Business advice for the clueless salaryman

[greenlyt]

Sun Tzu's Art of War

go to business as if your going to war

[1D4LV]

Sun Tzu's Art of War

go to business as if your going to war

SUn Tzu's book (The Art of War), describes that you need to know your enemy first before going to war. In business, you should know the market that you are trying to get into, and your competitors on how they do theirs.

[1D4LV]

You would need a rather long line of credit or cash and a lot of luck. Plus of course hard work but that's a given already. Also change your mindset from being an employee to being an entrepreneur, not as easy as it sounds.

true.
there are times wherein cashflows are difficult because your clients may not pay you on time, so that salaries, payment of utilities, rent, other expenses and restock of supplies would be very difficult.

[zan]

very interesting thread.

[carwhacko]

Nice thread! Nakapag isipp ka na ba TS ng business mo? My family is also looking for other business ventures since my dad will retire next year. My mom is already in a lending business, lanzones business in Camiguin but low profit and seasonal (once a year) and now we ventured logistics. My brother who is also in the IT industry plans to have a business on his own and we are planning to franchise GrainSmart. Have you heard of that franchise business?

[Wh1stl3r2]

One thing learned from being an SME in the Philippines is, never get into something that involves you having to give out credit. Just don't.

[carwhacko]

One thing learned from being an SME in the Philippines is, never get into something that involves you having to give out credit. Just don't.

Why is that sir?

[1D4LV]

Why is that sir?

two reasons:

a. if you are an SME, you do not have deep pockets. credit means, not having cash immediately. on terms. it will affect you sooner na day to day operations mo proproblemahin mo.

b. if on credit, collections will be an issue. most of your clients may not pay on time, some may not pay at all. it goes back to your cash flow.

[carwhacko]

two reasons:

a. if you are an SME, you do not have deep pockets. credit means, not having cash immediately. on terms. it will affect you sooner na day to day operations mo proproblemahin mo.

b. if on credit, collections will be an issue. most of your clients may not pay on time, some may not pay at all. it goes back to your cash flow.

Couldnt agree more. But then again, it helps us pay the bills pero stressful sobra. Kaya nagventure na rin kame and still looking for other business opportunities. Okay ang logistics pero need ng big money. Hindi reliable yung mag-palending. Pero like other business din naiisip ko may ups and lows. Nasa paghawak nalang ng pera siguro at more pagsisinop.

[1D4LV]

Couldnt agree more. But then again, it helps us pay the bills pero stressful sobra. Kaya nagventure na rin kame and still looking for other business opportunities. Okay ang logistics pero need ng big money. Hindi reliable yung mag-palending. Pero like other business din naiisip ko may ups and lows. Nasa paghawak nalang ng pera siguro at more pagsisinop.

as they say, if you are starting a business, do not expect that you will live by its earnings. first to three years, loss pa yan and you cannot afford to get revenues from it. much better if you start something, pero may day job ka pa din.

if the business starts making a profit, then you should start paying yourself, but not what you expect it to be. maliit muna. kung medyo malaki ang personal expenses mo, di pa din pwede. dapat may matira pa ding revenue para mapatakbo ang operations ng negosyo.

depende sa negosyo, but hire the best person for sales and marketing. it is the blood of the business. kung retail naman, invest in marketing so that your products will be immediately out in the market and be known. kung corporate business naman, sa sales and marketing. your product should have its own value (proposition) para angat ka sa iba and bibilihin ka. it is the buyer's mindset na bibilihin nya ang the best that money can buy.

para sa mga may plano pa lang, don't expect it to be easy the first few years.

[1D4LV]

Nice thread! Nakapag isipp ka na ba TS ng business mo? My family is also looking for other business ventures since my dad will retire next year. My mom is already in a lending business, lanzones business in Camiguin but low profit and seasonal (once a year) and now we ventured logistics. My brother who is also in the IT industry plans to have a business on his own and we are planning to franchise GrainSmart. Have you heard of that franchise business?

if your dad is retiring and you do not have any ideas pa on what business to go, i suggest that you tell dad to park the retirement proceeds in a mutual fund muna so it can earn. mahirap isugal ang retirement money sa negosyong di pinagaralan masyado. pwede mawala lahat yun. now if your dad is a professional, you can suggest him to go into the following, while his money is parked sa investment channels:

a. he can do part time consulting.
b. he can teach.
c. he can be a financial planner/insurance agent.

walang gastos and investment yan mga yan masyado (that is kung meron syang masteral for item b.). kikita sya for day to day, while passively earning from the investments.

another option. if the retirement proceed is significant, he can invest in land. pwedeng taniman, pwedeng patayuan ng apartments na paupahan, o pwedeng ipa commercial lease.

suggestions ko lang ito ha?

[carwhacko]

I agree. Thank you sa mga payo boss.


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[Wh1stl3r2]

Why is that sir?

Because credit collection in the Ph is hard. Justice system is really slow and gives potential estafadors all the time in the world to get away. Getting warrants of arrest and pulling out property are very involved, costly and tedious processes.

Small claims court helps for small amounts, but for 100k+ it takes so much longer. And when you get to arbitration the judge will almost always plea for better terms or dropping of penalties for the offender, saying "pera lang yan".

*1D4LV
Re: a. It may be true for most, but some SME's I know (not me) have pretty deep pockets in the upper 8 to lower 9 figures. They still consider themselves "medium" enterprises. They are well financed and have so much extra funds (baka cronies) they are always looking for other businesses to invest in.

But still I get your point. Although it doesn't matter how much money you have. If you don't know how to balance your a/r & a/p you'll always end up short on funds.

[1D4LV]

Because credit collection in the Ph is hard. Justice system is really slow and gives potential estafadors all the time in the world to get away. Getting warrants of arrest and pulling out property are very involved, costly and tedious processes.

Small claims court helps for small amounts, but for 100k+ it takes so much longer. And when you get to arbitration the judge will almost always plea for better terms or dropping of penalties for the offender, saying "pera lang yan".

*1D4LV
Re: a. It may be true for most, but some SME's I know (not me) have pretty deep pockets in the upper 8 to lower 9 figures. They still consider themselves "medium" enterprises. They are well financed and have so much extra funds (baka cronies) they are always looking for other businesses to invest in.

But still I get your point. Although it doesn't matter how much money you have. If you don't know how to balance your a/r & a/p you'll always end up short on funds.

in debt collection, kung walang pambayad and kung walang properties, nganga. much more sa small claims court wherein amounts less than 200k are entertained. the decision is "payment", but enforcement? nganga. gagastos ka pa.

on the SMEs, depende talaga yan sa may ari. some of them have deeper pockets. but most of the the people who have started their own business do not have such things like that and most of them have only resorted to loans.

[crosswind]

A water refiling station(like aqua best) we used to own one kaso no time para asikasuhin kaya binenta namin sa relatives
needs mo for invesment
Place
Water purifier, filters, and the likes
Delivery van a Suzuki carry(200k) or a tricycle

[niky]

two reasons:

a. if you are an SME, you do not have deep pockets. credit means, not having cash immediately. on terms. it will affect you sooner na day to day operations mo proproblemahin mo.

b. if on credit, collections will be an issue. most of your clients may not pay on time, some may not pay at all. it goes back to your cash flow.

Yup.

While customer loyalty is nice, you can't eat loyalty.

Learned the hard way.

[badsekktor]

as they say, if you are starting a business, do not expect that you will live by its earnings. first to three years, loss pa yan and you cannot afford to get revenues from it. much better if you start something, pero may day job ka pa din.

if the business starts making a profit, then you should start paying yourself, but not what you expect it to be. maliit muna. kung medyo malaki ang personal expenses mo, di pa din pwede. dapat may matira pa ding revenue para mapatakbo ang operations ng negosyo.

depende sa negosyo, but hire the best person for sales and marketing. it is the blood of the business. kung retail naman, invest in marketing so that your products will be immediately out in the market and be known. kung corporate business naman, sa sales and marketing. your product should have its own value (proposition) para angat ka sa iba and bibilihin ka. it is the buyer's mindset na bibilihin nya ang the best that money can buy.

para sa mga may plano pa lang, don't expect it to be easy the first few years.

i agree on this! The first 2 to 3 years talaga ang crucial sa business. Told this to my friend. Oo lang siya ng oo kaya ayun after ma-retrench pumasok sa negosyo. Laki pa ng ginastos para mapaganda yun pwesto niya. Pero mukhang malulugi yun negosyo. Bibitawan na yun bahay nila. Sabi ko nga live below your means.... nag-asawa kasi ng high maintenance.... eh di ngayon nganga sila. Lakas kumita dati puro gastos at pasyal inatupag. Di nag-ipon, di nag-invest....

Agree ako about marketing... luckily forte ni misis yan.

[champlm]

This is one of my dilemmas too. I am earning well naman but I know I can't be an employee forever. We don't know when the company will ax us, right?

Gusto ko pumasok sa business but don't know what and how to start. I have modest savings but these are hard earned money, I want to start small para konti lang muna puhunan and I can still breathe comfortably knowing na may cash on hand pa ko for emergency purposes. I tried partnering with a relative before for a small business pero hindi pinalad.

[1D4LV]

This is one of my dilemmas too. I am earning well naman but I know I can't be an employee forever. We don't know when the company will ax us, right?

Gusto ko pumasok sa business but don't know what and how to start. I have modest savings but these are hard earned money, I want to start small para konti lang muna puhunan and I can still breathe comfortably knowing na may cash on hand pa ko for emergency purposes. I tried partnering with a relative before for a small business pero hindi pinalad.

my advice.
if you have some modest savings while you are working, invest it in investment channels like mutual funds and stocks, wherein you can still continue earning from your job, while earning passively from investments.
then when the time you are ready (or if the company will axe you), mas malaki ang naitago mo.
you cannot afford to lose your hard earned money from savings which you are not familiar of. mas nakakahinayang.

and when you invest it in higher yielding channels, you defeat inflation compared to putting your money in the bank.

[champlm]

my advice.
if you have some modest savings while you are working, invest it in investment channels like mutual funds and stocks, wherein you can still continue earning from your job, while earning passively from investments.
then when the time you are ready (or if the company will axe you), mas malaki ang naitago mo.
you cannot afford to lose your hard earned money from savings which you are not familiar of. mas nakakahinayang.

and when you invest it in higher yielding channels, you defeat inflation compared to putting your money in the bank.

i already did, pero ciempre modest lang din.