The Hyundai Challenge: Something for the Would-be Entrepreneur to REALLY THINK ABOUT.

As I looked out the window of the bus I was riding just as it passed the Robinsons Galleria Mall in Quezon City (Central of Metro Manila), I noticed this stunning white car with the shiny black top and swooping lines. 

At first I could not tell what car was it but when it moved forward, I was surprised to find out it is the new Hyundai Sonata (a car that is set-up to go against the likes of market leaders Toyota Camry and Honda Accord).



Hello????  An upstart car made in Korea going against the established Giants Toyota and Honda.

For some facts, during the global car crisis that saw General Motors file for bankruptcy and Toyota to show its first loss in ages, Hyundai was the only one to show growth in sales (albeit not so big but a growth nevertheless when others showed negative sales).  In the Philippines, Hyundai has beaten terribly Honda and is now NUMERO TRES after Toyota and Mitsubishi.  I am sure they will soon be NUMERO UNO.  I see Hyundai Tucson with its beautiful flowing lines (fluidic in Hyundai speak) everywhere when there used to be CRVs and RAV4s before.  There seems to be more Starex vans than Hi-Aces.  They even have a sports car that looks mouth-watering WIDE & LOW-SLUNG, the Hyundai Genesis Coupe with Brembo brakes and 2.0 Turbo or V6 engine (to replace the forgettable Tiburon with the forgettable name).  On the taxi front, it's still Toyota Vios but watch out, the Number One Taxi company group, MGE and R & E, are now trying out 80 units or more of the Hyundai Accent Diesel which is reportedly to have better acceleration than a LPG-converted Vios (who knows about the detrimental health risk associated with LPG conversion kits and the fact that  quite a few LPG Vios have suffered warped cylinder heads as LPG makes the engine overheat versus gasoline). And the scary part is that Toyota will LOSE BY DEFAULT as they do not sell a small diesel car in Manila.

Hey Hoy Hay. . . what has Hyundai got to do with the would-be entrepreneur?  Simply this, EVEN IF YOU ARE THE NEW KID IN THE BLOCK (your the Hyundai kid) entering a well-established industry (the Toyotas and Hondas), YOU HAVE A FIGHTING CHANCE TO BEAT THEM AT THEIR OWN GAME.

If you want to request for further information, send me a message or comment on the above post, please kindly click the "comment" button below this post.

As a NEW FEATURE ON MY NEW BLOG, I am conducting a Reader Survey on "What You Think Is The Hottest Small Business in Manila today". On the Top Right part of this blog is my Survey Poll. Please click your choice as the Best Small Business in Manila and then click "Vote" button.

To see the results of the survey todate, just click the “Show Result” button

Asia Food Expo: Roasted Chicken is a Hit!!! (Check-out Chooks-to-Go at the Supermarket for P169 only)

Chooks-to-Go is a product of Bounty Fresh and thru their partner-Supermarket, they are selling so much!!! The chicken is marinated and for the price, it is even cheaper than Andok's or Baliuag. AND IT TASTE SO GOOD!!!

At the Asia Food Expo 2010 or AFEX 2010, I saw displayed at the HKR booth a Henny Penny Rotisserrie, which is like the Mercedes-Benz of Rotisseries made in USA. It runs on electrics (as required by some malls) and costs a heart-stopping P365,000, more or less. There are LPG-powered units that cost a lot less but check first with the mall if they allow LPG-fired rotisseries.

This could be another Fad or it could stay for a long time if you can keep the cost down. Shopwise has been selling their hickory-flavored, garlic-flavored etc roasted chickens and they used to always get sold out.

Beats having to cook at home when both couple are working.

This is What Happens When I Treat My Lotto Customer Right. . . .

I was at the bank this morning just before lunch and as I was transacting with the Teller, I heard my name called. I turned and I saw my Lotto customer.

He told me that with regards to that certain hard-to-get location for my lotto outlet that I have always wanted, he might be able to help as he put in an application for the space on my behalf thru a friend of his who happens to be a relative and if successful, we just might be able to do business together.

Nothing is definite yet but the fact that my lotto customer would go out of his way to do that and is willing to do a joint venture business with me speaks volumes of the POSITIVE WAY our lotto customers think about us.

Afternoon Talking with a Franchisee of a Known Food Cart Small Business

While at my regular watering hole (actually a coffee shop), I got a chance to talk to the young owner of a long-established food cart franchise and here are some of his concerns:

1. The franchisees feel that they are not being looked after well enough by the franchisor. Some concerns are late delivery of goods and pricing issues;

2. Franchisees are advised only 2 - 3 days before a price change;

3. SRPs went up but product margin and product size remain the same;

4. When they paid for the franchise which included the food cart, the franchisee still had to purchase some ancillary items such as trays and other containers from the franchisor which tend to increase the capital outlay;

5. He tried to get a second outlet at a well-known grocery chain but quit after a couple of weeks when he felt sales were so low that it was doubtful he would meet his rent;

6. Rent is now at the P30,000 plus level for a food cart and some locations are asking for a percentage of sales just like permanent tenants

Train Your Back-up Personnel Before You Need Them

Today, I spent the whole day at the PCSO Lotto Training Center to attend to the training of my new Staff who will be the back-up of my Lotto Operator and to help out when the customer load is too much for both my supervisor and operator.

Most small business entrepreneur will frown at this move and say it is just extra expense and waste of money. I do not look at it that way for the following reasons:

1. You cannot train a new-hire and expect her to be a skilled Lotto Operator overnight just at the time your operator resigns. It takes time for the new hire to get over the learning curve. Rushing the process will just cost you loss of money by way of wrong change and aggravation.

2. You cannot make the Lotto customer wait in line too long. (They will just go to the next-door Lotto Outlet)

3. It is difficult to forecast peak loads in the Lotto business as business fluctuates as when other Lotto outlets are off-line but not you, the jackpot is small and people tend to bet small, calamities rendering Lotto outlets without generators to close down for the day.

4. Lastly, I do not advice pirating an experienced Lotto Operator as that person may also e experienced in manipulating the funds of the Lotto outlet, reselling winning Scratch It Cards that have already been paid to customers and numerous other fraud that only an experienced Lotto operator will know.

The Guiding Principle is Good Customer Service is Good Business.

When Is It Worth the Risk?

We offend ponder this question when faced with a BUSINESS OPPORTUNITY that may never come again, to wit:

1. Should we risk till it hurts? Or, pass on the chance for the Kill?

2. When we take a chance, is that the same as gambling and thus, we must be prepared to lose without regrets?

3. At what point do we stop? Do we touch the kids' savings?

4. Should we borrow from the loan shark or the relative who charges usurious interests (there are!)?

5. There is no such thing as s SURE THING and therefore, there will always be a risk.

6. If you do not risk till it hurts, will you ever improve your situation?


This is a blog post of QUESTIONS. Let me know what you think.

To Partner or Not to Partner?

At the start of a business or when a business opportunity presents itself, a small business owner would have pondered over this question.
What if you did your homework and found the business opportunity to be sound but you are short of cash, would this be the best time to seek a partner?
Take for example this situation and tell me what you think?
1. Partner A has close ties with the Purchasing or Procurement dept manager as well as the department end use of a product that you intend to supply and advised Partner B of the business opportunity
2. Partner A is well-versed in the prospect's Bid Process
3. Partner B does most of the grunt work like
a. Search for suppliers & negotiate the best price
b. Handles costs of communication between the suppliers,
company end-user, purchasing dept as well as keeping
Partner A updated in the transaction
c. Transportation and meal expenses are borne by Partner B
as he is the one with his own personal car (though Partner
A agreed to offset the costs against the project's income
d. Prepare the quotations, emails and other Back Office work
4. Profit will be shared equally minus receipted and agreed expenses

Would you consider this a fair and equitable partnership?

My take is that if I need to increase my business income, I would consider this to be FAIR considering that if Partner A did not advice me of the opportunity, I would be earning ZERO PESOS.

It's Lonely at the Top

How many times have we heard this? Do we really know what it means?

On one hand when business is good, you as the owner, top honcho or The Boss, gets to keep all the profits and it certainly is a nice feeling. But when things go negatively the other way and you need to make painful decisions like firing your best staff, cutting back on the airconditioning and the free meals or some such other unpopular moves, you wish you had somebody supporting you or at the least, understanding why you have to do it but alas, there is no one there guarding your back.

Such is the lot of the small business entrepreneur and the sooner he realizes he has to do it, the better for the small business, In the end, it is hoped that the small business entrepreneur made a good call and the company will come out stronger and ultimately, the people, at least those remaining, will understand.