(Continued from Part 1, if you have not yet read it, please click here)
One month before I met my wife, I started to work and turn my troubled business around. So I did what I should’ve done a long time ago, I fired my non-producing General Manager and her cohort but kept one staff who was loyal to me. That reduced my costs tremendously. I could now afford to pay that one staff to continue to chase after the deals that we were supposed to close and I could start to pay off the debt that had piled up.
But cutting costs wasn’t enough. I needed to get more sales in so that I could get out of debt faster. So I made a few phone calls and I was referred to a person who could probably help. I called and arranged a meeting with the person and she mentioned that she would introduce me to her business partner so that we can discuss the matter thoroughly. I did not know it at that time, but the business partner was destined to be my wife.
When I first met my wife Jhoanna, I was immediately attracted to her. She was radiant, elegant, beautiful, and little did I know then, a genius. After a minute or two of introductions, I explained what I thought would be the best deal ever and handed her a 2 page proposal. After looking through it, she simply said: “Your deal doesn’t make any sense for us to get into it.” Bam! I thought I had the deal in the bag, where did that left hook come from?
Although the deal did not push through as planned, my wife made me realize one of the most important traits a successful entrepreneur should have. And that was to think about action and results, not fluff. You see the deal that I was proposing was to outsource 100% of the work of my company to them and I would take 70% while they got 30%. And how I went about pitching the deal to them was with nothing more than charm and fluffy words. My wife saw right through that and showed me with her matter of fact statement that handsome and charming I may be, that would get me nowhere. A lesser man would have just walked away, but not me. I got even more attracted to her. She gave me another reason to turn the business around.
Well, back to the drawing board I told myself. The one staff I had kept was making little progress, there was still NO income, and the debt was still piling up. I had to do something more drastic.
Now at that time, Jhoanna and I were already dating and she became my sounding board, business advisor and more importantly, my source of strength.
One of the most crucial ideas that she gave me during those times was to get a “virtual office” to lessen my operating costs yet make my company still professional looking. A virtual office is a business center service where you pay a minimal fee to rent the office address including the phone line and a receptionist without actually staying in that office. With my wife’s help (she called up all the virtual offices in town and got me the best deal), I got one that charged only Php900 per month.
Armed with this solution, I decided to let go of my Makati office and phone lines to save more on costs. I made a deal with my staff to let her bring home the computer and printer and to use her home phone temporarily. I would pay for half of the phone bill and whatever excess electricity she would consume because she’d be working from home. She agreed.
Interestingly, the Virtual Office was the key to getting our first client in. This was the next crucial lesson my wife had taught me about business: You need to package yourself well. Perception is key. The Virtual Office allowed me to look extremely professional, yet lessen my overhead.
On our calling card was printed:
Office Address: …West Tower, Philippine Stock Exchange Center, Exchange Road Ortigas, Center Pasig City, 1605 Philippines.
Phone: (632) 6873416; Fax: (632)6874645
I instructed my staff to call all our prospects and inform them that we were moving to a better office. When my staff started calling our prospects telling them that exact line and of course our office address and phone numbers, guess what? Most of the prospects’ reactions were very positive and that immediately increased their perception of us. In fact, one of the comments that my staff relayed to me was “Wow you guys must be doing really well, because that address is expensive”. Little did they know that it only cost me P900 / month!
And sure enough, after a couple of weeks, we closed our first major deal. It was for a Million Pesos Gross and that was the first sigh of relief I had in 10 months. Finally, the business was turning around.
The projects were now coming in, and in the next 6 months, we had recovered 90% of the losses which was truly remarkable. However, I was still not making any money at that time from the business, I was still in debt and for some reason, I could not pay it off. Now this is where my wife truly helped me out. The turn-around of the business was just a small victory for the real problem that had to be fixed was my unhealthy attitude about money which my wife, through tough love, patience and practicality taught me to turn around as well.
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i was never fond of reading long articles, specially business topics. but i was feeling down and accidentally read the 2nd part of your article (as instruction said, i should check this site to see the first part) and now, i can’t wait til the last part and draw some inspiration from your story. i wish to have that strength, too.
let me also recommend your site.
-Cho
Many thanks Cho. I look forward to publishing the conclusion soon. I also hope that my other articles have helped you as well. Never give in, never give up because that is what winning is all about.
-Mark
reading what you have gone through reminded me of the struggle i had starting the business myself back in 1997. like what you said strong determination to succeed, managing the funds properply being involved in the business and be employee number 1 is some of the key requirements to make any business work.
We are already 13 years old and would say much better now but everyday is a challenge and a learning experience and i think that’s what business more interesting and challenging.
Thanks for the very inspiring story which certaily be able to help me improve my way of handling other areas in managing the business. Wishing you more success and God bless.
Thanks for writing in Geraldine. Thank you also for the well wishes, and may you experience even more success and stability in your business.
“…pitching the deal to them was with nothing more than charm and fluffy words.”
Reminded me of a Guy Kawasaki YouTube video about raising venture capital money.
You and your wife are geniuses! I realized I have to develop myself and must learn how to package myself well… As your good wife have said: Perception is key. In order to become successful and wealthy, I must start to think, talk and walk as a successful and wealthy person so that people will trust me and want to do business with me. Again, thank you Sir Mark. God Bless you and your family.
Good job Noel. Hope this piece of information helps you get started in business again.
Wow! I am interested with the virtual office. Can you please send me an email about these virtual offices.
Sure, you can go here as we offer that service right now. http://www.businessmaker-academy.com/boss.html.
is it possible to have a virtual ofc in ortigas while my DTI and other licenses is registered at my Mla ofc?
Yes, it is.
Only a smiling visitant here to share the love (:, btw outstanding style and design . “Forget regret, or life is yours to miss.” by Jonathan Larson.
i feel like im the one experiencing this holahoop.. i can relate. cant wait to read more..
Glad you are eager to learn more. Keep at it Marichu!
I really like your wp web template, exactly where did you get a hold of it from?
Great Post. I like your style of writing. I think you should use your awesome writing style to get paid.
Outstanding post, you have pointed out some fantastic points, I too conceive this is a very great website.
Very nice. Been thinking of the virtual office for sometime. Read an article too from Entrepreneur Mag. So the Virtual Office (VO) comes with a receptionist? What happens if a client asks to come and see you in your office? Really curious about VO.
Thanks James! Please just call our office at 6874645 and look for Cynthia as she can explain and give you all the details.
I just love to read your articles at the Manila Bulletin… they’re informative and realistic. I do hope to learn more and eventually put your tips in actual practice… thank you for the great articles!!! more power!!!
Thanks Grace! Welcome to the project.
Inspiring story, Mark. More Action, More Results. Hmm.. Virtual Office. nice idea! 🙂
sir it is very inspiring your wife’s attitude hopefully i could also be like her and help my husband to turn our financial life around. thank you and i’ll continue reading your very beneficial advices in this article of yours .
Helping each other is one of the major support to achieve a remarkable success in our life. I hope I can do the same thing when I started my own path in entrepreneurship.
Just remember what you learned in this article and you will Ruel. god bless you.
This is just one of my AHA moments, with my 29 years, this is the first time i learned of the “virtual office”. That was really a good move considering that some clients are very particular to the location of their bsuiness partners… However, just a bit curious, how do you conduct meetings? doesn’t your clients visit you in the office address stated in your card? and does the receptionist just forward the calls to you?
Thanks for this article, it broaden my mind to possibilities.
-Mae-
Meetings are conducted usually at the clients office. If the client wants to meet at the virtual office, rooms are readily available for rent on a per need basis. Meetings have to be scheduled and no surprise visits are allowed. Hope this helps.
I’m starting to jot down notes..