Pinoy Business Coach

Most OFWs who end their contracts from abroad are often faced with a dilemma on how to sustain personal income after years of labor in foreign lands.  There is a recent program administered by the OWWA (Overseas Workers Welfare Administration) in which returning OFWs who would want to start a small business may be able to get a loan (300T- 2 Million Pesos) with 7.5% interest rate per annum.  Based on the OWWA website, there is no other information if this is collateralized or non-collateralized.


My intent is to give a "thought process" to those OFWs who intend to start their own micro to small businesses.  Many of our kababayans who have worked abroad have no or minimal business training therefore the odds are really against them if they opt to start their own businesses.  Statistics show that 1 out of 10 start-up businesses fail in the first 3 years of life simply because they did not think the business through and did not plan it enough so as to muster the strength to grow.

Here are some suggestions for Overseas Filipino Workers to consider before plunging into a business:

1. Get trained in business-  when I say get training in business, I mean training in business.  Other people have a tendency to think that training means enrolling in a skills course in baking if one is entering into a bakeshop business.  By getting trained in business, I do not mean getting technical skills like carpentry, cooking, welding etc.,surely these can help but the skills in starting, running and building a business are simply a different set.  Business training depends on the kind of business that you are considering and includes but is not limited to Basic Accounting, Inventory Management, Cash flow  Management, Basic People Management, Systems creation, Basic Legal/Business frameworks, Tax Management and Product Management.  

According to Micheal Gerber (Author of the E-Myth), the false assumption is often the most fatal and that is the assumption that knowing that you have mastered the skill set to Cook automatically qualifies you to open a restaurant.

2.  Choose a business that you know really well-  you might want to get into a business that you are familiar with and know fairly well.  If you do not know enough about the business that you want to engage in, I suggest that you take on a job in a company that is engaged in the business that you want to start and learn the ropes really quick.  Success increases if the Entrepreneur knows the ins and outs of the business that he is handling.  This is where the technical skills get handy.

3.  Consider the nature of business-  Are you going into retail? wholesale? service?  There are advantages and disadvantages for these different types of models and I firmly believe that the longevity of the Entrepreneur in his chosen business field depends on which is akin or close to his kind of personality.  For example, I know of people who are really good in Retail, these kinds of people are really detailed, organized and nifty.  Wholesalers are often people who often have short temperaments and want quicker returns on their cash.  Service-oriented persons often want the assurance of a steady inflow without the details of retailing and wholesaling.  Catch the drift?

4.  Consider a franchise-  Franchises are turn-key businesses that have been systematized on the assumption that if the Franchisee follows the Operations Manual closely, he will be able to generate a return as fast as its model.   You need to be aware that not all Franchises are created equal, there are also bogus franchises all over the Philippines and you need to be educated on how to select a good franchise.  But the good news is that if you are able to tell the good ones, you will be able to shorten your learning curve and entry point to the world of business and will be able to enjoy the fruits faster.

5.  Eliminate False Assumption #2-  I define false assumption #2 as the delusion that adequate capital will automatically spell success.  Even if you invest your hard earned substantial cash in a business, the presence of which will not automatically guarantee success. It is the person or group of persons handling the business that will make or break the business.

6.  Get a Trusted mentor/expert-  as always, the presence of a trusted mentor or expert in the field of business that you will be engaging in will always place you ahead of failure  If you really want to be safe and be lucrative in your business, hire trusted experts to help you run your business.  Experts who have track records and not "word records."  Let a business mentor guide you.

This guide is meant to be a thought process only and does not constitute legal, financial or business advice.  Please form your own group of advisers that can give you the same.