The Philippines is one of the fastest-growing economies in Asia. Although it still has a long way to go before it reaches its full potential, more opportunities are available for Filipinos looking to start their businesses. If you are planning to start a business in the Philippines, here are tips on building a successful business in the Philippines.
1. Research the Industry You Are Interested In
Conduct thorough market research on the industry you are interested in. Find out the strengths and weaknesses of your competitors, identify potential risks associated with starting a business, look at market trends, sales volume, profit margin, etc. Doing so will help you better understand the business environment you are about to enter into.
2. Seek Professional Help
Registering your business with the national government has its own set of rules and requirements. Business laws also vary from region to region, depending on where you are doing business. You should seek professional help when starting your business to avoid legal pitfalls. For instance, most barangays require companies with annual sales of more than P100,000 to hire a local accountant during the registration process for their Business Name Registration – otherwise known as an application for Authority to Use a Fictitious Name (ATUAN).
3. Choose Your Location Wisely
Where you decide to run your business will impact how successful it can be. In the process of finding out how to start a business in the Philippines ensure that you find a location that is accessible and visible so that customers can easily access the business. The location of your business should also be close to suppliers.
4. Form a Business Plan
Having a well-written plan is essential for building your business. This will help you determine which strategies to implement, the amount of capital to be raised, potential risks that may arise while running your business, etc. It can decide if opening another branch in another location is feasible or not. Your business planning should include the following: mission statement, product strategy, marketing strategy, operations strategy, and financial projections.
5. Know the Market
The more you know your potential customers, the better. You need to understand what motivates them to buy and their spending behavior. If you are planning to open your business where consumers can easily access it, make sure that there is enough market base to patronize your business. If not, building an effective marketing campaign through social media or other means should be part of your strategy.
6. Choose Your Business Structure Wisely
There are three (3) main structures for businesses – sole proprietorship, partnership, and corporation. Talk to professionals about the benefits of each type of structure before deciding which one is right for you. The structure of your business should also comply with the laws of the land. For example, in the Philippines, a Corporation must have at least seven incorporators.
7. Choose and Register Your Business Name Wisely
Registering your business name can be tricky as there are rules and regulations to adhere to. Make sure that the name of your business is not similar to those of existing companies in your locality. The name of your business should also be considerate of your target market.
When it comes to starting a business in the Philippines, one of the most critical factors is your knowledge of this country’s culture and laws. Knowing the basics can help you ease through your business journey and avoid legal nightmares. Making sure that you know how to deal with the bureaucracy and regulations of doing business in this country can save you time, money, and effort.