Tips to Avoid Premature Bankruptcy for Young Business Owners

A great business mind is most often considered the best asset of a successful entrepreneur.

Being a business owner is always one of the seemingly more exciting ways to make a living. Considering the many opportunities in the market and the rise of consumer spending in the country, there is no surprise to why a handful of graduates choose to be young business owners.

Starting young in the world of business is always a good thing, but it can also be too risky especially if it’s a start-up and you’re doing everything by yourself. The primary concern when starting a business frequently revolves around finances. Do you have the money to start a business? Do you have all the requirements to apply for a business loan? These are the right questions to ask yourself, but remember that it’s not always about the money.

No matter how bright your ideas are, you won’t get anywhere if you don’t plan and execute a strategic approach toward entrepreneurship. Before you begin your venture, here are some ideas on how you can go about your business planning:

1. Outline your business goals. When setting your business goals, don’t focus on just making money. Not only does it sound greedy, it also does not give you the right kind of mindset as a business owner. Set goals for yourself and for your business so you can always be on target. Do you want to expand your business a few years from now, if it becomes successful? Do you want to get investors or franchisees?

2. Boost your knowledge on financial management. One of the downfalls of most businesses is the lack of knowledge about handling money. There are a lot of books on business and financial management that you can get from a bookstore. Otherwise, you can simply Google what you need to know. You can even find a lot of online videos and even business courses, free of charge.

3. Create a budget. If you are funding your own venture, you may have very limited resources. If not, it’s likely you don’t have enough cash flow. While it can be quite challenging, having a conservative stance towards spending will allow you to stretch your budget.

4. Prepare for a business credit card application. Even if you already have a credit card, never use your personal card for your business. Having a small business credit card to be used exclusively for business purposes is a much better idea. It will allow you to monitor and evaluate your business expenses. It will also give you enough financial flexibility in times of need.

5. Join business symposiums or conferences. Learn from the most reputable business speakers. It’s highly logical to learn about the experiences and hear words of wisdom from business professionals. You also need to consider these events as an opportunity to grow your network.

6. Be an expert in people-to-people and business-to-business relations. Don’t attempt to pull dirty tactics for your own gain. From clients and suppliers to business partners and competitors, never strain your relations with anyone. Being unethical will only backfire and hurt your business and your personal life in the long run.

7. Monitor your run rate. Every business owner knows the importance of monitoring how the business is actually doing. How is the ROI (return on investment)? Will you be able to continue with expansion or do you need to consider an abridgment? This allows you to identify the SWOTs (strengths, weaknesses, opportunities, and threats) of your business and to evaluate if the business is truly profitable.

As a young entrepreneur, you must not fear the many facets of business planning and execution that you will need to go through. Most of the time, people who take the biggest risks are the ones who get to enjoy a booming success.

 This article is exclusively written for PinoyCareerCenter.Blogspot.com by MoneyMax Philippines, the country's leading financial comparison portal which helps Filipino consumers make the right financial decisions as they settle on the best credit card, home loan, broadband plan, and more—fast, comprehensive, and free. Visit MoneyMax Blog for more financial tips and advice.

Growing a Small Business from Home

Many Filipinos today are considering going from being an average employee to becoming a small-time business owner. And this could be just one great move for them. Robert Kiyosaki once said in his book entitled “Rich Dad, Poor Dad” that financial freedom can be attained through establishing a business and investing.

Nevertheless, the country is undeniably booming with various business and investment opportunities. From manufacturing hand-crafted products to opening restaurants, the ideas are endless. They come up with innovative products and services that can stand even during tough economic times.

Starting a small business from home is usually the scenario here in the country. With a decent capital to get by, budding entrepreneurs are slowly climbing their way to the top through ingenious strategies. But just like any other venture, it doesn't come easy. Surely, challenges may come even if you're building your business at home. But with the right mindset and techniques, the journey towards financial freedom wouldn't be that much difficult.

A Conducive Work Environment
Regardless of what industry you're in, it is crucial to designate a workspace suited for you. There are lots of home office ideas swarming over the Net which you can take advantage of. Set aside some space in your house, preferably somewhere with minimal distractions. Moreover, investing in professional office equipment and furniture is a sound investment. Spending time in front of the computer means you need to be mindful about ergonomics. An ergonomic chair and keyboard saves you from repetitive stress injuries.

Keep a Strong Team
A home-based business isn't equivalent to a one-man show. The fact that it is business means you need experts to help you out. These are people who must be adept with aspects you are not familiar with. For instance, if you are not familiar with setting up an online presence, you may hire a web developer with an SEO and internet marketing experience. Aside from that, you may need the help of accountants, bookkeepers and even lawyers. Assess what your strengths are when it comes to running a business and focus on the parts which you are good at. Leave the rest to your competent team.

Branding Helps
Building your company also means building its identity in the market. Part of your business plan should be impressive yet feasible marketing strategies. Branding is all about establishing your business' credibility through delivering the message of your products and/or services clearly. Create ways to connect to your clients and customers emotionally.

Customer Service
No matter what size, businesses should always make their customers feel valued. When you come to think of it, your company wouldn't even suffice without them. Cultivating relationships with your target audience is extremely essential during the first stage of your business. Winning their loyalty is a matter of being grateful and respectful of them, be it through exceptionally answering to their queries and attending to their concerns.
Managing and growing your small business at home is definitely possible. Starting out while keeping in mind these concepts may even give you a bigger and brighter opportunity in the corporate scene.

AUTHOR BIO
Anna Garcia writes for Regus PH. Regus Philippines offers excellent serviced accommodation and business solutions in three of the largest metropolitans in the country: Manila, Makati and Cebu City.

12 Ways to Attract and Keep More Customers in your Business

1. Have a quality product and maintain it. Make it sure that you are selling a very good product or service. It must have a good quality and must meet the standard of the market.

2. Be honest to your customers. Products or services that do not meet the expectation of your customers will give a bad reputation in your business. So everytime you promote your business do not underdeliver of overpromise.

3. Know your market. Before you attract customers in your business, make it sure that you know your market well. It will give you more understanding of what products to offer and what kind of marketing promotion you will do.

4.Use social networking. People nowadays love to hangout in social networks like Facebook, Twitter, Pinterest, etc. Why not use it to promote your business? It will boost your business by sharing it to your friends’ friends or by tweeting it. Also, it is fun and free.

5. Always listen to your customers. Do get angry or get insulted if your customers tell you that something is wrong in your product or service. Listen to them and fix the problem.

6. Be a “people person.” Attitude is critical to your business. Be friendly to your customers and they will be friendly to you, too.

7. Use attractive promotions to boost your product sales. Why not offer something to your customers that will keep them come back to you? Use Loyalty Program, buy 1 take 1, Buy 5 get 1 free. Did you get the idea?

8. Eye on your competition. Remember that you are not the only one who is selling your products. Business is a game of competition. Learn from your competitors and study how they sell or provide service to their customers. It will give you extra ideas to become more effective business person.

9. Be creative. Do not stick to one product if there is an opportunity to sell other products. If you are selling exercise machines, then look for another method to expand your business. Maybe you can add health products like vitamins in your product list. Always be creative.

10. Updgrade yourself. Do not be afraid to go back to school. It will help you to learn new things about your business.

11. Treat your employees properly. A piece of advise for those who have employees – always treat them properly. How you treat them will reflect on their working attitude.

12. Be willing to change. Hundreds of products are produced and sold in the market daily. Always update yourself of the latest info of your products or service. If you have seen that what you sell is outdated or old, be willing to change it. Do not stick to old ones, but try something new.

6 Things To Consider Before You Setup A Laundry Business

To setup a laundry business requires no prior experience. You do not need a degree to become a successful laundry shop owner. Also, this kind of business is considered safe and profitable. Nowadays, many people do not have time to wash their clothes because of their busy schedules, so this is a kind of business that can provide laundry service for them.

If you are planning to become a laundry shop operator, then there are 6 things that you must consider to become a successful laundry business operator.

First, location.

Second, capital.

Third, customers.

Fourth, supplies and equipment.

Fifth, operating hours.

1. Location.

To setup a laundry business is a good start for your business to grow. You need to put your business in a large community of large customers. A location within dormitories, schools, business establishments is ideal because of its large volume of people.

2. Capital.

Today, a typical laundry shop will require a starting investment of 300,000 – 500,000 for small laundry shop, and 500,000 – 1,000,000 pesos for big laundry shop. You will spend more on the machines that you will use while other expenses will go on other expenses.

3. Customers.

Customers are the backbone of this business. It is very important to provide quality service to them because through your customers, your business will grow by word of mouth and referrals.

4. Supplies and equipment.

A beginning laundry shop with a minimal budget must have at least two pairs of washers and dryers. You must also remember that the cost of the machines also depend on the brand. To cut off expenses, it is also suggested that you make your own fresheners, detergents, and fabric softeners.

5. Operating hours.     

It is important for laundry shops to consider the available time for customers. It will give them time when to deliver and pick-up their laundry.

6. Manpower.

A small laundry shop requires two or three workers. However, if you have a big laundry shop and you are providing services to big institutions, then you need a big manpower. Your employees must be trustworthy, diligent, have knowledge in washing and taking care of clothes, etc. To have good workers will keep your customers come back again to use your service.

Now that you know what to consider in setting-up a laundry business, it is time to know the different ways to increase your income. According to Entrepreneur Magazine, there are 5 ways to increase your laundry business profits.

First, increase the price or target high volumes. “You may either charge more for the services or keep your prices low but target higher volumes.”

You can do this through promotions or adding valuable services like free pick-up and delivery.

Second, “design the shop to make it functional and to minimize costs.” A laundry shop consumes a lot of electricity, and in our country, electrical companies charge the consumers with high amount of money. To avoid this, you can plan your shop by making a big room for drying area. This is very helpful especially on summer or dry season because it cut the cost of electric usage. You can also buy drums and use it to store water instead of using pressurized tanks for the water supply.

Third, “look for commercial and institutional clients for faster return of investment.”  You can charge big commercial and institutional clients with more money. Also, these kinds of establishments can provide more items for your laundry shop to wash. The more items you wash, the more money you will have.

Fourth, “charge more for bulky items and heavy garments.” As a laundry service provider, you must know the service price that you will charge in each item. Charge more for big, heavy, and bulky items like bedcovers, comforters, blankets, jeans, and jackets.

Fifth, “offer dry cleaning.” Dry cleaning service provides high profit in laundry business. However, it requires lots of practice to master it because it can ruin a fabric or garment if not done properly.

Here are the following websites where you can get more information on how to set-up laundry business in the Philippines:

http://laundrybusinessphilippines.com/

 http://www.businesscoachphil.com/

 http://mrlaundryshoppe.com/

Slow Sure Steps to Prosperity

Last night, I was reading one of the books written by Bo Sanchez. He is one of my favorite authors because his writings are very inspiring and uplifting. The title of the book is 40 Stories of Passion – Learn from 40 ordinary people on how to make your life extraordinarily beautiful.

One of the stories that I really like in that book is about the life of Lola Nieves Verneza. She was interviewed by Bo Sanchez, and she was 81 year old at the time of interview. Let me share the things they talked about.

Bo: Nanay, tell be a bit of your roots
Nanay: I came, from a poor family in San Pedro, Laguna.

Bo: Did you always have this entrepreneurial blood in you?
Nanay: Yes! At the age of 15, I was already selling. It was the year 1943, during World War II. I sold “contraband” items that the Japanese soldiers confiscated for their use such as rice and chicken. So in deep baskets, I put the rice and the chicken under my patola and sitaw. I carried these baskets by foot, by calesa, by train and by banca to Manila. It was very difficult and dangerous. But that was the only way we could survive.

Bo: Weren’t you afraid?
Nanay: I was. Those were scary times. I had to intentionally look ugly so that the Japanese soldiers won’t pick on me. If you were pretty, you’d get confiscated too!

Bo: When did you get married?
Nanay: When I was 18 years old, I met Censio in one of my banca rides to Manila. After to talking to my parents, we got married very soon after.

Bo: What was Censio’s livelihood?
Nanay: He was a poor farmer and a fisherman. But even after the war, I continued to sell whatever I could find that I could make a profit on.
Bo: And you lived a simple life so that you could save…
Nanay: Yes. We saved every centavo. If my children asked for 90 centavos to buy something for school (and I gave them one peso), when they returned, I asked for the 10 centavo change.

Bo: What happened next?
Nanay: When we saved enough money for a down payment, we bought a jeepney. Censio learned how to drive and decided, with complete trust for better opportunity, to relocate the whole family to Paco, Manila. By grace or chance, he got an offer as a driver from the nearby school to be their official “school bus driver.”  Meanwhile, I opened a tiny store in Paco Market to sell clothes. It was really a four-foot table and nothing much. But every day, I’d wake up early in the morning to work, saving for our children’s future.

Bo: And then what happened?
Nanay: Through our savings, Censio was able to buy a second-hand bus to meet the demand of more students being served. And then we bought a property loan. The owner of the land was a friend and she agreed on a pay-when-able scheme. Through our savings everyday, we paid it in two years. After that, we build apartments. To save money, my husband learned how to be an architect, engineer, contractor and foreman – even if he only finished Grade 6. And so for another two years, we built 70 apartments…

Bo: Seventy: Did you say 70 apartments?
Nanay: Yes, 70, very simple and small apartments.

Bo: How did you do it?
Nanay: Censio would borrow from the hardware construction material. We built one apartment and rented it out right away. We asked for a two- or three-month deposit from the tenant. We used that money to start building another apartment unit. We didn’t stop until we reached that many apartments.
Bo: I still can’t believe you built that many apartments! Wow! Weren’t your neighbors shocked?
Nanay: They were. They thought we got money from rich relatives. They didn’t know that through all those years, we were saving money – little by little.

Bo: Thank you for your inspiring story. At 81, now that Censio has passed away, you give most of your time to your service to God. Any last words?
Nanay: Live a simply lifestyle. . Eat vegetables and fish. Avoid stress. Don’t have too much worries. Pray. At magtipid. Mag-ipon. At lahat ng kita, itago. Ilagay sa negosyo o sa paupahan. (Be frugal. Save. Keep all your income. Put it in business or lend it to someone.)
..........................................................................................................................................................

This interview was taken from the book 40 Stories of Passion. To learn more of his inspiring books and magazines, log onto Bo Sanchez website, www.bosanchez.ph  or you can email at bosanchez@kerygmafamily.com

4 things that you must do before you set-up a business

If you are planning to set-up a new business, then you must realize that it takes time,skill,discipline, and hard work to be successful. Also, there are 4 things that you must consider before you dive into and decide on what business you will set-up.
 
1. Before starting out, you must first know the reasons why do you want to start a business. People have different reasons, but all of them fall into three things:

• Reason # 1 – You want to be your own boss.
• Reason # 2 – You want to use and practice your knowledge and skills.
• Reason # 3 – You want financial independence.

2. Analyze and decide what business is “right for you.” Ask yourself these questions:

• What technical skills have I learned?
• What hobbies or interests do I have which is marketable.
• What do others say I am good at?
• DO I have enough time to run a business?

3. Identify the niche of your business. Do a necessary research. You can use the following questions:

• Who are my competitions?
• Can I deliver a quality service if I build this business?
• Am I fitted or qualified in this business?
• Can I create a demand for this business?

4. You must develop a business checklist. A checklist will be your guide before you make your final decision. Your checklist must answer these questions:

• What will be the name of my business?
• What kind of insurance should I use?
• What products will I sell?
• What services will I provide?
• Where will be my business location?
• Do I need a financing?
• What are the legal structures of my business?
• How many employees do I need?
• What kind of business will operation will I create?
• Do I have a short business plan and long term business plan?
• How much capital start-up do I need?
• etc.

In our country, there are 4 types of business organization that we can choose. The first is sole proprietorship. This is the easiest and doesn’t need lots of capital to start-up. You can start this business even you do not have a partner. As a business owner, you have the sole authority to your business. The second is partnership. There are several types of partnerships. The most common are general partnership and limited partnership. A partnership agreement should include the following:

• type of business
• division of profit or loss
• duration of partnership
• partners compensation
• amount of equity invested by each partner
• dispute settlement clause
• distribution of assets on dissolution
• restrictions of authority and expenditures
• provisions for changes or dissolving the partnership
• settlement in case of death or incapacity
• amount of equity invested by each partner

The last type of business is corporation. This business may be comprised without legal assistance, but it is always recommended to have legal advice. Control is exercised through board meetings and stockholders’ meeting.

A Quick Guide on How to Start an Event Planning Business in Philippines

The Philippines is known as country of festivals and events. Every month, we have always major celebrations in every parts of the country. Aside from it, Filipinos are also fond of weddings, birthday parties, debut parties, etc.

This is a great opportunity for those who want to become an event program planner. Why? Because a person who will host a special program like a wedding, wants his/her guests to be comfortable and stress free, so the  only way to do it is to hire a professional event planner.



So how can you become a professional event planner? You must remember that this kind of job is very fulfilling and a very demanding job. You must be a creative person, have patience, knows how to manage the time, flexible, and good in multi-tasking. You must also consider three things for you to be a successful planner.

First, you need to identify your market.This is very important and must be the first thing you  should do. Study what the market needs, so you can think what events you will organize.

Second, you must be knowledgeable. You must know all the things about the events that you will organize. For example, you will organize a wedding program and party, then you must differentiate and explain the kinds of gowns to the bride to be. It will help her to choose what is right for her or not. In short, you must know every details of it.

Third, you must have a good network of suppliers. This is very important for every planners. It will help you and your clients to determine and plan the things they need, and that will suit their budget. One way of finding of right suppliers is by attending exhibits. You can also do business with freelance suppliers because their service and products are not expensive.

Things you need to setup an event planning business?This kind of business is not expensive to setup. The minimal initial investment is depend on the items and things you need. You can recover the cost of money that you use in a year or a two.The basic things that you need are the following:

• Business registration fees for DTI, Mayor’s Permit, Barangay Permit etc. – 5,000 – 8,000 pesos
• Laptop – 20,000 – 30,000 pesos
• Printer – you can get a good printer for 3,000 – 5,000 pesos
• Office supplies – 5,000 – 10,000 pesos.
• These are optional: professional website, office space, advertisement fees.

To start an event planning business is not difficult as you think. You just need to apply and put into action the three ideas I've just mentioned with a proper planning and determination.