You’re excited about finally turning your awesome business idea into reality, but you aren’t sure if this will become successful. Have you carefully assessed all the important considerations before you set up your business? A lot of business startups in the Philippines fail because their owners weren’t able to consider the most important aspects of their enterprise.
Of course, you don’t want your investments in energy, time, and money to go to waste. Before you take the plunge, take a step back and assess yourself and what you currently have. You need to be realistic with yourself and ask the following questions before you start a business in the Philippines:
- Is the business something I’m passionate about? Just because you like food and dining, doesn’t mean you’re sure to succeed as a restaurateur. Or if you’re into arts and crafts, that’s not a guarantee you’ll make lots of money selling your handcrafted goods. Passion is different from interest. Passion is sustaining; interest is only fleeting. You have to make sure that you love (and can sustain your passion in the long term) what you’re going to do. Passion will make managing your business a fulfilling experience.
- What’s my vision for the business and how will I take it there? As an aspiring entrepreneur, you’re the leader—you have to think about your vision and what you need to do to steer your business toward achieving your goals. This is where a creating a business plan becomes useful for any would-be business owner.
- Do I have enough funds? Setting up a small business in the Philippines can be very costly, especially for first-time entrepreneurs. So you have to be sure that your finances are sufficient to cover all the expenses related to your business. Evaluate the total cost you need to start and run your business and then check your available funds. Do you have enough money for equipment, rentals, furniture, licenses and permits, supplies, employee wages, and other business costs? If your personal savings isn’t sufficient, consider other sources of business financing such as personal loans.
- Who will be my customers? Is there a market for your business idea? If so, what is your target market? Do a market research or survey to find out what their needs are and their problems or pain points that your business can solve. From your market research findings, create a buyer persona that represents your ideal customer.
- Who are my competitors? Your business concept may be great, but if the competition is tough, it’s hard to propel your business to success. You need to identify your competitors and their market strategies. That way, you can think of your own strategies to get ahead of them by providing unique value to your customers.
- Do I have the right location for my business? When you’re choosing the best location for your business, consider the costs of running your business in a certain area. Some locations have cheaper taxes and utility costs than others. Also, consider if most of your target customers live or work in your chosen business location.
- Do I know the rules? Businesses are regulated by laws and rules in every country, so it’s important to read up on the relevant business laws in the Philippines. You don’t want to get your business operations hampered by lawsuits filed against you for violating the law.
- Am I ready? Are you willing to give up your day job to manage your business full time? Are you willing to take risks? Can you take failures and rise above them? Do you have the qualities and skills needed to succeed as an entrepreneur? If your answer is yes to all of these questions, then you’re well on your way to set up your business in the Philippines.
Starting a business is a serious undertaking—give it much thought before you take the plunge. May these questions help you evaluate your chances of success for setting up your dream enterprise.
Author: Daniel Zoleta