But as an entrepreneur wannabe who has no experience running a business, how do you start one? Here’s a breakdown of the process to get you on the right track:
Tips on Starting and Running a Business
1. Start fresh.
Scout for an unmet demand in the market. Will your product or service benefit your end users in a way that others cannot? If the answer is not a resonating yes, then change the question. Identify which hobby of yours could be a good business idea. Do you like collecting comic books and playing video games? Start an arts and entertainment store. Are you brain-health conscious? A gluten-free market could do the works for you.
2. Validate your idea.
How do you know your proposal will be welcomed by potential buyers? Do objective validation. Ask others what they think of it. Your family and friends’ exclamations of “That’s exciting!” and “Wonderful idea!” are not constructive enough. Get criticism from the right people. Attend seminars with the most successful entrepreneurs, then ask for a candid feedback afterward. Conduct surveys from websites to find most searched keywords. Get input from respective mentors as to the profitability of your business plan.
3. Identify your team.
Will you be able to run your business on your own or will you need to hire at least five people to work for you? Consider your weaknesses that may put your scheme at a financial risk, and have someone who can fill in the responsibility for you.
4. Choose a location.
Aside from having a winning product, building your shop at the right spot could be the most important thing you could do. Consider how accessible your location is by foot or by car. Check out other establishments within the vicinity. Do they present any form of competition to your products and services? Is a parking lot available nearby? No matter how delicious and out-of-this-world your cakes are, if you can’t get customers through the door, then your pastry shop won’t last.
5. Determine the cost of startup to establish your budget.
It takes serious money to operate a business. From capital requirements and build up expenses to operating cost and contingencies, a starting entrepreneur requires sufficient funds to keep the business running. You have to be prepared to be broke for months while sales are still low (expected for the first few years until you become established), and customers are still building. A year’s worth of income may not be enough to cover the expenses so an OFW loan assistance may be needed.
6. Obtain licenses and permits.
Before you can legally run your business, secure first a Business permit from the city mayor’s office. A Mayor’s permit is required to register your business with the Bureau of Internal Revenue (BIR) and obtain a Tax Identification Number. Be early when planning to obtain your licenses and check online for their requirements to finish the process within one day.
Your Road to Riches
By investing your money or by starting a small business, you will be able to work full-time and earn money on the side until you have enough customer base to pack your bags and come home to the Philippines. After all, the economy of Asia’s rising tiger is getting better each day. It won’t be long before corruption and crime dwindle down to a fizzle.