Quality: the key to a successful small tile business in Central America
Running a fruitful small business can be hugely rewarding financially and personally for those who do it successfully. However, it is also likely to be exhausting and challenging; even when using an effective business model.
"Timing, perseverance and ten years of trying will eventually make you look like an overnight success"
Biz Stone, co-founder of twitter.
*by David Chalk
Many multi-national businesses so today, started in small beginnings. One of many examples of this is technology giant Apple, which started when Steve Jobs and Steve Wozniak hand-built computers in Steve Jobs’ garage in 19761. In May 2015, Apple employed 92,600 people and has a market cap of $781 billion2. But, what makes a successful small-business and how is this different in Central America?
Otilio Peña Pocasangre has been running his small company that produces roof-tiles for the last 20 years from a rural town in El Salvador, Central America. As he has no workshop, therefore marketing, negotiation and production all take place within his home. However, despite only being a very small business, clients travel from all over El Salvador to buy his product.
“Yo no tenía experiencia de producir tejas antes, yo comencé por necesidad.”
“I did not have any previous experience in tile production, I started out of necessity”
The most popular product is the micro-concrete tile that requires much less energy to manufacture and can be laid more efficiently than the more traditional, oven-produced ceramic roof tiles. Ottilio uses a machine specially designed to spread the concrete mix evenly throughout the template mould before leaving to strengthen and set, all within his own home. This method is more convenient and safer than using a firewood heated oven, but also and most importantly; cheaper!
Ottilio often has so many clients that, on occasion, he has to sub-contract some of the workload to his nephew who lives in a house nearby.
“La clave del éxito en mi negocio es hacer un buen producto, cuando se produce algo bueno los clientes vienen.”
“The key to success in my business is to make a good product, when you produce a good product, the clients come themselves.”
He explained that in his line of work, clients tend to come through recommendations; people see his product on houses and buildings and ask from where the homeowner bought it. Thus, he gives a few business cards with his name and number to all of his clients which means that people who are interested can inquire. Inevitably, as long as the quality of the tiles remains high, clients come to buy his product.
Otilio's "business cards"
In this sense, marketing becomes a less crucial, independent aspect of the businesses success as it is incorporated into the design, durability and aesthetic value of the tiles that are produced. The tiles can come in a variety of colours by making small variations to the ingredients used to produce the micro-concrete. This helps to increase the aesthetic value of the tiles as many clients look for the deep red colour of the traditional tile design, but with the benefits that the modern tiles offer. A variety of other colours are also available which helps the business to flourish. But he also produces different shapes of tiles, on one hand the efficient original design of the “tevi equipment” that he purchased 15 years ago, but also the traditional shape as many people want to stay with tradition.
Actually it was his wife Delma who discovered the micro concrete technology during a visit to Nicaragua, where a women's group from El Salvador were looking for business ideas to fight out of poverty after the earthquakes of 2001. Delma recognized immediately that this technology would upgrade their family business. They received instructions and with the new equipment the quality of the tiles improved greatly while the production process became more efficient. The combination of quality, good presentation and lower cost became their trademark.
Central America nurtures small business and allows them to grow. According to Costa Rican Minister of Economy Mayi Antillón: 99 percent of businesses in her country are small businesses3. Local people in Central America use small businesses on a regular basis as they are cheaper than the large, multi-national businesses, causing the large businesses to stay in the bigger cities. Small businesses, in order to compete, have to offer a high quality service or product. Restaurants have to offer better food than their competitors at a reasonable price or people will not frequent them. However, a small business that can find a gap in the market; offers value for money; and meets the needs of its customers can be highly successful as there are fewer large businesses with which they must compete.
There are more than 600 producers of micro concrete tiles in Latin America and in the last 30 years they have produced some 500,000 roofs. Most of them have received their know how from EcoSur experts.
*British volunteer from the University of Coventry
