Starting a business? Here are five things you should know!

1. Condition your mind

One important aspect in starting a business is getting your mindset ready. Business is not an
easy path to take and you will surely encounter a lot of challenges along the way. Having a clear
vision and a purpose is what will push you when setbacks come along. Here are some steps to
condition your mind into business:

• Know your purpose -Why are you entering this type of business? Realizing the reason
  for your venture will keep you motivated especially when you’re facing dilemmas.
• Create a vision board – List down the SMART goals that you want to achieve in three,
  six, or 12 months in business. This will help you keep track of your plans and assess areas
  that can be improved.
• Study business – Read books and blogs or watch videos that can give you sufficient
  knowledge on how to handle business in general or how to handle the type of business
  you want to pursue. You can also consume leadership and managerial books as handling
  a business requires those skills.

2. Research your market

Now that you have conditioned your mind, it’s time for you to validate your business idea and go
through the specific areas of the business you want to pursue. In studying your market, it’s
important to note the following:

• Customers -Listen to what your customers say. They usually provide good input on what
  can be improved on your products or services and, of course, what will make them
  patronize your brand.
• Value Proposition -What value are you providing to your consumers? Is it convenience?
  Trust? Passion? Fun? Remember, value proposition is what attracts customers.
• Weaknesses and strengths of the current market offerings – You can leverage on the
  weakness of the current market by providing an innovative solution.
• Market Demand – Is the type of business that you want in-demand in your community?
  Have a demographic assessment of your market to know if your business will be viable.

3. Plan your finances

You may have a brilliant business idea but without a good working capital, it won’t work. Because
business is basically about making profits, you should have a sound financial plan. Where will
you get the capital? Are your savings enough to cover all your expenses? Is it smart to get a loan?
Here are some things you should know:

• Capital – This is the money you will use to fund your day-to-day operations and
  to buy assets. You should categorize your expenses into two:
  • One-time costs – The expenses incurred on the initial stage of business
    (business registration, licensing, branding, etc.)
  • Ongoing costs – Long-time expenses such as rent, utilities, salaries, and
    the like
• Loan options -Having debts when starting your own business isn’t bad. Securing
  your business financially is a good start. When you think that your own money will
  not cover the costs of your business, there are financial companies that can offer
  you flexible loan deals. Keep in mind having a steady cash flow is important in
  business.

4. Hire your team

Hiring the right people will make business easier for you. Sometimes, employees are one of the
reasons why customers come back. They are also an asset in your business, and it is important
that you build a harmonious relationship with them and value their work. Meanwhile, if you
decided to single-handedly run your small business, it’s still wise to ask for help from trusted
relatives and friends and take advice from experienced people or mentors.

5. Build your brand image

Branding is an important aspect of business that many set aside. Your brand image has a large
impact on how customers perceive your products or services. Here are some things you need to
work on when creating your brand manual:

• Brand name – Pick a name that can be easily recalled. It is advisable to have a one-word
  brand name that is related to what you are offering.
• Logo – You can incorporate the brand’s vision when creating your logo. It’s best to consult
  a graphic designer so you can be assured your logo will be visually pleasing.
• Brand color and font – These things are also important as your brand will be easily
  remembered through it. The aesthetic qualities of your brand is also helpful in establishing
  your brand reputation.
• Social media presence – Your brand will definitely get a broader reach if you utilize social
  media channels and create engaging posts and updates.

6. Register your business

Make your business official by accomplishing all necessary permits and documents. More than
anything else, abiding by the law is important as it guarantees your credibility as a business
owner. Here are the list of government units where permits and necessary documents should be
filed:

• DTI Business permit
• Barangay clearance
• Mayor’s permit/Business permit
• BIR documents, Tax Identification Number, Official Receipts
• SSS, PhilHealth, and Pag-IBIG registration – for employees
• Other permits – such as FDA and sanitary permits for food processing

Being your own boss comes with a huge responsibility, and we understand that sometimes cash
flow can be a little tight. We also know that, in order to grow, you need to increase inventory or
beef up your capital. RFC supports the Filipino entrepreneur by offering flexible business loans.

We help your business dreams take flight.