THE plane has touched down after a bit of turbulence, thanks to the ever-unpredictable Philippine weather. Upon disembarking, you’re greeted by a familiar scene: a crowded airport, balikbayan boxes everywhere and stores urging you to buy last-minute goodies for your family — not this time, though, since you have already bought pasalubong.
Today, after all, is a special day. You’ve returned to the homeland before, but this time, you’re coming home for good. Welcome home, kabayan.
If this is (or will soon be) your story, we’re grateful for the years you’ve spent away to provide for your family and contribute to the economy. But one important question remains: Are you truly ready to retire?
Many overseas Filipino workers (OFWs) have secured or are working to buy their own homes and cars. However, a higher quality of life also means higher living costs. The bills won’t stop just because you’ve stopped working.
The solution is often to transition into entrepreneurship. You’ve likely spent your prime years working overseas, and finding employment in the Philippines may not be viable. Age preferences among local employers can make “being your own boss” a practical — and well-deserved — option. After all, you’ve earned the right to own your time.
Risks
However, starting a business has its risks. According to US labor statistics, 20 percent of new businesses fail within two years, 45 percent within five years and 65 percent within 10 years. Before stepping into entrepreneurship, careful preparation is crucial. To help you get started, let’s explore three common reasons businesses fail in the Philippines — and how you can avoid them.
Failure to raise capital
One of the main reasons businesses fail is the inability to secure enough capital. Many entrepreneurs underestimate the funds needed to sustain a business, especially in the early stages when profits are uncertain. While your savings might be a good starting point, these are often not enough to cover costs like inventory, rent, marketing and employee salaries.
To avoid this, plan meticulously. Create a realistic financial projection that covers operational expenses, an emergency fund and growth opportunities. And if your savings aren’t enough, explore alternative financing options. Even big businesses often rely on loans.
This is where financial institutions that cater specifically to OFWs, such as Global SME Loans Inc. (GSLI), come in. As a new business (or with no business yet), your loan options may be limited since traditional loans often require bank statements to prove your business is on track for success. By leveraging financial products tailored for OFWs, you can fuel your business with GSLI’s relatively low interest rates and fast processing.
Poor market research
Another common reason businesses fail is a lack of proper market research. Many entrepreneurs skip this crucial step, eager to get started.
However, understanding your target market — knowing their needs, preferences and spending habits — is essential to your success. Take time to analyze your competition and identify what sets your business apart. What unique value can you offer? The more you know about your customers, the better equipped you’ll be to serve them and ensure your business thrives.
Lack of business planning
Finally, many businesses struggle due to the lack of a solid business plan. Without a clear road map, it’s easy to get lost in day-to-day operations and lose sight of your long-term goals. A business plan is more than just a document — it’s your guide, helping you stay focused and make informed decisions.
Your plan should outline your objectives, target market, marketing strategies, financial forecasts and growth plans. It’s not just for you; it’s also vital when seeking investors or securing loans. A well-thought-out business plan shows that you’re serious and prepared for the challenges ahead.
Starting a business is not an easy task, but with the right preparation, your entrepreneurial dreams can become a reality. By securing sufficient capital, conducting thorough market research and creating a detailed business plan, you’ll set yourself up for success.
As you embark on this new journey, remember — you’re not just coming home, you’re building a future for yourself and your family. Welcome home, and welcome to your new beginning.
Chris Dominguez is the business development manager of Global SME Loans Inc. He has been a digital marketing freelancer for over five years, helping business entities provide financial solutions in the Philippines. Email: [email protected].
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