Be your own boss!

(published in the SME section of the Philippine Star, May 20, 2011)


Most people are familiar with the daily grind. Wake up early, deal with traffic and pollution, get to the office or workplace, work hard, get home late, repeat. It’s a rigid schedule that most Filipinos are accustomed to. After all, it’s just like going to school, sans the frequent holidays and summer breaks, and instead of grades, you get a salary. It’s a way of life that a lot of Filipinos have adopted all their lives. But the daily grind and the mundane repetition of the things we do can sometimes get boring and unfulfilling. This is the point when employees think of aiming for higher positions, or look for other opportunities in other companies or industries, or maybe study further. If you’re looking for something bigger and better at your own time though, you have to look past the lofty offices of the central business district: opening your own business.

Business class
Opening a business takes a lot of guts, but can also be very rewarding. For one, as the owner, you get to earn income, rather than a fixed salary. Your performance as the owner is directly related to how much you earn, meaning you don’t only get the satisfaction of a job well-done, but a nice monetary bonus as well. You also get to set your own rules. You get to make the key decisions which determine whether the venture will be successful or not, unlike when you’re the employee and simply follow orders. But probably the best advantage of owning a business is being able to take control of your time. Being your own boss means you are not expected to come to work or go home at fixed hours. You can come and go as you please, provided, you’ve taken care of all business matters.

Small or medium enterprises or SMEs don’t only open up the opportunity to earn more for yourself, but also helps the country’s economy. According to an article on the Organisation for Economic Co-operation and Development (OECD) website, SMEs account for 99.6% of all registered businesses in the Philippines, and employ 70% of the workforce. So instead of taking jobs by being employed, business owners actually get to generate more jobs. You also contribute to the country’s national income through taxation.

Assessment of risk
There’s a big tradeoff to all these advantages though. A lot of things can go wrong in business, and you might end up losing money instead of earning it. One of the largest hurdles in setting up shop is the capital requirement. Before you can start operation, you have to invest money to cover for the company’s expenses: rent for the space you are going to use, utilities such as electricity and water, equipment, inventories, licenses and permits, and the list goes on. If it becomes profitable, then you’ll be able to earn back your initial investment and even make it grow. If it doesn’t, then you better be ready to say goodbye to your hard-earned cash. This is in stark contrast to being employed where your only investments are time and effort. Another barrier that prevents Filipinos from investing is the requirement of management and leadership skills. Business owners have to make key decisions that can make or break the business and its stakeholders.

Grab the opportunity
Think you can give up the regularity of a 9-to-5 job for the volatile world of business? Then you better brush up. Before opening any business, you have to get to know how it works first. If you have any friends in the same or a similar industry, ask them to show you the ropes first. If you were employed for a long time and you leave in good terms, maybe you can even ask your employer to guide you. What’s important is that you get insights into the business world, specifically the industry which you want to enter, before shelling out your life savings. And while we’re on the subject, make sure that you are fully committed to the type of business you want to enter. Not only do you need to know a lot about the subject, you must also learn to love it, whether it be food, beautification, paper manufacturing, ad infinitum. You have to be passionate about your chosen field, otherwise you might just end up regretting your decision and end up in a dismal financial position. Speaking of finances, learn a little bit of accounting, too. It is integral for entrepreneurs to monitor where money is coming from and going to, and whether you make sound financial decisions. Besides keeping a close tab on your finances, keep an eye out for opportunities and threats around the business as well. This includes chances for expansion, new methods of manufacturing, paying attention to what competitors are doing, and so on.

Of course, business is not all about money. What’s more important in running a business is making and maintaining close relationships with other people, whether they be your employees, customers, suppliers, or even competitors. They will help you a lot along the way, and will continue to help you only if you are in good terms with them. Always show appreciation to each of them; if you become successful, it’s most probably because you have good people around you.

There’s absolutely nothing wrong with a steady-paying job, but if you have the skills and resources to make it big in business, then you better make the most of it. Who knows, maybe in the near future, you’ll find your name in that coveted Forbes list. What is most important though is finding happiness in what we do, whether it be for a large company, or a small local grocery in your neighborhood. No matter how much you earn, if you’re happy with what you do, then congratulations: you have succeeded in life.