Rufa Mae was served an arrest warrant due to SEC violations on December 3, 2024.

39 complainants allegedly got scammed amounting to almost 90 million pesos in investments!

There are more people in this country struggling to fend for themselves but here we are talking about a potential 90 million large-scale estafa.

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What is a large-scale estafa?

A form of fraud or swindling under Philippine law, where the amount involved is substantial, often affecting multiple victims.

It falls under Article 315 of the Revised Penal Code of the Philippines, which outlines the crime of estafa (fraud).

That’s the legal or dictionary description but I’d like to explain it further from a business perspective because (you guessed it) this is a business newsletter.

In the simplest form I can do, here’s a visual representation:

That’s why this case is a difficult one, the biggest difference between two businesses is the ‘intention’.

The legit business wants the investment money to grow faster and later earn more;

While the estafa business wants the invested money to go directly to Louis Vouiton as a weekly bag gift for their wife.

If how it started is the same, why don’t they just turn it to a legit business?

Short answer: because doing business is hard

Long answer:

Imagine you’re a “fake businessman” and someone wired 50 million pesos to your bank.

It’s easier to: use the money to buy things with the intention to impress social media users and fake friends while;

It’s harder to: Put it back to the business, work your ass, grow it to the point of profitability, and give some profit back to investors.

Business is hard, people telling you otherwise are lying.

It annoys me to see these celebrities and influencers flaunting their “CEO Badge”.

Destroying this profession in two ways:

1. Making it look like it’s easy: young ones who enter don’t get to last a year because they expected an easy path rather than a trecherous one.

2. Making real entrepreneurs look stupid.

As a rule of thumb: “If they became an influencer or celebrity first, before being a business owner, 9 out of 10 times DO NOT INVEST”

you’re still working on landing your first client, I suggest you learn all the skills I’ll indicate below.

You’ll either land a client or gain the skills necessary to land one. Either way, it’s a win-win.

I’ll keep this quick because our December 2024 campaign is killing me.

Skill 1: Videography

This skill is interchangeable with photography, but I focused on videography because I only used social media (Facebook and Instagram).

Both platforms I used to land my first client—then and now—prioritize videos over photos.

Don’t let the term ‘videography’ scare you. You don’t need to be super talented; you only need to be “good enough.”

YouTube is your friend. I recommend starting with these topics:

1. How to hold your phone and how to move with it

2. Basic technicalities of frames, exposures, etc.

3. How to make B-rolls, you need a lot of them!

Once you’re done watching these videos, stand up, roll up your sleeves, and start taking videos. Your first few attempts will suck (it’s a skill that professionals dedicate their careers to). Be patient with yourself.

Since you’re a businessman, not a videographer, expect about 50% of your raw footage to be unusable.

Now that you have good-enough raw footage, it’s time to learn how to use it.

Skill 2: Video Editing

The first step of video editing is selecting the right footage and how you’ll arrange them to become an actual ‘video’.

The problem with this skill is it involves choosing the right video editing software.

Here’s what I chose, and why I chose them:

1. Davinci Resolve: its free version is still the best (in my opinion) and the interface is easy to use (in my opinion).

2. Capcut: I mainly use it for auto-generating captions but I’m sure a lot of creators use this for fast and basic editing.

The first step in video editing is selecting the right footage and arranging it into an actual ‘video.’

One challenge with this skill is choosing the right video editing software. Here’s what I use and why:

• DaVinci Resolve: Its free version is (in my opinion) the best, with an easy-to-use interface.

• CapCut: I mainly use it for auto-generating captions, but many creators use it for quick and basic editing.

I found this skill fun at first (during the learning phase) but it quickly became a chore.

Here’s how to avoid over-studying technicalities you don’t actually need:

1. Find a video from a competitor.

2. Imitate it (focus on the cuts, not the effects).

It’s easy to get carried away with aesthetics instead of focusing on the conversion rate. Remember: in its simplest form, video editing is just merging clips. Once you can do that, you’re 90% done.

Everything in excess is just that ‘excess’.

Always remember: “Your videos don’t need to entertain; they need to convert.”

Skill 3: Copywriting

Once you’ve unlocked your video editing skill, the next step is understanding how to:

1. Get their attention (there’s a lot of competition for attention out there).

2. Deliver your message precisely.

3. Have them do what you want them to do.

Those 3 things are the foundations of copywriting, I made a long thread regarding this skill.

Look at it yourself, it will give you a better understanding.

In my opinion, this is the most fun skill to learn, and once you master it, your profitability goes through the roof.

Your primary sources of knowledge for this skill are books and advertisements.

Copywriting is a skill that starts with imitation, then evolves into innovation (emphasis on THEN).

Skill 4: Content Creation

The skills you’ve gained from 1–3 already set you up for creating ‘content.’

Here’s how you can use your content to attract clients through multiple methods:

1. Organic Content:

   • How It Works: Post your videos for free. If they’re good enough, the algorithm will suggest them to more people.

   • Pros: It’s free and has viral potential.

   • Cons: It’s not targeted, so while many people might view your content, they may not be potential clients. Your competition can also see what you’re doing.

   • Suggested Channels: Facebook, Instagram, TikTok.

2. Cold Outreach:

   • How It Works: Directly contact potential clients one-on-one.

   • Pros: It’s free, measurable, and keeps your competition in the dark.

   • Cons: Your time is limited, so you can only reach out to a certain number of people.

   • Suggested Channels: Email and direct messages.

3. Paid Advertisements:

   • How It Works: Pay platforms to forcibly show your content to a targeted audience.

   • Pros: It’s targeted to specific clients and provides the best analytics.

   • Cons: It’s not free, and success depends on the efficiency of your content.

   • Suggested Channels: Instagram, Facebook.

If you found this letter educational, share it to your friends or your profile!

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Hit me up on threads or IG by tagging me (@pr.limj), let me know you made it to the end of this letter!

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It’s not all rainbows and butterflies. Quite the opposite, this side often feels like it’s constantly on fire.

Can’t picture it? Here’s a meme that perfectly sums up our lives as business owners:

As the head of our company, I have no choice but to have the strongest mental fortitude.

Since I’m human, sometimes I’m not as strong as I should be.

Sometimes…

I miss my corporate job because then, I have a manager

I’ve worked under great, average, and bad managers.

Like them or hate them, they all have one thing in common (and something every corporate worker should take advantage of): ‘Forced Accountability.’

• If you feel lost and don’t know what to do, ask your manager.

• If you face a hard decision, let your manager decide.

• If the decision goes against the company’s goals, it’s your manager’s fault.

As a corporate worker, you can surrender accountability to your manager—all the time.

Once you start your own business, things change. You have no one to blame but yourself.

• If you feel lost and don’t know what to do: Look at your company’s ‘evergreen’ metrics to find your way back.

• If you face a hard decision: Choose the one with lower risk and higher reward.

• If you make the wrong decision: Move on, move forward, and fix it, hoping it’s reversible.

All the rights and wrongs fall on you.

You have everything to gain—and everything to lose—at the same time.

At the end of the day, you’re forced to be accountable for your company because no one else will be.

Heavy is the head that wears the entrepreneurial hat

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I miss my corporate job because then, my routine was followed.

Every morning at 8:00 am, my alarm goes off, signaling me to stand up and head to work.

By 10:00 am, I’m already at my desk, sipping the free cup of coffee the company provides.

I’ll check our CRM and review the tasks my manager assigned to me. (In a BPO setting, we call them ‘tickets.’)

I’ll get in the zone, eyes glued to my screen, until my noon alarm reminds me to take my lunch break.

By 1:00 pm, I’m back at my desk, once again glued to the screen, hoping to finish all the tasks assigned to me.

By 7:00 pm, my shift is done. I’ll commute back home and do what my remaining energy allows me to—whatever that may be.

From the moment you wake up until you close your eyes, everything goes as planned.

Wake up. Work. Eat. Work. Sleep. Repeat.

All of this changes once you start a business.

• The purpose of an alarm becomes obsolete (I haven’t used one to wake up in 2 years).

• Your body will wake on its own once it knows it has replenished enough energy to get through the day

• The taste of coffee becomes irrelevant (I’m working on this) as you only see the drink as fuel to keep you going.

• Your CRM is now your daily checklist prepared the night before, to guide the following day (only to realize the same thing will happen today as it did the days prior): Nothing will go as planned.

• Your hands will spend more time glued to the fire extinguishers you use to put out the flames your business inevitably spreads.

• You lay in your bed only to realize you can’t sleep because you’re dying of starvation.

So much work done, yet so much still to be done.

Entrepreneurship is a world where date and time are just numbers that pull you back to life and out of work.

Entrepreneurship is independence taken to the farthest extreme.

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I miss my corporate job because then, I felt I was not alone

At work:

I had workmates who understood my pain and suffering.

• The pain of having a boss who was less technical than me.

• The suffering of helping a company earn more while my paycheck stayed the same.

After work:

I had friends who faced similar obstacles:

• How to commute back and forth every day.

• How to pay the bills.

• How to get a house.

Almost everyone could relate to me, and almost everyone could understand, because I was doing exactly what everyone else was doing: surviving

In business, you’ll feel like you’re all alone. (Heck! that’s why I started this newsletter.)

At work:

• Your workmates become your employees. There’s a lot you know that they don’t need to.

• You are the boss they believe they know more than you.

• You are the biggest beneficiary of the company’s success, yet its only victim during times of failure.

After work:

The friends you once had are still tackling the same obstacles you used to face:

• While they’re struggling to commute, you’re worried about how to afford fixing the company car that broke down two weeks ago.

• While they’re struggling to pay household bills, you’re figuring out how to cover payroll and commercial space rent.

• While they’re struggling to get their housing loan approved, you’re looking for ways to grow your business using its own cash flow.

While everyone else is doing the same thing, you’re doing something entirely different.

Did you leave them behind, or did they choose not to come with you?

Why entrepreneurship then?

My answer here is simple.

You can’t be part of the top 1% if you’re doing the same thing as the bottom 99%.

If you’re planning to start a business or already have, I want you to know you’re not alone.

You’re in that awkward in-between phase—where you’ve left your past life behind but haven’t yet reached the place where those you aspire to be like are waiting.

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Reminder: I publish on this weekly newsletter every Wednesday; at 21:00 Philippine time.

If I had this, to read a year ago, it could’ve saved us at least 20 million pesos.

Meaning: this entire guide can save you anywhere from 0 to 20 million pesos, minimum.

Before we get to the 20 million pesos burning part, you need to know how I met the guy who burned it for us.

Which brings us to…

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They are responsible for an incomplete building

This is first because it should’ve been obvious.

Obvious even to me (an up-and-coming, relatively young spa owner).

Sadly, it wasn’t obvious enough when my mother and I saw a building with more vacant units than occupied.

We walked toward the vacant units, curious just how cheap we could get a place that would earn us millions of pesos.

A vacant space big enough (roughly 70 sqm) to plant the seeds of our big plans, with small rent and an even smaller foresight.

We told the agent (spoiler alert: not really an agent):

“We’ll take 8 units.”

The agent happily replied:

“I’ll tell the building owner.”

We didn’t even hesitate to ask:

“Does he do construction also?”

They are experts in structure but not finishing (if renting commercial space)

I know, right? How f— dumb could I get?

I was so blinded by the fact that we got a giant space for a miniature price and a contractor who can build a building.

If he can build a building, he can easily build a spa. RIGHT??

NO! I’ve never been further from a YES in my entire life!

I couldn’t understand how I thought that someone with perfect bones equates to someone having perfect skin.

In case you didn’t get it yet:

Bone = Structure = The foundations of the building that keep the interior in check

Skin = Finishing = What the end user sees

I let my assumptions (and lack of research) get the best of me. I rushed this deal, shook hands, signed the check, and signed the contract.

Speaking of contracts..

Their construction contract does NOT include a timeline and payment schedule.

After my signing spree, I went home already envisioning myself as the next Henry Sy.

I called my business partner—aka my brother-in-law—and said:

“You can go to China and get our materials; the deal is done!”

He went to China, gathered all our materials, and purchased everything we thought was necessary.

When all was said and done, we had three 40-cubic foot containers parked outside our “good-deal” location.

Our plans and files were served to our chosen contractor on a silver platter: plumbing, electrical, CAD files, 3D render—you name it.

They just had to follow it.

Day 1-14: Plumbing = Done

Day 15-21: Walls = Done

Day 22-100: Spa = No progress

Day 101: Our other business partner was getting impatient.

She asked, “When will the first spa in the Philippines open?”

I didn’t know much about construction, but I knew then that we weren’t even close to finishing the entire project.

I called our contractor to ask when we could expect the spa to be finished, and he simply noted, “I don’t know, I probably need 30 more days.”

Day 131: Spa = Still no progress.

Like clockwork, every morning I called our contractor asking the same question, only to receive the same answer: 30 more days.

Day 181: Spa = Completed.

Our expected 90 days turned into 180 days. It might not seem like a big deal, but here are the additional expenses:

✅ 90 more days of salary paid

✅ 90 more days of rent paid

✅ 90 more days of food paid

✅ 90 more days of stress

✅ 90 more days of an unopened shop, with an estimated loss of 1.2M/month

By now, you should get it. This was an expensive series of mistakes that could’ve been avoided if we’d held our contractor accountable from the start.

To avoid the same mistakes I made, I prepared a short checklist for you:

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Accountable Contractor Checklist

Checklist #1: Visit Their Past Projects

If you’re looking for a contractor for your business, ask for their portfolio. You should know and see their past and current projects before making a deal with them.

Personally visit some of their past projects to ensure their finishing meets your standards. Some projects, like gyms and studios, are simpler on the finishing side, while others, like premium cafes and spas, require a higher level of expertise.

Checklist #2: Understand Their Current Projects

Having an idea of how many projects a contractor currently has and their progress will give you insight into whether their promises to you are realistic.

For instance, if your contractor has a team of 100 workers and you’re their 10th client with a 90-day timeline, it may not be feasible.

Checklist #3: Have an Expert Review the Contract

Just like employment contracts, it’s always worth having a labor expert (attorney) review it before signing.

For construction contracts, have both an attorney and a seasoned contractor look at it before you commit.

They should understand the ins and outs of construction—ways to save the most money and ways you could potentially lose it.

Even now, as I prepare for our second branch, with all the experience I gained from the first one, I’ll still have an expert review my next construction contract.

One painful experience in construction taught me a lot, but I know it’s not enough. I’ll rely on someone with far more experience to ensure the next agreement is in my favor.

A Short Letter to My Last Contractor:

If you’re seeing this, I’d just like to say:

I’m sure there was no malicious intent in how our project progressed. You weren’t perfect, but you were kind to us and taught us a lot, both intentionally and unintentionally.

I’d still refer you to others who are looking—I already have. I’d still hire you as our contractor for our next project.

I just need to do a couple of things differently next time around.

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