The start of something big

Starting a business requires courage. Jon Herrera is one of the investors whose rhythm gave soul to the nightclub Embassy in Fort Bonifacio. At 20 years old, he had the spunk to challenge the established nightlife venues. In spite of people telling him that he would fail because the market was not big enough to sustain this kind of a nightclub, he presented himself with his knowledge as a DJ and was brought in as a partner with five other investors. After five years of successfully attracting the young elite to Embassy, companies like Smart, Lee, Nokia, alcohol distributors and advertising agencies seek his knowledge to market their products to the 14- to 24-year-old age group.

Six months ago, Jon opened Greyone Social, a boutique in Rockwell. Our young entrepreneur speaks to us about how to gather courage to invest in a business.

On Finding Your Passion

Jon’s biggest advice is to find one’s passion and make a plan so you will know what you are up against. “You can calculate the risks but don’t let the planning discourage you. You can’t get scared of passion because it is something inside you.      

He also says that talking with successful people will do your career good and if you can afford it, offer to work for free with the masters in business. “Everybody who is successful will share his experience. Look for Ben Chan, invite him for coffee. Ask him, ‘Can I work with you for free?’ Read stories about people you admire. What I do is to read about people who did not have it before and who have it now. I read about 12 books a month, listen to audio books and share my books with my friends. I learn so much from reading and sometimes I think, ‘I wish I had known this earlier.’”

Before he became successful in his own business, Jon worked for free for a year at Universal Records. “I worked as a DJ for free for one year. The value of what I learned is priceless. For the young people who want to get into a business, they must research on it. There will be challenges  and you have to study and try to minimize the risks. You don’t want to study to get discouraged.”

On Listening To Your Gut

“When I invested in Embassy, I used my own savings. Everyone thought we would fail but within five years of our opening, we are expanding Embassy.”

The group took over the MTV building next door and by November, the nightclub will include a 24-hour café, fine-dining cuisine, a club for dancing and private functions. “It is a superb club with world-class entertainment, DJs, sound system, lighting, corporate tie-ups. We will have six venues: a terrace, a members-only area, a lounge, two bigger clubs for two different kinds of music. There is the market here.”

“When people say the Philippines, they say entertainment and when they say entertainment, they say ‘Embassy.’ Everyone talks about us around the world. On MySpace, people come up to me and say, ‘I heard Embassy is so great.’ DJs ask me if they can DJ at Embassy. Funny how news travels so fast, people e-mail me about the club. We are Filipinos, entertainers. We like to give people a good time.”

Jon knows that nightclubs have a life span so they always have to reinvent and grow with their clients. He says he, too, is growing with his clientele. “Their interests, their spending habits and their needs keep changing. Technology is also a factor.”

Jon says that when he was DJ-ing, he noticed a lot of kids were not wearing conventional clothes — they were looking for independent art wear. “People are now more creative, more individual; you wouldn’t want to use what everyone else is wearing.”

Facing The Financial Reality

Greyone Social was founded to fill a void in the market. Globally, independent entrepreneurs are overthrowing big conglomerates like Gap in the jeans market. Many independent smaller manufacturers are taking over to cater to the kids who can sew their own shirts and design their own denims. “This is the market we are focusing on,” says Jon. “In a way our clothes are underground but they are available commercially and have been exposed on MTV.”

Jon admits that in the beginning, they were concerned about the financial aspect of the business. “Just covering the costs for the initial investment: construction, deposit of our rent in Rockwell, salaries of staff, buying products. My sister, Rosario, is my partner so we took it one phase at a time. Phase 1 was buying products ; phase 2 was construction; phase 3 was operations. When we I broke it down, it was easier to accept because when you look at the overall expenses of setting up this business, it is really scary. My courage came from just wanting to do it. But for me, money was not the biggest risk. It was more of my reputation.”

And, yes, working with his sister made getting the business started easier. “We have travelled together to Las Vegas, London, New York, Paris. I can’t relate an experience or a feeling so when I say ‘I like this,’ we connect. No explanation needed. People should always have partners although if you don’t have one, then have someone who can be your accountability check. Someone who can tell you if you are on track or climbing the right mountain. I have a mastermind group who specialize in different areas and industries. I ask them their opinions.”

Rosario likes to watch the shows The Richistans and Net Worth. “We surround ourselves with success stories of entrepreneurs like Richard Branson and Steve Jobs.”

Jon also advises people to focus on a particular thing. “Some people are doing so many things and once they get up on the mountain, they realize it is not where they want to be. Have a legacy. It is a big grand plan but when you do something, doors open. Then 10 doors open. It’s a multiplier effect.”