Did you know that the Philippines has less entrepreneurs than any ASEAN countries? Well, based on surveys, the number one reason for this is because many Filipinos have money issues and are afraid of the pitfalls that might befall them.
It is quite sad.
Money issues are understandable and a very valid point to consider before going into business, but it should not stop you completely from being the entrepreneur that you always wanted to be. Sure, entrepreneurship is difficult, but it is not impossible, especially with the country being ripe with demand and being provided with little supply. You can take advantage of the blossoming Philippine market today but check out the most common money mistakes that budding entrepreneurs commit, so that you can avoid them, and become successful in your trade!
Where is the Target?
A target market and money strategy is probably the first thing you need to consider before going into a business venture.
After all, you can compare the business world to archery. You see, so let’s say that you invested in the most technologically upgraded and aesthetically beautiful bow with the sharpest arrow that could pierce armors, and you also have an Olympics-level skills, a bunch of supports in the audience, but if you look up at the distance, and there is no target, everything is for nothing.
Same with how you handle your target market and how you spend your money to sway them to your favor. A start-up entrepreneur often forget to have a laid-out plan regarding money allocation and the very first decision that you make would reflect to your business later on. Without a proper aim, you would be very lost.
Underestimating Financial Needs
There are times that the “how hard can it be” mentality works, but most often in the business world, this ends up in failure. When you are in the process of laying out your money allocation and distribution plans, you do not take into account all the possible economics problem that you might encounter such as fluctuation and do not forget about taxes. It also becomes worse because budding entrepreneurs create sales projections that could not be met in a given period of time, so you ended up committing your capital in a financial projection that are doomed to fail.
Do not underestimate the costs of a business start-up and it is possible to avoid this mentality by having a hands-on research about your idea before spending money on it. Better to be sure that it works before losing all your precious money.
Back-Up Plan? Emergency Funds? What?
Entrepreneurship is exciting and requires a lot of passion and flexibility, but that does not give you a go in being impulsive. Going into business is taking a leap of faith and facing all the risks, but imagine that you cannot swim, would you actually dive into the Pacific Ocean without a raft or a life jacket? Of course not, because you would certainly drown to your death.
That’s why you have to have a plan B and emergency funding in case things go awry. Do not spend all your savings in one go and an alternative route would be very appreciated in the long run.
“You Gotta Spend Money To Get Money”
All of this reminder for you not to spend money and now we are quoting you the old adage “You gotta spend money to get money?” The things is, entrepreneurship is all about balance, which is easy to say, but definitely hard to do. After all, you are expected to make decisions that brings so many risks, but you would be forced to trust your research, test runs, and of course, gut feeling.
Want an example?
If you are going into online business, then it would be expected for you to buy a domain for your website or a customized theme for your blog, because how can you stand out from the crowd if you are just joining the convention?
Putting No Marketing Efforts
No, you don’t need to hire a celebrity for your advertisements. Not immediately, anyway. However, if you are just waiting for a word of mouth and not helping people get to know your business brand, then it would only lead to slow growth and fast death.
Build up your business.
Make a name for yourself.
For a start-up entrepreneur, you would need to think outside the box, especially now that the social media is a very active platform that you could easily utilize if you know how to pique the netizens attentions.
Excessiveness is a No-No
When you are told to spend money, it does not mean that you would go all-out! Be mindful of your money allocation because excessive is definitely out of questions for a budding entrepreneur like you.
You have to consider that buying a huge office space is not really smart when you are only at the beginning of your business journey. Instead of spending money for the office space, expensive furniture, and lots of employees, direct your money for the improvement of your project or, save it as an emergency funding.
Hiring for Convenience
Employees are important. There form the body of your business, therefore, you have to choose who you hire. Look for their credentials, evaluate their attitude, and align your goals with their mindset, because if your employees have the same vision as you, then you can both work towards a goal faster and more efficiently.
It’s not good to micromanage! Employees are there to help you out and add to your business, micromanaging would not lead to productiveness, it would merely burn you out to the point of exhaustion.
And yes, it is convenient to hire a relative, because it is more convenient, but in the long run, you would realize that this is not always going to work. If you have a relative as an employee, it would be harder to admonish them for their mistakes, impossible to have privacy for yourself, and when things take a wrong turn, fighting is inevitable.
Sacrificing Quality for Money
Okay, so you meet your target market with your catchy advertisements, but then the crowd did not lasts more than a week and they are now flocking to your competitors. The reason? Your product and business are not providing high-quality, which results to you not getting your customer loyalty.
In addition, substandard materials do not last long, which means that you would have to replace it all again, in just a few months, making you waste a lot of money.
So invest your money in quality materials to ensure long-lasting use and loyal clients!