Discipline is key

For AB Communications Inc. president Tom C. Banguis Jr., discipline is critical to success not just in advertising, which is the business of AB Communications, but in any field.

"You must have the discipline to establish your goals, have an idea of how these goals will be achieved and dedicate yourself to making it happen. Whether you are an employee, an employer, or just starting on your career, you must have a clear focus on what you are trying to accomplish," he said.

Such focus and discipline helped Banguis build 11-year old AB Communications into the third largest Filipino-owned advertising agency in the country.

When the principals of Avia Communications Inc., which Banguis headed as president, decided to suspend operations in 1993 following the loss of its major client, a $15 million-global account, Banguis decided to set up his own ad agency and hired the entire organization of 80, way beyond what was needed to service the few remaining accounts.

He used up all his savings and mortgaged his house and lot to round up the resources needed to start a new organization. He invested the cash in a new 600-square meter office designed from scratch, furnished it and closed a lease-purchase deal for brand new personal computers.

As he handed employees their termination notices and severance from Avia, he was also handing them appointment papers from AB Communications.

"It was the entrepreneur in me that gave me the confidence to proceed. There was always the risk of failure. I knew we didn’t have enough business to support 80 people. I risked losing my lifetime savings, my house and lot. But sometimes there is so much of the dreamer or the optimist in you that you have the boldness to commit yourself. This makes you very determined. And the good thing is that when it’s your own resources at stake, you drive yourself to achieve your goals and you stretch yourself to what is physically possible," Banguis said.

This was in 1994, and Banguis worked the longest hours, even working on Saturdays, to get new clients, execute campaigns properly and deliver beyond what was promised.

As a result, AB Communications steadily built a roster of delighted clients that have rewarded them with more business as their respective companies grew.

The company started with very few accounts–URC Corp., Hunt’s URC, Red Bull–which were carryovers from Avia. Then Splash Corp. awarded it the launch of Extraderm. Today, Splash, which has grown its business exponentially in the last decade, entrusts most of its brands to AB Communications.

This trend was replicated by other clients such as Zesto Corp., Goldilocks Foodshops and Pfizer Inc. They started awarding modest projects to AB Communications and later expanded these as their brands and product offerings grew.

Needless to say, proper management allowed Banguis to pay off his mortgage by the second year of AB Communications.

With current revenues at 6.5x its first year revenues, operations have stabilized sufficiently to allow him to share his expertise and time to civic and industry endeavors.

"I now have a core of capable managers who dedicate themselves to the performance and growth of the agency," Banguis said.

Going forward, Banguis believes the challenge for AB Communications will be to continue serving its clients as these clients globalize their operations. "I believe we will have the opportunity to join our clients in their global quest. Many of them are looking toward expanding in Southeast Asia and elsewhere," he explained.

Hence, it was an honor and a benefit for AB Communications to be selected by The Independent Network, one of the world’s largest associations of independent advertising agencies, to be its affiliate agency in the Philippines. The Independent Network considered AB Communications’ track record, people and organization in deciding that it could best serve global clients that may require services in the country.

Eleven years from start-up, Banguis continues to lead by example and his focus on discipline remains.

"Although I now share a lot of my time and expertise to trade organizations, students and civic projects, I still enjoy making presentations to clients. I join internal discussions on new campaigns. I join reviews of new commercials. These are the things I’ve always tried to execute well. I have a firm idea of my objectives both for myself and the organization. I tell the staff it’s the same for a campaign: We have to know the objectives, and then find the best way to accomplish them," Banguis concluded.