Get Started

Startup entrepreneurs often agonize about booking their first deal. As an unknown supplier, potential clients are often hesitant to engage their services, even if the startup provides a vital service they need. Trust and unfamiliarity issues can often stifle deals and frustrate first timers.

VCargo owner Paulo Tibig had a similar dilemma when he started his business in 1999. He had focused on bundling services for promos and logistics marketing, and positioned his company as a one stop logistics and inventory management provider. He had a hard time getting his first deal, but over time he has learned the nuances of securing hight ticket contracts. Now, his VCargo brand is an emerging player in the local and international cargo and logistics service.

For startups looking to bag their first contract, Tibig recommends the following:

1) Know the market and come up with a unique service

Before starting VCargo, Tibig's wife who worked in marketing frequently told him about the difficulty of finding someone to do 'bundling' services. Bundling services entails putting together products for promotions like free drinking glasses with soft drinks. The process is complicated and manpower intensive, and shipping the finished product often had to be done by a separate contractor.

Capitalizing on this need, Tibig integrated the bundling service with freight forwarding, thereby allowing companies to shoot two birds with one stone, a service the company continues to provide to this day.

Tibig says that selling your company bigger than it really is can help land you a contract by creating an aura of credibility. For his part, he says when they were just starting out he would make it a point to make presentations using a laptop, which at the time was considered cutting edge.

"The laptop presentation gave us some credibility to seal deals, especially since the laptop was a top-of-the-line one. When they found out we were just a startup, they were surprised," he shares.

Bagging a high profile client is key to show other prospective clients your capability. Tibig says even if your profit is usually lower with the large client, it can be compensated by the other clients you can get by having a prominent name on your portfolio.

3) Be flexible

Early on Tibig realized that being flexible in their service hours was an invaluable advantage in getting new clients. He says that by building a reputation for being able to work on holidays and extremely tight deadlines, his company was able to land good contracts. Startups should be flexible enough to cater to a client's needs, because they don't have scale yet, and they need to do more to keep clients satisfied.

4) Get the word out

Word of mouth, especially in the Philippines, is a good way to get a contract. Start making the rounds and get invites to networking seminars and other social functions, even social networking.

"Most top level executives know each other so getting word of mouth or a recommendation works wonders for increasing the odds of getting a contract," Tibig says.

5) Maintain relationships

Maintaining relationships with clients would not only allow one to retain clients, but is also a valuable way of expanding clientele'.

"Referrals are a big help, and I make it a point to visit all of my clients annually in order to hear their concerns and to touch base with them. This is a good way of maintaining good relations with existing clients and helps strengthen your customer base," Tibig says.

Contact details:

Vintel Logistics Inc.
Warehouse #1, Armal Compound
C. Raymundo Ave., Maybunga, Pasig City
Philippines
Telephone: (02) 900.0003
Telefax: (02) 642.1829