Early traces of the entrepreneur in me

I remember one of my first sales: it involved vegetables and fruits to about two to three of our neighbors. It went quickly. And the products were all sourced from our refrigerator! (I thank God my mom was more amused than upset!)

“This was one of the early traces of the entrepreneur in me (and how I would run to family, in the future, for start up — or stop gap — resources).

I actually finished Architecture at the U.P. Diliman. It must’ve been due to my father’s influence as a civil engineer from the same state university. But I learned later on that business and motivation would be more of my passions than designing an award-winning structure, and this was from my local and international exposure to the global youth NGO, AIESEC International.

When I returned to the Philippines after my one-year stint as president of AIESEC International in Brussels, I still had my architectural degree to finish (forever grateful to the university officials who gave me an extension in the MRR or Maximum Residency Rule! I was early on a “life-long learner”). But even as I submitted my long delayed thesis with the help of my very gracious group mates, my eyes were set on setting up my own consultancy and training business right after graduation.

My parents were my first investors. And no, I am not just talking about infusing money as I set up my own company; it started from the time I was conceived, ushered into this world as a new born, and provided nurturing as a student thereby given the opportunity to, literally, “engage with the world” and “meet a need” and/or “make a difference” (the purposes of enterprise). May we all consider this eternal truth when we succeed and prepare our “thank you speeches” in the future: our parents invested in us first.

I must acknowledge my mother’s role as “chief educator” in our family of, hear this, nine children! She was our first official teacher, as owner and principal of Infant Jesus School in Quezon City where we were all “encouraged” (we didn’t have much choice.) to take our pre-school education. Note the twin function she took on as both school owner-entrepreneur and academic principal (having taught in the state university with a degree in home economics). Education is easily set aside as a capital in any business. Farthest from the truth. To my mind, it is far more important than money itself, and if one has the chance to deepen it, continually investing in it will be a key to sustained financial and business growth. (Hence, my being here in INSEAD France for my 9th module in an ongoing Executive MBA and my affiliation with various institutions where I access — and occasionally provide — free business advice like Joey Concepcion’s GoNegosyo network.)

Of course, I must also thank my father as first financial investor to the business who provided some capital for a share in ownership. Am particularly thankful for his long (very long, I’d rather say) patience in seeing his investment return in actual financial benefit. Much like a bank’s term loan that expects a return but over a longer period of time. I will admit that this patience I saw as a “vote of confidence” made me work even harder to achieve profitability. This is a message to all creditors, including parents: practice Authoritative Leadership, which calls for high expectation and also high support. Authoritarian Leadership, on the other hand, gives high expectation but very little, if any, support.  (Too many parents drop the expectation component and content themselves with just having been “of help”, or priding themselves with fulfilling a basic “obligation”). Thanks Dad, and allow me to announce through this column that your next check for our latest dividend distribution is on its way!

Through the years, I’ve learned to mix financing options from family sources and bank services. Term loans help with bigger resource needs such as major growth or expansion activities, large infrastructure or logistical requirements, and re-financing options. But if I may stress one important feature of a banking partnership that sometimes are “un-enforced” in family transactions: the existence of the monitoring function (not just the sourcing option) that has helped me and my team run our business with more responsibility, and, accountability. The pre-loan requirements, the regular reports, and payment schedules I’ve had to adhere to with partner banks through the years have kept our operation in check. Although business has been great over-all, not all years and periods have been successful. I will be first to say that many of my failures and mistakes had to do with missing out on studying the financial implications of decisions (or indecisions) we made as a team in the conduct of our consulting and training operation. Hence, the value I put in my partners who have mastered this field of expertise.

Actually I am excited about completing the 10th module next month of my ongoing EMBA as I begin to finalize and defend my thesis, which involves the growth of our management consulting business. And while I am looking forward to implementing our expanded vision, re-configured strategy, and re-designed business model, I will be needing additional money. Calling friends and partners interested to engage further in the learning industry! Let’s talk! Or my partner bank perhaps? Can you tell me more about your new term loans and together assess if it will be best for me to access it?

As I mentioned in an earlier column, I also received my first “extension” credit card from my father when I started up my consultancy, and while these tools have evolved through the years with more services, that card helped me for short term, “stop gap” and immediate funding needs that I needed to keep my business running at all times. Today, there are credit line options from banks that help us provide that “bridge” when needed to sustain day-to-day operations, or to seize immediate business opportunities as they come (Or crisis situations as they surprise us!). Instead of strategic financing decisions, these short-term loans are tactical moves that help us keep our eye on the bigger war and not distracted by small pocket battles needed to be won just for today. These may involve having to fund a three-month outsourcing need, a quick, unscheduled trip to a potential international partner, or to cover for increased overhead expenses on a particularly difficult month for collections.  As the Boy Scouts pride themselves: “Laging handa.” (Translated? Ready short-term credit! To think of it now, this is another service I have yet to avail of from my partner bank. Calling any BPI Family Ka-Negosyo credit line officer!)

To those who have yet to consider starting their own business, either as a full time option or a part time complement to your existing professional commitment, consider the franchising alternative. Franchising, especially from established and credible institutions, “forces” you to practice discipline, engage with a support group, and keep your eye on “facts that really matter” as you pursue your passions in life. One of the most successful business expansion decisions I ever made was partnering with three other professionals (including our co-STAR writer Francis Kong) in setting up Inspire Consultancy, a franchise of Dr. John Maxwell based in Atlanta. For those interested in trying out franchising but are in need of capital, consider working with franchise institutions with accredited franchise partners. They will not want you to fail for your success will be their own.

I am amazed, and surprised at a consistent advice of our ongoing EMBA program’s top finance experts: “There are no financial problems, only business problems.” In the end, succeeding in business is about who you are and what you do on a regular basis. The rest are either tools that support you or the results of your actions revealed over time.

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BPI Family Ka-Negosyo Business Loans makes it fast, easy and affordable for you to grow your business. Visit www.bpiloans.com or call 754-NEGO(6346). You may also email your inquiries at brandbpi@bpi.com.ph. We welcome your feedback! Reach us at wealthness@philstar.com.ph.