What’s Next: How To Grow Your Small Business
By Alyanna Therese Tagamolila
To the common Filipino, starting a business can be equated to gambling, it is seen as a high-rish high-reward opportunity that rests on chance instead of sound planning, investing and security. With more and more people deciding to start a business in the midst of the pandemic, it is time to bench the notion that starting a business is a gamble. Make no mistake, IT IS a gamble, but it is not based on chance – it is based on data, hard work and innovative ideas.
The Hesitant Filipino
The hesitant Filipino usually has one of the four reasons listed below when asked why they are not willing to start a business. More often than not, they considered it as a passing thought but dismissed it as too ludicrous – this is an understandable notion as society has conditioned us to think that the 9-5 work days of the corporate world is the way to gain financial stability, the goal of each and every adult individual. However, these reasons of the hesitant Filipino are actually the reasons why to start a business, not to abandon the thought of it.
1. Lack of the Right Mindset
Filipinos still think that entrepreneurship is a western style of thinking. That employment is still the practical route. Entrepreneurship is too much of a risk, and the return is uncertain. Starting a business, starts by chainging ones mindset. You have to shift from having a consumer mindset to a problem solver mindset. From “what to buy” to “what to sell”. Business isn’t all about profit. Its also about helping communities by providing a solution through your business while also stimulating economic growth by providing employment opportunities.
2. Investing Hard Earned Money on a Business Is Riskier Than Putting it in a Bank
If you already have money saved up and are just hesitant to use it to start a business because you think there are more stable ways to invest and that your funds will be safer in a savings account, then you might just have to recalibrate your mindset: why not use it for a business for return of investment PLUS ten or more times the interest (profit) you will earn as it sits dormant in a bank?
We understand that the hesitation stems from thinking that starting a business is money down the drain, but that is why the first step is to talk business over with the “business people”. Consultants, data analysts and a trustworthy team will be able to give you a realistic business forecast along with a timeline for your return of investment and profit.
3. Don’t Know Where or How To Begin
Another reason is that you might not know how to go about it. Yes you have the idea, yes you have the money but how do you go about making a business? This is where the endless learning starts! There are several avenues to learn how to own and manage a business and other available options such as outsourcing to a consultancy company if you want an accelerated timeline. Don’t know how to go about it? The best advice is: you don’t need to know how to go about it, you just have to connect with people who do know how to go about it.
4. Too Idealistic Leading To Early Burnout
Another common occurrence is that the hesitant Filipino dabble early on and take the first few steps to establishing a business and once they encounter a few roadblocks or once they realized it wasn’t as fun as they thought it would be, they were disheartened and didn’t continue. With this, what needs to be done is to set your expectations and your mindset. As was said a while ago, starting a business isn’t just a high-risk high-reward gamble, it is hard work with delayed gratification. The important thing is to focus on the gratification — reaching your goal — that is sure to come no matter how delayed it will be and to remain consistent. Consistency means putting one step forward and going on with your business even if the gratification is yet to come – you’ll get there eventually!
5. Lack of Funds or Know How on Where to Get Capital
The hardest thing to solve is the lack of funds because truth be told, the bigger the start-up amount, the bigger and wider the steps to establishing a business can be taken. However, there are two workarounds for this: start small or find investors. Starting small means beginning your business from the ground up – use your connections and just make enough of your products to sell to your neighbors or friends and slowly profit from that and make the business larger and larger. The other choice would be to find investors – meet with people you know and trust that will be able to give you the star-up funds you needed with an internal arrangement on investor shares. Eitherway is a noble way to start a business without having to spend funds you don’t have!
The hesitancy in starting a business is understandable as not everyone is equipped with the business know-how that allows businesses to see the long-term moneymaking benefits of having a business. This is why RBMC is here to encourage all aspiring business owners to use the knowledge in this article, take the first step and start their business! RBMC is here to help with our trusty team of consultants, analysts and even marketing specialists.