How to Start a Small Online Business in the Philippines 2023 : Infononio

Top 13 Steps to Starting a Small Online Business in the Philippines (Plus Tips for Success) Many of the business behemoths that produce the ...

Top 13 Steps to Starting a Small Online Business in the Philippines (Plus Tips for Success)

Many of the business behemoths that produce the goods or services you use today had humble beginnings. In a garage, Apple and Google got their start. Before becoming a food juggernaut that purchased well-known brands like The Coffee Bean and Tea Leaf, Mang Inasal, and Burger King, Jollibee was a modest ice cream shop. Before becoming a global food franchise brand, Potato Corner operated as a food cart business.

Their success stories are certainly inspiring, but the founders took the time to carefully plan everything, keep an eye on trends, and take chances before they achieved the magnificent prosperity they are currently basking in. They demonstrated that tremendous achievements cannot be hastened. So, you might want to check out this guide if you want to launch a business that has the potential to become the next big thing in the nation (or the globe!).

Do you hope to succeed in business someday? Start by following these instructions and advice on how to launch a small business in the Philippines.

Top 13 Steps to Starting a Small online Business in the Philippines 2023 

1. Create a New Market or Benchmark
2. Validate Your Small Online Business Idea
3. Plan Your Online Business Finances
4.  Decide on Your Online Business Structure
5. Choose the Right Business Location
6. Consult a Great Business Lawyer and a Tax Specialist
7. Choose the Best Name for Your Small Online Business
8. Build Your Brand Name Identity
9. Apply for Licenses and Permits
10. Pick the Right HardworkPeople
11. Create Your Prototype
12. Choose the Right Suppliers and Partners
13. Take the Best Advantage of Social Media and Free Website Builders

1. Create a New Market or Benchmark

Be creative! Regarding the type of business you wish to start, you have two options.

Offer something that isn't presently available on the market first. What can you do to distinguish your company? Find an original product or service that can meet the needs of or offer a solution for your target clients by using your creativity.

Benchmark profitable companies next. Study what they are doing well and develop something better.

If you want to add government agencies to your clientele, you can also apply through PhilGEPS. By enlarging your network, enables your business to grow.

2. Validate Your Small Online Business Idea

You can have an idea that you think will be a tremendous success. But is there actually a chance that your small business idea will be successful?

Before beginning a small firm, carry out market research. Find out if people need and are willing to pay for the product or service you're thinking about selling. Additionally, find out if nearby firms are providing the same goods or services as you are, as well as how fierce the competition is.

3. Plan Your Online Business Finances

Be aware that some funds will be needed when deciding how to launch a small business in the Philippines. You need money to purchase the necessary hardware, tools, materials, and supplies as well as to pay for recurring expenses for six to twelve months before you turn a profit.

Start by compiling a list of all the startup costs for your business. Divide them into two groups:

• One-time startup expenses: market analysis, branding, permissions and licenses, initial stock, grand opening celebration, etc.
• Ongoing expenses: include taxes, rent, marketing, and employee wages.

It's also critical to have extra cash on hand. Aside from your original money, you must set aside additional finances when starting a firm to ensure its survival. It will take time for people to learn about your product. It's typical to experience some loss when you first start out. How will you maintain your business if you don't have a reserve of money?

Do you need to raise extra money to launch your business? Consider requesting a personal loan.

Through Moneymax, you can quickly and easily compare your options for the best loan in the Philippines. 

4. Decide on Your Online Business Structure

You should choose your company's structure early on for a variety of reasons. It will mostly have an impact on how your business will run. Your personal assets' exposure to risk will be determined by this. More importantly, it will help you determine the level of legal defense you require.

These two forms of ownership may be taken into account by small businesses:

• In a sole proprietorship, you have complete control over every aspect of the business. All of the assets are yours, but you will also be responsible for all losses.
• Partnership: This results from your decision to launch a business with others. The amount of each member's liability will either be limited or unlimited, depending on the agreement made by the partners or the amount contributed to the capital.

5. Choose the Right Business Location

Location, location, and location should always be considered when purchasing a home. Starting a small business in the Philippines operates on the same principles. You need to rent a location with a lot of foot traffic if you want to attract clients. It might be that one little kiosk at the mall, a store in the city, or a location close to the interstate.

But keep in mind that these places might grow very pricey. Make sure you have a substantial budget if you think about it. Don't forget that the cost of this will also be influenced by the store's facilities and floor space.

6. Consult a Great Business Lawyer and a Tax Specialist

Dealing with various legal issues may be necessary when starting a small business. This is why you should seek the advice of a company attorney whenever you can. One benefit of hiring a business attorney is that they will ensure that your interests are protected and that there are no gaps in the contracts you sign with suppliers and partners.

They may also offer guidance on picking the best form of business ownership or organization. They can even assist you in reviewing your lease for commercial and retail premises. However, a company attorney can also assist you in safeguarding your intellectual property.

A certified public accountant (CPA) will make sure that you stay up to date with the rules governing business taxation when it comes to finances. They will instruct you on the fundamentals of calculating and submitting your business taxes, taking advantage of tax deductions, and archiving tax-related paperwork more effectively.

7. Choose the Best Name for Your Small Online Business

Your company's name is the first step towards branding. Make sure to choose a name for your small business in the Philippines that not only accurately defines what you do, but will also be simple for customers to remember.

Once you've thought of at least three possible names for your company, check to see whether they have already been trademarked or if another company is using them. If not, register your company name with the Department of Trade and Industry (DTI) if you operate as a sole proprietorship.

8. Build Your Brand Name Identity

Affinity grows with familiarity. You need to make sure that your brand's identity connects with your target audience in addition to having a memorable company name.

Will you be a fun company like Jollibee or a fashionable and elegant icon like Sunglasses? You should pose questions to yourself like this.

However, the components that will aid in creating your brand identity are listed below.

1. Logo: Because it represents your company, it ought to be simple to recognize. It can be a logomark (like Apple's bitten apple emblem, Nike's swoosh, or Starbucks' two-tailed mermaid) or a logotype (like Coca-Cola, CNN, Disney, and Google).
2. Language: The words you use to convey your brand's tone, mood, and personality are highly revealing. Going fully English could indicate that your brand stands for anything aspirational or expensive. On the other hand, using taglish could indicate that your company has a laid-back vibe. The majority of the time, using only pure Tagalog and a few colloquialisms can demonstrate how grounded and in touch with the average person your brand is.
3. Colors: Consumers rely greatly on aesthetics. Colors are effective visual aids because they elicit strong sentiments and emotions and brand associations.
4. Typeface: The personality of your brand is also influenced by the typeface you choose. Serif fonts, like Garamond and Times New Roman, can convey a formal, regal, or high-end vibe for your company. Helvetica and Arial are two trustworthy options for companies with simple product offers (think IKEA). Sans serif fonts. On the other hand, rounded and curly fonts may indicate that your company is relaxed, carefree, and enjoyable.

Create a brand bible that your graphic designers may refer to while making your promotional materials once you have settled on the components of your brand identity. A brand bible makes sure that your branding aspects seem the same in all of your documents.

9. Apply for Licenses and Permits

Small business operators in the Philippines still need to obtain paperwork to show that their operations are legal. Before launching your business, you should follow this regulation to the letter to avoid subsequent legal issues.

You must obtain the permits after registering your firm with the DTI. The licenses required to launch a business in the Philippines are listed below. The municipal government where you intend to establish your firm should do this:

1. The barangay hall's approval of the barangay
2. Mayor's permit/business permit granted by the municipal or city hall documentation of BIR registration and tax identification number
3. Registration for SSS, PhilHealth, and Pag-IBIG as an employer and for new hires
4. For example, registration with the Food and Drug Administration for food enterprises and with the Bangko Sentral ng Pilipinas for pawnshops, remittance centers, and other financial institutions, are special permits based on the nature of your firm.

10. Pick the Right HardworkPeople

You need a group of employees who are motivated to expand your company who are talented, reliable, and diligent. They are your most valuable asset, thus you must also nurture and develop them. You can better service your consumers if you have the correct personnel.

Determine the roles that need to be filled and the essential abilities, qualifications, and obligations for each. These can help you pick the best candidates after conducting an applicant screening.

You still need people you can turn to for help even if you plan to manage your small business entirely without hiring anyone or using any contractors. These might be your loved ones, a dependable mentor, or another entrepreneur who can offer you support and inspiration as you navigate the highs and lows of running your firm.

11. Create Your Prototype

Your product or service is the lifeblood of your company, so you must ensure that it is the best available. To design the ideal product, you must first create prototypes.

If you run a restaurant, this entails experimenting with different recipes and ingredients to produce a distinctive meal. If you create shoes, it involves coming up with a variety of styles that combine form and function.

Making a prototype allows you to identify which product features want improvement. Prior to mass production or launch, you must ensure that the good or service is faultless. You'll lose money if you don't do this because of product recalls and customer complaints.

12. Choose the Right Suppliers and Partners

Your goods or services are made up of several parts or operations, the majority of which are often purchased from outside vendors. Always choose a partner or vendor who is aware of the nature of your company. With the correct supplier, you can save production costs and ensure that you can deliver your goods on schedule.

13. Take the Best Advantage of Social Media and Free Website Builders

Utilize social media and free website builders like Wix and Shopify to advertise your small business and reduce your marketing expenses.

If you're beginning an online business in the Philippines, this stage is very crucial. You must be present where your potential customers are. You must increase your presence on that social networking site if they frequently use it.

The next big thing is to become a social media whiz if you can't afford your own website. You can get a variety of social media marketing advice to aid in promoting your company. Sometimes going viral doesn't even require spending any money.

Top Best 5 Tips for How to Start a Small Online Business in the Philippines 2023 

1. Be Resilient
2. Have a Contingency Plan
3. Be Data-Driven When Making Decisions
4. Learn to Delegate
5. Be Ready to Make Sacrifices

1. Be Resilient

Expect a few hiccups along the way as a young entrepreneur attempting to move your business ahead. There will always be obstacles to overcome. However, you shouldn't let these deter you.

Instead, develop the resilience necessary to bounce back after any difficulty you face. COVID-19 is a concrete illustration of this. Although the majority of enterprises, both large and small, were severely damaged by the epidemic, this does not indicate that no one should now attempt to launch a firm. There are many pandemic-resistant companies to pick from.

The difference between outstanding companies and poor ones is their capacity to endure any kind of setback. Start a company that will undoubtedly withstand the ravages of time, fate, and nature.

2. Have a Best Contingency Plan

Resilience is often just an option if you're ready for bad days and unforeseen issues. A contingency plan will make it more likely that your company will survive any unforeseen catastrophes in the future.

The following should be included in your plan:

1. Insurance: This is to cover costs in the event of natural disasters and consumer complaints as well as to make up for any losses.
2. Data backup: Data is an essential component of your business. Therefore, make sure that everything is regularly backed up (through the cloud or a different hard drive), including client information, financial information, and even social media analytics reports. Business continuity is made more than difficult by data loss.
3. Income backup: The pandemic has taught businesses the importance of having a backup stream of income available just in case.
4. Comprehensive exit strategy: The mechanism in your contract should be precise and error-free in the event that you and your partners decide to dissolve the company. You can all stay clear of misunderstandings and disagreements by doing this.

3. Be Data-Driven When Best Making Decisions

The availability of numerous forms of data that will aid you in decision-making is one of the best things about beginning a business in this digital age. On client patterns and behavior, which eventually influence your business operations, you can create precise predictions. Data also aids in streamlining your business procedures, allowing you to save time and money by reducing resource waste.

Data is always accurate, but don't let it absorb you to the point of analysis paralysis. An profusion of data can occasionally make it difficult to make important decisions.

4. Learn to Best Delegate

Not all of the work should be done by you. Your valuable time would be wasted if you did that!

By imparting some of your knowledge to others, you can multiply yourself. You'll have more time to work on more crucial tasks for the company.

You may, for instance, educate someone accounting procedures so that you can concentrate on increasing sales. Make sure you only share your knowledge with those you can trust.

5. Be Ready to Make Sacrifices

You're going to miss Friday night hangouts with friends, quality time with your family, and normal sleep because you need to devote a significant amount of your time to expanding your business. You could possibly lose your entire life savings. This is related to striking a balance between your requirements and wants so that you can achieve your financial objectives.

Final Memories

Nowadays, a lot of Filipinos desire to launch their own small business. Many people, however, downplay the significance of business science. Instead, we just rely on our instincts. To make sure that your business will flourish, you must carefully research and forecast a variety of elements before attempting to solve the problem of how to launch a small business in the Philippines.

Related Post 

1. How to Start an Online Business in the Philippines 2023 - Infononio
2. Best Ways to Start an E-commerce Business in the Philippines 2023 : Infononio