One of the designed houses of iSmart House PH
Photo from Araneta City
By Victoria “NIKE” De Dios
We often hear the cliché, gold is tested by fire. Perhaps, when it comes to resiliency, Filipinos are known for it across the globe. The COVID19 pandemic has really created a great disruption in the lives of people all over the world.
Overseas, many Filipino workers lost their jobs and after months of long and harsh lockdowns in the wake of the coronavirus pandemic. Foreign employers were forced to rescind their work contracts and this setback is something that was not expected to happen.
In the midst of crisis, the J. Amado Araneta Foundation (JAAF), the social responsibility arm of Araneta City, continues to honor Filipino entrepreneurs who navigate through the crisis and emerge stronger in its online campaign, #ResilientPinoy. Launched last July 7, JAAF #ResilientPinoy features human interest stories of resilience and recovery.
The story of the five Dubai-based Filipinos made it to the JAAF #ResilientPinoy for the way they managed to find new opportunities and stay relevant, be tough and go on at this time of the new normal. Meet our Overseas Filipino entrepreneurs Noel de Leon, Ian Dionson, Garry Corbilla, Michael Shapcotte and Art Eustaquio, our #ResilientPinoy and their inspiring story.
The Humble Beginnings
Faced with the bleak prospects brought about by the coronavirus epidemic, 5 Filipino friends in Dubai came together to discuss the topic that has weighed in on many Overseas Filipinos: going home. However, they also found themselves asking, “But what kind of house are we going home to?” The talk among themselves turned into a talk with other Overseas Filipinos… which turned into an online survey… that sparked a business idea… and that eventually became a startup business.
Thus, iSmart House PH came into being on April 2020.
Without any substantial financial capital, their only resources were their individual talents: de Leon in Creatives and Marketing Strategy, Dionson in Marketing Communications, Cobilla in Sales and Business Management, Eustaquio in Finance and Accounting, and Shapcotte in Design Development.
As the days turned into weeks, and as stories of how coronavirus has brought the Philippines’ bustling urban areas to a standstill became more common, it became clear to them that their hopes of “modern living” do not lie in the high-rises that have sprouted the already crowded cities, particularly in Metro Manila, which has earned a reputation as the most congested area in the world, where 20,785 people live per square kilometer.
In our talk with them, collectively they said, “We saw that, outside of the business impact of the pandemic, our friends and families in the outlying provinces are hardly feeling the deep social impact. We also saw that there is a huge unmet demand for low-cost housing, one that is expected to grow to more than 3 million over the next 10 years.”
Armed with this new knowledge, they made a quick study among Filipinos in the UAE and the answers further strengthened their resolve. The five friends conducted a survey, which confirmed their feeling of deep dissatisfaction over the current options of mass housing that were frequently pitched to Overseas Filipinos. In fact almost 60% of the people they asked preferred to have their own house over a condominium, no matter how appealing the amenities may be.
“This shared, unmet need became the seed for our socially-focused enterprise: iSmart House PH, which is founded on our heart-cry of “Pagbuo ng sariling bahay sa pagbabalik sa Lupang Sinilangan” (Finding our way back to our own home),” they shared. Their selling propositions then evolved which consists of the following:
• As young people who are part of the target market themselves, iSmart House PH offers to close the housing gap by offering consultancy and design services for the roughly 750,000 Overseas Filipinos in the UAE.
• Inspired by the principle of “Prudent Luxury”, iSmart House PH works closely with their clients to design their house to match individual needs and preferences. They will capitalize on the growing interest in modular structures, which range from upcycled shipping containers to prefabricated buildings, which not only speed up the design and production process due to their standard dimensions, they also dramatically decrease our environmental impact by lowering the amount of concrete required.
• iSmart House PH can also create designs based on traditional site-build construction processes when the logistics of the project do not allow for the transport and installation of modular units.
• Their unique and probably first-in-the-Philippines business model allows their clients the peace of mind to transform their house designs from paper to actual structure on their existing land by working through a carefully selected pool of technical partners in the Philippines.
Going Into the Venture
At the beginning, it was the deep feeling of homesickness that made them think of home. However, it was the collective tug-of-war between the uncertainty of staying abroad and the insecurity of finding a suitable home back in the Philippines that pushed them to think about creating a venture. Interestingly, the stay-at-home rules actually worked to their favor, as most people were bored at home, thus having a captive audience for their market survey. This, in addition to their own research, highlighted a clear need and the potential market for this service and this was the seed for the startup.
iSmart House PH’s model was simple: To offer design and project management services to Overseas Filipinos in the UAE and build the house in the Philippines.
Challenges Along the Way
As the five Dubai-based Filipinos sought out to establish the startup, they faced challenges that stemmed from the fact that they were sailing through uncharted territories:
a) Their business model was uniquely focused as an expat-owned business where the owners and clients are based abroad, but the actual build and contractors are in the Philippines. Hence, it is quite difficult for them to find references in terms of organization and operation.
b) Finding Philippine contractors that had adequate experience and knowledge on modular construction and upcycling of shipping containers.
Lessons Learned While Pursuing the Plans
a) Make challenges work to your advantage. iSmart House was built in the middle of a pandemic, out of challenges of Overseas Filipinos who want to go back home. There is an opportunity in crisis.
b) Information is important in starting a business. Read. Do research. Ask total strangers. Your efforts should be based on solid information.
c) Don’t sell products. Sell solutions.
d) When you have a personal stake in your business, passion is more important than money.
e) Strive for a clear differentiation between you and your competitors.
f) Have a personal story that people can identify with
g) Talent is the most important capital in any venture.
Wise Words for #ResilientPinoy Wannabes
Money should be a side benefit of making business. The heart of any enterprise needs to be the basic “Ps” of People, Profit and Planet. Take care of people and the planet and profit will take care of itself.
There is so much yet to be done, but, even at this early stage in the startup venture, the group is honored to have earned substantial interest and support of Overseas Filipinos.
Looking at the future, iSmart House PH hopes to see grow business models expand to more areas and impact the lives of even non-Filipinos. For now, they are taking it one step at a time, one house at a time.
The story of JAAF #ResilientPinoys De Leon, Dionson, Cobilla, Shapcotte and Eustaquio answers the questions: How can I navigate through the crisis to emerge stronger? How can I use my learnings through this experience to win in the new world? The story of bouncing back and recovering is something we could all learn from. Bend like the bamboo.
Araneta City and JAAF salute them and wish the best for iSmart House PH.
For the design and production of modular homes, you may send an email to iSmart House PH at letstalk@ismart.house