Being a beginner business owner in the Philippines can be challenging at times. Still, with the right idea and strategy, an entrepreneur can turn a simple idea into a powerhouse of productivity. We will be exploring 15 business tips for beginners in the Philippines for those thinking about starting a business in the Philippines.
15 Business Tips For Beginners In Philippines
Build For The Long Term Business
Statistically speaking, a business can take an average of two to three years before it becomes profitable. Of course, these statistics vary depending on the industry, but the average tends to be two to three years in most cases. Thus, if you are looking for business tips for beginners in the Philippines, perhaps one of the most vital facts to know is that many businesses take time.
There are some businesses. However, that does not fall under this umbrella. Some businesses, thanks to technology, have become very easy to start with very little capital; in fact, we recently spoke about small business ideas in the Philippines with low capital, which I’ve attached for your reference if you are looking for some extra information.
Do Your Own Research When Starting A New Business
The following business tip for beginners in the Philippines is on the subject of research, as this is a topic that can sometimes be overlooked when starting a new business in the Philippines.
But why is research so important, and why should you spend your free time researching? It’s a great question, and the answer is to do with time, effort, and money. Research in the long term can save you plenty of time, tonnes of effort, and a lot of money. A few hours of research can save you hours of unnecessary work and, in some cases, thousands of pesos
However, this is slightly more than just research. In this business tips for beginners in the Philippines, we are explicitly talking about research you do yourself and not research that is picked up from others.
In other words, there is a lot of misconceptions about business, and there is a great deal of outdated information, so when looking at business tips for beginners in the Philippines, always do your own research extensively.
Test The Water Before Starting Your Business In The Philippines
Testing the water is an essential part of any new business. Essentially this is the process of trial and error with new products, services, and operations. This is especially important if you are starting a business with innovation, as you may need some critical data from the market before launching your business completely.
This is a business tips for beginners in the Philippines that we have used here at Filipino wealth. We spoke about specific topics over 16 weeks and ran similar tests talking about different issues to see how interested our readers were in each article.
We found that the majority (61.4%) of our readers were more interested in business advice tips and ideas than any other topic from testing the water. We also found that large list posts performed better on the website (31.9%) than other posts, which allowed us to move into a new business direction.
Build An Emergency Fund Of 3-6 Months
Do you need an emergency fund to start a business in the Philippines? You do not need an emergency fund; however, similar to personal finance, owning an emergency fund can be valuable.
As we mentioned at the beginning when we spoke about the first business tips for beginners in the Philippines, businesses can sometimes take several years on average before they become profitable. Thus, an emergency fund is often a very wise decision.
Be The First Or Be The Best In Business
There are many rules in business, and one of these old tales is that in business, you even need to be the first or be the best. This is not always correct. Some businesses quite happily succeed with being a medium-sized business; however, aiming to be the first or be the best in business is often a recommended goal.
Many of us start a business to have more control over our lives and how we spend our free time, and if you are looking to have more free time in your life as a business owner. Likely, you will need to allow others to run the business for you.
To be in this position where you can successfully outsource tasks and roles of the business, you often need to be the first or be the best in your industry.
Innovation Is Key To A Successful Business In The Philippines
What is innovation? Business innovation is a product service or procedure that is valuable to others in a way that has never been seen before. Your business may not need to be revolutionary to be successful in the Philippines. Still, it needs to be different. This difference can include handling business or service you provide that allows you to stand out.
Suppose you are starting a YouTube channel, and on your channel, you are talking about fitness. There are thousands of other channels discussing fitness, so why do some channels stand out and dominate the industry while others barely receive any views? Because they are different either in their presentation personality or some other aspect of their YouTube video.
This difference may be just the right level of innovation that they need to boost their YouTube channel. This is an example but can be applied to many different businesses and industries across the Philippines.
Think Carefully About Family Involvement With A Filipino Business
Filipino culture is all about family but is starting a Filipino business with family a good idea? Just like every business opportunity starting a business in the Philippines with family members has pros and cons, but in my experience, it is often more challenging than it is beneficial.
Over the years of traveling around Asia and specifically the Philippines, I have made many entrepreneurial friendships. I developed a company with a Filipino who started a cafe business with her mom. To cut a Long story short, the mom lost the business money by not charging customers the correct amount and giving away freebies.
This happened so frequently that customers expected and demanded freebies as this was now routine practice. It was challenging for my friend to deal with this situation as it was her mom.
Suppose you are thinking about starting a business in the Philippines with your family. In that case, it may be an excellent idea as there are many successful family-owned businesses in the Philippines. Nonetheless, every family member should agree upon the goal and understand business is separated from personal and family matters.
Focus On The Maths Or Hire An Expert
The mathematics of business is not the most enjoyable. Still, it is perhaps one of the essential parts of a company, as, without positive cash flow, there is no successful business.
When looking at these business tips for beginners in the Philippines, we have also added the option of hiring an expert, which is a beneficial option for those who are starting a business on a larger scale. Here are a few cash flow and financial questions you may need to discover before launching your business.
- Are There Any Additional Fees Or Extra Charges I Need To Add?
- Are There Any Maintenance Costs That I Need To Investigate?
- How Much Money In Total Will This Business Cost Me?
- How Much Income Will I Put Towards Marketing The Business?
- How Much Profit Can I Make Per Item Or Per Service?
- If I Have No Customers For The Next Six Months, Can The Business Survive?
These are some basic questions regarding cash flow, but they are critical when starting a new business in the Philippines as a beginner.
Understand The Basics Of Business In The Philippines
Whether big or small, starting any business takes skill and knowledge, and the latter is what is essential in this business tips for beginners in the Philippines.
This tip is not so much about business in general (even though it will help) but more specifically, understanding the basics of your specific industry, product, or service. For example, you’re selling coconut oil. Then it is wise to know why customers are using this, the range of costs from suppliers, upselling options, and how it’s used.
The more you know about a specific product or how your industry works, the easier it will be for you to make informed and calculated decisions to grow your business in the Philippines.
Working Smarter Will Always Beat Working Harder
The phrase work smarter has been around for many years now, and in today’s technological world, this phrase is more accurate than ever.
It is sometimes difficult to work smarter and not harder in traditional businesses, as many traditional businesses succeed based on hard work. Even though this is also true for online businesses, working smarter online is often more successful than working smarter on traditional companies.
Many Parts Of Business Is Pure Psychology
Think about the last five items you have purchased. Perhaps it was a toothbrush, a new car, a coffee at Starbucks, or even a new TV. Why did you buy these items? Was it a need for these items, or was it a want? Whatever the answer is behind your desires is pure psychology.
Business psychology is a fascinating topic. If you are looking for business tips for beginners in the Philippines, it is a subject you may find interesting.
Why do so many companies spend thousands (and in some cases millions) of pesos designing the perfect packaging or creating the ideal marketing campaign? Because they know that our emotions on a fundamental level are why we buy or don’t buy. Understanding this topic will allow you to make the most successful decisions about your business.
Utilize The Power Of Affiliate Marketing In The Philippines
Affiliate marketing is a huge business. If you are looking to make money online in the Philippines, affiliate marketing is one of the best options available. Please take a look at our complete guide on how to start affiliate marketing in the Philippines for more information on how you can start to earn money through this process.
But looking at business tips for beginners in the Philippines, a person could use affiliate marketing to help your business grow.
Essentially affiliate marketing is word of mouth but online. A person who is often an influencer or somebody who has traffic to their website or YouTube channel discusses his reviews and recommends a product or service. In return, the affiliate will receive a small commission which tends to be between 5 to 10%.
Start Small But, Target Your Beginner Business
There are many different small business ideas in the Philippines. One of the essential business tips for beginners in the Philippines is to start a small business targeted at a specific audience.
Suppose you have a YouTube channel. For example, it’s often known that you will have more success targeting a Filipino audience than a global audience. This is not because you are Filipino but because the audience is more specific. The same is valid for when you have a particular topic.
The example above can be applied to other businesses. So if you are looking to start a small business in the Philippines, it’s often a wise decision to have a specific type of person who is likely to become your customer as this allows you to narrow down your niche. The key is not to go too narrow.
Cross-selling And Up-selling Is Paramount In The Philippines
These are the processes of offering something extra. Think of Jollibee. For example, they may ask if you would like a large meal. This is Up-selling. Cross-selling is offering something else with your product. For example, you have just bought a hamburger… would you like to have a coke with your meal?
One interesting fact about businesses in the Philippines is that larger firms are not always the most profitable. The most profitable companies are the ones that can monetize the best.
Both methods are great ways to increase your revenue and offer extra services to your customers. Plus, new customers often welcome these as they discover your business.
What’s Better For Your Business, Quality Or Quantity
The last business tip for beginners in the Philippines is on the subject of quality or quantity. Which is best for your business? Most people say that quality will always beat the quantity, but it depends on the type of business.
We have used YouTube as an example for many of the points we have discussed today as most of us use YouTube daily, and thus it’s an excellent model to use YouTube again for another example…
Some YouTubers succeed by producing content once a week, which is longer and of high quality; many hours of editing have gone into their final video. Others choose shorter quantity videos and publish more on the platform. This does not mean that shorter videos are less quality or that longer videos result in low quantity, but it shows that both methods can work.
This is the same for other types of businesses. Some businesses succeed in selling cheaper units of low quality; for instance, some customers may only need a cheap battery that they will use for a couple of weeks while they’re on holiday. Other businesses sell more expensive units which are high quality and are built to last. Both businesses can be successful in their own right.
When starting a business in the Philippines, it’s best to look at the options available and decide which business type is right for you. Are you somebody who will try to target both quality and quantity, or will you focus on the quantity first, or perhaps you will build a business on quality?
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