Many Filipinos dream of doing business in the Philippines. But with so many excuses or worries holding them back, a dream is all that it remains. With the right mindset and enough information, you can change this.
It’s true what they say. At the end of the day, it is not what you did but what you did not do that will leave you with regrets. So go out and start taking risks. Make things happen. For starters, learn more about the things that may be holding you back.
Inconvenient Business Registration and Licensing Processes
Business registration and licensing processes can be arduous. Many Filipinos who want to start a business are discouraged by what they perceive as a difficult and slow bureaucracy in the Philippines. To register a business, you will have to complete registration processes from the Mayor’s Office, DTI, Pag-ibig, PhilHealth, SSS, BIR, SEC (for partnerships and corporations), and other government offices that may be relevant to the business you plan to run.
Those who have enough funds just choose to hire a professional firm to take care of the process for them. Most small business starters do not have the money for this, or are simply unaware of their options. Many aspiring entrepreneurs are not aware that the Philippine government has already come up with a more convenient one-stop-shop business registration system to address the problem. Relatively speaking, registration and licensing processes are only a small part of the whole picture. Do not let it keep you from achieving the greater things.
The Complex Philippine Tax System
The taxation system can be confusing for many Filipinos. Tax may be a burden, but it is also the lifeblood of the country. Everyone, whether a professional or business owner, should properly comply with tax requirements. Many people are not properly informed of the necessary processes though, making this easier said than done.
Even existing owners find the burdensome procedures hard to comply with. Small business owners usually cannot afford to hire an accountant or bookkeeper to help them comply with all the taxation and accounting requirements of the BIR. The whole process can be intimidating for Filipinos who have zero background on business. This leaves many people brushing their entrepreneurial dreams aside and just settling with employment. The latter, after all, lets them leave everything to the HR department.
You have to remember though that as complex as the taxation system may be, the difficulty you will encounter is nothing compared to the consequences of not working toward your dream. Your older self will have to live with regret, and you will be spending the greater part of your adulthood in a job you don’t love.
“Employment Feels More Secure”: The Entrepreneur vs Employee Mindset
One of the many things that keep people in the world of employment is the promise of secure income. Having your own business may lead to unlimited income opportunities, but it takes a lot of time and hard work to get to this point. Worse, there is no guarantee that you would even reach this point at all. Many businesses end up failing and losing money in the end. While others take years before they could break even, and even more years to reach profitability.
Entering the business world is a true risk. It is unlike employment, where you are guaranteed payment for the work you do regardless of whether the company is earning profits or not.
But with great risks come the possibility of even greater profits. Many great entrepreneurs had to battle through many failures before they were able to make their wildest dreams come true. If you wish more than just daily drudgery and minimal income for yourself, you should be willing to get out of your comfort zone and put in the hard work.
And make sure you are always willing to learn so you can keep moving forward.
Lack of Sources of Capital
One of the major factors that keep Filipinos from starting a business is the lack of financial capital. Unless you are a service provider, you would most likely need a significant amount of money to acquire the necessary equipment, inventory and machinery to get your business rolling, not to mention the overhead costs you will have to incur monthly, as you would have to pay for utility, rental fees, and salary for your own employees.
Many aspiring entrepreneurs do not have the property to serve as collateral needed for the more traditional forms of obtaining capital, such as getting a loan from the bank. Some Filipinos just decide to leave the country and work abroad in the hopes of earning more and saving enough money to start a business in the future. These days, this is no longer necessary, as there are many ways you can pool together resources for your business.
You can try pitching your business to start up incubators that are willing to provide funding, should they find your idea worthwhile. You can also look for financial partners, and simply offer your time and skills as you serve as the industrial partner.
Lack of Time
For some people, it is the lack of time that is keeping them from starting a business. For many people, not having a monthly income as they wait for their business to kick off is not an option. This is especially true for breadwinners. The great news is that you can go for businesses that do not require too much time.
You can explore the many passive income opportunities available. You can try trading and real estate. If you get a thrill out of taking risks, the former would work for you. But if you prefer a more secure option, you can invest in real estate instead. You can explore your options with commercial condo leasing.
A commercial property offers greater cash flow per square foot. Compared to a residential condo unit, commercial leasing can let you earn more income. Such leases usually entail longer period, ensuring a more stable cash flow for you, as there are less chances of you having to deal with vacancies.
The location of commercial condo spaces is also a goldmine. Condominium properties are primed for their stellar locations, and are often situated in city centers or key business districts. You are guaranteed a smart investment, as the space is conducive for attracting customers.
Many aspiring Filipino entrepreneurs fail to get started because of the factors that hold them back. But come to think of it, no one is ever fully ready. The key is to just jump right in and learn along the way. Only actual experience can have you truly learning and succeeding in the end.