It has long been established that entrepreneurship provides higher opportunities for wealth accumulation than employment. However, sometimes, the risks associated with starting a business may discourage people who then end up taking the less financially re-warding, but safer employment route. After all, starting a business is no guarantee of success. Getting it to survive is, in fact, very hard. According to the Association of Filipino Franchisers, Inc., independent businesses have a 12 percent success rate. In short, for every Henry Sy, Sr. who rose to become the Philippines’ richest man, there are nine others who should not have quit their day jobs.
The desire to minimize risk has moved Filipinos towards the franchising model, according to Glen De la Peña, executive director of the Center for Small Entrepreneurs (CSE).
De la Peña observes that while proven franchises provide good returns, the same model also limits potential for growth. She advises aspiring entrepreneurs to try out other business models and explore industries that have yet to be fully harnessed by Filipinos. Here are some business ideas worth exploring:
ONLINE-BASED RETAIL BUSINESSES
De la Pena say that the CSE has been advocating for local entrepreneurs to explore opening online shops. Lower cost is the primary come on; all you need is a laptop and the internet. Aside from low capital requirements, its potential for customers is also enticing because websites are accessible anywhere.
While the sector is dominated by big companies, this option is open to highly skilled professionals who can open their own consultancies for individual customers or corporations. The services can range from providing English instructions for foreigners to accounting and auditing work. You can start small, and provide services on your own then steadily grow the business.
EXPORT OF LOCAL CRAFTS AND FOOD ITEMS
Foreigners are as fascinated with our local products as much we are with theirs. While we may take those items for granted, De la Pena thinks those can fetch a good price in international markets. She points to woven products from the provinces among the items that can be popular abroad. Local delicacies are also products that could possibly enjoy success if brought outside the Philippines. The export industry, however, is a tough field to play on. Fortunes here are as dependent on the peso’s fluctua¬tion as much as on the quality of the products. As the Bangko Sentral ng Pilipinas frequently says, the competition is global so local exporters need to step up their game by improving quality, accelerating turnaround and searching for new products and markets to stay relevant and profitable.
SMARTPHONE APP DEVELOPMENT
This provides numerous opportunities for enterprising techies to develop mobile apps that cater to the local market. And while this has yet to come, local developers should already take advantage of the massive global market that is always on the lookout for hot new apps.
With leaner protein and a high amount of unsaturated fat, goat meat or chevon is said to be healthier than the traditional meats consumed by Filipinos. This makes it an appealing choice among the growing number of health buffs in the country, and those looking for business in the not so high-tech fields. Aside from goat meat, farmers may also sell by–products such as milk, cheese and even hair.
CONDO LEASING AND RENTAL
The government is working on easing the traffic situation, but real estate developers are already offering their own. By building residential buildings near commercial centers, workers now have the option to live closer to their offices and avoid the hassles of commuting.
Real estate agents are marketing condominium units not just for personal use, but also as investment options. Purchasing a condo unit can make you an instant landlord. This is ideal for house owners who have the capital and time to spare waiting for returns without having to be too hands-on in managing a business.
A studio-type unit will set you back by at least Php 2 million pesos so you need to have a substantial amount of capital. The good news though is that you don’t need to plunk this down in one go. You can move in by paying at least 30 percent equity, then you can start looking for tenants. The initial investment may also be the only cash you need to shell out if you get a tenant right away and he signs on for a long term lease. The rent may be used for the amortization thus the investment will pay for itself.
The most important part of this business is to buy from a reputable developer at an ideal location. By doing this, you will have an easier time getting tenants and fetch a good rate for your unit. You may tap the property management offices of your building to market your unit, or you can do it on your own. A good property management office can also take care of maintenance concerns for the tenants, sparing you from everyday handyman duties.