, YOUR, ULTIMIAT'E

STREET-I IV-SIT I EEl GIUIDIE

, 10,SI REET -S,MAIRT 5-1 ,-OIPPING -II~ 5

• FRIOIM TI A " GGIE TID MALLI: HIDW 3

lEN _ R,E'RIENIEURS MAD'E THE JUMP

• PLUSI YOUR DIVI DIREC:TO 'Y 2010 - lOVER 100 SUPPLII RS!'

HOW 0 MAKE YOUR SOCIAL ENTERPRIS PROFI ABLE

Tl S TO AVOI ,AND RESO -YE

FRANCHI - ERR' TORY CO- - ~ LIC S

VDIUR ULTIMIATE

STRE-T -IY-S[T'REET GUID'E

·10 S[TREET-[.S,MAR _ SHO'PPING· 11-5

• FRIOIM TIIA'. [GG,E TID IMAL,L:: HOW 3 'ENTREPJENIIEURS " •. A "IE THE JUMP

• PLUS! ·YOUR DIVI DIR.EC,T'ORY '2,D10 - OVER [100 SUPPL IIERS!I

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--~ I CRISE TE _ ... TORY CONF Ie s

Careful planninq and a nofrills approech allowed Consolidated Dairy to take Ion biqqer competitors

TO MANly WOULD-IBE entrcpre ncurs,

0\ 'I] i ng and ru n ning a business j a tickcl to finaru-l (] l i ndcpcndence. The reason many "rant 1.0 own a busi rtcs: is h .h ~I Hut

t the employment ~rlnle and Ito become on -, 1"·~1 b 18S, But lo rv urcel 'r{o .. -O~ muna f[1 ~ dir ~et'~H' of'Con oliduted Dati r y 'I nd Ii rozen I~ ood .0']'[, , .. busi nes sis someth i: ng I 0 h(:~ nu rtu red ur d u ~ ~i rr ply ]11 a n il~!pd.

Consolidate I )ajry~s artcd lin the ]9' Os by 1(0 ~ par nts, is Ie n' . of the

~n u n try '..;; Vi/ ho ~ c s 1.1, ~ ~ " a nd dis tr i I· u 0 rs 0 f

processed '1, )od, ]J'L the company b hind SL·Vf.'~"~d popular brands, i ncl uding ]v] ilk Maglc ~ ;J I'" ~£ '. ly-to d~"~ 11k pa steu lzed rnill ; 11 r 'H h~ S" CO( k- it you rsclf Fr nch rrjes~

, ndl: "IU(,( ~'~ag~'f readv-l o-drink coconut

juice exrructed from YOUI g COC'l nuts.

T" an interview with E~\l"I['RErnE~E[TBji 1\.0 reveals how , ~D rsolidat d airy grew Ir Hl1 s tr "ngl~ h to strcr gth ov r hi' j '"IrS,

LESS IS MORE

The frjir~ t th ing one nul lees wh .n one sl ('~~S i nlu Ko 's offic ij s th ~ t, well, h ' J1'18 lIDO

ottlc ._ Thi ucccsstul ~ iH~ 'i 110-( hli n se entre rencu r decided long ago that havhu; a wa Icd-off'worklng rnr 11] orh is nwn wasn 'I~ nece ssary, lnstead, a] ~ he needed wa a JOI g worktable and a space at the

V( 'I~y end of the fficc fl ,I the same arcs where ull . ther .mployee ~ di Uu i r work, J I is: price is n uch like a Leuc rcr's d: esk a the head of the cl i)SSrOOllL

Big h t th e n: in ac 11 U]1 rn H 011 e' L 'c-r l"t • t t o

'r o's succ So': 'I rv to. he lh riftv and ,"ru~a I, (11 d also don" be' show-off. n r lea.' ample, try to resist buyi ng that Cucci hag Dr J ou I~ Vuitton wa ~ ll~ l a nd usc [~H' rnonev instead

..

is the way to go, he explains. "re always "~uakc it a ~f]( int h~ I nke nut on ly lu 1 020 pcrcci I [of i he e am i nasJ us prof l. ~J nl

th l r -st ''\'C plow l ack [1 t U bu sir e ss." This guar.ant ", tho l they ~t3r on lop of d. "Vl'~OT)nlellts i 11 park~~g-in~~ s t .H't1Y·C, a IH I q uality con trol i 11 terms l) f tech n iquc and lit -ch Iln~ngy.

"JEA OUSY··

,\ lonaside ( thci cia i ~'Y cnrpnr: .. ti( ll. !

C on so ~ i d U ,[ ed Da i rv ad III i t ~ t ) lx- i I] ~ r ( ~ ~ l ~

..

( )f the sm: 11('1'" player ~ in the n iu rke t, Bul

it dues All rc l h,LI n] us ~t: L hv; tl 1'( r I~h he veal'S, Cnnsolidat d ~I hd ry hu . a] '~ ruaclu'd 20 0,30 per ' 'nL ,e. the market shur l [or di'll r,~· product. ~ F r, H11 where duus the u rive to succeed ("( lHC! from? SHrS 1\.0: "Th ere is

..

a corn petiti ve spi rit a IlllU1P: fel low Ch i lU~~S(~. ·\;VC tend 'Ito be '[calous' of our cumpetitors doins lC1ond, 3111(j would do everythl ng in our power to be as good or bel tcr than

I hem."

1\ nd th lsjea lousy, he cxp la i ns, docs

n rt lead to unfair busi ness practices; rather it ~ otnts to a bcllel'arnung Chinoy bu !!;'i ncs SU1 c nth at i f ot h ers C'fJU I d [iii 11 d a 'V;)V

. "'

to make it ill business, S( could thev,

~

.[ 11 .~ he 1(.' ~ se 0 f Consolidate d. D a ~ ry, itt

1 ~ mks atthe broader scope of the cia] ry industry, apart from milk products, It

~ iffers other da iry products, ineludi ng cheese, butter and cream, U alsu helps that the COI]l~]a ny 'i s a I so ~ frozen food CUI")J~ )I~,~ li( m, T"I rat .g~ ves .hcrn a greater ra nge 1 n wh lch to operate ~onsol ldatcd sells d i rcc tlv to other f[ltu::l busi nesses

that hr ve 1101ed of duirv and frozen

food l)r( «lucts + n hu I k 0111 ,(1 day-: o-day basis, T hese include ha kc ry c hain s, manufacturers ofnoodles and crackers, and fast ~ood chains,

lOCAT.ION, lOCATION, LOCATION

'The location mantra is a universal

bus] ness I cnet ~ but a longside busi ness suvvy, C hinoy bu sl nessmen U re k i110\V 11 lor heed ~ ng gt:~)]ll(l ntir- pri rid pies - fcng' shu i ,"vhrn .i.t C'o~.nC's to ch.oosing a. blU.sille·ss

~()cB'1 ij nn,

-".[ th ink. the rnus t ] rnnpo 'Itan~ ~hd ng ina bus'i ness is ·the location, 'j [{o SB\"S, 'I'SO '\~lhen

'V

\Vl" \Nanl an (~ni{'l1; ~)r \\0' hel ~ ('un s ~rul' t ~ n.g;tl

\varehousc, 'Ii;:\,'C' hh"c a geonl~nlrC1i" ,nn.,t. ] Ie ,"vill tel] yOUJ ]Ifthc ~H·operty ~s ~ood for you and \v HI r~,(_"on n1(: nd ~'h'r~·e tlu? InU~l1 g~ll e ~hM)ukl h."' farijng,~' 1" hough ~ha't ~i~. a.F: far a~ l{o "vo~l[,d go \vith :~rng shui~ he notes that other IChinn), huswl1es~nlel1lNnu'ld take it I_u l he eX'[["Clrlle..

HOPE FOR THE FUTURE

l'h.ose involved i 11. ~ fanll iv- r1.1 n business arc ranliHHr ~wHh Unis sayin~: ~.iThe

66 AUGUST 2010 IEN1REPRENE.UR 'PHILIPPI NES

In 21[] 04. eo nse H dated [)€9 i ry and TCZ8 n Food 5 Corp. was narnad on e o~ t he Top 5,[)OO corporations in 'the Phllippines, rising to, 10911 from its past rank of

1548. But the beg~nnings of this tniiv~ng] company can be traced to a srnalt store in Bi no nde that s old ri c e and 5 u qa r. Ma rcelc Ko • Consel.idated D~ir'Y"s rnanaqinq

d i r ectc r, 5 ays thi 5 se rved a 5 his t raini ng

91 reu nd fo r bu siness. 1Ft er,e are 50 me of 'il:h e Lessons he learned.

1. Customers take lop priority.

Ko's family ~ived in a two=stcry wooden how se 0 n Elca no Str e et. li ke ,i3Il lot of

Fi li pi no ~ Chi ness hom es, the 9 Fe LI nd Iloor was th e stc re a rea, wh i ~e th eo top HOD r

se rved a 5 u~ e livi ng qua rter s. TI~d 5; 5 et-u p was "quite convenier1l'ti" Ko notes. "Fven on Sundays,. ~f some customers knocked on au r de or, vee we re a bile to go clown an d '5 e rve ttlh e~ r req u ireme nts.'

2~ S'~art them yourng.

E l( P e Ir 'j' e nee i 5 t r u l y the best tt e a c her, Klo and his brother were in their early ~eens wh en U, ey beg a n ~e lpin 9 ~he~T 'P a rents run the stare'. ·'At that tlrne, most of our custornersstllt paid in cash. Sometimes the rnon rrt'f wa s ~n bu n d les, but the ba nk only 'wi!HThted to r aceiva money that was neatLy tnldsd. I remember ccuntinq and arrang ing ~h e ca sh into bun d le s of' 1 rO 0 pie ces each. It was quite fun ! '"

3~ NIG ~ob is. too rnenlal, even i'~ you are the COO [chUd of owner] ..

K.o took 0 n mo re duties as, he grew 0 tde r, Sernetirnes he'd act as iii checker in ~he

wa re ho use' 0 F' do de liV81IFY whe neve r on e of their workers was absent. On Saturdays, he "wen~ out and collected payment from IOU r C LIS to rners." B ei ngl ab [e to do a ny task your'self - no, matter how srnalt - adds

to an employer's "aura o~ respect," Ko

a dvis 85 .. Such Hexih i lity 5 haws that you know wha~ you're do:ingl and that you're ready to p~b:l~ in wtH3'n nec@Sserry.

...

fl. Appearaf'l(leS can be dee,eiving.

Re latio nshi p5 a Ire bu i It on t If" LJ st, :5 Q bewa re of lelt~ng down your guard. C[ients with

co nsiste nttty goo d cred it rece ro 5 a re not exempt from wrcnqdolnq. Ko points out that 50 me cu st 0 m ers can "bu lld w p the ir reputatlen by lbeingl good ~alyers from the start like always paying in cash for the first ~ew orders." 8'ec:a use they've sec ur ed y'ou r co nfi dane 9. eventual L~y yalll a U()'w the m ~D p.ay in c hack. But 0 n r@ ·th ey"ve ac cu m ula t2d a big amount o'f cred ~~ w~th Y'O u. that's wh e n "t ney w.i U 5 udden ly d lsappea r an d all th ei r checks wi lL b oun ce r Ko 'wa r ns.

5 .. Focus on th i ng 5 that matter .

If you WEant to guard against bad 'credit] don't be a big spender, Ko suqqast s,

I nvestrne nts in e q u i pm ent I i nfr astructu re a nd ~m p roverne nts alre (I K, butt foreg 0 a holid ay abroed era cost ly car, especta lly j f irs beyond your means. Mere impcrtentty, .. kee pi a [ow prof le, so a 5 not to a ttr ac t etten ticn and avoid trcu bte,' he a de 5.

••• U ••• ~ ••• ~~ ••• !I ••••••• ~~ ••• ~ ••• ~I ••• n' ••• m~ •• m~~ •• m!~ ••• a~.m'ml •• mm~ •• m~a •• 'r~.~~~~.~~"~.~~'~aa~~~==i~~i~~+~~~ ~~~~+,~~~+t~~,++~~~~~~~+~~~~~~.~~~~~~~~ •• ~~~.~~~~ •• d~~ •• ~,~~ •• y~~ •• gYIU •••• ,

· ,.

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~()od fortune tJfa hl1sin,cs~ dOCSI1't Ia.st rno:re than three generations. T'he firs g;pn"_n~t mOIDl (line:=; ~h<c h.al"'d \\fork; I-he scc~)nd gcncraUun nl.~.·i ntRi n s the busi ness; and the third spends 'it" It Hila)' seenl peSSi]llisti('~ but Ko HUy~ ~'·thl:~'c ]s ~r'ca Illy SO~'nc Ih'u I h i, n

H.,~'

Yuu nge~· ~(~ne:rb~tions ~cncra'll:Jr do not have to vvurk ;;IS ha td the- a~ the. r eklcl'"st kno\>vi '11g that the fa nl ~ly eITterp~~:~se ~s doir!Eg ·\vc.~.l. ," m·cad fronl sOJ1ll,e'\Afherc

fhnt tilt, V\t()I;o~t I hilllig a parcn~ can do

h) the] r eh i k1 reI] i.s to give thc.1:!11l lots of nl0nev H fh:~r they pass H\;V~:J~,r""~ I{n sl'il a res.

~ ~ ~

But he ~ ~ I -upcfu]1 th~Jl his eh Ut:h~rn ·':V.i H

1"("~~ist the ternptat]on to coast an ou:he~·

people's efforts €lnd ~ri.11 nlaJo.~~ their

o.\vn ('nntr'~bLlti( )ns to. ti1(' hllsi -[U '~~. \Vilh l(u shou"in~ the "'ay~ the heirs tu (~onsolidated' suclress are.aJ I ~et f()F the

futLlr'C.~·Khlis MaliC R.'o'n.quUto

C~)NSl H ,TTJ..-\TRr) nJ\.l RY- J\~[) 1" I {( ) Z ~ ~: ~ I'~ () ( ) ~ ) S ( ~ ( ) it I).

www.consoUdatedidairy.com

181F Unit del San Fernando St,

Bli flor1do~ Mani la 1 []06

~6321 242-430.5; (632'~ 242-45,66 con so lid fa m ozeo m. co m