Tips When Starting a Small Business in the Philippines

Most Filipinos dream of financial independence, maybe more than owning their own home or buying a shiny car. But, while most Filipinos already have a business idea or interest with franchising lurking at the back of their minds, they are hesitant to start it.

To give you a little push, here are some tips you can follow when starting a business in the Philippines.

• Do your research.

No matter how brilliant your business idea is, you still need to do your research. First and foremost, is there a demand for your product or service? Conduct a competitor analysis to determine the key players in the industry and who you’re going up against.

• Create a solid business plan.

Once you’ve done your research, create a feasibility study or business plan to outline how you’re going to do your business.

A business plan will help you determine everything you need in running your business such as an office or storefront, computers and equipment, internet and broadband connection,

• Get your funds in order.

Whether you’re going to use your hard-earned savings or get a loan from banks or family members, it’s important to get your funds in order before starting your business. This will help you gauge the budget you’re going to be working with in the beginning.
Consider two types of funding: your pre-operating funds and working capital. The pre-operational funds will cover site renovations, equipment, initial inventory, permits and licenses, and other startup costs. Meanwhile, your working capital should cover the first six months of operation including rent, salaries, utilities, supplies, and miscellaneous expenses.

• Complete the necessary paperwork.

Once you’re decided and prepared to start your business, it’s time to complete the necessary paperwork and legalities. This includes business registrations and permits, local business license, BIR or SEC registration, DOLE registration, and other pertinent government requirements.

• Partner up trustworthy people.

Getting friends or family members to partner up with you is a great way to subsidize funding and capital. However, make sure that you trust the people you’re teaming up with.
Business and money matters is a common cause of rifts and conflicts. Ask anyone.

• Network with other businesses and entrepreneurs.

Join social networking groups, associations, and other relevant entities to increase your network and get ideas and advice from experts and experienced businessmen. It’s a great way to market your brand as well.

• Nurture your relationships with suppliers and customers.

Nurturing relationships is important in any business endeavor. Be professional at all times, especially when dealing with customers or suppliers.
In business, every relationship you make is beneficial. Sure, you can’t please everybody, but at least try.

Turn your dreams into a reality by starting the business that you’ve always wanted. Calculate the risks carefully and make sure to devote the necessary time and effort for your business to succeed.

Good luck and have fun!


Guest Post: Rocky of EnterPH - an emerging name in the field of business consultancy, specializing in investor relations and helping companies conveniently establish an enterprise in the Philippines. Founded by a seasoned corporate lawyer, a renowned business development consultant who also practices corporate law, and a maven in consular affairs and entrepreneurship.