Philippines Guide
For Travelers, Expats and Pinoys
Seeing Green: Money in Paints
Only in her mid-twenties, Sheryl Eusebio gave up a promising banking career to fulfill a long-time dream—that is to put up her own home business. Looking back, Sheryl prides herself in having followed that dream, notwithstanding the problems and pains that came along the way.
Runs in the Family
It has been Sheryl’s desire to start her own business no matter small. Keeping in mind the adage—know your business—Sheryl decided to put up a paint supply business.
“My parents have been in the hardware store business for around 25 years already. Growing up then, I was somehow exposed to the operations of the business since we children would help our parents especially during summer break. So, I thought it would be helpful for me if I would be helpful for me if I would start on the same business since I have basic knowledge of its operations,” Sheryl narrates.
“But it was not easy. There is always that pressure to make the venture a success, especially if it’s your first. Good thing, though, because my dad was there to guide me along the way,” she continues.
Specialize and Diversity
According to Sheryl, it is easier to focus on a particular type of product rather than cater to a variety of goods. Aside from the financial consideration, it would be different to monitor and handle different products when you are just starting out.
“I decided to start on the paint supply business because it would be easier for me to monitor the store’s operations. At least, I just have paint to think of. Although I do have that goal of expanding into a hardware store and be able to sell various construction materials. In fact, on a selective basis, I already started selling some construction materials aside from paints, mostly to contractors.”
Hands-On All the Time
Another important factor in setting up your own business is the time that you have to put into it. As Sheryl would put it, “When you decide to venture into something, you have to give it your all. That’s the reason why I had to quit my job. You only have yourself to rely on. Even if you have your family or your own staff to assist you, every business decision will be your call and it could be disastrous if you make a wrong move.”
Moreover, her business requires a lot of marketing work. “It would be impractical to rely on walking clients.” Sheryl says. “People do not undertake construction or renovation the whole year round. So if you don’t tie-up with contractors or auto repair shops, it would be difficult to maintain a revolving capital for the whole year. That’s why I have to maintain accounts to be able to be able to keep the business going.
[Tags]Paint, Philippines Home Business, Make Money From Home, Philippines[/Tags]
Starting A Garage Sale Home Business
Most women (and some men too!) have been guilty at one time of shopping for things they don’t actually need to buy but just happens to purchase them because they caught our fancy. And when space starts to become a problem, we suddenly blame ourselves for buying those stuff we have not even used.
A garage sale home business is a smart way to get rid of these useless items and earn a modest income. Here are some pointers when organizing your own garage sale.
Get helpers
It is definitely not advisable to do this on your own. Have some people to assist you. Make sure that you have at least one person assigned to each section to supervise the goods as well as entertain queries form your buyers. And don’t forget to assign someone to take charge of the cash register (make sure you have enough bills and coins for the change!), inventory and packaging (be prepared for those plastic bags!). It is advisable to list every item sold and their prices so that you can check on these at the end of the day.
Advertise the garage sale
Yes, you need to advertise! People should be informed of your garage sale. Simple posters will do. If you have a computer, then just print copies. Or better yet, use some creativity and do the posters by hand. There are also free ad placements available in newspapers or the internet. Use these services. Make sure though that you announce your garage sale several times before the scheduled date.
Open early
Garage sales usually start at around 7:30 in the morning and end around 6 in the evening. So make sure that you get enough rest the night before for a busy day ahead. Do not open your sale unless every single item is on its proper place. Once people flock to your home, you wouldn’t have the time to arrange the goods. It is also better to designate the entrance and exit for your customers (and have someone in-charge of the ingress and egress). This way, you are able to ease the flow and lessen the possibility for shoplifters (they are everywhere!) in your sale.
Secure the area
If you live in a subdivision, coordinate with the security personnel. If possible, have somebody watch over or at least check on the garage sale every now and then. There is a possibility of thieves lurking around. You should be mindful of this and your customer’s safety as well. Also make sure that the cash register is in a secured place so as not to encourage a possible theft.
How to Enjoy a Store Business More
Philippine business is dominated by stores throughout the country. They are along streets, in communities, in and around malls, and in office and school districts. They’re everywhere. But operating and manning a store business can be boring. Many of the store businesses that give up are not so much because of financial woes but because of boredom. How do we fix boredom in a store business?
Home or out-of-home store businesses often open at 6 or 8 in the morning and finish till 9 or 10 in the evening. Mall store businesses open regularly at 10 or 10:30 in the morning and end at 8 or 9 in the evening. If one’s new in the store business, it is likely that one would personally man the store. It takes lots of secured profits to afford hiring another person to man it. Manning a store business can be very tiring and boring. The first few days of a store business may be exciting. But after a few months, it gets uncomfortable.
To beat the woes of manning a store business it’s important to keep a goal. Make a yearly goal and break it down to monthly, weekly, and daily goals. Keeping a daily goal in mind makes the clock seem to tick faster. Morning till evening manning of a store business would seem too short and one would begin to wish that days were more than 24 hours a day.
To beat the daily goal, daily sales strategies must be in line. One would be too busy trying to hit the sales goal by thinking up sales pitches and techniques, to think of boredom or discomfort in manning the store business. Then keep the place tidy and smart. Check the shelves for instance, and make sure they’re filled up and items are well arranged. Vacant spaces on shelves make for a lousy store business image. Engrossment in this makes the clock tick even faster, as it were.
Befriend customers. Don’t kill time in a store business by reading comics or watching a portable TV set. This is the best way to discourage customers. Furthermore, showing oneself openly as a welcoming and available store business proprietor not only boosts sales but lets one enjoy the business as well.
Store businesses can be more lucrative if one gets to enjoy it more. By simply learning to like customers and serving them, a store business can thrive and remain.
It All Started With A Hobby
Mr. Romy Iral’s story is something he never gets tired of sharing with anyone. Though afflicted with recurring cataract on his right eye (despite three major eye operations), his sight difficulty has not hindered him to pursue his craft, which has definitely helped him and his family make both ends meet.
An accidental encounter with Mr. Willy Buhay, then the artistic director of Folk Arts Theater (Manila), was what Mang Romy needed to seriously consider venturing into what was then just a simple hobby. Starting out with a meager capital of P5,000 in 1986, he decided to put up a business which created various products using brass as the main material.
As he cheerfully recounts, Mr. Buhay has requested him to create coconut trees and a basket with the use of brass for an exhibit. Little did he know that, with the intricate work he has done, these products have caught the attention of a lot of people. Several orders from various clients followed suit.
He was then commissioned by the owners of Via Mare to produce decorative plates for the restaurant. Not too long after that, Architect Bobby Mañosa tapped his creativity to produce coconut branches as background for a Sto. Niño, which was 16 feet high. And yes, all these were made of brass.
From the coconut trees and baskets, Mr. Iral’s products has expanded to include frames, lamp shades and candle holders. There was even a time when he made fashion accessories for known designers like Inno Sotto and Franie Zamora.
With the expansion, he now maintains a shop in Bulacan, where he employs four workers for the production. Mang Romy himself makes the designs. All his works are made-to-order, although he maintains few samples for viewing of prospective clients.
Venturing into this kind of business is not an easy task for Mang Romy. He confides that it is important that you find a stable supplier of brass, stainless steel and tin for your products. He gets his supply from Sta. Cruz, Manila.
Another important consideration is to keep up-to-date with the designs of the products and the guts to try on new ones. He narrates that his expansion was motivated mainly by his passion to explore more on what can be done with his main material—that is brass.
When asked about the financial considerations, he says that presently his working capital has reached P50,000 to cater for the orders of his 5 regular clients. Deliveries to these clients are made two to three times a week. Loyal customers include stall owners in Greenhills, Makati, and Parañaque.
In terms of returns, he says that the business is definitely profitable. He reveals that mark up on the pricing of his products is usually 50%.
[Tags]Home Business, Makati, Greenhills, Home Business Philippines, Financial, Design[/Tags]
Turn Water Into Money
Water is life, this is popular saying known in every culture throughout history. But of course! We, as humans need water for continued healthy existence. But did you know that water is also money? In the olden days, water is free. In the 21st century, water is gold. Nothing’s for free anymore even water which is required for life. But because natural drinking water is getting scarcer and dirtier everyday, as enterprising as they are, humans have found a way to sell water.
A recent study showed that three of the five fastest growing food and beverage categories in the global market were beverages. The research revealed that the water business ranked among the top five in the said category. And in Asia Pacific region alone, bottled water was shown as the single fastest growing product in the food and beverage category with a growth of 7% back in 2001.
In the Philippines today, many of us have witnessed the mushrooming of various water refilling stations one after the other. Such booming business can be attributed to the growing awareness of people to a healthy lifestyle, which includes safe drinking water. It can also be traced to the convenience of buying water due to the difficulty in the supply of potable water particularly in the metropolis.
In large cities around the world, safe drinking water can only be obtained from bottled sources unless you want to get ill form drinking contaminated water. Pollution has been the culprit of this scenario. To quench your thirst nowadays, you have to shell out money.
But before you consider venturing into this booming business, you might want to consider several factors which I have looked into recently, particularly on whether to franchise a refilling station or simply be an independent seller of bottled water.
Based on several interviews conducted among existing sellers, the bottled water business is profitable with return on investments ranging from as early as 10 months to two years, depending largely on your store’s location.
Operators of these stations are also one in saying that maintaining their stores comes easy once you have your set of loyal customers. Staff requirement could range from 2 to 5 people depending on the deliveries that you have to meet. And yes, offering free delivery services is a must among refilling stations as majority of the customers are residents or companies who would want to enjoy the convenience of having their water delivered to them. Moreover, having a refilling station do not require a big store (considering the rental fees nowadays) as these stations can fit into as small as 3 meters by 1 meter space, depending on your tank and filtering system.
Water Business: Franchise or Independent?
Supplying bottled safe drinking water is a booming business nowadays. If you have enough capital, you can either get a franchise of a known water refilling station or go independent and start your own brand from ground up. Either which, you really need some serious thinking but the profits from this kind of business is very promising.
However, franchising or going independent has both their share of advantages and disadvantages.
Franchising a water refilling station can mean capital infusion than being independent. Franchising fees can range from around P800 thousand to more than P1 million depending on the franchise, the space, and the location. On the other hand, being an independent seller can cost an initial investment of around P400 thousand to P1 million, based on the capacity of the tanks and filtering system.
Most franchisees, however, enjoy a head start in terms of starting their operations rather than the independents since franchise programs include management assistance/support in their package. This way, new franchisees are guided on how to start their operations while independents have to commence on their own and rely mostly on their entrepreneurial instinct.
Franchise packages likewise include marketing programs for the franchisees which will definitely help in selling their products. Independent sellers, on the other hand, have to come up with their own promotional scheme to attract their buyers. With a marketing plan clearly laid down, franchise holders enjoy name recall and brand attachment to entice the customers while independent sellers have to be more creative in this aspect to gain a share in the market.
On the other hand, independent sellers have the luxury of setting their own prices. Some independent sellers can lower their prices to P35 per gallon while franchisees could only offer around P40 on the same volume because of the royalties they have to pay, which is based on the quantity they sell. Most franchisees revealed that they could not afford to reduce their prices because, aside from the royalties they have to pay, they are also bound by uniformity in their prices included in the franchise agreement. Independent sellers revealed that lowering their prices is their main marketing strategy, considering that franchisees already enjoy the name recognition from clients.
In the end, whether you decide to franchise or become an independent seller, the water refilling station business is definitely a good investment to venture into. No matter how these stations have grown in the vicinity, water remains to be a basic need and you will definitely have a household or company to supply their water needs. But you must be aware of how stiff the competition has become. Thus, you need to provide quality service to be able to come up with loyal clients.
Haircut Anyone?
So you think only women are vain? Think again. I just found out that men can be as prissy with their looks like women are. And the good news is, an enterprising person can take advantage of this turn it into a home business. How? By opening a barber shop!
The following is a Q&A with a barber who opened up a barber shop to response to this sense of aesthetic and call for business venture.
Q: What made you decide to have your own barbershop?
A: Even while I was still in school, I would also find its way to fix my hair differently especially when I had to attend parties or gatherings. The problem then was that in order for me to get the “fix” I wanted, it was either I would do it on my own or go to the beauty salon. In the case of the latter, I sometimes felt awkward being in what is supposed to be a woman’s world. So, I decided to set-up my own barbershop to answer this “need.” And it turned out that aside from being able to get the haircut I want, I am able to earn additional income as well.
Q: So how profitable is this business?
A; Well, it really is profitable. Haven’t you noticed the number of barber shops that have lined up the streets of the city or even in rural areas? Barber shops open up like mushrooms just like beauty parlors do. It only shows that you can earn quite a good sum of money from this business. Besides, it is not really difficult to manage one.
Q: How did you start?
A; The good thing in my case is that I did not have the problem looking for a location. I simply used the space available in front of my house which makes the barber shop a true-blue home business. Then I started to get the shop fixtures I needed, particularly the barber’s chairs while I had the shop furnished and designed. It was important for me that my shop looked unique despite my loyalty to the traditional interior and exterior design of a barber shop. I made sure my barber shop stands out among the rest. Then of course I had to scout for good barbers. It was not hard because as soon as news of a new barber shop opening spread, barbers started applying. I got the best ones.
Q: How much capital did it cost you to start the home business?
A: Well, let’s just say around P150,000 including the carpentry work. The chair alone cost me around P7,000 each. It would be more if you still have to consider a rental fee which isn’t my case since I own the space.
Necessary Phases in Starting a Business
The best way to earn in the country second to a high-paying employment is doing a business. Starting a business in the Philippines can be summarized in the following steps.
First of all, starting a business means getting a birth certificate. Then open the Sunday classified ads of any major daily in the country to look for people or companies offering business. Choose one that suits your preference, list several offers, and call them up one by one. Of the offers in the list choose two to three that seem to promise a more preferable deal. Meet with representatives of these offers. Most of these will probably be franchise offers, the trend in the country.
If the business is a franchise, ask for franchise documents that will prove one’s ownership of the franchise. This document will be asked by city hall officials and stall or concession owners one will later meet. Be sure that franchise documents are complete. This is important in starting a business. For particulars on franchise documents, contact the franchise main office. They will likely be listed online. Or try telephone operator service.
If the business is non-franchise, be sure to have all pertinent documents and records of the business one has bought. Among these are Department of Trade and Industry (DTI) documents for solo or single proprieties or a partnership and Securities and Exchange Commission (SEC) papers for corporations. Then there’s the business permit which is secured from city hall. Last, the Bureau of Internal Revenue (BIR) business papers. Be sure to have all these documents transferred to one’s name. Besides these business documents, starting a business also needs one to secure a barangay character and business clearance from the barangay where one plans to put up a business. Birth certificate is needed here.
The best option is to start one’s own business. Starting a business from scratch (not bought from somebody else) requires routine securing of all aforesaid documents. A warning though: without the barangay clearances no documentation will be accomplished at city hall. Days or week may pass before DTI or SEC or business or BIR papers can be released. So while waiting, one can proceed looking for business locations. Location is crucial in starting a business so give it lots of time.
Starting a business in the Philippines need to go through several phases: getting barangay clearances, securing DTI or SEC papers, business permit from city hall, BIR permit, and choosing a business location.
TLRC Programs for Home Businesses
Gloria Mendoza is a home businesswoman. She owns a bakery store right in front of her home and makes her products at her own backyard where she set-up a mini-factory. Her story is just one of the many success stories from this side of the world, in the Philippines, thanks to the government’s Technology and Livelihood Resource Center (TLRC).
The home business was built in 1992. She didn’t know anything about baking and relied heavily on the skills she acquired from TLRC. Her baker died two years prior to that and she nearly closed her bakery. But she mustered her strength and enrolled in TLRC and took up baking courses.
“I searched through newspapers and directories and it was there that I found TLRC.” She narrates. “I personally visited them and told them I wanted to learn because I didn’t know anything about baking.”
Gloria started taking courses at TLRC in 1994. First she enrolled in Basic Baking course and moved on to advanced courses like Bread-making, Cake Baking, and Cake Decorating. She has taken six courses in TLRC to date.
These are just some of the courses offered by TLRC. The center had already developed more than 300 courses in home-based, agri-aqua, and crafts-based business. The course also come in video and print formats which serve as references and easy-to-follow gyides for technology applications at home.
TLRC pioneered in the development of livelihood and business technology training aimed at providing would-be and practicing entrepreneurs with the skills and techniques in putting up and managing a business.
It continues to provide and disseminate knowledge, skills, technology as well as financial intervention through loans for the Filipino SMEs. They also have developed such as the Program for Countryside Economic Empowerment and Development (PROCEED) which aims to bring TLRC services all over the country. The program will establish Technology and Livelihood Development Centers (TLDCs) at the local level and will serve as channels for TLRC’s livelihood and technology programs.
The center was also able to promote the application of information technology Services Group (ITSG). ITSG pioneered the development and implementation of computer-related projects and also provides other information technology (IT) related services for the SMEs.
In 2001, SMEs started to enjoy a fast and easy access to TLRC’s programs through its e-Library project. It has made technology information and livelihood information available to local government units throughout the country.
After Gloria’s trainings at TLRC, she was able to supervise every detail of her baker business. “Using what I learned from TLRC, I was able to monitor the operations of my bakery,” she says.
She states everything that she had learned at TLRC, she was able to apply in her home business. At present, the bakery employs more than 20 personnel and earns a net income of P3,000 a day.
There’s Money In Wax
Rose started a home business with an ordinary but in-demand item: candle. The road to success is difficult but rewarding especially when you see the business picking up well. And yes, there’s money in making candles particularly in a religious country like the Philippines.
The secret is keeping the prices of their candles lower than that of their competitors. For example, the regular white, red and yellow candles usually thriving near the churches are sold for only fifty centavos (P.50), other candle-makers sell them for P.75 cents to a peso. A single scented candle of about six inches tall and three inches thick can be bought for as low as P40 pesos, much cheaper indeed than when you buy them from the mall. Their most expensive product, the pascal candle or those gigantic candles used during church rites, is only priced at about P850 pesos.
There is yet another secret to this. Rose learned from her in-laws the importance of recycling. They collect used candles and those wax balls we usually form in the cemetery during All Saints’ Day. They are bought for P10pesos per kilo. Then they are thrown to the furnace for melting and are made into new candles.
“We use the recycled wax only with the red and white candles that we sell for cheap prices. It’s not really practical if we’ll use pure paraffin wax..
“Besides we really can’t sell the candles if they’re too expensive. People around here cannot afford it, unlike in Manila. And we sell them for the same price even during peak season.”
Business is fairly good, with growing clientele and the continuous demand for candles. Even some TLRC classmates come to her for additional supply. Rose admitted that making scented and decorative candles is quite costly that’s why the bigger bulk of their production is still the regular non-scented ones.
Rose was kind enough to show us the step-by-step process of making candles. Here’s how it goes:
1) Candle-making basically starts with the wick. Buy cotton strips from textile mills costing about [45 pesos per kilo. Use pure cotton for better quality, making sure there’s no nylon material mixed in the cotton strips.
2) The cotton strips are cut and made into knots. Soak them in hot wax to make them stiff and hard and ready for candle-molding.
3) Tie the wicks to a stick about two feet long and carefully place them at the center of the hot wax in the mold.
4) Add the scent while the wax is being poured into the mold.
This small home business has become the bread and butter of the Ludgarda Family. And this home business is what Rose can proudly pass on to her children and grandchildren. Judging from the way she puts her heart into her work, there is no doubt on the very bright future for Rose Candles.
