For Anna, baking was a hobby she enjoyed as a young teenager. Now that she has a family, she never thought that baking goodies for her children will turn out to be a profitable home business. Let’s find out more from her.
Q: What are the products that you sell?
A: My product line is basically different kind of cookies, brownies and sometimes cakes. For the cookies, I have oatmeal and choco chips, then the chocolate crinkles. I also bake brownies with a variety of toppings like marshmallows and nuts. Then for the cakes, I offer chocolate and cheese cakes. I also accommodate orders for cakes for special occasions like weddings and birthdays.
Q: How many people do you employ?
A: I started with one assistant but later hired two more to assist me in the kitchen and one driver since I just entered into agreements with three restaurants to supply them with my products.
Q: How profitable has this business been?
A: For someone who did not really plan to start this business, I can say that I am satisfied with the profit that I have earned from this. It really is profitable since the ingredients are basically the dame, with little variety, so you get to use most of what you buy. And there is no spoilage since you bake according to the orders you get.
In terms of pricing, I have to keep my prices lower than the known bakeshops. Otherwise, customers would rather buy from them. Besides, clients expect lower prices from me. Mark up would probably be from 35% to 50% depending on the product and quantity.
Q: How do you market your products to get orders?
A: It was difficult at the start, It’s funny to think that when I was just baking for my family and friends as a hobby, I did not feel tired baking all those goodies. But when I decided to continue this as a business, I felt the pressure to think of ways to get additional orders. And at the end of the day, I really feel exhausted. I guess it was a normal reaction since you start to think of earning profits.
Initially, I asked the help of family and friends and had them taste my products. Actually, they were my initial clients. Then, their friends also started to order from me. And when I had the opportunity, I joined small bazaars in subdivisions to introduce my products. I got several orders through it. I also got to advertise my business through the mothers of my eldest son’s classmates.
Actually, I must say that this business continues its existence through referrals and being able to maintain loyal clients who order from you for several occasions.
Q: What advice can you give to those who want to start this kind of business?
A: First and foremost, you have to love baking. It’s a must! Otherwise, you cannot start this kind of business. Then you have to be patient. When I started to think of this as a business, I was so eager to earn the profit right away but it took some time. So you really have to be patient. Also, you must be very realistic and set reasonable goals for yourself and your business. Lastly, you have to make sure the quality of your products remains consistent.
One great example of a home business that anyone with interest in food and parties is the business of catering. Just arm yourself with a sizable capital not less than P100,000, an assistant cook, at least 3 waiters, a couple of helpers, a driver (unless you can drive) and your on your way to income galore.
Here’s a Q&A with a friend-entrepreneur who decided to make use of her cooking abilities.
Q: How do you plan for your menu?
A: Initially, I inquired from other caterers. Then, I tried to come up with m own menu. It is important to highlight your specialty. But you have to be flexible too in order to meet your client’s preference and budget.
Q: How much effort does one put into this business?
A: Like any other business, you have to give it your full time. Catering needs your personal touch and attention all the time. Even if you have a cook to assist you, you are still the one in charge of the kitchen. Even if you have waiters top serve the guests, you will have to be there to attend to the needs of your clients.
Q: You mentioned “personal touch” but what if you have to cater to different events in a day? What do you do?
A: It is really hard when you have two or more events in one day. You have to exert extra effort, especially of the events are scheduled at the same time. There was one time when I had two events to cater on a Saturday evening. One was in Quezon City and the other in Pasig. I asked my partner to attend the one in Pasigs while I attended the one in Quezon City. But during the affair, we were in constant communication (thanks to cellphones!). It is really hard but at the end of the day, you find yourself fulfilled. It is rewarding!
Other caterers I know, they have people to contact to whenever events overlapped and they find it difficult to go to all those catering parties for the day. What is important is that you have someone to take your place if you cannot be there. That someone should be able to answer the questions of the guests, be there to build contacts for you, someone who could really represent you and our catering business.
Q: In terms of profit. How much do you earn from this business?
A: With all the effort that I put into this business, the returns are quite rewarding. Mark up can be around 50%. But you cannot actually save much because as I mentioned, the moment you earn from a particular event, you definitely used a big part of your earnings in buying additional things you need to upgrade. You spoons and forks or plates and glasses would not last forever. Expect some of them to get broken or be misplaced. But taking everything into consideration, you really earn quite an income from this business.
Q: Any advice for those interested to enter into the catering business?
A: If you don’t really have much investment to put into it, it is advisable to start small, that is by the order (per shaffing dish). Just try to build contacts first before going into a full-blown catering service. In my case, it was my friends who became my first clients.
You must also maintain the quality of your food and service. No matter how big your business gets, your personal touch is still important. The quality of your food is very necessary. You must also continue to update yourself with trends in the catering business. Enroll in cooking classes from time to time.
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 no Internet connection in my area", or "There will never be one since I live in the remotest piece of real estate in the Philippines". Those are the typical complaints of Filipinos who are pessimistic about their situation, as regards to having Internet connection at their residence.
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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.
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.
Just recently, I had the opportunity to meet up with my college friends. After more than 8 years of not bumping into each other, it was a chance to get updated in what we all have been doing after graduation.
One of my closest friends in college was Anne Capitulo who is now into a home business: food catering. Back then she was already fond of cooking. She would prepare pasta and pizza recipes for us to enjoy whenever we spend out afternoons at her place. Little did she know that this simple hobby of hers would turn into a booming home business. I immediately bombarded her with questions.
Q: What made you decide to venture into the catering business?
A: Around 1998 I had this business with other friends. We were into events planning for weddings, debuts, and other affairs. That time, there were instances when some of our clients would order a particular dish from me. So I would do it a sideline. Then in 2000, I decided to subcontract for my other friends who were into catering. As I realized how profitable this was, I decided to go into full-time catering by 2003.
Q: How did you actually start this business? What’s your initial investment?
A: My initial investment was around P70,000, but I tell you, this was not enough. However, you could start with this amount since you really don’t need to buy everything. The amount is actually used for the ingredients, the dinnerware/silverware, shaffing dishes. Initially, I had to rent the chairs and tables from other caterers, even the waiters. That is why it is important that you build contacts.
In fact, I had to go to thrift shops in Divisoria and Quiapo to purchase what I needed. It is definitely much cheaper in these places. Shaffing dishes and dinnerwares are priced lower by around P1,000 compared to those sold in department stores. Just imagine how much you could save if you know where to buy. Be patient though and try to do some haggling.
Also, one has to have an enclosed vehicle for the delivery of food. Enclosed because you need to keep your food clean. Fortunately, my dad gave me a van for this business. Otherwise, I have to rent whenever I had to deliver my food.
Q: What does it take to be in the food catering business?
A: First, you must know how to cook. Starting out in this business, you do all the cooking. Also, you need to be resourceful in establishing contacts. You need to build contacts not only for your clients but as a source for your supplies—like your favorite mean vendor, vegetable dealer, table-chair rentals, cake, flowers, waiters and other details.
One also has to be outgoing and you have to love attending parties. In catering, your work doesn’t start and end with cooking. You have to be present during the event itself. You actually organize the event too. You talk to the visitors and get their feedbacks. You talk to a lot of people during the affair. That is also one way of building contacts.
Julie’s Gifts began as a hobby of a simple housewife and was was established with a fairly small capital, only P100,000. And because Ms. Julie—the owner—makes all the designs and most of the work herself, she only needed the help of a few people to keep the business running.
“I do all my work here at home. Right now I have about four people working for me, I only hire part-time help when I have big orders. I make the design and then I show them what to do. I get my materials in Divisoria, and then I have subcontractors for other raw materials like the boxes and the baskets, which are also originally designed by me,” Ms. Julie says.
“I don’t profit too much from my products, just enough. Because they’re not what we consider basic needs. I sell them in affordable prices or else nobody would buy them.”
Like most local home businessmen, Ms. Julie is not spared from the ongoing crisis plaguing the country. But given the right time and opportunity, she has big plans for her business.
“My long term plans include having my own store, a small kiosk in malls will do. I’d also like to go into export but unfortunately I’m still waiting for our economy to get better. It’s a little hard to push through with these plans under the circumstances,” she laments.
For the meantime, business is doing well and growing steadily. It greatly helps with the family’s income. Her kids also lend time and effort, especially her eldest who seems to be following mom’s footsteps.
“My eldest daughter is interested in scented candle and soap-making. That’s another product we hope to develop.
“People come to my home to see my products and make orders. I try to develop and create new items every now and then so as to keep the interest of buyers, because the advantage of Julie’s Gifts from the others is the originality in concepts and designs.
Ms. Julie believes that with patience and a lot of hard work, anybody can successfully start a home business. And you don’t always need to invest a huge capital.
“I can advice others to start a small business like mine because you don’t need a really big capital in this line of business. But I would advice them to make a feasibility study first before venturing to any kind of business. You can attend seminars and trainings.
Ms. Julie’s business experience will show a lot of women out there that being a plain housewife should not hinder your desire to succeed. You can be productive and earn right in the comfort of your own home.
Candle-making lights the future of the Ludgarda family from Angono.
Mrs. Rose Lugarda came to Angono (from Darangan, Rizal, Philippines) in 1972 to work for Rosin Candles owned by her soon-to-be husband’s family. Almost three decades of experience enabled her to master not only the candle-making process but the business operations as well.
It was 8 years ago when Rose and her husband decided to build a separate factory and run their own candle-making business. Unfortunately, this decision was the result of problems and misunderstandings with her in-laws. But fate has a funny way of turning bad things into good.
In 2000, upon the advice of her cousin, Aling Rose attended a two-day training on aroma candle-making at the Technological Livelihood and Resource Institute (TLRC).
“It was my cousin who told me about it. She herself wanted to have her own business. She told me about the TLRC training for aroma candle-making. Since I have a lot of clients asking me about aroma candles, I attended the two-day training last year.
“It was also at TLRC where I learned the art of decorating the candles,” Rose said.
Starting the business was not easy. Aside from shunning away from the shadow of the “original” family business, Rose and her husband needed a fairly large capital.
“We invested an initial capital of P120,000. We got the money from selling about 15 pigs that we raised for some time. Our workers are composed of family members. So this is now our own family business.”
On regular days, only three workers are needed to get the work done as large demand for candles is only seasonal. I visited the factory and found the whole family busy molding and packing their products for immediate delivery.
“Actually, bigger profit only comes when there are special occasions. But we continuously make candles all year round because we have dealers all over Rizal—Antipolo, Morong, Binangonan, Cardona—who sell our products. Even some of our clients from the other factory now come to us for their supply.”
Rose Candles has established quite a respectable network of dealers around the province of RIzal. Most of them are found in churches or small stalls and stores. Rose herself is renting a small place just along Kalayaan Road in Angono to sell her candles.
Rose is hoping that she can raise a bigger capital to help her business. Part of her dream is putting up kiosks in malls around Manila. “If we will have money, we would like to increase our production, purchase new and better equipment, and maybe have some stores in Manila.”
Sari-sari stores have been a tradition of community-based micro consumer businesses and have in fact become a basic entrepreneurial institution in the Philippines. They pop up here and there, often side by side.
But do they really make money?
A decent start with this business costs about P50,000. Some start it with P30,000 or less. But if the sari-sari store itself is not yet constructed a capital of P70,000 to P100,000 could be realistic enough.
A 16 square meter area ought to make for a spacious sari-sari store and would cost some P48,000 to P50,000 to construct if we use a P3,000 per square cost estimate factor. With a P70,000 capital and a P48,000 sari-sari-store construction cost, P22,000 is left for merchandise capital.
This remaining capital is distributed to at least 5 basic product items: canned items, sweets items, drinks items, plain food items, and miscellaneous items. We have left out wet items, hardware items, accessory items, and gifts and novelty items---items that can also easily make money. They may be added at a later time.
Say, for canned items we put P5,000, for sweets P2,000, for drinks P7,000, for food P5,000, and for miscellaneous P3,000. Drinks need more capital for buying drink cases and bottles in this business. Often, the experience among sari-sari store owners is that drinks, sweets, and canned items are the top three products that really make money. Under drinks are included soft drinks and beer and liquor. Sweets include affordable chocolates and candies. Canned items are sardines, corned beef, tuna, salmon, and cooking oil.
Then, we need to have a return of investment at the soonest possible time. If daily sales of the sari-sari store amount to P3,000 and three quarters of that is capital, we earn clean P750 daily. Not bad for a business to make money. We allot P150 of that for food for a day, P15 for next year’s business permit renewal, P135 for light and water bills for the month, P100 for miscellaneous. So we have P350 as daily savings. Now we have a good idea of how long before a capital of P50,000 or P70,000 can be returned to us. A P50,000 investment will take some 143 days or some 5 months to break even. That is if we make P3,000 sales daily.
Sari-sari stores have been around to make money for countless small proprietors. It is a business worth considering for a gradual entrepreneurship take off.