The One Thing Entrepreneurs Fail to Plan For

Yes, you have the most brilliant idea. And yes, you have the funds. You tell yourself customers will customers will surely look forward to this awesome product.

You become excited.

You create a business plan and make prototypes of the product. You start developing it and spending time on it.

You started selling it to family and friends. And as the circle gets bigger, you realized that your business is growing.

Then, a hiccup.

This is the usual scenario for entrepreneurs.

However, in this scenario, can you guess what’s missing?

The entrepreneur failed to register their business.

By failing to register your business from the start, complications will arise in the near future that will make it hard for you as a entrepreneur. 

Related Article: I Want to Start My Business

5 Reasons Why You Should Register Your Business

1) Establish your business’ identity and reputation

Your business’ reputation will grow positively with your operations. And a good reputation will bring in clients who will rely on you wholeheartedly and will trust you. Take the first step and register your business.

As mentioned above, a lot of entrepreneurs have a lot of bright ideas when it comes to the product they will sell.

By registering your business, you will be able to get a new separate identity for your business. You will be given your own name and identity that no one can steal.

Also, this means that your business name will not be used to any business in the same industry.

This will safeguard your business to competitors that will try to bring your company down.

2) Protection from personal liability

Depending on the business you registered, you should receive some form of protection from personal liability.

What that means is if, by any chance, you got bankrupt and owed a lot of money to suppliers, your personal assets won’t be targeted.

For example, you owe PhP 500,000 to a supplier. You can’t pay them off because your contract was cancelled but you already paid for supplies.

If this goes through legal proceedings (meaning you can’t amicably come to an agreement on this debt), then you will have to pay that whole amount.

If you are registered as a business (and assuming you bought the supplies using the business), then the supplier can only go after the assets of the business. If, however, you are doing this outside a business, then to fulfill that amount, they can go after your house, you car, etc.

Again, certain “business types” or registrations can give you this protection.

3) Makes you look serious

Some contracts and agreements require you to have your business registration certificates and permits. If you have already registered your business, you are already one step ahead in grabbing that opportunity and raking in your revenues!

We had a couple of clients who are in this situation. They have an awesome product or already have connected with big companies to perform some sort of service.

After the negotiations, the company turns over the discussion with accounting — for billing purposes. The accounting department asks for x number of documents as part of their accreditation process.

The client didn’t have one.

They only had to comply when this was brought up. You know what that meant for the client? Additional stress and revenue loss (opportunity cost).

4) Credit and bank investors

It will be easier for you to apply for loans in the bank and open up the business to investors.

Having a registered business, banks will see you and your business to be more reliable and trustworthy, making it easier for them to grant you the funds you need for your future operations and expansions.

Investors won’t give you their money without protecting themselves. The best way to do this legally in the Philippines is buying shares from your corporation as proof of their investment, and consequently, ownership.

If you aren’t registered, investors won’t even put a centavo in your company.

5) Continuity

Think of any big brand names you see daily. Apple, Ford, P&G, Adidas, etc.

Regardless of industry, these names have been there even long after their founders are gone.

So, even if world domination is not in your checklist, it’s still a good idea to keep this in mind. It’s like a legacy that you can pass on to other people.

Maybe there are entrepreneurs who personally choose not to register their business because of the paperwork. But let me remind you that there are a lot of privileges your business can get if you register your business. The long process is definitely worth it.

[PODCAST] Minding Your Business Episode 1: Why

“People don’t buy what you do, they buy why you do it.”

— Simon Sinek, Start With Why

There are two underlying topics that is covered in this podcast: Why do people get into business and why should you register your business.

In this pilot episode, our CEO and Founder, Danella, and Cristina, Chief Growth Officer, talk about the different reasons why business owners get into business.

Why Do People Get Into Business

At Full Suite, we meet different kinds of people. In the podcast, we shared some of our clients and their stories why they got into business. We placed them into 3 broad categories briefly described below:

1) Personal – monetizing a particular skill, knowledge, or craft. This is mainly your passion and something you love doing.

2) Practical – fulfilling a gap / need in the market.

3) Financial – make money and obtain financial security.

I firmly believe that a mixed of all these 3 reasons will contribute to the success of your business.

3 Reasons Why You Should Register Your Business

Registering your business with the government is something a lot of business owners don’t think of first when they get into business. But it is something that you must do because of these three reasons below.

1) Be professional, gain trust

There is a reason why companies have an accreditation process. It’s to determine who has the technical capacity for their requirements, and also determine who will pose a high risk for them.

I’m pretty sure you’ve heard of fly-by-night companies / individuals where upon payment, you no longer hear from them. The accreditation process of companies are there as a security measure to avoid these kinds of things.

In addition, if you are registered, you show that you are credible and have nothing to hide. You gain the trust of potential customers simply because you have legal documents.

2) Potential growth

This is easy to understand. Investors and financial institutions won’t entertain you without legal documents. Sure, they’ll talk to you, but they won’t give you money because it is their only guarantee that their investment will be put to good use.

3) Do your duty 

As a Filipino, we all have duties and responsibilities.

And this is one of them.

Be a good citizen and pay your taxes. You can’t pay your taxes if you do not register.

Your Turn

Wrapping up, the podcast touched on the reasons why people get in to business. There were some examples and references to clients made. in addition, the podcast also discussed the reasons why you should register your business.

Do you think we missed any? Or have some feedback? Feel free to leave them in the comments below.

Also, please don’t forget to subscribe to our podcast!

3 Signs You Need to Register Your Freelancing Work

Freelancing is a choice for a lot of young professionals nowadays. It is categorized primarily as being able to “work from anywhere” and with the possibility of having multiple clients or sources of income.

Here in the Philippines, the benefits of freelancing simply outweigh the cons. You don’t have to worry about a spending a lot of time in a long commute, deciding on what clothes to wear everyday, and many more.

A good number of freelancers start their freelancing careers without registering themselves as such (some don’t even know they have to, yikes!). However, this is not the ideal situation.

Are you a freelancer in the Philippines? Download this free eBook

If they start out employed, freelancers usually take on extra “gigs” as a way to increase their income. Eventually, if they enjoy it or become successful, they may leave their employers to pursue a full-time freelancing career.

When this happens, they are required to register their business. But then they get stuck. They panic. They don’t know what to do. So, before you get into this situation, find out if you need to register your freelancing work.

3 Signs You Need to Register Your Freelancing Work

1) Your clients are asking for a receipt

Corporations and organizations that follow the law usually have an accounting team that implements a strict policy on recording revenues and expenses. Understanding this concept will help you deal with this issue properly.

See, on the company’s side, you are part of their “expenses.” Meaning, they pay you to do something for them as oppose to them hiring their own.

As proof of their payment to you, they will ask you to issue an official receipt in the name of the company. Why? Because this is the only way they can claim your services as a valid expense. Let me explain that further.

The BIR, and consequently, audit firms will look for official receipts because they want to ensure that the expense is relevant to the business (e.g. graphic design for marketing collateral) and is not just made up to lower the tax due.

There have been cases where the BIR disallows certain expenses because they do not meet the requirements stated above. This affects the company in two ways:

  1. They end up paying a more taxes
  2. They have to pay the corresponding penalties on top of this for the mistake.

And, your clients don’t want this to happen to them. That is why they ask for official receipts.

 

2) You cannot pass your client’s or potential client’s accreditation process

Another instance where you need to register your freelancing work is when your client or potential client is asking for some documents that you cannot provide. Most of the time, this document is the BIR Certificate of Registration (COR) or BIR Form 0605.

It is the legal document that serves as the proof of your registration. In it, you can find your tax details, industry, tax types (very important for accounting), etc.

Some companies are known to have this accreditation process. It acts as an automatic filter and protection for them.

You won’t just hire anyone to work for you, right? You need to have their backgrounds checked, verify the info they submitted, etc.

That goes the same for going through the accreditation process. It helps them avoid the hassle in the future of you not performing your work and just taking their money, or them not being able to claim the money they paid you as a valid expense.

Whatever that reason is, going through the accreditation process is the only way to get them as a client. And you can’t do that without registering your business.

3) Your client is deducting withholding taxes

The other sign that you need to register your freelancing work is come payment time, you get less cash accompanied by a document called a Certificate of Creditable Withholding Tax, or BIR Form 2307.

For example, your original contract price was PhP100,000, but you only received PhP90,000 in cash and a 2307 with 10,000 worth indicated.

What does that mean? That 10,000 is actually your money but already paid on your behalf in advance to the government by your client. And you can use the 2307 as a deductible to your income tax due. 

So, if you have an income tax due of 20,000, you can subtract the 10,000 there, so you don’t have to pay the full amount.

Note that you can’t do this if you are not registered. You just have to accept that the cash you receive will always be less than your original contract amount because of this.

Being aware of these 3 signs can help you identify if it’s the right time to register your freelancing work. If it is, then you have to decide which structure is best for you. But if you are simply planning to make a career out of freelancing, I strongly suggest you do it right the first time by registering. You avoid all the headaches and complications in the future.

Do you have any questions? Feel free to ask in the comments below.
Download the Freelancer Registration eBook

The Business Guide to Becoming the Next Filipino Techpreneur

Technology is the greatest impetus in today’s world. It enables people to get things done in lesser time, automate processes, work faster, do multitasking, and so much more, making it an indispensable tool in everyday life. Further, it also changes the way consumers are buying things and choosing brands. That’s why it is important for businesses to become responsive to trends that relate to consumer behavior and preferences.

Business Guide to Become Techpreneur

It is all the more important for entrepreneurs who want to start a business but are not sure on where to start. Here are the latest trends and tips that you can use:

Consumer Trends for Entrepreneurs

If you’re an entrepreneur, these are the things you should prepare for to open up more opportunities for your business in this highly technological society:

1. Buyers’ Psyche

Today’s buyers enjoy a wide array of options—thanks to the active competition in the market, and consumers are bent on finding the one that can give them the most value for their purchases. Their search for quality, innovation, and affordability should be your top consideration as you create your business model.

2. The Luxury of Time

The busy nature of life takes people away from so many activities that they would have otherwise enjoyed if only they had the time for them. You could tap on this group of consumers who would, by all means, skip going to the physical stores for mobile or e-commerce.

3. The Genderless Market

Gender distinction as a touchy subject is not just about championing the cause of the so-called marginalized sector of society, as it also pertains to the way a new breed of consumers is evolving. Specifically, men can be as vain and as chic now—a stereotype that used to be reserved for women alone.

4. The Quest for Well-Being

Filipino consumers are growing more concerned about having balance in life as they try not to be overwhelmed by what an active lifestyle demands. Similarly, you will need to rethink how you could help consumers make wise choices that improve their quality of life.

5. Travel Goals

Travel products and services are on top of the most in-demand commodities in the market today. Travel is very appealing to people because it’s a fun way to explore cultures, meet people, gain new perspectives, and experience the world.

Business Ideas for Today’s Tech Savvy Consumers

The following ideas can be useful as you try to put these business trends into action:

•  Automate business operations.

This will give you a level playing field as you go head-to-head with other business players. Many airlines, for example, are now allowing online check-in in efforts to streamline the process for their customers. Drug stores have a similar concept wherein they encourage patrons to place their orders in advance and arrange for a scheduled pick up.

•  Don’t forget the human touch.

Technology is great in making things easier, but nothing beats personalized customer service. More importantly, feedback is great in improving your product or service. Offer different accessible channels so that they’re not stuck on the phone waiting for a representative. If you’re using email, chat and social media, limit the use of automated or templated responses.

•  Establish online stores.

E-commerce is fast (it takes a few clicks to order something online), convenient (it does not require a whole bunch of business permits), time-saving (it can be done straight from your mobile or desktop devices), and cost-efficient (it does not charge you for on-site operational expenses). Many SMEs first went in this direction, testing the waters first before retailing their products.

•  Expand your target market to reach a wider demographic.

Gone are the days when industries were gender biased. Now, you could hire the services of women drivers or male speech therapists without causing your customers to walk away from your business.

•  Invest in mobile app technologies.

Mobile apps are very suitable for almost any type of industry, whether its travel, education, or retail, you name it. More importantly mobile users in the Philippines continue to increase, having a mobile friendly website and mobile app will enable you to keep in touch with your customers wherever they are.  

Registering Your Business

Of course, these ideas will bear no fruit until they’re executed. Here are guides to point you in the right direction:

The Ultimate Guide to Registering Your Business

Registering Your Trademark or Logo

Expert Advice from Top Business Moguls

 

The shifting trends in consumerism are far from over. Many new ideas, tools, and technologies will emerge in the not-so-distant future, but staying on top of the game should not be that tough if you are resilient enough.

 

Request for a Free Consultation

 

Top 10 Business Trends for the Filipino Entrepreneur

The fast growing economy of the Philippines presents a lot of business opportunities for entrepreneurs. However, it takes more than just patience to go through the paperwork and take the courage to compete with the local market. You need to understand the local culture first, to see if your idea is viable.

If you are planning to open a business in the country, here are 10 latest business trends in the Philippines that can help you make an informed decision.

Top Business Trends in the Philippines

1. DIY Home Design

As more and more millennials move into their own condominiums and apartments, experts see the comeback of DIY wall treatments that could cater to the increasing needs of this demanding demographic.

For instance, wallpapers could become a big hit for a niche market who want to design their own space but don’t have the patience and time to actually paint the walls. Wallpapers also solve the problem of not being able to paint the walls for those who are renting condo spaces.

2. Co-Working Spaces

Millennials are also outnumbering other demographics in the workplace. The majority of millennials yearn for jobs that allow them to have a work-life balance, but at the same time, do more.

Many of these young professionals also shift towards freelancing because of the high returns and low stakes it offers. With more and more freelancers in the market, there would be a demand for more co-working spaces where they can work for longer hours without having to rent a full office.

3. Good Skin Is In

In recent years, we have seen the popularity of the no-makeup look and hashtags such as #IWokeUpLikeThis. More and more people are understanding the underlying fact that the best makeup is actually good skin and not good coverage.

Businesses who cater to the growing demands of the public for affordable skincare services and products could see a boost in the years to come.

4. Online Shopping For Men

Online shopping has transitioned from luxury to necessity in the last few years. In fact, more and more people, especially men, are doing it out of convenience.

And it’s not just about fashion or makeup anymore, these days, you can do you grocery shopping using your smartphone and buy more than just the bare necessities. This online shopping trend is expected to continue in the coming years.

5. Social/Local Entrepreneurship

Patriotism is seen in better light, and more people are favoring business who sell not only local produce but also help local communities, especially the farmers and fishermen.

These social entrepreneurs that focus on locally made and sustainable products will continue to grow. And with the aid of social media and the internet in general, locally made products can easily transition to international markets.

6. Franchising Won’t Work If You’re Lazy

Riding on the wings of already popular brands seems to be the easy way into entrepreneurship for most people, especially the ones who have no experience. But, the success of a new franchise is still dependent on location and how you market it.

While franchisees are given templates and guidelines, lazy ones will not reap the benefits of the brand’s popularity. While many people seem to go this route, Filipino consumers are also after the “next best thing,” which make novelty products such a big hit.

7. Organic Products

Locally grown, organic products are still a hit with consumers who are conscious about what they eat. As more and more people want to know where their food comes from, the market share of organic products will continue to grow. This is not exclusive to food alone.

Organic products in the health and beauty industry, as well as wellness, are also becoming increasing popular.

8. Lifestyle and Travel Apps

As travel becomes cheaper, mobile apps that cater to both travel and lifestyle will become necessities. Apps that allow you to book and pay for your accommodations and tours while in transit are must-haves for multiple types of travelers.

Apps that also cater to the communication problems between tourists and locals in non-English speaking countries could become the norm.

If you are in the mobile app development business, the key is to look for problems that often arise during travel and then create a mobile solution.

9. Digital Advertising and Marketing

Digital advertising is more than just having a website, but it starts there. Websites are not exclusive to large enterprises. Everyone who has a business needs one, and there’s a demand for people who can make this possible at a lower cost.

Apart from websites, there are SEO, e-commerce, business intelligence, SEM, and other digital advertising and marketing need that every business requires to make tap into the Filipino market. Creative services, both print and online, will continue to see bigger gains too.

10. Online Lending

With more people wanting to become entrepreneurs, more people are looking for capital to how to start. Lending practices will become easier and faster, and online lending is the next big thing in capital investments.

Moreover, business who connect talents with venture capitalists could be big in the Philippines, as it already is in Singapore.

Opening a Business

Every business starts with an idea. The difference between successful and unsuccessful businesses is the grit to see things through.

If you have an idea, you need to secure intellectual property rights to protect your business from being copied. If you don’t act fast, your bright idea could be the fortunes of another.

If you have an idea that you think will fly in the Philippine market, it’s time to start planning and creating your roadmap to entrepreneurship.

 

Request for a Free Consultation

10 Expert Advice from The Philippines’ Top Business Moguls

Starting a business in the Philippines is pretty easy. You come up with an idea, create a business plan, get the necessary paperwork, finish the BIR registration, and you’re in business.

While starting is relatively easy, growing it is the hard part. In this article, we’ll share ten business tips from some of the top names in the Philippine business world.

Top Business Moguls’ Expert Advice

1. You Must Have Determination

It is important for a business owner to be determined in his/her purpose to help guide him in the rough patches ahead.

The road to entrepreneurial success is never smooth. There are major challenges that you need to overcome. And when you do, more await you ahead.

If you are determined in your purpose, you will always be eager to move past one challenge without losing focus on the goal.

Eduardo “Danding” Cojuangco Jr.
San Miguel Corporation, Bank of Commerce

“Since I was young, I was determined and told myself that I was never going to be an employee of anybody. Maski mahirap, never an employee (Even if difficult, never an employee),”

shared the then 77-year-old Eduardo “Danding” Cojuangco Jr. during a 2012 interview with Philippine Star (Philstar).

2. Explore the Roads Less Traveled

Many entrepreneurs strike where the iron is hot. In fishing, they flock to where the fishes are biting. However, this could end up in a saturated market.

Having a vision to invest in the next big thing is one of the traits that could help you become a game changer in the business arena.

Andrew Tan
Megaworld Corporation, Alliance Global Group Inc., Emperador Distillers, Golden Arches Development Corporation

“I hope we business people can invest more aggressively outside Metro Manila, whether in real estate, factories, or other enterprises, in order to give equal opportunities to all other regions. If we invest more outside Metro Manila, there will be more jobs in other regions, then people need not all flock here to seek better lives, and then our roads wouldn’t be too congested,”

said Andrew Tan during an interview with the Philippine Star in 2014.

3. Failure Is Part of the Game

The success equation consists of the good, the bad, the successes, and the failures. The country’s top business moguls didn’t start at the triumph.

Just because they are very successful now doesn’t mean they didn’t experience rejections and failures along the way. Failure is part of the ballgame. If you are planning to jump ships from being an employee to an employer, you have to understand this part of the equation as early as possible.

Lucio Tan
Asia Brewery, Tanduay Holdings, Fortune Tobacco, Philippine Airlines (PAL)

“Entrepreneurs should never give up due to failure. Not just entrepreneurs, but people of whatever profession – all of us- should learn from our setbacks. We should never surrender to despair,”

said Lucio Tan.

4. Aspire to Be No. 1

Planning to open an ice buko business? Sell the best ice buko there is. Opening a hair salon? Hire the right people and help them become the best.

Give the best value for your customer’s hard-earned money. It doesn’t matter what business or industry you’re in. A good business owner will always have the mindset of becoming no. 1 in his field.

Henry Sy
Shoe Mart (SM), SM Group, SM Prime Holdings

“Ever since I was a kid, I’ve always believed in doing my best, that one should aspire to be No. 1. Our businesses also help promote socio-economic progress,”

said Henry Sy in a 2011 interview with the Philippine Star.

5. Take Risks

McDonald’s founder, Ray Kroc, once said,

“If you’re not a risk taker, you should get the hell out of business.”

Business is for people who have the guts to fail and the determination to success. So, take risks, especially in your younger years because you will have more time to recover.

We’re not saying you should burn your money at a casino. We’re talking about calculated risks such as going into a business and withstanding the challenges that come with it.

6. Hire the Right People

When you’re running a family business, it’s normal to hire individuals in the family. This is especially rampant in the Philippines. However, if you believe that day-to-day operations will run better in the hands of outside professionals, leave the mindset of “utang na loob” and get the right people for the job.

Lance Gokongwei
JG Summit Group

“There comes a time when there is not enough jobs for everyone in the family. Oftentimes, professionals may even be better in running the day to day operations,”

said Lance Gokongwei in an interview with the Philippine Star in 2012. Lance is the son of business mogul, John Gokongwei. This is one of the commandments John followed in running the family business.

7. Trust Your Gut

You hear this all the time: go with your gut. It sounds too old school, especially if it comes from business moguls who have done their share of hardships and sacrifices and aren’t reaping the rewards of their hard work.

There’s a scientific explanation behind this. Your brain has two memory types—implicit and explicit. Implicit memory is said to be involved in the so-called gut feelings. This memory type covers all the information that gets stuck in your head and is the reason you can recall lines to a song you heard years ago. It is also the one that tells you not to touch a burning coal. These are the information that your brain absorbed.

In business, listening to your gut is having that second voice that guides or prevents you from doing something you might regret because of an experience or information you unconsciously absorbed before. Listening to your gut is quite useful if you’re on a fork road in business.

Kathleen Dy-Go
Universal Records

“Sometimes, you just have to go with your gut feel for a certain strategy or business model that you want to try. It is not always good to stay on the safe side because you never know if something will work unless you try,”

shared Kathleen Dy-Go of Universal Records in an interview with the Philippine Star in 2015.

8. Build Your A-Team

A successful entrepreneur did not make it on his own. Talk to any entrepreneur, and you’ll see that there are many people who helped him become who he is today. These people may be mentors or partners or even your own employees.

If you want massive success, you have to build a great team, and when you do, you have to do your role in nation building and helping communities succeeded by teaching them relevant skills.

Bam Aquino
Philippine Senator, Go Negosyo

“We shouldn’t forget we have a role to play in nation-building. The best entrepreneur is the one that never succeeds alone, and helps the success of his community,”

said Senator Bam Aquino during a 2015 interview with the Philippine Star.

9. Do Your Time

You hear a lot of overnight success all the time, especially now that anyone can become a millionaire by building a single app.

Yes, they became millionaires overnight because they sold their products to the bigger players, but what you don’t know is that they spent years building prototypes, testing, launching, and getting the world out until they landed a big break.

These years are part of their success equation, as nobody becomes a successful entrepreneur overnight.

10. Be Brave

There are going to be rough days, months, and even years. What you do in times of adversity will build you character. This is where determination comes into play and will keep you focused on moving forward.

Ben Chan
Bench Apparels

“The real test of an entrepreneur is how far he can go when the tides of business turn for the worse. It is in times like these when he should be unafraid. Be aggressive. Know your market’s needs and serve them,”

said Ben Chan.

Start Building the Future You Want Today

Being an entrepreneur is easy, but becoming a successful entrepreneur is a new ball game. It takes more than just a very good idea to have a successful business. You need vision, determination, a strong gut, and most of all, courage to plow ahead and take your idea as far as it can go.
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Taking the Leap: Start Your Own Business or Join a Franchise?

The culture of entrepreneurship is gradually becoming the livelihood choice of many Filipinos today. The economic potential and socio-cultural evolution of the business environment is appealing to individuals who feel that it’s time for them to leave the corporate world, as well as those who want to put their investment resources to good use.

If you are a budding entrepreneur who is setting out to trek into the business arena, you’ll first have to decide whether you want to put up your own enterprise or go for franchising. Capital, the return of investment, logistics, target customers, marketing strategies—these are some of the most important factors that you have to consider as you prepare to launch your business.

This piece lets you in on the opportunities and challenges that lie ahead for you whether you choose to start your own business venture or become a franchise holder.

The Startup Venture

Most business owners started with a small to medium enterprise on their first venture. Their passion and interest to offer something useful to customers drove them to establish their business.

If you choose this model, specifically single proprietorship, you’ll mostly be managing your business independently.

Benefits to Starting Your Own Business

1. You’ll grow in knowledge and skills

People who are not business majors but are inclined to business have equal chances of succeeding as they learn through and gain experience in operating the business every day.

2. You have complete control

You’re not expected to follow after someone else’s system on how to run the business. You can introduce, update, innovate, and modify your operating procedures as you deem fit. This also includes lowering or increasing the cost of your product or service depending on your marketing strategy.

Challenges in Starting a Business

1. It is costly

You need to have enough capital to launch your business. Capital requirements cover both operating expenses (supplies, space rental, salaries, etc.) and contingencies.

2. You should know bookkeeping and accounting

Don’t just rely on your accountant (if you decide to get one) to record your business’ financial statements. Note that you may be held legally liable if you do not properly keep tabs on the cash flow within your enterprise.

3. The administrative and legal process is very complicated

This may be one of the greatest hurdles that start-up entrepreneurs have to face ever. You’ll be coordinating and dealing with numerous government institutions to secure business documents and licenses, which are necessary for you to start operating your business.

The Franchising Solution

In franchising, you as the “franchisee” intends to acquire the right to use an existing business model from the rightful owner or the “franchisor.”

The business name or trademark, operational manual, and training modules from the business owner are part of the franchising package you’ll need to pay.

Benefits to Franchising

1. The rate of success is high

As a business model, a franchise depends on a tested formula that has made the business grow and succeed. You only need to implement that formula in your franchise.

2. Product recall is easily achieved

Since your franchise is associated with a recognized brand, customers will be able to identify your business with ease and warm reception.

3. The support system is readily available

The franchisor will typically assist you in administrative tasks such as securing a business permit in the Philippines, complying with BIR registration requirements, as well as hiring and marketing concerns. Huge amounts of time and effort can be saved.

4. Finances lean toward profitability and resale ability

Again, businesses with established reputations have much to do with it. Your franchise is more likely to benefit from a good standing with creditors and asset buyers.

Since you have access to low-cost supplies courtesy of your franchisor, you can also expect higher returns in sale and profit.

Challenges in Franchising

1. Control is not absolutely yours

As a franchise, you’re expected to stick to the existing business model. You cannot just introduce new systems as you wish.

2. Additional costs may be incurred

Apart from paying franchising and royalty fees to your franchisor, part of your monthly revenue will go to the franchisor. Fees for additional services like advertising costs may also be charged to your account.

3. Failed expectations happen

Both you and the franchisor may have to deal with issues that may affect your business relationship with another. On one end, the franchisor might not be able to give adequate support to help your franchise take off in the right direction, and yet, put undue pressure regarding profit distribution.

On the other hand, lack of drive or reluctance on your part in overseeing the day-to-day operations might result in business losses.

The Verdict

Sure, there will always be risks involved in any business. It all boils down to which one has reduced calculated risks that first-time entrepreneurs are prepared to handle. In which case, you’d do well looking around for franchising opportunities to get you started.

Then again, if you feel you have a great business sense, use it to transform your start-up into a more bankable enterprise in the future.

 

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The Beginner’s Guide to Intellectual Property Laws in The Philippines

With the advent of technology comes along the access to all kinds of information as well.

Albeit playing a positive role in the lives we currently enjoy, globalization also brought about problems in the business world with regards to the protection of intellectual property and product patents.

As information is readily available, important details can get siphoned off without proper endorsement from the actual person or company whom the information belongs to. But, all these changes don’t necessarily need to be viewed in a negative light.

As long as you are able to take charge of the situation and keep yourself safeguarded, information in the form of new products or even technology should be shared with the world—especially if many would benefit from it.

Intellectual Property in the Philippines

Intellectual property refers to anything created by someone, including but not limited to inventions, literary works, items created by artists (e.g. artwork and musical pieces), symbols, designs, images, pictures, and even names that are used for commercial purposes.

All these creations are protected by the law, ensuring that the people behind it are given due recognition or remuneration for their effort.

At the office of the Intellectual Property in the Philippines, there are several categories wherein a creator or innovator can register their creation under. Below are some categories:

Patent

A patent refers to the exclusive rights to a product or process, as well as its improvements—granted that the product or process offers something new and useful.

The inventor or creator with the patent has the right to choose as to who can use, sell, or even make something similar during its 2-year validity period.

Throughout the entire duration, a patent’s information must be available to the public, as the owner is given enough time to gain ample commercial returns. Some examples of inventions or creations that can be filed as patents include new and useful machines, products and processes (non-biological and microbiological in nature); improvements of machines, products and processes; and microorganisms.

The basic requirements for a creation to be considered patentable are that the creation would have a novel idea, inventive, and can be applied in an industrial setting.

Application Process

One needs to fill out a Request Form for a Grant of Philippine Patent, as well as submit descriptions and drawings of the invention or process.

Once the application has been filed, it will be published in the IPO Gazette. During the period of its publication, anyone can write in or contest the application.

Corresponding filing fees amount to PHP 3,600 and PHP 1,800, for big and small inventions, respectively.

Trademark

A trademark is a tool used to differentiate services and goods from one another. It can be in the form of a word or a group of words; a sign, logo, or symbol. It could even be a combination of those above.

Essential in marketing your products or services, a trademark will help consumers identify your brand among the many others in the market. To protect your business’ trademark, it is advisable to have it registered.

This way, the owner of the trademark would have exclusive rights to make use of the mark. Furthermore, it will ensure that no one else can use the same or even a similar mark for the products or services of a similar nature.

Application Process

Similar to a patent, you need to apply or file for the exclusive rights of the mark you wish to use for business purposes. As the rights to a mark are granted to the first person who filed with the IPO, it is imperative that one would conduct a search within the IPO’s Database to avoid redundancies in applications.

For filing purposes, one needs to fill out the Trademark Application Form, as well as attach a drawing of the mark. Corresponding filing fees amount to PHP 2,160 and PHP 1,080, for big and small marks, respectively.

Copyright

A copyright refers to the protection given to the owner of an original work covering literary works, musical pieces, paintings, and computer programs, among others.

Under the copyright laws, the owner of the original work is entitled to economic rights and moral rights. Economic rights enable the creator to receive profit gains should his works be distributed by third parties. Moral rights, on the other hand, protect the connection between the creator and his work.

Once the owner receives the rights to his work, unauthorized third parties are prohibited from selling or distributing the works, especially for trade purposes.

Application Process

One needs to fill out an application form, attach a copy of their work, and pay the basic filing fee of PHP 625 at the IPO.

The Madrid Protocol

The Madrid Protocol is an international treaty, allowing trademark registration in the Philippines or any country—as long as they are part of the Madrid Protocol.

One would only need to file a single application. Should your application be ratified, the approved mark will be protected in all the countries that are part of the Madrid Protocol.

By acceding to the Madrid Protocol, trademark owners in the Philippines would have better platforms to secure protection for their respective marks. The Madrid Protocol offers a simple and cost-effective solution that promotes transparency and enables entrepreneurs to secure their marks in a faster and easier manner.

Moreover, it encourages opening up businesses in multiple countries, as one can designate the countries where their marks would need protection. With the Madrid Protocol, companies can widen their market segment while keeping their interests in check.

With globalization, gaps between countries are now bridged easily. Businesspeople can now partake in business dealings around the world without having to worry about infringement of information.

With the help of all these intellectual property laws, information now becomes a boon to society.

 

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The Ultimate Guide to Registering Your Business in the Philippines [Infographic]

Doing business in the Philippines entails paperwork and registering with different government branches for it to be considered legal. Don’t know where to start? Consider this infographic your ultimate guide to registering your business in the Philippines.

 

The Ultimate Guide to Registering Your Business in the Philippines

 

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Philippines Makes Doing Business Easier

Starting a Business Simplified to 6 Steps and 8 Days; Payroll-Related Payments Reduced from 36 to 13.

The country today unveiled in a press conference reforms that would simplify the process of starting a business to six steps and eight days, down from the existing 16 steps and 34 days.

The government also announced e-government initiatives for payroll-related transactions to Philhealth and Pag-Ibig, reducing the number of payments from 36 to 13 per year.

These reforms are a product of the National Competitiveness Council’s Gameplan 3.0 which aims to synergize government processes related to easing the conduct of business in the Philippines.

For the complete press release: Philippines Makes Doing Business Easier – DTI

 

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