Lessons on How to Overcome a Business Crisis from Sanicare Founder Renato Sio
After coming out of bankruptcy, the founder of Sanicare, Renato Sio, managed to grow his business to become one of the leading manufacturers of paper and tissue paper in the Philippines! Here are some business lessons he wants to share with other entrepreneurs.
Sacrifice the present for your future
Like everything else in life, there is no guarantee that your business will be successful just because you put all your effort into building it. Plus, your business could fail even if others succeed in the exact same thing!
But for Sio, the best thing to do is to sacrifice the present for the future. This does not apply to relationships, of course. He meant that when he first started doing business, he and his family had to sacrifice international travel, weekly restaurant meals, and shopping at their leisure.
Instead, they all spent their time planning and helping the business grow.
Don’t give up, move on
Sio built Sanitary Care Products Asia Inc. (or simply Sanicare) using money from his retirement pension. Some people from this company moved to Sanicare to work for him. When the company was hit by a financial crisis, he knew he just couldn’t tell these workers that he couldn’t afford to pay them and that they were now out of work. They had trusted him.
So he worked harder. He woke up early to meet with clients and spent hours looking for bankers to help him. Most banks turned him down, but a small bank gave him a loan that he was able to use to get out of bankruptcy.
Set the right price
Although some brands want to wipe out the competition by offering very cheap products, Sio did not because they also wanted their products to be known for providing the best value for money to customers through competitive pricing.
It offered the products 40% less than the big brands to attract supermarkets in the presentation of its products. As the brand grew and attracted more customers, he knew he was on the right track.
Study your market to sell more effectively
By understanding its target market, Sio was able to create products for different types of customers.
“There are two types of clients. Those who like to crumple paper and those who like to fold when using it, “he explained.
“Those who fold tissue paper like our Sanicare brand because it only takes two folds to get the desired thickness while those who like to crumple, they use the Tisyu brand because it is soft and not too rough to use.“
Apart from Sanicare and Tisyu, the business also sells fabrics of the brands Femme, Jade, Cheers and Naturale as well as household cleaners and other hygiene products.