Starting Business In The Philippines
There’s been so much good news coming out of the Philippines in recent months — three upgrades by international ratings agencies; Finance Secretary Cesar Purisima was named 2012 Finance Minister of the Year by Euromoney; the economy is forecast to be the sixth fastest-growing in the world between 2010 and 2050; there’s a new, credible peace agreement in the south; IT-BPO looks set to attain its stretch target of $25 billion in revenues in 2016; and, competitiveness is on the rise according to the World Economic Forum — that it was a bit of shock last week when the International Finance Corporation (IFC) and The World Bank announced that it’s still too difficult to set up a business here.
And it got tougher this year, not easier.
According to the IFC report, Doing Business 2013: Smarter Regulations for Small and Mid-Size Enterprises, the Philippines fell to 138 of 185 companies in the report, down from 136 of 183 companies in the previous report. Of the 10 categories, the Philippines scored more poorly than last year in seven. Particularly notable was the number of procedures to start a business — 16 — up from 15. In Malaysia, there are just three. In New Zealand, it takes a day to set up a business.
Why, you have to ask, can’t the Philippines do in three procedures what Malaysia does? Not unexpectedly, the National Competitiveness Council (NCC) took issue with the IFC report, particularly the days required to perform the 16 procedures, arguing that it takes “just” 27 days to set up a business in the Philippines, not the 36 — up from 35 — claimed in the IFC report. NCC co-chairman Guillermo “Bill” Luz added that, “‘we will continue to make changes in the (number of) days (it takes to start a business) and cut it back,’” according to one report.
“‘We have a fighting target to take that down below 10 days next year and to also drastically reduce the steps from 16 to fewer than 10 also in the coming years,’” he said. The Philippines is competing with Malaysia for jobs and investment — including in the high-stakes IT-BPO industry. Malaysia reported foreign direct investment (FDI) of $4.4 billion in the first six months of the year, compared to less than a billion dollars for the Philippines.
There are many reasons for this contrast in investment receipts, but don’t underestimate the impact of a stubborn, change-resistant bureaucracy that is loath to see any revenue opportunity pass it by — no matter the stakes involved. While Mr. Luz has his work cut out for him battling, cajoling, and pleading with the bureaucracy, the goal should not be 10 days or 10 procedures. It should be one day, and one procedure.
But there are six other urgent ways the Philippines needs to make setting up a business easier. First, the shocker. The Philippines not only has the most expensive electricity cost in Asia, it’s way too difficult to get connected to the grid, and it’s getting worse. The Philippines fell to 57 from 53 in this category. How about registering property? Not easy. The Philippines fell to 122 from 120.
And forget about getting credit. The Philippines is 129, down from 127. So bring your own cash and leverage your international banking network. But oh, that’s kind of hard for local entrepreneurs. For international investors, protecting your investment through good corporate governance is also iffy. The Philippines fell to 128 from 124. Wonder why the Philippines doesn’t have more resources available for infrastructure? The Philippines ranks 143, down from 136 in paying taxes.
Enforcing contracts is another challenge, thanks to a troubled judiciary and a toxic, litigious legal environment in which cases take decades to wind themselves through the courts. While the Philippines has a lot going for it, it’s not hard to understand why investors are shy. Even in categories the Philippines improved, its showing is poor. Resolving insolvency? 165, 5.7 years, and the most costly. Trading across borders, 53. Dealing with construction permits, 100, mostly as a result of a process that involves 29 procedures.
These results show that no matter how swimmingly things are going, there’s always something left to fix. While the administration of President Benigno S. Aquino III understandably must prioritize reforms, those impacting investment and job creation should be at the top of the list. To be fair, in many respects they have been. But the Philippines is still not addressing the bureaucracy and the roadblocks it erects to prosperity.
That needs to change.
By MICHAEL ALLAN HAMLIN
Showing posts with label starting business. Show all posts
Showing posts with label starting business. Show all posts
1.11.12
Businesses You Can Start For Under $1,000
Businesses You Can Start For Under $1,000
Did you ever dream about having your own business but stopped short because you didn't believe that you had enough funds to succeed on your own? Well, you may be pleased to learn that there are a number of businesses that you can start for under $1,000.
Freelancing
One way to start a small business is by working as a freelancer, doing side gigs on whatever interests you. You will have low overhead, insurance and medical costs, especially if you are keeping a part-time or full-time job. If you love writing and want to start a side gig as a professional writer, you can do that easily by working from your home computer. Websites such as Ebyline and oDesk hire people to write articles for a variety of news publications and websites. The site oDesk in particular hires contractors, not just in writing but also in web development, software development, networking and information systems, administrative support, and other fields.
To get started, all you'll need is a simple word processing program on your computer. If you want to print out hard copies of writing contracts, make sure you have a supply of paper and a printer. To help market yourself and grow your business, get a supply of business cards listing the fields of writing in which you specialize. If there's enough space on your card, be sure to list your credentials as well as any reputable and relevant organizations that you belong to, as this will help build your credibility. For example, the American Society of Journalists and Authors is an organization for professional writers in which you can meet other freelance writers with varying levels of experience.
It is also important to seek out organizations that not only will help you build your business but also provide support and a sense of camaraderie. One appealing feature of writing as a part-time job is that you can explore various fields of interest. Whatever you do, make sure you have a website that has your story and any relevant work experience. You can build an online CV for free through Posterous.com or Wordpress. Alternatively, you can market yourself as a writer without spending money by writing your own blog about topics that interest you.
Buy a Franchise
You can also start your own business by buying a franchise. Many of the franchises that are "work from home" types require an initial capital investment of $1,000 because of the low overheard costs. These franchises include home sitting services such as maintaining a home is secure while the owners are away, giving the home an occupied/live-in look, caring for pets, clearing the mailbox of mail and newspapers, providing plant care, and checking the furnace. Other franchises with low startup costs include cleaning services which provide professional cleaning for homes, government buildings and commercial buildings. If your skill is in technology, specifically with computers, you can possibly look into doing repairs and data recovery.
Become a Consultant
If you know a lot of facts about a certain field like taxes, accounting, business start-ups, art collections, history or any topic you can think of then you could possibly become a consultant. The key is to make the knowledge that you have gained so marketable that someone will be willing to pay for your advice. For example, if your field of interest is accounting, an accounting consultant can help businesses with all their financial needs. A writing consultant can help businesses and individuals with reports, memos or even book writing. A computer consultant can help with software, hardware, programming or troubleshooting.
The list of consultant options is almost unlimited. There are consultants in career counseling, auditing, marketing, advertising and fashion. However, you have to like networking. As with any other business endeavor, you'll have to build a network of people to seek advice from in addition to building a client base. The startup costs for this business are also relatively low because you will start out as a one-person business where you handle everything while working from a home office. Check with your state to find out if you need a special license or certification in order to operate as a consultant. As part of your research, look into the many professional organizations for consultants.
Daily Money Manager
Are you good with paying bills and organizing financial paperwork such as medical bills and insurance claims? The American Association of Daily Money Managers provides certification for individuals pursuing a career in money management. People with backgrounds in accounting and finance are good candidates, and if you like to help the public get its finances in order by navigating bills, setting up budgets and keeping records, then this could be a profitable side business for you.
The Bottom Line
If you are interested in having your own business, then there are many outlets through which you can accomplish this. The key is to do thorough research in order to find a small business idea that you are passionate about.
by Linda McMaken,
Did you ever dream about having your own business but stopped short because you didn't believe that you had enough funds to succeed on your own? Well, you may be pleased to learn that there are a number of businesses that you can start for under $1,000.
Freelancing
One way to start a small business is by working as a freelancer, doing side gigs on whatever interests you. You will have low overhead, insurance and medical costs, especially if you are keeping a part-time or full-time job. If you love writing and want to start a side gig as a professional writer, you can do that easily by working from your home computer. Websites such as Ebyline and oDesk hire people to write articles for a variety of news publications and websites. The site oDesk in particular hires contractors, not just in writing but also in web development, software development, networking and information systems, administrative support, and other fields.
To get started, all you'll need is a simple word processing program on your computer. If you want to print out hard copies of writing contracts, make sure you have a supply of paper and a printer. To help market yourself and grow your business, get a supply of business cards listing the fields of writing in which you specialize. If there's enough space on your card, be sure to list your credentials as well as any reputable and relevant organizations that you belong to, as this will help build your credibility. For example, the American Society of Journalists and Authors is an organization for professional writers in which you can meet other freelance writers with varying levels of experience.
It is also important to seek out organizations that not only will help you build your business but also provide support and a sense of camaraderie. One appealing feature of writing as a part-time job is that you can explore various fields of interest. Whatever you do, make sure you have a website that has your story and any relevant work experience. You can build an online CV for free through Posterous.com or Wordpress. Alternatively, you can market yourself as a writer without spending money by writing your own blog about topics that interest you.
Buy a Franchise
You can also start your own business by buying a franchise. Many of the franchises that are "work from home" types require an initial capital investment of $1,000 because of the low overheard costs. These franchises include home sitting services such as maintaining a home is secure while the owners are away, giving the home an occupied/live-in look, caring for pets, clearing the mailbox of mail and newspapers, providing plant care, and checking the furnace. Other franchises with low startup costs include cleaning services which provide professional cleaning for homes, government buildings and commercial buildings. If your skill is in technology, specifically with computers, you can possibly look into doing repairs and data recovery.
Become a Consultant
If you know a lot of facts about a certain field like taxes, accounting, business start-ups, art collections, history or any topic you can think of then you could possibly become a consultant. The key is to make the knowledge that you have gained so marketable that someone will be willing to pay for your advice. For example, if your field of interest is accounting, an accounting consultant can help businesses with all their financial needs. A writing consultant can help businesses and individuals with reports, memos or even book writing. A computer consultant can help with software, hardware, programming or troubleshooting.
The list of consultant options is almost unlimited. There are consultants in career counseling, auditing, marketing, advertising and fashion. However, you have to like networking. As with any other business endeavor, you'll have to build a network of people to seek advice from in addition to building a client base. The startup costs for this business are also relatively low because you will start out as a one-person business where you handle everything while working from a home office. Check with your state to find out if you need a special license or certification in order to operate as a consultant. As part of your research, look into the many professional organizations for consultants.
Daily Money Manager
Are you good with paying bills and organizing financial paperwork such as medical bills and insurance claims? The American Association of Daily Money Managers provides certification for individuals pursuing a career in money management. People with backgrounds in accounting and finance are good candidates, and if you like to help the public get its finances in order by navigating bills, setting up budgets and keeping records, then this could be a profitable side business for you.
The Bottom Line
If you are interested in having your own business, then there are many outlets through which you can accomplish this. The key is to do thorough research in order to find a small business idea that you are passionate about.
by Linda McMaken,
27.10.12
Money for Starting a Business
Money for Starting a Business
High Investment Businesses and Low Investment Businesses
Getting money for starting a business, especially in these difficult economic times, is tough but need not be impossible. The process of finding money for starting a business, or financing a business, will serve to make sure that your business idea is a good one. If you can get financing that means that somebody has confidence that you will succeed and is betting money that you will.
Generally, the higher cost your business startup, the faster you should see a return on your investment. Take into account interest expense when calculating your return.
There are also low cost businesses with a great deal of potential. The person who can start his own business with very little money and perhaps no outside financing will usually invest "sweat equity" into the business instead of financial equity. This means that a low cost business may take longer to produce results. In the long run, however, if it has enough potential, it may be the right business for those that have few financial assets.
How to Get Money for Starting a Business--Start with Your Money FirstGetting money for starting a business is one of the thorniest parts of starting a business. The first key is to save money so that you can put your own personal savings into the business. Nobody is going to want to invest in your business if you do not invest in your business yourself.
It is difficult enough to get a loan with a business startup and next to impossible if you don't invest in your own business. Lenders want a track record and you may have none. Live frugally and save money so you can show potential lenders that you are committed to your business.
Lenders cannot help poor people. But they can certainly help rich people that don't have any money yet. Start this section by looking at a short video which explains how the rich get to be that way and the importance of investing in yourself.
The Importance of the Business PlanBefore you look to outside sources for money for starting a business, make sure you have completed the entire business plan. The business plan template is your road map. It will tell you how much money you need, when you will need it, and when you expect to pay it back. Potential lenders will want that information and you should want it also. You should always prepare a business plan before asking anybody for money. The business plan outline I have prepared for you provides you with several free financial calculators including a Starting Costs Calculator, a Cash Flow Projection, and a Break-Even Analysis.
Understanding the Language of Business Financing
High Investment Businesses and Low Investment Businesses
Getting money for starting a business, especially in these difficult economic times, is tough but need not be impossible. The process of finding money for starting a business, or financing a business, will serve to make sure that your business idea is a good one. If you can get financing that means that somebody has confidence that you will succeed and is betting money that you will.
Generally, the higher cost your business startup, the faster you should see a return on your investment. Take into account interest expense when calculating your return.
There are also low cost businesses with a great deal of potential. The person who can start his own business with very little money and perhaps no outside financing will usually invest "sweat equity" into the business instead of financial equity. This means that a low cost business may take longer to produce results. In the long run, however, if it has enough potential, it may be the right business for those that have few financial assets.
How to Get Money for Starting a Business--Start with Your Money FirstGetting money for starting a business is one of the thorniest parts of starting a business. The first key is to save money so that you can put your own personal savings into the business. Nobody is going to want to invest in your business if you do not invest in your business yourself.
It is difficult enough to get a loan with a business startup and next to impossible if you don't invest in your own business. Lenders want a track record and you may have none. Live frugally and save money so you can show potential lenders that you are committed to your business.
Lenders cannot help poor people. But they can certainly help rich people that don't have any money yet. Start this section by looking at a short video which explains how the rich get to be that way and the importance of investing in yourself.
The Importance of the Business PlanBefore you look to outside sources for money for starting a business, make sure you have completed the entire business plan. The business plan template is your road map. It will tell you how much money you need, when you will need it, and when you expect to pay it back. Potential lenders will want that information and you should want it also. You should always prepare a business plan before asking anybody for money. The business plan outline I have prepared for you provides you with several free financial calculators including a Starting Costs Calculator, a Cash Flow Projection, and a Break-Even Analysis.
Understanding the Language of Business Financing
There are several business terms you should understand in order to make good decisions on getting money for starting a business:
A credit score is a numerical expression based on a statistical analysis of a person's credit files, to represent the creditworthiness of that person. A credit score is primarily based on credit report information, typically sourced from credit bureaus.
Lenders, such as banks and credit card companies, use credit scores to evaluate the potential risk posed by lending money to consumers and to mitigate losses due to bad debt. Lenders use credit scores to determine who qualifies for a loan, at what interest rate, and what credit limits. The use of credit or identity scoring prior to authorizing access or granting credit is an implementation of a trusted system.
Click on the banner at the right to find out your credit score.
A secured loan is a loan in which the borrower pledges some asset (e.g. a car or property) as collateral for the loan, which then becomes a secured debt owed to the creditor who gives the loan. The debt is thus secured against the collateral. In the event that the borrower defaults the creditor takes possession of the asset used as collateral and may sell it to satisfy the debt by regaining the amount originally lent to the borrower.
Unsecured loans are monetary loans that are not secured against the borrower's assets.
Collateral means a security or guarantee (usually an asset) pledged for the repayment of a loan if one cannot procure enough funds to repay. The amount of collateral determines how much lenders will lend.
Personal guarantee is a promise made by an entrepreneur to repay the company debts in the event of default by the business. If the business doesn't have enough assets to pay the debts, the owner has to pay out of his personal assets. A personal guarantee tells the bank that the business owner is serious about his business and about repaying his debts. When the owner is unable to cover the debts personally, the bank will start to seize personal assets. In a startup situation it is virtually impossible to borrow money from a bank and not give the bank a personal guarantee.
A credit score is a numerical expression based on a statistical analysis of a person's credit files, to represent the creditworthiness of that person. A credit score is primarily based on credit report information, typically sourced from credit bureaus.
Lenders, such as banks and credit card companies, use credit scores to evaluate the potential risk posed by lending money to consumers and to mitigate losses due to bad debt. Lenders use credit scores to determine who qualifies for a loan, at what interest rate, and what credit limits. The use of credit or identity scoring prior to authorizing access or granting credit is an implementation of a trusted system.
Click on the banner at the right to find out your credit score.
A secured loan is a loan in which the borrower pledges some asset (e.g. a car or property) as collateral for the loan, which then becomes a secured debt owed to the creditor who gives the loan. The debt is thus secured against the collateral. In the event that the borrower defaults the creditor takes possession of the asset used as collateral and may sell it to satisfy the debt by regaining the amount originally lent to the borrower.
Unsecured loans are monetary loans that are not secured against the borrower's assets.
Collateral means a security or guarantee (usually an asset) pledged for the repayment of a loan if one cannot procure enough funds to repay. The amount of collateral determines how much lenders will lend.
Personal guarantee is a promise made by an entrepreneur to repay the company debts in the event of default by the business. If the business doesn't have enough assets to pay the debts, the owner has to pay out of his personal assets. A personal guarantee tells the bank that the business owner is serious about his business and about repaying his debts. When the owner is unable to cover the debts personally, the bank will start to seize personal assets. In a startup situation it is virtually impossible to borrow money from a bank and not give the bank a personal guarantee.
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