I recently quit my job as president of Philtown Inc., a large real estate company and am finally moving on as an entrepreneur, my lifelong dream. The move is definitely not for the faint-hearted or the non-adventurous types. It was probably the second most important decision I have made in my life, the first one being my proposal to my better half, Rica. Philstar.com president and CEO Kevin Belmonte told me, "Rally, 99 percent of the people I know would die to have your job, so why quit and be an entrepreneur?" Before I could answer, he quickly added and answered his own question, "But on second thought, you are not part of that 99 percent."
The experience is best described as lonely, harrowing, challenging but definitely rewarding. Although the monetary rewards haven’t quite come in, since I quit barely two months ago from my old job and recently started a new real estate development company, XCELL Property Ventures Inc. a few weeks ago, the payback has just begun. The initial rewards I speak of come from the satisfaction that when you wake up everyday, you know you are your own boss. Although being your own boss is a daunting task, especially since the buck always starts and ends with you, as a seasoned professional – battle-scarred and wiser from the decades of being a entrepreneur for others – the new job is much easier since you know what you want, you know how to go about getting what you want, and eventually you just do it, without the constant ping-pong of ideas in the corporate bureaucracy. The satisfaction derived from actually seeing things actually work as planned, is invaluable. And it is with these small successes that you lay the foundation for a much bigger success. To top it all, if you believe what most of my friends and acquaintances say, about me looking a few years younger now that I am an emancipated person compared to the time I was a full-time employee, that compliment, in itself, is priceless. It ‘s like having stumbled upon the fountain of youth.
But might I suggest a few important steps one has to take before taking the plunge to entrepreneurship. First, plan ahead. A one-year planning time horizon is necessary before taking the plunge to ensure that the risks of failure are minimized and if failure does happen, contingencies are in place. In planning the move, one should prepare a personal cash flow projection to sustain your household expenses. The money for start-up capital for your planned endeavor, and at least one year’s worth of operating expenses for the household, should be set aside from free cash. This is what we would call risk capital, which is the amount of money you are willing to lose just in case the business doesn’t turn out to be a success. Second, your wife should buy into the whole proposition, that way there is no looking back. Remember, once you are on your own, your only support group is your wife. She has to be as committed to it as you, since your success as an entrepreneur will allow for a richer family life. Thirdly, in choosing a planned endeavor, enter into a market segment, wherein your core competencies as a professional are best utilized. Don’t enter into an industry that you are not familiar with. The same old principles on corporate strategy apply for would-be entrepreneurs. Fourth, once you have chosen an industry, go for a defensible market niche, one that you can enter and swiftly conquer without attracting the big players from reacting and pouring millions to kill competition, yourself included. In addition, within that niche, you should come up with a unique selling proposition for your chosen product. Fifth, don’t go at it alone. Invite partners, who not only bring money but much-needed strategic thinking and connections. Of course, it goes without saying that you should be able work well with these partners. Sixth, invest in good employees who share your vision. If you have to, give a portion of the equity to your core group. Nothing empowers and motivates people more than an equity stake in the company they work for. You will definitely get the extra mile or the "malasakit" from them when needed. Seventh, make sure you enjoy being an entrepreneur and infect everybody with your enthusiasm and optimism. A clear vision, a positive working environment and a strong resolve to succeed are keys to weathering the many challenges that will come your way and eventually lead you to success. And lastly, the eighth rule and my lucky number, plan for success. Although, one has to keep a tight rein on expenses, one has to implement based on the assumption of succeeding. Since anything worthwhile doing is worth giving it your best in a tough market environment, the consumer will only buy your product if you believe in it. And the only gauge on how much an entrepreneur believes in the product is the amount of marketing support he provides. As they say, build it and they will come.
If one were to ask you, "Aren’t you afraid to fail as an entrepreneur?" All you have to remember is that parable of the 10 gold coins in Luke 19, verses 11-27, which continues to guide me. In a nutshell, a landlord gave each of his three tenants 10 gold coins each. The first one kept it in a safe place and returned the same amount to his landlord. The second one lent it out and earned a reasonable amount of interest. He returned the principal and interest to the landlord. The third one decided to invest the money in a business and earned a substantial return, which he gave back to the landlord. The landlord took all the money from the first and second tenant and gave all of it to the third tenant. Now, let me ask you, succeed or fail, which tenant of the Lord do you want to be?