Doing business their way

MANILA, Philippines - Most businesses start from interesting, serendipitous beginnings. While some businesses are created from low satisfaction level a person may have had encountered on a particular establishment and the desire to do better, for some, it is a hobby that has become lucrative, or has been inspired by the continued work of a family member or a friend.

Monique Hilario,  co-owner of Lay Bare Waxing Salon, recounts his discomfort led her to dreaming of the ideal waxing place  that she would not mind paying extra for, so long as everything she is looking for are present. “My sister Fiona and I used to go to beauty parlors to get ourselves waxed but there are many times when we became frustrated. Beds are uncomfortable, waiting times are long, and many times the waxing treatments would hurt making the experience unpleasant. We wanted to change all that. Also, at that time people were a bit iffy about getting waxed, the experience was somewhat awkward for most people,’’ Hilario says.

HIlario then decided to try putting up her own salon and offering all the things that make a customer like her happy and satisfied. Lay Bare Waxing Salon thus opened in 2005, with its first branch in Makati. Now, the salon has over 30 branches nationwide and had even opened a salon in California, USA.

Victor Fernando, co-owner and franchise director of Big Apple Express Spa, recounts a similar experience prior to starting his business. “We had regular 9 to 5 jobs at various corporate establishments. We would frequent high-end spa establishments to get rid of the stress accumulated due to a corporate lifestyle. Although the services offered by these spas were high standard, we just felt that forking a thousand pesos or more for one massage is a bit steep. The locations were not very convenient as they were day spas situated outside the metro. From those experiences we came up with the idea of developing a spa establishment that is both convenient and affordable without sacrificing high quality customer experience and services.”

On the other hand, YSA Skin Care’s president and CEO Roberto Gerald Nazal II, remembers his mother Dr. Isabel Nazal opening a small dermatological clinic at their house. Word spread about her services and her effective products that when she opened a bigger clinic and customers started pouring in, work proved to be too exhausting for his mother to do alone.

“In the early ’90s the aesthetic / beauty market was growing. I started to start YSA with my mother as my inspiration. Eventually, we saw the need to expand the business and reach out to potential clients who did not have access to the kind of services we offer. And then, with the expansion of company owned clinics, we also received inquiries on franchising from clients.”

Contrary to belief, a large capital is not needed to start a business. Fernando and his business associates pooled together their personal savings to start YSA. The same goes for Monique and Fiona Hilario who did not imagine their waxing salon to go national, beyond the ‘’sideline’’ that they originally planned.

The full return of investment (ROI) is not always guaranteed in the first year of running the business. Hilario explains that even after they opened a second store six months after their first store, they didn’t get the full ROI until they started franchising the salons.

As for their secrets to success, YSA Skin Care attributes their success to constant innovation, maintaining a reliable brand and keeping a good relationship with customers and franchisees. YSA Skin Care had an average of two years for their full ROI.

Big Apple Express Spa’s attributes its success to choosing the right franchisees to become partners with. “The right franchisee is essential as they will make or break the brand depending on their performance. That’s why any franchisor should take time to properly screen and evaluate any potential franchisees,” Fernando explains.