by Nicasio Angelo Agustin
The New Year may offer some of us a new perspective on how we should handle our affairs. It is not unusual for many to start the year with fresh ideas and insights on how to come to grips with such terms as “prosperous”…“bountiful”…“abundant” or “blessed” which we normally use in New Year’s greetings to others. After all, the New Year offers opportunities to improve our lives and enhance our potentials, and to maximize the prospects presented before us.
Going into business has always been the dream of many. For an ordinary employee, a business undertaking or negosyo – big or small – is seen as a more productive endeavor, better than spending so much money and time in traveling to and from the work place but earning a pittance at the end of the day. For many, if not most, OFWs going into business is their ultimate goal to bring to an end those long, lonely nights and days of forced (by circumstance) separation from their loved ones in search of the mighty dollar or pound or rial or euro, etcetera (instead of the lowly peso) order to improve one’s life. They hope that their extras or savings carefully kept and allowed to accumulate through the many years of hard work abroad would someday be enough to start a business of their own and be their own bosses.
To start a business is absolutely connected to some rewards – numerous and immeasurable rewards – but it requires your personal commitment and sacrifice. Foremost, you must possess that belief and dedication to make things happen regardless of foreseen barriers, constraints and difficulties. That mindset alone gives you immense opportunities to succeed. Take those baby steps with courage no matter how difficult they may seem at first for they will eventually lead you to those giant steps towards greatness.
Business and management books present some guides in starting a business. Let alone those technicalities and complexities in the books, I’ve tried to simplify some thoughts which might be helpful to the new and aspiring entrepreneurs.
The first thing – a very good business plan. Regardless of the magnitude of your investment and the sophistication of the business you have in mind, the business plan should be written and documented, but not necessarily in the highest standard of writing format and style. The important thing is that you see and appreciate the tasks that you need to do and that you feel committed to pursue them. A business plan requires you to have two important things: (a) the business you want to go into; and (b) how to go into it.
In a sense, a good business plan should be able to help you or teach you how to determine the value of your products or services and provide you an idea on cost of production and service delivery (labor and other resource inputs), the size of the market and your possible share plus your specific consumer base, your competitors and possible market allies. The bottom line, the plan should be able to tell you the amount of funds needed to make things happen.
The second thing – mode of financing your business. There are three possible modes to finance your business, namely: bank loan, self-financing, and use of credit cards. A good forecast of your cash inflows and outflows would inform you of the most viable mode or a combination of the different modes of financing to adopt. An expert accountant can help you on this.
The third thing – a market survey. This is not to imply the very formal and technical market surveys or studies the academics are so enthusiastic to pursue. For some small and medium-size businesses, it is enough to have the feel of the market just like how the Chinese do it. Most Chinese businesspersons do not conduct formal market studies but they have a good business sense and a strong gut feel of their market environment. The bottom line: estimate, calculate and make a good prediction of your market share taking into account the vastness of the whole market, the strengths of your competitors, and the features and preferences of your intended clients.
The fourth and most important thing – records keeping. Business, regardless of its nature and size, requires you to keep two important records, namely: (a) books of accounts – daily sales and expenses, accounts payable and receivable, etc; and (b) a record of your customers. These records – most especially if they are done well – could help you in tracking your business success.
It is unusual to see businesses become successful and profitable at once. But if you are resolute to enjoy the enormous promises and benefits of starting and managing your own negosyo, you must keep your focus, be patient and consistently diligent. Then, you’ll have prosperous an abundant 2011 and the years ahead!
Feel free to send your comments to nic_agustin@yahoo.com.
