While about 4,000 businesses in the Philippines are large, the majority of the enterprises here belong to the small, medium, or micro industries (MSMEs). These are companies whose asset size is less than a hundred million and whose number of employees doesn’t reach 200.
Because of the small requirements, they are easier to put up. In fact, Filipinos can already begin a business for as little as 500 pesos. Check out these business ideas according to the budget and then open a check account:
1. If You Have 500 Pesos
The easiest business to open if you have 500 pesos is something related to food. In particular, these are options that are either sweet or savory.
The Filipino palate is actually extensive. Proof of that is the growing popularity of international cuisines from Korean to American. However, the locals’ taste buds seem to prefer these two flavors.
Experts believe that savory dishes were one of the influences of the Spanish colonizers. But when food became scarce, especially during the war, the Filipinos turned to sweet stuff to whet their appetite.
With your 500 pesos, you can already begin the following sweet-and-savory food businesses:
- Congee, lugaw, or goto, which you can sell for 30 to 50 pesos per bowl (make it special with egg, and you can increase the price for at least 5 to 10 pesos)
- Cupcakes, which you can offer for about 50 to 100 pesos depending on the size
- Mango float, which could sell for less than 150 pesos per container
- Adobo tray, which can liven up any party or gathering at a price of 300 pesos or less, according to quantity or volume
2. If You Have 5,000 Pesos
A lucrative but competitive MSME idea that’s worth at least 5,000 pesos is clothes retail. You can buy the clothes in bulk from major suppliers in Divisoria, tiangges in Quezon City, or many vendors in Rizal. This way, the cost per unit goes down, and you can mark it up between 50% and 100%.
Another option is to partner with the local seamstresses or sewing shops. They can create clothing according to your or your customers’ preference. Because they can already be customized (and you can make it your brand), the selling prices can even be higher.
Because of the limited budget, owning a physical store will come later. Instead, you can sell your items door to door or offer them on e-commerce sites like Lazada or Shopee. Fashionable items are always consistently popular, particularly during big sales.
Better yet, practice your salesmanship and go live on social media, such as Facebook. You can sell your clothes in real-time while building your customer base and learning how to communicate with them more effectively.
4. If You Have 20,000 Pesos
Starting a business from scratch is a hassle. If you want to take a shortcut, you can already franchise for as little as 20,000 pesos.
Usually, the more affordable options are food kiosks. These are not your Jollibee or Mang Inasal, but they are offer food that fits the Filipino taste, making them easy to sell in the market.
Moreover, franchisers may allow you to sell more than one of their food brands for a single cart. In turn, you can diversify your customers’ options and increase your income.
If you’re planning to invest in this pandemic, you can consider an online franchise. In this setup, you sell the goods through the Internet only. That saves you money to pay for the rent of space and even labor. You can then redirect the funds to marketing and working capital.
5. If You Have 100,000 Pesos
With this amount, you can dream bigger. One of the best business ideas you can pursue is a business processing outsourcing (BPO) company. Not only is it the largest, but the industry is likely to surpass the growth of the country’s economy despite the pandemic.
BPOs come in many sizes, and you can always begin small. With 100,000 pesos, you can rent a working space with business amenities like a strong Internet connection, computer, printer, and fax for at least 8,000 pesos per month for one or two people.
The rest can go to marketing, payment of business fees like permits, investment on more pieces of equipment, and wages of the staff.
You can start with a virtual assistance company where recruitment services can cost at least $300. It depends on the skills the client is looking for. The more difficult it is to fill the position, the more expensive it gets.
Armed with your deepest desire to achieve financial freedom and capital as low as 500 pesos, you can become an entrepreneur in the Philippines.