Starting Your Own Small Business

by Gema Viaña

Owning a small business is way to help supplement the family income and even in a small way add to the growth of the national economy.  However, not all small businesses become successful plan carefully to avoid wasting valuable resources.

Here are some guidelines to help future business owners make sound decisions as they take their first steps to build their own businesses.

1. Decide on the Type of Business.  Study the products and services that are in demand or might prove profitable in the future. The internet, TV and print media are rich sources of inspiration. Small business ideas might include a cellphone loading station, internet café, sarisari store, tutorial center. It is possible to convert your hobbies, interests and talents into a business that will meet the needs of the market or to introduce something new that people would patronize.

2.  Determine Your Source and Amount of Your Capital.  This will vary depending on the kind of business and the type of ownership. Some businesses have one owner and one source of capital; others may be a partnership or a corporation.

3.  Enlist your Personnel.  Some businesses will need additional personnel. Family members may lend a hand but some businesses might need to hire additional manpower.

4.  Choose a Location.  It can be a home based business or something that needs a separate space. The main thing to consider is to select an area that will provide efficiency, minimize the cost of operations and provide proximity to target customers.

5. Secure Government Permits. Depending on the small business that you have chosen, you might need to secure government licenses such as Mayor’s permit or DTI registration. Make sure that you have taken care of these to avoid possible headaches in the future.

6.  Advertise.  Let people know about the product or service that is being offered. It may be through flyers, posters, word of mouth or through social media.

5. Track Finances.  It can be as simple as recording all your expenses and income in a notebook or using an accounting software. The main thing is to be aware of the flow of the finances. Make sure that provision for debt payment, taxes, and social security contributions for employees are also factored in the planning of business expenses. It is very helpful to set up a bank account for the business, too.