Navigating the Tides

Leo's success attracted attention. Other vendors started selling fish in the neighboring barangays, increasing competition. Fluctuating fish prices, dependent on the catch and weather, added another layer of complexity. One week, a typhoon hit Catanduanes, making fishing impossible for days. He lost a significant amount of capital due to spoiled seafood.

Unexpected Losses (Typhoon Week):

Spoiled seafood: 2,000 PHP

Updated Capital (After Loss): 16,650 PHP - 2,000 PHP = 14,650 PHP

He learned a valuable lesson: diversification and resilience were crucial. He focused on building stronger relationships with his fishermen suppliers, ensuring a more stable supply and better prices. He also started offering dried fish and smoked fish, which had a longer shelf life, mitigating the risk of spoilage.

To combat competition, he emphasized quality and customer service. He started offering free delivery within a certain radius and introduced a loyalty program, giving discounts to regular customers. He also invested in a better cooler box, reducing spoilage and maintaining freshness.

Increased fuel prices for the habal-habal also impacted his profit margins. He explored alternative transportation options, researching the cost of renting a small motorcycle for longer-term use.

Increased Expenses (Fuel and Research):

Increased fuel costs (weekly): 200 PHP Research expenses (internet, phone calls): 100 PHP

Market Research:

Leo started researching the Manila market. He learned that the demand for fresh seafood was high, especially in the larger markets and restaurants. He analyzed the transportation logistics, discovering that cargo ships and ferries offered affordable options for transporting goods from Catanduanes to Manila. He also researched the permits and regulations required for transporting seafood, including health certificates and shipping documents.

He started contacting potential business partners in Manila, including restaurant owners and market vendors, to gauge their interest in his seafood products. He also researched the cost of living in Manila, including rental prices and transportation expenses.

Initial Research Expenses (Manila):

Internet research, phone calls, and initial contact with potential partners: 500 PHP Travel to Virac port to inquire about shipping logistics: 200 PHP

Savings and Investment:

Leo realized he needed to save a portion of his profits for future expansion. He started setting aside 20% of his weekly earnings into a separate savings account.

Weekly Summary (Post-Typhoon and Research):

Total Income (Week): 32,000 PHP Total Expenses (Week): 22,500 PHP (including fuel, research, and regular expenses) Total Profit (Week): 9,500 PHP Savings (20% of profit): 1,900 PHP Remaining Capital (After Savings): 14,650 PHP + 9,500 PHP - 1,900 PHP = 22,250 PHP

Leo carefully documented his research and expenses in his Excel file. He created a separate sheet for his Manila market research, including potential partners, transportation costs, and regulatory requirements.

Challenges and Adaptations:

Fluctuating Fish Prices: Built stronger supplier relationships, diversified product offerings (dried and smoked fish). Increased Competition: Focused on quality, customer service, free delivery, loyalty program. Bad Weather: Diversification of product, better storage. Increased Fuel Costs: Researched alternative transportation. Expansion Research: Saved profits, conducted market research, contacted potential partners, investigated shipping and regulations.

Leo understood that challenges were inevitable. He learned to adapt, innovate, and plan strategically. He was no longer just a fish vendor; he was a budding entrepreneur, carefully navigating the tides of business and setting his sights on the vast market of Manila.