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Many businesses come from the efforts of an entrepreneur wanting to break through. With the many methods in setting up a business, there are many possibilities to innovate, so it stands out from the crowd. In the Philippines, you can start from a sole proprietorship, corporation, or through simple selling.
How do you start a business? You start by determining the business you want to run one day. Then, be specific about the product or service you will offer your customers and market them according to their needs. Once you find your market, your business can make a modest profit from there. Check out these four ways to start your own business!
Decide Your Business Structure
Knowing your structure is the first step to setting up your business. For countries like the Philippines, there are two methods, namely Sole Proprietorship and Partnership. Each method has its advantages, disadvantages and risks you will face as it goes. In addition, it determines how the business will operate once all the paperwork is done.
For Sole Proprietorship, all assets are under your control. However, it also includes losses your business will experience at one point or another. It means that your decisions determine your business's outcome, whether profit or loss. On the other hand, a Partnership involves multiple people running the business. Through this method, the business relies on an agreement set by the individuals for the amount of contribution one gives. It can be limited or unlimited depending on the set terms and conditions.
Gather Your Funding Sources
Secondly, every business runs on a source of funds, and it is the lifeline of every business. You can fund the business with your savings, a loan, or investors. As a rule of thumb, if your business expenses are more than what you can afford in your daily activities, do not use your savings. If you have a job, keep your funds and run the business part-time instead.
If you decide to borrow money with a loan, it depends on your projected financial situation. Once you have enough money, place them in one specific account with a passbook and checkbook for easy tracking and disbursement.
Apply For Licenses And Permits
Next, all businesses should have their licenses and permits ready before the business operates. When starting a business in the Philippines, it is a must to have all permits to know that your business is legitimate. Having no documents on hand means that your business may run into problems one day.
The first permit most businesses can acquire is the DTI business permit. Once you have the document, you can gather secondary documents such as the Tax Identification Number (TIN), Mayor's Permit, Philhealth, Pag-Ibig, and SSS permits. Furthermore, you may need to get special permits depending on the type of business you will run.
Market Your Business
Lastly, market your business according to the customer base you have researched. It is important to cater your business to the desired audience. You can make buyer personas to segment your business for a more personalized customer experience.
With the availability of the internet, you can target your ads on social media, use SEO, do link building, and have a website for your business. In addition, you can still use traditional marketing methods to get a broader reach. It depends on the business strategy if the marketing works in your favor.
Starting a business is a big investment as you decide your business structure, source of funds, and marketing. Along the way, you apply for licenses and permits to run a legitimate business. Once you spend enough money on setting up your business, you will now have a way to earn money through your efforts.
Angelo Castelda works as a contributor for a news magazine in Asia. He loves to learn and understand diverse cultures and aims to share through his writing his experiences around the world.