Showing posts with label Start Your Own Business. Show all posts
Showing posts with label Start Your Own Business. Show all posts
Gian's D' Breakfast Club - Restaurant Business
Posted On Sunday, August 9, 2009 at by Sun Jun
D' Breakfast Club is a small restaurant located at the corner of Ponce and Guerrero streets in Davao City. It is situated near Ateneo de Davao University. It serves breakfast meals all day from 5 am to 12 midnight.
Last week I met the owners of this restaurant. You'll never guess the reason why they started this business. Continue reading to find out what it is.
Situated near a big university in Davao city the restaurant caters to dormers and students living in the area. For a regular tapsilog meal one only has to pay around 30-40 pesos. Very reasonable and perfect for a student's pocket. However, looking at the interiors of the place one would not think that this restaurant serves very affordable meals. As an added bonus, the restaurant offers free WIFI connection.
What was most impressive for me though was the food! It was perfectly cooked! Say goodbye to dry rubbery omelettes and burnt tocinos. When my food came, the pork tocino was still juicy and my omelette a littly runny, just the way I like it.
True to their name, the restaurant tries to offer everything you might need for breakfast. Aside from the rice meals, the restaurant also offers pandesal sandwiches and cereals! I heard that you even get to choose between regular or low-fat milk to go with your cereals. As an added bonus, the restaurant also has brownies and mamom for dessert. Try their creamy mamom! It's one of the best I've tried.
The only drawback is the limited seating capacity of the place and the fact that it can get really hot during lunch time considering that the place is open and doesn't have air conditioning. At night time, I heard the place is usually packed.
There has been a lot of inquiries for franchises but the couple has decided not to franchise out yet. They said that if they franchise out they want to be ready for it so that they can ensure that the quality remains the same. Besides, aside from this business the wife runs her own pre-school (Beautiful Minds) and the husband manages his own trading and import business as well. A step towards that direction though is the couples strategy to outsource their processed meats to a meat-processing plant in Cebu City.
I guess if your business is not only something you love but also something you need, the desire to make it work is stronger. Another point to consider is the fact that if you need it then somebody else might need it as well.
Happy start ups to all entrepreneurs! I look forward to hearing your success story someday.
Happy start ups to all entrepreneurs! I look forward to hearing your success story someday.
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Choosing the Best Structure for Your Enterprise
Posted On Friday, May 22, 2009 at by Sun JunAnother thing to consider when starting up a business is to choose which business structure to use for your enterprise. This is important because depending on the business structure that you choose, the registration procedures are different and the structure also determines the extent of your personal liability.
There are 4 business structures to choose from namely: Sole Proprietorship, Partnership, Corporation, and Cooperative.
Sole Proprietorship
A Sole Proprietorship is the simplest and least costly structure to organize. You only need to register your business name with the Department of Trade and Industry (DTI) and get a Business or Mayor's Permit from your local government.
In this structure, you are your own boss. You don't have to worry about partners and board of directors. However, your business is not considered as a separate entity. This means that dissatisfied individuals or entities who have a claim against your business can run after your personal assets. In short, you get to keep all profits but you also assume all the risks and losses.
Partnerships
Partnerships, as the name suggests, involves taking in a partner or partners to start up a business. It involves two or more persons. First and foremost, a partnership agreement is created which is a binding contract among the partners. This contract is referred to as the Articles of Partnership contract. All details in the partnership from the name to the extent of liability of each partner are written on this contract. As this is an agreement among partners, you and your partners are free to insert provisions that you may feel are important.
In a general partnership, the decision of one partner is binding to all. If it turns out to be a poor decision, all of the partners suffer the consequences.
Like in a sole proprietorship, the liability for debts is also personal. However, this will only be up to the extent of your agreed proportionate share in the partnership as stated in the contract. The same principle is applied for profits.
In a partnership, you can choose to become a limited partner. A limited partner can limit the extent of liability one will take. This is good if you don't want to risk all your personal assets. However, not everyone in a partnership can be a limited partner. The law requires that at least one must be a general partner, someone willing to risk all his personal assets for the business.
Corporations
A corporation has a legal entity of its own which is separate from its stockholders. This is its most attractive feature. It is responsible for its own liabilities and in general, this liability cannot be transferred to its stockholders. A stockholder, therefore, only risks the amount of investments he has invested in the corporation.
The corporation code requires a minimum of five individual incorporators to form a corporation. This is also the minimum number of directors a corporation must have.
A downside to setting up a corporation is tediousness of filing numerous documents with the Securities and Exchange Commission (SEC). It is also more expensive to organize than a sole proprietorship or a partnership. In terms of Taxes, the Tax Code levies a 32% income tax rate on corporate net incomes. There is also an additional 10% tax on dividends given to individual stockholders.
Cooperative
A cooperative is like an association of persons with a common bond. To organize one, there must be at least 15 members who are Filipinos of legal age. The primary objective of your cooperative must be to proved maximum economic benefits to each member.
A cooperative, like a corporation, also has limited liability feature. However, unlike a corporation, no one group can dominate the organization. Major decisions have to be cleared by holding a General Assembly. Profits are also shared equitably.
The requirements for setting up a cooperative is the same as those for corporations. However, instead of filing these with the SEC, these are filed with the Cooperative Development Authority (CDA).
Changing Business Structure
As a last note, bear in mind that you can still change from one business form to another. Most small businesses usually start out as sole proprietorships. Later on, when the business has experience considerable growth, they change into a partnership or a corporation.
This is the first part of Chapter 5 of "The Ultimate Guide to Starting Your Own Business."
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Technology Business Incubator Philippines
Posted On Thursday, May 7, 2009 at by Sun Jun
As defined in wikipedia, Technology Business incubators (TBI) are "programs designed to accelerate the successful development of entrepreneurial companies through an array of business support resources and services, developed and orchestrated by incubator management and offered both in the incubator and through its network of contacts." Its primary role is to nurture and provide entrepreneurs basic support services and resources to help them grow and survive during the start-up period.
And yes, it is coming to the Philippines as well! The Department of Science and Technology (DOST) is already undergoing a research study on the feasibility of a TBI in the Bicutan S&T Complex in Taguig City. What this means is that start up businesses here in the Philippines will get more support in order to succeed! Potentially, business incubators would be able to provide services from helping businesses develop a business plan to actually providing manufacturing services. One interesting fact also is that these services would be available on a pay-per-use basis. Business owners will be given the choice to avail of the service as the need arises and pay on an hourly, daily, monthly, or yearly basis. How cool is that!
I hope this project pushes through. With a technology business incubator by our side, starting up a business would definitely be much easier. All the resources that a business will ever need will be present in single compound. Wow!
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Plan It! Business Plan Essentials
Posted On Saturday, March 21, 2009 at by Sun JunPlan It! Creating a success blue print for your business.
In this chapter from The Ultimate Guide to Starting Your Own Business, Jose M. Galang Jr., explains the importance of having a business plan and the essential details that must be included in one. Read on to learn more.
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No matter how small the business you are planning to build is, it is good practice to create a business plan before starting it. The business plan will serve as your roadmad and it will guide you through uncertain times. Here are the essentials of a good Business Plan.
1. The Mission Statement
A brief statement of the purpose and goals of your business. Try to keep the goals realistic so that potential investors or lenders who will read it will not doubt the plan.
2. Executive Summary
A brief summary of the plan's important contents. This section encapsulates the entire business plan and is written for those who may not have the time to go over the entire document. This is usually written last after the entire document is completed.
3. The Business and its Management Team
A clear and complete description of the business you intend to set up and how you plan to go about it. Include a listing of key people who will invest in or manage the business. The objective is to convince readers that your management team is capable of running the business.
4. The Product and the Marketing Plan
Mainly, in this section, you will discuss the 4 P's in marketing, i.e., Product, Price, Placement, and Promotion. This is where you will discuss the characteristics and selling points of your product. You will also have to include marketing strategies that you plan to take and the demographics of your target market.
5. The Financial Strategy
This section summarizes the flow of money into and out of the business. You will also be required to make a detailed budget and financial projections on how the business is expected to perform in the coming years. It is important to show how and when the business is expected to break-even and start earning.
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Marketing Research Tools (Market Research Part 2)
Posted On Monday, December 15, 2008 at by Sun JunThis is part of the continuing series on How to Start your own Business. Information are based on the book The Ultimate Guide to Starting Your Own Business by Entrepreneur Philippines.
Have you done your market research? Getting to know your target market is Step 3 of the process. If you are a bit lost on how to do this, here are a few approaches that might help you gather information.
- Surveys - Surveys makes use of structured questionnaire that is distributed to a group of respondents. In conducting surveys your objective must be clear and the questions must be well constructed in order to point to that objective.
- Focus Group Discussions - These discussion groups usually last for one to two hours. It is led by a facilitator and participated by around 6 to 8 persons. The facilitator must know what he is doing and must ask the right questions to generate discussion among the group. This methodology is good if you want to go deep into the reasons behind why people regard a product a certain way. After the discussion, an analysis of the insights gained must be presented.
- In-depth Interviews - Interact with one or two respondents and uncover what they think about the product. Get their opinions, values, and personal preferences.
- Ethnography - With this approach, the researcher will have to live temporarily in the same place as his respondents. The researcher uses this time to observe and record the respondents' behavior.
- Product Testing - Find out how your product fares against competition before officially launching it. You can go house to house or find areas where there is a high concentration of your target market. This tool is very useful to find ways to differentiate your product from competition.
- Concept Testing - Test your product or service's acceptability. Ask your makert if they would buy a product or avail of your service if it's available. This test will tell you how different your concept is compared to existing products.
- Mystery Shopping - Go to a competitor's place of business and try their products or service. Take note of the kind of customers they attract, the times they come in, how long they stay and the products or services they pay for. This is a good way to study your competitors and to see the business' potential.
Getting to know your Target Market (MARKET RESEARCH)
Posted On Sunday, November 23, 2008 at by Sun JunRESEARCH IT: Getting to Know Your Target Market
A good way to ensure the success of your venture is to take concrete steps to know if there is a market for your business, how big it is, how it regards the product or service you're going to offer, and the best strategy to reach them. You have to do a MARKET RESEARCH. This section covers how to do a market research and the benefits of doing market research.
Doing market research would allow you to:
- Have an idea of your product or service's acceptability
- Have a grasp of your target market, its profile, and preferences
- Have an estimate of how big or small your market is
- Have an idea of the needs and wants of the market that you can satisfy
- Decide on the best entry strategy for your business
- Find a means to differentiate your product or service from what is existing
- See if you have enough resources to be in the playing field
- Check if you have a fighting chance against competition
- Find out if there would be other possible hindrances to starting your business
Conducting a market research doesn't have to be expensive. Here are some tips on where you can get useful information for your market research.
- Search your network - Friends, friends of friends, family friends, officemates, colleagues can be a starting point. Don't hesitate to consult with them about your venture and see what they think.
- Tapping the supporting cast - They may not be your target market but some people's industry presence or exposure makes them qualified to serve as respondents. And example is talking to a caddy if you want to be in the golf accessories business.
- Talking to former employees - You'll be surprised at how much information people are willing to share, such as day-to-day operations, sales performance, best practices, usual problems and challenges, compensation, and other issues about their former job.
- Chatting up the front liners - Sales clerk, booth people, and crew members are ideal sources of information if you want to find out how the competitors' business is faring, and what the customers think of them.
- The Internet
- Syndicated Reports - studies released by research firms like AC Nielsen.
- Industry Reports - Get insider information through regular updates and reports released by various industry associations.
- Government Agencies - go to www.gov.ph to get the links to the different government agencies.
- Academic Papers
- Annual Reports
- Publications
FIND IT! How To Tell the Good from the Great (PART 2)
Posted On Wednesday, October 1, 2008 at by Sun JunFIND IT! Spotting a Great Business idea and Pursuing It is Chapter 2 of The Ultimate Guide to Starting Your Own Business by Entrepreneur Philippines.
In this article by Gerry Baclagon, the author, highlights where you can look for business ideas and how to distinguish between a good and a great idea.
How to Tell the Good from the Great
Assessing business ideas is an essential skill for any aspiring entrepreneur. It's crucial to start with a viable concept. Here are a few reminders when evaluating business ideas:
- Sleep on it - Sometimes, that great idea you thought of yesterday might not make sense after thinking it through. Don't be hasty in quitting your day job, think your idea through.
- Be your own critic - Ask yourself question like: Will your idea fill a demand in the market?, Who would buy it? Why?, How will you product it?, Can you afford to finance it?, Who will be your competitors?, What will prevent them from imitating your product or service?
- Find somebody smart to talk to - Ask for the opinions of experts or those who have a good track record of starting businesses. Discuss with them your idea and see what they think. There might be some angles that you haven't looked into.
- Talk to Potential Customers - Some entrepreneurs may be too emotionally attached to their concepts that they fail to see them through the eyes of their target market. Get hold of would-be patrons and find out what they think of your idea.
- Write a Business Plan - Having a business plan will enable you to see the whole picture. This will be discussed in the succeeding chapters.
"Most aspiring entrepreneurs spend too much time worrying despite having a unique and good concept for their business. The result is that opportunity - that great product or service you are thinking of - is either already taken by another entrepreneur who is more daring than you or it has already outlived its usefulness to the market" says Ricky Cuna, owner of Fiorgelato chain of ice cream stores.
Therefore, once you've thought it through, act on your idea!
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FIND IT! Spotting a great business idea (PART 1)
Posted On Sunday, September 28, 2008 at by Sun JunFIND IT! Spotting a Great Business idea and Pursuing It is Chapter 2 of The Ultimate Guide to Starting Your Own Business by Entrepreneur Philippines.
In this article by Gerry Baclagon, the author highlights where you can look for business ideas and how to distinguish between a good and a great idea.
Where to Look for Business Ideas
- Appraise you Skills - Ask yourself what you can do better than others and how you can turn this skill or talent into a business. Businesses can start from a skill, talent, or hobby that you have. Think of what you love to do and start from there. Going into a venture that you are passionate about sets you up for success because you will have the enthusiasm and drive to make it work.
- Observe what's happening around you - Read or watch the news with a mindset that you're on an idea hunt. By being observant, you will develop the skill to identify market trends, fads, and concepts with strong earning potential.
- Don't re-invent the wheel - Products and services that became runaway winners were usually spin-offs of old one. Don't force yourself to come up with a pioneering business, instead, you might want to concentrate on offering an old product or service that comes with an added value. An example is popcorn. Entrepreneurs have put a lot of twists with it - new flavors, others turned them into a health product by making it fat-free and with less cholesterol.
- Join the bandwagon - Sometimes, for no apparent reason, products and services experience a surge in demand. An example is the surge in demand for face masks during the SARS epidemic. In marketing, this phenomenon is called the snowball effect, which means that if you found yourself on the path of an avalanche, you'll surely be swept along with it.
Ideas can spring from anywhere. However, it takes someone with a good business nose to smell a golden opportunity as it comes. You only need an open mind when keeping an eye on trends so you don't miss out on that winning concept.
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Business Registration Guide - Where else to register?
Posted On Sunday, September 14, 2008 at by Sun JunSome enterprises, by nature of their operations, are required to secure a special clearance, license, or permit from some other government agencies. The following table will guide you about some of the types of businesses that require a special certificate or permit and the agencies that issue them.
| TYPE OF BUSINESS | WHAT AND WHERE |
| Animals and animal products, registration of veterinary drugs and animal facilities | Registration certificate - Bureau of Animal Industry |
| Aquatic animals, importation, Fishpond lease agreement | Permit - Bureau of Fisheries and Aquatic Resources (DA-BFAR) |
| Fertilizer products and registration of pesticide products | Registration certificate - Fertilizer and Pesticide Authority (DA-FPA) |
| Fiber and fiber products processing and trading | Registration certificate; commodity clearance - Fiber Development Authority, (DA-FIDA) |
| Film and television production, export and import, booking, etc. | Registration certificate - Movie & Television Review and Classification Board (MTRCB) |
| Food, chemicals, health related business | Registration certificate – Bureau of Food and Drugs, Dept. of Health (DoH-BFAD) |
| Flour processing, Grains wholesaling & retailing, milling, warehousing, exporting, importing, indenting, packaging, threshing, corn shelling, mechanical drying | License – National Food Authority (DA-NFA) |
| Meat plant accreditation for meat & meat products, slaughterhouse operations | Accreditation certificate, Registration certificate – National Meat Inspection Commission (DA-NMIC) |
| Pawnshop & lending investor | Registration certificate – Bangko Sentral ng Pilipinas, Dept. of Finance (DoF-BSP) |
| Plants & plant products: nursery accreditation Seed certification and phytosanitary certificate | Permit - Bureau of Plant Industry (DA-BPI) Registration certificate – DA-BPI |
| Recruitment or placement agency for foreign employment | Registration certificate - Phil. Overseas; Employment Administration, Dept. of Labor (DOLE-POEA); |
| Recruitment or placement agency for local employment | Registration certificate – Bureau of Local Employment (DOLE-BLE) |
| Schools & educational institutions: Educational institution (nursery, primary, elementary, secondary levels); Tertiary level; Technical-vocational education, training program registration and accreditation | Permit - Dept. of Education (DepEd); Commission on Higher Education (CHEd); Registration and accreditation certificate - Technical Education Skills Development Authority (DOLE-TESDA) |
| Security agency business | Permit – Philippine National Police, Dept. of Interior & Local Government (DILG-PNP) |
| Service and repair shops for: Motor vehicles; automotive & heavy equipment; engine & engineering works, & machine shops; electronics, electrical, air conditioning & refrigeration; office & data processing equipment; medical & industrial equipment; appliances or devices; and private emission centers | Accreditation license: Bureau of Trade Regulation and Consumer Protection, (DTI-BTRCP); DTI regional offices |
| Sugar trading, muscovado converting & trading, processing or manufacturing sugar-based products for export | Registration certificate – Sugar Regulatory Administration (DA-SRA) |
| Telecom business | License – National Telecommunication Commission, Dept. of Transportation & Communication, (DOTC-NTC) |
| Tourism-related projects | Registration and accreditation certificate – Dept. of Tourism (DOT) |
| Transportation: Land transport service; Sea transport service | Land Transport Franchise & Regulatory Board (DOTC-LTFRB); Maritime Industry Authority (DOTC-MARINA) |
| Video production, sales and rental | Optical Media Board (formerly Videogram Regulatory Board), Office of the President (OPOMB) |
Source: http://www.business.gov.ph (Philippine Business Registry)
Business Registration Guide
Posted On Friday, September 12, 2008 at by Sun JunThe following are the government agencies that a start up business needs to register with as provided by the Philippines Business Registry website.
| AGENCY | WHAT |
| Department of Trade and Industry (DTI) | This is where you register if your enterprise is a single proprietorship. The agency will issue a certificate of registration of business name. |
| Securities and Exchange Commission (SEC) | If your enterprise is a partnership or a corporation, this is where you will register. It will issue a certificate of registration. |
| Cooperative Development Authority (CDA) | If your set-up is a cooperative, register with this body. The agency will issue the certificate of registration. |
| Local Government Unit (LGU) | You register with the municipality or city where you will set up your business. This office will issue the business permit. |
| Barangay Hall | You register with the specific barangay in the municipality or city where you will operate your business. This office will issue the barangay clearance. |
| Bureau of Internal Revenue (BIR) | You register your business with this office and apply for your business’s taxpayer identification number (TIN), registration of books of accounts, authority to print |
| Social Security System (SSS) | You register your business as an employer, yourself as a self-employed or as employee, and your workers as employees. This office will issue an SSS number for your business, for yourself, as well as for your workers. |
| Department of Labor and Employment (DOLE) | If you employ five workers or more, register your business with this agency. The DOLE is asked to promote gainful employment opportunities, protect workers and promote their welfare, develop human resources, and maintain industrial peace. |
| Home Development Mutual Fund (HDMF) | RA 7742 requires all SSS members earning at least P4,000 a month to register with this agency. HDMF administers the Pag-Ibig Fund. |
| Philippine Health Insurance Corp. (PhilHealth) | The New National Health Insurance Act (RA 7875) as amended by RA 9241 requires all employers of the government and private sectors and their employees to register with this agency. PhilHealth manages and administers the government health care system. |
THINK IT (Part 2) : Portraits of an Entrepreneur
Posted On Monday, September 8, 2008 at by Sun JunHere's traits no. 8 to 13 of Portraits of an Entrepreneur from The Ultimate Guide to Starting Your Own Business.
You can access the first part of this article by clicking on this link "Start Your Own Business"
8. Entrepreneurs are persuasive and know the value of networking.
Entrepreneurs are leaders in their community of employees, customers, creditors, and suppliers. They are able to influence people on their way of thinking and of doing things.
Most entrepreneurs join organizations and clubs for the networks they provide.
9. Entrepreneurs are true to their word.
Entrepreneurs know how to take responsibility. They have word of honor. This makes you credible and when you are credible, people will come to you.
10. Entrepreneurs take calculated risks.
Entrepreneurs have a moderate tolerance for risks. They don't always take the easy path.
11. Entrepreneurs demand quality and efficiency.
It is easier to convince people if your products are of high quality.
As for Gillie, she used quality to distinguish her bread from all the other breads in the neighborhood.
12. Entrepreneurs are systematic.
Entrepreneurs have a plan and they monitor it closely. They don't just get into risky deals without calculating the risks.
13. Entrepreneurs are confident.
Tan says his confidence did not spring from knowing he had a special talent or skill, but because he could see a strong earning potential from his concept. Gillie says her home-based baking int he beginning was not only to hone her skills but also to develop her confidence in managing a business.
"It's all a matter of attitude. Lack of capital is not a barrier to entrepreneurship. Sometimes having a lot of capital can be a barrier. Starting small and building capacity and confidence in the process is the spirit of entrepreneurship. The country's economic standing is not an obstacle either. Remember I started my business in 2001, at the height of the asian crisis." - John Tan of Chef's Pride
THINK IT: Assessing your Entrepreneurial Inclinations (Chapter 1)
Posted On Sunday, September 7, 2008 at by Sun JunTHINK IT: Assessing Your Entrepreneurial Inclinations is chapter 1 to The Ultimate Guide to Starting Your Own Business.
Author Veronica C. Uy takes Gillie Sing, owner of Pan de Pidro, and John Tan of Chef's Pride as examples and analyzes what makes them entrepreneurs.
Here are some traits shared by many success entrepreneurs:
(Portraits of an Entrepreneur)
1. Entrepreneurs have passion.
John Tan said that those making it in business do so because they like what they do. He adds that this should really be the first and foremost trait that a businessman should have. If you don't have an interest in what you're doing, you cannot make it big.
2. Entrepreneurs are willing to Learn and Experiment.
Gillie Sing took a break making course from the Techonology Livelihood Resource Center and practiced at home for months before establishing her bakery.
Myrna Co of the UP Institute for Small Scale Industries says entrepreneurs talk to anyone who can help, be it experts, competitors, suppliers, or prospective customers. "They are not shy about their ignorance," she says.
3. Entrepreneurs are willing to work hard.
John Tan says "There's no substitute for hard work ... Nobody but you, who conceived of the business, can give your 100 percent to it."
Gillie stayed up until 4am in the morning preparing the orders during the holidays. She even asked her husband to deliver them personally.
4. Entrepreneurs are persistent and patient.
Many successful entrepreneurs have tried and failed before but they never give. Instead they learn from their mistakes. They may adopt a new business but apply a different strategy, or adopt a new strategy and apply it on the same business. They try and try until they find the right mix.
5. Entrepreneurs have a vision.
Having a vision provides direction for your business. It can be equated to setting goals. It's easier to have a business plan before you start your business.
6. Entrepreneurs are creative and innovative.
Although who have a plan, it's important to be flexible and adjust depending on the market.
Gillie relates an incident where she tried to raise the price of her pan de sal (the staple breakfast bread in the Philippines, most sellable) but found out that raising the price of this particular bread brought with it a consumer perception classifying the breads she sells as expensive. To get around this, instead of raising the prices of pan de sal she raised the prices of her other breads, which doesn't seem to bother her customers a bit.
7. Entrepreneurs seek opportunity
Entrepreneurs grab opportunities that come their way because they know that it might not come again, or if it did, not for a long time.
Portraits of an Entrepreneur will be continued on the next post (tomorrow) ...
In the meantime I leave you with this quote from Myrna Co.
"Many entrepreneurial traits are inborn, but it doesn't mean they're active. Some are sleeping or latent. To some degree, we all have what it takes to be an entrepreneur, but training and education can play a part in developing these traits that are somehow inactive."
Ultimate Guide to Starting Your Own Business: Introduction
Posted On Friday, September 5, 2008 at by Sun JunIt's ABOUT TIME!
If you've been waiting for the perfect time to start a business, chances are it wouldn't come.
NOW is the time to do it.
Journey with me as I take you through the articles in the book entitled "The Ultimate Guide to Starting Your Own Business" by Entrepreneur Philippines.
Watch out for this series every week.
Let's start our businesses together!
