Different Funds You Have To Build When Starting A Business Philippines

The Importance of Building Different Funds for Your Business

Having multiple funds, including the Different Funds You Have To Build When Starting A Business Philippines, can act as a safety net for your business. You can have a fund for those unexpected expenses, like fixing a broken computer or dealing with an unexpected legal issue. It can help you cover expenses and keep your business afloat during tough times. But it doesn’t stop there! You can also have a fund to invest in new opportunities and expand your business.

Think about it, with this fund you can hire new employees, launch new products, or even explore new markets. It’s like giving your business wings to fly but it does require some planning and dedication. Without further ado, let’s get to know some of these funds on the next page.

Different Funds You Have To Build When Starting A Business Philippines

When starting a business, here are some key funds you may need to build:

Startup Capital

The initial investment, also known as the startup capital, is the primary sum of money that is essential for kick-starting your business. This amount encompasses all the necessary expenses to establish your venture and ensures its smooth operation in the initial stages. Furthermore, the initial investment represents a critical foundation for any business, providing the necessary resources to set it on the path to success.
Operating Funds

These funds cover day-to-day operational expenses such as rent, utilities, salaries, and other overhead costs that are coming every month regardless of no income from the business. Ensure you have enough to sustain operations until the business becomes profitable.
Marketing and Advertising Budget

Allocate funds for promoting your business and acquiring customers. To reach your target audience effectively, a diverse range of marketing strategies can be employed. One is online marketing where the majority of people spend a significant amount of their time through platforms like Facebook and Instagram. Also, offline marketing can still be highly effective in reaching specific demographics and areas where your target audience may reside. This may include print advertising, direct mail campaigns, television or radio advertisements, and billboards.
Emergency & Contingency Fund

This fund provides a financial safety net and helps your business weather unforeseen challenges. Also, it provides flexibility in adapting to changes in the market or industry. Lastly, this fund will show that your business is ready for anything in the long run.
Legal and Compliance Fund

Budget for legal fees, permits, licenses, and compliance-related expenses. This fund helps you navigate legal requirements and avoid potential issues. Also, this fund instills confidence in your clients or customers. They will see that you prioritize operating within the legal framework and are committed to upholding the standards of integrity and professionalism.

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How to build funds for your business in the Philippines

Crowdfunding

Crowdfunding is basically when a crowd ( or a considerable number of individuals) will fund a business or a project. If you decide to take on this route, you will need a killer idea, a compelling story, and a campaign page. You’ll want to make it clear why your project is so awesome and why people should throw their hard-earned cash to fund your idea. And don’t forget the perks! Offering some sweet rewards to your backers can make them feel like they’re part of something special.
There are plenty of crowdfunding platforms applicable to the Philippines market like GoGetFunding and SeedIn, for example. Each one has its own set of rules and fees, so make sure you do your research and choose the one that’s right for you. Share your campaign on social media, email your friends and family, and shout it from the rooftops.
Small Business Loans

If you’re not into crowdfunding, taking out a business loan may be the easiest and most viable option to raise funds. Nowadays, loans are more affordable with flexible payment terms – no wonder why a lot of small businesses have gradually upscaled to the successful ones they are today.
When choosing a lending company, opt for reputable companies that have been in the industry for decades like Radiowealth Finance Company (RFC).

Keep in mind that before you decide to take out a loan, it’s important to have a solid business plan in place before applying for funding. Lenders want to make sure you have a clear vision for your business and a plan for success. So take the time to put together a cohesive and well-thought-out plan as it’ll increase your chances of getting approved for that loan.

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There you go! The different funds you need to build when starting your business and a few financing options such as taking out a business loan with RFC. RFC (www.rfc.com.ph) has a wide range of loans with low interest rates and easy payment terms. If you’re all set for a loan and you want to kickstart your awesome business idea, click on the link below!

I am ready to apply for a loan with RFC!