We all have this dream of having our own successful business. It’s exciting. It’s really fun to think. However, the reality might be far different from what we expect. It’s not all about becoming your own boss. It’s not all about having the freedom that you couldn’t enjoy as an employee. It’s not even all about following your passion.
Doing business is an endless learning. There’s no certainty. There’s no clarity. There will always be a new lesson for you to learn. However, you can always have the right knowledge, which can help you in each stage of your journey.
Starting a business is not just a mere game. It will take your precious time, money and even a large part of your life. So before you begin, here are some things you should know first before embarking into business.
1. Get to know and understand your business better.
There are business seminars in the Philippines that will teach you how to start your chosen business the right way. So if you’re starting a restaurant, it’s wise to attend a seminar on how to start a restaurant to equip yourself with the knowledge and skills you need to succeed your business. A resource trainer can teach you important things, such as registering your business, understanding your market, and even winning your competition.
2. Check if your business will qualify as a BMBE.
Under Republic Act No. 9178 or the BMBEs Act of 2002, a BMBE is a business enterprise in the Philippines with total assets, excluding land, of not more than P3 million (including assets from loans but not the land on which the plant and equipment are located). If you believe that your business is eligible, register it as a BMBE at Negosyo Centers set up by the Department of Trade and Industry to avail incentives, such as income tax exemption, exemption from the coverage of minimum wage law, special credit privilege, and technology and marketing assistance.
3. Bookkeeping, taxes and government compliance can be costly.
Registering a business and getting licenses can be a tedious process in the Philippines. You will have to hire a bookkeeper, accountant and tax consultant to delegate tasks from business registration to complying with your monthly, quarterly and yearly tax obligations. We can just hope that the new government administration can already reduce or eradicate red tape in the country.
4. Financial capital is vital to keeping your business alive.
There may be hundreds or thousands of business ideas that require small or no capital at all. However, it’s still best to start your business with adequate money to run it for at least 3 years even without making profits. The first three years of doing business is critical. Without money, you might just end up being drowned in debts. Hence, save your money first for your capital or find business partners or investors who can provide you the funds you need.
5. Stop being obsessed with unimportant things.
Starting a business can be so exciting. You might find yourself obsessed with beautifying your office, personally buying your furniture, or designing your own business cards. It’s okay to have fun with your business. However, you should also think that there are other things that you might need to focus on like getting customers and generating more sales. Hence, consider delegating other tasks so you can concentrate on making your business alive, especially in the early stage.
6. Hire the right people.
Hiring employees for your business can be a difficult task, especially if your relatives and close friends are interested to work in your company. To make sure that you will be building the right team for your business, do not escape quality procedures like interviewing all applicants, giving examinations, and conducting background checks to make sure that the right people will get the right job.
7. You have to start your business from customers.
You should start your business with customers in mind not with yourself. Many entrepreneurs fail in business because they believe that starting a business is their only way to escape from employment and to start getting rich. Instead of thinking about yourself, think of your happy customers, as well as your happy employees.
8. You have to deal with your limitations.
Entering into the world of entrepreneurship is probably one of the hardest and most challenging decisions you will ever make. A lot of trials and challenges will be waiting for you. These include lack of working capital, unpaid monthly bills, problematic employees, and even the lack of comfortable office or workplace. But all of them are just challenges. You should not treat them as excuses to give up or slow down on your business. You have to deal with your weaknesses and capitalize your strengths.
9. Have a plan.
Having a plan and a strategy will help you see the whole picture. It will give you the right guide and direction toward business success. And yes you don’t necessarily have to do it on your own. You can hire a business consultant to write down your business plan so all you have to do is to consistently execute it until you accomplish your goals.
10. Don’t start a business if you’re not yet ready.
Entrepreneurship is not all about taking risks and being fearless. It is also about making sure that your business and its stakeholders will grow and be successful. When you start a business, it’s not all about you or about your own dream, but it’s also about other people and your dream for them. When you enter into business, there’s no turning back. It’s either you do it right or you do not do it at all.
Starting a business is starting a new life. When you start a business, your life will never be the same again. You will not be an employee or a freelancer anymore. You will have bigger duties and responsibilities. You will be working for a greater cause. Therefore, before starting a business, make sure that you are ready to leave your old life and start a new one.