Designed for Growth - Planters Development Bank

SME
PROFILE
Patricio Amadeo of Phela Resources
SME FOCUS
Coupon sites: are they worth it?
Why some businesses stay small
SAVE MOTHER EARTH
GPIoS teaches businesses that
profit and environmental
responsibility go hand-in-hand
A PLANTERSBANK PUBLICATION FOR ENTREPRENEURS VOL. 07 • ISSUE 01 • FEBRUARY 2012
Designed
for Growth
Gerry Choa of PRO-FRIENDS
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Publisher’s
Message
New Beginnings
With the new Dragon Year upon us, we feel it is a time for new
ideas, new ambitions, and brand new directions. As we turn a
new leaf, this issue pays special attention to changes—we move
forward with vitality and breathe new life to the first issue of the
SME Magazine for 2012.
It is the same periodical you have grown to love, replete with
insightful reads on topics with strong focus on entrepreneurship;
now with a vibrant new look. Alongside this change, we
have added new sections which we hope you will find most
useful. Handy tips and trade secrets grace these pages, making
the magazine a treasure trove of business information and
motivational articles.
Our inaugural theme for the year is something that many SMEs
aspire for: Growth. Given the country’s dynamic yet unpredictable
business landscape, companies that make steady progress happen
to serve as inspiring role models—steadfast and resolute in their
vision to continue developing. Our main stories focus on two
firms that beat the odds and have proven that hard work and
determination pay off. It is with great hope that these reads will
inspire you, regardless of what industry you happen to be in.
We do hope that you will like the changes we have made, and
that you will, as always, find SME magazine to be an invaluable
source for information and learning.
May this issue provide new ideas, inspirations and ambitions to
take on the challenges of 2012. Forward we go!
Ambassador Jesus P. Tambunting
Chairman and CEO
Planters Development Bank
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SME
PUBLISHER
Planters Development Bank
EDITORIAL ADVISER
Consuelo V. Dantes
EDITOR-IN-CHIEF
Bobby F. Banaag
EXECUTIVE EDITOR
Olive B. Ramirez
ASSOCIATE EDITOR
Therese M. Gutierrez
CIRCULATION MANAGER
Bryan C. Rilloraza
EDITORIAL STAFF
Joy G. dela Cruz
Abi N. Abear
Eman C. Cruz
EDITORIAL CONSULTANT
Art Ilano
JR. ASSOCIATE PUBLISHER
Millicent Agoncillo
MANAGING EDITOR
Maita de Jesus
ASST. CREATIVE DIRECTOR
Rodolfo S. Sevilla Jr.
SR. ART DIRECTOR
Johann Frederick G. Mendoza
PROJECT COORDINATOR
Michelle Acantilado
EDITORIAL ASSISTANT
Louise Myjel A. Guevarra
Staff Box
Contents
3 Around the World
4 Newsline
6 BizBeat
18 Profile: Gerry Choa of PRO-FRIENDS
22 Profile: Patricio Amadeo of Phela Resources
26 Save Mother Earth
27 Health Watch: Stress
28 Tech Review
29 Worth Reading
30 Lifestyle: Callospa & Resort
32 Billboard
7 SME Focus:
Human Resources
Marketing
Advertising
Management
Production
Finance
Technology
Taxation
Write to us!
Your feedback is important to us.
For your comments or suggestions, email us at
info@plantersbank.com.
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SME
Around the
World
THE SIX GLOBAL TRENDS
IN ENTREPRENEURSHIP
If you’re pondering some ideas for a business, consider the recent
trends in global entrepreneurship. The Organization for Economic
Cooperation and Development (OECD) listed down six global
trends that have so far driven and shaped the world’s economy.
First is the shift from “managed” to “entrepreneurial”
economy. Large company- and government-funded entities
were the paramount in a managed economy around 1940,
and by 1970, companies like IBM and General Electric became
huge. Today, the emergence of new technologies and industries
put firms like Apple and Facebook on the map, challenging
dominating industries and driving the commercialization of new
technologies.
Second is the rise of the “knowledge economy” wherein
knowledge-intensive firms that invest in research and development
enjoy more labor productivity and better economic growth.
Third is strategically-networked innovation, which is the
outsourcing of R&D and production via licensing and intelligent
supply chain management. There’s also globalization, which
gave birth to international collaboration, enterprise development
and the rise of new economic players. The fifth trend is the
significance of low, mid, and high technology. While it may
be true that high-technology is innovative, they only make up a
small proportion of all businesses, and it is still the low- to midtech
industries that continue to progress.
Lastly, there’s social entrepreneurship and innovation,
which recognize the importance of social economy. Corporate
social responsibility started around the 1980s, but it was the
“Third Sector,” which comprised of voluntary, non-profit social
enterprises, that was considered as true social entrepreneurship.
Financial experts believe that 2012 will see the flourishing of the
Philippine economy. Riding these trends may help lead to this,
particularly for small and medium-sized enterprises.
source: http://www.cemi.com.au/content/global-trends-entrepreneurship-andinnovation
ROOFTOP FARMING—
HOW URBAN FARMING FITS INTO
THE PHILIPPINE SETTING
The Philippines has always been dependent on agriculture, both
in terms of food production and employment. However, times
have changed—lands that were used as farms are now being
developed for commercial use. Many Filipinos are now going for
office jobs rather than going out on the field—not that there’s
anything wrong with it.
While it may be true that our farming lands have been decreasing,
in the United States and other countries that are heavily
commercialized, there are far less lands available for agriculture.
The result: a rather difficult access to food, especially those that
are organic and nutritious.
The solution: urban agriculture. Simply defined, it is cultivating,
processing and distributing food by farming in an urban setting.
Two of the more popular methods for urban agriculture are
rooftop and vertical farming.
One example of rooftop farming can be found in Chicago through
“The Urban Canopy,” an organization whose goal is to install a
3,000 square-foot farm on the rooftop of their headquarters to
produce fresh and healthy food for the community. Its vision is
to show that many rooftops throughout a city can serve as small
farms. Founder Alex Poltorak believes that rooftop farming can be
vital in agricultural movement by creating a sustainable food system.
Vertical farming is almost similar to rooftop farming except that
the farming is done on a specialized high-rise building. The
building can double as a water-treatment and waste-recycling
facility. Vertical farms obviously can produce higher volume of
food than rooftop farms, although it doesn’t come cheap since
building a skyscraper is expensive. The rent may also be tough to
recoup if it will only depend on crop sales.
This trend has yet to hit the Philippines, although some malls
do plant trees to reduce heat, and perhaps what come closest
would be malls with vegetable plantations. The biggest challenge:
convincing the penthouse tenants to tolerate having root crops
above their heads.
source: http://www.huffingtonpost.com/2012/02/07/the-urban-canopy-aims-to-
_n_1261065.html
CAN THERE BE A FILIPINO ELECTRIC CAR?
E-CAR TOP TRENDS
The Department of Energy (DOE) is pushing for the rollout
of electric tricycles across the Philippines, encouraging local
government units to support this venture. This comes on the
heels of a relatively successful pilot program in Mandaluyong City.
According to DOE Energy Resource Development and Utilization
Chief Engr. Eduardo Amante, the average cost for charging an
e-trike is just 50 pesos, compared to the 200 pesos worth of gas
that a regular tricycle would have used.
This leads to the question: what are the top trends in electric
vehicles around the world? Heather Clancy of tech site ZDNet has
identified these trends for 2012.
First, the world will be seeing more electric car models. We’ve
already seen Toyota Prius, Nissan Leaf, and Chevy Volt. But now,
more carmakers are set to join the e-car bandwagon.
Next, the bad news is that prices will still remain high for e-cars.
Even with battery prices falling, much of 2012’s e-cars have
already been ordered beforehand, so price tags will still remain
high for now. Good news is that more real estate companies and
businesses are installing electric vehicle chargers. Pervasiveness
will lead to lower costs which can trickle our way eventually.
Another trend: wireless charging. Cars can park in a space that,
through magnetic induction, will recharge them without having
to get plugged in. The technology is still being developed thus far,
but holds promise for the long haul.
An unusual trend: e-cars serving as backup generators. Imagine
having a brownout and plugging your car into your house so that
you can use the car’s battery to power your home.
Perhaps the most interesting observation is that most e-cars in
the US are actually rented rather than owned. This points to the
possibility that perhaps e-cars are best used on for commercial
purposes.
Can an aggressive rollout of e-trikes lead to a Filipino e-car
program? Let’s just say that we have a better chance of
developing a Filipino Car program than ever before if we focus
on developing our e-car capabilities. And that comes next after a
successful e-trike program.
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SME
Newsline
Melbourne IT firm partners
with SME.com.ph
Melbourne IT, one of the top providers of IT-based business
technology solutions globally, recently forged a partnership with
PDB SME Solutions, Inc., the country’s pioneer in providing webbased
business solutions for small and medium
enterprises (SMEs).
The partnership will allow PDB SME Solutions, Inc. to optimize its
services and provide a wider range and more SME-centric online
business solutions to Filipino entrepreneurs. “PDB SME Solutions,
Inc. can now offer the Filipino SMEs with more intuitive ways
to make use of the worldwide web in promoting their business
and provide them the ease and flexibility of managing their site
based on their wants and business needs,” according to PDB SME
Solutions, Inc. Chairman Ambassador Jesus P. Tambunting.
Melbourne IT EVP and General Manager Lori Harmon said the
agreement will provide SMEs a one-stop shop to get their business
online while giving them access to the entire Philippine and global
markets. “Instead of having to go to multiple companies to set up
your website, you can go to one company allowing you to focus
on running your business,” Harmon said. “It will help make SMEs
a lot more successful and grow faster by building up their brand
and selling products online,” she added.
Australia-based Melbourne IT is one of the largest domain name
registrars managing more than 6 million domain names and more
than 80 million web pages.
IT partnership
signed. PDB SME
Solutions Inc. chairman
Ambassador Jesus
P. Tambunting and
Melbourne IT general
manager Lori Harmon
ink the agreement
that will provide a
wider range of online
business solutions to
Filipino SMEs.
Plantersbank to host APEC–SME Confab
The Asia-Pacific Economic Cooperation (APEC), in its annual
meeting held in Mexico last year, announced that the
Philippines will be the venue of the 2012 APEC-SME Meeting
and Conference to be held on July 18 to 20, with Planters
Development Bank taking the lead and playing host. Plantersbank
is the only financial institution that was invited to be a member
of the prestigious Asia-Pacific Economic Cooperation Financial
Institutions Dealing with Small and Medium Enterprises (APEC-
SME). This will be the first time the Philippines will be hosting this
annual summit.
“We are pleased to bring the APEC-SME Summit to Manila this
year and it’s truly an honor to be hosting the chief executives
and their respective delegations. With SME playing the key role
in building a healthy economy, this yearly gathering gives us the
opportunity to share learnings and developments in SME Finance
which will help us in further improving our services and offerings
for SMEs. We also plan to showcase the advances we have made
through the years in terms
of SME financing,” said
Plantersbank Chairman
and Chief Executive
Officer Ambassador
Jesus P. Tambunting.
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Starting Strong, Finishing Well:
Plantersbank SME Speaker Series in Cebu
Cebu City — A mixed crowd of seasoned stalwarts and rising stars
of the Cebu business scene packed the Cebu City Marriott Hotel
for the Plantersbank SME Speaker Series. Some 250 SME clients
and friends trooped to listen to renowned motivational speaker
Anthony Pangilinan’s talk entitled “Starting Strong, Finishing Well:
Market Leadership in the Race in Life.”
The SME Speaker Series was presented in partnership with the
Cebu City Chamber Inc. This symposium is an added dimension of
Plantersbank’s portfolio of innovations for enabling entrepreneurs.
Now on its fourth year, the Plantersbank SME Speaker Series
shares with local entrepreneurs the winning management
techniques and business skills of today’s top management gurus.
The advocacy program is aligned with the Bank’s goal to promote
SME enablement. It aims to provide Filipino entrepreneurs with
a venue to equip themselves with the latest management trends
and learn valuable tips, as well as expand their network and build
possible partnerships.
The SME Speaker Series has been visiting key cities nationwide
since it started in 2007.
Plantersbank supports
WWF campaign
Plantersbank and the World Wide Fund for Nature (formerly
known as the World Wildlife Fund) joined hands in the campaign
to promote consciousness about climate change and how to
reverse it in the country. Plantersbank gave a check for P50,000
representing donations from individual employees and funds
raised during the Bank-wide Save Mother Earth Bingo Social.
The donation was turned over by Support Services Group head
EVP Consuelo V. Dantes and Bank environment officer FVP
Roberto F. Banaag to WWF officials Reggie Olalia and Mayj
Tolentino.
Plantersbank announces
new products for Kids and Teens
Plantersbank recently launched two new additions to its roster of
products and services. Targeting the younger market segment, the
Bank unveiled the Plantersbank SME Kiddie Club, for depositors aged
7 to 12 years old, and the Plantersbank Teen Club for teenagers aged
13 to 19.
True to its mission of enabling entrepreneurs, Plantersbank’s SME
Kiddie and Teen Clubs are the only savings accounts for the youth
that inculcate the value of entrepreneurial spirit. Aside from honing
the value of saving in young depositors, various programs and
activities throughout the year will likewise be provided to engage the
entrepreneur within every kid.
These interest bearing savings account for kids and teens have low
initial deposit requirements and comes with a passbook for SME
Kiddie Club and a passbook and ATM card for SME Teen Club.
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Bizbeat
Unemployment rate: 7%
Underemployment rate: 19.3%
Minimum wage, NCR: Php 389 to Php 426
Areas Outside Metro Manila: Php 190 to Php 337
*Source: NEDA
How (un)competitive is Philippine electricity?
Philippines 0.18
Japan 0.17
Singapore 0.16
Thailand 0.09
Malaysia 0.07
Indonesia 0.06
Vietnam 0.04
*Source: International Energy Consultants report
Innovation and MSMEs
How innovative are micro, small and medium enterprises in
the country? The 2009 Survey on Innovation Activities by the
Department of Science and Technology gives us some indicators.
We compared them with large organizations for good measure.
Micro Small Medium Large
Establishments that are:
Product innovators 23.6% 32.7% 42.5% 46.4%
Process innovators
Both product and process
23.6 38.3 50.0 56.4
Innovators 17.0 25.2 33.8 42.0
Average annual spend for innovation activities
Average residential
power rates*
Country $ per KWh
Micro Php 51,200 Small Php2.9 million
Medium Php3.2 millio Large Php30.1 million
Hello Philippines!
To our Korean guests, we say “Annyeong!” And yes, there are lots
of them because Koreans now represent our largest tourist group.
Here are our top ten foreign visitors in 2010, as mapped out by the
National Statistics Office.
Origin Visitors
Korea 474,395
United States 407,613
Japan 240,528
China 133,216
Hong Kong 98,548
Taiwan 95,293
Australia 88,737
Singapore 77,759
Canada 66,845
United Kingdom 64,484
The Micros Rule
If you’ve ever wondered just how much of Philippine firms
belong to the MSME sector, then this may shed some light. The
following is the breakdown as of 2009, as per Department of
Trade and Industry statistics.
Micro 91.08% (710,882)
Small 8.14% (63,529)
Medium 0.39% (3,006)
Large 0.39% (3,080)
24.4% of all Philippine firms are concentrated in the National Capital Region.
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SME Focus Human Resources
Finding Mr. and Ms. Right
by Leslie G. Lee
Hiring trustworthy
employees can be tricky,
but there are actually
some ways you can weed
out the best from the
slew of “blah” applicants.
Small businesses, unlike large firms,
unfortunately don’t have the resources
to “expertly” hire trustworthy employees
and almost always rely on the “kakilala”
(referrals) system. And even then, not all
referrals turn out to be great hires.
So what should be done when hiring
walk-in applicants who are strangers as far
as you’re concerned? Here are some tips
culled from experts and small
business owners.
Arrange for a personal,
face-to-face interview.
First appearances DO matter. One
entrepreneur shares that she always insists
on face-to-face interviews, as seeing the
applicant in the flesh clues her in if she’ll
want that person to work with her. “My
instinct is almost always 100 percent
foolproof,” she explains. “There are times
when I talk to this person over the phone,
and he or she seems okay. But then, when
I see him or her in person, I suddenly get
the feeling that we won’t get along once
we start working together. So it’s really
important for me to see all interviewees or
applicants in person before I make
any decisions.”
Listen to your instinct.
If you’re the type of entrepreneur who
goes with your instinct in making business
decisions, you should apply this rule when
hiring people. Do not underestimate
what your gut is telling you. Take for
example what happened to this owner
of a garments business: “When this
applicant showed up, he seemed okay
and the staff looked like they liked him.
But… something didn’t feel right to me.
Outwardly there was nothing wrong with
him. He looked pleasant enough, but I
just felt that he wouldn’t make a good
addition to the team. So I let him go.”
He had actually made the right decision,
because he heard through the grapevine
that that person was hired by somebody
else, and was fired a few weeks later
when caught stealing. “See, I was right,”
the entrepreneur said with justified
satisfaction.
Check the body language.
Subtle gestures are proof that actions do
speak louder than words. “The face is used
more than any part of the body to cover
up lies. We use smiles, nods and winks in
an attempt to cover up, but unfortunately
for us, our body signals will tell the truth
when there is a lack of congruence
between our body gestures and facial
signals,” writes Allan and Barbara Pease in
The Definitive Book of Body Language.
According to them, “eight of the most
common lying gestures” are: the mouth
cover, the nose touch, itchy nose, the eye
rub, the ear grab, the neck scratch, the
collar pull, and fingers-in-the-mouth.
The next time you spot these gestures
when interviewing a potential employee,
it’s your cue to be extra cautious.
Double-check references.
Sure, even if a potential employee was
introduced to you by someone you
know, it still helps to do background
checks. This is even more important when
you’re interviewing a complete stranger.
Background checks, to the experienced
employer, can be merely affirmations of
the impressions formed from interacting
with the applicant, whether negative
or positive.
On the other hand, these references can
give employers a clue about the applicant’s
personality and working habits or ethics.
That’s why it’s very important not to skip
this part and exhaust all possible and legal
means for gleaning information about
each potential employee before reaching
a decision.
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SME Focus
Marketing
The Group Buying Site:
Is It Really a Good Deal for Business?
by Jing Lejano
A
three-day, two-night stay
in Boracay with airfare and
accommodations for only P5,000;
a 60-minute massage for P99; an LCD
TV for P50,000—these are just some of
the amazing deals that Internet-surfing
consumers can find online. And these
deals certainly are enticing, with some
getting thousands of buys in a span of
just a few days. One offer for an overnight
stay at a premium hotel, which slashed 75
percent off its rack rates, garnered almost
4,000 buys.
Fueled by such consumer response,
websites offering group deals have
mushroomed all over the Internet—around
20 based on a cursory Google search. So yes,
these sites do offer wonderful packages for
consumers. But how about the businesses
which offer them? Does the sheer volume
of sales make up for the staggering
discounts on the price of their products
and services?
A Sucess Story
Maribeth Pion is the proprietor of Tralala
Haven Spa and Salon in Las Piñas City.
Offering a wide range of services from
manicure and pedicure to body massage
and hair treatments, Tralala Haven has
been doing brisk business for the past few
years. In fact, it now has three branches
across Las Piñas.
Because business was a bit slow around
October and November last year, Maribeth
and her partner and sister Me-An Castro
thought of signing up with a group buying
website. The requirements were fairly
simple: present your Business Permit and
offer up to 50 to 70 percent discount off
your regular rates.
Tralala Haven’s first deal went live on
January 2012. The salon offered hair
rebonding services for P799, a significant
slash off their regular rates which ranges
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from P1,500 to P2,000, depending on
length of hair. They received 61 buys.
Their second deal, which went live two
days after the end of the first one, offered
their eyelash extension services for only
P250. The deal was live for three days and
received 25 buys.
Maribeth and her sister Me-An say they are
more than happy with the results, being
the cheapest form of advertising available
to small businesses like them. Not only
have they gotten more customers who live
around the Las Piñas area, they have also
redeemed vouchers from customers who
live in Laguna, Taytay, Novaliches
and Tondo.
“We’ve done promos before and it was
hard. You have to do the layout, get an
artist, and make flyers. Here, they take
care of it all including the layout,” Me-An
says. For the sisters, the strategy is to give
the customers good service to encourage
them to go back to the salon. And
more often than not, Maribeth says the
customers get additional services at regular
rates when they get there. Since the hair
rebonding treatment takes a bit of time,
the customers usually get other services to
while away the hours, like manicures
or pedicures.
Terms of the Trade
Group buying websites entice businesses
by promising exposure to a big customer
base. Purchases are tracked real-time, so
the business owner knows exactly whether
his offering has been successful or not.
And because there are no upfront costs,
the website only gets paid when the offer
is able to generate sales. No sales, no
profit for both website and business.
However, for every deal that’s bought
online, the website gets 50 percent. For
every P799 hair rebonding deal that was
bought, for example, P399.50 went to
Tralala Haven and P399.50 went to the
site. The site pays out Tralala Haven in
three installments: 50 percent ten days
after the end of the promo, 25 percent
30 days after the end of the promo, and
the remaining 25 percent after the threemonth
redemption period.
This is one of the points that has made
group buying sites such hot spots for
controversy.
The Dark Side
In his book Groupon: Why Deep
Discounts are Bad for Business, author
Bob Phibb details the travails of several
businesses which jumped on the
Groupon bandwagon. Called the “Retail
Doctor” in the United States, Phibbs
has been a corporate officer, franchiser,
and entrepreneur with over 30 years of
business management experience.
"For every deal bought
online, the site gets
50 percent. They
then pay you in three
installments.”
Phibbs cites the story of a restaurant in
Manhattan, New York that sold 1,142
coupons for $14 worth of food in 24
hours. Computing the cost of the deal
to restaurant, Phibbs writes, “Groupon
collected $7994 for what normally would
have been $15,998. That means after
clearing the credit card fees, he gets about
$3677. If food costs are the standard 30
percent in a restaurant, that would make
it $4799 or a real loss of about a dollar
a customer—that’s just in food costs. Far
from being even.”
Phibbs goes on, “I believe discounting,
couponing, and the like whether through
Groupon, LivingSocial, citywide365 or any
of their clones are killing the freedom of
private businesses to operate competitively
for profit… I believe these sites are the
worst thing since Wal-Mart because they
reinforce customer beliefs they need a deal
to open their wallets.”
He adds,“You’ll need to make 20% more
sales if your margins drop from 50 to 40%
just to replace the lost profits. It would
mean you’d have to increase traffic 40% if
you sold one out of every two people who
came in. Most businesses’ closing ratios
are a fraction of that; you could potentially
be working twice as hard for no more
return on your investment.”
True, those numbers maybe correct, but
getting into group buying sites might
be more appropriate for certain types of
businesses. A popular online entrepreneur
who sells clothes and fashion accessories,
for example, is not keen on participating in
group deals as she cannot possibly afford
to drop her prices that low; it would eat
into her profit margins.
Yes, it can work
For her part, Maribeth says they still have a
little profit left over; they offer services, not
goods. “We are happy with the results,”
she says. Apart from having gained new
customers, the deals have also given them
a way of promoting their other services.
During the time of the interview, they were
having a promotion on their Acrylic Nails.
They have more deals lined up in the next
few months. “It’s really free advertising.
Even if others opt not to buy, they would
still inquire,” Maribeth says. Consumer
awareness is one of their main objectives,
she adds.
As we wind up the interview, Maribeth
tells me the story of a massage center
which had 1,300 buys of its P600 offer.
That’s a quick P800,000 in sales, P400,000
of which will go the massage center. This
was enough capital for the business to
open another branch. “You can’t normally
get P400,000 just like that right?“ she says.
So should you participate in group buying
promos? As Phibbs says, check your
numbers first. Whether you’d want to
make a deal or not is solely up to you.
Before signing any contracts, perhaps it
is best to ask yourself: what is it that you
want to get out of it? Your answer will
point you towards the right direction.
SME 9

SME Focus
Advertising
Low-cost
Promotional
Strategies
by Art Ilano
You want to promote your business,
but advertising is expensive. Fear
not, there are cheaper ways to get
your word out!
You have a small business, so you certainly wouldn’t want to spend
on primetime TV ads (half a million pesos, easy). But even newspapers
can be pricey (P40,000 for one-fourth page), while a radio ad (P9,000
for 30 seconds) is way too fleeting.
What you want is a promotions strategy that won’t break your bank
account, and the best way to do that is by doing the marketing
equivalent of a surgical strike. After all, the reason why traditional
tri-media is expensive is that its coverage is broad by nature. But small
businesses do not need broad market exposure. A small business is
always better off focusing on a clearly defined market. Fortunately,
this also presents the opportunity for the kind of pinpoint strikes that
you’d want.
Here are some strategies for surgical marketing campaigns, without
the need for a surgeon’s salary.
Samples
If you’re selling low-cost items, such as ballpoint pens, then sampling
is a viable promotion strategy. But be warned: you have to know
what you’re doing. Do not just hand out samples left and right in
some public area. If each of your pens costs five pesos, then you’re
hemorrhaging five pesos every ten seconds without even knowing if
the people who get them would be interested.
What you’d want is to first identify areas where your target market
tends to congregate heavily. If you’re marketing school supplies, then
of course you’d want to do your sampling on school grounds. Better
yet, if parents are the decision-makers, then perhaps wait until there’s
a school activity with both parents and students on board. This way,
you have some degree of assurance that you are reaching the market
that really matters.
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One other warning though: samples
only work if (a) you have an innovative
product that needs to be tried to be liked,
or (b) your product truly stands head and
shoulders above the competition.
Post-Its are an example of a sampling
success. When first launched, 3M tried to
market these innovative notepads through
advertisements. Nobody bought them.
That’s because people simply did not
understand the concept of sticky notepads
and what they can be good for. But all
that changed when 3M decided to hand
out sample packs. Immediately, with the
product actually in their hands, the people
finally understood the usefulness of the
Post-It notes and the product took off.
But if you are offering a ballpoint pen that
is just about at par with the leading pen
brands, then, sad to say, no amount of
sampling will make consumers switch to
your brand. They’ll take your sample, use it
until it runs out, then likely forget about it
(if they haven’t already lost it yet).
Worst case scenario: people take your
freebie… and then actually think that
it’s your competitor’s product! Yes, this
happens quite often, unfortunately.
So use sampling only if you truly believe
that all that’s needed is for people to
actually try your product for them to
become likely loyalists.
Exhibits
Setting up a booth at a trade show or
exhibit can be a good way to attract
attention, but you have to pick your
venues wisely. You’ll definitely want a high
pedestrian count, but it should also be the
kind of pedestrians that really matter.
It’s bound to be a serendipitous affair
though. In other words, you aren’t always
sure what kind of trade show will be
popping up, and you aren’t always assured
of getting a slot in those that you want.
But it may help to think outside the box: if
you’re offering a food franchise, perhaps
a food franchise exhibit is not always
the best place to go to due to the dense
competition. Instead, think of what other
kind of trade show has a big probability
of having the types of people who would
tend to get a food franchise. A retirees’
convention perhaps?
Speaking of which, if a trade show has far
too many sellers offering products that are
way too similar to yours, then this could
be trouble. Your conversion rate, or the
probability of a booth visitor turning into
your loyal customer, could be very low.
It could even mean that the booth just
wouldn’t be worth it.
Here’s what you can do: at booking
time, try to get information on who
are the types of exhibitors who would
be participating too. If there’s a lot of
potential competition, try to get your
booth placed at an area that’s away from
the competition (without sacrificing foot
traffic). It won’t guarantee conversion,
but at least your conversion rate has a
chance of being higher than otherwise as
your distinct location may induce more
customer recall.
Collaterals
Sometimes you need to resort to posters
and flyers that can hopefully elicit brand
recall and remind your market that you
exist. But where to post these? Far too
many posters are wasted in useless
locations, and far too many flyers end up
in the trash bin.
First of all, do invest in quality. If you’re
gonna do it, then you might as well do it
in style—so long as you don’t overspend
while you’re at it. All we want is for your
materials to look decent enough to make
your business appear respectable. Don’t
go cheap and mass produce your materials
on newsprint or flimsy papers: you are
actually destroying your brand equity in
the process.
So instead of printing thousands of cheaplooking
flyers that you’ll sow scattershot
everywhere, why not print just a few
hundred good quality brochures that you
then hand out in a very selective manner?
Which means the question now becomes
one of “So where do I distribute my
materials?”
You’ll have to think smart. Know your
target market. Know where they tend to
congregate. Know what they tend to do.
And then be there when it happens.
Pizza Hut’s “Hate Late” campaign was a
tremendous promotions success, not just
because the message became pervasive,
but also because it was a surprisingly
low-cost campaign to begin with. But
they pulled it off because they chose their
venues with military precision. For instance,
since the theme of the message was about
hating lateness, they identified areas where
people typically have to wait, like bus stops
and airport waiting areas, and peppering
their collaterals in these places. These also
included banners in streets that tend to get
congested.
So a smart, systematic strategy for
disseminating your materials should be
part of the game plan. And please don’t
do it at the expense of ruining your brand
image by being too stingy with your
materials.
Ad Bits
• Billboards range in price anywhere
between Php 30,000 a month for a
15x20 foot board to a whopping half
a million pesos a month for a 60x85
foot board at the C5 flyover in Taguig
City. Billboards are also most expensive
wherever the road curves because
these offer longer viewing times.
• According to Nielsen, TV ownership is
still growing in the Philippines, which is
in contrast to what’s happening in the
US due to their increased dependence
on the internet. This means that TV
will still be our most effective medium
for those seeking nationwide mass
markets.
• “360 Degree Marketing” is the term
that’s used to describe strategies where
the product message is placed right
where and when it is most relevant
for consumers. This includes ads for
kidney supplements placed right above
urinals, or ads for sanitary napkins
being printed right on bus seats.
SME 11

SME SME Focus
Focus
Management
In nature, growth is inevitable. Living
things change and become more
complex. In the world of business,
however, things are not so simple.
A small business might stay the way it is
or even decrease in size depending on the
choices and resources of the owner, the
needs of the customers, and the climate of
the market.
The Philippine Magna Carta for Small
Enterprises defines small to medium
enterprises as those whose total assets
range from P1.5 to P100 million. If a
business is to grow out of these categories,
the goal is to move beyond that range.
“Business growth basically is increase in
revenue. You want to sell more and make
more because that’s where you derive
profit,” says Benito Teehankee, PhD,
current chair of the Management and
Organization Department at De La Salle
University.
Teehankee shares that there are many
strategies to achieve this growth. First,
there’s branching out. If you have more
locations, you’re not limited to the flow
of customers in one area. Another is to
expand your original store by adding a
floor or a section to the space alloted for
your business. These two strategies aim to
increase revenue by increasing foot traffic
and possible purchases. Taking control of
the materials you use for your products
also counts as a strategy for growth.
To grow or not to grow?
Of course, the first question is should
you aim for business growth to begin
with? “Growth is not mandatory,” says
Teehankee. Staying small has its benefits,
Barriers
To Growth
Why Some Businesses Stay Small
by Raydon Reyes
after all. Owners of small businesses
enjoy greater control over all aspects
of their venture as compared to larger
counterparts. The size allows owners
to wear different hats—from product
designer, operations manager, personnel
recruiter, to customer relations officer. In
contrast, big businesses require a more
organized approach to handling these areas.
Having closer ties with your customers is
also an advantage. “They know you. They
can customize the product based on your
needs. It’s a more personal experience,”
Teehankee notes. But if the aim is greater
stability, business growth is the way to
go. Being bigger means having a wider
range of products to offer the market.
This means that you can navigate through
seasonal changes in demand for one
product by compensating for the loss in
profit with sales from another product.
Hurdles to overcome
According to Teehankee, one of the main
challenges in growth is lack of capital.
Then there’s the need for management
talent. “Owners might be good in
product design, but they might not be
good in marketing, pricing decisions, and
marketing communications,” stresses
Teehankee. Even if you have a great
product, not having these sub-skills can
put an impediment to your efforts to grow
your business.
Collecting also becomes an issue with
growth. “When you now have a higher
volume, you won’t get everything from
cash sales. A lot will depend on credit. If
people don’t pay on time, your growth
will get delayed. So you will need to
get investors and give up some control
because they will want to have input (in
your business),” says Teehankee.
Trust also becomes an issue. How do you
manufacture trust? You can’t. It’s earned
through time. But when you try to grow
fast, you recruit from left and right.”
Teehankee concludes that business owners
should be careful not to overextend
themselves, know their target market very
well, and invest in frontline training to
overcome these struggles towards growth.
SME 12

SME Focus
Lots of companies are
doing it. Should you?
Production
The Pros
and Cons of
Outsourcing
by Faye Ilogon-Valencia
Outsourcing is defined as the process of
contracting another organization outside
your company to perform certain tasks. This
way, in-house employees can focus on their
core functions, allowing them to focus on
the things that they do best. These days,
outsourcing has certainly flourished and has
acquired an added dimension in the age of
telecommuting. The practice has certainly
gone digital and full-on global—what with
call centers and BPOs catering to entities
located in different continents.
So who should consider outsourcing? A
company’s decision depends on its resources
and immediate goals. It works for some,
but it’s certainly not for all. If you’ve ever
pondered about whether or not you should
consider outsourcing, then here are some
pros and cons.
The following are the top three
advantages of outsourcing:
1. It saves money. Outsourcing can mean
a huge chunk of savings. Most outsourced
entities and individuals perform the
contracted functions for significantly less
money than if it is done in-house. That’s
because they have seasoned expertise and
economies of volume that is borne from
servicing several accounts. Outsourced
secretaries, for instance, can manage your
correspondence for around 40 to 60% of an
in-house secretary’s wages. Also, outsourced
workers are not entitled to benefits, and
a majority of them are not even required
to work within the company premises.
This means that they won’t incur overhead
expenses for space, equipment, or utilities.
2. It streamlines operations. With “red
tape tasks” out of the way, the company’s
in-house employees can concentrate on
core activities. They will have the time to
conduct quality control measures that can
further improve the company’s operations
or products. There’s a lot of room for
originality and creativity within a company
when people aren’t bogged down by
tedious tasks. For instance, medical firms
that assign administrative tasks to their
doctors may not be making efficient use
of these doctors’ hours. So if the tasks
are outsourced, then doctors can focus
on doing what they do best, which is to
diagnose and heal.
3. It buys quality time. Freeing up your
organization from doing tasks which
others can do better means that you can
find time to implement programs that
will enhance your in-house employees’
skills, or even teach them new ones. You
won’t have to worry about the company
being at a standstill when they deal with
the learning curve since your outsourced
operations will be taking care of business
while you take care of yours.
On the other hand, the
top three disadvantages of
outsourcing are the following:
1. It’s a confidentiality risk. The “red
tape tasks” that you outsource reveal
a lot about your company. Even if you
instruct your outsource partner to observe
confidentiality, you have to accept the
fact that the information will be accessed
by people who are technically not part of
your company’s core group. You can never
tell how other companies deal with your
confidential issues.
2. It won’t guarantee consistency. Since
you don’t personally manage or train the
people who perform the outsourced tasks,
you run the risk of getting back moribund
performance. You don’t have much control
over quality once the tasks have been
outsourced, and by the time that you
realize what is going on, it may already be
too late.
3. It binds you. Like it or not, your
company’s fate becomes intertwined
with that of your outsourcing company.
You become somewhat dependent on its
financial status or workforce situation.
If it’s a solid company with contented
employees, then you’ve got nothing to
worry about. But if its finances are in dire
straits and its workers are unhappy, then
you’ll end up suffering, too. Unfortunately,
you may not even know how their
company is actually performing. Again,
by the time you realize what’s going on, it
may be too late.
So should you outsource your red tape
activities? Lots of companies have done
so. Payroll, manufacturing, and customer
service are just some of the tasks that have
been successfully outsourced by local firms
to other local firms. Just keep in mind the
pros and cons before you jump into the
outsourcing bandwagon.
SME 13

SME Focus
Finance
Handling
Bigger
Budgets
by Portia Silva
Small-scale businesses plunging into
bigger ventures can be stalled by the
fear of financial instability. Fight off the
finance fidgets with these pointers.
Many businesses are fueled by dreams of churning out wonderful
products and services to the delight of customers. But that
dream can quickly come crashing down when it turns out
that management doesn’t quite know how to handle bigger
budgeting requirements. Fortunately there are countless success
stories out there that will inspire you to expand regardless of your
financial skills set. Here are some lessons that we gathered that
can guide you in effectively managing your budget without, well,
cutting the budget.
Manage your cash flow
After identifying your enterprise’s business goals, the most vital
thing to consider is how to keep the money flowing. That is, the
amount of cash generated by your company must be equal to
(good) or greater than (great) your overall expenses. Henry C.
Ong, financial adviser, president, and COO of business advisory
firm Business Sense Inc., says that there are several ways to ensure
that your money is replenished substantially.
• Keep track of your expenses.
The movement of money in and out of the company should
be dealt with keen eyes since your weekly or monthly financial
SME 14

ecords will determine where certain percentages of your money
are going. Be hands-on in monitoring all of the company’s
financial activities to get a good grip of the market that you are
dealing with. It is advisable to put all receipts of purchased items
in one file and note down earnings in a separate sheet.
• Negotiate with suppliers and set payment deadlines
for customers.
Knowing how to maintain good relations with the people you
work with and the market you provide for is a skill you need
to develop. Ong encourages open and honest communication
when dealing with suppliers. It is not about delaying financial
obligations but knowing how to strategically come to terms with
deliveries and payment schedules. In the same manner, collect
receivables in due time to guarantee a positive cash income.
• Check up on the competition.
It is vital to not only know what you can offer but to be aware of
what others have or do not have vis-à-vis what you have. Scour
the market for businesses in the same category and determine
if your price range is within reason to keep yourself competitive.
Consider all elements that went into the conceptualization, the
making, and the selling of your product before putting up that
price mark. Remember that consumers are easily attracted to cheaper
alternatives. This does not automatically mean that they will pick
up your item if the quality is not at par with the competition.
Reduce costs and save money.
Building a business naturally involves huge amounts of outgoing
money, splurged on equipment, advertising and labor throughout
the different stages of your business. As an expanding enterprise,
handling your capital budget seems like a huge challenge when,
in fact, there are several ways to cut costs and save up on future
expenditures. Here is a list of tried and tested ways to save costs,
from real entrepreneurs who run small, expanding businesses.
• Seek alternative market venues for your product.
Recently, we have seen a boom in weekend markets and trade
fairs all over the metro as well as an increase in the number of
sellers online. These two places, however different, are flocked
to by buyers because of convenience: the products are delivered
faster and nearer to where they are.
• Identify the necessary expenses and spend on them only
when you urgently need to.
Determining the necessity of spending on particular items to be
used in your business is heavily dependent on the enterprise’s
survival. Carefully evaluate the machineries, the supplies and other
items that you have on your list and ask yourself if you can afford
them. If not, find secondhand material and ask for help from
friends for sourcing leads.
• Barter your product and services for another’s.
Exchange deals are among the easiest ways to save up on
advertising. Tap publishers and marketers and ask them if you
can have a minimum advertising page on their pages in exchange
for your products or services. You can also offer to provide gift
certificates in events sponsored by people you might know who
are looking for items to giveaway to guests.
• Network your business by chatting up.
Social networking websites like Twitter and Facebook have
countless of accounts registered under their wing, so take
advantage and ask for help in spreading word about your
business. If you want to go old school, log in to all your e-mail
accounts and give out a formal press release about your business
and hit send to all your address book contacts. The more people
you reach, the wider your market becomes.
• Accommodate and train interns.
While you have regular employees working with and for
your business, an extra helping hand can make things easier.
Undergraduates are always on the lookout for companies who
will take them in and grant them experience in exchange for a
reasonable allowance.
Monitor your financial status and stability.
At the very beginning of your venture, you should have
identified key goals to achieve within a reasonable timeframe. All
evaluations should then be based on these specific measures.
• Maintain a healthy balance on all your numbers.
Numbers and percentages tell the truth. But you must also look
at all sides of the coin. Strike a balance between the numbers
on your recorded sales and expenses and then shift to what you
actually have in the bank. All your financial statements must
“communicate” with one another and must coincide with all the
figures stated.
• Price the values of your intangible assets.
Other key elements that play a role on your product or service
like the prominence of your brand, familiarity of certain brand
campaigns or jingles, and knowledge of the community about
your business are only some of the intangible assets that you can
price and develop. This can be helpful when you decide to loan or
franchise your business to other interested parties.
• Avoid cash advances on your credit card.
Owning credit cards only makes spending easier, more
accessible… and more expensive. Efficient businesses must
therefore focus on the petty cash rather than on the swiping of
those credit cards. It works to your advantage because you not
only avoid having debts, but you are also able to closely monitor
your expenses more closely and in real time.
SME 15

SME SME Focus
Focus
Technology
CRM
Software:
What’s in
it for you?
by Portia Silva
Provide total solutions
to your client’s needs
with a strategic battle
plan in the work force.
Today’s consumers are highly-attracted to
fast, affordable, and reliable services that
are accessible anytime and anywhere.
While traditional methods of reaching and
communicating with clients are still being
implemented, a majority of enterprises
are now availing of locally-available
software that offers customer relationship
management (CRM) solutions.
What is CRM?
Antonio B. Alejo III, project manager and
pre-sales consultant at Hewlett-Packard
Asia Pacific, explains that a CRM program
is a company-wide strategy to maintain
relations with present customers while
extending interaction with prospect clients.
“CRM covers a very broad spectrum: from
sales to level 1 or basic support, and up to
senior management levels,” says Alejo.
CRM goes beyond just the software and
includes service training as well. HP, for
instance, provides a classroom-type of
training that is part of the on-boarding
plan for all its new recruits. “Apart from
this, web-based trainings and template kits
are readily available for the employees,”
adds Alejo.
Basically, the success of operating CRM
solutions relies mostly on the capacity of a
company to make it work internally. Alejo
points out that the program has to be tried
and tested to measure its effectiveness. It
is therefore crucial to develop a workflow
and an interface that’s easily adaptive and
can be taught to the rest of the team.
And then there’s the software. CRM
software is designed to help you keep
track of your customers. At the most basic
level, it tracks statistics such as birthdays
(so your company can greet them at the
right time) and sales call histories. More
advanced CRM solutions track sales
histories to show infographics about the
most sellable products, “itch cycles” (the
most likely time for customers to buy),
average spending patterns, and more.
CRM software can therefore transcend just
being a service tool to becoming a potent
market research utility as well.
Is it affordable?
The answer to this question would depend
on your company’s budget and service
strategy objectives. HP has CRM packages
for different enterprises. And another
firm, Microsoft, also offers CRM packages
geared towards SMEs by way of its
Microsoft Dynamics CRM solution. When
in doubt, check with these providers. More
importantly, strive to quantify the benefits
that CRM programs can provide for your
business by way of potentially increased
sales and customer satisfaction. And then
calculate the cost versus benefits.
So why should SMEs look
into having CRM?
One of the objectives of any enterprise is
to encourage repeat business with
first-time and unique customers. Having
great relations with your clients can help
make this happen and can possibly lead to
more referrals. Dave Monter, technology
consultant at HP, advises that businesses
need to take care of their clients and
attend to their needs throughout the
customer life cycle: marketing and sales,
order processing and shipping. and
customer feedback and services.
“Make sure that you will be able
to deliver the service promised
to the customer,” Monter
advices. “They can either reach
the expected outcome or, better
yet, exceed the customer’s
expectations. Never propose a
service which you can’t deliver.
It should be realistic. Make sure
that there’s a testing phase before
going all out in the business.”
SME 16

SME Focus
Taxation
Reminders on Preparation and Filing
of Income Tax Returns by Charity P. Mandap
As the tax filing season draws near, it is
important to note some of the significant
requirements attendant to the filing of tax
returns in order to avoid inconveniences
and penalties imposed. This year, it is
crucial to comply with the use of the new
income tax forms. Since small and medium
enterprises (SMEs) consist mostly of individuals,
we prepared the following checklist
for the preparation and filing of income
tax returns relevant to individual taxpayers
engaged in trade or business:
1. Use of new income tax forms. Starting
income tax filing calendar year 2011,
which is due on or before April 15, 2012,
the new BIR Forms (November 2011 version)
shall be used by taxpayers. Married
individuals shall file an income tax return
(ITR) for the taxable year to include the
income of both spouses, computing separately
their individual income tax based on
their respective total taxable income. In the
case of self-employed individuals who own
and operate most SMEs, they are required
to use BIR Form 1701 as circularized under
Revenue Memorandum Circular No. (RMC)
57-2011.
The enhanced BIR Form 1701 incorporates
a new Part IX requiring the disclosure of
details on income subjected to final tax
and income exempt from income tax.
Note, however, that the disclosure of
other income is optional in 2011 but shall
become mandatory for the year 2012.
Taxpayers are well-advised, therefore, to
ensure that information about their other
income are collated regularly so as to avoid
delay in the filing of income tax returns.
2. Election of OSD or itemized deductions.
Individual taxpayers engaged in trade or
business, including those in the practice of
a profession, have the option to claim deductions
using either the optional standard
deduction (OSD) or itemized deductions.
The option must be signified by checking
the appropriate box in their ITR. Please
note that under RMC 16-2010, the type of
deduction adopted by the taxpayer in his
first quarter ITR should be the same as in
his final ITR for taxable year. Thus, any
taxpayer who fails to indicate his choice in
his first quarterly ITR shall be considered as
having availed of the itemized deductions
option for the taxable year.
3. Availment of additional exemptions.
In addition to the OSD or itemized deductions,
an individual engaged in trade or
business is allowed to claim personal and
additional exemption for each qualified
dependent child (QDC) up to a maximum
of four dependents. The amount of personal
exemption that may be claimed is
P50,000 regardless of the status of the
individual taxpayer (i.e., single, head of
family or married) and P25,000 for each
qualified dependent.
The additional exemptions for QDC shall
be claimed by only one of the spouses in
the case of married individuals. The husband
shall be the proper claimant of the
additional exemption for QDC unless he
explicitly waives his right in favor of his
wife in the Application for Registration
(BIR Form No. 1902) or in the Certificate
of Update of Exemption and of Employer’s
and Employee’s Information (BIR Form
No. 2305), whichever is applicable. In
cases where the spouse of the employee
is unemployed or is a non-resident citizen
deriving income from foreign sources, the
employed spouse within the Philippines
shall be automatically entitled to claim the
additional exemptions for children.
4. Submission of Statement of management
responsibility. A statement of management
responsibility should accompany the ITR to
be filed by the taxpayers. This should be
duly signed by the individual taxpayer, or
by the president, or any officer performing
similar functions in the case of corporations.
5. Two or more checks per tax return.
In paying your taxes, two or more checks
in payment for a single tax liability are
allowed provided that said checks are prepared
in accordance with the provisions of
Revenue Regulations No. 16-02. In preparing
the check, the taxpayer should indicate
in the space provided for “PAY TO THE
ORDER OF” the presenting/collecting bank
or the bank where the payment is to be
coursed and “FAO Bureau of Internal Revenue”
as payee. The taxpayer identification
number (TIN) should be written under the
“ACCOUNT NAME.”
Cash (up to P20,000) and check payments
for annual income tax payments of individual
taxpayers are allowed to be paid with
the cashier of the Revenue District Office
(RDO) for five working days prior to and
until April 15.
6. Installment payment. When the tax
due exceeds P2,000, the taxpayer may
elect to pay in two equal installments --
the first installment to be paid at the time
the return is filed and the second, on or
before July 15 of the same year.
7. “No payment” returns. “No payment”
returns, including refundable/creditable returns
with excess tax credit carry over, and
returns qualified for second installment
shall be filed with the RDO where you are
registered or with any Tax Filing Center
established by the BIR.
8. Retention of records. Records and
information pertaining to, as well as copies
and proof of filing/payment of the filed
returns should be retained and kept safe
for at least three years in preparation for a
possible BIR audit.
Taxpayers with gross quarterly sales or receipts
exceeding P150,000 shall have their
books of accounts audited and examined
yearly by independent Certified Public Accountants
and their ITRs accompanied by
a duly accomplished Account Information
Form (AIF) or audited financial statements.
To ensure compliance with all other tax
filing requirements, taxpayers should keep
abreast of upcoming BIR announcements
and bank bulletins concerning the schedule
of extended banking hours, rules on
out-of-district filing, and the responsibility
of authorized agent banks.
The author is a senior tax associate with Punongbayan
& Araullo, a member firm within Grant Thornton
International Ltd. For comments or inquiries, please
e-mail Cha.Mandap@ph.gt.com or call 886-5511.
Further enquiries, please contact Melissa Valledor
agt 886 5511 loc 633 or 886 5577; Issued on: 24
January 2012
About P&A:
P&A is a leading professional services firm with a
proven track record of high-quality work. P&A provides
value-added services to clients through a clientcaring
team of audit, tax and business professionals
who utilize leading-edge systems and technology
and are guided by the highest standards of quality,
integrity and competence. P&A is a member firm
within Grant Thornton International Ltd.
SME 17

PHOTOS BY JOJO GLORIA | GROOMING BY RON MACLANG
SME
Profile
Designed for Growth
Gerry Choa leads PRO-FRIENDS to real estate success
through astute planning and by listening to the market
by Cecile J. Baltasar
Inside the PRO-FRIENDS office building in
Mandaluyong, there is an early-morning
excitement amongst the employees.
A big happening is up today and everyone
—from the friendly lobby security guard to
the corporate communications manager—
is buzzing with anticipation. The event?
Their beloved Chairman Gerry Choa—who
has maintained a very low-key image—will
have a full-fledged interview, and a photo
shoot to boot. And there is a bonus: he
is being made-up for the accompanying
photo shoot.
“Sir, pa-autograph naman,” is heard
often throughout the morning as various
employees stop by the conference room
where the “make-up session” is being
done. Mr. Choa laughs and threatens
promotion to chairman, effective
immediately, to anyone else who treats
him as a celebrity.
It is in this friendly and almost irreverent
atmosphere that PRO-FRIENDS (Property
Company of Friends, Inc.), a 13-year-old
real estate development company, thrives
and grows exponentially.
His life’s purpose
Gerry Choa grew up in Pasay helping
out his parents and his siblings in their
family’s small retail hardware store. He
lifted sacks of cement, did inventory,
and arranged lumber and pipes in their
makeshift shelves. When he wasn’t
working or studying, he and his siblings
perched outside their neighbor’s house and
watched TV through the window.
SME 18

“But we never felt poor,” says Gerry. “We
never felt sorry for ourselves.” Instead,
what their austere upbringing gave the
Choa siblings were lessons in the value
of money, hard work, saving, and sharing
with each other. When they were small,
for example, Gerry took 5 centavos from
the money he earned doing odd jobs and
bought a plastic cup of pineapple juice
from a vendor down the street from their
house. He called over his younger sister
and together, they shared the cup of juice.
When he was a teenager studying at Grace
Christian High School, Gerry graduated
into selling. And it was around this time
that he experienced something that would
change his life forever. He was in Sucat,
Parañaque on the same day of the burial
of sugar tycoon and philanthropist Don
Antonio Roxas Chua. The procession of
the mourners was so long that even while
the hearse was already inside the cemetery
on Sucat Road, the end of the procession
Lancaster Estates,
Alexandra house model
was still making its way down South Super
Highway. This was when Gerry chanced
upon it.
“It was then that I reconciled my Christian
education with my parents’ upbringing,”
says Gerry. “I saw how Don Antonio
affected so many people that even on his
death, they were there for him. I realized
that the value of life is not measured by
riches but by how your life affects others.
I had found my purpose in life.”
The beginning
In 1986, Gerry, under various companies
that he put up with different partners,
started developing real estate. He stayed
in the industry, operating his succeeding
corporations either solo or with his
siblings.
“In 1999, we decided to put up
PRO-FRIENDS with only my family
as shareholders so that we could
independently grow the company with the
values important to us and in the culture
that we thrived in,” says Gerry who began
the company with his wife as his boss
(“My wife told me to work, and I worked.
It was a good set-up”). This was right after
the crash of 1997 when banks didn’t want
to loan out. So Gerry and his team had
to develop their own credit system. They
collected from their buyers themselves
and then they dealt with the banks so the
banks would liquidate back to Gerry. “Only
Plantersbank came through and helped us
out,” says Gerry. “So our relationship with
them is very solid.”
Taking that kind of risk, but cautiously
and only after tremendous research, has
become PRO-FRIENDS trademark move.
Their first project was Villa de Primarosa,
a 10-hectare housing development they
bought off a bank for rehabilitation. They
turned the development around and
payback came after five months.
Park Regency Residences
swimming pool, the biggest
village pool in the province
NEW PHOTO
SME 19

SME
PRO-FRIENDS was able to eventually
expand the project to 33 hectares. “When
it is risky, when no one wants to be there,
that’s the best time to make your move,”
says Gerry. “Demand is high, there’s no
competition, so you can write your
own rules.”
With such an aggressive approach, it was
not obvious to everyone that this new
powerhouse of a development company
was still at its infancy. Gerry began PRO-
FRIENDS with a staff of eight. Office
furniture was sparse and at lunch, all eight
met at the “pantry dining table” which
was a single monobloc picnic table. Each
would bring out his baon and inevitably,
about three of them would have Pritong
Isda in his lunchbox. Sharing lunch was a
given, or perhaps, a privilege.
Thirteen years later, PRO-FRIENDS is now
a company of 800 employees, most of
whom Gerry knows by name. Each of
these employees is encouraged to sound
off. After all, asks Gerry, “How are we
going to know what’s happening on
the field, in selling or planning, if there’s
no open communication?” In fact, says
Monica Morales, PRO-FRIENDS’ Corporate
Communications Manager, “He even
knows some of the kids of his employees.”
This culture of family is reflected in the
corporate hierarchy, as well. Everyone who
goes above and beyond his or her work
can get promoted several ranks ahead.
Planning ahead
Gerry, whose success can be attributed
not in small part to his penchant for
making plans, cannot stress enough how
important planning is to PRO-FRIENDS
projects. “Our company is built on
planning,” he says. “We do intensive
research for each potential project, and
even for existing ones, and come up with
a Plan A, Plan B, even a Plan E. I don’t
regret the extra plans, even if we waste 90
percent of them, because making plans is
the cheapest thing to do. The best thing
about having a plan is knowing what to do
when other plans don’t happen. You can
pinpoint exactly where something goes
wrong, which makes it easier and quicker
to fix in the long run.” This business model
was built so that each project could stand
alone and take its own risks.
There were times, however, when Gerry
didn’t foresee developments. In 2004,
sales of Pro-Friends shot up 100 percent.
Unfortunately, they were not tooled up
then; they did not have enough people
to handle the market influx. So they
experienced servicing problems. And to
deal with that, he did something no person
outside the industry could probably take.
“We decided to stop growing,” Gerry
says. “We had to tool up before growing
again so we could be ready for anything.”
From 2005 to 2006, PRO-FRIENDS halted
growth. They spent this time instead to
tool-up even beyond necessity. By the end
of 2006, sales had gone up again and
PRO-FRIENDS was more than equipped to
handle it. “The decision to stop growing
is one you have to make,” he says. “It is
not about market share, but about a family
wanting to live in a dream house but not
being able to because of servicing problems.”
Gerry’s philosophy is also evident in the
Lancaster Estates which PRO-FRIENDS
is developing in Alapan, Imus, Cavite.
They put in a school in consultancy with
the LaSallian Supervision Office for the
community and by filling it up with all
the necessary facilities, they stand to lose
300 to 500 million in the next three to
Leighton Hall,
Lancaster Estates’ clubhouse
NEW PHOTO
five years while waiting for enrollment to
fill up to capacity. Gerry doesn’t believe
in a bad business year, he says there’s no
such thing. All one needs to do is adjust
one’s business model and know the
people you are working for. “When you
understand your market, you can actually
help upgrade their lives,” he says. “By
putting in that school everything that a
student would need for his education,
we transform the students’ lives and,
consequently, their families, as well. You
need to feel what your market feels in
order to serve them properly.”
In fact, PRO-FRIENDS is known in the
industry as the company with an acute
understanding of its market. In the next
two to three years, Gerry wants to focus
on that and build up his company’s
customer service arm. “We will serve our
customers to the next level,” he says.
Design specifics
and applications
In May 2011, Gerry celebrated his 52nd
birthday. On that day, he stepped down
from being CEO of PRO-FRIENDS and
became Chairman, instead. “I’m now
on my second life,” Gerry jokes. But, as
usual, he didn’t turn a year older without
planning for it. Approaching it, Gerry
made sure that he took care of things,
getting his family in good order, setting up
his company well enough so that it would
be ready for any eventuality.
SME 20

Bellefort Estates,
Sabine house model
His varied interests are more evident when
he talks about current events, such as the
RH bill, with a surprisingly passionate tone.
“The Philippines has a very large domestic
economy,” he says. “Our population is our
best economic tool. All you need to do is
educate everyone, and that doesn’t have
to cost much. Once all our children are
educated, think about how much they can
contribute to our economy. “Our country
is really in a very good place.”
One would assume that someone who
spends his life making plans would be a
highly-strung person who is so nervous
and tense that he barely smiles and
rarely jokes. Gerry is the opposite. He
smiles often, peppers his statements with
witticisms, and has an easy air about him.
Gerry’s office shelves are filled with books:
Be the Solution, Italian Painting, Battle
Hymn of the Tiger Mother, The Magic
of Thinking Big, Catholicism for Filipino
Catholics, among others, and several
more coffee table books about design and
architecture.
Eternally optimistic and passionate about
his work, Gerry shoots off advice to
young people: “Love your work. There
is no grand design to follow. Just keep
improving and allowing yourself to
be pleasantly surprised by life’s turns.
Only then can we do our share in God’s
creation. And that is perfection.”
PRO-FRIENDS is one of the country’s
fastest growing real estate developers,
with 52 finished developments and 36
on-going projects. They are the developer
of Bellefort Estates, Lancaster Estates,
Carmona Estates and Parc Regency
Residences. For more information on PRO-
FRIENDS’ properties, please call (02)491-
7700 or visit www.profriends.com.
The Sage’s Words
Gerry Choa, Chairman of
PRO-FRIENDS, can write a self-help
book from his life.
Pre-empting this, here are some of
his wise words:
“There are lots of
money in our economy.
You should be very
proud of your country.”
“A bad business year is
still a good year as long
as you learn.”
“Once you help better
the lives of kids, you
better the lives of
their parents, families,
and finally, society in
general.”
“The trick in making
difficult decisions is that
you don’t dilly dally
in making them. If it
needs to be done, do it
immediately.”
SME 21

SME Profile
The Man
Who
Grew the
Humble
Banana
by Therese M. Gutierrez
The sun looked down kindly as the
gentle breeze swayed its leaves, its roots
anchored deep in the sandy soil, and its
trunk carried the burden of sweet produce.
Up on the rocky mountain terrain of Sitio
Pao-pao in General Santos City, thousands
of hectares are peppered with the humble
plant—the banana. And there smiling,
almost as sheepishly as a little boy, is the
man whose vision made it possible,
Patricio Amadeo.
His voice, soft and gentle, but his laugh
hearty, he spoke of years gone by with
vividness, his mind sharp but his demeanor
gentle. At 73 years old, Manong Pat—a
name coined by people who work for
him—still oversees the operation of Phela
Resources Inc., his business engaged in
banana export to Japan through DOLE-
Stanfilco Incorporated. Rising up early, he
greets the morning sun as he makes his
rounds, going through their makeshift
sheds that house the packaging of
the bananas.
“First time ko ma-interview,” (This is my
first time to be interviewed) he says with
a chuckle. Not that there were no offers
before—big television networks have
approached him for an exclusive—but
he has gently turned them down. “What
for?” he says. With a slew of businesses
under his belt, Manong Pat remains
undoubtedly humble, always tracing his
roots back to his modest beginnings.
SME 22

Taking the Leap
Born and raised in Iloilo, Patricio Amadeo
worked as a jeepney driver. “Life was
hard,” he narrates, “Isang kahig, isang
tuka” (hand-to-mouth existence). The
hardships he experienced gave him
the resolute desire to achieve more in
life. Then at 30 years old, with his wife
having recently given birth to their first
born, Amadeo made a pivotal decision to
transfer to General Santos, then Dadiangas
Town, to see if life out there could afford
him better opportunities.
His decision to leave his hometown was
based on a multinational company—not
that he worked there. At that time, Coca-
Cola was opening a plant in Dadiangas
and he thought, “If a big company was
confident of setting up a firm in the town,
that must be a good sign of economic
boom in the area.”
With a meager P10, Amadeo, with his
uncanny skill of looking out for great
opportunities, set up business making
school bags in the small sleepy town.
“Madali lang gumawa ng bags” (Bags
are easy to make), he narrates. Business
was brisk; Amadeo sold his wares in the
public market, and after gaining capital,
he started several more enterprises—going
into aqua- and agri –culture as well hotel,
furniture and retail (hardware) business.
The Lakatan variety proved to be a
resilient specie—unaffected by pests
and could thrive on hilly terrain
His Vision
Now enjoying a comfortable life which
is a far cry from his life back in Iloilo,
Amadeo felt a nagging desire to help
his fellowmen. “Gusto ko makatulong.
Alam ko kung paano ang mahirap na
buhay dahil napagdaanan ko ‘yun. Yun
talaga ang vision ko.” (I really wanted
to help because I know how difficult life
can be. And that has always been my
vision). “I am not ambitious,” he said
with a chuckle. “If I eat three times a
day, even without merienda (snacks),
I am happy. As long as I am helping
others, I am happy.”
Bananas get a thorough
rinsing before packaging
Having recently bought land in the uphills
of General Santos City, he thought of
tapping the indigenous people to be
his workers. “Dito sa bundok, walang
employment, walang opportunities”
(Here in the mountains, there are no
employment opportunities), he laments.
“They cannot write, and they can only
speak in Bisaya,” says Amadeo, thus
greatly limiting their chances of decent
work. But knowing the hilly terrain like the
back of their hands, the indigenous people
proved to be his great asset to
his company.
SME 23

SME
The Banana Boom
Unpredictably rugged and almost barren, Amadeo, started
planting Jumilina trees. Its hard wood provided a constant
stream of raw materials for his furniture business. But although
profitable, the trees took years to mature and the widespread El
Niño in the country stunted its growth.
Not to be shaken, Amadeo thought of planting early crops—fast
maturing plants that will bear fruits within a year. Although the
hilly terrain did not guarantee profit, he took the chance and
planted banana. After all, he thought, “bananas planted on
higher ground yield sweeter fruits.”
The steep slopes and uneven plateaus of the mountain proved
to be tricky. He needed a variety of trees with a sturdy trunk, one
that could hold the weight of its fruits. The Lakatan and Señorita,
the local varities resistant to pests, proved to be the best choice.
The firsts few harvests were sold mostly in the public markets
of GenSan, Cebu, Iloilo, and Manila. Although one without a
background in banana growing, Amadeo muses, “God must really
love me,” as business continued to flourish and do well locally.
“The banana is a versatile fruit and Filipinos naturally are banana
eaters,” he shares.
Manong Pat shows how
to properly cut bananas
from the stalk
SME 24

At about the same time, pest
contamination in bananas was a big
concern, especially for exporters. Dole, the
world’s largest producer and marketer of
high-quality fresh fruits, stumbled upon
Amadeo’s produce, took interest and
asked for several samples of the fruit. After
passing the stringent set of qualifications,
Dole made them their sole supplier of
Lakatan and Señorita varieties for export
to Japan.
With a thriving business, he continued
to purchase additional land, and invest
more in capital. “We opted to bank with
Plantersbank,” he shares. When other
banks turned them down for loans,
Plantersbank was ready to help. “Madali
sila kausap,”(They are easy to talk to) he says.
Paying it Foward
Life has indeed been sweet for Amadeo.
Phela Resources Inc.—whose unique name
Phela was derived from the first letter of
the family member’s names —continues to
enjoy growth. Not only does the company
“The company provides
close to 600 jobs and
transformed Sitio Pao-pao
into a thriving community.
provide jobs to some 600 workmen and
women, it has transformed Sitio Pao-pao,
a once humdrum countryside setting to
a thriving community with roads wellbuilt
and schools from elementary to high
school. “I want to give the people here
in the mountains a good chance in life,”
he smiles. With job opportunities and a
sound educational system in place for the
children of his workforce, it is no wonder
that Amadeo has taken on a patriarch role
in his company.
”
The cool crisp air blows and the banana
plant towers above. Patricio Amadeo
smiles almost sheepishly, as he looks
at hectares upon hectares of greenery,
“It’s a pretty sight,” he muses. He has
accomplished much in business—but more
in life. He is more than a business owner,
more than an entrepreneur; he is Manong
Pat, a visionary who brought the company
to life and made a difference in the lives
of others.
SME 25

SME
Save Mother
Earth
Environmentally
Progressive
There’s nothing wrong with
progress; in fact everyone wants
it, especially financially. However,
some societies nowadays seem
to progress for the worse that they ruin
natural resources provided to them just
for the sake of development. Metro
Manila, for one, is very progressive yet is
considered as one of the most polluted
cities in the world due to the waste
emitted by some small and medium
industries.
But gaining profit while continuously being
environmental conscious is still possible.
That is what STENUM has believed in
for their over 20 years of existence.
This Austria-based consulting and
research company has given sustainable
development support to manufacturing
companies in Europe. “We take the
pressure out of the company by reducing
material and energy streams,” Dr. Thomas
Dielacher, Managing Director of STENUM,
says. Now their cause has landed in
the Philippines, in the form of Green
Philippines Island of Sustainability (GPIoS).
GPIoS came to the country in 2007 as a
project backed by the European Union
under the SWITCH-Asia Programme.
Around 30 companies were initially
introduced to an approach that married
environmental responsibility and
profitability—referred to as EcoSwitch.
“When we make energy smaller, we have
less to purchase. We have less emissions
and less waste, so less waste treatment as
well. It’s good for the environment and for
the pocket because less purchase means
less to pay,” Dr. Dielacher explains.
Until 2013, GPIoS will be open to SMEs
specializing in manufacturing and services
in Metro Manila, CALABARZON, Clark,
and Subic. This goal is made possible by
local implementing partners which include
Philippine Business for Environment (PBE),
Philippine Chamber of Commerce and
Industry (PCCI), and the Department of
Environment and Natural Resources (DENR)
just to name a few.
GPIoS has also found a reputable partner
in Planters Development Bank, which
shares the project’s environmental
initiatives. Through Plantersbank, GPIoS
can reach out to a pool of SMEs regarding
their cause. Companies that intend to
prioritize environmental consciousness
can avail of workshops, seminars, and
individual consulting with GPIoS without
financial costs. “When businesses have
a problem, we’ll solve it for them. But
we also show how to analyze it, how to
find out the best options, and how to get
them implemented. And soon, they can
SWITCH-Asia’s GPIoS
teaches Filipinos how to
preserve nature without
breaking the bank
by Louise Myjel A. Guevarra
do it on their own,” Wilson Baldonado,
Sustainability Officer for GPIoS, explains.
Plantersbank, meanwhile, is provided
with learning opportunities concerning
Cleaner Technology, Pollution Prevention,
Waste Reduction, and other topics covered
by GPIoS and their resource personnel.
They serve as project liaison—mobilizing
participating companies and taking charge
of logistics for seminars, workshops,
meetings, and on-site visits.
There are three training modules that
businesses can enroll in depending on
its size and nature: ECOBONUS caters to
medium and large companies, ECOFOCUS
to small and medium, and ECOSENSE
to micro enterprises with ten or less
employees. At the end, participants are
expected to learn how to optimize their
resources, while improving their energy
efficiency and waste management, and
reducing production and maintenance
cost. The workforce should have learned
how to be more responsible, and the
company as a whole should have improved
working conditions and better legal
compliance.
GPIoS manages the annual EcoSwitch
certification program that will disseminate
the best practices as part of its “Shining
Showcases” project. These, in turn,
will prove to society that caring for the
environment can still be profitable, no
matter how big or small a business is.
SME 26

SME
Much of modern life is
defined by stressful living.
But you don’t have to fall
into this trap. If stress is
the enemy, then it pays to
know more about it.
Health Watch
Stressing
Over Stress
by Louise Myjel A. Guevarra
Stress is actually a normal physical
response, perhaps born from human
evolution. In the wild, ancient humans
needed the sensation of stress to help
keep them on the lookout versus
predators. These days, however, we’re no
longer worried about lions and cobras. So
our stress mechanisms are usually triggered
by relatively more trifling concerns.
Where does it start?
Stress is triggered by both external
and internal stimuli. External stimuli
may include major life changes (work,
relationships, and financial status, for
instance), while internal stimuli include
one’s health and fitness, emotional wellbeing,
and unrealistic expectations.
When something threatens us, our sense
of defense heightens—a process known as
a stress response. This protection helps us
stay focused and alert despite what’s going
on. So if you think about it, while stress
may often be associated with negative
situations, biologically speaking, stress can
actually be viewed in a neutral, or even
positive, way.
What can stress lead to?
Unfortunately, when coupled with anxiety,
stress can lead to negative effects. Physical
effects of stress can be felt from the brain
down to the reproductive system. These
include erratic sleeping patterns, muscle
tension, headache, and gastrointestinal
disturbances. Emotional effects,
meanwhile, include changes in eating
habits and mood swings.
In extreme cases, stress may also lead
some people towards unhealthy behaviors
such as alcohol or drug abuse, which may
ultimately affect their quality of life.
How can we manage stress?
Stress may be unavoidable, but one can
learn to manage it to avoid its negative
effects. Don’t let the challenges of life
take charge. Instead, take charge of
your thoughts, emotions, environment,
schedule, and all the possible problems
you may typically encounter in your life.
For instance, when faced with a situation
that you know will cause you a lot of
stress, always find some way to give
yourself some slack. Remember that there
is always room for negotiation.
Second, learn how to react in a more
positive way to the causes of stress—
remember that a positive outlook and
response lead to positive effects as well.
Much of stress is imaginary: it’s all in the
mind. The “glass is half empty, glass is half
full” saying is very much true.
More importantly, don’t let your life be
an endless series of stressful events. Make
time for rest and relaxation. Once you get
used to spotting the possible causes of
stress, you will learn how to stay in control
even as the pressure builds.
Stress
findings
Researchers are continually studying
stress in order to delve deeper into
its genuine effects on people. Here
are some of their recent findings.
� A study in the Journal of
Proteome Research has found
that food bingeing doesn’t do any
favors. It is, however, good to eat
dark chocolate. The flavonoids
found in dark chocolates provide
a soothing effect for those who
feel stressed out. Around 1½
ounces of dark chocolate a day for
two weeks can reduce one’s level
of stress hormones. That’s good
news for chocoholics!
�
� If you’re feeling stressed out
because of someone, it may
be best to sleep it off. People
who confront others before
bedtime are only making things
worse, according to Andrea
K. Wittenborn, PhD, Assistant
Professor in the Marriage and
Family therapy program at Virginia
Polytechnic Institute and State
University. Stress may cause
the part of the brain called the
amygdala to cue off the fight-orflight
response, thus limiting one’s
ability to have a calm, rational
discussion. “If you’re already
angry or frustrated, you become
emotionally flooded and unable
to think clearly. Plus, sleep is a
powerful antidote to stress,” says
Russell Rosenberg, PhD, director
of the Atlanta Sleep Medicine
Clinic and vice chairman of the
National Sleep Foundation.
�
� Brain shrinkage has been linked to
stress. Yale neurobiologist Rajita
Sinha’s new report published in
Biological Psychiatry states that a
deep history of stress can cause
the brain to have less gray matter
than expected in a part of the
prefrontal cortex that regulates
emotion, blood pressure, and
blood sugar.
SME 27

SME
Power in
your hands
Everything needs batteries these days.
Fortunately, one of the latest trends in the tech
world is for you to have your own portable
power bank. Here, the editors of
Technoodling.net, one of the country’s premiere
tech sites, have offered to give us a rundown of
some of the most notable and totable battery
packs in the local market today.
So what makes for a good portable power bank?
Lots of power, of course. Plus compatibility
with most of your mobile devices. These would
include iPhone and Android phones, phones by
Nokia, LG and Samsung, game devices, cameras
and the like. Tablets? Maybe. Laptops? No, they
need way too much power.
Energizer XP2000
Portable Charger
P1,695
If you want something
that’s less cute and more
functional-looking, then the
XP2000 may be more up
your alley. Specs-wise, it is
nearly similar to that of the
MiLi Power Crystal, down
to its battery charge and its
six interchangeable tips.
Tech Review
Third Rail System
Est. Php 3,900
The Third Rail system
consists of a slim protective
case for the phone that
features a piggybacking
mechanism, which allows
you to snap on an extra
battery pack with ease.
MiLi Power Crystal
P1,650
This can provide up
to 12 hours of extra
talk time. Includes six
interchangeable plug tips.
CD-R King Portable
Power Bank
P880
CD-R King’s Portable
Power Bank is actually
quite impressive, with
3,000 mAh of power and
interchangeable tips for
most portable devices.
MiPow Power
Shadow
P2,599
The Power Shadow is
a car charger for USB
devices. The top part
of the charger can be
pulled out to become
a snap-on portable
battery pack for
iPhones and iPod
Touch devices.
SME 28

Business Owner’s
Guide to Reading
and Understanding
Financial Statements
by Lita Epstein
P 1095.00
Financial statements are
referred to by managers
and business owners when
they want to know how
a company is doing in
terms of financial health.
There are different types of
financial statements, all of
which are important. This
book will help managers
and business owners
learn about these types of
financial statements, and how to properly understand them.
This book covers the differences between the various types of
financial statements, how these statements can be used for
making business decisions, and understanding the importance of
the budget process. Keep Business Owner’s Guide to Reading and
Understanding Financial Statements on your desk and help ward
off potential financial missteps.
It’s Your Biz: The
Complete Guide to
Becoming Your Own
Boss
by Susan Wilson Solovic
P 1495.00
SME
Everyone can start their own
small business. It can be
both a good thing (ditching
corporate job to pursue a
passion) and a bad thing
(falling easily into the pitfalls
of new businesses).
Worth Reading
It’s Your Biz: The Complete
Guide to Becoming Your
Own Boss serves as a guide
to those who are aspiring to have their own profitable businesses
and improving the odds of its success. With this book, you’ll
get information on how one can gauge the qualities required to
succeed; how to build a business plan that works; how to choose
partners, advisers and employees wisely; and how to protect your
company. And that’s just the tip of the iceberg.
Encyclopedia of Small
Business Forms and
Agreements
by Martha Maeda
P 1295.00
Thinking of starting up
a small business? The
Encyclopedia of Small
Business Forms and
Agreements may just be every
small business owners’ best
friend. This book provides
readers with information,
and even templates, for
every form and agreement
that they will need for their
businesses, including checklists, worksheets, contracts, and
human resource documents. With this book, you’ll learn how to
properly document your hiring, firing, technology, legal, merger,
acquisition, fund-raising, sales, and marketing needs.
If you prefer a soft copy instead, the book also has an
accompanying CD-ROM that also tackles the different issues,
situations, and tasks that small business owners face every day,
from start-up dilemmas down to legal matters. Encyclopedia is in
essence, a small business survival kit.
What You Need to
Know About Starting a
Business
by Kevin Duncan
P 989.00
Let’s face it, not every
business can be a sure
hit. Without the right
background and knowledge,
a business startup is likely
to fail in a year’s time.
Given that bleak forecast,
What You Need to Know
About Starting a Business
is the perfect companion
for people who believe that
they have a good business
idea but don’t know how to
go about making it happen.
This book explains the basics of starting a company, managing
money, selling your business to potential clients, and lots more, all
with the aim of helping you turn your idea into a business success.
SME 29
ALL BOOKS AVAILABLE AT NATIONAL BOOKSTORE

SME
Lifestyle
Callospa & Resort
A Place of Tranquil Serenity for
Your Mind, Body and Soul
by Ma. Cecilia Pedrocillo
For one thing, Callospa has been awarded
Best Spa by the Department of Tourism.
It has also garnered a Most Enterprising
commendation from the Department of
Trade and Industry.
The business was put together by
Evangeline Garcia, a foreign exchange
trader who wanted more from the usual
spa. She decided that if she cannot be
satisfied by existing spas and wanted more
amenities and comforts, then she might as
well put one up herself.
Callospa & Resort offers an ambience that
is out of the ordinary. “It’s like you’re in
your own little rainforest that brings you
closer to nature,” says Garcia. It therefore
comes as an advantage that the resort is
situated in Antipolo, which is still host to a
little bit of nature amidst the urban setting.
But Callospa pushes for even more. “We
also added a Bali and Malaysian touch to
our facilities, which gives us our edge,”
adds Garcia.
If you wish to find
a place where you
or someone dear
to you can relax
and enjoy a quiet
moment, then
Callospa & Resort
may be worth
considering.
The resort’s clients consists mostly of
foreigners, as well as many balikbayans.
These visitors come over with the primary
purpose of unwinding and relaxing away
from their busy work lives, so the resort
strives to offer them exactly what they
have been wishing for. But aside from
tourists, Callospa also welcomes wedding
receptions. “It feels good to be a part of
something true and solemn,” says Garcia.
To this end, the resort benefits from
referrals from family, friends and other
clients.
Garcia attributes part of her success to her
business partnership with Plantersbank.
“Being with a bank that is trustworthy is
something that makes an entrepreneur
feel secure,” says Garcia. “I chose to be
with Plantersbank because it’s a bank that
knows my business needs and is always
ready to give those needs to me.”
This also helps Garcia feel upbeat about
her business prospects. “Everybody’s
optimistic about their business and that
makes me feel optimistic too,” she says.
“Being an entrepreneur, you should be
positive about the business that you put up
and believe in yourself.”
SME 30

SME
MARCH DEADLINES
1 Thursday – LAST DAY OF e-FILING/FILING
• 1604E - Annual information return of
creditable income taxes withheld/income
payments exempt from withholding tax for
TY 2011
e-SUBMISSION
• Summary lists of sales/purchases by
VAT-registered taxpayers (all eFPS groups) for
TQ ended January 2012
SUBMISSION
• Inventory list for FY ended January 2012
• PEZA - ITR filed with the BIR on February
15, 2012 by PEZA-registered enterprises for
FY ended October 2011
REGISTRATION
•Computerized books of accounts and other
accounting records in CD-R, DVD-R or other
optical media, and affidavit on the postreporting
requirements for CAS for FY ended
January 2012
2 Friday – LAST DAY OF FILING
•Engagement letters and renewals or
subsequent agreements for financial audit by
independent CPAs for FY beginning May 1,
2012
5 Monday – LAST DAY OF e-FILING/FILING &
e-PAYMENT/PAYMENT
• 2000 - DST for February 2012
SUBMISSION
• Summary report of certifications issued
by the President of NHMFC (RA 7279) for
February 2012
8 Thursday – LAST DAY OF e-SUBMISSION
• eSales report by large taxpayers (regular
and excise) using CRM/POS and other sales
machine with TIN ending in an even number
for February 2012
SUBMISSION
• Transcript sheets of ORB for distilled spirits,
wines, fermented liquor, tobacco products,
oil, automobiles, and cigarette paper for
February 2012
Tax Calendar
12 Monday – LAST DAY OF e-FILING/FILING
& e-PAYMENT/PAYMENT
• 1600 - Withholding VAT/PT for February
2012
FILING & REMITTANCE
• 1601C, 1601E, 1601F and 1602 -
Withholding return on compensation, EWT
and FWT for February 2012 (non-eFPS
taxpayers)
• 1606 - Withholding on transfer of real
property other than capital assets for February
2012
e-FILING
• 1601C, 1601E, 1601F and 1602 -
Withholding return on compensation,
EWT and FWT for February 2012 (Groups D
and E)
e-SUBMISSION
• eSales report by large taxpayers (regular
and excise) using CRM/POS and other
sales machine with TIN ending in an
odd number for February 2012
SUBMISSION
• Transcript sheets of ORB for mineral
products for February 2012
• Sugar cooperative’s list of buyers of sugar
for February 2012, together with a copy of
certificate of advance payment of VAT made
by each buyer appearing on the list
• Information return on releases of refined
sugar by the proprietor or operator of a
sugar refinery or mill for February 2012
DISTRIBUTION
• 2306 - Certificate of VAT/PT withheld
for February 2012
• 2307 - Certificate of creditable PT
withheld for February 2012
REMITTANCE
• PhilHealth - ME-5 contributions for February
2012
• SSS - R-5 contributions for February 2012
of employers with SSS identification numbers
ending in 1 or 2
13 Tuesday – LAST DAY OF e-FILING
• 1601C, 1601E, 1601F and 1602 -
Withholding return on compensation, EWT
and FWT for February 2012 (Group C)
14 Wednesday – LAST DAY OF e-FILING
• 1601C, 1601E, 1601F and 1602 -
Withholding return on compensation, EWT
and FWT for February 2012 (Group B)
REMITTANCE
• HDMF - M1-1 contributions by employers
whose names start with letters A to D for
February 2012
FILING
• SEC - AFS for FY ended November 2011 by
corporations whose securities are registered
under RSA or SRC
15 Thursday – LAST DAY OF e-FILING/FILING
& e-PAYMENT/PAYMENT
• 1702 and 1702-AIF - Annual ITR and AIF for
corporations and partnerships for FY ended
November 2011
• 1704 - IAET for FY ended February 2011
e-FILING
• 1601C, 1601E, 1601F and 1602 -
Withholding return on compensation, EWT
and FWT for February 2012 (Group A
e-PAYMENT
• 1601C, 1601E, 1601F and 1602 -
Withholding return on compensation, EWT
and FWT for February 2012 (all eFPS groups)
FILING & PAYMENT
• 1707A - Consolidated CGT return for
shares not traded in the stock exchange
for FY ended November 2011
REGISTRATION
• Bound computer-generated/loose-leaf
books of accounts and other accounting
records for FY ended February 2012
e-SUBMISSION
• Summary list of machines (CRM-POS)
sold by machine distributors/dealers/
vendors/suppliers for TQ ended February
2012
REMITTANCE
• SSS - R-5 contributions for February 2012
of employers with SSS identification numbers
ending in 3 or 4
SUBMISSION
• PhilHealth - RF-1 remittance report for
February 2012
16 Friday – LAST DAY OF SUBMISSION
• PEZA - AFS filed with the BIR on February
15, 2012 by PEZA-registered enterprises for
FY ended October 2011
19 Monday – LAST DAY OF REMITTANCE
• HDMF - M1-1 contributions by employers
whose names start with letters E to L for
February 2012
20 Tuesday – LAST DAY OF e-FILING/FILING &
e-PAYMENT/PAYMENT
• 2551Q - PT for TQ ended February 2012
FILING & PAYMENT
• 2550M & 2551M - VAT and PT for February
2012 (non-eFPS taxpayers)
DISTRIBUTION
• 2307 - Certificate of EWT for TQ ended
February 2012
REMITTANCE
• SSS - R-5 contributions for February 2012
of employers with SSS identification numbers
ending in 5 or 6
21 Wednesday – LAST DAY OF e-FILING
• 2550M & 2551M - VAT and PT for
February 2012 (Group E)
22 Thursday – LAST DAY OF e-FILING
• 2550M and 2551M - VAT and PT for
February 2012 (Group D)
23 Friday – LAST DAY OF e-FILING
• 2550M and 2551M - VAT and PT for
February 2012 (Group C)
26 Monday – LAST DAY OF e-FILING
• 2550M and 2551M - VAT and PT for
February 2012 (Groups A and B)
e-PAYMENT
• 2550M and 2551M - VAT and PT for
February 2012 (all eFPS groups)
e-FILING/FILING & e-PAYMENT/PAYMENT
• 2550Q - VAT for TQ ended February
2012
SUBMISSION
• Summary lists of sales/purchases by
VAT-registered taxpayers (non-eFPS taxpayers)
for TQ ended February 2012
• Sworn statement of manufacturers or
importers on the volume of sales per brand of
alcohol and tobacco products for December
2010 to February 2012
REMITTANCE
• HDMF - M1-1 contributions by employers
whose names start with letters M to Q for
February 2012
• SSS - R-5 contributions for February 2012
of employers with SSS identification numbers
ending in 7 or 8
FILING
• SEC - AFS for FY ended November 2011
by corporations whose securities are not
registered under RSA or SRC
30 Friday – LAST DAY OF REGISTRATION
• Computerized books of accounts and
other accounting records in CD-R, DVD-R
or other optical media, and affidavit on the
post-reporting requirements for CAS for FY
ended February 2012
• Manual books of accounts and other
accounting records if using new books for FY
beginning April 1, 2012
e-SUBMISSION
• Summary lists of sales/purchases by
VAT-registered taxpayers (all eFPS groups) for
TQ ended February 2012
SUBMISSION
• Inventory list for FY ended February 2012
• PEZA - ITR filed with the BIR on March 15,
2012 by PEZA-registered enterprises for FY
ended November 2011
• BOI - Transcript sheets of ORB by qualified
jewelry enterprises for FY ended February
2012
REMITTANCE
• HDMF - M1-1 contributions by employers
whose names start with letters R to Z for
February 2012
• SSS - R-5 contributions for February 2012
of employers with SSS identification numbers
ending in 9 or 0
PAYMENT
• LGU - Payment of real property tax in
full or first installment for 2012
SME 31

SME
Gourmet Farm offers Salad bar
Gourmet Farms, the pioneer of healthy
livings, has recently brought back their
salad bar to serve all vegetarians and salad
lovers. The salad bar offers a satisfying
healthy meal with the best selection of
fresh greens and salad fixings where
you can make your own mixture of the
freshest, all-organic produce straight
from Gourmet Farm. You can also choose
from their variety of salad dressings and
add your favourite toppings such as nuts,
bacon bits, croutons, and more.
For more information about Gourmet
Farms, please visit www.gourmet.com.ph.
You may also email info@gourmet.com.ph
or call their Silang, Cavite Office at (046)
414-1049.
Binalot opens new branch at
Robinsons Otis
Binalot Foods, the Pinoy-pride-themed
dishes has partnered with Robinsons mall
to open outlets in several of their locations.
The first venture is the grand opening of
Binalot Robinson’s Otis recently. Another
two branches are ready to open this 2012
at Robinsons Place Imus and Robinsons
Metro East. Now with over 38 stores,
many of the Binalot stores are franchised
by entrepreneurs with multiple branches,
showing its popularity as the growing
Pinoy-branded franchise.
For more information about Binalot, please
visit www.binalot.com or you may call
467-8888.
Billboard
Manny O. Wines bags
international awards
The Philippines is not a wine-producing
country, but this has not stopped Manuel
H. Osmena from producing his own
Manny O. Wines which have been reaping
international awards—49 to date—in
no less than seven countries, namely
UK, France, Germany, Spain, California,
Japan and most recently, in Hong Kong’s
International Wine Competition, in which
it bagged eight international awards.
Manny O. started blending wines in 2004
in France and his first vintage 2006 was
released in the market in late 2007. With
his fervour and determination, he started
blending his own brand of wines from the
premier vineyard of Europe. Several of his
best and which internationally recognized
wines are Agapitos Rose and Branco from
Alentejo, Portugal; Sumiller Monastrell
from Yecla, Spain; and NV Celebrus Brut
Blanquette from Limoux, France.
For more information about Manny O.
Wines, please visit www.mannyowines.
com. You may also email inquiry@
mannyowines.com or you may call their
Manila office at 799-7777 or Cebu office
at 492-7788.
Echostore’s gift of hope
Echostore, the leading store for sustainable
lifestyle, offers Echostore gift certificates
all year round. The gift certificates are
perfect for those who love receiving gifts
with meaning and to those who love to
share the hope and the meaningful way
of life. Echostore is a profit venture with
a big social cause that offers products
made by cultural communities, creative
industry practitioners, women groups and
foundations to help break the cycle of
poverty through livelihood programs and
fair trade practices. Give gifts of hope all
year round with Echostore gift certificates.
For more information about Echostore, visit
www.echostore.ph or visit their Serendra
store at Bonifacio, Taguig City or you may
email echolifestyle.store@gmail.com.
Get utmost coverage for
your business!
Small and medium enterprises can now
avail of affordable and customized
insurance packages tailor-made to
their specific insurance needs. The PDB
Insurance Agency (PDBIA), an affiliate
of Plantersbank, now offers SME
Secure, a complete range of insurance
products that can cover against
calamities like fire, typhoons, floods,etc.
SME Secure has what it takes to ensure
that SMEs are fully covered. Among
their insurance partners are Federal
Phoenix Insurance Company, Inc., PNB
General Insurers Co., Inc., UCPB General
Insurance Company, Inc. and Beneficial
Life Insurance Co., Inc.
For more information about their
products and services, you may visit
their office at 9th flr Plantersbank
Building, Sen. Gil Puyat Avenue, Makati
City or you may call 884-7600.
SME 32

AD
SME 33

SME 34