An Entrepreneur’s Journey to Greater Heights

By: Mr. Josiah Go, Chairman & President, Waters Philippines

My childhood

My dad was poor and started working as a market vendor at age 11 when grandpa was arrested during the Japanese occupation and grandma became sickly. He became a student leader and met my mother while in college. My childhood was very simple as my mother was quite thrifty even if she comes from a rich family. She tried to balance the budget without complaining but my father went from tutoring to insurance sales to small businesses and was already improving in his earning and career.

Journey to being an Entrepreneur

My elder brother and I were required to work part-time and do errands upon reaching the age of 16. We both worked in a small machine shop in Kalookan City co-managed by my father with his uncle. We earned a little extra allowance, even if our classmates got more allowance without having to work.

I was set to study at UST for my management course because the tuition of UST was cheaper and the location was nearer my house. However, my father encouraged me to enroll at La Salle and told me not to worry about the budget. I became a full time student only on my graduating year at La Salle because I was elected President of Englicom, a socio-civic organization that became the biggest student organization at La Salle then.

After college, I worked at RFM's brand management group for 3 years handling meat. I handled a new product, Rica first, then Swifts, then a brief 6-month dual assignment at both food service sales cum brand management during the Ninoy assassination years when there was retrenchment at RFM's sales group.

I was asked to become a partner and general manager (initially) of a new start-up business by 2 family members - an uncle and a cousin. That was the start of my entrepreneurial journey.

Challenges and opportunities in business

We were an importer of appliances from Japan, but when the Japanese yen appreciated vs. the U.S. dollar (from 240 to 120 yen), the gross margin we used to enjoy were cut by some 90% since we could not afford to increase the price. I studied the market and recommended to my Board that we just concentrate on one product, home water purifiers, because it has high unserved and underserved market. The business model was radically changed from one that sell to retail store to setting up our own direct selling force promoting consumer durables.

Today, Waters Philippines is the market leader in home water purifiers selling high quality, high technology products with unique business system that creates competitive advantage in the area of a well-trained entrepreneurial sales team, an in-house installment financing, low down payment and low monthly payments (which makes paying for water refill stations for lifetime no longer tenable), and the best incentives (housing plan, car plan, health plan and travel plan) for its independent sales leaders.

This year, with consumer durable sales declining double digit in appliance stores, Waters Philippines direct sales system has enable us to continue to grow a high double digit. Challenges were actually turned into opportunities.

What it takes to be successful?

My 5-point suggestions are:

• Your product value proposition must be compelling (meaning, it can change consumer preference)
• Target a market that is unserved and underserved, instead of entering a cut-throat arena
• Use a business system that would be difficult for competition to match or surpass. In other words, innovate strategically, instead of incrementally ? Ensure you convert compelling value proposition into compelling profit and cash flow.
• Execution makes all the difference
  My take on Leadership
  I am not an expert in leadership but I would like to suggest:
  
  • Always have an underdog mindset, even if you already know you are leader.
  • Listen well and act swiftly. Have close relationship with key customers (and even non-customers) as your alternative source of information beyond the reports you get.
  • Stay humble and don't have a big ego.
  • Invest in training and stay hungry for new learning.
  • Be well-loved and endear yourself beyond simply be respected
  • Profit earned is meant to be shared, so invest in advocacy
  • Invest in having more professional managers and upgrade processes to run the business smoothly.
  • Train and help at least 100 independent distributors earn way over P1 million a year.
  • Support my children in their own entrepreneurial plans.

NOTE: The author, Josiah Go, is president and CEO of Waters Philippines, market leader in home water purifiers and foot detox. He is also Chairman of Mansmith and Fielders, Inc., the leading marketing, sales and strategy training firm in the Philippines with the widest course offering in the Asia-Pacific region