLERANCE OF UNCERTAINTY: Lower tolerance of uncertainty
PERSONAL STANDARDS: High -- but more oriented to externalized standards of the organization; more responsive to organization's reward system and trappings such as status and job titles
MANAGEMENT SKILLS: More likely to have formal management education; broad knowledge and experience in managing people and resources
MOTIVATIONS: More motivated y goals and rewards established by the organization; power motivated

So, are you more likely to become an entrepreneur, or an employee?

SOURCE: New Venture Creature - A Guide to Small Business Development by Timmons, Smollen and Dingee, Jr. (1977)

What Multiply.com's Founders Have to Say to Budding Filipino Entrepreneurs

2009-01-21T15:34:00.004+08:00

Millions of Filipinos use the Internet everyday. And according to one local business magazine, 2.2 million of those Filipinos (and growing) use Multiply.com - a relatively small social networking site compared to Web giants like Facebook or MySpace.

Both established and informal Filipino entrepreneurs use the site's free services (like blogs and photo uploads to name a few) not only to socialize online, but to do business as well. Business, after all, is like a social networking site. It's also about building relationships -- profitable relationships that is, with other businesses and customers.

Peter Pezaris and David Hersh, the founders of the site recently visited the country last year, and here's what they have to say to all aspiring Filipino entrepreneurs (Source: Entrepreneur Philippines magazine).

HERSH: "You should always learn by doing, not by reacting. You should always be PROACTIVE, and not be afraid to make big moves that you think will make your company better."

PEZARIS: "In the tech community, we are fond of saying "Ready, Shoot, Aim," which means that you should get your shot out there fast, evaluate the results, and then recalibrate it.

It's such a fast-paced market, and being first is such a huge advantage. The most critical part is knowing that the little changes don't always do it, and that consistent innovation should be the name of the game. Knowing your business inside out also ensures that you know which buttons to push, and dials to turn when you hit a snag."

Source: Entrepreneur Philippines magazine, September 2008 issue

Financial Freedom: 5 Easy Steps to Financial Freedom According to One Who Works for BDO

2009-01-14T12:09:00.011+08:00

I was watching Pia Hontivero's show on ANC, ShopTalk, last time and the topic was of so much interest to me. The guests brought in some Powerpoint presentations about their topics, and I was lucky enough to write down some important points. Here's one, 5 Easy Steps to Financial Freedom (which in my opinion, not that really easy :-))

1. Know Yourself

list down your monthly expenses
list down your monthly income
list down your assets, value it
list down your liability and monthly amortization

2. Know Where You Want to Go

list down your objectives
list down your "wants"
list down your dreams (like early retirement, buy a car/house, etc.)

3. Know How to Get There

set a plan on paying down debt, cutting expenses
savings, 80-20 rule
investment, simple first

4. Just Do It (implement your plans)

open a bank savings account
open a "big account" for investments
pay your debts
implement your plans

5. Review

do a quarterly review of your plans and where you are

Hot Business Tips from Hot Pink Lingerie Owner

2009-01-07T10:44:00.003+08:00

Hot Pink Lingerie recently got featured on Start Up, and its owner, Kaye Garcia gave some tips on how to run a business.

“Our ultimate goal is to be the one-stop shop, complete of everything.”

KAYE GARCIA:

1. Before you start anything, you have to straighten out all your financial – how much is it gonna cost, when are you gonna recover?

2. You have to have a contingency plan for if, you don’t sell well for the first year. You always have to have a back-up plan for everything.

3. You have to be prepared that it won’t go as well in the beginning, so you have to be prepared to troubleshoot the problems you’ll encounter.

4. Once you’ve gone past that, then you have to look at the future of your business – how can you make it better, how can you improve it, how can you make it bigger?

5. The number 1 advice is definitely HARD WORK.

6. You have to keep your eyes open. Competition is always just around the corner.

7. You have to be aware of what’s out; you always have to be the first one. You have to be the first one to launch a new item.

8. You have to be very very competitive. You cannot just relax.

9. When you have a business, you have to be fully devoted and passionate about it.

SOURCE: Start Up (hosted by Bam Aquino) shown every Thursday at 8PM on ANC.

Note: The HotPink graphic above is not Hot Pink Lingerie's official logo.

Basic Business Operations: Startup Tips on Running Your Business

2009-01-05T15:01:00.007+08:00

Business is an everyday phenomenon. Sure, starting a business can be very exciting, and the possibility of becoming the next John Gokongwei, Jr. can already make you euphoric. But to be realistic, business is not all about glamor and luxury. People often associate “successful businesses” with rich people in flashy cars and big houses, men in suits playing with the latest gadgets, or rich folks enjoying their vacation somewhere in Boracay or Malapascua, etc. Real business, can be quite far from how it’s being portrayed by the media and television.

As I’ve said, business is an everyday phenomenon. Its success depends on everyday business decisions that you make.

Last December 11, 2008, Thursday, Bam Aquino interviewed Rommel Juan, the president of Binalot Fiesta Inc. and the Association of Filipino Franchisers, to talk about BUSINESS OPERATIONS. (To read the full interview, go to Basic Business Operations: Bam Aquino’s Interview with Rommel Juan.)

Things I’ve learned:

• Each business is different. So there are different ways to run them. Each business targets a different market; produces different products; provides different services.

• Know yourself. Find out what you’re good at and focus on that. You’ll be more productive and efficient if you’re doing what you’re good at.

• Innovation is the key. Look for new ideas -- anywhere. Rommel Juan said, “Keep an eye for innovation.” You can get new business ideas from just about anywhere – the Internet, phone directories, in your neighborhood, entrepreneur magazines, television, etc. A small notebook could come in handy so you can immediately jot down any idea that pops into your head. Check out my very first post: How to Become an Innovative Entrepreneur.

• A good decision done quickly is better than a great decision done slowly (source: Start Up). I somewhat disagree with this, but I’m not saying that this is wrong. In my opinion, it would depend on your business goal(s). Nowadays, you have to be more and more innovative in order to compete. It depends on what you want to achieve, whether it’s long term or just short term. For short-term pay offs, I think that businesses would resort to quick decision-making. But for those who want long-term success, they’d opt for a slow (but sure) decision making process.

• Day to day operation(s) is crucial. Everyday, the decisions that you make can make or break your business.

• Plan ahead. Set up goals. Break them into manageable tasks. This will give your business a sense of direction. You can focus your efforts on things that will give you greater results.

• Do some research. Get people to sample your product. It’s all about better decision-making. Why do businesses have accountants? Why do we have researchers? Why do people start their businesses by joining bazaars first? Because businesses need data, they need information; they need problem solvers who can come up with a good or even better decision.

• Upgrade your operations to track your growth and streamline your production process (source: Start Up). It’s always a good idea to innovate. If you have the budget, why not come up with a better system that uses computer software? This will help increase your efficiency and reduce your effort, time and money. Like what they say, “Why hire 20 people to do the task of one when you can have 1 computer to do the task of 20?”

Note: Reactions and comments are always welcome. :-)

Basic Business Operations: Bam Aquino’s Interview with Rommel Juan

2009-01-05T14:57:00.002+08:00

Note: I was not able to work on this interview before, but now, because of the very long holiday that we had (not that I am very busy), I was able to finally get to post this. I am not affiliated with Start Up or with ANC (ABS-CBN News Channel).

“Our vision for Binalot is to be the number 1 truly Filipino fast-food in the Philippines, which promotes Filipino culture, Filipino humor, (and) Filipino values.”

Last December 11, 2008, Bam Aquino of Start Up invited Rommel Juan, the President of both Binalot Fiesta Inc. and the Association of Filipino Franchisers, to talk about BUSINESS OPERATIONS. Here’s the full interview:

BAM AQUINO: If you’re a newbie entrepreneur, chances are, you run your business the way you run your life, which is anyway you want to. But here’s the shocking truth, that’s not the way to do it. Having a professional and efficient way of running your business is essential in minimizing losses and maximizing your profit. It also gives you, the entrepreneur, more time to focus on other things like developing a new product, or finding new markets, or to just simply enjoy the fruits of your labor by treating yourself to an extra round of golf every morning.

Sure it would help if there’s an OPERATIONS MANUAL that every entrepreneur (can) follow, but in reality, each business is different and there is no step by step handbook that offers “one size fits all.”

Tonight, we’ll get insights on how to handle business operations from someone who has a lot of experience in putting up a business, watching it grow and adapting to the changes as they come. We’re joined by Rommel Juan, President of Binalot Fiesta Inc. and is also the president of the Association of Filipino Franchisers. Welcome Rommel and thank you for joining us this evening.

ROMMEL JUAN: Good evening Bam.

BAM AQUINO: Rommel, two schools of thought. One would say that an entrepreneur must know every single part of his business, all of the operations; and the other school of thought would say, you can always hire someone who can run the business for you. What do you think?

ROMMEL JUAN: I think, a, the most important thing is a, first, you have to know yourself. Kasi this is what I learned from my entrepreneurship course that I took couple of years back. My guru always told me that there are three (3) Os in entrepreneurship. So there are three kinds of people daw, one is the originator, one is the organizer and one is the operator.

There are three (3) kinds of people in entrepreneurship – the originator, the organizer and the operator.

So the originator is the one, the visionary, the one who has the idea, the concept. Kanya ‘yung anu, ‘yung, the big idea, tama. And then the operator is the one who does the day to day operations; and the organizer usually is the finance guy – organizes everything.

Some people are all 3, some people are 2 and some people are just 1 of those Os. Ako ay, early on, I realized and I accepted that I’m just one, I’m an originator. Originator ako. So I like thinking up new ideas, concept.

BAM AQUINO: Malikot ang isip.

ROMMEL JUAN: ‘Yun. So that’s what I do. You know, whenever I travel, I look at, I look for new ideas whenever I see something new; whenever I see something on the Internet. And I work from there.

BAM AQUINO: So who the other 2 Os? You have other people in the organization who are the 2 other Os.

ROMMEL JUAN: Yeah. Well, when I started, it was all me, you know. But I have to admit I wasn’t really that good at the 2 other Os. So, pero ‘yun e, when you start up a business, ang importante ‘yung diskarte. How you react? It’s very crucial na mabilis ang reaction time mo, especially for start up businesses, kasi, if you wait for the exact timing, exact moment, sabi ko nga, you know, “A good decision done quickly is better than a great decision done slowly,” especially when you’re starting a business. Kasi if you wait for the perfect time, it will, you know, the train will pass you by.

A good decision done quickly is better than a great decision done slowly.

BAM AQUINO: It will probably never come.

ROMMEL JUAN: So ang palagi kong sinasabi si, a, ‘yun nga, if you know yourself, alam mo saan ka magaling; d’un ka mag-focus at kung saan ka deficient, you get help.

Know yourself. Find out where you are good and focus on that.

So, of course, n’ung start, it was all me, but when the business was a little more stable…

BAM AQUINO: You could hire other people…

ROMMEL JUAN: Yeah, that’s when I hire na, better operator and better organizer than me.

BAM AQUINO: Ok. When looking at start up’s operations, what are the things that you really have to focus on?

ROMMEL JUAN: Well, day to day operations talaga. HR people, that’s one of the major problems that I had when I was starting up. Syempre, pag mag-sta-start ka ng business, ‘yun nga, malalaman mo that handling people is the most, the biggest headache.

BAM AQUINO: Ok. More than resourcing, more than your cashflow, more than merchandising. It’s the people.

ROMMEL JUAN: Well, yeah, oo, ‘yun ‘yung for me, ‘yung na anu ako. But as time goes by, medyo, you get the hang of it and you learn how to manage people and then, ‘yun nga, when the time comes that you can hire a HR person to help you, that was the biggest thorn na nabunot sa akin, yun meron nang nag-ha-handle ng HR para sa amin.

BAM AQUINO: Ok. Looking back to those days when you were doing all of the 3 Os couple of years ago, and of course, Binalot is QUITE [ :-) ] successful now already, when you would look at your operations, that aspect of operations where, siguro you thought would be the most crucial, like if you fail on that aspect, in your experience no, baka hindi s’ya, it won’t be successful, what was that aspect?

ROMMEL JUAN: Well, before, when we started, you know, Binalot used to be a delivery concept, strictly delivery lang kami. Ngayon na lang kami meron sa mga food court, meron sa mga dine-in no. So in operations before talagang, well, I was the one who was answering the phones before.

BAM AQUINO: Really, ikaw rin ‘yung call center agent.

ROMMEL JUAN: Ako rin ‘yung call center agent. There was a time ako rin ‘yung delivery boy. Pag-wala na ‘yung, pag-ubos na ‘yung nag-de-deliver, ako mismo. I’ll put the phone down, I’ll get the food and I’ll bring to anu. We were d’un lang naman kami sa small area ng Makati before so kahit by lakad-lakad lang, so operations, ‘yun nga, well, crucial for me, before was, dapat hindi ma-late (pagka-hatid) n’ya so ‘yun ‘yung tinututukan naming dati, so, ‘yun, medyo mag-ba-back-up na ‘yun maski PRODUCTION PLANNING dapat pag-isipan mo na. Kailangan ma-planu mo na ‘yan, dapat alam mo na kung anu ang mga best-sellers mo para hindi ka maubusan, ganyan.

Plan ahead. Stock up on your best-selling products so you won’t run out of supplies.

Of course, number 1 palagi sa ‘min is tapa. So at any given time, meron dapat mga 20 tapas na naka-ready.

BAM AQUINO: Was it a matter of planning everything ahead before you started Binalot, parang meron kang super-plano na dapat X grams of tapa ang nakalagay sa refrigerator and all that, or was it a matter of trial and error as you were going along.

ROMMEL JUAN: Well, if I can do it all over again, siguro baka ang p’wede ko lang baguhin ng kunti is ‘yun nga, I will prepare more. Medyo, I will do research more. We did our research also. When we started Binalot, but it was more of, parang, consumer research kind of thing, kaso…

BAM AQUINO: Anu ‘yung lasa ng mga Filipino…

ROMMEL JUAN: ‘Yun. Kasi ginawa ko dati, ang mga first customers ko were mga friends who were in the offices, so I would call them…”Pare, tikman mo naman ‘yung bagong binalot naming,” ganyan.

Get people to sample your product. Do a survey and evaluate the feedback from your test market.

BAM AQUINO: Puro sampling.

ROMMEL JUAN: Puro sampling, and I would send it; I would deliver it myself and within, inside the binalot, there’s a survey form that I did. Nakalagay d’un “What do you think about the packaging? What do you think about the price? What do you think about the taste?,” ganyan. And I would go back in the afternoon, collect all the surveys. It was very honest. Meron pa ngang nag-comment: “Rommel, masyadong mura.” Sabi ko, “Uy, ok. ‘Di mahalan natin.” So tinaasan ko ang presyo ng kunti and then meron nagsabi: “Rommel, I used to do nilagang egg lang, boiled egg,” sabi nila, “Why don’t you make it itlog na maalat, kamatis, ulam na ‘yan.”

So early on, we really did our research also. ‘Yun nga e, because I’m basically a marketing guy, not really operations at the time, so when we started, ‘yun, consumer research ganyan, we started, talagang na-accept na kaagad ng market. Tapos, d’un nalang talaga ako natuto ng operations kasi…

BAM AQUINO: Natuto ka ng backward integration…

ROMMEL JUAN: Nag-backward integrate ako kasi talagang, 11 o’clock pa lang ubos na ‘yng stocks naming, ganyan, so sabi ko, “Oh my God.” I can’t answer the phone anymore, ganyan. So ‘yun, every day was a learning thing for me.

BAM AQUINO: And from that time ‘til now that, you know, you have a lot of branches already, how long did that take?

ROMMEL JUAN: Well, it really depends, I think on the person. Kasi ako, we put up Binalot really just for fun. And it’s still fun up to now. And I think I’ll only stop doing it when, when it’s not fun anymore. But I think I’m gonna do it for a long long time because I’m having the time of my life right now.

Pero ‘yun, depende. I think it was only in 2003 when I really got serious about it. we started ‘96 e, pero hindi pa ako masyado tutok na tutok.

But in 2003, that’s when I realized that we had a brand because people were already asking for a franchise already. So 2003 was when we launched our Franchise Program also; and that’s also the time I realized na sabi ko, “Uy, medyo marami na kaming tao.”

BAM AQUINO: Yeah, and ‘di ka p’wedeng mag-franchise kung ‘di pa ayos na ayos ang operations mo.

ROMMEL JUAN: Pero more than that, nakita ko, that time I think we’re 6 branches. Sabi ko, parang ‘di na yata ‘to laru-laro. A lot of jobs were at stake already. So sabi ko, it’s time to get serious and that’s when we really got formal, you know, I got more professionals to help us out; I got consultants to help us out. So ngayon, ‘yun, medyo “manualized” na ‘yung operations namin, and ‘yun, nakatulong din ‘yun with our franchising program, because now, if you get a franchise from Binalot, everything has a manual, we can tell what to do already because we’ve experienced it already.

BAM AQUINO: Exactly. Now, for the next couple of years, if you were to project what’s Binalot in the next couple of years, where would it go already?

ROMMEL JUAN: You know, our vision for Binalot is to be (the) number 1 truly Filipino fast-food in the Philippines – which promotes Filipino culture, Filipino humor, Filipino values. So that’s what we’re aiming for. We want na, pag-isipin mo Filipino fast-food, you’ll think about Binalot.

BAM AQUINO: And in terms of operations, do you see that it will be changing also in the future, I mean, from the very loose, probably loose situation it was then, you went to franchising, medyo nag-manualize the kayo. The next step, when you’re pushing the next level already, will there be also changes in the operations?

ROMMEL JUAN: Yes. We are upgrading our systems, at tsaka, we’re getting into POS systems na, may mga software na ‘yan, so ‘yung mga sales naming, medyo mas madali nang ma-track ‘yan; inventory na-ta-track na, tapos maski ‘yung production control naming, now we’re developing the slide-shoot system d’un back of the kitchen, so medyo talagang nagiging fast-food na talaga, pero still Pinoy, so fast-food Pinoy. ‘Yun, we’re always looking for ways to innovate.

BAM AQUINO: It seems that each stage of your entrepreneurship life, parang no, it alos matches a certain level of operations; parang ganun ‘yung lumalabas. For the entrepreneurs out there, what would be your tip on them, parang signaling that they should go to this next level of operations? What will be theses indicators probably?

ROMMEL JUAN: Well, sa ‘kin, they always have to keep their eye for innovation. Kasi I don’t think that meron talagang perfect time for it anu, kung mauuna ka, mas maganda, e.

Keep your eye out for innovations. Improve your products and systems constantly.

So if can improve your product, if you can improve your systems right away, do it.

BAM AQUINO: Ok. Rommel, we’d like to thank you very much for all your tips. Maraming-maraming salamat. Maybe you can (give a) parting shot, any last tip on operations for our entrepreneurs out there?

ROMMEL JUAN: Well, ’yun anu, I think when you’re starting a business you have to do, you have to work with the resources that you have, but it always helps to have a system, so, you know, you have to do your research, read and get consultants if you have to. S’yempre talagang mas maganda kung talagang systematized ‘yung business mo, so that it’s easier for everybody.

When starting a business, you have to work with what you have, but it always helps to have a system.

BAM AQUINO: Ok, Rommel Juan, maraming salamat.

Business Online Networking: An Inexpensive and Effective Way to Increase Your Business Marketability

2009-01-03T21:49:00.006+08:00

Businesses need to network. No business is an island. From small startup businesses to big multinational companies, networking has been a part and will always be a part of business. Networking is where companies forge partnerships with other companies, and companies with customers/clients.

The Internet has forever changed the landscape of how people do everything – from doing research to finding jobs to developing projects (like software) to doing business. Right now, people are selling online (which makes it possible to reach customers from anywhere), buying online, do banking online, etc. And with the explosive growth of social networking sites like Facebook, businesses are also likely to find ways to "network" online.

Last Thursday, January 1, 2009, Bam Aquino of Start Up interviewed Adonis Yap, the President of SME Solutions – of the Planters Development Bank, to talk about online business networking. To read the full interview, click Business Online Networking: Bam Aquino’s Interview with Adonis Yap.

Here’s a summary of that interview:

What websites can I use to network with other businesses?

1. SME.COM.PH – for more established businesses (according to Bam Aquino).
2. BIZTER.COM.PH – more like popular social networking sites like Facebook (according to Bam Aquino).

Why should you consider “online business networking?”

1. Businesses can easily come up with their own webpages containing essential info like company profile, description of what they do, what they sell, some photos of their products, etc.

2. It’s an inexpensive and effective way to increase marketability (source: Start Up).

3. Online networking is fast and more convenient.

4. Web presence is becoming more and more crucial nowadays. Businesses need to have their very own website to gain web presence and credibility.

5. You can easily give out your email and website address to potential customers or partners, aside from handing out your business card.

There are, of course, popular networking sites for professionals like LinkedIn, however, for businesses here in the Philippines, you can use sme.com.ph or bizter.com.ph.

That’s it, why don’t you go ahead and give these websites a try. Strengthen your network and web presence now with these tools. Again, to read the full interview, click Business Online Networking: Bam Aquino’s Interview with Adonis Yap.

Business Online Networking: Bam Aquino’s Interview with Adonis Yap

2009-01-03T21:38:00.000+08:00

Last January 1, 2009, Thursday, Bam Aquino interviewed Adonis Yap to talk about business networking using online tools. Here's the full interview:

BAM AQUINO: Business networking is crucial for a starting business. Attending road shows and trade fairs, not only expose your brand but it gives you a chance to meet people who can potentially help take your business to greater heights.

But for a starting entrepreneur, this could also be a source of stress like going on a blind date of sorts. After all, you’re meeting strangers for the first time in the hopes of forging profitable partnerships. To help us get through our business networking jitters, we’re talking to a pioneer of 2 business networking sites – sme.com.ph and bizter.com.ph – both websites, of course, are projects of Planters Development Bank’s SME Solutions, to aid small to medium entrepreneurs in growing their businesses. Our guest tonight is the President of that division, Ado Yap.

Good evening Ado, welcome to the show.

First thing in my mind about business networking, I guess, for most Filipinos, the first level is still family and friends, right?

ADONIS YAP: That’s right. That’s right.

BAM AQUINO: Ok. Let’s say that we’ve done that already…you’ve already told your family, your friends. You’ve asked all the help you could get, what other places could you go to actually network your business?

ADONIZ YAP: Well, nowadays, a, online is very important. That’s why we created SME.COM.PH and BIZTER.COM.PH, for us to help, as part of the advocacy of Planters Bank, for us to help the SMEs to cover their places in the online world.

Business Networking: SME.COM.PH and BIZTER.COM.PH are online communities for SMEs.

BAM AQUINO: Ok. SME.COM.PH is really more for more established, I guess, more mature businesses, those that fit the small category which isn’t really that small…BIZTER is more for everyone who just wants to…

ADONIS YAP: For everyone…

BAM AQUINO: Ok. And you’re saying BIZTER is like Facebook, Friendster, right, but for businesses. Maybe you can tell us more.

ADONIS YAP: Initially, what, we got then was, social networking is very, are getting more and more popular. So there are a lot of hits coming all over; that’s why we, though, maybe we can come up with something for business, because mostly are for socialization.

Planters Bank created the networking sites to expand the market of Filipino SMEs.

So this one is for business, something that we can provide Filipino SMEs so they can come up with their own webpages, very easy, doesn’t have to be so technical about it, just like opening your Friendster accounts, it’s just that we’re not interested with your travelled picture, rather we are interested in your company profile, what you do, what you sell, especially, and some images of your products or even stores.

BAM AQUINO: So it’s, it’s also, primarily for B to B, business to business, or for consumers to business?

ADONIS YAP: It can be for B to B and business to consumer. What we want talaga is a broad spectrum. Whatever it is that you want to sell about your products, whatever you want to promote, you can do it online using Bizter.

Online networking is an inexpensive and effective way of increasing marketability.

BAM AQUINO: What, in your experience, are people looking for with Bizter, even with business networking outside of the online world, when you try to partner with somebody else, what are the things that people look for?

ADONIS YAP: Normally, based on my experience, what they want to know more about your products right away. So on the online world, ganun din, so what they want to see is, h’wag nang masyadong maraming…

BAM AQUINO: Company background!

ADONIS YAP: Well, you can put company background but you can put it in a plain and simple as possible, so not the very formal, more stiff type of company profile. So whatever it is that you think people will want to know about you, straight ne kaagad, direct to the point, because we don’t have so much in reading all this; and it’s not easy to read online like 2 hours, so if you need something, you can see it there, you can see the products and later on, we were thinking of coming up with videos pa, if they have video requirements or maybe some other thing that would help them showcase their products and services even more.

BAM AQUINO: So everything from, for example, people who want to sell your products further, p’wede ‘yun? That’s possible. People who want to supply you, is also possible?

ADONIS YAP: Well, Bizter can be a place where they can converge, e, so those who are supplying and those who are looking or supplies or raw materials, maybe…Unlike the social networking websites, you have to be a member to be able to see the profile.

In our case, because we would want to service also the, we want to sell so they should, to as many as possible. So you don’t need to be a member if you’re looking for something. So just go online, look for the, you can use the search, so you look, for example a raw material that you need, and then open the profile one by one. Or if you want you can contact them straight because they have numbers there; addresses are there so you would know more or less if theses companies are close to your business place or not, so you can easily contact them.

BAM AQUINO: So all of these factors can be found there, basically. Now, one thing I found interesting is that, I guess, an old school of thought was, parang, your company has to do everything itself; if you can source it yourself, create it yourself, sell it yourself, better. These days, it seems that, the strength of your company is also the strength of the network of companies that you have with you. Is that what you’re finding also?

ADONIS YAP: The people who know you, the people who can get in touch with you, and the people who can see right away. Nowadays, people (don’t) use telephone directories anymore; (don’t) call friends anymore, previous suppliers anymore. They would go online, Google it, Yahoo it. If he needs something, everything will be there.

BAM AQUINO: You know, before, merong, there’s still a sense of distrust (with) things online na feeling, but I guess these days, it’s getting less and less na, no?

ADONIS YAP: Yes, because nowadays, people are getting to be more and more online. Businesses are getting to be much dependent on the online transactions nowadays. Before, it was unfortunate that we know a lot of negative things than the positive things that the Internet is bringing. But nowadays, medyo nag-ma-mature na. So marami nang mga entrepreneurs, marami nang mga SMEs who see Internet as something that is something very much forma way of them selling it, selling their product.

BAM AQUINO: Kung baga, before it was the alternative way. Now, it’s becoming the normal way.

ADONIS YAP: The normal way, unlikely, for you to have a very stable business without a website.

BAM AQUINO: In fact, remember the time when business cards were the main thing, right, you have to give your business card to everyone. Now I guess, it’s like giving away your website address, right?

ADONIS YAP: In the business card. Business card still.

BAM AQUINO: With the website address…

ADONIS YAP: With your email address there. It’s very important to use business cards pa rin, because that’s way of connecting. They can’t remember all the URLs or the domain names that you’re telling them. But a good business card can be something that will bridge them to your websites.

BAM AQUINO: You have any tips for entrepreneurs out there if they want, you know, if they feel that they need help with other businesses or other entrepreneurs. Is there a place to go or a place, aside from Bizter, of course, to talk to these people or find them or connect to them?

ADONIS YAP: You know, in our SME.COM.PH website, there’s a place where we call “Ask the Experts.” So we have experts there in Marketing, in Accounting, in HR. it’s a place where they can also ask questions online, so without necessarily seeing face to face. Sometimes Filipinos are medyo nahihiya, so, and then, sometimes they’re also thinking baka mahal, so they can go online and look for experts there. They will not answer right away but at least information coming from people who are really in the, either, expert in the field doing business or in the academe. Our website can also be a good place to get it, plus, we, a project between Planters Bank and IFC of the World Bank which we call SME Toolkit. It’s a place; it’s a compilation of best practices, not just in the Philippines but globally. There are about 20, 22 countries globally who’s doing toolkit so they can also browse over that.

BAM AQUINO: Is that also on the site.

ADONIS YAP: On SME.COM.PH. They are very interesting topics there about networking under marketing.

BAM AQUINO: What do you think (is) the next step for business networking? We’ve seen the trade fairs are still there, the conferences are still there, then you have the online component. Would there be a next step for the Philippines, at least?

ADONIS YAP: The offline component will definitely be there, even if maging popular na ang online, chances are, it will still be around because we still need offline; we still need face to face. However, what I’m seeing, down, about 2-3 years down the road is, marami na ang online because mas mabilis, very convenient at mas mura, even if you are in your pajama, you can network. You don’t need to dress up and, but you still need to do the trade shows and fairs, as you said, but online, is I think, getting to be more and more popular.

Problogger Wannabes: 4 Things to Expect During your Early Months of Blogging (Part 4)

2008-12-22T14:08:00.005+08:00

This is PART 4 in a mini-series of posts on Problogger Wannabes: 4 Things to Expect during your Early Months of Blogging. The full series is PART 1 (Few people will read your blog), PART 2 (Expect little to no traffic at all), PART 3 (Patience will wear thin. Enthusiasm will run dry), PART 4 (You won’t earn thousands right away).

4. You won’t earn thousands right away. Most bloggers blog for money, the reason why many people start blogging. Although, yes, it’s true, you can make an adequate income through blogs (and if you’re lucky, make a full-time living from it), you can’t expect to make thousands right away. Let me tell you my story.

Two years ago, I was one of those people thinking that once you get accepted into the Google Adsense program, you’ll start earning right away. I was one of those “dead-wrong” people thinking that, just as long as I have ads on my page, every visitor will click on them. But I was wrong.

Ten months into blogging, I was not making any money from Adsense, the reason why I eventually lost interest in the program, and told myself to never bother with it anymore. (There were of course so many reasons why I wasn’t earning: for one, my blog was personal in nature, I didn’t have a niche, I didn’t know SEO, etc.)

Last month, I came across an article in an entrepreneur magazine featuring 3 local probloggers making money from their blogs. The article somehow ignited my passion for blogging once again, this time more determined to make a little money. And so I started this little blog about business, entrepreneurship and problogging - Negosyo360 (Negosyo is the Filipino word for “business.” Negosyo360 is Business360 in English).

Beginners need to understand that money-making isn’t easy, even for some established blogs. Read Darren Rowse’s post on the 10 Reasons Why Many Blogs Don’t Make Much Money.

So that’s it, let’s all be realistic, making money online is not as simple as it sounds. Although there are so many ways people can make money with their blogs now compared with 2 years ago, you still have to do your part as a publisher – and that’s to publish great content.

Again, here’s the full series: PART 1 (Few people will read your blog), PART 2 (Expect little to no traffic at all), PART 3 (Patience will wear thin. Enthusiasm will run dry), PART 4 (You won’t earn thousands right away).

Problogger Wannabes: 4 Things to Expect During your Early Months of Blogging (Part 3)

2008-12-22T14:01:00.005+08:00

This is PART 3 in a mini-series of posts on Problogger Wannabes: 4 Things to Expect during your Early Months of Blogging. The full series is PART 1 (Few people will read your blog), PART 2 (Expect little to no traffic at all), PART 3 (Patience will wear thin. Enthusiasm will run dry), PART 4 (You won’t earn thousands right away).

3. Your patience will wear thin; your enthusiasm will run dry. True, especially if you’re blogging solely for money.

Money was my main driving force when I started blogging back in 2006. But I soon realized that money will never become an effective motivator (Read a bit of my Adsense story in PART 4), at least, for me. Feelings are, well, feelings. They are just passing emotions, and you really can’t rely on pure emotions.

Feelings often change, no, feelings ALWAYS change. Do you still love your wife as much as you love her back when you were still dating? Why do so many marriages end up in divorce? Even Romeo and Juliet, given 20 years of marriage, might have ended up in divorce.

Feelings can never give a strong foundation if you want to build an empire. Ok, so you don’t want to build an empire, you just want to blog and have a couple of people read your work. Ok, while there’s no problem with that, what I’m just trying to say is, you can’t build something great on something that’s so volatile.

You have to be aware, that as a blogger, like Web servers, you’ll have your uptimes and your downtimes. Your enthusiasm will run dry, your patience will wear thin. Yes it’s true, but it’s normal.

So what should we do? Well, I believe that what every blogger needs is a strong self-discipline, something I’m also having some issues with. Yes, it’s hard, but bloggers blog, it’s what we do.

We’ve all come from different places and from different backgrounds, but if there’s one thing that makes us common, it’s our desire to build a better world by building a better blogosphere. So don’t let your “downtimes” keep you from blogging, just be aware that it’s common, and that every blogger experiences the same “downtime” feelings like you. “Learn to use your emotions to think, not think with your emotions,” says Robert Kiyosaki.

Again, here’s the full series: PART 1 (Few people will read your blog), PART 2 (Expect little to no traffic at all), PART 3 (Patience will wear thin. Enthusiasm will run dry), PART 4 (You won’t earn thousands right away).

Problogger Wannabes: 4 Things to Expect During your Early Months of Blogging (Part 2)

2008-12-22T13:43:00.011+08:00

This is PART 2 in a mini-series of posts on Problogger Wannabes: 4 Things to Expect during your Early Months of Blogging. The full series is PART 1 (Few people will read your blog), PART 2 (Expect little to no traffic at all), PART 3 (Patience will wear thin. Enthusiasm will run dry), PART 4 (You won’t earn thousands right away).

2. Expect little to no traffic at all (unless you’re famous). It can be very frustrating every time you check your stats and see that you had 0 visits in the past couple of weeks, or if there were any visitors, they took off as quickly as they landed on your page, as indicated by the 0:00:00 time spent on your blog, or the 100% bounce rate (which is the measure of “’how many people arrive at your site and then leave again without viewing any extra pages’ – Problogger.net.”) You’ll soon feel like all your efforts in writing those wonderful posts (subjective :-)) go unappreciated. This usually leads to topic #3: your patience will wear thin, and your enthusiasm will run dry.

But don’t loose hope or patience just yet; there are various reasons for this. The most obvious reason of which is that, you don’t yet have a long tail of content; another reason would be, people haven’t discovered your blog yet; search engines and blog indexers haven’t crawled on your content yet; you have limited knowledge in promoting your blog, etc.

There are ways to go around this:

• Just continue writing – visitors will eventually come. Just continue writing interesting posts and soon enough, your “first-time visitors” will become “repeat visitors,” who will then become your “loyal readers,” who will then form a great big community of “followers.” Although, to be realistic, not all blogs will ever have that chance to have a great following, it’s still an ego-booster for any blogger to have repeat visitors. Aim for repeat visitors!

• Submit some of your posts to social sites like Digg – they’re one of the most trafficked sites on the Web. You can tap into thousands of potential readers. (I have also touched on this topic in my Top 4 Things I Do after Hitting “Publish” post.)

• Ping various sites through ping sites like Pingomatic.com - let those blog index and directory sites know that you’ve updated. Ping them and they’ll send their crawlers to check your new content. (I have also touched on this topic in my Top 4 Things I Do after Hitting “Publish” post.)

• Network with other bloggers in your niche – contribute something useful; tell other bloggers things worth sharing; comment on their blogs, link to their blogs if you think it will help your readers, because you’ll never know, you might end up getting new readers yourself in return.

In my very first post about problogging (5 Simple Ways to Make Your Blog Human Friendly), I’ve advised not to link to other blogs. But I guess that reading other blogs can sometimes make you change your mind. Darren Rowse (Problogger.net) mentioned in one of his posts to be generous with your links. I know he’s right. But I still need to practice “responsible linking” though. Only link to those sites you think can help your readers.

I would like to think that bad competition doesn’t exist in the blogosphere. Bloggers help other bloggers blog. It makes me smile to know that dailyblogtips.com recommends its readers to read Problogger.net, or a particular post on Problogger.net has a link to doshdosh.com. :-)

Again, here’s the full series: PART 1 (Few people will read your blog), PART 2 (Expect little to no traffic at all), PART 3 (Patience will wear thin. Enthusiasm will run dry), PART 4 (You won’t earn thousands right away).

Problogger Wannabes: 4 Things to Expect During your Early Months of Blogging (Part 1)

2008-12-22T13:33:00.009+08:00

This is PART 1 in a mini-series of posts on Problogger Wannabes: 4 Things to Expect during your Early Months of Blogging. The full series is PART 1 (Few people will read your blog), PART 2 (Expect little to no traffic at all), PART 3 (Patience will wear thin. Enthusiasm will run dry), PART 4 (You won’t earn thousands right away).

1. Few people will read your blog (unless you’re famous). Who would care to read a 5-post “unknown” blog by an “unknown” blogger? The most common answer would be “no one,” unless of course (1) you are a talented writer (that you get to capture your visitors right away the first time they read your posts), (2) you’re famous in the real world (you’re a celebrity who decided to make a go of blogging to “lure” more fans), or (3) you have told all your friends and family that you have a blog and that they should check it out. :-)

Yes, of course, there are other factors (aside from the ‘newness” of your blog) that contribute to having few readers. One is, the type of your blog (example: personal); another would be your niche, or your usual topic (example: you’re writing about ducks, or about spoons, etc.). Here’s a post that you can read, it’s about How to Choose a Niche Topic for Your Blog by Darren Rowse, the Problogger.net guy.

But let this not discourage you. It’s normal. Darren Rowse said that the “most successful blogs don’t hit their strides ‘til they are at least 12 months old.” Keywords you need to take note here are most, successful, and at least. Sure you can easily start a blog, but if you want to have a successful blog with a staying power, it’ll take time.

Here’s another post that you can read: When It Feels Like Nobody is Reading Your Blog, again by Darren.

Again, here’s the full series: PART 1 (Few people will read your blog), PART 2 (Expect little to no traffic at all), PART 3 (Patience will wear thin. Enthusiasm will run dry), PART 4 (You won’t earn thousands right away).

Problogger Wannabes: 4 Things to Expect During your Early Months of Blogging

2008-12-22T13:29:00.004+08:00

If you will check my very first post here, you’ll find out that I have started this little blog only over a month ago. Yes, true, this blog is still in its infancy; however, I’m a little proud to say that, while this blog is still a “baby,” the blogger’s already a “toddler.” :-)

Why? Well, although it may not be very obvious to you (perhaps due to the plainness of my English), but I have been a blogger for over 2 years now. Aside from this blog, I also have this “other” blog, a personal one, which has been the focus of my “writer-wannabe” energy all throughout these years.

Blogging (for negosyo360 and for the “other” blog) has made me realize that almost every blogger – big or small, with self-hosted blogs or not, pro or a newbie – first underwent the same stages of blog development, or blog maturity. If you have been blogging for 6 months or less, here are some of the things, in my opinion, every newbie (that includes me) has to expect:

a. Few people will read your blog (unless you’re famous).
b. Expect little to no traffic at all (unless you’re famous).
c. Patience will wear thin. Enthusiasm will run dry.
d. You won’t earn thousands right away.

This is a mini-series of posts on Problogger Wannabes: 4 Things to Expect during your Early Months of Blogging. The full series is PART 1 (Few people will read your blog), PART 2 (Expect little to no traffic at all), PART 3 (Patience will wear thin. Enthusiasm will run dry), PART 4 (You won’t earn thousands right away).

Top 4 Things I Do after Hitting “Publish”

2008-12-20T09:36:00.001+08:00

What do you usually do after hitting the “publish” button? Do you just sit and wait, hope that someone will find and read your post, and perhaps, if you’re lucky, that someone will comment on how great a read your post was?

Here are some of the things I do after I click the “publish” button:

1. Proof read some more. It helps to proof read some more, because you’ll never know if you have missed some typos. Some probloggers advise that it helps to have a “proof reading buddy,” someone who can review your post for/with you and check it for any errors.

2. Check if the codes are working fine. I usually check if my post template codes are working, like the “Read more…” link that you find on this blog, or the Feedburner footer links that you can find at the end of each post.

3. Ping various sites through Pingomatic.com. I regularly use Pingomatic.com’s ping service. Pingomatic.com helps you ping various sites (like blog directories or indexers) to let them know that you’ve updated your blog so they can send out their crawlers to check your site. This helps increase your traffic – somewhat.

4. Promote the post (sometimes). Sometimes I shamelessly promote some of my posts by submitting them to social media sites like Digg or del.icio.us. :-) It helps sometimes especially when somebody finds and reads them, finds them interesting and then later “diggs” or “bookmarks” them. Other times I comment on other blogs (related to my topic), leave a link to some of my posts, and hope that someone checks on them. :-)

How about you? What are some of the things that you do after hitting the “publish” button?

Why Filipino Problogger-Wannabes Need to Start Blogging Now?

2008-12-19T19:23:00.004+08:00

Here are some reasons why you should consider blogging as early as now:

1. The internet has not yet penetrated a large percentage of the country’s households. Yes, the internet is still in its “toddlerhood” here in the Philippines, and if you’re a problogger-wannabe (like me), we can take advantage of this.

If you want to become an authority in your particular niche, then you have to start blogging right now. Think about it, in 2 years (or more) time, you could have the most authoritative blog in your niche or industry.

2. Success takes time. Blogheads like you and me know that, in blogging, our greatest investment is our time and our effort (and some money). I realized that we have to remember the following things:
• It takes time to grow from being a novice to being a pro. Like what Patricia Benner (some old psychology lady) found out in her study, before a novice becomes an expert, he first has to go through 5 stages of expertise, and they are – novice, advanced beginner, competent, proficient and expert.

You can’t have all the habits, knowledge and experience of a problogger right away after blogging for just a few months (but you can try learning from their experiences, like what I’m trying to do). Real growth is gradual, says an old book.

• It takes time to build great content. If you are going to check out Problogger.net, you will find that it has a deep archive of great content. No wonder it’s one of the most authoritative blogs about blogging.

Remember, it takes time to build great content (unless of course you’re the kind of user who steals content from others to make a quick buck from ads, which is wrong).

• It takes time to build traffic. When I first started this little blog, I asked local probloggers Noel Bautista (noelbautista.com) and Anton Diaz (ourawesomeplanet.com) about the average length of time it takes for one blog to build traffic. Noel Bautista said: Steady traffic depends sa activity mo at kung gaano mo kadalas i-promote. It may take 2 months or it may take 5 years.” (Steady traffic depends on your activities and how often you promote it. It may take 2 months or it may take 5 years.) Anton Diaz said: It would take 6-10 months before may traffic ‘yung site.” (It would take 6-10 months before the site had traffic)

The obvious reason for this is because, like what I’ve said, it takes time to build great content. According to Darren Rowse (Problogger.net), the richer your archive is, the greater the number of “entry points” people will have to access your blog. More “entry points,” more visitors, more traffic.

(Note: Celebrity bloggers can get loads of traffic instantly, but they’re a different story, because they can always take advantage of their fame)

• It takes time to build a reputation. In the blogosphere, there will be no other people who can better judge how good a blogger you are, other than your fellow bloggers.

In general, by building great content over time, you can gain your fellow bloggers’ respect. There are exceptions though, like people who, before becoming bloggers, were already famous for being experts in their respective fields. Just imagine a Nobel laureate starting a blog about his field of expertise. :-)

• It takes time to learn, really learn. I believe that blogging is a journey. And we learn valuable lessons along the way. Sometimes it takes several mistakes to make the lesson really sink in. That’s why there’s no other better teacher than experience.

Convinced now? Start blogging today. :-)

Blog Title Tips: 9 (or more) Words That May Add More Interest to Your Blog Titles

2008-12-18T22:59:00.008+08:00

I was trying to come up with a good title for a “future post” I was trying to write when something occurred to me that made me ask, “Whenever I do Google searches, what are the most common words do I find in the titles of articles or blog posts that interest me?”

So I did a little brainstorming for about 20 minutes and finally came up with a list of those words below (with examples from Problogger.net, dailyblogtips.com and Forbes.com).

1. Free. We really can’t deny that many of us are crazy over free stuff on the Web. The good news for most of us is that, there are so many of these “free” stuff – from free software to free music to free web hosting to free tutorials to free eBooks - on the Web. Nothing attracts me more than something that’s free. :-) Example: Free Blogger Templates (Problogger.net)

2. How-to / Tutorial. Do you believe in the power of How-to articles or Tutorials? I do. Much has been written about How-to articles and how effective they are at driving traffic to your site or blog. Probloggers like Darren Rowse (Problogger.net) and Daniel Scocco (dailyblogtips.com) have stressed the importance of an effective title, and there’s no doubt that having useful How-to articles or Tutorials can really help boost your traffic. Example: How to Make Money from Blogging (Problogger.net)

3. Top. Whenever I hear the word “top,” what usually comes to mind is Forbes.com. If you haven’t been to Forbes.com to check out their latest list of top whatever, then you’re missing a big piece of your online life. :-) I think that people are naturally curious about knowing who got the top spot, who came in second, what gets to be number 1, etc. (Maybe this also explains why so many people are obsessed with PageRank.) Example: Top 25 Blogs About Blogging (dailyblogtips.com) or The World's Top Earning Models (Forbes.com)

4. Beginner’s or Beginners. I believe that there are more novice Web users on the Web than there are pros. This is probably the reason why “beginner” articles are so popular. It’s because people, before they become experts, they first have to learn the basics; they first have to start as beginners. Getting “attacked” by weird-sounding technical words/terms can be very intimidating.

I can still remember the first time I ever went online. I would often go on “silent-panic” whenever I go inside internet cafés and find no icon of Netscape on the desktop. :-) At that time, I didn’t know any other Web browsers (I didn’t even know what “browsers” were) aside from Netscape. RIP: Netscape. :-) (Note: I’m not old) Example: Blogging Tips for Beginners (Problogger.net)

5. Guide / Step by step. People don’t want to get lost in the vast ocean of information found on the Web. Like search engines that guide us in finding the most relevant and useful information that we need, people also want articles that will be able to guide them perform a particular task correctly. Example: How to Find Advertisers for Your Website: The Ultimate Guide (dailyblogtips.com)

6. Secret. Humans are, by nature, curious creatures. This is probably the reason why “secret” is so powerful in drawing our attention. Example: A Secret to Finding New Subscribers for Your Blog (Problogger.net)

7. Simple / Basic or Basics. (This is somewhat similar to #4 – Beginners) Everyday, Web users get bombarded with tons of information on the Web. This causes the Law of Diminishing Returns to take place. Yes, things can get so complicated that sometimes we just wish for something simple, something comprehensible, something that won’t overload us with complex/technical stuff which our already info-overloaded heads can no longer process. Example: 50 Simple Ways to Get RSS Subscribers (dailyblogtips.com)

8. Tips. I’m not sure why “tip” articles get so much attention. But let me just give my 2 cents. Perhaps it’s because people want to know the “what’s in it for me?” of articles on the Web. We just want something that we can apply into our daily lives. Example: 10 Tips to Write Your Most Popular Post Ever (dailyblogtips.com)

9. List. Of course, list! Yes, we’ve all heard about Web users being “lazy readers,” and this is probably the reason why “lists” are so popular. Darren Rowse of Problogger.net has written a post about “lists” and why is it good for getting traffic to your blog. He wrote that lists are scannable, that they look neat, that they’re easy to link to, etc. Example: List of Ping Services (dailyblogtips.com)

So what’s in it for you and me?

Well, I guess, we can incorporate these words in the titles of our articles, or blog posts. :-) We can even put 2 or more of these words in one title. :-) Example: 7 Tips on Successful Blogging for Beginners.

Note: This post was primarily written for beginners (like me).

My Blog Goals for 2009

2008-12-17T10:24:00.004+08:00

Here are some of the goals I have set for this little blog this 2009:

• Improve the quality of this blog’s content. As they all say in the blogosphere, “Content is king.” I will strive to create high quality content that people and search engines alike will love. :-)

• Get ranked well by search engines. Note that I didn’t say “ranked high” just “ranked well.” This, of course, results from having great content. I would like to make this a PR4 blog.

• Make this blog more useful. I will strive to make each and every post useful to both entrepreneur and entrepreneur-wannabe (like me) out there.

• Improve my English. As I’ve mentioned in my previous post, I didn’t grow up with “dollar-spokening” parents. English is only a second language, and even though I know the basic rules of English grammar, I still want to improve, especially my vocabulary. As long as we live, we never stop learning. :-)

• Write an average of 3 posts every week. I’ll try to post at least 3 entries per week.

• Increase my RSS subscribers from 2 to 200 (or more). I know that the internet will penetrate more and more Filipino houses in the coming years. I want to increase the number of my readers from 2 (I have 2 readers now) to 200 (or even more) this 2009.

• Earn as much as $3 to 5 USD everyday. Right now, I can’t tell if this goal is too much, but I guess that only time will tell.

How about you, what are your goals for your blog this 2009? :-)

How Small and Medium Enterprises (SMEs) Can Make Use of Cellphones to Strengthen Customer Relationship

2008-12-16T10:53:00.009+08:00

Cellphones. Every Pinoy has them. From little “industry vs. inferiority-troubled” schoolchildren, to confused adolescents, up to the “20%-discount demanding” seniors, cellphones have become part of every Filipino’s life.

But SME (Small and Medium Enterprise) owners can make use of cellphones to strengthen their relationship with their customers.

The advantages…

• It gives the entrepreneur–customer relationship a personal touch. This can, in turn, turn your ordinary customers into loyal customers.

• It’s cheap. It doesn’t cost much. With services such as Sun’s Unlicall/txt, or Smart’s Unlimited Text, or Globe’s Unlitext, it’s never impossible to send them text alerts anytime, anywhere.

• It can increase your sales by letting your customers know updates from your business. Send your customers text alerts to let them know when you’re going to hold a sale, if you have any promos or “pa-raffle” going on, etc. Send them text alerts and you’ll be sending them to your store.

• It gives impression that your business is customer-friendly, and that you are trustworthy. Text messages can give a personal touch to your business/service.

[I’ve worked in an internet café before (for only more than 1 month) and there were instances when customers requested to be “texted” when their documents were already done.]

This extends your service to them. It gives them an impression that your business is customer-friendly, and when you “only” send business-related slash legitimate text messages, it gives credibility slash trustworthiness to your business.

Things to take note…

1. Do protect the privacy of your customers. Don’t give their numbers away.
2. Don’t send them “text spam.” Never abuse the trust your customers gave you.
3. Respect their decision if they tell you that they don’t want to receive text alerts anymore. Text alerts, like in Web browsers, are only “add-ons” to your business. “Uninstall” them from your customers if they no longer want it.

Inspiration for this post: An ukay-ukay store in our town. :-)

Startup Tips Series: Fundamentals of Franchising by Armando Bartolome (Part 6)

2008-12-15T10:19:00.006+08:00

Subtitle: One thing to look for in a brand – its potential for growth

Note: This is PART 6 in a series of posts on Start Up Tips: Fundamentals of Franchising by Armando “Butz” Bartolome. The full series is PART 1, PART 2, PART 3, PART 4, PART 5 and PART 6.

PART 6, Mr. Bartolome talked about looking first at one brand’s potential before getting a franchise. Here’s PART 6 of Bam Aquino’s interview with Mr. Armando Bartolome:

(START OF INTERVIEW – PART 6)

BAM: Would you always go for the name brands first, I mean, would you go for the Jollibees, and you know, all these big names first before the smaller stalls, or really depends on the franchise also?

BUTZ: You know, you just have to look at the potential of the brand. I’ve seen a brand, like from Iloilo that was nowhere, it was not even known, and now is really in Metro Manila and the provinces, and it’s reaching a hundred stores.

BAM: So there’s that investment component talaga, no. you have to look at the potential of this franchise because you’re getting in cheap, basically, if it has a large potential.

BUTZ: Because in franchising, when you get it (at) this amount, that amount will appreciate, e. it’s more than a stock market, because as the franchisor and the franchisee work together, and I call it synergy, the brand appreciates. So (you) may get it at this amount but the newcomers will get it at that amount. So if you’re this original franchisee, you see the appreciation.

BAM: Can you sell, can you sell your franchise to another person? Is that possible?

BUTZ: Well, the first thing, the first option is, if you want to quit, and that’s written in the franchise agreement, the first thing is, the franchisor has the right, you know, you can offer it, you have to offer it, the right of (first?) refusal. But if the franchisor says, “No, I don’t have the time or the money,” um, then you can opt to get another applicant based on the qualification of the franchise.

BAM: And sell your franchise.

BUTZ: Yes.

BAM: So in that case, it’s really is, an investment.

BUTZ: You can, you can still bailout, you can bailout. Well the common word “bailout”. (laughs)

Check the franchise agreement for the rules of termination. (Source: Start Up)

(END OF INTERVIEW – PART 6)

Things to remember…

1. Look at the potential of the brand, not how big the name is. Yes, I know, big brands can be pretty tempting, especially if you have the money. But it’s not always about how big a brand is. Entrepreneurs can see the potential of everything, they are visionaries, you see. Don’t consider only the big brands. Everything has potential when seen through the eyes of an entrepreneur. :-)

2. The value of one brand appreciates over time. Important keywords here are patience, self-discipline and hardwork. Stick to your goals. You and your brand will get there, eventually.

3. Check the franchise agreement for the rules of termination. When I was still in college, our instructors would usually tell us: “When in doubt, ask.”

In business, particularly in franchising, when you’re in doubt, you can always do two (or more) things – ask or read the franchise agreement. You’ll get in trouble if you think that the “Real men don’t read the manual” mantra also applies in business. :-)

Startup Tips Series: Fundamentals of Franchising by Armando Bartolome (Part 5)

2008-12-14T11:25:00.007+08:00

Subtitle: What are the top 3 characteristics of a good franchisor?

Note: This is PART 5 in a series of posts on Start Up Tips: Fundamentals of Franchising by Armando “Butz” Bartolome. The full series is PART 1, PART 2, PART 3, PART 4, PART 5 and PART 6.

In PART 5, Mr. Bartolome cited 3 characteristics of a good franchisor. Here’s PART 5 of Bam’s interview with Mr. Armando Bartolome:

(START OF INTERVIEW – PART 5)

BAM: Ok, how do you, how do you choose, what will the characteristics of a good franchisor? When you’re choosing, what are, like, the top 3 things to look for, and you’ll know that it’s a good franchisor?

BUTZ: Well, first, the franchisor is involved. Franchisor has the experience, (one) that’s passionate, and really can talk out of, you know, can talk, just even waking up, about the business.

Check the market’s acceptance of the brand and its products. (Source: Start Up)

A, second is, the acceptance of the market, the brand, the product and the research, you know, like, how often do they continuously come up with products and promotion, not just advertising, but more on the involvement.

The third is actually being passionate in helping the franchises. This I often call responsible franchising. Because franchising is just franchising. You have this pseudo-franchisors, you have this mediocre, you have this (what?) franchisors, but I always tell, choose the responsible franchisor.

Choose a responsible franchisor. (Source: Start Up)

(END OF INTERVIEW – PART 5)

Top 3 characteristics of a good franchisor

1. A good franchisor is involved. A good franchisor is hands-on.
2. Choose a franchisor whose brand and products are accepted by the market.
3. A good franchisor is passionate in helping his/her franchisees. Choose a responsible franchisor.