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30 Innovative Business Ideas to Start in the Philippines in 2024

Do you want to start your own business in the Philippines but want to stand out from the crowd? Our list of 30 unique and profitable niche business ideas for 2024 might be just what you need. Explore emerging opportunities in niche markets ranging from sustainable and environmental products to cutting-edge services. Motivate yourself and take the first step toward realizing your entrepreneurial dreams!

• Urban Farming Urban farming is an increasingly profitable business opportunity that aligns with the growing interest in sustainable living. With the ability to cultivate organic produce in small spaces, this industry provides an innovative solution for meeting the demand for fresh, locally-grown produce. Get started on your entrepreneurial journey today and reap the benefits of this emerging market!
• Event Planner In today’s world of social media, people crave unique experiences to share online, and event planning provides the perfect opportunity to create and organize unforgettable occasions. With a knack for creativity and attention to detail, you can tap into this growing market and turn your passion into profit. Start your event planning business today and let your imagination run wild!
• Mobile Car Wash As the busy lifestyle of most Filipinos continues to leave little time for car maintenance, mobile car washes are becoming increasingly popular. These services offer convenience and time-saving solutions for car owners who want to keep their vehicles clean without the hassle of going to a car wash. Join the rising trend of mobile car wash businesses and cater to the growing demand for efficient and convenient car maintenance services.
• Pet Grooming and Boarding Filipinos are known for their love for pets, making pet grooming and boarding services a lucrative business in the country. By providing high-quality services for pet owners, you can tap into the growing demand for pet care and establish a profitable business. Take advantage of this opportunity and start your own pet grooming and boarding business today.
• Laundry Service With the increasing urbanization and busy lifestyle of most Filipinos, laundry services are in high demand, providing a convenient and time-saving solution for people’s laundry needs.
• Home Cleaning Service With the fast-paced lifestyle of Filipinos, home cleaning services have become increasingly popular. Providing a convenient way for homeowners to keep their homes clean and organized, this business has high demand and profitability.
• Personal Fitness Trainer As health and wellness continue to be a top priority for many Filipinos, the demand for personal fitness trainers is on the rise. These professionals offer personalized fitness programs and expert guidance to help clients achieve their fitness goals safely and effectively. With a focus on promoting a healthy lifestyle, a career in personal fitness training can be both fulfilling and profitable.
• Food Delivery Service As more and more Filipinos turn to online shopping, package delivery services have become essential in ensuring that packages are delivered safely and efficiently. Starting a package delivery service can be a profitable business in the Philippines .
• Mobile Spa Indulge in a luxurious spa experience without leaving your home. Mobile spa services offer a range of treatments, from massages to facials, all delivered by highly qualified professionals. With flexible scheduling and personalized services, it’s the perfect way to relax and rejuvenate.
• Business Consulting Business consulting services provide expert advice and guidance on various aspects of business operations, such as strategy, marketing, and finance, and are in high demand among businesses looking to improve and optimize their performance.
• Personalized Gift Shop With the Philippines’ culture of gift-giving, starting a personalized gift shop is a profitable niche business that offers unique and customized gifts for various occasions.
• Boutique Fitness Studio With the growing awareness and importance of health and fitness, boutique fitness studios have become a sought-after choice, offering tailor-made fitness classes and an individualized experience for clients.
• Specialty Coffee Shop As people’s taste for coffee becomes more refined, specialty coffee shops are gaining popularity, providing a unique and high-quality coffee experience for customers who value exceptional coffee.
• Artisanal Bakery With the growing demand for organic and artisanal food products, an artisanal bakery is a profitable business that provides high-quality baked goods made from scratch.
• Healthy Juice Bar Amid the surge of health-conscious consumers, juice bars are gaining traction for offering an array of freshly squeezed and nutrient-packed blends to nourish and invigorate patrons.
• Mini Groceries Mini-groceries are becoming increasingly essential, offering a convenient and accessible shopping experience for customers who prefer to shop for groceries in their neighborhood.”
• Mobile Repair Shop With the rise of mobile phone usage, mobile repair shops are in high demand, providing quick and reliable repair services for various types of mobile devices.
• Personal Styling Services Personal styling services are gaining popularity as people seek customized fashion advice and styling services to enhance their personal style. These services provide a personalized approach to fashion, considering individual preferences, body types, and lifestyles to create a unique and stylish wardrobe for clients.
• Party Supply Shop As Filipinos love to celebrate and throw parties, party supply shops have become an essential part of event planning. They provide a wide range of party supplies and decorations for different occasions, making it easy for customers to find everything they need in one place.
• Shoe Repair Shop As shoes are an essential part of everyone’s wardrobe, shoe repair shops are becoming increasingly popular, providing repair services for various types of footwear, including leather shoes, sports shoes, and other types of shoes. These shops are convenient for customers who want to restore their old or damaged shoes rather than buying a new pair, which can be costly.
• Vintage Clothing Shop Vintage clothing stores are growing in popularity because they offer customers unique and fashionable clothing items that are not commonly found in traditional retail stores.
• Home Cleaning Services Home cleaning services are in high demand, providing homeowners with professional and reliable cleaning services for their homes.
• Toy Store With the rise of parents seeking educational and developmental toys for their children, toy stores are becoming a popular source for various age-appropriate toys. These stores offer a wide selection of toys that cater to different interests and learning styles, making it easy for parents to find the right toy for their child’s development. Additionally, toy stores often provide a unique shopping experience with knowledgeable staff and hands-on displays that allow children to explore and test out toys before purchasing.
• Plant Nursery As more and more people are becoming interested in gardening and indoor plants, plant nurseries are growing in popularity. These stores offer a variety of plants, gardening tools, and supplies for customers who want to enhance their living spaces with greenery. With the rise of indoor gardening trends, plant nurseries have become a go-to source for plants, from small succulents to large indoor trees. They also provide expert advice on plant care, making it easier for customers to grow and maintain their home gardens.
• Fitness Equipment Rental The demand for fitness equipment rental services is rising as customers seek a budget-friendly and convenient option to access fitness equipment without the need to buy it outright.
• Language School As globalization and internationalization continue to rise, language learning has become increasingly important. To meet this demand, language schools are becoming popular, offering language classes and courses for students of all ages to learn a new language or improve their language skills. These schools provide a structured and immersive environment that allows students to learn the language effectively, and they often offer a range of classes and programs tailored to different learning needs and goals.
• Food Hall Food halls are a modern approach to food courts, and they’re becoming increasingly popular due to their diverse and unique dining experiences. They bring together various food vendors under one roof, offering customers a wide range of food options to choose from, including local and international cuisines. This allows customers to enjoy different types of food in one place, making it an ideal spot for foodies and groups with varying tastes. Additionally, food halls typically offer a stylish and trendy atmosphere, making it a great hangout spot for friends and family.
• Board Game Cafe Board game cafes are gaining popularity among game enthusiasts and casual players alike, offering a unique social experience where customers can gather with friends and family to play board games while enjoying food and drinks. With a wide selection of board games available for play, from classic games like chess and Monopoly to modern favorites like Settlers of Catan and Ticket to Ride, board game cafes provide a fun and inclusive environment for all levels of players. In addition to board games, some cafes also offer other tabletop games, such as card games and role-playing games, as well as organized events and tournaments for the community to participate in.
• Plant-based food products Plant-based food products are a great niche business idea in the Philippines in 2024, as more and more people are becoming health-conscious and environmentally aware. Plant-based diets are gaining popularity due to their many health benefits, and there is a growing demand for plant-based alternatives to traditional meat and dairy products.
• Personal concierge services Personal concierge services can be a lucrative niche business idea in the Philippines . These services can range from running errands, booking travel arrangements, organizing events, managing household tasks, and more. With the busy lifestyle of many people, personal concierge services can be a great solution for those who need assistance in managing their daily tasks.

Get access to 1000 Business Ideas and How to Start Them!

Discover Endless Business Inspiration on TikTok!

Unlock a world of innovative business ideas and strategies on TikTok! Explore a treasure trove of entrepreneurial wisdom, success stories, and industry insights. Follow us for a daily dose of inspiration. 🚀📈 #BusinessIdeas #Entrepreneurship

The Philippines offers a diverse range of niche business opportunities for entrepreneurs who are willing to invest their time and resources. From health and wellness to sustainable fashion, and from eco-tourism to personal concierge services, the possibilities are endless. It’s essential to conduct thorough market research to determine the feasibility and profitability of your chosen niche. But with the right strategies and a solid business plan, any of these 30 unique and profitable business ideas could be the key to your success in the Philippines market.

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How To Start a Business in the Philippines: The Complete 15-Step Guide

Here’s the cold harsh truth about employment:

It’s a rat race and even if you win it, you still end up a rat.

A rat with no control over his schedule, income, and projects to work on.

I’m not saying everyone should leave their jobs en masse. Some people consider their jobs as a vocation and can’t imagine doing anything else.

But for others who are yearning for more freedom and feel stuck at their current jobs, there’s a great alternative–entrepreneurship.

The best part is you don’t have to start big. Even with a small capital, you can open a business in the Philippines and make it profitable through smart planning. This article will teach you exactly how.

How To Start a Small Business in the Philippines With Small Capital: A Step-by-Step Guide

Great things start from small beginnings.

When they started their businesses around WWII, Max’s Restaurant and National Bookstore were deprived of advantages. But with sheer persistence and great strategies, they eventually became household names.

The same is true for almost all the famous brands we recognize today.

Therefore, whether you want to supplement your current income or become your own boss someday, the only way to go big is to start with a small business.

Small business or small-scale enterprise is one that hires few employees and has a relatively smaller asset size.

In order for a small business to qualify for government assistance and incentives, it should have capital assets amounting from Php 3 million to Php 15 million and with employees numbering from 10 to 99 workers 1 . Anything below these levels is classified as microenterprise while businesses that exceed them are known as medium- to large-scale enterprises.

However, the consensus today is that micro, small, and medium enterprises all fall under the general term “small business”.

By starting a small business in the Philippines, you as the owner will pretty much wear several hats–from marketing and finance to production and management.

Hence, it’s crucial to arm yourself with knowledge about all these fields especially at the beginning when you still don’t have the means to hire specialists.

This article will teach you how to start a business in the Philippines with a small capital, no business experience, and little or no college education.

Let’s get the ball rolling.

Step 1: Know your “Why.”

Holocaust survivor Victor Frankl wrote in his book that “those who have a ‘why’ to live can bear with almost any ‘how'” .

Starting a business may not be as tragic as a Holocaust but it is certainly not a walk in the park either.

On one side, owning a business gives you unlimited opportunities to earn money , be your own boss, explore your creativity, help others, and build a legacy.

But there’s another side to the entrepreneurial coin: the risk of failure.

In addition to that, starting a business in the Philippines where unpredictability abounds will push you to go beyond your comfort zone. Success won’t come easily. Long hours of work, missed family times, and sleepless nights will hound you especially during the early stages.

And did I mention you’ll be juggling a lot of hats so you’ll be responsible not just for the welfare of your family but also for the livelihood of your own employees?

So, before taking the plunge, test the water first.

If you only want extra income , don’t resign from your job and look for a part-time job instead. But if you want complete control of your destiny, then it’s time to plan your exit. It doesn’t matter if you take baby steps; what’s important is you carefully weigh the risks and rewards and then make a decision based on your own judgment.

If you get discouraged, look at yourself in the mirror and ask the big “Why?”

As long as you know your purpose for starting a business, you can weather any challenges that life may throw at you.

Step 2: Understand What It Takes To Succeed in Entrepreneurship

You don’t need an MBA to start a profitable business in the Philippines.

However, life-long learning is at the core of successful entrepreneurship. You learn best from your own failures and the mistakes of those who came before you.

Another way to hone your knowledge is to take free or paid training courses designed for beginners. For example, the Philippine Trade Training Center (PTTC) and the U.P. Institute for Small-Scale Industries offer “start your own business” programs that will teach you basic principles of running a business.

We also recommend the following training centers/courses:

• Businessmaker Academy (1503A West Tower, Philippine Stock Exchange Building, Exchange Road, Ortigas Center, Pasig City).
• TESDA Online Entrepreneurship Training Program .
• Ultima EntrePinoy Center for meat processing, baking, and other food business courses (Nutrition Foundation of the Philippines Building, 107 E. Rodriguez Sr. Ave., Quezon City).
• Department of Trade and Industry Negosyo Center – Seminars and Workshops .

Entrepreneurial success takes more than just technical knowledge. Your business can only grow to the extent that you do . Hence, it’s important to also invest in personal development if you want your small enterprise to prosper.

According to Management Systems International 2 , there are attributes common among successful entrepreneurs that led them to the success they have today. These characteristics can be grouped into three clusters–Achievement, Planning, and Power.

Achievement cluster

• Opportunity-seeking – the ability to see opportunities and seize them as they come. For example, when people from your hometown are craving for donuts and there’s no single donut store that has been put up yet, will you be quick to act on this opportunity? An opportunity-seeking business person certainly would.
• Persistence – a trait that will allow you to stick to your vision even in the face of criticisms and failures.
• Commitment to contract – which means getting the job done on time and honoring your promises without any excuses.
• Risk-taking – or more specifically, taking calculated risks to minimize potential losses. A good business person doesn’t just invest in any venture without carefully studying the market and identifying flaws in the business model.
• Demand for quality and efficiency – a characteristic of great entrepreneurs who uphold excellence in everything they do and don’t just settle in a “puwede na ‘yan” attitude.

Planning cluster

• Goal-setting – a skill that enables you to clearly define your goals and withstand the pressures and struggles of today in the name of achieving these goals.
• Information-seeking – a quality you need in order to come up with informed decisions and calculated risks. When the future of your business is at stake, you gather only the best information from all the best sources–suppliers, experts, competitors, banks, and even government agencies.
• Systematic planning and monitoring – while planning gives you the opportunity to choose the right supplies, manpower, and materials to achieve your goals, monitoring allows you to fine-tune your plan to bring you closer to achieving your goals.

Power cluster

• Persuasion and networking – if you know how to leverage the power of persuasion, you can literally make everything you want to go in your favor: from persuading the bank to give you a loan to convincing your buyers that your product is worth a try.
• Self-confidence – if you don’t believe in yourself and your ideas, then no one else will. You can’t succeed in any undertaking if you have a deflated ego. Believe in your dreams and everything else will follow.

Step 3: Come Up With a Business Idea

Every successful business starts with one idea.

The problem, however, is many people think that a million-peso idea only shows up in a select few; it’s either you have it or you don’t.

While it’s true that some successful entrepreneurs got their ideas by accident, they are exceptions rather than the rule. For most of us, a winning business idea won’t magically fall into our laps so we have to look for it ourselves.

To start generating a list of business ideas, ask yourself the following questions:

What are the things you’re interested in?

Running a business can be tedious in the long run so you might as well choose a business that is in line with your interests.

Don’t worry if the idea has already been taken. Your goal, after all, is not to be original but to explore an already existing idea you’re interested in, turn it on its head, and make it better than what’s already out there.

Instead of trying too hard to be original, find ways to dominate an already existing market by offering better, cheaper, or faster products or solutions.

Do you have pain points in your life or problems that bother you that you wish could be solved?

Famous entrepreneur and Internet personality Gary Vaynerchuk believes that the best way to find the next great business idea is to stop looking 3 .

Instead, go through the daily grind of life with an open mind so that you can zero in on things that bother you when you encounter them. Chances are, you’re not the only one experiencing the same problem so if you figure out how to fix it, then you have a potential business idea.

The key here is to always have a problem-first approach; after all, the world doesn’t need more products but more solutions to their everyday problems .

What are your core skills or the skills you’ve developed?

You’re more likely to succeed in a business if you have the experience, knowledge, and skills that it demands.

Look back at your employment history and note the skills you’ve developed over the years that you’re both naturally good at and you enjoy doing. These can provide clues on what kind of business to pursue.

And we’re not just talking about skills that you’ve developed in your previous jobs; those that you’ve learned outside work are equally important and perhaps more reliable in helping you figure out what business to try. Since you enjoy doing them without any incentive to motivate you, then you can potentially turn it into a business you’ll never get bored doing.

What businesses are currently booming/trending?

First of all, there’s a difference between a business fad and a business trend. Whereas a business fad enjoys initial hype but proves to be short-lived, a business trend lasts longer as the consumers don’t easily lose interest in the product/service.

Apparently, your focus should be on the trending businesses because more people doing it means the idea is very profitable. In the Philippines, trending business ideas fall in any of these three categories: Food, online, or service.

Food businesses either focus on food manufacturing (i.e., creating your own products from scratch like what Eng Bee Tin did and other big names with humble beginnings in their founders’ own kitchens) or food trading which involves selling ready-made or frozen products like siomai, shawarma, etc.

Online home-based businesses are mostly done by professionals who sell their services instead of tangible products. These include virtual assistants, freelance writers, social media managers, bloggers, bookkeepers, graphic artists, and many more.

Last on the list are businesses in the service industry that are now thriving as more and more people become busier. Some of the best examples are laundry businesses , transportation/delivery services, pet grooming businesses, photography businesses, and wedding and events coordination businesses, among others.

In addition to asking yourself the above questions, you can further increase the number of business ideas you generate by reading this article: 100+ Best Small Business Ideas in the Philippine with High Profit.

Step 4: Conduct Market Research

Starting a business without doing market research is akin to entering an unfamiliar territory without any map to guide you.

But what exactly can you achieve with market research? The answer is knowledge. A wealth of information and insights about who and where your customers and buyers are; when they’re most likely to buy or use your product/service; who your competitors are; and how big is the potential market demand for the product/service you’re currently developing.

In other words, everything that can help your business start off on the right foot.

This step has three components:

• Market segmentation;
• Market research;
• Competitor analysis.

To begin your research, you have to know first that your business doesn’t necessarily need to appeal to everyone . It’s easier to focus on one segment of the market first and then expand later on.

In order to find this target market, you need to divide the general market into smaller subgroups. Also known as market segmentation, this process involves grouping the market according to location, demographics, behavior, or other variables that make sense for your business.

Let’s say you’re planning to develop and sell a mobile phone. You can find your market either at shopping malls or online shopping sites where mobile phones are being sold.

Through market segmentation, you can divide this market into different groups according to their motivations in buying a mobile phone. There are the housewives who only need phones with the most basic features since they’re only using them to call their loved ones; the students who look for phones with cameras and other features that will help them with their studies; the yuppies who prefer phones with a flashy look and more features to meet their professional needs; and so on and so forth.

Another example would be a business that will manufacture its own soap. There’s a huge market for soap but what type of soap exactly?

With the use of market segmentation, you’ll be able to identify different segments of the market with varying demands for a specific type of soap. There are the buyers who want to achieve whiter skin; people with sensitive skin who want to get rid of their pimples; people who just want a skin-friendly moisturizing soap; those who want scented soaps; people who prefer herbal soaps; etc.

After segmenting the market, it will be easier for you to figure out which specific group or type of buyers will be the target of your marketing efforts.

Once you’ve identified your target market, it’s time to put it under the microscope and get to know your prospective customers a little bit better.

This is when the market research comes into the picture. You employ tools and techniques to reach out to your target market and discover what makes them tick.

And if the sound of “market research” intimidates you, don’t worry. Although big companies require an equally big budget to recruit a huge number of respondents for their market research, small entrepreneurs can also gain access to a wealth of valuable information about their target markets without breaking the bank.

The following are the most common techniques you can use to conduct low-cost market research:

1. Survey – is the old-school way of collecting data from a sample group that is assumed to be the representative of the whole. You can use this method to learn what people think about the products currently available in the market and how you can create a better one in terms of quality and price.

Just make sure the survey participants are neither your friends nor relatives because of the biased opinions they tend to provide.

The questions in the survey should explore the factors the respondents consider when buying; what they like or dislike about the current products in the market; the kind of improvements they would like to see; and the price of the product that is reasonable for them.

2. Observation – is probably the crudest form of market research but one that remains effective nonetheless.

It can be in the form of contextual observation where the entrepreneur pays close attention to a sample of the target market as they use or experience a certain product or service. Other entrepreneurs take matters into their own hands and do a mock journey where they put themselves in the consumers’ shoes by buying and using the product/service themselves.

3. Prototyping – known in layman’s terms as simply “taste test” or “sampling”, this method allows the entrepreneurs to put their minimum viable product (or the early version of their product, warts and all) out there and use the customers’ feedback to further improve the said product as they go along.

Market research is a critical part of your initial entrepreneurial journey as it will help you realize whether there’s a demand for your product or not and if there is, who is most likely to buy it, how many they are, where they’re located, and how you can promote your business to them.

It will also identify both your direct (i.e., businesses selling the same product/service) and indirect competitors (i.e., businesses selling different products/services but are in the same category as you).

Speaking of competitors, the competitor analysis is just as, if not more, important than the market research itself.

Not finding time to learn more about your competitors, what they offer, and how much they cost will put your business on the losing end. This is because competitive analysis helps you discover ways to give your business a competitive advantage which will effectively prevent your target market from choosing others over yours.

Aside from collecting and analyzing available data about your competition, you can also go the extra mile and buy your competitor’s products to test them yourself. This way, you can once again put yourself in the customer’s shoes and gain ideas on how you can improve their experience through a product that only your business can provide.

Step 5: Decide Who Will Run the Business

Most starting entrepreneurs build their businesses on their own as a single proprietorship. However, entrepreneurship can be a lonely endeavor so there’s nothing wrong with starting a business with a partner or a group of people.

The following are the different types of business according to ownership and the pros and cons of each to help you decide which path to take:

• Single proprietorship – is the most basic type of business wherein you basically run the whole show. While it’s easier to set up and you’re free from outside interference, this type of business is also the most demanding and puts you at high risk for burnout. The growth of your company is also limited by your financial means.
• Partnership – a business owned by at least two parties, this is also relatively easier to set up than a corporation and has the advantage of having the check and balance maintained by the co-owners. Businesses under a partnership tend to grow faster than sole proprietorship since there is more than one investor. However, more owners mean more chances of having a conflict.
• Corporation – is a business run by at least five people. Like a partnership, a corporation can also grow faster because of the number of shareholders and is also highly flexible because all the owners can share the responsibilities. The downside is corporations are taxed more than sole proprietors, more difficult to set up, and have a tendency to institutionalize a bureaucracy.

To help you further in deciding which type of business structure to pursue, I recommend reading this section in our business registration guide . It contains crucial information on how to choose the right business structure based on your intention, risk appetite, capacity to raise capital, and other factors.

Step 6: Write a Business Plan

Ever heard of the saying “if you’re failing to plan, you’re planning to fail?” Nothing can prove this better than starting a business where your own (or your investors’) hard-earned money is on the line.

This is why writing a business plan is crucial regardless of the size of the business you’re planning to start.

A business plan is a document that will show how your business will evolve from start to finish . It offers a closer look into your business model and helps identify any loopholes in its profitability, thereby giving you a clearer picture of whether the business is worth pursuing or not.

Specifically, a business plan will help you accomplish the following:

• Prevent or eliminate the risk of losing money invested in businesses that are proven to be lacking in demand.
• Reduce total expenses that would not have been possible without a business plan to help you examine details that are easily overlooked. Remember, every peso counts when you’re starting a business in the Philippines so you don’t want it to be wasted on something not essential.
• Establish a healthy cash flow for your business especially during the lean and peak months. Cash is king when it comes to running a business for without it you’ll always be on the verge of bankruptcy . Through a business plan, you can create a contingency plan to make sure your business will stay afloat when the demand slows down and will be prepared enough to handle increased demands during peak seasons.
• Set goals in terms of the total number of sales, revenues, or expenses and measure the actual performance of your business against these set goals.
• Convince investors or lending institutions to lend you money to start your business. No sane person will easily hand you the capital for your business unless you can provide a well-thought-out business plan containing details on how the business will work and earn back the initial investment.

If you truly know your business inside out, it’s not that hard to write your own business plan. The more complicated and larger the business, the more pages the business plan would require.

Should you need assistance in writing a business plan, you may approach the following people/institutions:

• SME Counselors from the Department of Trade and Industry (DTI);
• Freelance consultants who charge lower fees than consulting firms because they don’t deal with big overhead expenses;
• Accountants/bookkeepers;
• Business professors;
• Extension offices of business schools like Baguio’s St. Louis University Extension Institute for Small-Scale Industries.

As for the content of the business plan, it must depend on what kind of enterprise you’re planning to start. No two businesses are alike so the business plan should be written according to the uniqueness and conditions of your business.

In general, however, the following sections are considered basic components of a good business plan:

• Title page – contains the name of your business and other basic details of your enterprise.
• Executive Summary – provides an overview of what the company or business idea is all about, the problem the business is going to solve, the solution your business will provide, and how it will fit into the marketplace. This section will give investors an idea of whether to invest or not so make sure to leave a great first impression.
• Business description – explains the type of business you’re planning to start, the industry it belongs to, and what it will look like in the future.
• Market strategies – describe how big the market you’re trying to penetrate, who your target market is, and how you plan to sell to this market.
• Competitive analysis – explores who your competitors are, their strengths and weaknesses, and how your business stack up against them. Essentially, this section shows what makes your business different from everybody and how you’re going to use this to beat your competitors.
• Design and development plan – determines what exactly is your product or service and how you will develop it over the short term, medium-term, and long term.
• Operations and management plan – describes how a day in your business will look like.
• Financial plan – discusses in detail where the money to fund your business will come from and whether it will be self-funded or financed by outside investors. It also covers the projections you should create and what factors you should take into consideration; how much financing you need to start the business; how long it will take to pay back the investments (ROI); how will the ownership be divided, if applicable; and your backup plans in case profits or the demand for your business dries up.

When writing your business plan, keep in mind that nothing is final. It’s a living, breathing document that you can update every now and then as your business evolves.

Step 7: Build Your Product/Service

Now that you have a business plan, you can start developing your minimum viable product. This is the earliest version of your product that you’ll introduce to your target buyers. You’ll then use their feedback in order to improve the product prior to mass production.

Even if you’re a perfectionist, it’s virtually impossible to create the perfect product or service right off the bat. So instead of succumbing to analysis paralysis, just release the first batch of your product into the wild and let the feedback dictate what changes you need to make.

Whether you’re planning to sell handicrafts, homemade cakes, or something more complicated, there are important aspects of product development you just can’t afford to take for granted. These are the following:

1. Process . Review the different steps that it will take to create your product. Are all of these steps necessary or can you remove some of them to save on costs without sacrificing product quality? What are tools and equipment will you need and how many skilled workers are needed to operate them?

2. Machines and equipment . Determine the things you’ll need to create your product, how much they are, and where are the best places that offer quality products at a minimal cost.

There are also some considerations to make depending on what type of business you’re going to start. Whereas a simple crafts business may only require hand tools and inexpensive machines, an Internet café will require specific computers with features that are completely different from those intended for personal use.

3. Materials . Know where and how you’ll get the materials you need as they will determine the pricing and eventually the profitability of the finished product.

For example, if your supplier is far from your business plant or location, and the transport facilities in the said place are limited, it will not only result in production delays but also additional manufacturing costs that will then jack up the price of the product.

However, it doesn’t mean you should just settle for the cheapest materials. Remember, don’t make a final decision based on price alone 4 as the reputation of your business is on the line.

To find the best deal, you can search online, get industry recommendations, or attend trade shows, among others.

4. Design . The product and the packaging must be able to get someone’s attention within the first few seconds of him/her glancing at them. The packaging should have a clean design, legible text, and clear branding that people recognize even from several feet away.

5. Pricing . Determine a reasonable price for your product/service by factoring in all the overhead costs. Make sure you have a good profit margin otherwise you may need to reduce the manufacturing costs (instead of increasing the product’s price) in order come up with a price that doesn’t turn off buyers.

The price of the product is also determined by the marketplace; if similar products are within a certain price range, then your product’s price should not veer off too much away from it if you want to capture the same market.

6. Trademark filing . Protect your business from copycats through trademark registration. You can either do it by yourself via the Intellectual Property Office of the Philippines (IPOPHL) website or hire a trademark lawyer to handle all the paperwork on your behalf.

Step 8: Get Feedback for Your Product

In the process of developing our product, we tend to be blinded by our own awesomeness that we forget what actually matters to those who will buy it. This is when feedback becomes very valuable.

Even if you’re only selling a humble kakanin , customer feedback will spell the difference between a profitable business and one that won’t earn repeat buyers.

Your aim is to get honest feedback from actual buyers (a.k.a strangers and not your close friends/relatives) so it won’t hurt if you offer free or discounted products in the beginning.

If you’re selling clothing items, on the other hand, you can sell beta versions of your products in small batches at first and let the customers order through your social media or website. These first few buyers can get your products at a discounted price in exchange for their feedback on the fabric, color, fit, comfort, and other areas of improvement of your product. Done right, these early adopters may turn out to be your first few brand advocates later on.

Through the strategy discussed above, you can get the product to your prospective customers’ hands faster instead of aiming for perfection that can never be attained, especially sans buyer feedback.

This principle, also known as Lean Startup 5 , can be applied to most businesses but most especially to startups that can’t afford to have a long incubation period for their products. Instead of being held back by perfectionism, they push out the early version of their products to the market in order to get that coveted feedback that will then propel those products into a series of improvements.

When collecting feedback from your prospective customers/buyers, remember these tips:

• Be thankful for the feedback regardless is it’s a positive or a negative one. This gesture will not only earn you their respect but also encourage them to continue providing honest opinions which you need the most.
• Dig a little bit deeper to learn what the negative feedback is all about. If someone doesn’t like your product, he or she is most likely referring to one aspect of the product and not its entirety. Ask questions to figure out whether to improve a specific flaw or just scrap the whole idea altogether.
• Look for patterns or the same comments given over and over again. Your customers know what’s best for them so if they’re specifically pointing out the same complaints, then address them as soon as you can before mass-producing your products.

Step 9: Look for Funding

Regardless of the size of your enterprise, you need money to get it started.

If you’re only selling home-cooked meals or desserts, you probably don’t need as much capital and you can start with whatever money is left in your savings account. No need to borrow money since you can get all or a portion of your profit and then reinvest it into your fledgling home-based business.

The same can’t be said for startups or huge businesses like restaurants that require large upfront capital. Aside from your personal savings, you may also need to go through several rounds of investing in order to get the business off the ground.

Here’s a list of different financing options in the Philippines you may consider to raise funds for your budding business:

1. Your own money. Using your life savings or proceeds from the sale of your personal assets is the safest way to finance your business. Since the money will come out of your pocket, you’ll be more in control of your destiny and retain 100% of your equity.

2. Friends and family. If your own money isn’t enough to raise the needed capital, you may also turn to your well-off friends and relatives with enough cash reserves. The advantage of borrowing from them is you’ll get relatively lower interest rates and more flexible payment terms compared to bank loans.

However, if you still fail to raise the needed funds after exhausting your own savings and borrowing money from friends and/or relatives, then it’s time to consider outside sources.

3. Government financing programs . The Philippine government is aware that small businesses are the backbone of the economy so they have established loan/credit programs to support our entrepreneurs.

Financial assistance is offered by different government agencies which include, but are not limited to, the following:

• Department of Science and Technology (DOST) and the Technology Resource Center which offer financing program for small businesses that are technology-related;
• Department of Agriculture ‘s Agri-Microfinance Program or AMP which is designed to provide financial relief to farmers and fishermen (and their families) in drought- or calamity-stricken areas;
• Department of Social Welfare and Development ‘s Sustainable Livelihood Program or SLP which seeks to improve the welfare and development of marginalized families through livelihood strategies.

For a comprehensive list of banks and government offices that offer financing programs for micro, small, and medium enterprises, you can check out the free ebook 6 published by the Bureau of Micro, Small, and Medium Enterprise Development (BMSMED) in collaboration with DTI.

The Philippine government-owned LandBank of the Philippines also offers lending programs 7 for those who are involved in the agricultural industry. These are the following:

• Cacao 100 (Credit Assistance for Cacao Agri-Business and other Organizations) – offers loan assistance to farmers and entrepreneurs with the main goal of catalyzing the growth of cacao output in the Philippines. This is a good choice if you’re looking to fund your cacao nursery, cacao plantation, and all the processes involved in cacao beans processing.
• Agricultural Credit Support Project (ACSP) – suitable for agri-businesses needing additional funding to support increased production or business expansion. This is ideal for entrepreneurs who are seeking financing for their fisheries, farm equipment, agriculture-related services, and agricultural product distribution.
• KAWAYAN ( Kalikasang Kabuhayan para sa Wastong Pamayanan ) – this program provides financial assistance for farmers, LGUs, and entrepreneurs who have businesses involving bamboo nursery, bamboo plantation, trading, and eco-tourism.
• ISDA (Integrated Support for the Development of Aquaculture) – is a program established to help small fishers as well as small and medium enterprises.

For more information about LandBank’s lending programs, you may contact their customer care center at (02) 405-7000, visit the nearest LandBank Lending Center, or send an email to [email protected]

4. Angel investors or Venture Capital investors . Another alternative source of funding is individuals or groups of individuals who already have the intent to invest.

Angel investors are established and wealthy individuals who use their personal money to invest in their chosen startups. The Angel Investment Network is a great online platform that enables you to find individual investors in the Philippines who can relate to the vision of your company.

Venture capital firms like Kickstart Ventures , on the other hand, is composed of a group of professional investors that pool together all the money coming from individuals, corporations, foundations, and pension funds and then invest them to startups of their choice, the majority of which are businesses dealing with technology and science.

5. Startup incubator or accelerator . The thriving local ecosystem has prompted the launch of several startup incubators and accelerators, most notable of which are the IdeaSpace Foundation, Launchgarage Inc., and QBO Innovation Hub, among others 8 .

The goal of these companies is to provide support to startups (mostly technology or fintech companies) in the form of office facilities, consulting, pitch events and equity-free seed funding that will help get their enterprises off the ground.

6. Banks . There are SME-friendly banks that lend money to entrepreneurs despite the risks associated with small businesses. Just make sure you comply with their requirements and show enough proof (including a business plan) that you have a clear vision for the business you’re going to start.

Examples of local banks known for supporting small businesses include the government-owned LandBank of the Philippines, the Development Bank of the Philippines, Metropolitan Bank and Trust Company, and the Planters Development Bank.

Related: Best Banks in the Philippines

7. Pitching competitions . Early-stage businesses can also get funding by joining televised pitching competitions like The Final Pitch and the upcoming reality show “Project GO” 9 sponsored by GoDaddy Inc. and to be aired on AXN.

These reality shows will require qualified contestants to pitch their business ideas in front of a panel of esteemed Filipino business experts and investors (think Shark Tank ). Since they’re joining a reality show, investment decisions will not be made unless the entrepreneurs go through a series of entertaining challenges first.

Prizes for winning contestants may be in the form of funding in exchange for partial ownership of their businesses or equity-free funding to help jump-start their ventures.

8. Other sources of financing . Small business owners can also consider the following when seeking credit assistance:

• Pawnshops – the ideal choice if you’re only looking for quick cash. You can get the money you need by pawing your jewelry, gadget, or other valuables and then pay back the amount along with incurred interest.
• Credit cooperatives – popular especially in rural areas, the credit coop can lend you an amount up to five times bigger than what you initially deposited when you joined. Unlike banks, credit coops charge a significantly lower interest rate for your loan.
• Lending investors – a cross between banks and money lenders, these companies offer short-term loans to small enterprises with interest rates of usually 3% to 5% a month–higher than those offered by banks but lower than those charged by money lenders.

Step 10: Formulate Marketing Strategies

In a nutshell, marketing strategies refer to how you’re going to convince or influence your target market to buy your product or services.

Your marketing strategies can be summarized into four key components. Let’s go over them one by one.

1. Product strategies – revolve around the product itself and how it will be perceived by your target market. It starts with good branding which is the design, reputation, name, logo, or a combination of these that make your product or service different from other similar products/services in the market. Consistent branding must also be present in the product’s packaging and labeling.

However, an excellent product can only go so far; you also need to invest in product support which is a catch-all term for all warranty, delivery, installation, and other services that come with the purchase of the product.

2. Place strategies – focus on how you want to bring your product or services to your target market. Depending on your business, you can use traditional or modern distribution channels (or even both).

Traditional distribution channels exist in the form of kiosks and brick-and-mortar stores where face-to-face interaction between the buyer and seller can cultivate a long-term buying relationship. New distribution channels, meanwhile, are those that don’t necessarily require an in-person interaction since the transaction can easily be completed via phone or the Internet.

Your choice of distribution channels depends on your target market’s preference and behavior, competition, as well as the current state of the market (think the 2020 pandemic that has forced restaurants and a lot of businesses to shift to e-commerce).

3. Price strategies – cover everything that concerns the price tag for your product.

How you price your product can make or break your business. Therefore, ensure you price your product or service in a way that will keep your business profitable while meeting the needs of the target market.

To come up with a price, there are three factors you have to consider. First is the cost of making the product or service you’re selling. You can add the total cost you incurred in producing your product and then divide it by the total number of the products to determine the unit cost.

For example, if you spent Php 1,500 to bake 100 chocolate cookies, the unit cost would be Php 15 (1,500/100). As for the selling price, you need to add a markup which is a percentage of the unit cost that you think when added will sufficiently cover the direct (i.e., materials, labor, etc.) and overhead costs. Say the markup is 20%, and 20% of Php 15 is 3, then the selling price is Php 18 (15 + 3).

The second factor you have to consider is the competition. You will use the price they have set for a similar product/service as a benchmark when determining the price of your own. You may either go higher to make the target market perceive what you’re offering as higher in quality or lower to make an introductory offer and in so doing gain your first few fans.

Lastly, the current demand for the product/service you’re selling can also determine the selling price. Simply put, the higher the demand for the product that only a few businesses are offering, the higher the selling price becomes. Conversely, the lower the demand for a product with plenty of supply, the lower the price will be.

4. Promotion strategies – make up the core of your marketing strategies since these cover all the tools and channels you’ll use to reach out to your target market.

Remember that whether you’re using Internet ads or television commercials to promote your business, it’s important to convey your message in a way that resonates with your prospective buyers.

To do this, you must focus on highlighting the benefits and not the features of the products. People won’t care how many advanced technologies you’ve used to produce your product unless it offers solutions to their problems. If you’ve studied your market well, then you should know by now what keeps these people awake at night and how your product can address this.

Step 11: Register Your Business

Now that you’re a few steps away from launching your own business, it’s time to legitimize it by securing all the required permits and registration documents.

Whether your business is a sole proprietorship, partnership, or corporation, you’re required by the government to register it. Doing so will allow your business to be legal in the eyes of the law, file tax returns, apply for government loans, and avoid incurring penalties.

The process of business registration in the Philippines can be long and frustrating. Fortunately, we’ve covered all the basics and condensed them into one easy-to-follow business registration guide in the Philippines .

Step 12: Find a Strategic Location

Choose the right location for your retail business and you already have the battle half-won. But how do you pick a great location? Here are some guidelines you need to follow:

• It should be near the source of raw materials. The main reason why some products are priced ridiculously high is that it costs a lot for the raw materials to be delivered to the business location. Therefore, putting up a business near the source of the raw materials (e.g., sugar millers near sugarcane plantation, food processors near fruit/vegetable farm) will bring the transport cost down and in so doing make the product price more affordable for the consumers.
• It should be where the market is. In the same way that you save on transport costs by placing your business near the source of your raw materials, you should also make sure that the business is near and accessible for people you intend to serve. If the target market exists within the vicinity of your own home, much better since you can start a home-based business and save on rental fees.
• It should be accessible to your employees and customers. Foot traffic is the lifeblood of brick-and-mortar businesses so make sure the place where you’ll establish your store is easy to find, has plenty of public transport, and has available parking spaces for everyone. This strategic location will benefit not just your customers but also your current and future employees. A business near a good source of skilled labor won’t have a hard time finding new employees should the need arises and will also save on accommodation costs since they’re within the commuting distance of the business.
• It must be in a place with a reliable and adequate supply of power, water, and Internet services . Even the slightest disruption in any of the aforementioned utilities can drastically affect your daily business operations so make sure you choose a location with an established infrastructure. If you’ll be renting a place, verify beforehand if the utilities are included in the lease so you won’t be caught off guard by any hidden charges.
• It should be in a safe and peaceful environment. Building a business in a neighborhood notorious for looting and other forms of violence is a huge risk you can’t afford to take especially if you’re a first-time entrepreneur. Pick a place where established businesses have been thriving for decades and whose residents have high purchasing power. You also need to ensure that your business will comply with existing ordinances and zoning restrictions in your chosen community.
• It must be in a decent and pleasant place. You don’t want to start a business in an environment that will drive prospective customers away so make sure to check the place for the presence of disagreeable things like smoke, noise, foul odors, dust, as well as proximity to places like bars and pub houses (unless your businesses are bars and pub houses).
• It should be where a moderate number of your competitors are operating . The presence of competition can either be a good thing or not. If the place is full of competing stores placed one after another, it may be more difficult to stand out and penetrate the market. On the contrary, the absence of any competitor may be a telltale sign that the place is bad for business, especially if it has a history of similar businesses closing down or going bankrupt. In most cases, however, establishing your business beside one or two competitors can actually be a good thing since the presence of similar businesses in one place will attract more foot traffic.

Step 13: Form Your Dream Team

A business won’t run by itself. It needs people to complete its daily operations.

As a business owner, it’s your responsibility to find and choose the right employees to join your dream team. If you own a retail business, the rule of thumb is to hire people who are highly approachable and have a positive attitude. A grumpy Debbi Downer is a liability that will cost you a lot of loyal customers.

Once you’ve found the right people, it’s time to train them well and incentivize them to do their best work consistently. In order to keep your employees motivated and committed to their jobs, not only should you pay them right but also treat them with the same respect and kindness you’d want to receive if you’re the employee.

Should you need assistance in providing technical training for your staff, the government can help you through various programs offered by the Technical Education Development Authority (TESDA), the Technology Resource Center (TRC), and the Department of Science and Technology (DOST).

When it comes to employees’ rights, there are a few important things you have to keep in mind to ensure you’ll be in good terms with your employees:

• All employees, male or female, are entitled to equal compensation and work opportunities. Discrimination is not allowed in any way or form so you should not do unacceptable things like not hiring a woman just because she’s married or firing an employee just because she got pregnant.
• Every employee should be assured security of tenure. You can’t dismiss an employee unless it’s due to a just or authorized cause. Termination can only be done after observing due process.
• Employees are normally required to work for 8 hours a day . This 8-hour period already includes rest periods of less than an hour but excludes meal periods of at least one hour.
• Employees are entitled to get a rest day after not more than 6 consecutive workdays. They can also file different types of leaves to take a break from work. These include the five-day Service Incentive Leave (SIL) with pay which can be availed by the employee after a year of service in the company; Maternity Leave which is granted to qualified female SSS members in anticipation of childbirth or due to abortion or miscarriage; and the seven-day Paternity Leave with pay for the male spouse of a woman who is about to give birth or has suffered from a miscarriage.
• Employees must be paid the right wage commensurate to the amount of work rendered as well as wage-related benefits like accommodation, overtime, rest day, night differential, 13th-month pay , and holiday.
• Employees deserve to be protected from any injury, sickness, or death through a safe working environment .
• All employees have a right to join or form a legitimate worker’s organization or labor union without the employer’s interference. These groups are established for the purpose of upholding their rights as workers and doing collective bargaining. For instance, workers can be represented by these organizations in tripartite decision-making involving them, the government, and the employers’ organizations. This way, they can have their voices heard in matters concerning workers’ wages and labor disputes.

Step 14: Purchase All the Needed Equipment and Supplies

Some businesses can get by with just manual labor. However, for those that invest in machines and equipment, the increase in business productivity and profitability can be phenomenal if done right.

Therefore, you have to apply the same meticulousness in selecting the supplies, machines, and equipment needed to produce your product. Follow these proven tips before making a purchasing decision:

• Have a clear idea of what you want to buy before heading to the store/supplier. Know the specific needs of your business, the kind of machine/equipment that can meet these needs, and all the engineering features and operating characteristics you’re looking for. This way, you can cut down on shopping time and simply go straight to comparing only the products that meet all your criteria.
• Shop around and don’t settle with the first supplier that you come across no matter how great it is. Instead, get information on each supplier that sells the machine/equipment you’re looking for and judge them one by one in terms of reliability, price, warranty, payment terms, delivery, installation service, maintenance, etc. Just because the product is the cheapest doesn’t mean it’s also the best; multiple factors will determine which one suits your business best.
• Choose excellent machine/equipment that is within your price range . Remember, it’s an expensive investment so make sure you have done your assignment of comparing the cost of each machine/equipment that you’ve shortlisted based on their fuel efficiency, capacity, and other technical matters. Alternatively, you can lease or buy a second-hand machine/equipment so you won’t have to spend more money on a new one.

Step 15: Launch Your Business

And there you have it: You are now ready to start your own business. Although this article has only covered the basic details of jumping into entrepreneurship, it should be enough to get you started.

Remember, it’s not unusual for first-time entrepreneurs to make mistakes in their first ventures but the lessons from these mistakes are what will propel you forward as you learn more about your business.

Entrepreneurship is not just about earning big bucks. It’s also about generating job opportunities that will help a lot of families. As an entrepreneur, you’ll be serving not just yourself but also the community around you.

Regardless of the outcome, consider this journey as a launching pad to greater things. And if there’s one thing that owning a business can teach you, it’s the truth that learning doesn’t stop.

So keep learning and have faith both in God and in yourself. Who knows? Your greatest breakthrough may be just around the corner.

• Bureau of Small and Medium Enterprise Development (BSMED). (2015).  Your Guide to Starting a Small Enterprise  [Ebook]. Retrieved from https://www.dti.gov.ph/resources/e-library/business/starting-a-business/guide-in-starting-a-business-enterprise/
• Bureau of Small and Medium Enterprise Development (BSMED). (2015).  Do You Want to Go Into Business?  [Ebook]. Retrieved from https://www.dti.gov.ph/resources/e-library/business/starting-a-business/guide-in-starting-a-business-enterprise/
• Entrepreneur.com. (2017).  Need a Business Idea? The Best Way to Find One Is to Stop Looking.  [Video]. Retrieved from https://www.entrepreneur.com/video/295451
• Goodman, M. (2015). The 7 Steps of Effective Product Development. Retrieved 10 August 2020, from https://www.entrepreneur.com/article/244616
• The Lean Startup Methodology. Retrieved 12 August 2020, from http://theleanstartup.com/principles
• Bureau of Micro, Small and Medium Enterprise Development (BMSMED). (2012).  Financing Programs for Micro, Small, and Medium Enterprises (MSMEs)  [Ebook].
• Summit Publishing Co. Inc. (2015).  52 Inspiring Success Stories: Breakthrough Ideas for the Aspiring Entrepreneur  (pp. 7-9). Mandaluyong City.
• Noda, T. (2018). 10 Notable Incubators and Accelerators In The Philippines. Retrieved 14 August 2020, from https://fintechnews.sg/22610/fintechphilippines/incubators-accelerators-in-the-philippines/
• GoDaddy, AXN launch reality show to jumpstart ventures of Filipino entrepreneurs. (2020). Retrieved 14 August 2020, from https://mb.com.ph/2020/08/12/godaddy-axn-launch-reality-show-to-jumpstart-ventures-of-filipino-entrepreneurs/

Written by Luisito Batongbakal Jr.

in Business and Finance , Juander How

Last Updated March 31, 2022 07:11 PM

Luisito Batongbakal Jr.

Luisito E. Batongbakal Jr. is the founder, editor, and chief content strategist of FilipiKnow, a leading online portal for free educational, Filipino-centric content. His curiosity and passion for learning have helped millions of Filipinos around the world get access to free insightful and practical information at the touch of their fingertips. With him at the helm, FilipiKnow has won numerous awards including the Top 10 Emerging Influential Blogs 2013, the 2015 Globe Tatt Awards, and the 2015 Philippine Bloggys Awards.

Browse all articles written by Luisito Batongbakal Jr.

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30 Best Small Business Ideas to Pursue in the Philippines this 2023

The perfect business idea pops into your mind within seconds.

And, the next thing you know: you are all over the place.

Indeed, the idea of starting a business is exciting but overwhelming too. There is so much to do than what you can think about now.

Let’s say you are good enough to have random business ideas coming into your head.

But how about the others? Brainstorming is never easy. So, we have this article for you!

Kickstart your dream into reality by discovering the best small business idea that fits your ideals, goals, and budget without going through the hassle.

Check out this comprehensive list of brilliant small business ideas that can help you start your entrepreneurial journey.

Moreover, learn the following topics exclusively in this article:

Table of Contents

Reason for doing business this 2023, how to future-proof your business, the entrepreneur’s checklist.

• 30 Small Business Ideas You Can Start Now

Doing Business and COVID-19

Alright! Let’s start reading!

You may ask yourself if it is wise to start a business in 2023.

The COVID-19 effects are still obvious, and though restrictions started to ease slowly, they still give everyone anxiety.

However, it is noteworthy that significant research and reports in 2022 showed a positive outlook in the business industry. Such a projection can be a stepping stone to kickstarting your dream business this year.

If you are wondering where all these are coming from, check this business forecasting for 2023 .

At times, your uncertainties can surely overpower you.

But, you can overcome this if you learn how to future-proof your business.

By future-proofing, you make sure that the business remains valuable in the long run.

There is no room for you to think it will go obsolete one day. So, how can you future-proof your business?

Here are four proven strategies.

Create room for innovation

Predicting the future is impossible, but we can get close to it.

You should not stop learning.

At one point in time, you need to innovate and look for another way to entice your customers.

In other words, you should step up the game and beat your competitors.

Follow the trends in developed countries

If there is one keyword that you should not forget; it is the word “trend.”

Stay updated with all the latest trends in most developed countries but do not imitate them entirely.

You have to tailor-fit it according to your business’ needs.

Predict future demands today

Customers cannot always tell you what they want.

As an entrepreneur, you have to anticipate it.

So, it requires not only innovation but also your imagination and experience in the industry.

For one, the main thing you need to do is to do market research and benchmarking continually.

You may not need the data this time, but one day, you’ll surely need those, so keep them while you can.

Rethink your past strategies

If your past strategies did not work, move on.

It is the right thing to do, but at one point in time, you will realize that the failure you had can be your driving force to do better.

So, instead of forgetting about it entirely, why don’t you use it as an inspiration to do better?

Improve those past techniques or modify them completely. It is up to you.

As entrepreneurs, you create your destiny.

You need to prepare and equip yourself with favorable qualities and traits to stay in the industry longer.

Here is an 8-point checklist to help you confirm that you are an entrepreneur.

• You are confident.
• You are competitive.
• You are workaholic.
• You are focused.
• You are independent and self-motivated.
• You are a leader.
• You innovate.
• You accept failures.

What do you think? Do you have all these qualities?

If yes, then that is great! You are ready to call yourself an entrepreneur.

30 Best Small Business Ideas in the Philippines (2023)

Now, let us talk about the business ideas you can try.

It is grouped based on the available industries in the market today with visible popularity and conversions, despite the recent unfavorable events.

Let’s begin with the general industries as picked by your editors in no particular order.

1. Street Food

Filipinos love food!

After all, who can beat our classic fish ball stands and refreshment stands, right?

That is why starting your street food business is a wise choice. With a small capital on hand, you can begin this excellent business without any doubt.

For a more appealing approach, why don’t you give it a small tweak by having crazy offers like street-food on your doorstep?

People will surely buy fantastic offers like this, especially now that the pandemic is not yet eradicated.

2. Digital Marketing Services

Almost everything today is going digital - from people to businesses.

However, not all entrepreneurs have what it takes to become a digital marketer.

This is where you step-in - someone who has working knowledge of the digital marketing sphere.

Share what you know with others by starting your digital marketing agency.

Moreover, highlight why it matters, especially to businesses.

As a provider, you can sell your expertise in search engine optimization (SEO), social media management, email, and content marketing to businesses or entrepreneurs.

Find clients to work with through freelancing sites such as Upwork, Onlinejobs.ph, and social media platforms such as Facebook and LinkedIn.

3. Vending Machine

If you’re looking for a business with minimal supervision, this one is the right choice.

All you need is to secure the capital, buy the machine, place it in an area that attracts customers, and voila! Your vending machine business is now ready.

You just have to ensure that you do the regular machines’ maintenance and that restocking is always done on time (especially for food vending machines).

4. 3D Printing Service

Business owners always look for ways to showcase their products.

Years ago, the idea of products on printed materials should suffice, but now, 3D printers have proved their worth in the industry, making it a viable business if you have the right product idea.

Hence, you can try offering this kind of service to produce souvenirs and other personalized items.

5. Home and Office Furniture Rental

Some businesses want to save costs.

Hence, instead of acquiring all types of furniture, they opt to rent.

This is now a viable niche market for those looking into leasing their products instead of selling them.

So, how do you do it? Mostly, it is contact-based, depending on the clients’ needs. 

Why rent furniture?

It is like renting apartment houses.

People who stay in the places they visit for a longer time tend to choose to rent furniture because it makes them feel more comfortable.

Simultaneously, it saves money and effort since there is no need to bring with them furniture should they decide to go someplace else.

The same concept applies to start-up companies, for example.

Instead of buying furniture for rented office space, renting furniture on a term basis is more budget-friendly.

It cut down start-up costs without worrying about having an empty office space.

6. Smart Home Services

Have you ever wondered how you can turn off your lights just by clapping your hands?

Well, that’s not magic as it seems like in movies.

It is actually possible because of the so-called “Internet of Things” or IoT.

The term refers to the network of connected devices equipped with unique identifiers so the individual device connected can communicate with each other.

IoT is also responsible for developing smart homes and is why it is now possible to turn on and off lights and other appliances or devices using either voice or gesture commands.

Hence, you should seriously consider an exciting business idea, especially if you know how IoT works and other principles related to it.

7. Modern Jeepney Franchise

Certainly, jeepneys always have a special place in Filipinos hearts.

Then, COVID happened.

With the new government regulations, the traditional jeepneys are likely to be not plying our roads anytime soon.

It is a sad reality but has lead to another business opportunity, which is franchising modern jeepneys.

This franchise business will allow you to operate a fleet of new jeepneys approved by the Department of Transportation (DOTr).

It is an enticing venture to try that can also help displaced drivers soon.

Retail Industry

8. buy and sell.

Doing buy and sell is another excellent business opportunity to consider.

As you know, it is a proven and tested business model that covers almost every possible item you can imagine.

From gadgets, clothes, food, real estate, and others, you can easily pull off this business if you learn the craft of how to buy at lower prices and selling it with a profit margin.

9. Cellphone Load Retail

Almost everyone has mobile phones.

Hence, starting a cellphone load retail business is a viable option to consider, especially if you are in an area with not many retailers.

It is feasible because you need only small capital, but you earn big.

10. Plant Selling Business

Do you have a garden? Well, it is time that you earn some cash out of your plants!

The pandemic has turned most of us into “plantitos” and “plantitas” and has become a booming business since then.

This business idea is feasible if you love planting and investing in some good quality plant species.

You do not need a massive amount of capital for this, and there is no losing - there are a bunch of plantitos and titas who need you.

11. Sari-Sari Store

It is an old-time classic.

A sari-sari store will always remain a great business idea.

The Filipino “convenience store” is always a go-to place to grab our emergency or daily needs.

Hence, starting this business tends to succeed wherever you are. We tend to buy things retail due to economic reasons and ease-of-access.

12. Collectibles Trading

Collectibles trading is more of like a hobby than a business.

However, it is not really a big deal, as long as you have a community that shares the same likes. 

Such a group of people is looking to swap, buy, or sell various items ranging from old paper bills and coins, bottles, and other things.

So, as a collector, you must have extensive knowledge of which items sell at higher prices.

13. Sell Homemade Products

Do you have a secret recipe that creates delicious food?

If yes, take it as an opportunity to start your homemade product business.

This business only requires a small capital investment and word-of-mouth marketing.

Create a buzz by letting your relatives and friends taste your food. The rest becomes history.

With this kind of business, you can express yourself better and create a personal branding you can use later to expand the business, perhaps through franchising and other means.

Food and Beverage

14. baking business.

Here’s another business idea that can start as your hobby.

If you love baking, then, folks, try a baking business.

Your local bakeshops may be there, but not all of them can cater to the increasing demand of customers looking for bakeshops that can make customized cakes and other baked goods.

Hence, make this an opportunity to use your skills. You are hitting two birds with one stone - doing what you love and earning money simultaneously.

15. Rice Retailing Business

Rice is a staple Filipino food.

Therefore, it only makes sense to start your “bigasan” business by buying sacks of rice and selling them by the kilo.

Again, we are retail fanatics, so there are always customers who will look for your business.

16. Water Refilling Station Business

Without clean and potable water, we can’t survive.

Hence, it only makes sense to start a water refilling station business in your area.

Do not worry about your competitors. The important thing is there will always be customers with this type of business.

It is just a matter of marketing and the quality of service you provide.

17. Food Cart and Palamig Business

Snacks and meriendas have also become part of the Filipino culture.

So, why not sell one?

Through food cart franchising , you now have plenty of options to start your food cart business.

This business also has a small capital investment needed, including terms with the franchisor that benefits you.

Furthermore, with this kind of business, you all have flexible options available - from the location and payment terms. You just need to discuss everything with the franchisor.

18. Food Delivery Business

Online food delivery services like Foodpanda and Grab make it easy for us to order food online.

If you can start a business that is in line with this one, it can be a great additional option for all the Filipinos who rely on delivery services.

Moreover, you can actually launch your food delivery service, especially if you are offering food products. It is always an innovative choice on your part as an entrepreneur.

Personal Business

19. computer repair services.

After the pandemic wreck havoc in the country, the demand for computer repair services increases.

It makes sense because everybody is shifting into work from setup and online classes.

Given this, not everyone can afford to get a brand new computer or laptop. Sometimes, they are looking for ways to turn old devices into a useful one.

That is why repair service businesses are needed.

Again, this is an opportunity that you should address, especially if you have the skills and knowledge on how to repair gadgets.

20. Personal Shopper

Now, this business idea seems to sound a little lucrative but is actually one of the most in-demand businesses these days.

With the pandemic’s mobility restrictions, some people opt to hire personal shoppers to do grocery shopping and other kinds of errands.

If you have the means like a car or a motorcycle, try offering this kind of service in your neighborhood.

21. House and Pet Sitting

Perhaps, this one is an odd business idea.

However, there is a demand for this kind of service.

If you live alone but need someone to look for your house and pets, the only feasible option is hiring a house and pet sitter.

You can start this kind of business by looking for people who want to do this job and then offering your services locally first before expanding to neighboring cities.

22. Car Wash Business

Dirty cars are never appealing.

Every car owner knows that keeping the car clean is essential. However, not everyone has the time to do this.

Hence, the car wash business. It is a viable business idea these days, especially if you offer home service options to customers.

23. Barbershop

For girls, it is normal to have long, straight hair. But for men? It is not always the case.

Starting a barbershop business is an excellent idea, to begin with, if your area has not many barbers available.

Despite the competition, it is still considered a great business opportunity. 

Online Business

24. online selling or reseller (dropshipping) .

Being an online seller means selling products through online platforms like your website, Facebook store, or personal Instagram.

On the other hand, being a reseller can mean two things:

Having an actual inventory of the products that you promote online through the use of online platforms You serve as a dropshipping salesperson or the middleman who sets up a virtual shop online. From here, customers can place and process orders and payments. Once the order is confirmed, you will forward the orders to the source and deliver them to the buyers.

The bottom line is it is like a consignment business. It is just you mainly handle marketing and promotion of the products plus running the website all at once.

25. Vlogging

Do you have the confidence to talk in front of the camera?

If yes, then vlogging can be your next business idea.

Vlogging used to be purely recreational.

But now, you can use it to make money online.

The process is simple: (1) set up your account either on YouTube, Facebook, and Instagram, (2) decide on your gear set up and shoot, then (3) edit and upload your video.

In the beginning, it is not easy to do because, of course, you need to grow your audience and followers so you can start monetizing your channel.

For example, YouTube requires a certain number of followers and viewership before you can monetize your account.

Moreover, your income always depends on the number of advertisers that place ads on your videos. So, it matters to have a considerable number of followers that genuinely consume your content.

At the same time, if you reach influencer status, you now have the authority to demand specific fees for other companies that want to work with you.

26. Cleaning Service

Estimated Capital: PHP 1M Estimated Income: PHP 250k-350k per month

Consider beginning a cleaning business if you are okay with performing the nasty work that others can't. The financial return can be enormous.

Starting a cleaning service is simple, and you can get started with little money. Sometimes all you need is a scrub and some cleaning detergent. 

That being stated, here are some simple cleaning businesses you can start: 

House cleaning services: Do you know any busy, single experts in your area? Why not approach them and offer to clean their homes in exchange for a small fee? You'd be shocked at how quickly this company can expand. 

Cleaning a vehicle: Some vehicle owners may need more time to clean their automobiles. Why not lend a hand to them? You may even go further by approaching businesses and offering to clean their private or public fleet of cars. 

Carpet cleaning: Do you have carpet cleaning equipment or know where to get it? Consider creating a commercial or residential carpet cleaning business. 

Graffiti removal: Do you know how to remove graffiti from walls? A graffiti removal service could be profitable.

27. Pet Grooming

If you enjoy having pets around and grooming them doesn’t seem like much work, consider starting a pet grooming business.

To stay flexible, consider offering home services. In this arrangement, you visit the homes of pet owners, groom their pets, and get paid for your assistance.

28. Property Management

If you have prior experience in the real estate industry or are skilled at developing real estate management software, you may find success as a property manager. 

The problem is that many property owners do not have the time to handle their properties all throughout the town. They need someone to rely on to collect rent, maintain broken items, and evict problematic renters. If you've previously worked in the real estate industry or are simply strong at management, you could find success as a property manager, especially with the right property management software. 

So, if you're up for the task, go for it.

29. Ice Cream Business

In the heat of summer, who doesn't enjoy a cold cup of ice cream? Or even anytime of the day! Why not use this business idea and start building it this year.

For one, you can choose to franchise an existing ice cream business or start your brand by making homemade ice cream of your choice.

30. Alcohol and Liquor Store

Alcohol is a fairly safe bet. It is in high demand all year, and sales do not fall during recessions. Online alcohol sales are also increasing, so you can expand your eCommerce business. 

However, opening a regular retail business is easier than operating a liquor store. Because you'll be designated a high-risk merchant, you won't be able to work with all payment processors, though you'll still need one—after all, customers enjoy their credit cards. You'll also need to ensure that you have processes to check IDs and report taxes properly. 

The pandemic is not yet over, but compared to the past two years, the half quarter of 2022 and the beginning of 2023 are better.

Everything is still part of the new normal , yet the best thing now is that businesses have started to open up and be back on track.

With more establishments open and restrictions easing up, realizing your business should be easy. 

So gear up now and start your business. Prepare your capital, the products or services to sell and offer, and manpower, or if you want to franchise , then now is the best time.  

Ultimate Guide to Franchising

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The franchise industry is booming, and entrepreneurs are wondering about how this sector works. This ebook aims to help aspiring franchisees achieve their business goals.

Disclaimer: Franchise Market Philippines strives to provide relevant and accurate information in all its articles. However, some information in our articles may differ or might be outdated from what you can see or read directly from the establishments' or businesses’ websites. Please get in touch with us directly for any discrepancies.

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Starting a Small Business in the Philippines 

Disclosure: Small Business Philippines strives to provide relevant and accurate information in all its articles. However, some information in our articles may differ or might be outdated from what you can see or read directly from the establishments’ or businesses’ websites. Please get in touch with us directly for any discrepancies.

Starting a small business in the Philippines offers numerous advantages, such as tapping into a rapidly growing economy, abundant opportunities, and a large, diverse consumer base. By launching a small business, you have the chance to contribute to the local economy, create jobs, and fulfill your entrepreneurial dreams.

When to Start Your Small Business?

Where to start your small business, 1. identify your business idea, 2. conduct market research, 3. create a business plan, 4. register your business, 5. secure financing, 6. set up your business location and infrastructure, 7. build a strong team, 8. implement effective marketing strategies, 1. embrace digital transformation, 2. focus on customer service, 3. stay compliant with regulations, key takeaways.

Timing is crucial when starting a small business in the Philippines. Evaluate market trends, consumer behavior, and economic conditions. Consider launching your business during periods of high demand, or when the government is offering incentives to new businesses. Proper timing can significantly impact your business’s initial success and long-term sustainability.

Choosing the right location for your small business is a crucial decision. Conduct thorough market research to identify areas with high demand for your products or services. Consider factors like accessibility, foot traffic, and competition. Whether it’s a bustling city or a vibrant province, the Philippines offers diverse opportunities for small businesses .

How to Start Your Small Business: Step-by-Step Guide

Start by brainstorming and identifying your business idea . Assess your passions, skills, and experiences to find a unique niche that aligns with your interests and the Philippine market demands.

Validate your business idea by conducting comprehensive market research. Understand your target audience, competitors, and industry trends. Use this data to fine-tune your business plan and develop a winning strategy.

A well-structured business plan is essential for securing funding, outlining your business goals, and guiding your operations. It should include your business description, target market, marketing strategies, financial projections, and more.

Register your business with the appropriate Philippine government agencies, such as the Department of Trade and Industry (DTI) or the Securities and Exchange Commission (SEC). Complying with legal requirements will give your business legitimacy and protection.

Determine the capital needed to launch your small business and explore financing options. You can seek bank loans , apply for government grants, or attract investors who believe in your vision.

Find a suitable location for your business operations, whether it’s a physical store, office, or online platform. Invest in the necessary infrastructure and equipment to deliver your products or services efficiently.

Hire skilled and motivated individuals who share your vision and can contribute to the success of your small business . Foster a positive work environment and prioritize employee well-being.

Create a compelling brand identity and develop marketing strategies to reach your target audience. Leverage social media, content marketing, influencer partnerships, and other digital channels to boost your business’s visibility.

Tips for Small Business Success in the Philippines

Incorporate digital tools and technologies into your business operations to streamline processes, reach more customers, and stay competitive in the digital age.

Providing exceptional customer service is crucial for building brand loyalty and retaining customers. Listen to customer feedback and continuously improve your offerings based on their needs.

Regularly update yourself on relevant laws and regulations that affect your industry. Complying with legal requirements ensures your business operates smoothly and avoids unnecessary penalties.

Starting a small business in the Philippines is a rewarding endeavor if done strategically. By understanding the market, having a solid business plan, and embracing innovation, you can position your business for success in 2023 and beyond.

Remember, building a business takes time and effort, so stay persistent and continuously adapt to market changes. With determination, dedication, and the right approach, you can turn your small business into a thriving enterprise in the vibrant and dynamic landscape of the Philippines. Best of luck on your entrepreneurial journey!

If you’re ready to take the leap into entrepreneurship in the Philippines, don’t hesitate any longer. Start working on your business idea, conduct market research, and create a solid business plan. The opportunities await you – make your mark in the Philippines’ business landscape today!

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Sun, Sand, and Startups: Your Guide to Starting a Business in the Philippines

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Starting a business in the Philippines can be as exciting as a day at the beach, where sun, sand, and startups meet to create a vibrant entrepreneurial landscape. This tropical paradise offers not only natural beauty but also a cost-friendly labor market abundant in skilled and qualified professionals. With access to a larger global market and excellent connectivity with neighboring nations, the Philippines is an enticing destination for budding entrepreneurs. 

Before you can get started, there are some essential steps and strategies you’ll need to know, such as navigating the local regulations to finding the right location and financing options. Read on to learn how to start a business in the Philippines.

Can Foreigners Start a Business in the Philippines?

Yes, foreigners can start a business in the Philippines, and the country welcomes foreign investors and entrepreneurs. However, there are certain restrictions and guidelines to follow that have been discussed below:

Business Ownership: Foreigners can own up to 100% of certain types of businesses in the Philippines. These are typically export-oriented or those involving advanced technology and high capitalization. However, some industries may require a Filipino partner or limited equity participation by foreigners.

Investment Options: To start a business, foreign investors can choose between different business structures, including sole proprietorships, partnerships, corporations, or branches of existing foreign corporations. Each has its requirements and implications for ownership and liability.

Registration and Permits: Registering a business in the Philippines involves several steps. You’ll need to register your business name, obtain necessary permits from local government units, and secure licenses from relevant government agencies. The Philippines’ Department of Trade and Industry (DTI) and the Securities and Exchange Commission (SEC) are crucial authorities for business registration.

Employment of Foreigners: If you plan to hire foreign employees, you’ll need to secure the appropriate work permits and visas for them.

Why Should You Consider Starting a Business in the Philippines?

If you’re seriously contemplating starting a business in the Philippines there are some major advantages. But there are also some disadvantages you’ll want to know about before making a decision. 

Cost-Friendly Labor Market: The Philippines offers a skilled and educated workforce at competitive labor costs. This can be a significant advantage for businesses looking to cut operational expenses.

Access to a Larger Global Market: With its strategic location in Southeast Asia, the Philippines provides easy access to a vast regional and global market. It’s a gateway for businesses looking to expand into Asia.

Strong Economic Growth: The Philippine economy has been steadily growing, offering a stable environment for businesses. The government actively promotes foreign investments through incentives and support programs.

Cultural Compatibility: English is widely spoken and is the second official language of the country. This linguistic compatibility makes communication with the local workforce easier for foreign businesses.

Disadvantages

Bureaucracy and Red Tape: Dealing with government regulations and bureaucratic processes can sometimes be time-consuming and complex, especially for newcomers.

Infrastructure Challenges: While major cities like Manila offer good infrastructure, rural areas may have limited access to reliable utilities and transportation.

Competition: Depending on your industry, you may face stiff competition from both local and international businesses.

Cultural Differences: Understanding and adapting to the local culture and business etiquette can be challenging for foreigners.

11 Steps to Start a Business in the Philippines

There are a few steps that you need to follow to start a business in the Philippines. Each of these stages plays a critical role in setting up your business for success:

1. Research and Planning

The first step in starting any successful business venture is to do your homework. Begin by identifying your business idea or concept. What product or service will you offer? Next, conduct thorough market research specific to the Philippines. This research will help you assess the demand and viability of your business in the local market. Understanding your potential customers and competitors is crucial at this stage.

2. Develop a Business Plan 

Once you have a clear vision of your business, it’s time to put it all down in a comprehensive business plan. This plan should be detailed and cover various aspects of your business, including your target market, competition analysis, marketing strategies, financial projections, and operational plan. A well-structured business plan not only serves as a roadmap for your business but also helps in securing financing if needed.

3. Pick the Right Location

Location matters in business, and finding the right one is essential. Before deciding on a location, you’ll need to take into account factors like proximity, visibility, and accessibility to your target audience. You’ll need to find a suitable location for your business operations and make sure to secure any necessary leasing agreements or permits required by local authorities. This step ensures that your business has a physical presence in a strategic place.

4. Secure Funding

To make your business dreams a reality, you’ll need to find the cash to make it happen. You can either dip into your personal savings if you’ve got enough stashed away, or you could explore loans, grants, or even investors to fund your venture. Each of these options has its pros and cons, so it’s you’ll want to carefully consider which one suits your business needs and financial targets.

5. Register Your Business

Registering your business is a vital legal requirement that solidifies your venture’s legitimacy. Depending on your chosen business structure , there are specific registration processes in the Philippines. Let’s explore these options:

Sole Proprietorship

A sole proprietorship is the simplest form of business structure in the Philippines. In this setup, you are the sole owner and responsible for all business decisions. Registering a sole proprietorship involves securing a Department of Trade and Industry (DTI) certificate, which legally allows you to operate your business under your chosen business name.

Partnership

If you’re teaming up with others to run your business, a partnership structure might be the way to go. Partnerships can either be general or limited, each with its own set of rules and responsibilities. Registering a partnership requires drafting a notarized partnership agreement and securing necessary permits from local government units.

Corporation

For a more complex and scalable business, forming a corporation might be the right choice. A corporation is a separate legal entity from its owners, offering benefits like limited liability. Registering a corporation involves filing articles of incorporation with the Securities and Exchange Commission (SEC) and complying with various regulatory requirements.

6. Obtain Necessary Permits and Licenses

To operate legally, your business will require permits and licenses. These are typically obtained from local government units (LGUs) and may include Barangay (village) clearance, depending on your business type. Various regulatory bodies may also be involved, depending on the nature of your business. Ensuring that you have all the necessary permits and licenses is crucial to avoid any legal complications down the road.

7. Tax Registration

Ensuring tax compliance is a fundamental responsibility of any business, regardless of its size or industry. Navigating the intricacies of the Indian tax system , which is both complex and subject to frequent changes, requires staying informed about the latest regulations. Here, we highlight some of the essential taxes that businesses in the Phillippines should know about:

Value Added Tax (VAT): VAT is a consumption tax that applies to most goods and services sold in India. The applicable VAT rate varies depending on the specific type of goods or services being sold.

Income Tax: Income tax is levied on the profits earned by both businesses and individuals. The rate of income tax is determined by the amount of income generated.

Employee Withholding Taxes: Employers have a responsibility to withhold taxes from their employees’ salaries. The amount of tax to be withheld is contingent upon the employee’s income level and filing status.

Goods and Services Tax (GST): GST is a relatively new tax system that has replaced VAT and other indirect taxes in India. It operates on a destination-based principle, which means that the tax is paid in the location where the goods or services are consumed.

8. Open a Bank Account

It’s a wise move to establish a dedicated business bank account . This ensures that your personal and business finances remain separate, simplifying financial management. Having a distinct business account also enhances your business’s professionalism and streamlines financial record-keeping.

9. Set Up Your Office

Creating a functional workspace is vital for your business’s daily operations. This involves acquiring the necessary equipment, facilities, and utilities to support your work. Whether it’s a physical office or a home-based setup, you’ll want a workspace conducive to productivity.

10. Hire Your Staff

Depending on the size and nature of your business, you may need to hire employees. It’s essential to understand the labor laws of the Philippines to ensure compliance. This includes providing mandatory benefits and registering employees with the Social Security System (SSS), PhilHealth, and Pag-IBIG. Complying with labor regulations ensures the well-being of your employees and keeps your business on the right side of the law.

11. Promote Your Business

Promoting your business effectively is crucial to getting the word out about your products and services. But how do you go about it? Fortunately, there are various avenues to explore. Alongside traditional marketing methods, the emergence of social media has opened up a wealth of new opportunities for building brand awareness.

Your Path to Success 

As you begin this journey with the allure of the Philippines’ beauty, remember that building a successful business here takes planning, following the rules, and managing money well. 

Now, if you’re looking for expert assistance to streamline your business formation, compliance, and bookkeeping needs, consider doola . With doola’s specialized services, you can simplify your journey as we offer comprehensive support for business formation, helping you secure permits and licenses hassle-free. 

Moreover, our expertise in tax compliance ensures you meet all tax obligations, keeping your business on the right side of the law. And when it comes to bookkeeping, doola’s professionals can help you maintain accurate financial records, ensuring the financial health of your business.

Do I need to have a physical office in the Philippines to start a business?

While a physical office isn’t mandatory, you must have a registered business address in the Philippines for legal purposes.

What are the tax obligations for businesses in the Philippines?

Tax obligations include Value Added Tax (VAT), income tax, and other taxes depending on your business type. Complying with them will keep you legally safe.

Do I need to hire local employees when starting a business in the Philippines?

Hiring local employees may be required depending on your business type or size. Compliance with labor laws and benefits is necessary if you hire locally.

How can I protect my intellectual property rights in the Philippines?

To protect intellectual property, register your trademarks, patents, and copyrights with the Intellectual Property Office of the Philippines (IPOPHL).

What are the typical challenges faced by new businesses in the Philippines?

Challenges include navigating bureaucracy and competition, finding the right location, and understanding local market dynamics. Thorough research and planning are key to overcoming these hurdles.

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How to create the perfect business plan in 10 steps

Every business needs a plan. But how do you write one? Here are 10 steps to help you get it right.

What is a business plan?

A business plan is the roadmap for a business and shows the overall strategy, goals and vision for success. It shows how a business operates and how it will make money.

It’s different from a business proposal which is a pitch to sell a product or service to a prospective customer.

Why do you need a business plan?

You may be wondering why you need a plan in the first place. After all, you have a clear idea in your mind about what you want to achieve. You know the market, you have the necessary skills. So why do you need a plan?

There are many good reasons. Here are just a few of them:

• To clarify your ideas: Writing something down gives it structure and substance. Your ideas will be clearer on paper than in your head.
• To discover and solve problems: The business idea you have in mind may have some holes – you might not have covered everything. This will become much more apparent when your words are on the page.
• To get feedback from others: A properly written business plan can be shared with trusted people to get their advice.
• As a formal document: Banks, investors, accountants and lawyers will want proof that you’re serious about your business. A written plan will provide that proof.
• To guide you as your business grows: A good business plan will keep you on track and focused, even as day-to-day work becomes a distraction.

If you’ve never written a business plan before, it can be a daunting prospect. But these 10 steps will help you create the perfect business plan.

1. The executive summary

This is where you describe your company and the product or service that it will sell. This must be brief, to catch and hold people’s attention.

Try to describe the goal and mission of your business in just a couple of sentences. Work hard at this and try to make it memorable.

Treat this section as an elevator pitch document – it should be succinct and easy to remember.

You can read more about how to create the executive summary in our guide What is an Executive Summary in a Business Plan?

2. Who are your customers?

Do you have a clear idea of the type of people (or businesses) who will buy your product or service? If not, think carefully until you do.

This is one of the first questions any investor will ask you about your business plan. Have your answers ready.

• Know whether your customers will be consumers or businesses. If they are businesses, who will you target within those companies? Maybe it’s the salesperson, or perhaps it’s the CEO?
• Determine whether you'll have regular clients or one-off buyers.
• Make sure you’ve actually spoken to some of your potential customers.

3. Evaluate the target audience

There’s no room for guessing here. You need to identify the people or businesses who will buy from you. Think about the following:

• Demographics – such as age, gender and social status
• Firmographics – includes size of the company, revenue of the company and services or products of the company
• Location – perhaps a specific area, town, or even country
• Profession – maybe you’re targeting accountants, police or lawyers, for example
• Groups – such as people with shared interests or habits

The better you evaluate your target audience, the more comprehensive your business plan will be.

4. What are your opportunities?

Successful businesses think big. You might be starting small, but you don’t have to stay that way. So write down the possible opportunities for your business as it grows.

For example, perhaps you’re planning to start by selling over the internet. That’s great, but how will you get traffic to your site? How will people find you online? Will you need salespeople? If not, how will you convince people to buy from you?

As the business grows, is there scope for a bricks-and-mortar retail outlet? What other opportunities will you have if your business grows as planned?

5. Understand the competition

Every business has competition. If you don’t mention yours, investors will think you’re unprofessional – or just plain naive. Be thorough, and list all your existing and potential competitors:

• Who are your direct competitors – those selling the same products as you?
• Who are your indirect competitors – those whose market overlaps yours?
• What will prevent other companies competing with you – what are the barriers to entry?
• What is your USP (unique selling proposition)? In other words, what’s your point of difference that makes you different from your competitors?

That last point is important. You need to explain how your business will differentiate itself from all the others. That might be based on price, service, quality, range or value. Make sure you spell it out.

6. Build a simple financial plan

All business plans should contain some financial information. This should include the overall costs of setting up your business. For example:

• Cost to make or buy products
• Costs for labour and manufacture, including raw materials
• Employee costs, especially for service businesses
• Distribution and marketing costs
• Fixed and variable overheads

Good accounting software will help you create a draft financial model. We’ll look into this in more detail in a future guide. For now, talk to your accountant or bookkeeper for help and advice.

7. Include an outline marketing plan

For this section of your business plan, you need to think about the five ‘Ps’:

• Pricing – how will you price the end product?
• Positioning – how does your product or service fit into the market?
• Promotion – what channels will you use to attract and communicate with customers?
• Profit – how much do you expect to make per item sold?
• Place – what are your sales outlets?

8. Plan your operations

Put your vision to one side for a moment. What are the daily tasks that need to be done when running the business? Include all business processes such as manufacturing and packaging. Try to cover all departments too, including sales and customer service.

9. Get the right people

This is one of the most important factors. Think about who you want to hire . How will you find people whose skills complement yours? And how will you convince them to work for you?

Also think about who you want as your business advisors. You'll need people you can trust, to guide and mentor you at times when you need it.

10. Simplicity is the key

Keep it simple. Complex and long documents won’t be read – either by you or by potential investors. A business plan should be brief, relevant and focused (you can use our free business plan template ).

If you find yourself getting carried away while writing, stop and take a break. Then go back and edit what you’ve written. Shorter is better. The core of a good business plan should be just a few pages long.

Plan your business around your strengths

As you write your business plan , keep in mind your strengths – and also any areas for improvement. This will help you construct a plan that makes the most of your abilities, while still being realistic. That's more likely to convince investors that you're serious.

Your business plan is a roadmap for your business – but it's not set in stone. Review it at least once a year and make changes if necessary.

Above all, keep getting feedback from your advisors – official and unofficial ones. With their help, you'll create the perfect business plan that takes you where you want to go.

Xero does not provide accounting, tax, business or legal advice. This guide has been provided for information purposes only. You should consult your own professional advisors for advice directly relating to your business or before taking action in relation to any of the content provided.

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Learn more about Business Plan in Philippines

Using a business plan in the Philippines is crucial for several reasons. Firstly, a business plan serves as a roadmap that outlines the goals, strategies, and financial projections for a business venture. It helps to clarify the direction and vision of the business, ensuring that all stakeholders are aligned. Additionally, a well-developed business plan is often required when seeking financing from banks, investors, or government institutions. It demonstrates the feasibility and potential profitability of the business, increasing the chances of obtaining funding. Themis Partner helps you draft the best business plan for your company while being fully compliant with Philippines Laws.

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Table of contents, what is a business plan, when do you use business plan for your business, why is a business plan important for success, what does a business plan include in the philippines, how to make a business plan for the philippine market, what are the tips for writing a business plan for startups, how important is market research in developing a business plan, how to incorporate financial projections into my business plan.

A business plan is a comprehensive document that outlines the goals, strategies, and financial projections of a business. It serves as a roadmap for entrepreneurs, providing a clear vision of their business idea and how they plan to achieve success. A well-crafted business strategy roadmap includes sections such as an executive summary, company description, market analysis, marketing strategies, organizational structure, financial projections, and more. It helps entrepreneurs articulate their business concept, understand their target market, identify potential challenges, and plan for growth and sustainability.

Business plans are typically used in various scenarios throughout the lifecycle of a business. They are essential when starting a new venture as they provide a blueprint for success, helping entrepreneurs secure funding from investors or financial institutions. A business plan is also beneficial when seeking partners or collaborators, as it outlines the business’s potential and growth prospects. Moreover, established businesses can use these strategic roadmaps to strategize for expansion, diversification, or entering new markets. Additionally, a strategic roadmap can be periodically reviewed and updated to assess progress, make necessary adjustments, and attract new investors or stakeholders.

A comprehensive business plan is vital for success in the Philippines due to several reasons. Firstly, it helps entrepreneurs gain a deep understanding of the local market dynamics, consumer behavior, and competition. The Philippine market is diverse and rapidly evolving, making market knowledge crucial for business sustainability. A well-researched business strategic roadmap allows entrepreneurs to identify and capitalize on market opportunities, mitigate risks, and make informed decisions. The business strategic roadmap is essential for attracting investors in the Philippines. Investors often require a thorough strategic roadmap to assess the viability and potential of a venture. A comprehensive plan demonstrates professionalism, preparedness, and a strategic approach to business development. It provides investors with the necessary information to evaluate the financial projections, growth prospects, and return on investment. A strategic roadmap serves as a roadmap for entrepreneurs, outlining their goals, strategies, and milestones. It helps in aligning the efforts of the entire organization and provides a basis for decision-making. A well-structured plan enhances operational efficiency, resource allocation, and risk management, ultimately contributing to the overall success of the business in the dynamic Philippine market.

By incorporating these key elements into your business plan, you can create a comprehensive and tailored document that addresses the specific needs of ventures in the Philippines. This ensures that your document aligns with the local market dynamics, consumer preferences, and regulatory environment, increasing the chances of success.

1. Executive Summary: This section provides a concise overview of the business, its mission, vision, unique selling proposition, and key highlights.

2. Company Description: Describe the nature of the business, its legal structure, products or services offered, and the target market in the Philippines.

3. Market Analysis: Conduct a thorough analysis of the Philippine market, including market size, growth trends, customer demographics, and competitive landscape.

4. Marketing and Sales Strategies: Outline your marketing and sales approach, including pricing strategies, distribution channels, promotional activities, and customer acquisition plans.

5. Organizational Structure: Define the organizational structure of your business, including key management personnel, their roles, and responsibilities.

6. Product or Service Offering: Provide detailed information about your products or services, including their unique features, benefits, and competitive advantages in the Philippine market.

7. Financial Projections: Include financial statements, such as income statements, balance sheets, and cash flow projections, to showcase the financial feasibility and profitability of the venture.

8. Risk Assessment and Mitigation: Identify potential risks and challenges that may impact your business in the Philippine market and outline strategies to mitigate them.

9. Implementation Plan: Outline the steps and timelines for executing your document, including key milestones and resource requirements.

Step 1. Executive Summary

Provide an overview of your business idea, including your goals, target market, and unique value proposition for the Philippine market.

Step 2. Market Analysis

Conduct comprehensive research on the Philippine market, including customer demographics, buying behaviors, cultural nuances, and trends. Identify market gaps, competition, and potential opportunities specific to the Philippines.

Step 3. Business Concept and Value Proposition

Clearly articulate your business concept and how it addresses the needs of the Philippine market. Highlight your unique value proposition and how it differentiates you from competitors.

Step 4. Marketing and Sales Strategy

Outline your marketing and sales strategies tailored to the Philippine market. Define your target customers, pricing strategy, distribution channels, and promotional activities. Consider leveraging digital marketing platforms, local partnerships, and culturally relevant marketing approaches.

Step 5. Operational Plan

Detail the operational aspects of your business, including location, facilities, equipment, and production processes. Consider local regulations, permits, and licensing requirements that Philippines Laws may apply.

Step 6. Organization and Management

This document may indicate stability for your firm by demonstrating that you have planned ahead of time so that any issue can be resolved easily and quickly. This is very crucial for banks and other creditors who may be interested in investing in your firm.

Step 7. Product or Service Offering

Provide a comprehensive description of your products or services and how they meet the needs of the Philippine market. Highlight any customization or localization efforts specific to the local preferences and cultural context.

Step 8. Financial Projections

Develop realistic financial projections, including sales forecasts, expense estimates, and projected profitability. Consider local market conditions, pricing dynamics, and costs specific to the Philippine market.

Step 9. Risk Assessment and Mitigation

Identify potential risks and challenges that your business may face in the Philippine market. Develop strategies to mitigate these risks, such as contingency plans, partnerships, or diversification strategies.

Step 10. Implementation Plan

Create a step-by-step action plan outlining the tasks, timelines, and responsibilities for launching and operating your business in the Philippine market. Include milestones and measurable goals to track your progress.

ℹ️ Themis Partners legal experts also help you in your company registration so it helps you select the right type of company and ensure a full compliance to the Philippine Laws.

Writing an effective business plan for startups in the Philippines requires a focused and strategic approach. Begin by clearly articulating your business concept, value proposition, and target market, emphasizing what sets you apart from local competitors. Conduct thorough market research to understand customer needs and preferences, and tailor your products or services accordingly. Outline your marketing and sales strategies, incorporating digital marketing techniques and innovative promotional campaigns to reach and attract your target customers. Showcase your understanding of the local competitive landscape and explain how your startup will gain a competitive edge. Present a comprehensive financial plan with realistic revenue projections, expense forecasts, and a clear path to profitability. Highlight the qualifications and experience of your team, demonstrating their commitment to the success of the startup. By following these tips, you can create a compelling strategic roadmap that resonates with potential investors and stakeholders in the Philippines.

Market research and analysis play a critical role in developing a business plan for the Philippine market. It provides valuable insights into customer preferences, market trends, competition, and industry dynamics. Here’s why market research is important:

By incorporating comprehensive market research and analysis into your business plan, you demonstrate a thorough understanding of the Philippine market. This increases the credibility of your plan, enhances its strategic relevance, and positions your business for success in the dynamic and competitive Philippine market.

Financial projections and forecasting play a vital role in a business plan for ventures in the Philippines, providing a clear understanding of the financial feasibility and profitability of your business. To incorporate financial projections into your plan, develop realistic revenue projections based on market research and sales estimates. Estimate expenses comprehensively, considering operational costs, marketing expenses, and other relevant expenditures. Create a cash flow projection to track cash inflows and outflows, and conduct a break-even analysis to determine the point of profitability. Determine your financing needs and outline plans for raising capital, while considering sensitivity analysis to assess potential market fluctuations. By including comprehensive financial projections in your strategic roadmap, you demonstrate financial acumen, attract potential investors, and provide a strong foundation for decision-making and resource allocation in the Philippines.

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17 Business Strategies to Grow & Scale your Business in the Philippines

Last Updated – Jan 22, 2024 @ 10:42 am

The goal of every business is to achieve lasting growth. Unfortunately, many entrepreneurs don’t realize the importance of business strategies to help them hit their targets. 

Business strategies are powerful tools that help you take on inevitable challenges. It also serves as your guide in making important organizational decisions.

However, creating a solid business strategy to set you up for growth and success is no easy feat. It takes time, effort, and critical thinking.

In this article, we will let you in on the most effective business strategies that will inspire you to take your company to new heights. 

What is a Business Strategy?

A business strategy covers the plan of action of your company to achieve your vision and objectives. It guides your decision-making processes and improves your stability in today’s hyper-competitive market. 

You should consider your business strategy as the roadmap of your business. Without it, you can’t achieve your goals, and you will end up getting lost in the crowd. 

Elements of a Good Business Strategy

Here are the important components of a business strategy. 

Vision, mission, and values

Your goal as a leader should be to enable everyone in your company to share a collective mission and vision. These documents come in the form of a short written statement.

But what do these focus on?

First, your vision must be future-oriented and geared towards your aspirations and purpose.

On the other hand, your mission is focused on your investors, customers, and employees. Meanwhile, your values may cover environmental awareness, mutual respect, and many more. 

With all these documents in place, you can create better instructions for what your staff and organization leaders need to do, and which person is responsible to cover each responsibility.  

SWOT Analysis

Any entrepreneur knows how crucial a SWOT analysis is. This stands for:

S – strength W – weaknesses O – opportunities T – threats

When you dedicate time and effort to perfecting your SWOT analysis, you can easily find organizational, marketing, and financial gaps to fill, among many others.

More than that, you can also take advantage of the data to stand out from your competition. 

Objective setting

When it comes to developing a business strategy, you need to come up with a series of objectives you need to hit. These objectives typically need to be achieved in a 3-5 year period. 

Strategic objectives cover the major goals of your company, and it also clearly details what your company should do to be able to achieve these goals.

As always, do not forget to communicate the goals to everyone so they are operating under the same assumption. 

Resource allocation

Another important element of a good business strategy is resource allocation. This does not only cover capital resources, but also human resources.

For this element, you need to carefully plan, manage, and assign resources to help reach your goals. To maximize your likelihood of success, you must learn to allocate these resources smartly.

You must understand the importance of articulating all the operational details of the work that needs to be done to ensure you amplify your efficiency.

For this element, assign people clear duties. In the end, this will save time and effort. 

Measurement

You can’t simply take a look back at your business strategy a couple of years from now and say you’ve achieved your goals.

You need data to back up your claim. Because of this, you must find a way to track your company’s outputs and evaluate your performance.

This will help you stay on track of your goals, deadlines, and budget. 

Importance of Business Strategies

To help you get a clearer picture of how crucial business strategies are, here’s a look at their importance.

It establishes direction

Business strategies set the direction your company has to take and enable you to create goals to work on.

With a clear direction in sight, you won’t be confused about actionable steps you need to take.

For instance, your goal may be to become the biggest athleisure brand in the Philippines, but your business strategy will lay out everything you need to do to make your dream come to life.

It will make you unique

When you don’t have a business strategy, one of the habits you may develop is looking at your competitors and copying their best practices.

However, this will only result in competitive convergence, and it will be hard for your customers to set you apart from other brands.

With a business strategy in place, you can follow a unique plan that will make it easier for you to stand out no matter how saturated the market is. 

It guides you in decision making

When you don’t have business strategies, you will not have a sense of direction and purpose for your company. This will make it hard to assess certain decisions.

For example, you may think investing in research for a new product makes sense to increase your sales , but it may only do you more harm than good because you don’t have enough manpower yet.

In a nutshell, a business strategy will help you set apart good and bad decisions.

It helps with job satisfaction

Your business strategy is not just important for your customers and company leaders, but all your staff.

This important document will enable your employees to stay more focused and increase their satisfaction because they understand their contribution to your company.  

It enables you to measure success

Without a clear business strategy, you will find it hard to assess whether or not you’ve achieved your targets.

A business strategy must include your process in measuring what you have achieved. This way, you can maintain focus, and ensure that you are moving forward.

17 Business Strategies to Grow & Scale your Business

Don’t know where to start when it comes to creating a business strategy for your business? Check out some examples below to inspire you. 

1. Cost leadership

For this type of business strategy, your goal is to ultimately project yourself as the most affordable provider of a product or commodity.

This is very effective in drawing in more customers, although you constantly need to work hard to reduce the cost of every single thing involved in your operations.

A lot of entrepreneurs falsely think that this business strategy is not good because the returns are low.

However, you can still maintain great returns after you keep internal efficiencies in check. This can be done by establishing rigid budget controls, and scaling your facilities to produce more items at a lower cost. 

2. Cross-selling

One of the most effective business strategies you can work on is to focus on selling more products to your customer. Cross-selling is a great strategy especially if you sell online .

By increasing the number of products you sell to a single customer, you can increase their spending. Even a single additional item can give you more profit without making an effort to acquire a new customer.

For example, if you sell notebooks, you can diversify your product list to cater to other office or school supplies. 

3. Technological advantage

This strategy will help you release better products, which will keep your customers happy and improve your sales.

Having a strategy that focuses on technological advantage means investing a significant amount of your capital in research and development .

This can also include acquiring software to gain access to an exclusive technology that you can leverage. 

4. Targeting a specific generation

If you have a niche product, you can target a specific generation. This is an awesome strategy used by some of the largest companies in the world.

For example, you can target the young market which includes Gen Z and millennials if you are selling Y2K-inspired clothes.

This can be done by tailoring your content and products to match their every need and desire.

Going back to the example, you can leverage videos on TikTok to market your products because the younger generation are mostly present in the said platform.

5. High prices

This is the opposite of the cost leadership strategy. You will be surprised at how much people are willing to pay to get the product they want.

By hiking up your price and positioning your brand this way, you can give aspirational value to your products. This will help you get more profit.

6. Offer innovative products

This business strategy is recommended for certain industries such as technology.

For this strategy, you need to distinguish your product or service by creating a cutting-edge or unique feature.

By making your product more unique, people will want it because it can give them something they cannot get from other brands. 

With this strategy, you can also charge a higher premium to offset the cost of your unique product. You can make yourself stand out through design, quality, or even your customer service.

7. Improve customer retention

By now, you may already know that retaining customers is more affordable than acquiring a new one. This is an awesome business strategy to follow if you want to increase your profitability by building lasting relationships.

Increasing customer retention can be done in a lot of ways such as offering innovative products, offering great customer support, providing personalized content, and rewarding loyal customers, among many others. 

8. Focus on customer service

This is an awesome business strategy if you want to stand out. Many companies are famous because they have built amazing customer service and support .

If you want to follow this strategy, you can focus on a more efficient call center, online support, or both.

By ensuring you offer an omnichannel approach to customer service, you can give your customers more flexibility.

9. Improve business sustainability

Your business strategy could focus on sustainability .

This can include reducing energy costs, implementing a recycling program, making sure you don’t ship out your products in plastic, and decreasing your overall carbon footprint .

You’ll be surprised at how much people are willing to rally behind brands that care for the environment. 

10. Creating a movement

Have you ever encountered a brand that has a cult-like following?

For example, take a look at Apple. You can pattern your business strategy on creating a movement.

This can be done by fostering an image that your products are not just aesthetically pleasing, but also life-changing.

Working hard to win over your customers is the trick to getting them excited about every product release. 

11. Establishing trust

Another business strategy that will help catapult you to the top is establishing trust.

Instead of shoving your products down your customer’s throats, you can take a different approach and educate your customers instead.

This will not only help you sell tons of products but also become a trusted figure in the industry. In turn, people will listen to what you are saying. 

13. Acquisition

For this strategy, your goal is to purchase or acquire another business. This is unique from other strategies mentioned on this list that simply focus on your company alone.

When you pursue acquisition, you can obtain highly skilled staff, and attract a bigger customer base.

This will also help you diversify your list of services and products , and lower your costs through shared budgets.

Keep in mind that this is a very complex strategy and you need financial and legal teams to ensure you don’t run into any issues. 

13. Selling a story

Think about Nike. While you may think the brand only sells shoes and sports apparel, it does more than that – it sells you a story.

After all, this is the ultimate way to communicate. For every pair of shoes, or every new technology they offer, they have a story that comes with it.

If you are creative enough, you can attach a compelling story to any kind of product.

Simply think about the most interesting things about your brand and what your audience finds appealing, and use this information to your advantage.

It doesn’t have to be tear-jerking, or goosebumps-raising, it just needs to be relatable. 

14. Digital marketing strategy

This type of business strategy is so popular that it doesn’t need an introduction.

This strategy covers everything about online marketing such as your lead generation on social media , SEO, content marketing, and many more.

When you ace this strategy, profit will immediately follow.

15. Public relations strategy

PR strategies are notoriously complex.

However, you need to get it right if you want to ensure your customers stay happy.

Acing your PR strategy will protect your brand image in the eyes of the media, your customers, employees, and stakeholders.

It will also make way for positive word-of-mouth advertising. 

16. Focus on an omnichannel approach

To keep up with today’s changing business landscape, you must prioritize having an omnichannel business strategy.

This includes your online store, social media profiles, email marketing, customer support…the list goes on. 

With this strategy, you can not only build brand awareness but also offer better and more flexible options for your target audience to purchase products and build a relationship with you.

Giving your customers access to your company in ways that are accessible and convenient for them is the best way to show them that they are valued.

17. Prioritize time efficiency

If you’re a small business owner, you are probably wearing too many hats.

But as you plan to grow your business through your business strategy, you also need to look at how tools and software can help you save time and effort, and minimize the risk of errors.

Related: Business Development 101

9 Tips on How to Develop a Business Strategy

Making your business strategy is a huge feat, and it’s easy to get overwhelmed. We’ve gathered some tips to keep in mind to make this undertaking easier.

1. Research thoroughly

Every business strategy should start with research.

• What are your competitors famous for?
• Are there services you need to implement soon?
• Are some of your products losing relevance?
• What areas of your business need to grow?
• What are your customers asking for?

Knowing all these things will give you insight into how to position your brand in the future. 

2. Go back to your mission

When you have a powerful mission statement, you are one step closer to creating an amazing business strategy.

Always remember that your business strategy should encapsulate what you do, what you want to achieve, and who you serve.

Use this information as a guide especially when you get overwhelmed.

3. Examine your competition

You can’t create a competitive business strategy if you don’t know about other brands in the market.

Be prepared to get to know these companies, and assess what sets you apart from them.

This tip doesn’t mean criticizing your competition, it just means knowing their strengths, and weaknesses.  

4. Know your audience

If you’re a huge company, you need to write several versions of your business plan depending on who the audience is – investors, venture capitalists, employees, or other stakeholders.

Keep the reader in mind when writing your business plan and marketing plan , then tailor them according to their relation to your company.

5. Be conservative in the data

Your business plan must contain projections and estimations.

If you are 100% sure that you will get a 60% market share in the next 2 years, it wouldn’t come off as realistic or credible, especially if you’re still starting and there are already big players in your industry.

Instead, make your projection more conservative.

6. Be realistic

It’s easy to get caught up with idealism when writing your business strategy.

However, being severely optimistic with your resources will only set you up for failure.

As much as you can, be realistic and assume that things will cost more, or take longer than anticipated. Through this, you can exceed your expectations. 

Related: Cost of Doing Business in the Philippines

7. Create an action plan

Creating and implementing your business strategy are not the same things. You need to create an action plan that will bring your business strategy to life.

This includes elements such as priority issues, metrics for measurement, roles and responsibilities involved, resources required, and many more. 

8. Adapt when needed

Your business strategy is not meant to be printed and then forgotten in a file cabinet.

It is a living document that is meant to change depending on the market condition and your unique situation.

Review your business strategy at least once every quarter and change as needed. 

Read Next: Essential Business Skills

9. Communicate it

Just because you and your managers know your business strategy does not mean every person in your team knows it, too.

Always communicate and repeat your business strategy. Do not assume that every staff member knows it by heart.

When every team member understands what you are working towards as a company, they can do their part better.

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About MJ de Castro

MJ de Castro is the lead personal finance columnist at Grit PH.

MJ started her career as a writer for her local government’s City Information Office. Later on, she became a news anchor on PTV Davao del Norte.

Wanting to break free from the shackles of her 9-to-5 career to live by the beach, she pursued remote work. Over the years, she has developed a wide specialization on health, financial literacy, entrepreneurship, branding, and travel.

Now, she juggles writing professionally, her business centering on women’s menstrual health, and surfing.

Education: Ateneo de Davao University (AB Mass Communication) Focus: Personal Finance, Personal Development, Entrepreneurship, & Marketing

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Pakistan PM Unveils Broader Plan to Sell Most State-Owned Firms

FILE PHOTO: View of a Pakistan International Airlines (PIA) passenger plane, taken through a glass panel, at Islamabad International Airport, Pakistan October 3, 2023. REUTERS/Akhtar Soomro/File Photo

By Asif Shahzad

ISLAMABAD (Reuters) -Pakistan will privatise all state-owned enterprises, with the exception of strategic entities, Prime Minister Shehbaz Sharif said on Tuesday, broadening its initial plans to sell only loss-making state firms to shore up its shaky finances.

The announcement came after Sharif headed a review meeting of the privatisation process of loss-making state enterprises (SOEs), according to a statement from his office, which discussed a roadmap for privatisation from 2024 to 2029.

"All of the state-owned enterprises will be privatised whether they are in profit or in losses," Sharif said, adding that offloading the companies would save taxpayers' money.

The statement didn't clarify which sectors would be deemed strategic and non-strategic.

The announcement came a day after an International Monetary Fund mission opened talks in Islamabad for a new long-term Extended Fund Facility, following Pakistan's completion of a $3 billion standby arrangement last month, which averted a sovereign debt default last summer.

Privatisation of loss-making SOEs has long been on the IMF's list of recommendations for Pakistan, which is struggling with a high fiscal shortfall and a huge external financing gap. Foreign exchange reserves are hardly enough to meet a couple of months of controlled imports.

The IMF says SOEs in Pakistan hold sizable assets in comparison with most Middle East countries, at 44 percent of GDP in 2019, yet their share of employment in the economy is relatively low. It estimates almost half of the SOEs operated at a loss in 2019.

PATCHY SUCCESS SO FAR

Past privatisation drives have been patchy, mainly due to a lack of political will, market watchers say.

Any organisation that is involved in purely commercial work can't be strategic by its very nature, which means there can't be any strategic commercial SOEs, former privatisation minister Fawad Hasan Fawad told Reuters on Tuesday.

"So to me there are really no strategic SOEs," he said.

"The sooner we get rid of them the better. But this isn't the first time we have heard a PM say this and this may not be the last till these words are translated into a strategic action plan and implemented."

Islamabad has for years been pumping billions of dollars into cash-bleeding SOEs to keep them afloat, including one of the largest loss-making enterprises Pakistan International Airline, which is in its final phase of being sold off, with a deadline later this week to seek expressions of interest from potential buyers.

Pakistan has listed 25 entities and assets on its privatisation list, including the PIA. A majority of the entities are in the power sector, including four power plants, two of which are over 1,200MWs, as well as 10 generation and distribution companies.

The list also includes the valuable Roosevelt hotel in New York's Manhattan and two insurance companies.

The pre-qualification process for PIA's selloff will be completed by end-May, the privatisation ministry told Tuesday's meeting, adding discussions were underway to sell the airline-owned Roosevelt Hotel in New York.

It said a government-to-government transaction on First Women Bank Ltd was being discussed with the United Arab Emirates, and added that power distribution companies had also been included in the privatisation plan for 2024-2029.

"The loss-making SOEs should be privatised on a priority basis," Sharif said.

(Reporting by Asif Shahzad; Editing by Tom Hogue, Jacqueline Wong, Kim Coghill and Christina Fincher)

Copyright 2024 Thomson Reuters .

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Tata Steel strike moves closer as union secures backing for action

The steelmaking union, Community, accuses the company of bullying and threats as it begins consultations with members on how best to fight plans for thousands of job losses.

Business reporter @SkyNewsBiz

Thursday 9 May 2024 18:30, UK

The prospect of a strike across Tata Steel's UK operations has gained further traction after a key union secured support for industrial action.

Community, which has more than 3,000 members, said 85% voted in favour of fighting the India-owned company's plans for up to 2,800 job losses , the majority of them at the country's biggest steelworks in Port Talbot, South Wales.

Tata confirmed last month it was to press ahead with the closure of the blast furnaces at the plant, replacing them with electric arc furnaces to reduce emissions and costs.

In doing so, the company rejected an alternative plan put forward by the Community, GMB and Unite unions that, they said, would raise productivity and protect jobs across the supply chain.

They argued that Tata's proposals would rid the UK economy of its last remaining "virgin" steelmaking facility and commit thousands of jobs to the scrap heap for no reason.

Members of Unite had already backed the prospect of industrial action.

Alun Davies, national officer for steel at Community, said of its vote: "Today our members delivered their verdict on Tata Steel's job cuts plan, and they have voted to demand a better deal for the workforce.

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"Community balloted more than 3,000 members across all Tata Steel UK production sites, and more than 85% have voted for industrial action.

"It should be noted this resounding mandate has been delivered in spite of the company's bullying and unacceptable threats to slash redundancy payments.

"We will now be consulting our members on next steps, and we urge Tata to reconsider their position and get back around the table to head off a major industrial dispute."

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A Tata spokesperson responded: "Following the announcement in January of the company's plans to invest £1.25bn and to restructure the UK business, we started a formal information sharing and consultation process with our Trades Union colleagues, which continues in an open, collaborative and constructive fashion.

"On 22 March, we put forward a significantly enhanced, comprehensive package of support for employees impacted by the proposed transformation, which we have further added to this week - a commitment of £200m.

"We are naturally disappointed that while consultation continues, some Community Union members across Tata Steel UK have indicated that they would be prepared to take industrial action up to and including strike action if an agreement cannot be reached on a way forward for the business and its employees.

"While the £1.25bn commitment with the UK government will ensure a long-term viable future for low-CO2 steelmaking in the UK, our current business is unsustainable, reporting losses of more than £1m a day."

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