Sowee!!!

Okay, the Hungry Woman is apologetic. I’m sorry that I’m not posting as much as I should.

This blog is supposed to be a chronicle my adventures as I shift from employee to business owner. When I started this, I had envisioned that I will have an entry every day, once a week in the least. Alas, I have not been able to fulfil that.

I do not exonerate myself from blame. I could really be more active here than I am. Though, I also must admit that part of the reason is the very slow development of things. How boring it would be if my blog read Day 1 – nothing happened. Day 2 – nope, nothing new. Day 3 – still nothing. Day 4 – yes, nothing.

But I guess my guilt feelings about neglecting my blogging duties have started to get the better of me. I mean I could write about my still-ongoing quest to find the best dalandan juice. Or I could write about my experience trying to balance a job (for the money), the nitty-gritties of starting a restaurant (for my dream), and accepting short jobs (for my soul). But is this something that will interest you?

I actually have a pretty good sense of humor. A friend doesn’t call me the mayor of crazy town for nothing. But as try to look at my life from outside, I look boring to me. I have wished so many times that I can record the commentaries in my head while the things I’m seeing or happening to me are well, happening.

So anyway, I finally found something to say, before I derailed myself with my pity party. This thought took a month to get itself realized.

Last month, I had my first lesson in securing permits.

Step 1 – get a notarized lease contract from your landlord

Step 2 – submit a copy of the lease contract and the business registration to your barangay for construction/renovation clearance

Step 3 – submit the barangay clearance together with a copy of the lease contract, copy of the business registration, 7 copies of the blue prints to secure the locational clearance, fire safety clearance and the electrical clearance from the municipal office to get the permit to construct/renovate

According to the guy from the barangay who took the time to explain things to me, once I have the permit to construct, it’s only then that I can apply for a business clearance from the barangay, which is required for the municipal office to give me a business permit.

And it is only after I have secured the business permit can I start applying for BIR, SSS, Philhealth and other gov’t requirements and employee benefits.

This is as far as I have gone.

On the side, I have almost finalized the menu (after 4 product tests), contacted countless suppliers (which I still need to organize, by the way) for the different ingredients for the menu items, signed up for a free one month job posting at jobstreet.com, unofficially hired the two team leaders, and agreed to interview two more for crew (because I need to hire 10 more people).

Earlier today, I got word that we might get the Fire Safety clearance tomorrow. Next stop, renovation clearance!!! Yipee!!!

How is the Hungry Woman?

The Hungry Woman is stressed and, though she will not readily admit it, a little apprehensive. But let’s not be alarmed, folks. It’s nothing I can’t handle. I’m just more aware of myself because I am monitoring it. This is not the time to be lax about one’s emotional and mental state.

Last week, I wrote PDCs (that’s post-dated checks), totaling approximately over half a million. My hands were slightly shaking the whole time because the checks represent money I’m supposed to pay my landlord, money I am projecting I will have.

This may seem funny, but my heartbeat at the time was faster than when I used to sneak into the house near midnight during my younger days!

And then, I learned that the cost of the construction is 3x my original projection. And just to lay it a bit thicker, the construction cost alone is more than the capital that we prepared. My faster beating heart sank a couple of notches.

Putting up a business, it’s quite an experience, and I’m still right in the middle of it.

Since this idea came about, I have been excited, challenged, apprehensive, disappointed, and happy. Nope, no sadness. I don’t want to make room for that. There are days when I feel so positive that it would seem that the store will build itself for free. And there are days when I question my own adequacies.

Once in a while, I even ask myself if I had made the right decision, taking a chance on myself and what life may throw at me outside of employment. This decision affects not just me, but people whose lives I have crossed or will cross. But when it happens, something comes reminding me that yes, I am where I am meant to be.

So I will forge on.

(Not that I have any other choice, heheh. I have already made deposit and advance payments on the location. and I have already committed employment to two people. heheh.)

(image from www.gettyimages.com)

Location, Location, Location

Location is the key to most businesses. - Phyllis Schlafly  (American political activist)

Mr. Breton didn't know about location, location, location.  - Daniel Pinkwater (author)

Looking for the right location for Agahan was frustrating, exciting, overwhelming and exhausting. I had a general idea where i wanted it. For almost two months, i spent time and money hunting.

This is a crucial part of starting a business. Unless you are so sure that you have a product or products people will trek mountains to have, it's best to find a place that is accessible an attracts your target market. No amount of ingenious marketing will improve a horrifyingly wrong location.

Anyway, I looked at several options. I started in early February, the very same week I got my cousin's yes. I logged on the net, bought Buy & Sell,  drove around the areas I wanted Agahan to be. But nothing was quite right.

In all that has happened to me so far, the smallest baby step, (you may not believe me but) I always felt that God's hand was in it. When something happens or does not happen, it's like i hear an unidentifiable voice in my head. This is it or not yet, it says. So despite external anxiety, I feel a certain calmness in my core.

Then on March 26, I was supposed to go to Ayala. But that morning, instead of taking any of my two usual routes, I took another, more roundabout one.

And that's when it happened.

I passed by this commercial building along Metropolitan Avenue. And there it was! A sign saying FOR RENT and there were a couple of numbers to call. After I was done with my errand (which was the reason for the drive to Ayala), I made the call.

Before I continue, a short note on this building. I had been passing by it so many times since I first saw it being constructed. As i pass by, I would look for a number to call so I can ask if they are entertaining inquiries. Didn't see any all those times.

Until that fateful morning. Fast forward to March 6, 2011.

That's when I found out that there is only one space left and that it's available to be viewed that day. So I went. And boy! The moment I saw it, I felt a certainty come over me. I had no idea yet how much the rental is nor how big the place is. I just felt it.

So I got the details and requirements. Since it was Saturday afternoon by then, there really wasn't much else to do. Come Monday, I submitted the Letter of Intent (LOI) needed.

The Letter of Intent is the very first step in securing your location. It has to have the following information:

1. The name of the company
2. name of the store
3. the nature of the business
4. how long do you intend to use the area

The following day, I got a phone call saying the owner wishes to speak with me the next day. So I went to the meeting and got a yes to the place with the usual caveat: reservation fee.

This fee depends on the building owner. In my case, it was equivalent to one month's rent. Once this is paid. The place is as good as yours. You can now lead designers and contractors and any other person you need to see, inspect, measure or whatever non-defacing activity should be done on your space.

Another thing you gain once you have paid the reservation fee is the two-week period to ready and pay the deposit and advance for the space. Again, in my case, it's two months worth of deposit and advance. When this is done, you next gain a two-month no-rental-charged period. This is supposed to be your construction time.

Now, since I'm still within the period, this is about all I can tell you yet. let's talk about the construction in a different entry, eh? So stay tuned? I hope?

My Type (aka preparing your articles of incorporation)

     Holy Week was a period of prayer for some, and of rest for others. I did a little of both and added some work in the equation too. It wasn't heavy work, though. Communicated with the two bidding contractors, arranged for meetings for the coming week and typed the article of incorporation, including the bylaws, the treasurer's affidavit and the secretary's certification.

     Yes, typing. As in manual typewriter typing. Well, it wasn't the whole document. (That would have qualified as my penitence if it did!) SEC made it easy for people like me by issuing a pro forma document. we just need to manually type the parts which are applicable to us. Like name of the corporation, the nature of the business, names and details of the incorporators, etc.

     I finished the deed in one afternoon, sacrificing the nails of only two fingers. Yay, for me!

     After this, the next steps are to have the incorporators sign, open an account for the company, get the bank's certification, submit all documents to SEC before May 5, the last day of the 1 month reservation period I paid for.

     Preparing the documents is both easy and hard. The typing part is easy. But deciding on the contents is not. Generally, the names of the incorporators do not need to be decided in the sense that they would have been decided ahead, as they would be the people who have invested in the business. To choose who would be the people you will be in business with is a decision excruciatingly made, almost as, if not more, difficult than choosing who will be your mate.

Next, there is the decision on where the headquarters would be. You can't just put any address. You have to be able to back that up with the necessary papers (lease contract, for example). There are also certain areas which do not allow commercial activities. 

When you fill up the Articles, you have to have the TIN and the Community Tax number of each incorporator. These information form part of the document.

Then, decisions muse be made on who will be the officers of the board. Who will be President, Vice-President, Secretary and Treasurer? The right people must be chose as they will be the people steering the boat that is the business. Their signatures will be required in crucial documents. So it's very important to choose the right people for the job. They must be able to work as a team, have the welfare of the company at heart.

     And when that's done? What's next? Oh, believe me, my friend, so much more.


(photo from www.gadgetchick.com)

What's in a Name?

With my cousin's agreement tucked in my belt, I started to look for a location. I wanted an area near the business district but not too near that the rental rates would be exorbitant.

I told a couple of friends about it. I said it's going to be called Agahan. That name just resonated in me as soon as the word came out of my mouth. Agahan is going to be an all-day breakfast place. 


They advised me to start the papers going.

So I did more research. I must register the name but where is determined by what form the company will take. Single proprietorship means DTI or Department of Trade and Industry. Partnership or corporation means SEC or Securities and Exchange Commission. 


After reading up on the matter, I decided that corporation is the way to go. As I understand the concepts, it seemed most ideal to me. Since you create a new entity when you go corporation, your personal assets are not compromised should things not go according to your hopes. 


Of course, the drawback is that it's more complicated to set up. And also complicated to dissolve. But I figured, I'm here to stay, so why not?


Next question, what's the name of the company? You have to think about this hard. It's a name which will be with you a long time. 


As for me, there are two things I want the name to say: joy and food. So after almost a dozen tries, I found the combination that I'm happy with and passes SEC's name screening.


Also, I wanted a name that I can use beyond Agahan, my chosen trade name.Why? Because I want the option to open another concept food place in the future. So I have a company name and a trade name.


But I didn't start on it right away. 


Sure, I already have the "yes". But I still have no location. And I didn't want to commit to something that is still essentially just an idea. So while I scoured the town for a location, I let my mind wander so I can further refine and put more specifics into Agahan.


And that's how Agahan started to emerge.

Let's Have Breakfast

First off, just want it out from the start that I'm not a business woman. At least, not yet. I've dreamt of being one though, for years. I was that elementary-grade who made bookmarks out of yarn, colored pencil & crayon shavings, cardboard and plastic cover to sell to my classmates who would rather play than read a book. Needless to say, the venture didn't fare well. My classmates were barbarians, and I was foolish to not consider that I'm targeting the wrong market.

Well anyway, I thought, why don't I just chronicle my adventures into setting up a business. At worst, it's just me rambling, boring someone to tears. At best, it could guide me in the future. (Surely, I'd be successful and create more than one venture!)


I made a few attempts to build something through the years. I have business ideas coming out of my ears like earwax. But nothing really happened until a couple of months before my 40th birthday. 


I had been toying with a couple of ideas in my head, trying to see which one seemed feasible. I made concept docs to put my thoughts on paper.


Then in January, my cousin-in-law came here for his annual me-time vacation. As is tradition, we had dinner. And, as is tradition, we discuss my business ideas. We do this every time he come here. We kick my ideas around to see if there is something that will catch.


This time, something did. So he told me he's interested and if I can come up with a business plan.

As I have no formal business training, not even basic accounting for non-accountants, I just researched on what makes up a business plan. That's when I found that it contains:


1. Executive Summary
2. Industry and Market Analysis
3. Business Description
4. Marketing Plan
5. Organization
6. Operations
7. Financial Statements

I poured all my heart and mind into that document. I explored my thoughts and feelings. I made changes in it to suit what I felt needed to be said. I wanted a venture exuding positive energy. I want to build a culture of respect and integrity.

I had a short time to do the plan. so I concentrated mostly on it, rather than outside of it. I gave him the business plan. The concept is simple enough. I like breakfast food. I can eat it the whole day. Most people I know are the same. And I have not heard of a good all-day breakfast place. Light bulb!

A couple of days later, he text-ed me to say that he's in, that we can do it.

On a related note, while doing the plan, I also learned that having right-brain leanings made it hard to put everything on paper.  So, when I encountered this book called, The Right-Brain Business Plan, written by Jennifer Lee, I got it though I was already in the middle of hunting for a location.

I figured it wouldn't hurt to learn more about it. A business plan is a constant work-in-progress anyway. It's never too late to continuously update and refine it.

And that, my friends, is Sequence One.

(i do not profess ownership of the rights to the photos in this blog.)