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Are you one of those people who is thinking of quitting your corporate job and planning on starting up your own business but is a little hesitant to begin? Don’t worry, you are not alone in this predicament.
It is true that starting your own business is a scary thing for it entails a lot of planning - from the nature of the business to the workspace to office furniture. A lot of people have already started on their own business journey, but are you ready to take on this challenge?
If you are looking for information and tips as to how you can have a successful business here in the Philippines, then these are some of the things that you should keep in mind.
What is a startup?
A startup is basically founded by an individual to search for a repeatable and scalable business model that they can do on their own. In addition, a startup business or company is also categorized as a newly emerged business venture in order to develop a viable business model to solve a marketplace problem or need.
However, it is not enough that you meet the problem or need of the marketplace. Instead, there are three (3) important factors that a startup should satisfy, which are as follows:
A potential scale
Use non-traditional business models and emerging technology
Has the intention to solve a social problem
With this in mind, it is safe to say that building and starting a startup company is no easy feat as there are a number of things that you should consider first before commencing one.
What are the things you need to know about the startup scene in the Philippines?
It is no great secret that building a startup company is indeed an exciting venture that one can do that, in return, will give them good and quality long-term results - if done and planned properly. With this being said, here are some of the things that you should know about the startup scene if you are planning to enter it real soon:
1. Startup founders are usually serial entrepreneurs
One of the most common misconceptions about startup companies is that they are owned and founded by beginners. However, that is not the case. In fact, most of the startup companies and businesses here in the Philippines are usually owned by industry veterans who already have more than two (2) businesses in the industry. This is why startup founders are usually coined as “serial entrepreneurs” or individuals who start a company and swiftly move on to another venture.
2. Capital is the main challenge when building a startup
Although most startup founders are labeled as people who are serial entrepreneurs, one of the challenges that they are still encountering when starting a business is the capital requirement. In addition to capital requirements, they are also having a hard time in looking for partners and investors that will not only help them with the capital, but, will also aid them in improving the startup's operations.
Moreover, other challenges in building a startup company are regulatory requirements and general economic and business conditions.
3. Most investors are interested in Southeast Asian market
This is an obvious truth about startup companies and businesses, most especially in the Philippines and other Southeast Asian countries. This is mainly because more and more foreign investors see great potential in the Southeast Asia business scene and that they believe and trust that it has the possibility to grow, not only in this region but also in other countries.
4. Startup companies want tax incentives
Another thing that you should know about the startup business scene here in the Philippines is that they are very much interested in receiving tax incentives as they believe that it is a crucial factor for their business to grow immensely.
For this reason, their main goal is for them to be given tax incentives as the tax incentives that are available in the Philippines are only compatible with brick-and-mortar stores, not with startup companies.
5. Most business moguls just need $1 million or less but don’t like the idea of borrowing from banks
It is indeed true that starting a startup business does not need too much capital or money to begin a business venture here in the Philippines. As a matter of fact, most business people only aims to raise less than $1 million to fund their business in three to five years.
With this being said, numerous business people are planning to raise funds by means of equity - which greatly involves bringing in investors and partners to their startup business venture. On the other hand, only a few people are planning to secure loans from banks and the remaining individuals are planning to personally finance their growth with their own capital.
What are the ever-growing challenges of Philippine startup challenges1. The Filipino mentality
One of the common challenges that most startups encounter is the fact that most employees don’t stay long in the business industry as soon as the nature of their business is not as popular anymore. It is like they are only staying for the sake of being part of the hype of startups.
In order to avoid this kind of situation, it is very important that you have the drive, the focus, and the willingness to learn something new every day to continue the business - even after the hype is already gone. By doing this, you are ensured that you will be successful in the long run as you did not give up on your business and you are still looking for ways on how to enhance your business for the marketplace.
2. Not wholly placing their skin in the game
Another challenge that is obviously seen in the Philippines’ business marketplace is the lack of responsibility and accountability. Sadly, these are some of the factors that will determine if a business will succeed and survive for a long time - but it is not practiced by most Filipino entrepreneurs.
With this being said, it is important that you will be able to stick to your business from the beginning until the end. If you are able to do this, then the chances are high that your startup business will flourish abundantly and will continuously succeed in the long run.
If you are interested in starting up your very own business in the near future, then these tips and information will definitely help you in succeeding in your business venture. With the resources that are available in the market these days, you are assured that you will not have a hard time starting and attaining that you are aiming for.