SWOT analysis

  

Businesses that's been operating for a year or two can start making a SWOT analysis to their organization, specially those who has a lot of competitors in their proximity, the daily sales is not consistent.

What does SWOT really means?

S stands for STRENGTH, or what is your company good at? Example: knowledge you have, pricing, resources

W is for WEAKNESSES, what are the things that you need to improve at? like poor location, absences of staff, financial issues etc

O means OPPORTUNITIES, what trends in the market that you can exploit? like faster, stylish, etc

T means THREAT, who are the new competitors that are entering your market or can be a loss of major customers, inflation, seasonality, raw materials and transportation.

STRENGTH and WEAKNESSES can be controlled because this is a internal issue among the organization, but OPPORTUNITIES and THREAT, a phenomenon that is outside of your control.

I have here an example of an Internet Café SWOT Analysis:

 

Strengths:  Specifications of units are personalized,  it is of high quality products. Variety of services are offered from encoding, printing, photocopying, scanning,  cellphone loading and any other customer related services.

Weaknesses:  It relies solely on the internet provider and power supply to operate.

Opportunities:  The products and services can answer the needs of the customers and the possibilities of success through words of mouth can be achieved so less advertisement.  Can use the internet for other passive income like online jobs.

Threats:  Location of the internet café is not located strategically where more traffic is present.  There will be no income if there is a power and internet café shortage or technical difficulties. Influx of new entrants is high.

Plan of action: Maintain good customer relationship and provide good services all the time. Café assistant must be courteous, honest, diligent, knowledgeable and must know basic trouble shooting (and the most important is –passionate of his or her work and must be aware of what the business is all about).  Offer other related services like school supplies.  Improve marketing strategy.

By doing a SWOT analysis at least once or twice a year can be your guide on how to improve more on your services to gain more sales or improve your profit. This has worked for a lot of times to big companies and there is no harm in trying this specially to newbies.

Give a try!

What to prepare before you apply for a business permit

 

Before you plunge yourself into opening up a business, you need to prepare the following:

1. Money - of course how can you mobilize your ideas if you do not have money.
                   "when money talks, everyone listens"

2. Documents - what are they?


a. Baranggay Clearance or Community Clearance - Baranggay or Community Hall
b. Community Tax Certificate (cedula in the Philippines) - City Hall or Baranggay Hall

 

 

c. Lease of Contract to your commercial space if you are renting - Lessor of commercial space
d. Department of Trade and Industry Certificate - DTI (another seminar to attend)
e. Tin Number -  BIR
f.  SPA- Special Power of Attorney (if you are going to hire other person to process your documents)
g. Government Identification card or I.D with signature

3. Certificate or Clearance from the following:

a. DENR - Department of Environment and natural Resources (u need to attend a seminar before you can have a certificate)
b. Fire Department Certificate - Fire Department
c. City Health Permit (for your employees health benefits)

Make sure you have all those documents photo copied two or three pieces in case you need to submit to other government agency.

Try to give enough time and patience while processing because those permits and certificates will give you a head ache and there is a tendency that your blood will rise due to time constraints. These may differ from other countries wherein their business permit application is electronically done.

To hire a book keeper to process this will be okey, but if you want to experience it by yourself then it would also be better. All you have to make sure is hire as a book keeper that is a trustworthy one or else you will end up wasting your time and money.

Ingredients on becoming a successful entrepreneur

Everyone who wishes to put up a business think of nothing - but to become successful.

Who doesn't?

May it be just a simple business or a big one.
Everybody wanted to be SUCCESSFUL!

Many of us would like to put a business in order to keep away from 8 to 5 day job
or keep away from endless job they do not like,
or explore our potential entrepreneur side,
or just simply wanted to be their own boss.

Whatever reasons each of us have in our mind -
one this is for sure, we wanted to become a gorgeous, independent,
successful entrepreneur.
period.

Here's my personal list on becoming a successful entrepreneur, try to check this if you have or do not have this capabilities.

1. Dreamer and goal oriented.
2. Patience. (lots and lots of it)
3. Organized.
4. Leadership.
5. Resourceful.
6. Persistent.
7. Determined.
8. Resilient.
9. Cashability. (a.k.a MONEY)

If you have these general capabilities, I tell you - you have at least 83.99 percent ingredients to become successful in your desired business or entrepreneur ideas. If you do not have then better practice those capabilities. You better remind yourself that, "to get yourself into business is  NOT A JOKE". Risk is always around the corner. Be prepared before diving into the sea of entrepreneurship. In a no particular order sharks or a so called 'business threat' attack, this is an incredible warning you should take SERIOUSLY.

To rent or not to rent

 To rent or not to rent?

For newbie entrepreneur who wishes to rent or not to rent 

here are other things he or she needs to know before renting out a space.

Check your house.

If you have a ground floor that can be converted to a commercial space,

You do not need to rent.

If you are renting an apartment,

You can ask the lessor if it is ok to put up a small office space

or commercial space in front of your house 

or you can convert your garage space into commercial space.

This will save you 50% of your money.

Here in Davao City commercial rent ranges from - P10,000-P40,000 a month.

depending on your location.

The usual mode of payment is two months deposit and one month advance.

So if you are paying P10,000 a month, 

you need to shell out times three for your rental.

That is also subject for rental fees increase every year,

depending on your lease of contract.

Other things to consider includes:

-Light and water is usually shouldered by the renter or lessee.

-If you will close your store less than a year, the lessor will not give back your deposit.

-Any permanent improvement that you've done in the commercial space 

 will become the lessor's ownership.

-If you end your contract and decided to close your shop, 

 you can get your deposit for at least one or two months after your electrical bills

 and water bills fully paid.

If I wanted to put up my next venture as an entrepreneur,

I would definitely turn my lower ground floor into a shop.

Thus, can save me from shelling out rental money.

This will also save me from filing and paying withholding tax every month.

As well as other payments to city hall during filing a business permit.

My net income per month will be much higher because less rental fee.

The list can go on and on.

Try to think of other ways to save money.

But if you got a lot of money for a start up,

then there will be no problem if you wanted to look for a space

that suits your business needs.

To rent or not to rent-

It's up to YOU.

Tips on choosing location for your business

I assume that anyone who would like to open up a business
spend a lot of time looking around
for their prospect location.

How do I know if I choose the right location for my business?
That is a good question.

Have you tried to make a business plan?
Isn't it included in your plan?
If you have made yourself a business plan, I'm sure you already have the guide
on how to choose your location.

Anyway, the best thing to do is make your own research on
a specific location.
You must have your list of the following to guide you:

1. target market
2. affordability
3. within the proximity of your raw materials if possible
4. where so many traffic of people surrounding your area.
5. not prone to flooding
6. utilities is present (like electricity, water, internet connection..etc)
7. check also the frequency of thieves or incidence of burglar cases.
8. at least there were no bad records for the past owner or tenant.

so on and so forth.
If you miss out any of these things, then you will have a problem to address later on.
Location, location, location.
Find your perfect location, do not rush things.
Analyze first your target location, ask someone else opinion,
Be open to other's suggestion.
Make your own research.
Find your SELF.

Business name

The most awaited part of opening a business is to put a NAME on it.
Naming your business or your shop is the first thing
that you will be very excited about.
Having a name that gives great impact to customer is
a brainstorming activity that will leave you breathless.

If you think 'naming' your store is easy, think again.
Think again and again.

To be so sure of having a name approve by DTI or Department of Trade and Industry
in your area, you should prepare at least 20 to 30 names.
Believe it or not, there are so  many names that are not allowed to be used.
There are also lots of names that is already used.

Your patience is tested here while
waiting for DTI to approve your desired name.
If approved at once, it will take you more or less another
one to three days processing time,
after that you can have your certificate and
you need to pay an amount DTI required you to pay.
If it is not approve they will contact you at once and ask you
to submit again another set of names

In the Philippine setting, pinoy always used easy to remember names -
like Tindahan ni Marya for sari sari store, PANADERIA for bakeries,
loading station can just post LOAD na DITO,
Wash and Dry, or LABANDERA for laundry shop, etc etc.
Pinoy knows how to catch kapwa pinoys attention,
that is why, they are very good in naming their shop.
Makamasa or easy to remember names can be so patok to Filipinos,
because they are comfortable and very familiar to pinoy's pandinig.

Whats in a name?
Be careful in choosing your name.
It can break or make your business.

As the saying goes:

"A business without a name, is a - no business"

So now, start  naming your price dude!

Starting a business

First and foremost when you think of opening up a business

you have at least money to open up one.

How much money should one have to start a business?

It depends on what type of business do you have in mind.

Are you opening up a small business or a big one?

That's the next question.

If you want to start small then there are so many small businesses

that needs only a small amount.

In the Philippines, there are so many small businesses

that sprouted anywhere else.

If you are living in Manila, you can observe many

small retail store, sari sari store, e-loading store,

carenderia, lugawan, bukohan, barbe quehan so on and so fort.

you can start this type of typical businesses

for as small capital of 1,000 pesos to 5,000 pesos.

This will do as long as your target market is clear to you.

If you are planning to put up a business that cost P50-100K or more,

then i would suggest that you should write a business plan,

especially if you are planning to expand or open up more than one branch

of your dream business.

Sample business plan content looks like this:

Why do we need to have a business plan?

First is, in order for you to determine if your business in mind will succeed in the long run.

It must be written in a piece of paper what are your goals in putting up a business.

Your target market must be clear - who are they?

Your business location should be within the proximity of your target market,

You will be able to know how much overhead expenses you will be needing

and where will you get the finances.

Who are your competitors.

What possible threat are there.

etc. etc.

So if I were you, before looking for a commercial place

where you wanted to put up a business

try to make a business plan on a piece of paper first.

This will guide you a long the way.

There are more successful entrepreneur who writes down their goal first

on one single paper before striking.

According to Winston Churchill:

"Those who fail to plan, is planning to fail."

Do not worry if you do not know how to write a business plan

you can google them on the internet on how to write one.

So, how to start a business? First thing first, write a BUSINESS PLAN. 

You won't be astray, promise.