Who wants to be truly rich?

(Editor’s Note—INQUIRER welcomes Dean Pax Lapid as a guest columnist starting with this issue of Project BIG. We hope that our readers will be enlightened by EntrepMBA, the last three letters of which stands for Magandang Business Advice. Those who wish to seek his advice may send their queries to the e-mail address below.) I’VE OFTEN been asked in many of our GoNegosyo events two simple but hard questions: The first one is “Dean, what is a good business? This question is unfortunately a lazy question because there seems to be an intention to start a business but wants the easy way in. Life is full of business opportunities but you need to (think) work for it.

The other question often asked is “Dean, how do you make a successful business?” This is a more serious query where one wants to make sure that he follows the right path for a business he is setting up.

I will share nuggets of business wisdom in making a successful business using the acronym TRULY RICH, but nothing beats attending a two full day entrepreneurship workshop if you’re really serious to come into business. We just successfully completed our fourth run with a jampacked crowd of 52 participants last time under BeaconLights.

T = Talent & Time

Everyone, regardless of status in life (rich or poor, young or old), God has given us a rich pool of talent and time largely untapped. Business (Life) success is a choice not a game of chance. The real successful people are those that made the choice to use well their God-given talents and maximize their time for positively changing their lives and that of others.

Therefore, find time to find your passion/ talents to create your treasures. R = Reason (compelling) to go into business. One of the most important secret for success (business or any personal endeavor) is to understand clearly your reasons for doing what you’re doing. If a person has a very strong reason for achieving a certain dream/goal, then that per- son will find the resources/time to achieve that dream/goal.

There is nothing wrong if you’re coming into business for financial reasons, but to sustain ityou have to go beyond the money.

U= understanding the logic of the business (probing)

Allow me to share with you my adaptation of Rudyard Kipling’s poem ‘Six Honest serving men.’ I think of six honest probing men They’re who what why how where & when They have worked for me all the time In making my products a gold mine Business is always a success When products stand out above the rest I thank my six honest probing men They’re who what why how where & when

L = Luck is the combination of preparedness & opportunity

The first element of luck is preparedness. This can come from your educational background, formal or self-training or experience gained from your vast corporate stint.

The second element of luck which is opportunity can come from crisis (as the Chinese say danger is either crisis or opportunity), competence which is the result of preparedness and finally creation (invention) which is a product of your imagination or inspiration.

Y= Why buy from me?

What’s your product differentiator/innovation? Do not be scared because I have redefined innovation as ‘Copying with a difference.’ You need to find your ‘ER’ factor. However, a word of caution that if your differentiator is ‘cheaper’ then your business would not last. Either the competitor will just bring down his price (considering he already has a base of customers) or you’d be bleeding with your profits.

It has to be cheaper from the perspective of the producer (you). Better, faster, stronger and nicer from the perspective of the customer.

R = Regular customer segments

The secret for having regular customers lies in the fact that there are only two things that people buy—solutions to their problems and a good/happy feeling. Your product/service must solve your customers need or gap. However, the ‘suki’ (regular loyal customers) are created when they buy from you with good/happy feeling. The total cost of buying from you goes beyond just price; it also has to do with how easy to buy from you, which is convenience and comfort.

I = Invest in people

Business is not a one man show. It is not you and your product only. Successful businesses is really about creating products for customers, creating jobs for others (so that you do not prison yourself in the business) and creating a systems so that you’ll be able to manage and multiply.

Investing in people has to do with relationship with your employees, your suppliers/partner network and most especially your customers.

C= Cash flow

A successful business must both have profitability and positive cash flow. Whether you like it or not, as an entrepreneur you need to equip yourself with the basic financial knowledge to understand/manage your financial statements. This knowledge will determine if you’re earning and growing and moving day to day.

Remember that debit/credit equals profit in order to grow, otherwise debit/credit becomes kupit from unscrupulous partners/employees.

H= Heaven (God) is the source/giver of all our treasures especially business

Our talents and a truly rich business is really Heaven’s gift to us to bless our family/loved ones as well as being able to help others. Starting and growing a successful business is going through the five rings of life.

Engagement ring as you court the business idea, wedding ring as you legally produce a baby business, suffering as you wean in the early months of your young business, enduring as you live with the ups and downs never giving up, and finally, business is God’s love offering as you become successful. I wish you all a truly rich business! For advice/comments, please send to entrep.MBA@gmail.com.

(Dean Pax was former dean of the Entrepreneur School of Asia from 2004-2011 where young aspiring students were taught how to set-up and management their own business ventures. He has already guided & mentored over 150 successful young SMEs to date. He used to be an adjunct faculty at the Asian Institute of Management doing Venture into Entrepreneurship + Entrepreneurial Leadership for Business advantage modules. He is currently doing his PhD in Organization Development at SAIDI. He is a regular industry consultant/guest resource for various companies and government agencies. He is a regular facilitator/mentor for TrulyRich Club of Bro. Bo Sanchez. His bi-monthly newsletter in Wealth Strategies & EntrepCircle has a good following. He is an active advocate of the GoNegosyo Movement (founded by Joey Concepcion) whose objective is to inspire and teach Filipinos how to move up in life. He is part of the Angelpreneurs team together with Francis Kong and Anthony Pangilinan. He is author (with Ping Sotto) of the bestselling book, 21 Steps on how to start your business, and a regular guest in the weekend QTV show Go Negosyo Kaya Mo. He is also an entrepreneur with various SMEs and AIM graduate on Masters Entrepreneurship.)