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SME Testimonial Concept: “Hands On”
Village Motor Traders (VMT) is in the retail distribution and financing of motorcycles (primarily) and appliances (secondarily). The business had its start in 1989 when 32 year-old JOSE MARI “Chem” QUIMPO ALDECOA, unable to keep the family business (rice milling and trading) afloat, and not having landed a good job in his 1987 – 1988 venture abroad, was given the opportunity to launch a new enterprise. The motorcycle market in Aklan was then dominated by the brands using sooty 2-strokes engines. There was only one clean-burning, 4-stroke brand then. The only dealer was a Capiz-based company under businessman Pablo S. Chu who offered his friend, (Kalibo-based proprietor of the appliance store Village Marketing) Simeon Arce, Sr. the sub-dealership for Aklan. It was accepted and Mr. Arce endorsed the new business to his son-in-law Chem Aldecoa who first operated as a separate division of Village Marketing. Chem, his wife Hope and her sister Dolly invested P50, 000.00 as starting capital. In January 1996, following his father-in-law’s assessment that the motorcycle dealership business can now stand on its own, Chem opened VILLAGE MOTOR TRADERS (VMT) at its present site, the corner of Roxas Ave. and Pastrana St. in Kalibo. The first branch, fronting the Kalibo town plaza, opened in June 1998. The Culasi, Antique branched followed in February 2002; then Ibajay, Aklan branch opened in March 2003; New Washington, Aklan branch October 2004; Pandan, Antique branch in October 2005. Throughout the steady growth of VMT, capital was mostly generated internally but the swings in the cash flow proved the importance of having a P 3 million RPN Line from BPI Family Bank which VMT used time and again to maintain liquidity. Last month, VMT opened a separate store, NEXT GEN MOTORS, a “Class A” exclusive dealer of the most popular motorcycle brand. It is the first in Aklan – complete with SALES, PARTS and SERVICE function. It is housed in its own building (a first for a motorcycle dealer in Kalibo), financed by a P5 million long-term loan from BPI Family Bank. The Bank has just added P2 million to the revolving credit line, using as collateral a parcel of land acquired in 1999 trough a P1.5 million loan from the same bank. This latest addition to the credit lines comes at a critical time when more working capital is needed for NEXT GEN’s stock purchase. As a new accredited dealer, it will have to purchase by CBD for 6 months. Only after that will it be given 30-day term. VMT has gone through same challenges. In 1993, its original supplier was temporarily unable to keep up the deliveries. The easy credit terms were replaced by the difficult CBD requirement from the new suppliers. Fortunately, capital was available thru Mr. Arce’s BPI credit line. Four to five years ago, cheap motorcycles from China swamped the market and slowed down sales of the old brands. VMT opted to stick it out with the older, superior brand which has now regained much market share when the difference in quality and passenger safety became apparent. The immediate agenda for VMT is continuing the process of transformation from a small start-up to a corporate organization. The organizational structure is undergoing revision. Inventory and financial controls are being fine-tuned. Top management can soon endorse liquidity management to professionals, especially with more predictability in cash flows and more flexibility in fund sources brought about by an excellent credit record. For the long term, VMT is learning how to gain longevity from the examples of the decades-old companies featured in the book BUILT TO LAST authored by James C. Collins I. Parras. We will be on the look-out for how to take advantage of the constantly changing environment while strengthening the organization and developing new talent to take over the various roles in the company when the time comes. We intend to develop a culture of innovation in our services and business lines, fully aware that some existing ones may need to be discarded later new ones developed. “Global,” may not be such an ambitious word to describe our future thrusts, considering that we already get direct monthly remittances from OFW’s who pay for their relatives installment purchases. Along this line, the potential of e-commerce will be explored. VMT’s Vision: “Today, Aklan and Antique; tomorrow, the world” “PEOPLE ARE THE MOST VALUABLE ASSETS A BUSINESS CAN HAVE” is one important business motto Chem lives by. This is reflected in the low turnover rate of his employees. The Conceptions of the RFM group are his role models because they cane combine business competence with social and spiritual concerns and actions.
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