Global Filipino

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We can’t be successful businessmen if we don’t know how to delegate our responsibilities to other people. This is the main reason why so many intelligent, highly educated Filipinos prefer to work for dollars abroad and remain servants for the rest of their lives. It’s either they don’t trust other people, or they don’t know how to manage other people to make money for them.

Working for the government for a meager salary had been my life for ten years after graduation in college in the Philippines. I had a master’s degree in public administration and few units for my Doctorate in Philosophy, which I did not finish in favor of raising my family. I was one among those Filipinos who believed that having higher education while working in the government will elevate me to the upper level of my position, and have a better salary. I’ve waited for that aspiration to happen, but did not come even after three years I’ve graduated from my master’s degree in public administration. So, out of desperation, I started driving a tricycle instead every after office job to earn extra income for my family.

Even now, so many teachers, are leaving their families on Saturdays and Sundays to go to schools for higher learning, so, they would become Senior Teachers or Supervisors in their school districts when they finish their masteral degrees in education. Millions of us do this, because we believed that becoming Senior levels in our jobs (by having masteral degrees) is the only way to raise our salaries. Out of desperation, these teachers leave their teaching jobs in favor of working as domestic helpers in Hong Kong.


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When I tried tricycle driving as a way of earning extra money for my family, nobody from among my passengers knew that I was a master’s degree holder. Even now, I know, educated people would not do this, because that’s what we believed for decades – “Nakakahiya ang ganitong klasing trabaho.” Most of us are afraid of what our friends and relatives will talk about us if they see us doing this dirty job, in spite of the fact that we were highly educated. That’s because for decades we were made to believe that decent jobs are jobs by people wearing clean clothes, specially those wearing coat and ties. I found that idea wrong, when I earned millions of money instead after two years of starting as a tricycle driver – when I delegated to other tricycle drivers later what I could not do (driving 14 more tricycles by myself) to earn more money.

The difference between Filipino and American families in terms of motivating their children for professional advancements could be seen at the dining tables when they are eating together. Filipino parents tell their children to study hard, finish college and have a good job after graduation. American parents, while eating with their children discuss the day’s trends in the trading market and other business. In short, the American families are talking about business to make money, while the children are young. While the Filipino families were talking about working for other people or how to become servants to earn money. That’s why undergraduate Americans like Bill Gates and Michael Dell are billionaires, while intellegent college graduate Filipinos are merely working for their daily subsistence in America and other parts of the world.

Nowadays, in America, you could no longer earn big money by working too much, or having double jobs. For a single job in America, six people are aspiring for it. So, even Filipino Nurses now are having hardships doing overtimes and double jobs at other hospitals, because there are more Nurses who offer their services at lower rates.

After 17 years of working in America as a fix salaried consultant for other companies, I’ve found it for the second time that you could not advance yourself financially if you will just be working for others. You should learn to start your own business instead, and let other people make money for you. To be successful in this venture, you should know how to manage people, and delegate your authorities to them. Let other people earn money for you.


 


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How do you use other people’s money to start a business, or even expand your business? Contrary to what majority have thought, that you can’t start a business without enough money to start with, I started my tricycle business at my hometown from P500.00 only in 1989. I used that money to buy an old, dilapidated tricycle sidecar which I attached to my five-year old motorcycle. The brand new sidecar that year was at P7000.00 to P15,000.00. While a brand new motorcycle then was from P40,000.00 to P50,000.00 for 100cc models. By November 1991, before I left, to migrate to US the value of my 14 tricycles was worth P1.1 millions.

When my tricycle driving started to give me additional income, I started saving my extra money at our Gubat St. Anthony Credit Cooperative. From my saved share capital of P1500.00, I was able to borrow twice that amount and used it to open a small sari-sari store. The place that I rented to start a sari-sari store business was a big grocery story that was left by the owners when they moved to Mindanao. Our neighbors would laugh at my store, because it was really so huge, but I didn’t have enough display or products to sell from the meager capital of P3000.00. I could still remember, that to have varieties of display, I would only buy (for example) three pieces of instant noodles, instead of one dozen for a particular flavor. In order to make it grow, I had to roll my tricycle driving income to buy more items for sale, until that huge grocery story looked like a real grocery store when sales trucks from popular products started coming to our store and leave their products to be paid on a certain period like after 30 days, 60 days, or even longer. Two years later, my small sari-sari store that started from a small capital of P3000.00, grew and expanded into three grocery stores, and a restaurant.

So, from these businesses how did I use the strategy of using other people’s money to start and grow a business? As I have already mentioned in my sari-sari store business, my initial investment in our credit union was only P1500.00, but I was able to borrow P3,000.00 – the other P1500.00 of which was from the money of the other members of the credit cooperative.

As I expanded my sari-sari store into the level of grocery store, I started accepting offers of sales agents coming to our store with their truckloads of products to leave their products, and I’ll pay them after 30 days, 60 days, or beyond. I never let the sales from these products sitting on my drawers. I see to it that whatever sales I would get from these products left to me, I will roll them for buying fast-selling products.

When Beer na Beer was introduced in the market, the sales agent of this beverage would leave me several cases of beer. But since it was a new product in the market, drinkers shy away from buying it and preferred the popular San Miguel Beer. From this situation, however, I’ve thought of selling Beer na Beer at manufacturer’s price in our store – with no profit. But after selling all those beers, I would actually use the sales of Beer na Beer in buying rice, sugar, charcoal, and other fast-selling products. By the time the Beer na Beer sales agent gets back to my store, I’ve made hundreds of profits already from rolling their money to other fast-selling products.


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How did I build a tricycle business from one old tricycle unit to a fleet of 14 units? – the biggest number of tricycles owned by one person in our town. Instead of getting one brand new motorcycle, and pay it full, I would go to the dealer’s manager instead and tell him that I wanted to get three motorcycles payable in one year, with down payments from that amount for one single motorcycle. Now, which one is better, having one brand new motorcycle, or three brand new motorcycles?

Once the three motorcycles were converted into tricycles, I started paying back the motorcycles twice or double their regular monthly amortizations, from the income that I get from these three units. So, in less than six months, I have three fully paid motorcycles already for my tricycle business. By the seventh month, I would do the same strategy, adding three more fully-owned units before the year ends. To shorten the story, using this kind of strategy, I was able to build a tricycle business with 14 units in less than two years. Portions of the money I used to build this business were from the motorcycle manufacturers and dealers, when they loaned me their motorcycles to be paid in one year.

They’re not hard strategies, if you’re going to analyse them, right? You’ll never find them in the book, only in this blog. So, if you’re interested in starting and growing a business the “street-smart” way, please regularly read my articles here. My next article would be “How to use other people to make money for you?”


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