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She had worked in a tourist transport firm for 12 years.
But her experience paid off as this equipped her in running her own rental business.
In less than a year, Ruth Soco-Terao saw her MTAG Transport started to grow and earn.
Terao attributed this to her strong foundation while working at DECO Sales, the first firm in Cebu to offer tourist transportation, and to her boss and business mentor Felix Taguiam.
?I worked in the accounting division of DECO and would sometimes answer inquiry about our services whenever the person in-charge was absent,? Terao recalled.
?That experience really molded me to become familiar with how the business works and how to run it effectively. I'm also very grateful for sir Felix whom I consider my mentor? she added.
Terao got her franchise in March of 2009 but she said she conceptualized the business in 2008 yet.
She bought three Japan surplus units of Toyota Coaster after her franchise with the Land Transportation Office was approved.
She also sought the blessing of her former boss in March 2009.
Finding the right units for her business was not difficult because her husband, Minaro, an American-Japanese, is familiar with Japan-made model vehicles.
?He helps me look for the units and check if the engines are original and not tampered,? she said.
Terao also believes that employing sound business practices will not be a disadvantage for a startup company such as her company instead it would help the business grow.
Terao practiced what she believed in. She hired three drivers, one for each unit, and gave them minimum wages even if they didn't have any bookings for that day.
She also gave incentives and overtime fees.
Terao said she wanted to give them what was due them so that in return they would appreciate her efforts and take good care of her vehicles
She also expected them to be professional in their work.
Terao said the business was break even for the first six months.
?In a month, I would need around P50,000 for the operations including my drivers' wages, rentals and bills and during those months I was just breaking even,? she said.
In October, the business picked up when local tourists went on field trips and from clients who through word of mouth learned of previous client's who availed of the MTAG Transport's services.
?Since October, my sales had already picked up and thank God I am already enjoying profits,? said Terao.
Terao also noted that she also got a lot of cancellations due to the recent typhoons.
?Some feel guilty of going on tours while our brothers and sisters in Luzon suffered a tragic experience. So I also got a lot of cancellations,? she said.
Earlier this month, Terao bought a tourist bus that could accommodate 53 seats.
?I bought the unit because I noticed that my callers would really ask if I have one and my coasters can only accommodate 24 persons. And so some with bigger groups can use the bus instead,? she said.
To start the business, Terao needed more than P3 million to buy the coasters as well as rent a space where she can hold office and serve as parking area for her units.
?So I rented a space in No. 7 Green Hills Road, Casuntingan, Mandaue City for P15,000 every month that includes the parking area,? she said.
She said she also invested another P1 million to buy the bus in order to accommodate more bookings to avoid opportunity loss.
She said the biggest challenge to her business right now is the increases in fuel prices.
?Of course if we find the fuel prices so high that we don't anymore have a choice but increase rates it will also affect us especially nowadays that most customers want to travel on a minimal cost as much as possible,? she said.
However, she said that it's a good thing that all tourist transport operators had agreed on a common rate, which was an advantage to the operators because it would avoid price wars.
Rates will depend on number of hours, distance and arrangements done by the customers such a need to drop off and pick up passengers because this would cost more.
Terao also said that customers can arrange a whole month rental for the units.
In the meantime, Terao has no plans to expand to expand since she has to see a tremendous increase in the number of bookings.
?As of now, there is none (plans for expansion) but I know we will be going there man jud,? she said.
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Successful business ventures in the transport industry are this month?s features in this section.
