UPDATE: Editor’s note: Added video taken by INQUIRER.net business editor Ma. Salve Duplito.
FRANCO MESINA is in an enviable position. At twenty-something, his problem is how to keep up with the success of Icylicious, his snow cone business, and how to sustain the seasonal business of FranzAvian Trading Co. Ltd., which supplies equipment to water refilling stations. Franco has been running his businesses with his girlfriend Abby Sarmiento, and they sat down with mentor Willy Arcilla for advice last March for their first mentoring session.
Because they had space in front of Fountain Cool, the water refilling station in Binondo he put up with his dad, Franco thought of selling something there. Lots of young people pass by on their way to school.
And so Franco and Abby started Icylicious just three months ago. They registered the business with DTI and SEC. They got an electric ice crusher and sourced ready-to-use syrups for the snow cones. To distinguish themselves from other snow cone vendors, Franco and Abby made sure the syrups are delicious and do not leave discoloration in the teeth and mouth. They would sell as much as 1,000 cups of 6-oz. styro cups a day for P15 a cup, so the profits are coming in swiftly. Franco foresees the return on investment to happen in five to six months’ time.
Now people have been making inquiries about franchising. One person who inquired said that one obstacle facing them is their company background. “They’re asking, ‘Who are you? What’s your background?’” shares Franco.
Is this a good time to franchise? It seems a good time. Willy says, “Milk the market before competitors come in.” But Willy is also cautioning the two that there’s a possibility of Icylicious becoming an instant hit like Zagu. The market then became quickly saturated due to the low cost of entry.
Here’s Willy’s advice:
1. Think of how to differentiate Icylicious from competitors. Look for the unique selling point.
2. Protect the patent.
3. Touch base with franchising organizations.
4. Don’t be sentimental. If the business loses its luster later on due to mushrooming of competitors, bug out.
FranzAvian’s water refilling equipment/assembly business has more favorable long-term prospects. Today they can put up two to three water refilling stations per month. But Franco says if they can streamline procedures, they can even do one water refilling station per week. They can do different setups, from residential to commercial. The company’s competitive edge is in using bigger filters for tanks, and not artificial filters and cartridges that have to be replaced monthly.
The problem is that this business is seasonal, and there are many water stations already in Binondo — few new ones are being put up. Franco sees the need to market their services more effectively to get more customers.
Because PET bottles are environmentally damaging, Willy blew Franco’s and Abby’s minds when he said, “Why not filter straight from the source? Imagine the campaign: Dump the Plastic Bottle, Save the Planet.” Franco remarked that some have already tried but all failed. Willy responded by quoting Benjamin Franklin: “I have not failed. I have found just 10,000 ways not to do it.”
And so here’s FranzAvian’s homework:
1. Research and get data about the possibility of filtering water sources. Other countries have clean potable drinking water coming out of their faucets so this is attainable.
2. Don’t commit the same mistakes made by home filtration systems.
3. Test water filtered by FranzAvian and document this. Talk to an engineer, a water expert, and a quality testing company.
4. Be clear about your mission. Don’t be opportunistic.
These all sound exciting. Let’s see how FranzAvian and Icylious fare in the coming months.
