Financial Adviser: 5 Business Lessons Everyone Can Learn from 'Budget Housing Tycoon' Jing Olivares, Founder and Chairman of Ovialand

In the world of business success, few stories rival the transformative journey of Giovanni ‘Jing’ Olivares, a visionary whose lasting impact has reshaped the affordable housing landscape in the Philippines.

From humble beginnings to pioneering ventures, his tale embodies the strength of resilience and unwavering determination in the face of challenges.

From a young age, Olivares was involved in his family's businesses, learning from his parents' skillful management of a range of enterprises, such as a piggery, a pest control company, and a button manufacturing business. This early exposure gave him valuable lessons about how to run successful ventures.

As the youngest of eight siblings, Olivares took charge of his father's pest control business in the early 1980s. Serendipitously, while engaged in termite treatment for a client, a unique opportunity presented itself.

The client, an NGO affiliated with the United Nations, approached Olivares with a proposition—to construct houses for refugees from war-torn Vietnam, a significant undertaking considering the millions of refugees fleeing the aftermath of the Vietnam War.

Undaunted by the magnitude of the project, Olivares enthusiastically accepted the challenge and delivered, marking his entry into the construction industry. This pivotal experience led him to establish  Ovialand, a company dedicated to constructing affordable housing projects since 2014.

With strong determination and a dedicated pursuit of quality, Olivares propelled Ovialand to the forefront of the affordable housing industry, establishing a unique position for the company in the competitive real estate market.

Since its inception, Ovialand has successfully completed more than 1,700 affordable housing projects, serving the requirements of both the public and private sectors. Additionally, the company is currently in the process of finishing an additional 2,500 units over the next two years.

Through a judicious blend of innovative design, sustainable practices, and a customer-centric approach, Ovialand has set new benchmarks in the realm of affordable housing, redefining its brand mission of “Premier Family Living” and sustainability for countless families.

How did Olivares manage to carve a unique niche for Ovialand in the competitive landscape of real estate development? What initiatives did he undertake to further expand Ovialand's reach and impact within the affordable housing sector?

Here are the business lessons every entrepreneur can learn from ‘Affordable housing tycoon’ Jing Olivares, founder and chairman of Ovialand:

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1| Know how to transition from family business to entrepreneurship

Venturing into entrepreneurship beyond the family business enables individuals to establish their own identity and forge a separate path distinct from the family legacy.

This transition fosters personal growth and development, enabling entrepreneurs to carve their own success stories and establish their unique footprint in the business world.

Transitioning to entrepreneurship can foster a sense of autonomy and independence, empowering individuals to make decisions and take risks on their terms. This freedom allows entrepreneurs to experiment, learn, and grow, ultimately leading to personal and professional fulfillment.

Olivares' transition from his family's established businesses to his own entrepreneurial ventures was marked by his keen ability to identify opportunities and create a distinct path for himself.

Initially starting in the family's termite and pest control business, he developed valuable skills in sales and public relations, laying the groundwork for his future endeavors. Through his involvement in the construction and repair work at the refugee camp, Olivares recognized the potential to expand into the construction industry.

Leveraging his experiences and relationships, he established a foothold in the sector and secured lucrative projects, ultimately paving the way for his independent entrepreneurial journey.

By capitalizing on emerging opportunities and demonstrating an adaptable mindset, Olivares successfully carved his path in the business world, emphasizing the importance of innovation, flexibility, and a proactive approach to driving one's entrepreneurial aspirations forward.

"I was always an entrepreneur by choice,” Olivares says. “I grew up in the family business and we were eight siblings and I was the youngest. My father had a lot of businesses and one of them was the Olivares termite and pest control. That's where I started.

“When I was in my second year in college, he told me to run it. My classes in La Salle were all in the evening, so I had a lot of time during the day so he told me, 'Why don't you start working for Olivares?'

“During that time, my parents also had a hospital called Our Lady of Fatima Hospital, a piggery, and a button factory. I grew up practically eating business for breakfast. When my parents died early in the ‘70s, their businesses were distributed among us, and I stuck it out with the pest control kasi ayaw nila, matrabaho daw, so I opted to do it on my own.

“Managing the business developed my selling skills and my PR, you know, and then the turning point was really when I was handling the very big termite and pest control contract with the United Nations High Commissioner for Refugees.

“I was doing the pest control of the refugee camp in Morong, Bataan in 1981 because the project I think was about to start in three months. The refugees were arriving already, so there was already a problem. I got to meet the engineers there and we talked about malaria and termites eating up the bank houses of the Vietnamese refugees.

“So I was always at the site, talking with the administrators of the refugee camp until one engineer said, ‘Why don't you become a contractor? You’re always here.’ I said ‘OK, I'll put up’ so I started doing repair work and then suddenly I was already doing bunkhouses and audio visuals because there were one million Vietnamese refugees that came here.

“The United States needed to process them for a year. Processing them meant teaching them English and the Western way of life before they were brought to America. Out of that one million, I think 700,000 went to the States and 300,000 went to Europe.

“After completing the project, I realized it was a big business. It so happened that the person in charge of the refugee camp was also the general manager of Natural and Housing Authority. They were happy with my work and they gave me more projects such as relocation sites in Dagat-Dagatan and other construction projects in Manila.”

2| Know how to thrive and navigate the business landscape

Understanding the intricacies of the industry and effectively managing risks is crucial for long-term success and sustainability in business. By comprehending the nuances of the industry, entrepreneurs can make informed decisions, anticipate market shifts, and identify potential challenges.

Olivares' decision to venture into housing projects and sell affordable homes demonstrated an astute understanding of the market's demands and opportunities. Despite starting in pest control, he transitioned into larger construction projects, showcasing the importance of adaptability and diversification in a competitive business landscape.

Additionally, his experience of borrowing substantial amounts from banks and managing high interest rates underscores the significance of maintaining a robust financial strategy and securing adequate cash reserves to mitigate potential risks.

Olivares' emphasis on capital, well-organized operations, and effective engagement with local government units highlights the crucial role of strategic planning and efficient management in sustaining and growing a business. His journey provides essential insights into the critical elements of success in the business world, emphasizing the need for adaptability, financial prudence, and strategic foresight to navigate challenges and capitalize on opportunities for long-term growth and prosperity.

“Pag dating ng 1986, that’s when I decided to do my own housing projects,” he says. “Bumili na ako ng lupa and I started selling socialized housing. This was the time I could sell houses at P120,000, and somewhere along the line, that’s where I started to learn how to come up with beautiful houses. I did this for almost 30 years. I would say I have delivered around 25,000 houses na, including the small ones.

“When I was in pest control, I was always eyeing a big market during that time, specifically the termite-proofing of buildings and houses. So when you're going to do that, you need to have the at least the ground floor plan. I started learning how to read those plans, you know, what kind of foundation. Later, I got into the biggest projects like the GSIS and the Philippine National Bank. Ginawa ko yung termite proofing.

“So when we were doing already construction, i was already familiar with it. What I didn't know was how to do roads and other things but that's easy. I had a good Engineer who taught me.

“When I started doing construction, I tried to borrow from the banks to finance my projects. As early as the late ‘80s, I was already borrowing in millions. I was just 37 years old, and I was able to handle a 30 percent interest rate.

“When I borrow, sa akin, I always view it as a cashflow problem. So I always maintained a cash reserve, knowing that I could at least pay my bank in the next six months, including the interest, because the banks, if you're a bit low, they will just ask you to pay the interest first, saka na yung principal. So I always made sure I had that cash with me.

“Housing kasi is not easy. First you need capital. The second is your organization. It has to be well-driven and well-organized. The third, I would say, is how you handle the LGUs.

3| Know how to find right business model to succeed

Understanding the right operational framework in business is important because it lays the foundation for sustainable growth and success. It enables businesses to align their strategies with market demands, optimize resource utilization, and create a competitive advantage.

A well-suited business model fosters innovation, enhances customer satisfaction, and increases the likelihood of long-term viability and profitability.

Olivares emphasized the importance of efficiently utilizing resources, particularly in the context of housing projects. By adopting innovative construction methods such as pre-cast technology, he improved efficiency, enabling his organization to complete housing structures in a shorter timeframe.

This accelerated turnover contributed to a threefold increase in capital utilization, reflecting his adept management of financial resources.

Additionally, he demonstrated a keen understanding of the market dynamics, acknowledging the potential challenges associated with different business ventures. His emphasis on preserving capital further underscored his shrewd approach to business sustainability.

“I would say the difference is that just selling land is less capital. Land, including development, is only around 30 percent of your cost. So, for example, one project now might cost a billion if I don't want to put up houses, it will only cost me P300 million.

“Pero ang ikot ng pera mas matagal kasi sometimes hulugan yan eh, and normally yung financing ng Pag-ibig maliit lang pag lupa, so you go to the bank to borrow. Iba ang market sa lupa kasi mas may pera yung client nito and willing sila maghintay.

“Yung sa amin housing, kailangan talaga magka-bahay, pero this is fully financed by Pag-ibig. Mas mabilis ang turnover.

“The real challenge in this business is the quality. We started with concrete hollow blocks, then we moved to lightweight concrete panels, and then we went into what you call the plus walls. All of these had effects on how your workers would use them. You would encounter mga mali, ganyan, sasakit ang ulo mo, until we found pre-cast technology.

“Pinag-aralan and tinuruan kami nyan so after six months, kabisado na namin, the whole organizations know how to do it. Technically, we can finish the whole structure of the house in one day and finish it in 45 days. That’s the name of the game. You have faster turnover. We can turn our capital around three times.

“Compared to other businesses, ang ayaw ko lang sa restaurant is pag nalugi ka, your capital is practically gone, ubos. There are some businesses that are not like that, so you look for that kind of business.

“Let’s say, for example, you go into piggery business. At least your land is there. Your building is there. Kung mamatay yung pig mo, andun pa  yung building mo, or in 20 years, yung lote na nabili mo ang mahal mahal na. Kasi sa business, ‘di mo ma-predict yung bad timing. Its always important to preserve your capital.”

4| Know how to develop a passion for business and instill an entrepreneurial culture

Cultivating an entrepreneurial attitude in the family fosters a strong work ethic, drives innovation, and instills a sense of purpose and dedication in pursuing business goals.

This approach not only nurtures a proactive mindset but also encourages continuous learning and adaptation, leading to sustainable growth and success in business.

Olivares developed his passion for business through the diligent work ethic and entrepreneurial spirit instilled by his parents, particularly his mother's dedication to the button factory.

He imparted this ethos to his children, emphasizing the enjoyment of earning and ensuring a positive, fulfilling work environment. He drew inspiration from his sister, who served as a significant mentor and guided him in business management principles, prioritizing customer satisfaction and hard work.

Olivares fostered an entrepreneurial culture by demonstrating resilience and determination, as exemplified by his daughter's swift action and success in resolving business challenges, showcasing the family's entrepreneurial values and practices.

“My parents, talagang kayod,” he says. “My mother, when we had this button factory, would go to Palawan alone. She would ride the small boat with two workers to carry the shells in the south. She would buy mga 100 sacks of susu, which were all mother of pearls. Talagang sobrang sipag nun, and I helped my parents count the buttons.

“And that’s how I got my exposure in business at an early age. One thing that’s really my secret is that even my children are all entrepreneurs. I make them enjoy it. I always wanted them to know that making money is also fun. Working should be fun. It shouldn't be stressful. Kailangan masaya ka na ginagawa mo yan kasi kung bugnot na bugnot ka sa trabaho, wala na.

“My biggest mentor was my sister. She was second to the eldest among us. My father started Our Lady of Fatima University with my sister and she’s the one who made it big. She really taught me a lot because she was managing the pest control business before and when she put up the hospital with my parents in 1967, she said ‘Jing, basta in three years, you should be the one handling the pest control. It's not me anymore. I need to pay attention to the hospital.’

“I was always told to work hard and make sure that our customers are satisfied. They are always number one, customers and employees. So, I am very customer-oriented person. In other words, if my customer is not satisfied, that’s the time na hindi ako makatulog. Managing the pest control business was very difficult kasi makakita lang ng isang cockroach, galit na yung customer and so early in the morning at 6:30am, tatawagan ka na and magrereklamo.

“What I learned, I just showed to my children, like a good example of grit. Lakas lang ng loob yan. One time, I had a project that had a one lane bridge in Calamba that was damaged by a strong typhoon. Nasira yung bridge, so nobody could go.

“So I told my daughter, Pammy, that I had no choice but to develop another small property that would tide us over in the next two years, while where we were not able to sell the project because of the bridge. So she concentrated on it, pinag-aralan nya. In three months. She sold everything.”

5| Know how to lead with integrity and humility

Humility encourages openness to diverse perspectives and feedback, fostering an environment conducive to learning and growth. This mindset allows businesses to adapt to changing market dynamics and innovate effectively.

Integrity, on the other hand, builds trust and credibility within the business community and among consumers. Upholding ethical standards and being transparent in business dealings establishes a strong reputation, which is integral for long-term success.

Olivares instilled lessons on integrity and humility in his children through practical advice and personal examples. He emphasized the importance of prioritizing financial responsibilities, ensuring that his children understood the significance of fulfilling obligations to creditors, suppliers, and employees before personal expenditures. Furthermore, he encouraged them to lead simple and humble lives, highlighting that humility fosters resilience and shields individuals from envy and unnecessary competition. By advocating for a modest lifestyle and discouraging excessive displays of wealth, he aimed to cultivate a mindset centered on ethical values and genuine work ethic.

Olivares also imparted the value of financial prudence and the significance of maintaining a sharp focus on expenses in business. By nurturing a culture of frugality and careful financial management, he aimed to promote a sense of responsibility and awareness of the importance of prudent financial decision-making among his children.

“One of my mantras in business is pay your creditors first,” he says. “I always tell my children, if the bank lends you money, before you spend everything for yourself, make sure that you're up to date in your bank payments and also your suppliers.

“Huwag kang kukuha ng pera ng hindi iyo kasi sila yung priority mo eh. I mean, you look at your people first, make sure that they have their salaries, and then second, your suppliers, and then third, the banks Before you spend anything, that's what I always tell them. Don't spend on other trivial things like sports car, you know. try to be as simple as possible.

“I always tell my children to be simple and humble. If you're humble, nobody can hurt you. Kung humble ka kasi, hindi ka inggitero eh normally, sa business, ‘Ay ang laki nya, naiinggit ako.’ Pag humble ka, you just do your work.

“When you are humble, you don’t flaunt. You don’t buy a Rolex watch and show off. Kailangan lang talaga is doon ka sa tama. Simple life lang. I will always tell them, ‘Wag kayong masyaong mayabang.’

“Pero sa gastos, wala naman problema, yung mga anak ko by nature kuripot. Matipid. Sa business, I always tell them you always have to look at the figures. Be sharp on the expenses.”