Entrepreneur 30: RICHARD SANZ

RICHARD SANZ

Business: The Tea Square

Category: The Young Millionaires

"You have to take risks if you intend to strike out on your own."

"I was working as an engineer for a multinational computer firm when the combination of being overworked and underpaid drove me to explore other opportunities. After one particularly depressing day at work, I racked my brains for a business idea, and I was thinking so hard that  I got thirsty. As I was getting a glass of water, I suddenly remembered the way mother used to make really good iced tea for us kids. She would brew tea bags and sometimes real tea leaves and put in lots of ice and pure honey. It was then that I decided to venture into the specialty iced tea business."

He came up with the name The Tea Square after the t-square, a drawing tool for engineering graphics that he was very familiar with as a graduate of electronics and communications engineering. Then he took stock of his savings and realized there was no way he could start a business with what he had. He borrowed some money from his wife's employer to increase his capital to P100,000 but even then it was barely enough to set up a retail venture from scratch.

Creating a business involved creating a product line, a company name, a logo, and designing and building the kiosk. He approached the management of Alabang Town Center and was invited to present his product, and a few days later he was allowed to build his stall. he opened it on March 16, 2004, selling just one product, Black Iced Tea.

The first five months were hard. They were just breaking even and he had to learn everything mostly by trial and error. He hired one crew to serve the customers, and he did everything else: the product mix, operations, procurement, logistics, sales, delivery, cooking, accounting and bookkeeping, marketing and business development. 

By August 2004 he had developed an efficient operating system. Sales jumped especially after they put up posters at the Alabang Town Center. They were grossing P8,000 to P10,000 daily. They also introduced Iced Green Tea - they were the first to do so and it was an instant hit among customers. The next month, they were serving iced tea to the smartly dressed yuppies in Greenbelt and Glorietta in Makati. The items were hit from the start and they were soon grossing up to P20,000 daily.

Right now, their existing iced tea line is focused on four flavors of Iced Green Tea and three flavors of their new Iced Fruit Infusions, which are prepared in front of the customer as they order. They also introduced six flavors of Natural Tea Shakes, featuring 100% real brewed tea mixed with fresh fruit and blended with crushed ice.

From an employee of one, it now has 18 full-time and two part time staff, including those working at the head office. They also have six branches, five of which are company owned and one franchised. Their plan is for all outlets outside Metro Manila, except for Cebu, to be owned by franchisees. They just launched their franchising program and now negotiating with applicants from Cagayan de Oro and Davao.

He was also looking at the possibility of setting up a sort of "Tea Square Cafe" -- a bigger outlet with a seating capacity and possibly a more diverse product line.

"It amazes me to see the way The Tea Square has flourished, considering that I started with little capital and no business experience. But it was the same inexperience that taught me that I had to take risks if I intended to strike out on my own. You must also look beyond the bottom line, enjoy what you're doing and be creative, disciplined, hardworking, generous and humble. i have seen some people go into business and then let success go to their heads. They splurge on expensive cars and the latest cellular phones instead of putting the money back into business. There's nothing wrong with enjoying your earnings, but don't do it to the point of taking money away from the enterprise."

GOLDEN RULE:

" Maintain a proper balance. Entrepreneurs have the tendency to focus too much on their business that they end up neglecting other aspects of their life. It's very difficult, but I strive to strike a balance between work and family, activity and rest, worldly and spiritual pursuits. It would be very ironic if you spend most of your time working but end up losing the people whom you are working so hard for."