Home-based business idea: Carinderia

Posted by oink2 Wednesday, November 16, 2011 1 comments
Is your house located in a busy area or surrounded by a lot of office buildings? If it is, then we suggest that you consider putting up a carinderia business. Start your business right in your own home with a small capital investment!

Capital: You need about P15,000 to open a small carinderia or food kiosk. The money will go to two weeks’ worth of inventory of food and ingredients, equipment and utensils, space rentals, and barangay permit fees. You may need a lower amount if you will do business in your own backyard or front yard (deduct P1,500 to P2,000 from the original estimate if this is the case) and if you will use your own existing kitchen utensils (deduct their brand-new cost). Assuming an income of P600 daily six days a week, you can expect to recover your investment by the second month. To look for kitchen equipment suppliers, click here.
Materials: You will need a space to accommodate your kitchen equipment and one to two small tables for your customers; a stove with an LPG tank (or charcoal supply if you prefer to use a charcoal stove); and cookware, plates, spoons and forks, and other utensils.
 
Workforce: You need not hire staff to get started in this business. However, when you feel it’s time to expand or offer a wider variety of dishes, you will likely need one or two staff to serve customers, wash dishes, and clean up the place.

Process:  To do this business, you must have determination and a real interest in cooking. According to Rene Jose Macatangay, a carinderia owner-operator for 11 years now, he would wake up as early as 2:00 or 3:00 a.m. to get the freshest produce when he does his marketing for food ingredients. Promptly at 4:00 a.m., he would be back at his food kiosk to do the cooking.
Finding a good location for your food kiosk is extremely important. A place very near or easily accessible to your target customers, say taxi or tricycle drivers, would be ideal. It’s also advisable to check with your barangay council if a permit is needed for a small carinderia.

Decide how many meals you will serve for the day and prepare a menu plan for at least a week. Some carinderia owners stick to a fixed menu plan particularly if they have already established best-selling dishes. In the case of Macatangay, however, he only serves merienda (snacks) and lunch. He opens at 10:00 a.m. and closes by 4:00 or 5:00 p.m. He regularly serves goto andlugaw (both rice porridge snacks) and tokwa (soybean cake). Although he changes his lunch menu every day, he has standard fare for particular days, like ginisang munggo (stewed mung beans) every Friday.

Make your pricing reasonable and within the reach of your target market.  Macatangay says he keeps his prices low to maintain the loyalty of his regular customers.

Marketing: Word-of-mouth advertising is your best promotional tool for this type of business. Satisfied customers will talk about your carinderia and recommend it to their friends who happen to be in the vicinity. And for Macatangay, it is a source of great satisfaction to see his loyal customers come back every day for his food fare. 



source: entrepreneur.com.ph

Successful Business: Chef Tony's Popcorn

Posted by oink2 Saturday, November 12, 2011 0 comments
Businesses: Chef Tony’s Popcorn
Cajun Red Rock
Featured: July 2007

Demand for your product may outstrip supply, but it is never a good idea to expand beyond your production capacity. Take it from Chef Tony Elepaño: “As we grew, we focused so much on moving forward that our basic infrastructure was left behind.” Faced with commissary and factory problems, Elepaño in February 2009 put a suspended expansion, until after he rebuilt the factory and trained more people. “Restaurants don’t run on machines. They run on chefs, restaurant managers, and staff. I should’ve seen where I was going and trained leaders and built my infrastructure correspondingly,” he says.

“I’m a lot thinner now,” says Tony Elepaño, referring to his photo in his first feature in the July 2007 issue of Entrepreneur. But aside from the obvious, the brains behind the now hugely popular (and addicting) Chef Tony’s Popcorn is proud that, in terms of stores, his team, and his assets, they have definitely grown. 

Indeed, Chef Tony’s is a perfect example of a “Why didn’t I think of that?” business concept. Elepaño says, “Popcorn was only the venue for the idea of having an excellent snack. I think we were able to communicate that.” That’s an understatement.

After a rough patch creating a restaurant called Cajun Burgers and Ribs in 2002, Elepaño found himself in eight-figure debt that forced him to start all over again, this time with popcorn. From one kiosk with starting capital of only P20,000 in 2006, Chef Tony’s Popcorn has now popped into 52 company-owned outlets all over the Philippines. Its success has allowed Elepaño to reincarnate his restaurant, now called Cajun Red Rock—and it has grown to three outlets now. All of this happened in just under a decade. Sweet. 

“I have always been an entrepreneur first,” says the 39-year-old restaurateur, “then I eventually studied to become a chef. However, I think the principles and values that I learned while I was building the first Cajun restaurant or the first Chef Tony’s outlet never changed. There’s no difference, (it’s) just a bigger company.” 

By “bigger” he means the people he now employs (over 200), the strong brands he has created, and the wider reach of his popcorn creations. From Chef Tony’s kiosk outlets, “we have started to enter into supermarkets which, way back then, I didn’t consider. [When the feature was done in 2007] I believed the product wasn’t ready for the supermarket shelves. Now we believe we have enough brand recognition that when customers see us on the shelves, the brand will always be in their minds. We built that over time.” 

Over time also, Elepaño discovered something he wishes he knew then. “Had I gotten to know my target market earlier, then I would not have wasted a lot of marketing efforts on other things and we could’ve started to wow them earlier,” he says.

“If we defined these things earlier then maybe we’d have focused our resources to building bigger stores. We thought it was a cart and counter business. That’s not how it turned out to be.”

In addition to defining his market, Elepaño had to get a different kind of backbone. “As we grew, we focused so much on moving forward that our basic infrastructure was left behind.” They had commissary issues for the restaurant and factory problems for the popcorn, which, in the end, “made us miss some opportunities to grow abroad or have the products exported.”

To resolve that concern, the business had to stop expanding. “I saw the issue and I started to rebuild my factory and started to train more people,” says the chef. “Restaurants don’t run on machines. They run on chefs, restaurant managers, and staff. I should’ve seen where I was going and trained leaders and built my infrastructure correspondingly.” With those problems resolved, Elepaño soon found himself exporting to countries like Guam, Taiwan, and Singapore.

As simple a product popcorn may be, it takes an entrepreneur to make it, well, pop. Chef Tony knows it. “I think the success of Chef Tony’s is because consumers believe that now they can have a venue for something really good for them, with not only an excellent and well-thought out product, but something that can wow them at the end of the day.” That’s something to chew on.

Tony Elepaño: The Popcorn Man
CHEF TONY’S SNACK FOODS PHILS. CORP.
www.cheftonys.com 
2/F GLIC Bldg. 739 Banawe St., Bgy. St. Peter, 
Quezon City, 1114

source: entrepreneur.com.ph

Tips in Starting a Laundry Business

Posted by oink2 1 comments
Do you want a simple business that has a growing demand and high profit potential? A laundry shop may be your dream business. Reliable “labanderas” are getting harder to find and busy people often have no more time to do their own laundry.
Below is short list of the steps you need to take to launch your venture:
  • 1. Consider your financial resources. You will need a minimum of around Php 200,000 to fund your own laundry. You may opt to get a franchise to lessen the risk but this will mean less control over your business and additional overhead in the form of royalties and other expenses. Still a franchise is a good option because of marketing and operational advantages among others.
  • 2. Determine your target market and find the ideal location. We suggest those near condos and dorms where there is a large demand for laundry services.
  • 3. Check if the water supply is adequate and fit to use. There are places where the water is insufficient or has too many minerals for laundry use.
  • 4. Register your business name once you already have a location. If it is a sole proprietor, go to DTI and if it is a corporation or partnership, you must register with the SEC. Then get a barangay clearance before proceeding to city hall and finally to the BIR.
  • 5. Acquire and install equipments. For a start up it is recommended that get brand new equipments. Second hand machines may break down often and cause more expenses, especially if you factor in lost sales.
  • 6. Hire and train new employees. Check their back ground carefully and have them submit a current NBI clearance. Make sure they are well trained not only on how to operate the machines and clean laundry but also on basic customer service.
  • 7. A return on investment of one year or even less is very possible if you have a good location and you know how to run your laundry well.

source: mixph.com

How to start a Pawnshop Business

Posted by oink2 Thursday, November 10, 2011 1 comments
Pawnshops and pawnbroking have been around for thousands of years. The basic idea behind any pawnshop is to loan people money. In the Philippines, pawnshop has the highest rate of interest earned for one year. Normally loan interest rates is at 60% (5% x 12 months ) annually on every loan released compared to 10 – 20% interest rates of the commercial / rural banks and other financial institutions. It has a potential to earn a Return of Investment in just 3 years and a half.
This is the reason why the growth of pawnshop is compared to sprouting mushroom even at stiff competition with multi-national pawnshop companies, locally owned pawnshop can still perform well and got a sliced of the short term credit market.

1. Call Bangko Sentral ng Pilipinas (BSP) pawnshop hotline, (02)524-8713, to check if the pawnshop name you want is already taken.
2. Register your business either at the Department of Trade and Industry (DTI), for single proprietorship, or the Securities and Exchange Commission, for partnerships or corporations.
DTI is located at the Trade & Industry Building, Sen. Gil Puyat Ave., Makati. In the provinces, DTI offices are in or near municipal buildings. Application forms are also available at DTI’s website. Only Filipinos may own a pawnshop organized as a single proprietorship. For partnerships and corporations, foreign ownership should be limited to 30 percent.
3. Secure a business permit from the city or municipality where pawnshop will be located.
4. Register with the BSP. For the complete list of requirement, download the form here. These include permits from the DTI or SEC and the local government, an information sheet, personal data sheets, bank certification of at least P100,000 capital and location sketch.
5. Pay the processing fee of P1,000.
6. It will take two to three weeks for the BSP to process your application. Make sure you open your business within six months after the application is approved or your permit will be revoked.
FAQ – Nature of Pawnshop Business
1) What is the nature of Pawnshop Business and the Pawnshop Industry in the Philippines?
In observing the growth of micro enterprises in any Philippine cities and town areas are one of the sign that people nowadays wants to have additional income due to the rising prices of basic commodities and services, accompanying the implementation of Value Added Tax (VAT) and the unpredictable increase of crude oil in the world market to meet the needs of their families. Even the labor sector specifically the employees are in search for things to sell in their offices and work places to augment their income. So even the business and investment sector are now looking for crisis proof business which will entail them a good return on their investment. They don’t want to risk their money to start up business due to ineffective operating systems and knowledge about the market.
But for the Pawnshop Industry, economic crisis is the reason why they are in the business. The people today are learning that they could get a better deal and a better buy in a pawnshop than in a regular retail store. But before we go to Pawnshop Services and Operation let us discuss the Pawnshop’s Nature and its Industry;
The Pawnshop Owner or simply describes as Pawnbrokers (collateral loan brokers) engage in short term credit. This loan is made at a relatively high interest rates based purely on the intrinsic value of the collateral. The business answers the huge loan demand of the people belonging to the low income strata which left unattended by the banking system. The bank usually requires collateral such as real estate properties, salary statements or payrolls, tangible assets like equipments, machines, plant etc., which the middle class does not possess. They also require an arduous and tedious processing which result to untimely release of short-term credit which they needed to pay their over due bills and other financial obligations.
The bank also doesn’t allow small amount of loans ( Php 200.00 to Php 2,000.00) just to pay the said bills, tuition fees and other emergency expenses arises which are not part of the budget allocation for the month.. This economic opportunity – a huge short term credit demand – left unattended in the market by banks and other financial institution made the Pawnshop as the leading grassroots money lender, serving as a source of credit to millions of Filipinos, providing average small-secured loans – Php 200.00 to Php 1,000.00) for a brief time period (2 to 4 months).
In 1999, there was one (1) pawnshop for every 8,756 people in the country and today in the Philippines there are more than 10,000 registered pawnshops and 5,000 pawnshop owners according to the Bangko Sentral ng Pilipinas (BSP) that is up close to 3000 Pawnshop in 2000. This figure far exceeds the number of banks and bank owners in the country.
The BSP and other financial analyst have seen a stable growth rate of 10 -20% in the next several years which means the Philippine Economy can still accommodate 1000 to 2000 new Pawnshops due to the following reasons;
i. HISTORIC GROWTH REGARDLESS OF ECONOMY
Pawnshop does best during periods of high unemployment and tight money when customers seek to convert property to cash. They also do extremely well during periods of economic expansion, when loans tend to be short term and used for meeting unexpected bills for daily consumption, medical expenses, appliance replacement, and home and vehicle repairs.
ii. FAVORABLE LENDING CLIMATE
The Pawnshop Industry is regulated and governed by Presidential Decree No.114 decreed by the late President Marcos in the early 70′s. P.D. 114 has always been favorable to the pawnshop industry. This is the reason why number of pawnshops has increased in previous years.
iii. PROFESSIONALISM AND FRANCHISING
Pawnshop are now manage by Professional Staff and Officers which results to more innovative marketing strategy and customer care that benefits its clientele. It also hires and trains its staff for courtesy and standardized procedures in dealing with the customers particularly those who not been privilege for their education, explaining to them the policies and regulation in entering the short term credit such as the date of expiration and the interest incurred on the said short term loan. Franchising the pawnshop also spear-headed the growth as more interested franchisees wants to invest in pawnshop business, usually amazed with growth of pawnshop in their community, like mushroom sprouting around its corners of the business area. Franchising helps neophyte entrepreneur to achieve success rate of operation and return on their investments at 97% rate compared to 33.33% rate of business success in a trial and error operation system of a starting business.
iv. IMPROVING PUBLIC IMAGE
Sensitive to the historic, unfavorable image of pawnshops, many modern pawnshop operators are striving to win public approval and acceptance. Modern Pawnshop owners are participating in Civic and Religious Organization which has a mission in helping the less privilege sector of society by continuous education in Early Childhood, Earning Additional Income, and Spiritual Nourishment Programs which is vital to regain their dignity and become productive citizens of our society. For instance, SMDC Pawnshop and Jewelry CO., helps the young children of the poor for their Preschool to College Education by sponsoring them in the programs for the poor children and youngsters of Our Lady of Lourdes Catholic Charismatic Foundation Inc. This is part of the social responsibilities being accounted for by the Pawnshop business.
Nowadays, many people see pawnshops as legitimate businesses that pay taxes and hire people, just like other respectable businesses. In the past, the poor reputation was earned, but pawnbrokers have done a good job dispelling those old scenarios and running clean, respectable operations. If the pawnshop owner does not run a respectable pawnshop, most likely he will not make to walk in the ladder of success of pawnshop industry.


source: mixph.com

Starting a Money Changing Business

Posted by oink2 Wednesday, November 9, 2011 0 comments

There are many places that have a strong demand for a money changing business. The growth of tourism and our large OFW population has guaranteed a huge market to be tapped by money changers. This is one opportunity you may not want to miss. It is a simple business if you know how to start and operate it. Below is a shortened and simplified step by step procedure to give you a basic idea on this business:
1. Find an ideal location. The key to success in this business is to secure a location in a place where there are many potential customers who feel safe when changing money. Previously this was limited to areas where there are many foreigners like the tourist belt. Now, some of the best locations are public markets, commercial areas, malls, and other places where a lot of people find it convenient and secure to change money. A location where you see money changers overflowing with customers are prime spots for putting up this business.
2. Registering a money changing business. A money changer business can be a sole proprietor, corporation, or partnership. Sole proprietors need to go to the department of trade and industry, while corporations and partnerships must go the Securities and Exchange Commission. You then must get a barangay clearance before proceeding to get a mayor’s permit and then registering with the Bureau of Internal Revenue and having your receipts printed.
3. Requirements of the Central Bank. You also need to register with the Central Bank. One of the key requirements of the Central Bank is attendance at the Anti-Money Laundering Law Seminar.
4. Capital needed. While there is no legally mandated minimum amount, it is recommended that you have around five hundred thousand pesos to start this business excluding a minimal amount for renovation, furnishings, and equipment. A bigger capitalization will enable you to have more transactions.
5. Learn buying and selling prices of different currencies. You make your profit from the difference in value between your buying and selling of currencies and so you must know the way of rapidly updating buying and selling prices.
6. Learn counterfeit money detection. The most critical operational skill you and your staff must acquire is to learn how to detect fake currencies. To do this, you must have the tools of the trade: the lens, ultra violet money detector, and white light.
7. Attracting and retaining customers. On the surface it seems that your product or service is hard to differentiate. However, there are many aspects that could be made more appealing to increase the chances of customers preferring your shop. Physically, make external facade look neat with your signage prominent and clean. But the most important is to have well trained staff that can deliver excellent customer service.
The money changing business offers the prospective entrepreneur a solid business opportunity. The demand for this service will most probably continue to grow. If you want to gain more information on money changing, Businesscoach Inc., a leading business seminar provider, offers a two-day seminar on the topic. 

source: mixph.com

Making the most out of your bazaar experience

Posted by oink2 Friday, November 4, 2011 1 comments
It's the bazaar season once again and with All Saint's Day and All Soul's Day over and done with, we can expect everyone to go full blast on their holiday preparations. And that includes bazaars!

From the high-end bazaars in posh villages, to celebrity bazaars, and the weekly evening bazaars, major cities in the country will have bazaars left and right to satiate the shopping needs of the Filipino. And since bazaars is an opportunity for entrepreneurs,Entrepreneur.com.ph listed down tips on how you can make the most out of your bazaar experience.

PRE-BAZAAR
1. Research! Research! Research!
Check the track record of the bazaar organizer and the foot traffic of their previous events. Find out if the bazaar’s target market fits yours. Examine the venue’s accessibility and the lineup of merchants as well. 

2. Be introspective.
Try to put yourself in the shoes of prospective bazaar-goers and think out if the bazaar venue you have in mind is actually a place you would want to visit. And if there’s going to be an entrance fee, would there be a degree of reluctance on the part of the bazaar-goers? 

3. Promotion
Find out how the bazaar organizer can further promote the activity and your brand.

BAZAAR PROPER

1. Flaunt your PR skills.
Really talk to your clients! There is so much you can learn from them by simply listening to their ideas and suggestions on how to improve your products. Get their contact details. 

2. Always bring a set of business cards and promotional tools.
Have a business card or flyer ready. That’s also the easiest way to generate regular customers. 

3. Smile!
Enjoy the experience and have fun no matter how tedious the bazaar is. Your aura reflects on how you deal with clients, and it can either attract or disappoint a customer.





source:entrepreneur.com.ph

How to Use Twitter for Your Small Business

Posted by oink2 Tuesday, November 1, 2011 0 comments

For small businesses with no marketing budget, the free microblogging site Twitter can be a powerful means of reaching customers and getting the word out.
Mobile food businesses use it to announce their next location and their menu for the day. Social-media savvy bloggers use it to share their latest postings and articles.
However, many more small business owners either do not understand the purpose of Twitter; or do not know how to use Twitter.
The new book Taking on Twitter: Strategic Tweeting for Small Business We interviewed Kathi Browne on how small businesses should use Twitter:

Why should small businesses use Twitter?
Twitter’s main strength is not selling a business or product. Its strength is in spreading information quickly. At the very least, businesses should consider using Twitter as a resource to stay informed about an industry, customers, and competition. Then those businesses will begin to understand how important it is to have a presence, too.

How can Twitter help business owners reach their target market? How does it help them build their brand?
Twitter makes a direct and indirect impact on a market. You know the saying, “say it enough times and it will be true.” Well, “get seen enough times and you will be known” is equally true. Brand recognition can be greatly improved if you tweet effectively, and that means more people know about you. In addition, the more buzz you create on Twitter, the more it affects your page ranking on search engines like Google.

What is the common mistake that you’ve seen small business owners commit on Twitter?
Too many businesses don’t take the time to understand how Twitter works. They either build up a huge following and then flood them with spam, or tweet really good content to a following of only a few.

Many small businesses hesitate to tweet because they don’t know what to say on Twitter. What should they tweet about?
Social media is about being personable. It is the human quality of a business that keeps people interested. Businesses shouldn’t tweet as a building, but as somebody inside the building. People want a glimpse of who that person is and what makes them adorable, funny, interesting, or unusual. Work a brand or promotion into the storyline and you have a good presence.
For example, imagine a Mary Kay rep tweeting from the perspective of a dog who thinks she runs the place. One day, the dog tweets that she will give a free lipstick to the first person who tweets a picture wearing the same nail polish she is wearing that day. Tweets flood in naming color after color along with pictures of customers wearing the product. Later, the dog announces the winning color (with a picture, of course) and comments on how nice everyone looks. Not only does she get people talking about their favorite Mary Kay color, but the customers enjoy being mentioned too.

What are your top 3 tips for small business owners in using Twitter?
  • Communicate your social media strategy with all of your employees so they aren’t in the dark and so they can contribute to the success.
  • Engage with others in two-way conversation.
  • Give other people the gift of exposure so they will return the favor.


source: powerhomebiz.com
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