The med rep who bagged enterprenuerial success

REYNALDO Modelo used to bag big deals as a medical representative; now he deals with bags. Animatedly, he relates how faith in God and in himself made him a successful bag manufacturer.

"Nag-close shop ang pharmaceutical company na pinagtatrabahuan ko," he says. "With my P200,000 separation pay and another P200,000 loaned from the Technology and Livelihood Resource Center (TLRC), napagpasyahan ng pamilya namin na pumasok sa bag manufacturing."

Rey took a bag manufacturing course at TLRC. That he was the only male student in class and that it was his first time to sew bothered him a bit; it wasn't enough, though, to quell his excitement. "Nang matuto ako, bumili kaagad ako ng tatlong sewing machines at kumuha ng isa pang mananahi maliban sa akin."

'Office' was the 3x6 ft. area that used to be the family's sari-sari store. There were a few tables and chairs. No telephone, much less a fax machine. What used to be a garage was converted into a production area.

A few months after Modelo Bag Manufacturing officially opened in April 1991, the business hit its first snag. Rey sold their first finished products to department stores and bookstores on consignment basis, an arrangement that put Rey on the losing end. "It did not give us so much money. Consignment basis na, matagal pa ang bayad. So I changed my strategy."

Without the benefit of a telephone and a fax machine, he personally sent proposal letters to private companies and positioned his products for corporate giveaways. That was when orders started coming in and Rey was finally able to have a telephone installed in his office.

Two years into the business, another crisis caught up with Rey when for four successive months, no orders were coming in. "Lahat ng tseke ko nagtatalbugan. Ang mga tao ko, napa-pirate na. Naputulan na kami ng kuryente at telepono. 'Yung lupa kong naka-mortgage sa TLRC, na-remata na."

Yet amidst the crisis which was made worse when hypertension struck him, Rey maintained presence of mind by holding on to the one thing left for him to do: pray. "Naniniwala ako sa salita ng Panginoon. Sabi nga, 'I will never leave you; I will never forsake you.'"

Like before his prayers were answered with successive calls from Ayala Corporation, Capitol Bank and Mitsubishi Motors that were referred by former clients. What's more, the orders poured in unprecedented volumes. "Dati, pag nag-order ng 100 pieces, tuwang-tuwa na kami. Pero eto, ang Ayala Corp. -3,000; ang Capitol Bank - 6,000."

Now on its 10th year, Modelo Bag Manufacturing produces up to 40,000 bags a month per client. The number of workers has increased from two to 42. From three sewing machines, the widened production area now accommodates 15 high-speed sewing machines plus one cutting machine.

From a single proprietorship, the business was converted into a family corporation on April 1, 1996 at the Securities and Exchange Commission. It has also become a member of the Philippine Chamber of Commerce and Industry, Hiyas ng Las Pinas and the People's Economic Council of Las Pinas.

Having been struck by lightning twice, Rey believes that a setback is not an acceptable excuse for quitting. "Kung bumagsak ka man ngayon, natural lang iyan," he advises. "Bumangon ka. 'Pag nagpadala ka sa pagkabagsak mo, walang mangyayari sa iyo kundi dire-diretso kang babagsak. Analyze kung saan ka nagkamali, so that hindi mo na gagawin sa susunod."

Rey admonishes against indecision in the type of business one should engage in. "Huwag kang pabago-bago ng isip kung anong business ang papasukan mo. Instead, stretch your limits to the full potential of the market." He adds that positive thinking can do a lot to win customers. "Kahit na may problema, kung ang laging harap mo sa kliyente ay positive ka, madali moong makumbinsi at madadala ang kliyente."

With a vigor that is renewed everyday by his faith in God, Rey looks forward to the continuous growth of the family business - until the day it enters the international market.

But for now, he enjoys being an entrepreneur, and a successful one at that.*

Rochelle has been working in the field of publicity, advertising and corporate publications for ten years now. When office work is light, she finds time to research about business opportunities that abound in the Philippines. You may email the author at trade@philippinestoday.net.