Nothing could make a business owner happier than knowing that the venture is turning out to be a success. Expanding the business is a good indicator that things are going well, and the future is looking bright. It might be one of the most exciting things you can embark on as a business owner, but before you open another branch, ask yourself the following questions:
Expanding Business in the Philippines
1. Do I See the Bigger Picture?
Excellent entrepreneurs know that planning is the key to success. Without a plan, your company could derail and fail.
Always think about the long-term effects of every business decision. The bigger picture serves as your roadmap that can help you evaluate the future of your business.
2. Am I Realistic?
Just because you can expand does not mean you should, especially if it will be at the cost of your current cash-flow.
Remember the saying don’t count your eggs before they hatch? You might be tempted to strike while the iron is hot, but pause for a second and ask yourself if this really is the next best logical step.
3. What Will Be My Business Structure?
One of the trickiest parts of owning a business is deciding how to run it. When you are expanding, potential investors and partners might come in. Take into consideration the kind of structure you see yourself expanding with. Will it be a sole proprietorship or corporation?
When you are deciding your business structure, take into consideration things like the degree of control you want to have over your business, the kind of organization, will you open it up to investors, and other legal requirements.
4. Should I Consult a Professional?
You might think a lot of the business concepts you need to learn about running a successful business can be found online. After all, we are in the digital age. While this may be true, management strategies are not one-size fits all.
What worked for someone else’s enterprise might not work for you, and you need to tailor-fit your tactics. Having an experienced professional onboard can help you avoid unnecessary mistakes.
5. Am I Aware of the New Legal Requirements and Tax Responsibilities?
Keep in mind that expanding your business may require you to register as another business entity. For example, to level-up from a BMBE (Barangay Micro-Business Enterprise) to an SME (Small Business Enterprise), you have to register as a sole proprietor which comes with a new set of requirements. If you want to expand your small business and build a branch, that comes with different conditions especially if you’re a foreign investor.
6. Is Expanding the Right Choice?
Expanding might be a good thing, but doing it before you are ready can hurt your business. Every business goes through different stages before it matures. Create a business forecast and evaluate the potential of expansion.
In a nutshell, think about your business before exploring expansion opportunities. Use your passion as the driving force and only work in a system that is comfortable for you.