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How to build buzz for your brand

2011-12-24T08:29:00.003+08:00

To ensure your product’s success, you need to let the public know what it’s all about. Here’s how to do it.

For a business to succeed, it’s important to have a great product, but equally important is how to make the product known to its target market.

Product launches can help complement a great product by generating public awareness and buzz for it.

According to Majivel Marbibi, media relations director of EON, a public relations company, there are several steps to do a special product launch.

She says: “Once you have conceived and researched an idea for a new product, you need to plan the product launch. To do this, you need to work with funding, marketing, public relations, development and several other channels to get the thing off the ground.”

The first step for the launch, according to Marbibi, is for the entrepreneur to define the company’s sales objectives clearly in its marketing plan. “They need to be realistic about the numbers; they would need to use market research to back up their claims, because the more research they do in the planning stage, the better they can understand the market and demand. They should develop their plan to include the timing of the rollout as well as the actual markets they plan to release the product into,” she says.

The second step is to make sure the product is as good as it can be before planning to launch it. “Decide when the product needs to be available and work with the development team to make sure the product is ready and available for the launch,” Marbibi says. “This would entail using the research data acquired from the market study. Using this, one must map out the distribution networks and other logistical needs. Finally, additional modifications to the product must be made to ensure that one ends up with the best possible product.”

Next, the entrepreneur must ensure there is proper communication and work coordination with all channels in the company to make sure the marketing plan includes all objectives and deadlines.

According to Marbibi, “One must keep in mind the needs of engineers, artists, business, marketing, PR and advertising executives. Print and email new product literature with specifications of the product and the differences between the new and current products out in the market. During this time, one may consider getting the services of a public relations agency to help organize the launch.”

After this, the entrepreneur must finalize the product’s promotional schedule, with advertisements, press releases, free samples, direct mailings and any other tools. “Promotion should begin before the product launches to gain interest—just make sure the product is as great as promised and alert the media of any changes in the launch date,” Marbibi says. “Once the [PR] agency gets their product briefings, they will now conceptualize the theme and gimmick for the event.”

The entrepreneur must monitor the progress of the launch campaign and change its overall plan whenever necessary. However, Marbibi says that for cost reasons, one must try to stick to the plan as much as possible. The PR agency must also start designing press campaigns, make promo materials and event concepts, and coordinate with event suppliers. The agency should also help the entrepreneur prepare to deal with the media via coaching or formulating the communication strategy.

Then the entrepreneur has to ensure that everyone in the company is aware of what they need to do to help launch the product, by communicating with the senior management and staff as necessary. “Plan staff training sessions with any extra information on the uses and specifications of the new product to familiarize them with it and deal with any inquiries,” Marbibi advises. “This process of internal communication trains your customer service team as well as any managerial staff needs to know how to answer consumer questions.”

Finally, the company must schedule meetings and speak with all the involved parties in the launch, like the PR, venue, logistics, and retail outlets to finalize all the details and deal with any concerns.

“The business must pay particular attention to the transportation, retail stores and individual product carriers about the specifications of moving the product from the warehouse, to the shelves, to the consumers,” Marbibi says.

source: entrepreneur.com.ph

Stop employee pilferage

2011-12-14T08:26:00.000+08:00

Since losses and pilferages are inevitable in a retail and wholesale business, entrepreneurs need to have strong and effective deterrents against them. Here are some tips to minimize this annoying problem.

1. Hot sellers are your most vulnerable goods.

Items that are popular with customers are also popular with your staff. At Pilipinas Makro, we have instituted several layers of security measures as a deterrent against pilferage from within.

• Key volume inventory. Identify the items that are (1) most often pilfered, (2) fast-selling, (3) easy-to-pocket, and (4) pricey or expensive. We make it a point to count these items every day, compare the theoretical count or the computer count against the physical count. We put up a separate inventory system for each item, and we deploy roving security people to check on suspicious activities in the store.

2. Start using a perpetual inventory system

This is an ongoing record of the historical movement of each item in and out of the stockroom, plus the current balance on hand. This system can tell you the maximum and minimum limits of your stock at any time and provide you with instant reports.

• Perpetual inventory can be done in any of three ways: manually, by bookkeeping machines, or by data-processing equipment. The third is the fastest and it is capable of doing up-to-the-minute inventory checks. In Makro, we have our own system specifically developed according to our needs and requirements. It tells us such information as the current stock level of the items, the daily mean sales, and the season inventory.

Although a perpetual inventory system is relatively expensive, its usefulness can far outweigh the cost of setting it up and running it. There are local software development companies that can provide you with the necessary perpetual inventory system for your business.

3. Instill a sense of ownership among employees.

This is especially true for regulars, supervisors, and managers. At Makro, we give them shrinkage or pilferage reduction targets that need to be kept low or brought to zero level. Our experience is that if your employees have a sense of ownership, they will track down missing items themselves.

• Computers can only do so much, but coupled with inculcating honesty among staff and instituting the appropriate deterrents, they can work very well in minimizing losses and pilferages. It is therefore highly advisable to do both the manual and the computerized inventory system in a retail and wholesale business.

source: entrepreneur.com.ph

The difference between marketing and selling

2011-12-12T10:07:00.000+08:00

Many business owners and practitioners mistakenly think of selling and marketing as interchangeable concepts. This is particularly true in the case of small businesses, which often equates marketing with selling deliberately due to organizational and resource limitations.

But even if sales and marketing are intrinsically linked, the fact is that they are two very different business activities.

The difference.

Selling begins when a product or service becomes available for consumption or use. This function covers retailers’ awareness and confidence on the product and cultivating customer advocacy for the maker of the product or service.

Marketing, on the other hand, is much broader in scope and starts long before the selling process takes place. It covers everything about the market, the consumer, and the brand.

Marketing is about creating consumer-relevant brand that satisfy specific market needs. It is about building product and brand awareness, influencing consumer’s purchase considerations, and making them repeat customers.

Marketing and sales are complementary functions, any one of which can’t achieve its goals without the other. And they need two key elements to make them successfully do this: (1) an extensive understanding of their customers and (2) the ability to adapt to the changing needs, attitudes, and behaviors of the market.

To ensure continuing sales success, a marketing strategy needs to achieve four specific goals for a particular product or service: strong consumer focus, meaningful segmentation, clear and compelling brand positioning, and a relevant marketing mix.

A strong consumer focus.

Nobody buys a product for what it is.Consumers buy a product if they think it benefits them. It is therefore critical for a company to understand the psychology of their target market. A company can do this by doing relevant research on the demographic they want to attract.

Marketers have the tendency to want to develop products that carry superior functional claims. Though this is a good thing, it is not always possible to achieve such demonstrable product superiority such as technical or cost limitations. Moreover, such superiority may not always be sustainable as competitors often try to outperform, if not match, benefits or propositions being offered by competition.

This is why it is important for companies to come up with offerings that more than demonstrate functional superiority, satisfy specific needs or desires of consumers. This can come in various forms—packaging, sizing innovation, distribution, advertising—and dimensions that are functional, sensual and emotional.

Meaningful segmentation.

To really know their target market, marketers need to identify the group of consumers that has the strongest need for or affinity to the brand. Every consumer is, of course, unique. Each has needs that are different from others, so it would be unwise to custom-fit a product or service offering to a single individual. For the same reason, it would be impractical to expect the needs of all consumers to be satisfied by a single product or service offering. Thus, the most cost-effective, practical way to market a product is to target a specific group of customers and consumers with largely similar needs.

This is where market segmentation comes in—identifying and targeting a group of consumers that are in some demonstrable way similar to one another but different from the rest of the market. Determining the most apt group of consumers for its product or service can, of course, be done through an appropriate market segmentation study.

Clear and compelling brand positioning.

Creating an image for your product and clearly positioning it in the minds of the target market—these are musts for establishing a long-term relationship with the consumers. Brand positioning, which sustains the brand image and explains the product’s unique selling proposition (USP), is ultimately what makes the consumers choose a product over its competitors and patronize it over the long term. It is what makes a brand uniquely meaningful to its target markets and what clearly distinguishes it from the other players in the same product category.

Solid marketing mix.

A strong marketing mix that is consistent with the brand positioning is a must for ensuring that a brand will continue to sell. The marketing mix is simply the totality of the activities done by the company that affects the marketing and selling of the brand. Each element of the mix—product, packaging, pricing, distribution, promotions, advertising—has its own characteristics, but each must be carefully considered in its relationship with the other elements and with the overall marketing strategy to ensure that the delivery of the brand promise is maximized.

This marketing mix should be balanced and made consistent with the brand’s desired position and image in the market. To have it any other way would just confuse consumers and weaken the standing of the brand in their minds.

source: entrepreneur.com.ph

LPG retail: Not just for the big boys

2011-12-08T09:23:00.000+08:00

Spotting the potential in retailing liquefied petroleum gas (LPG) is what Nelson Par, head of PR Gaz Franchising Corp., is known for. Par, together with wife Siu Ping, has been supplying equipment to major LPG refilling plants as early as 2001. Seeing how the big fuel retailers were distributing LPG products at their service stations, Par realized that LPG retail could be carried out in a far more efficient manner. Not long after, the couple decided to invest in LPG products retailed through a convenience store setup, giving birth to the business model of PR Gaz Haus. Consequently, the Pars’ own LPG signature brand adopted the name PR Gaz. In 2004, they streamlined the operations of the business and started offering the PR Gaz franchise program to entrepreneurs.

“Other companies have tried but failed to pattern their business models after ours, which has been tried and tested. I am confident to say that we are the only LPG distributor and franchisor that will last long in the energy industry as we offer our clients and partners the whole package,” says Par.

A turnkey franchise renewable every five years, a PR Gaz Hauz outlet costs around P1.2 million. Franchisees will be assisted in the store construction and signage, initial inventory and staff training. A custom-made store management manual, retail software and tricycles for delivery will also be provided.

To date, the company has served more than 170,000 households in Cavite, Laguna, Pangasinan, Tarlac, La Union, Bulacan, Zambales and Pampanga, and has established 100 stores in the same areas.

Par reveals that the company aims to open 300 outlets by 2013 and 500 stores by 2015. Such plans for expansion mean greater saturation of the existing regions covered, while penetrating adjacent and outlying areas. Dominating the greater parts of Metro Manila, meanwhile, remains a challenge for the company.

Par admits, “Metro Manila has a more sophisticated market. It’s not impossible for us to extend our services there, but I’m telling you that it will be difficult. Besides, we have chosen to embark and focus our operations in provincial places for now because expenses in these areas are relatively lower and the risks are fewer.”

The goal to open this many outlets in the next three to five years may seem daunting, but Par believes that the “necessity” and “constant demand” for energy products will make it all possible to achieve. This is where the importance of branding comes in, he says. Par asserts that product knowledge is just as important as brand recall, and he expects his franchisees to be as devoted towards this vision.

To maintain the company’s standards, PR Gaz Franchising Corp. sponsors annual franchise conferences that serve as refresher courses, providing franchisees with team-building activities, leadership talks and entrepreneurial seminars.

The company has granted a total of 34 franchises, more than half of which are managed and owned by overseas Filipino workers. Other franchisees include housewives, retirees and fresh business graduates. Par shares that providing OFWs the opportunity to grow their hard-earned money stems from his personal mission to “give back to the true heroes of the country.”

Another department that Par continues to develop is his company’s customer service. He says, “The service we give here in PR Gaz is very personal. We take the time and effort to communicate with our customers; we reach out to them, household to household. I am sure that we are the only surviving LPG firm to do that.”

Part of the company’s customer service procedures are free pre-sales stove cleaning and check-up services, 24-hour help hotline, and product and services updates coursed through telephone calls and text messaging. PR Gaz Franchising Corp. has also recently launched its customer loyalty program in the form of a Suki ni Gazman card.

“One of the most important lessons I’ve learned in managing this company is to be ready to listen to your market no matter what. Providing is never an easy task, especially in the petroleum industry. It’s not enough that we have satisfied buyers because they must be educated consumers as well.”

True to its priorities, PR Gaz as a customer-focused business is well on its way to expanding its network, without having to sacrifice margins and market sales.

PR GAZ FRANCHISING CORP.
www.prgazhaus.comRetelco Drive corner E. Rodriguez Jr. Ave., Bagong Ilog, Pasig City 1600
(02) 571.7771
franchise@prgazhaus.com

source: entrepreneur.com.ph

Always short of cash?

2011-12-06T13:03:00.000+08:00

Have you ever wondered why you sometimes experience cash shortages even if your business is booming? No matter how much money your business generates, perhaps you always feel that you are always short of cash every time your suppliers are knocking on your door.

The cause of the problem may be poor accounts payable management. When managing cash flows, therefore, you should remember that timing your accounts payable payments is as crucial as collecting your accounts receivables.

You can manage your accounts payable by stretching out the payment terms as long as possible without damaging your credit standing to suppliers. There are some business owners who pay their payables too early simply because they have so much cash in the bank, but they don’t know that they lose the opportunity to earn extra interest income on their cash. On the other hand, there are entrepreneurs who pay their suppliers too late and end up being slapped with penalties and charges. It is thus important that you manage your payables to the best interest of both parties.

As a guide, you can determine your days payable outstanding by first computing your payable turnover. For example, assume that your accounts payable at the start of the month was P150,000 and that during the month, you made total merchandise purchases of P250,000. After one month of operation, you found out that the balance of your accounts payable by month’s end was P100,000. To compute for the payable turnover, divide your total purchases of P250,000 by the average accounts payable of P125,000; this will give you a ratio of 2.0x. This ratio simply tells you that you pay for your purchases two times a month. To get the number of days payable outstanding, divide 30 days by the ratio 2.0 to get the average of 15 days.

What this means is that on the average, it takes about 15 days for you to pay your suppliers. With this information on hand, you can now check how many days it takes you to sell your inventory and collect all your receivables.

Ideally, the total number of days of inventory and receivables should not exceed your days payable outstanding; this way, you would receive all cash collections just in time when you are about to pay your suppliers. In this example, let us say you can convert all your inventories into cash in 12 days. This would mean that on the 12th day, you would already have the available cash to pay your suppliers and enjoy three more days before your accounts payable becomes due. You can then take advantage of this by depositing the cash in an interest-bearing bank account.

If business is slowing down and you are finding it difficult to unload your inventory and to collect from your customers, you may consider stretching out your credit terms with suppliers. From the same example, if the number of days to convert your inventory to cash is rising to 18 days from 12 days, you may need to negotiate your credit terms with your suppliers, for instance by having them extended by at least three more days up to 18 days to protect your cash position.

Sometimes, so you will be encouraged to pay early rather than on the due date, suppliers may offer you a trade discount like, say, a 2 percent discount if you pay within 10 days for an account payable due in 30 days yet. In general, trade discounts are good because it allows you to take advantage of it to lower your purchase costs. But there are times when trade discounts are not favorable. How would you know if it is good or not? You can do this by computing the effective interest cost assuming that you are going to borrow the money to pay your account in 30 days. You then should compare this to the prevailing borrowing rate from the bank. The formula for effective interest cost is EAI = (discount / 100 percent - discount) x (365 / payment period – discount period).

Suppose the prevailing borrowing rate is 16 percent per annum and you are offered a 2 percent discount if you pay in 10 days an account that is otherwise payable in 30 days. Using the above formula, we will find that the effective annualized interest cost is 37 percent as compared to only 16 percent, so it is wise to take advantage of the discount. If you have negotiated your credit terms to 60 days, your effective interest cost would be 14.9 percent, lower than the prevailing bank rate of 16 percent. In this case, you can afford not to take the 2 percent discount because it is cheaper to stretch out your payment.

It is perfectly all right for you to control the terms of accounts payable so it is to your advantage. Perhaps, it will be helpful if you can put a monitoring system where you can sort all accounts payable that will soon be due; this way, you will know just how much cash you will need to prepare to pay your suppliers on time.

source: entrepreneur.com.ph

Buying stations make it easier to get into the coffee business

2011-12-04T07:03:00.000+08:00

Now, just about anyone with a parcel of land can become a supplier of coffee beans to supply the country's growing demand. One no longer needs a warehouse full of coffee beans to directly trade with the 'big guys.'

More than 25 years ago, the ordinary Filipino coffee farmer would sell his produce to a middleman or to some unscrupulous coffee trader who bought the coffee beans at extremely low prices. Some coffee farmers stuck it out with coffee while a large percentage opted to shift to other cash crops, which eventually led to a shortage in supply.

Then the Nestle Satellite Buying Stations came into the picture, giving the ordinary coffee farmer the choice to become an entrepreneur in his own way as a direct supplier of green coffee beans.

Green coffee beans is the term used to refer to un-roasted coffee beans.

Today, with about 12 satellite buying stations nationwide, Nestle is able to give local coffee farmers a new opportunity. Strategically placed in areas where there is a high density of coffee farmers, the Nestle buying stations purchase coffee beans based on the prevailing world market price.

“We are an ardent supporter of the Philippine coffee industry, being the largest buyer of green coffee in the country,” said Edith de Leon, head of corporate affairs of Nestle Philippines. “We look forward to contributing further to the growth of the coffee industry by collaborating with the various coffee stakeholders to help the country attain self-sufficiency in terms of coffee supply.”

The Department of Agriculture shows that current coffee production in the country is around 34,000 metric tons, while demand is pegged at 60,000 metric tons annually.

The qualities of the beans that Nestle purchases are of the Philippine Robusta variety, that do not exceed 16 percent triage by weight and more than 12 percent moisture content. Coffee beans should also be packed in bags made of jute or other natural fiber.

With the Nestle buying station purchasing coffee beans at world market price, there is a renewed sense of hope for an ordinary coffee farmer who can sell his coffee beans at the right price.

Currently, Nestle operates 11 buying stations in Tagum, Iloilo, Isabela, Zamboanga, Cotabato, Agusan del Sur, Tuguegarao, Solano, Bacolod, Bohol, Calamba, Alabang, and Cavite. The Nestle Satellite Buying Stations open in each province depending on the time wherein the supply is most abundant.
Nestle is also upgrading its coffee processing facilities in Cagayan de Oro City to further increase the production of coffee for the local market as demand continues to grow two to three percent annually.

source: entrepreneur.com.ph

Smalltalk can be a key in negotiations

2011-11-30T22:13:00.001+08:00

In the Philippines, business matters are always best dealt with on a face-to-face basis in a warm and pleasant atmosphere.

While many Western business people think that time is gold and want to get to the point immediately, the Filipino likes to be indirect, talk about mutual friends and family, exchange pleasantries, and share a joke or two. Only after establishing a cordial atmosphere will people negotiate.

To a Filipino, cultivating a friend, establishing a valuable contact and developing personal rapport are what make business wheels turn. Coming to negotiations armed with a few but great conversation starters can help you get a better for the coming business deal. Only in the Philippines!

source: entrepreneur.com.ph

Investing in Mutual Fund

2011-11-27T21:29:00.000+08:00

Money is precious. As they say, it doesn’t grow on trees. But you can make it grow, even in this time of economic hardship. How? Simple. By investing wisely.

There are indeed many ways to invest in today’s markets, but none is growing faster in popularity than mutual funds. Although this investment instrument has only been recently introduced in the country, mutual funds are prevalent in European, North American and even some Asian countries. But what is a mutual fund anyway?

A mutual fund is a professionally-managed firm of collective investments that collects money from many investors and puts it in stocks, bonds, short-term money market instruments, and/or other securities. After realizing capital gains or losses, the investment proceeds are then passed along to the individual investors annually, through the fund manager, also known as the portfolio manager. The value of the mutual fund, known as the net asset value per share (NAV), is calculated daily based on the total value of the fund divided by the number of shares currently outstanding.

Know your investment goals.
It is important to choose investments that match your goals. Ask yourself the following questions: Why do you want to invest? How much risk are you willing to take? How long is your investment time horizon? Your answers to these questions will help determine the suitable investment for you.

Be realistic.
Set definite and achievable savings and investment targets. Don’t invest money you don’t have. It does not help to set goals that are too ambitious or require a level of savings beyond your present financial state. Decide what you can realistically set aside for investment and work from there.

Protect yourself against inflation.
Ten thousand pesos can buy a lot more in the 1970s compared to what it can buy today. Inflation has eroded our buying power and it will continue to do so unless we invest wisely. The first step is to include inflation protection in your investment goals.

Diversify.
Like the famous saying, “Don’t put your eggs in one basket,” in investing you shouldn’t put all your money in one place, stock or business. Spreading your investment across different assets can help trim your risks. The prices of different assets do not always go in the same direction and even if they do the amount of change varies.

Practice peso cost averaging.
Make investment purchases on a regular basis so as to average your cost over time. For instance, you decide to invest P5,000 in mutual funds every month. On the first month, the price of the mutual fund share is P5, so you buy 1,000 shares. If the price of the share doubles to P10 the following month, you buy another 500 shares. Your average cost is therefore P7.50 per share. Since we don’t have perfect foresight, peso cost averaging allows us to improve our share cost in the face of fluctuating share price.

Buy low, sell high.
This is easier said than done. There is a common misconception that you should buy stocks when the market is good, and sell when it is bad. Without an investment plan, you would easily follow the crowd – selling when prices are already falling and buying when prices are already rising. To avoid this mistake, take time out to create your own investment plan.

Invest for the long-term.
The value of securities tends to rise and fall over the short term over time. Your ability to withstand volatility, especially on the downside, will generally result in greater returns over time. A long investment time horizon will give you the flexibility to include investments that may provide high returns but will require taking additional risks.

Balance risk and reward.
Every investment has a certain degree of risk, and its return is proportionate to the level of risk of the investment: the lower the risk, the lower the return; the higher the risk, the higher the return. Investors need to understand the levels of risk or volatility associated with their investments.

Choose a fund manager that offers you different investment options.
Every individual has his/her own investment needs. Investment needs will also change over time. What works for a 30-year-old may not work for a 50-year-old.

For more information, contact:

Sun Life Financial
12th Floor, The Enterprise Centre Tower 2
6766 Ayala Avenue cor. Paseo de Roxas, Makati City
Phone: (02) 886-6188
Call Centre: (02) 849-9888
Web site: www.sunlife.com.ph

source: mixph.com

10 tips to thrive in a competitive market

2011-11-27T16:16:00.000+08:00

With the world going through another financial crisis, the cartoon of a chicken screaming “The sky is falling!” is in vogue again. But businessmen don’t have to act like a panicked fowl in times like this.

Four entrepreneurs interviewed for this report— Brian Quebengco of the industrial design firm Inovent Inc., Dondon Atayde of the events company Wishcraft, Richard Cruz of the real-estate consulting company INSPIRE, and Jonathan Dee of Alliance Tuna International Inc.—all agree that instead of yielding to the stress caused by economic instability, SME owners and operators should see the situation as a challenge for their businesses to do even better under great pressure.

1. Know your strengths

Quebengco: “A strength is an activity or talent that makes you feel good while you are doing it, and leaves you energized after,” he explains. “A weakness, on the other hand, leaves you stressed out and tired. Instead of trying to DIY [do it yourself], you need to get partners who are strong where you are weak. You need to build a strong team.”

Cruz: “Instead of spreading the resources of the company thinly, go back to your strengths as a company and focus your resources there,” he explains.

2. Share the load

Quebengco: “Know something about accounting, but if numbers leave you drained, hire an accountant,” he suggests.

Dee: “When my company (it was then called the First Dominion Group) collapsed during the 1997 Asian financial crisis, I found great relief from stress by being with a supportive group of friends and by spending downtime with his family,” he said.

3. Respect the boss

Atayde: “Even if my partners and I have an equal interest in the company and we sometimes clash in the boardroom, we always respect the chain of command. At the end of the day, we are five partners, but there is only one boss.”

4. Stay debt-free

Atayde: “We resisted being greedy and splitting the profits right away when we started,” he says. “We grew the business slowly, a process that allowed us to learn the business better.” The result, he says, is a debt-free company with a very sizable capital base.

5. Protect your capital

Cruz: “Capital is essential in starting a business and protecting that capital is vital especially with the practice of many clients today of paying three to six months after service is rendered to them.”

6. Spend wisely

Atayde on how they grew Wishcraft: “The capital we had put back into our business helped us expand from being simply an events company into a holding company, with businesses in manpower promo activations, staging, rigging and displays, and logistics and vehicle rentals. We are able to keep our costs down because when you own related businesses, you can share resources. In any case, we are cautious about sharing the dividends even until now and would rather invest our capital in new businesses.”

7. Go beyond cost-cutting and strengthen the brand

Atayde: “The old adage, ‘Cut costs to maximize profits,’ still holds true,” he says, “Every year, therefore, we always make it a point to examine where we can cut costs.”

Cruz :“Instead of simply cutting down on advertising, it may be good to study your brand and find a way to make your clients or your customers feel that you care about their situation. In this manner, you can market or advertise your product more effectively to your customers.”

8. Don’t dwell on negatives

Quebengco: “What holds you back or propels you forward is your belief,” he says.

Atayde : “Business is all about opportunity,” he says. “When you’re on the lookout for opportunities, they will present themselves. Dwelling on the negatives will blind you to the good things coming your way.”

9. Look within and make the hard decisions

Cruz: “An internal failure can be a character flaw like laziness or greed, a loss of drive or passion, depression, or simply doing too much too soon. The ability to honestly assess one’s self at all times can alert one to an internal failure before it becomes detrimental to the business.”

For his part, Dee shares his experience as a once floundering entrepreneur: His First Dominion Group had borrowed heavily in US dollars so it could expand and acquire other companies. This exposed the company to a foreign exchange loss of up to P1 billion when the currency exchange rate went up from P26 to P43 to the dollar, and then to over P50 to the dollar.

When interest rates then rose to 30 percent, Dee’s company—at the time considered the second largest exporter of canned tuna in Asia—got starved of badly needed working capital. He says there were no shortcuts to surviving the crisis, which lasted about six years. “We had to make hard decisions and swallow our pride,” he says. “From a work force of 6,000 in 1996, we shrank to 600 in 2002. From five operating factories, we retained only one.”

10. Pick yourself up

Dee: “If you know your business and are committed to it, you will no doubt find a way to bounce back,” says Dee. “You need to pick yourself up every time you hit the pavement.”

Indeed, in 2003, Dee re-established his tuna canning and export business as Alliance Tuna. Today, the company has a strong balance sheet, zero long-term debt, and is listed as the most profitable tuna packer in the country, with plans to expand operations not only in the Philippines buy also to Indonesia and New Zealand.

source: entrepreneur.com.ph

Should you insure your property?

2011-11-25T22:52:00.000+08:00

You may need a policy to cover your building and other structures, your furniture, inventory, equipment and supplies. You may also need a policy to insure your money and securities, records of your accounts receivable, machinery and improvements in your premises.

The events causing damage to property are called “perils,” and these include lightning strikes, burglaries and vehicular accidents. There are two types of policies covering perils: a “named-perils policy” covering losses only from perils named in the policy, and an “all-risk policy” covering all perils except those specifically named. All-risk policies typically have higher premiums, and may include coverage for additional perils if necessary.

Small businessmen can secure property insurance to protect themselves as any hiccup in the cash flow or production may cause catastrophic loss to the entrepreneur due to his limited financial resources.

But how are you compensated if your property is damaged?
Property insurance is usually categorized into the cost of replacing property at current market value or the cost of replacing the property minus depreciation. Most experts agree that replacement cost value is better: it pays you enough to replace your property at today’s prices.

Property inspection is the most important step in underwriting. Premiums are pegged in relation to exposure, as the more comprehensive the cover, the higher the premium. However, the premium varies depending on variables like your building’s construction, its exposure to hazards, its housekeeping, and the presence or absence of fire-fighting equipment. The insurance company usually will send an inspector to look at your business site to make a quotation. He can also make suggestions on how to minimize hazards to lower your premium payments.

The basic rate may also be adjusted further at the discretion of the insurer. He credits or debits based on claims history or specific loss-control measures. If the rates cannot be adjusted, he uses dividends as a way of reducing premiums.

Some insurance companies have custom-designed insurance packages for the entrepreneur who may not have all the resources to keep track of all the perils he is exposed to.

To keep costs down, you may install burglar alarms, fire extinguishers; smoke alarms, fire doors and a sprinkler system. But you should inform your insurance provider of any major changes in your business that may affect your insurance needs. Don’t get stuck in a pattern of renewing whatever coverage you had the year before. Your needs may have changed, and you could end up renewing coverage for something you no longer use, lease, or own.

source: entrepreneur.com.ph

Agencies and permits to know when starting a business

2011-11-25T08:50:00.000+08:00

So you've finally decided to push through with your business idea and as luck would have it, also find funding for it. Now comes the part that every entrepreneur doesn't look forward to: securing all the necessary permits to start your business.

Below is a list of the government agencies you need to go to and the permits your need to apply for:

Department of Trade and Industry (DTI)

- This is where you register if your enterprise is a single proprietorship. The agency will issue a certificate of registration of business name.

Securities and Exchange Commission (SEC)
- If your enterprise is a partnership or a corporation, this is where you will register. It will issue a certificate of registration.

Cooperative Development Authority (CDA)

- If your set-up is a cooperative, register with this body. The agency will issue the certificate of registration.

Local Government Unit (LGU)

- You register with the municipality or city where you will set up your business. This office will issue the business permit.

Barangay Hall

- You register with the specific barangay in the municipality or city where you will operate your business. This office will issue the barangay clearance.

Bureau of Internal Revenue (BIR)

- You register your business with this office and apply for your business’s taxpayer identification number (TIN), registration of books of accounts, authority to print

Social Security System (SSS)

- You register your business as an employer, yourself as a self-employed or as employee, and your workers as employees. This office will issue an SSS number for your business, for yourself, as well as for your workers.

Department of Labor and Employment (DOLE)

- If you employ five workers or more, register your business with this agency. The DOLE is asked to promote gainful employment opportunities, protect workers and promote their welfare, develop human resources, and maintain industrial peace.

Home Development Mutual Fund (HDMF)

- RA 7742 requires all SSS members earning at least P4,000 a month to register with this agency. HDMF administers the Pag-Ibig Fund.

Philippine Health Insurance Corp. (PhilHealth)

- The New National Health Insurance Act (RA 7875) as amended by RA 9241 requires all employers of the government and private sectors and their employees to register with this agency. PhilHealth manages and administers the government health care system.

source: entrepreneur.com.ph

3 ways to clinch that sale

2011-11-24T05:45:00.001+08:00

It’s a tough market out there, but with the right perspective, selling retail can be a breeze for you. Entrepreneur.com.ph listed down three ways on how you can clinch a sale.

• Beat a cold greeting. Many retail salespeople struggle with the “I’m just browsing” rebuff. The question, “Have you shopped with us before?” is an opportunity to reveal the customers knowledge of your product line. One thing you have to know is why a shopper came into the store. If a customer says ‘I’m just looking,’ well, what is she looking for? You have to try to trigger their interests.

• Think for the customer. Once the customers’ interest is triggered, you can start a dressing room and selects an outfit based on that one item. Don’t consider yourself as a mere salesclerk. Be a wardrobe consultant if you have to be. Take notes on each customer after a sale, and then follow up with a call or a handwritten note.

• Attack the sack. You should see opportunity in returns, a philosophy the retail industry calls “attacking the sack.” It helps you find out what doesn’t work for the customer and find a solution, which could be another color, another size or another look. Nine times out of 10, if they bought once, they’ll buy again.

source: entrepreneur.com.ph

Foodcart Business under P30,000

2011-11-21T22:21:00.000+08:00

Who say’s you can’t put up a high-quality food cart business under P30,000 or less? Are you curious enough to know how much investment needed to put up high-end food carts that sell popular food concept nowadays? Well, two of the most popular cart today that sells only siomai and gulaman will initially cost you P280,000 for the cart and its basic equipment alone. Another popular cart that sells only waffle will cost you P300,000.

Yes, let’s admit, their product is affordable and tastes good but I don’t really get the idea of shelling that much money when you can have your own food cart concept with the same taste and quality for a fraction of the amount.

Of course, there are some food cart companies that offer between P40,000 to P50,000 or even under P30,000, but it merely acts as a front for their MLM scheme. The bulk of the price goes to paying their “network” of people, so you end up with over-priced and over-hyped foodcart package and products.

If you will not check and scrutinize the package, you will found out later that you were short changed. Most of these companies will not give after-sales support after taking your money. And worse, the products that you’re supposed to sell are not really competitive as promised. Most, if not all, cart with this price range looks like a cardboard box — a few metal poles wrapped with only a tarpaulin. A moderate gust of wind will blow this cart away!

The Real Deal

But, where can you really find an honest-to-goodness start-up foodcart business that will not shortchange you with your P30k investment? Ice Scramble foodcart business is a good example. You can put-up this business and start operation in just two weeks, everything you need is there — ice crusher machine, mixer, initial products, a high quality cart, training, etc. Simply provide a good location and a sales crew, and you’re all set.

Running a foodcart business is not rocket science, it’s even easier to operate this than running a sari-sari store. Return of investment (ROI) is normally 2-4 months, provided of course that your location has at least moderate foot traffic. Your involvement as an owner should be 100%. Yes, complete hands-on or at least checking your cart a few hours a day, if you have a trusted crew.

The Market

What if after sometime, the expected sales are not met anymore? Short answer — change concept. The bulk of your initial investment goes to cart fabrication. If you plan to sell burger instead, simply buy a burger griller for less than P2,000, and you have now a new concept! Another option is to “relocate.”

As of the moment, the most popular food concept in the market are siopao, siomai, burger, noodle, fries, ice scramble, shakes, waffle, rice toppings, dumplings, and nachos. Selling price for these products is between P20 to 50, price that are affordable to people from all walks of life – the “masa price.”

Is the market already saturated with foodcarts? No. As long as people need to eat food and multiply, you will never run out of target market.

To sum up, you can choose a foodcart concept, all-in, and ready to operate in 2 weeks for P29,900. Profit margin is 50-100% and ROI is 2-4 months.

For more information, contact:

FoodcartLink Services
Tel: (02) 340-0156, CP# 0922-862-6154 or 0921-9513522
Email: info@foodcartlink.com
Web: www.foodcartlink.com

source: mixph.com

Mang Inasal Chicken BBQ Franchise

2011-11-21T16:41:00.000+08:00

Apart from the usual food presentations of multinational food company copycats, Mang Inasal endeavors to adhere to elements that bear a distinctively Pinoy stamp-grilling with charcoal, rice wrapped in banana leaves, a marinade concocted out of local spices and herbs, bamboo sticks for skewers, and the ambience that encourages kinamot (the Ilonggo term in eating with the hands) whenever chicken inasal is served. All these evoke a rush of nostalgia for tradition, culture, and most of all, Home.

Mang Inasal has steadily grown since it offered franchising. Mang Inasal has branches in Bacolod, Iloilo Roxas, Kabankalan, Cebu, Boracay, Davao, Koronadal QC, Pasay, MuÃƒÆ’Ã‚Â±oz, Cagayan De Oro, Zamboanga General Santos, Makati, Manila, Muntinlupa, Bulacan Cavite, Bicutan, Baguio, Sta. Rosa, BiÃƒÆ’Ã‚Â±an, Calamba Batangas, Pampanga, Palawan, Ozamiz, Iligan As of today, Mang Inasal has 68 branches nationwide and counting.

What is the mang inasal franchise concept?
Mang Inasal Philippines grants a license to operate to a qualified franchise in a specific location. The franchise makes a commitment to dedicate his time and best effort in operating the store according to the system and standards of Mang Inasal. He pays Mang Inasal a continuing royalty (as a percentage of gross sales) 5% Royalty fee plus 2% advertising fund. Franchise fee P 800,000.00.

Who should qualify as a franchise applicant of mang inasal?

Must be willing to strictly follow standard operation system of Mang Inasal.
A person who has a desirable business track record
Someone who has the commitment to dedicate time and best effort for this investment.
Success-driven entrepreneur
One who possesses the abilities to manage human resources
A person who is willing to attend Mang Inasal Training Program
He must have the financial capability.
Mang Inasal grants franchise to and individual or sole proprietor

Who selects the site?
Mang Inasal selects the site for the restaurant but the franchise applicant may propose a potential location for assessment.

How much is the total investment?
The total investment package for Mang Inasal franchise ranges from P5m to P6m. depending on the size of the outlet, locations of the store, land and building. The cost involve are for franchise fee, store equipments, building and leasehold improvement, signages, POS systems, Refundable security deposit, furniture and fixtures, working capital, initial supplies and expenses.

What is the mang inasal franchise training program?

The training program is designed to equip the applicant with a hands-on work experience in a chosen Mang Inasal outlet and with appropriate knowledge to properly apply Mang Inasal system and standards for operating his store.
The training program covers one month period.

Contact details:

IloIlo Corporate Office
Fuentes St., Iloilo City
Tel: (033) 508-9000 / 508-7555
Fax: (033) 508-5111
Email: info@manginasal.com
web: www.manginasal.com

Manila Corporate Office
305 Villa Bldg., Makati Avenue
cor.Ãƒâ€šÃ‚Â Jupiter St., Makati City
Tel: (02) 890-2654, Fax: (02) 890-2654

2316 Aurora Blvd. (formerly Tramo St.), Pasay City
Tel.: (02) 854-3346
Fax: (02) 854-5692

source: franphil.com

Part-time business idea: Dance instructor

2011-11-19T07:41:00.000+08:00

Do you like dancing? It’s never too late to start making extra cash from your hobbies. And if shifting careers is too daunting for you, do it on the sidelines. You can conduct dance lessons after work, on the weekends and on holidays. All you have to do is just get the word out there and start!
Capital: You need about P20,000 to become a dance instructor. Most of it will go to enrolment fees for dance lessons. Getting at least six months of dance training, particularly in ballroom dancing, is ideal.

Materials: As personal packaging is crucial to success in this type of business, you need to invest in new dancing shoes, shirts, slacks, and perfume or cologne as the case may be. It is also advisable to have dance music CDs of your own.

Workforce: Initially, you need not hire staff. When you are ready to put up your own dance studio, however, you may need an assistant to take care of schedules and studio maintenance.

Process: To go into this business, you need to have deep passion and talent in dancing and the skills to teach it. Add good personal marketing and inter-personal skills and you will be on your way to becoming a sought-after dance instructor.

After undergoing a good training program, you can first work as an in-house dance instructor in a dance club. Once you have already gained confidence in your dance moves and in handling clients, you can start working on your own.

Training: By enrolling in formal dance classes and attending its sessions twice or three times a week, you can become a competent dance instructor in four to six months. In dance, one should never really stop learning; even veteran dance instructors still take lessons in new dance movements.

The types of ballroom dancing you need to master fall under three categories: standard, Latin, and social dancing. Standard includes waltz, foxtrot, Viennese waltz, quick step, and tango; Latin includes cha-cha-cha, rhumba, samba, jive and pasa doble; and social dancing includes the swing, reggae, mambo, bachata, and Argentine tango.

Marketing: Word-of-mouth advertising is the best way to promote yourself in this business. You can also use flyers and e-mail campaigns as well as put up a website. In any case, when it comes to choosing a dance instructor, people tend to rely on personal recommendations and referrals. For this reason, says veteran dance instructor Monching Ducay, it is extremely important to maintain a good relationship with clients. Also, punctuality and good grooming are absolute musts.

source: entrepreneur.com.ph

A reloadable prepaid card for online shopping

2011-11-17T22:23:00.000+08:00

For those without a credit card but wanting to shop online, fret no more. There is the new BPI My ePrepaid card—a no-hassle, no-approval-required, reloadable prepaid card that allows you to conveniently buy whatever you want from MasterCard-affiliated online shopping sites without having to worry about submitting documents or maintaining a balance.
“Now, everyone can buy airline tickets, concert passes, gadgets, fashion must-haves, and coupon deals easily and in an instant with the BPI eCredit and My ePrepaid Cards,” shares Aileen Lamasuta, Vice President and BPI Prepaid Cards Business Head.

Filipino habits are changing as they spend longer hours browsing the Internet at home than going out to shop and dine during their spare time. This was shared by the 2011 Net Index Study released by Yahoo! Philippines and Nielsen Media, which revealed that Internet time at home takes about an average of 10.4 hours of most Filipinos’ time in a week—a huge jump from the 4.8 hours that Pinoys allot for web surfing back in 2009.

The same study also noted that 80 percent of Internet users spend much of their time online visiting social networking sites, while 69 percent stay connected with their family and friends through instant messaging. These developments, experts note, have influenced the buying habits of most Internet users today, especially the generation of young Filipinos who use the Internet to search and shop for their must-haves.

Last year, statistics showed that retail sites topped the list of the most visited sites for Filipino online shoppers at 49 percent, while travel sites came in next at 26 percent.

BPI has always been known for staying a step ahead in terms of innovative banking technologies by pioneering best practices that have become the standard for today’s local banking scene. “The explosion of social media the past two years has given way to opportunities for increased interactions and connectedness. We have seen the tremendous growth of eCommerce, yet, there are many more who are wary of shopping online due to concerns on security and payment inconvenience,” says Ginbee Go, Senior Vice President and BPI Cards Issuing Business Head.

In addition to My ePrepaid Cards, BPI is also launching the BPI eCredit, the first-ever virtual credit card exclusively designed for online shopping for BPI MasterCard cardholders. It will serve as the companion card for the BPI Express Credit MasterCard variants—Blue, Gold, Edge, Petron and Skymiles— and uses a different card number with its own sub-limit that cardholders can set and adjust as they need it.

source: entrepreneur.com.ph

Home-based business idea: Carinderia

2011-11-16T08:46:00.000+08:00

Is your house located in a busy area or surrounded by a lot of office buildings? If it is, then we suggest that you consider putting up a carinderia business. Start your business right in your own home with a small capital investment!

Capital: You need about P15,000 to open a small carinderia or food kiosk. The money will go to two weeks’ worth of inventory of food and ingredients, equipment and utensils, space rentals, and barangay permit fees. You may need a lower amount if you will do business in your own backyard or front yard (deduct P1,500 to P2,000 from the original estimate if this is the case) and if you will use your own existing kitchen utensils (deduct their brand-new cost). Assuming an income of P600 daily six days a week, you can expect to recover your investment by the second month. To look for kitchen equipment suppliers, click here.

Materials: You will need a space to accommodate your kitchen equipment and one to two small tables for your customers; a stove with an LPG tank (or charcoal supply if you prefer to use a charcoal stove); and cookware, plates, spoons and forks, and other utensils.

Workforce: You need not hire staff to get started in this business. However, when you feel it’s time to expand or offer a wider variety of dishes, you will likely need one or two staff to serve customers, wash dishes, and clean up the place.

Process: To do this business, you must have determination and a real interest in cooking. According to Rene Jose Macatangay, a carinderia owner-operator for 11 years now, he would wake up as early as 2:00 or 3:00 a.m. to get the freshest produce when he does his marketing for food ingredients. Promptly at 4:00 a.m., he would be back at his food kiosk to do the cooking.

Finding a good location for your food kiosk is extremely important. A place very near or easily accessible to your target customers, say taxi or tricycle drivers, would be ideal. It’s also advisable to check with your barangay council if a permit is needed for a small carinderia.

Decide how many meals you will serve for the day and prepare a menu plan for at least a week. Some carinderia owners stick to a fixed menu plan particularly if they have already established best-selling dishes. In the case of Macatangay, however, he only serves merienda (snacks) and lunch. He opens at 10:00 a.m. and closes by 4:00 or 5:00 p.m. He regularly serves goto andlugaw (both rice porridge snacks) and tokwa (soybean cake). Although he changes his lunch menu every day, he has standard fare for particular days, like ginisang munggo (stewed mung beans) every Friday.

Make your pricing reasonable and within the reach of your target market. Macatangay says he keeps his prices low to maintain the loyalty of his regular customers.

Marketing: Word-of-mouth advertising is your best promotional tool for this type of business. Satisfied customers will talk about your carinderia and recommend it to their friends who happen to be in the vicinity. And for Macatangay, it is a source of great satisfaction to see his loyal customers come back every day for his food fare.

source: entrepreneur.com.ph

Successful Business: Chef Tony's Popcorn

2011-11-12T12:53:00.000+08:00

Businesses: Chef Tony’s Popcorn
Cajun Red Rock
Featured: July 2007

Demand for your product may outstrip supply, but it is never a good idea to expand beyond your production capacity. Take it from Chef Tony Elepaño: “As we grew, we focused so much on moving forward that our basic infrastructure was left behind.” Faced with commissary and factory problems, Elepaño in February 2009 put a suspended expansion, until after he rebuilt the factory and trained more people. “Restaurants don’t run on machines. They run on chefs, restaurant managers, and staff. I should’ve seen where I was going and trained leaders and built my infrastructure correspondingly,” he says.

“I’m a lot thinner now,” says Tony Elepaño, referring to his photo in his first feature in the July 2007 issue of Entrepreneur. But aside from the obvious, the brains behind the now hugely popular (and addicting) Chef Tony’s Popcorn is proud that, in terms of stores, his team, and his assets, they have definitely grown.

Indeed, Chef Tony’s is a perfect example of a “Why didn’t I think of that?” business concept. Elepaño says, “Popcorn was only the venue for the idea of having an excellent snack. I think we were able to communicate that.” That’s an understatement.

After a rough patch creating a restaurant called Cajun Burgers and Ribs in 2002, Elepaño found himself in eight-figure debt that forced him to start all over again, this time with popcorn. From one kiosk with starting capital of only P20,000 in 2006, Chef Tony’s Popcorn has now popped into 52 company-owned outlets all over the Philippines. Its success has allowed Elepaño to reincarnate his restaurant, now called Cajun Red Rock—and it has grown to three outlets now. All of this happened in just under a decade. Sweet.

“I have always been an entrepreneur first,” says the 39-year-old restaurateur, “then I eventually studied to become a chef. However, I think the principles and values that I learned while I was building the first Cajun restaurant or the first Chef Tony’s outlet never changed. There’s no difference, (it’s) just a bigger company.”

By “bigger” he means the people he now employs (over 200), the strong brands he has created, and the wider reach of his popcorn creations. From Chef Tony’s kiosk outlets, “we have started to enter into supermarkets which, way back then, I didn’t consider. [When the feature was done in 2007] I believed the product wasn’t ready for the supermarket shelves. Now we believe we have enough brand recognition that when customers see us on the shelves, the brand will always be in their minds. We built that over time.”

Over time also, Elepaño discovered something he wishes he knew then. “Had I gotten to know my target market earlier, then I would not have wasted a lot of marketing efforts on other things and we could’ve started to wow them earlier,” he says.

“If we defined these things earlier then maybe we’d have focused our resources to building bigger stores. We thought it was a cart and counter business. That’s not how it turned out to be.”

In addition to defining his market, Elepaño had to get a different kind of backbone. “As we grew, we focused so much on moving forward that our basic infrastructure was left behind.” They had commissary issues for the restaurant and factory problems for the popcorn, which, in the end, “made us miss some opportunities to grow abroad or have the products exported.”

To resolve that concern, the business had to stop expanding. “I saw the issue and I started to rebuild my factory and started to train more people,” says the chef. “Restaurants don’t run on machines. They run on chefs, restaurant managers, and staff. I should’ve seen where I was going and trained leaders and built my infrastructure correspondingly.” With those problems resolved, Elepaño soon found himself exporting to countries like Guam, Taiwan, and Singapore.

As simple a product popcorn may be, it takes an entrepreneur to make it, well, pop. Chef Tony knows it. “I think the success of Chef Tony’s is because consumers believe that now they can have a venue for something really good for them, with not only an excellent and well-thought out product, but something that can wow them at the end of the day.” That’s something to chew on.

Tony Elepaño: The Popcorn Man
CHEF TONY’S SNACK FOODS PHILS. CORP.
www.cheftonys.com
2/F GLIC Bldg. 739 Banawe St., Bgy. St. Peter,
Quezon City, 1114

source: entrepreneur.com.ph

Tips in Starting a Laundry Business

2011-11-12T12:38:00.001+08:00

Do you want a simple business that has a growing demand and high profit potential? A laundry shop may be your dream business. Reliable “labanderas” are getting harder to find and busy people often have no more time to do their own laundry.

Below is short list of the steps you need to take to launch your venture:

1. Consider your financial resources. You will need a minimum of around Php 200,000 to fund your own laundry. You may opt to get a franchise to lessen the risk but this will mean less control over your business and additional overhead in the form of royalties and other expenses. Still a franchise is a good option because of marketing and operational advantages among others.

2. Determine your target market and find the ideal location. We suggest those near condos and dorms where there is a large demand for laundry services.

3. Check if the water supply is adequate and fit to use. There are places where the water is insufficient or has too many minerals for laundry use.

4. Register your business name once you already have a location. If it is a sole proprietor, go to DTI and if it is a corporation or partnership, you must register with the SEC. Then get a barangay clearance before proceeding to city hall and finally to the BIR.

5. Acquire and install equipments. For a start up it is recommended that get brand new equipments. Second hand machines may break down often and cause more expenses, especially if you factor in lost sales.

6. Hire and train new employees. Check their back ground carefully and have them submit a current NBI clearance. Make sure they are well trained not only on how to operate the machines and clean laundry but also on basic customer service.

7. A return on investment of one year or even less is very possible if you have a good location and you know how to run your laundry well.

source: mixph.com

How to start a Pawnshop Business

2011-11-10T23:26:00.000+08:00

Pawnshops and pawnbroking have been around for thousands of years. The basic idea behind any pawnshop is to loan people money. In the Philippines, pawnshop has the highest rate of interest earned for one year. Normally loan interest rates is at 60% (5% x 12 months ) annually on every loan released compared to 10 – 20% interest rates of the commercial / rural banks and other financial institutions. It has a potential to earn a Return of Investment in just 3 years and a half.

This is the reason why the growth of pawnshop is compared to sprouting mushroom even at stiff competition with multi-national pawnshop companies, locally owned pawnshop can still perform well and got a sliced of the short term credit market.

1. Call Bangko Sentral ng Pilipinas (BSP) pawnshop hotline, (02)524-8713, to check if the pawnshop name you want is already taken.

2. Register your business either at the Department of Trade and Industry (DTI), for single proprietorship, or the Securities and Exchange Commission, for partnerships or corporations.

DTI is located at the Trade & Industry Building, Sen. Gil Puyat Ave., Makati. In the provinces, DTI offices are in or near municipal buildings. Application forms are also available at DTI’s website. Only Filipinos may own a pawnshop organized as a single proprietorship. For partnerships and corporations, foreign ownership should be limited to 30 percent.

3. Secure a business permit from the city or municipality where pawnshop will be located.

4. Register with the BSP. For the complete list of requirement, download the form here. These include permits from the DTI or SEC and the local government, an information sheet, personal data sheets, bank certification of at least P100,000 capital and location sketch.

5. Pay the processing fee of P1,000.

6. It will take two to three weeks for the BSP to process your application. Make sure you open your business within six months after the application is approved or your permit will be revoked.

FAQ – Nature of Pawnshop Business

1) What is the nature of Pawnshop Business and the Pawnshop Industry in the Philippines?

In observing the growth of micro enterprises in any Philippine cities and town areas are one of the sign that people nowadays wants to have additional income due to the rising prices of basic commodities and services, accompanying the implementation of Value Added Tax (VAT) and the unpredictable increase of crude oil in the world market to meet the needs of their families. Even the labor sector specifically the employees are in search for things to sell in their offices and work places to augment their income. So even the business and investment sector are now looking for crisis proof business which will entail them a good return on their investment. They don’t want to risk their money to start up business due to ineffective operating systems and knowledge about the market.

But for the Pawnshop Industry, economic crisis is the reason why they are in the business. The people today are learning that they could get a better deal and a better buy in a pawnshop than in a regular retail store. But before we go to Pawnshop Services and Operation let us discuss the Pawnshop’s Nature and its Industry;

The Pawnshop Owner or simply describes as Pawnbrokers (collateral loan brokers) engage in short term credit. This loan is made at a relatively high interest rates based purely on the intrinsic value of the collateral. The business answers the huge loan demand of the people belonging to the low income strata which left unattended by the banking system. The bank usually requires collateral such as real estate properties, salary statements or payrolls, tangible assets like equipments, machines, plant etc., which the middle class does not possess. They also require an arduous and tedious processing which result to untimely release of short-term credit which they needed to pay their over due bills and other financial obligations.

The bank also doesn’t allow small amount of loans ( Php 200.00 to Php 2,000.00) just to pay the said bills, tuition fees and other emergency expenses arises which are not part of the budget allocation for the month.. This economic opportunity – a huge short term credit demand – left unattended in the market by banks and other financial institution made the Pawnshop as the leading grassroots money lender, serving as a source of credit to millions of Filipinos, providing average small-secured loans – Php 200.00 to Php 1,000.00) for a brief time period (2 to 4 months).

In 1999, there was one (1) pawnshop for every 8,756 people in the country and today in the Philippines there are more than 10,000 registered pawnshops and 5,000 pawnshop owners according to the Bangko Sentral ng Pilipinas (BSP) that is up close to 3000 Pawnshop in 2000. This figure far exceeds the number of banks and bank owners in the country.

The BSP and other financial analyst have seen a stable growth rate of 10 -20% in the next several years which means the Philippine Economy can still accommodate 1000 to 2000 new Pawnshops due to the following reasons;

i. HISTORIC GROWTH REGARDLESS OF ECONOMY

Pawnshop does best during periods of high unemployment and tight money when customers seek to convert property to cash. They also do extremely well during periods of economic expansion, when loans tend to be short term and used for meeting unexpected bills for daily consumption, medical expenses, appliance replacement, and home and vehicle repairs.

ii. FAVORABLE LENDING CLIMATE

The Pawnshop Industry is regulated and governed by Presidential Decree No.114 decreed by the late President Marcos in the early 70′s. P.D. 114 has always been favorable to the pawnshop industry. This is the reason why number of pawnshops has increased in previous years.

iii. PROFESSIONALISM AND FRANCHISING

Pawnshop are now manage by Professional Staff and Officers which results to more innovative marketing strategy and customer care that benefits its clientele. It also hires and trains its staff for courtesy and standardized procedures in dealing with the customers particularly those who not been privilege for their education, explaining to them the policies and regulation in entering the short term credit such as the date of expiration and the interest incurred on the said short term loan. Franchising the pawnshop also spear-headed the growth as more interested franchisees wants to invest in pawnshop business, usually amazed with growth of pawnshop in their community, like mushroom sprouting around its corners of the business area. Franchising helps neophyte entrepreneur to achieve success rate of operation and return on their investments at 97% rate compared to 33.33% rate of business success in a trial and error operation system of a starting business.

iv. IMPROVING PUBLIC IMAGE

Sensitive to the historic, unfavorable image of pawnshops, many modern pawnshop operators are striving to win public approval and acceptance. Modern Pawnshop owners are participating in Civic and Religious Organization which has a mission in helping the less privilege sector of society by continuous education in Early Childhood, Earning Additional Income, and Spiritual Nourishment Programs which is vital to regain their dignity and become productive citizens of our society. For instance, SMDC Pawnshop and Jewelry CO., helps the young children of the poor for their Preschool to College Education by sponsoring them in the programs for the poor children and youngsters of Our Lady of Lourdes Catholic Charismatic Foundation Inc. This is part of the social responsibilities being accounted for by the Pawnshop business.

Nowadays, many people see pawnshops as legitimate businesses that pay taxes and hire people, just like other respectable businesses. In the past, the poor reputation was earned, but pawnbrokers have done a good job dispelling those old scenarios and running clean, respectable operations. If the pawnshop owner does not run a respectable pawnshop, most likely he will not make to walk in the ladder of success of pawnshop industry.

source: mixph.com

Starting a Money Changing Business

2011-11-09T11:52:00.000+08:00

There are many places that have a strong demand for a money changing business. The growth of tourism and our large OFW population has guaranteed a huge market to be tapped by money changers. This is one opportunity you may not want to miss. It is a simple business if you know how to start and operate it. Below is a shortened and simplified step by step procedure to give you a basic idea on this business:

1. Find an ideal location. The key to success in this business is to secure a location in a place where there are many potential customers who feel safe when changing money. Previously this was limited to areas where there are many foreigners like the tourist belt. Now, some of the best locations are public markets, commercial areas, malls, and other places where a lot of people find it convenient and secure to change money. A location where you see money changers overflowing with customers are prime spots for putting up this business.

2. Registering a money changing business. A money changer business can be a sole proprietor, corporation, or partnership. Sole proprietors need to go to the department of trade and industry, while corporations and partnerships must go the Securities and Exchange Commission. You then must get a barangay clearance before proceeding to get a mayor’s permit and then registering with the Bureau of Internal Revenue and having your receipts printed.

3. Requirements of the Central Bank. You also need to register with the Central Bank. One of the key requirements of the Central Bank is attendance at the Anti-Money Laundering Law Seminar.

4. Capital needed. While there is no legally mandated minimum amount, it is recommended that you have around five hundred thousand pesos to start this business excluding a minimal amount for renovation, furnishings, and equipment. A bigger capitalization will enable you to have more transactions.

5. Learn buying and selling prices of different currencies. You make your profit from the difference in value between your buying and selling of currencies and so you must know the way of rapidly updating buying and selling prices.

6. Learn counterfeit money detection. The most critical operational skill you and your staff must acquire is to learn how to detect fake currencies. To do this, you must have the tools of the trade: the lens, ultra violet money detector, and white light.

7. Attracting and retaining customers. On the surface it seems that your product or service is hard to differentiate. However, there are many aspects that could be made more appealing to increase the chances of customers preferring your shop. Physically, make external facade look neat with your signage prominent and clean. But the most important is to have well trained staff that can deliver excellent customer service.

The money changing business offers the prospective entrepreneur a solid business opportunity. The demand for this service will most probably continue to grow. If you want to gain more information on money changing, Businesscoach Inc., a leading business seminar provider, offers a two-day seminar on the topic.

source: mixph.com

Making the most out of your bazaar experience

2011-11-04T23:29:00.000+08:00

It's the bazaar season once again and with All Saint's Day and All Soul's Day over and done with, we can expect everyone to go full blast on their holiday preparations. And that includes bazaars!

From the high-end bazaars in posh villages, to celebrity bazaars, and the weekly evening bazaars, major cities in the country will have bazaars left and right to satiate the shopping needs of the Filipino. And since bazaars is an opportunity for entrepreneurs,Entrepreneur.com.ph listed down tips on how you can make the most out of your bazaar experience.

PRE-BAZAAR
1. Research! Research! Research!
Check the track record of the bazaar organizer and the foot traffic of their previous events. Find out if the bazaar’s target market fits yours. Examine the venue’s accessibility and the lineup of merchants as well.

2. Be introspective.
Try to put yourself in the shoes of prospective bazaar-goers and think out if the bazaar venue you have in mind is actually a place you would want to visit. And if there’s going to be an entrance fee, would there be a degree of reluctance on the part of the bazaar-goers?

3. Promotion
Find out how the bazaar organizer can further promote the activity and your brand.

BAZAAR PROPER

1. Flaunt your PR skills.
Really talk to your clients! There is so much you can learn from them by simply listening to their ideas and suggestions on how to improve your products. Get their contact details.

2. Always bring a set of business cards and promotional tools.
Have a business card or flyer ready. That’s also the easiest way to generate regular customers.

3. Smile!
Enjoy the experience and have fun no matter how tedious the bazaar is. Your aura reflects on how you deal with clients, and it can either attract or disappoint a customer.

source:entrepreneur.com.ph

How to Use Twitter for Your Small Business

2011-11-01T14:53:00.000+08:00

For small businesses with no marketing budget, the free microblogging site Twitter can be a powerful means of reaching customers and getting the word out.

Mobile food businesses use it to announce their next location and their menu for the day. Social-media savvy bloggers use it to share their latest postings and articles.

However, many more small business owners either do not understand the purpose of Twitter; or do not know how to use Twitter.

The new book Taking on Twitter: Strategic Tweeting for Small Business We interviewed Kathi Browne on how small businesses should use Twitter:

Why should small businesses use Twitter?

Twitter’s main strength is not selling a business or product. Its strength is in spreading information quickly. At the very least, businesses should consider using Twitter as a resource to stay informed about an industry, customers, and competition. Then those businesses will begin to understand how important it is to have a presence, too.

How can Twitter help business owners reach their target market? How does it help them build their brand?

Twitter makes a direct and indirect impact on a market. You know the saying, “say it enough times and it will be true.” Well, “get seen enough times and you will be known” is equally true. Brand recognition can be greatly improved if you tweet effectively, and that means more people know about you. In addition, the more buzz you create on Twitter, the more it affects your page ranking on search engines like Google.

What is the common mistake that you’ve seen small business owners commit on Twitter?

Too many businesses don’t take the time to understand how Twitter works. They either build up a huge following and then flood them with spam, or tweet really good content to a following of only a few.

Many small businesses hesitate to tweet because they don’t know what to say on Twitter. What should they tweet about?

Social media is about being personable. It is the human quality of a business that keeps people interested. Businesses shouldn’t tweet as a building, but as somebody inside the building. People want a glimpse of who that person is and what makes them adorable, funny, interesting, or unusual. Work a brand or promotion into the storyline and you have a good presence.

For example, imagine a Mary Kay rep tweeting from the perspective of a dog who thinks she runs the place. One day, the dog tweets that she will give a free lipstick to the first person who tweets a picture wearing the same nail polish she is wearing that day. Tweets flood in naming color after color along with pictures of customers wearing the product. Later, the dog announces the winning color (with a picture, of course) and comments on how nice everyone looks. Not only does she get people talking about their favorite Mary Kay color, but the customers enjoy being mentioned too.

What are your top 3 tips for small business owners in using Twitter?

Communicate your social media strategy with all of your employees so they aren’t in the dark and so they can contribute to the success.
Engage with others in two-way conversation.
Give other people the gift of exposure so they will return the favor.

source: powerhomebiz.com

Christmas decor trends feature eco-materials

2011-10-30T13:32:00.001+08:00

Christmas is definitely one of the most anticipated holidays of Filipinos. And it is not only shown with the length of Christmas celebrations in the country but even how well the economy performs during the holiday season.

Not only do Filipinos shop most during the holidays, they are also known worldwide for their creativity and craftsmanship in creating the best holiday ornaments. During the recently concluded October 2011 Manila FAME International, the best Filipino Christmas ornaments made out of natural products were showcased at the Naturalist Pavilion.

source: entrepreneur.com.ph

5 things every franchisee should remember

2011-10-28T23:26:00.001+08:00

After checking out the various brochures, select one franchise concept. Then communicate with the foreign franchisor and get more information. Pay particular attention to the basic terms and fees of the master franchise for the Philippines and the steps to pursuing the application process. The application process varies depending on the franchisor, but the following steps are basic:

1. The Qualification Form. Be honest and forthcoming when filling in this form. Franchisors do background checks.

2. A Visit to the Franchisor’s Head Office. You will have to meet the franchisor face to face to determine your compatibility. Most master franchises have a life span of 10 years or more. Can you work with the franchisor that long? During your visit, request a copy of the Unified Franchise Offering Circular from the US franchisors. These documents contain very important facts about the franchisor.

3. Memorandum of Understanding or Agreement. This document indicates a level of commitment to do business between you and the franchisor. The franchisor normally will indicate payment of a certain percentage of the license fee. If at this point you have even the slightest doubt about getting the franchise, don’t sign the MOU. Franchisors accept the reality that, sometimes, a franchisee needs time to come to a decision.

4. The Business Plan. In the business plan, you—the applicant—map out the strategies for developing the franchise in the Philippines. The franchisor usually provides the format. The business plan and market study should provide you with the initial indicators of the success and viability of the franchise concept.

5. The Master Franchise Agreement. The franchisor normally will give you enough time to review the Master Franchise Agreement. This document indicates the terms of your relationship in the coming years, and may not be amended except through mutual consent. Don’t be intimidated by the number of pages—usually 45 or more—but read through the agreement carefully, and then write down your comments. Get a lawyer familiar with international franchising to review the document. He should be able to translate legal jargon into layman’s language, and make sure the agreement complies with Philippines

source: entrepreneur.com.ph