Trying out a business in the Philippines is a sure risk. The options are numerous, but so are the perils. But once the right business is hit, the rewards are sure to pour in.
Let’s start realistically. The usual way is doing employment first then business, if we want to play it really safe. Either earn the capital from the work pay or avail of a business loan with the employment as collateral—like a salary loan.
At least have 30 percent of the total capital needed for a desired business. Say, the initial capital for a medium size ice cream and soda stand is $500 or P 23,500 (at a rate of P 47 to a dollar). Thirty percent of this is $150 or P 7, 050. Add to this your loan of, say, $200 (P 9,400) or $300 (P 14, 100). So initially, you have at least P13, 000 plus or about $277. Start a small ice cream stand.
Then accurate information comes in. Seek professional mentorship. Seek out several friends, relatives or referrals that are in the business of one’s choice and have them as informal mentors. This is often given for free. This way you save money intended for a seminar fee.
Learn as much as possible. Be sure to get hands-on experience. Learning merely in theory won’t get anywhere but a downward spiral. Getting the basics and some secrets of trade is crucial.
One of the vital things in a starting a business is location. It often decides whether the business thrives or dies. Choose several places and survey human traffic at specific times of the day—preferably morning, lunch time, and at 6 pm. If the location is mostly packed with crowds, and the rent is reasonable (which is about P2,500 or $53 a month for an ice cream stand), then the place is worth trying.
Strong will. Many will dissuade you. Proceed with sturdy confidence but put allowance to some letdowns—first times are prone to mistakes. Feel free to go back to the mentors for further enlightenment.
Hard work is a given. Often it means the owner will man it himself for months or even years.
If an initial $8,000 is desired as net income for the first year (that’s P 376,000), each month ought to yield at least $667 to $700 a month (P 31,349, at least). That’s $167 to $200 net gain daily (P 7,849, at least). This is conservative.
A European waffle franchise can cost $450 or P 21, 150 in Manila, complete with the collapsible booth, ovens, display rack, initial flour pack, boxes and waffle packs.
All the business success elements must be there: information, will, hard work, and faith to sustain all three. Then scratch starts to translate into cash.