Letting Go

In a span of a few weeks we had to let go of 2 people. It was a very hard decision on our part, but we simply had to do it.

Asking an employee to leave is one of the hardest conversations one has to do; it doesn't matter if you are the owner of the company, a manager or a supervisor. One would have had hearts of stone not to feel anything for the person being asked to go.

The first person we asked to leave had been with us since we started operating. He had seen what the company had to go through every single day. When we had service demos, he was constantly asked to go. When we expanded and hired more technicians, he was there explaining how we did things...

When we saw his dedication to and concern for the company, we decided to give him an increase in allowances and commissions. We thought it was only fair for him since he was with us since the beginning. Unfortunately, as we brought in more customers; he thought that we were being unfair to him. He began to think that what we were paying him is not commensurate with what he is doing.

We give our car clean technicians allowances and commissions based on the number of cars that they clean.

We explained to him how we divide the sales; from his commissions to product cost to rent. But he was adamant that we give him more.

Furthermore, since he was the first employee, he let his co-workers know that he was supposed to be their supervisor; a position open to him after meeting several criteria.

Things came to a head when we asked for an advance but we couldn't give any. He said so many things bordering on being disrespect. That was the time I asked him to leave.

It was very tough but we had to make a decision...

Marketing Activities

It has been awhile since I updated my blog and a lot has happened since then. As they, we live in interesting times... Especially when you are in a business.

Let me enumerate things that have happened in the last few weeks since my last blog.

1. Got to be interviewed by Ardie Lopez of Auto-Extreme.
2. Toyota Motors Philippines has chosen us to be their official car cleaning service provider for their event.
3. Got interviewed by Jayce Flores of GMA News TV's Best Men; a men's magazine TV show.
4. Got some serious franchise inquiries.
5. We expanded our services. We now offer quick detailing in our shops. 

But aside from these positive things, there have been some not so nice events also. Among them are:

1. I asked 2 car clean technicians to resign. (This is due to their own faults. More on this later.)
2. The test market for condominiums wasn't a success. We had to close the shop down.

As we move forward and assess our success and our failures, we slow things down and look at the big picture while fine-tuning the details that will really matter most to our customers.

These successes and failures will be the subject of my future blogs.

Meanwhile, I will leave with you the interview made by Ardie Lopez of Auto-Extreme. Enjoy watching it.

Promoting With A Difference

When people find out that our company, GreenRides (www.greenridesasia.com) has already been featured in several TV shows they ask me how much did we pay?

With Mr. Paulo Abrera during the taping of Green Living.

One of the biggest issues an entrepreneur is faced with is how to promote his new venture. Often it takes time to for people to accept your product or even create a buzz. That is why, the first six months of the business is very crucial. Within those months, you must be able to develop and/or strengthen your brand identity.

If you miss this opportunity, another entrepreneur might be able seize the opportunity you have presented the market. With our company, we harped on the fact that we are the first waterless car wash company that uses 100% environment-friendly products which protects your car from the harmful elements present in Metro Manila.

This is the reason why we have been featured in several TV shows such as GMA7's Unang Hirit and ANC's Green Living. We have also taped an episode with Solar Sports' Auto-Extreme. Manila Bulletin's men's magazine has also written about our company.

How were we able to do that without spending anything?

First of all, GreenRides did not copy any business. We just focused on a waterless car wash and wax. This is a huge gamble on our part since there a lot of traditional car washes. It seems that every corner has at least one.

One of our client's cars.

Second, we offer our customer a guarantee. We guarantee that whenever we clean your car, it will be protected from dirt, dust and other harmful elements in our country. Furthermore, when our customers get that GreenRides service, the showroom shine and luster of their vehicle will be maintained and retained.

Third, we are aggressively expanding. Currently, we are set to open in several locations within just three months of operations. We want to share the GreenRides experience to everyone. We have also expanding through franchising.

Fourth, the owners of the company are always available to our customers. If they have any questions about our products or services, or if they have any issues they can always talk to us. We want to take care of our customers and make them feel that they are really important to us.

Explaining how the service works to Mr. Joey Lina

We could have chosen to hire a receptionist or a secretary to answer calls or talk to clients but we have chosen not to. We want to become our own marketing specialists.

Choosing The Right Business

Is there a right business to venture into? Is there a low-risk business venture but can give you high-yield or results?

The answer is: None.

People who want to be their own bosses tend to look for safe businesses to put up. They look at the current trend or fad, source suppliers where they can get the materials or produce at a cheaper price and then sell their products or services cheaper than the competition. The result is a price-war.

Because of the cheaper offering, you may initially get or convert some customers but then your competition will also lower their prices. In the end, due to ever decreasing profit margins, these businesses will eventually shut-down. Furthermore, those who will win in the price war are those with deep pockets and who are the first-movers.

Think of food stalls offering siomai, sisig, siopao and other food varieties. Just walk inside a mall and you will see these concepts often competing for the buyers' attention. Some of them may even be located in the same area.

The entrepreneur losses, the customer wins.Though this is not entirely a bad thing.

Others copy a concept, then improve on it. Think of specialty milk teas. They have been offered in kiosks, stalls and now, a milk-tea bar (Sereni-tea). Obviously, knowing product inside and out and having a big capital would help a lot.

But then when this trend catches up, wait for other milk-tea bars to pop-out in every nook and cranny of the metropolis then the market becomes saturated.

A first-mover advantage will surely help as it usually become the brand synonymous with the product or service; think of McDonalds.

So how can we choose the right business to get into? Honestly, there is no straight answer to this question. Some people would like to say that they ventured into a particular business since it was their passion. Others would quip that since they were experts in a particular field, they have decided to put-up their own company to make money for themselves.

We chose this business because there seems to be a demand for it. Other countries, such as Australia, Thailand, New Zealand, South Korea, are already doing it why not us? We studied the system and saw that it can be tweaked to respond to the Philippine Market.

And to be able to profit from this, we decided to pursue an exclusive distributor/license agreement from the principal. This ensures that we will become the first-mover of a waterless car wash in the Philippines.

How Did You Choose Your Business?

Whenever I am interviewed, I am inevitably asked this question... How did you choose your business?

It is understandable since a lot of Filipinos would want to put up their own business but don't know where to get into. Sometimes, they just go into franchising a food cart because someone they know is in it. Or they join multi-level marketing companies because of the so-called training and support group.

However, like most people who want to go into business without any passion or technical knowledge, they end up confused and bitter. Quite a handful have even lost their savings because of it.

So why or how did I come up with this business?

I must give credit where credit is due. I was talking to my partner about the possibility of putting up a car wash business that will cater to condominium tenants and village residents. Of course the first hurdle that we thought of was where to get the water needed to clean the cars and how will we transport it.

From that statement alone, you can see that there is a problem that presents itself with a profitable opportunity. If you must know, condominium rules and regulations strongly discourage the washing of cars inside the parking premises because it dirties the area and might become a breeding ground for mosquitoes.

Furthermore, village residents (especially in exclusive villages) need to go out to have their cars washed while they are waiting in an open area, normally beside smoke-filled roads and water being sprayed a few feet away from them. This is the reason why the customers of car washes are guys. The fairer sex would normally go to mobile car washes found inside malls.

Demo with Mr. Joey Lina

She was the one who searched for this new concept in the Internet and found a very viable business opportunity from NoWet Waterless Car Clean in Australia.

Going back, how did I choose my business? Because we, my partner and I, can see that there is a need for it. As for the demand? Well, that will be the subject of my future blogs. But it will be a very practical and real world lesson for budding entrepreneurs and management students.

The first thing to ask yourself when thinking of putting up a new venture, who will be your target market? Or is there a need for your product or service?

In our case, yes we found out that there is a need. And we are happy to note that our venture is slowly being recognized by different organizations. We have been featured in GMA7's Unang Hirit and ANC's Green Living. In the next few days, Manila Bulletin will come out with a magazine wherein there will be a write-up about our company. Solar Sports has also scheduled a taping in our first shop.

Let me ask you a question; what business do you want to get into? And is there a need for your product or service?

Starting Out

Filipinos beamed with optimism when the son of late Sen. Benigno Aquino and the late Pres. Cory Aquino became President of the Philippines last year. He is not the most qualified among the presidential candidates but most people see hope that he can change the corrupt-culture that has entrenched itself in Philippines politics.

I did not vote for him but as a the President of our country, I have wished him well.

His campaign slogan was 'kung wala korap, walang mahirap', or 'if there is no corruption, they will be no poor' Filipinos. It was by itself a superficial analysis... but hey, it would help in making easier to do business in the Philippines, I am all for it.

Sadly, after nearly a year in office, it was all rhetoric. Let me elaborate:

Almost 90% of the jobs being generated come from Small to Medium Scale Enterprises (or SMEs). Thus, government should focus more on helping them out. Aside from making it easier for SME's to register their businesses, there should be a concerted effort in promoting Filipinos to create and venture into their own businesses.

Alas, this is not the case. While I understand that local government units have their own charters and laws when it comes to business registration, it becomes a pain in the a$& when there is no common procedure on how to go about registering a business on the local level.

It took us more than 2 weeks and several trips to the City Hall going to different floors to get a business permit where the time could have been actually spent in marketing our business and getting clients to come to us.

Wouldn't be easier if all LGU's adopt a one-stop shop where business owners can register their business and get the permits within 24-48 hours? It would be very easy to implement that; and it will also lessen the corruption at the local level.

What am I saying? If want to create more business opportunities, it would help to make the registration of businesses a lot easier. The national government should take the lead on this. If it doesn't or it invokes LGU autonomy what will happen to the Public-Private Partnership program it wants to pursue? The Private entitites must register their businesses with the LGU's they want to do business in.

A concerted effort must be made to streamline national and local business registration. I believe that if only all Filipinos register their businesses and the government make it easier for them to pay taxes, the national government will have enough funds to pursue social programs that will ensure to improve Filipinos lives.

Entrepreneurship (Walking the Talk)

It has been a couple of months since I have written a blog. I have been busy with my new venture, GreenRides - a waterless car wash and wax (www.greenridesasia.com).

In my previous blog posts, I have asked readers and those who want to put up a business to create a niche where they can differentiate themselves from their competitors; to become innovative and open to new business ideas instead of following the current business trends. I am now walking the talk.

From now on, you will be updated about the challenges, victories and other stories of being a trailblazer in a creating a new segment of the market.

Why did I choose to compete directly with traditional car washes that offer their services for lot less? Simply because car owners deserve more. Cars are the second most valuable investment anyone makes, following only their houses. It is very important that cars are properly taken care of so that it will last for a long time (giving its owner a reasonable rate of return).

Some car washes use detergents that are harmful to the car paint. Furthermore, when sprayed with water and later cleaned with a sponge, the grit isn't removed from the car surface - it just rubs the surface. This is the reason why you see swirl or 'spider' marks on the paint work of a new car.

Not a lot of people know this that is why we have to go on an educational campaign to convince people that using the traditional method is actually harmful to the car paint.

As I go along, I will be writing more about my experiences so that any student of entrepreneurship can learn something from me.

As I have said, I am advocating for people to go into niche markets where it is very profitable and they can deliver excellent service. IT AIN'T GOING TO BE EASY BUT IT WILL BE WORTH EVERY PENNY.