Business Independence Options

 

MSMEs (Micro, Small and Medium Businesses) are considered the backbone of the Philippine Economy. Leaders of both government and private sectors admit the role of entrepreneurs play. According to an Asian Development Bank study, new and small firms generated 50 percent of innovations during the 20th century. Every Filipino has a gift of selling and dream of getting into the business. In fact, if one were to do a survey, micro-businesses are occurring in every office. Some employees conduct side businesses like electronic loading of cellphone credits, buy and sell of clothes which may be paid in “gives” (installment plans). Others even extend credit or “paluwagan.”

In 35 years of profession, I admire those entrepreneurs who dare transcend to another level. They wanted to explore different possibilities. Thus an entrepreneur can be somebody who is fearless, an outbox thinker, and open-minded. Remaining in their status quo is not in their vocabulary.

More and more young people are daring the older generation gets scared. I believe it is more of seizing opportunities and doing at the right time.

The growth of many businesses in the country can be attributed to the desire of an entrepreneur to expand and maximize the potential of the concept. It is a fact majority of companies belong to the MSME (Micro Small and Medium Enterprise). According to the Department of Trade and Industry, the following are the classifications based on Asset:

• Micro:  Up to P3, 000,000
• Small: P3, 000,001-P15, 000,000
• Medium: P15, 000,001 – P100, 000,000

On Number of Employees 

• Micro: 1 – 9
• Small: 10 — 99  
• Medium: 100 — 199

 

One sure way of achieving business independence is taking the Franchise route.

How did the word “franchise ” come about? According to Wikitionary.org, it is from the middle English franchise, fraunchisen, from Old French franchir (stem franchises-, “to set free”), from franc (“free”).  From this definition, franchising is defined as being in business for yourself BUT not by yourself. There is this liberation of thinking about how, where, and when to build branches for an entrepreneur. There are other people called franchisees who with great interest, willingness to invest and manage the extensions. On the other hand, the franchisees enjoy working the business under the guidance of the franchisor.

The relationship of the two parties is and should be synergistic. There must be a win-win basis. However, there are areas, which need to be reinforced. First is the awareness and education level of franchising among entrepreneurs. Indeed, there is no doubt the brand is catapulted to greater heights. Eventually, the value of the business increases with expansion via franchising. Doing the right way of franchising a business begins with a proper mindset. Suppose the person’s motive is to immediately fast-track the franchise program to get the money of people interested. In that case, I do not think such a business is worth getting into.

The other day, I talked with a young man who narrated how he and his wife felt betrayed by the franchisor. They both believed in the concept and potential of the business. They did sign up and invested somewhere to the tune of Php 3M. That money was hard-earned, and a significant portion came from both parents who borrowed at “zero” interest or paid when able. What is sad is that as the months passed by, the couple felt the waning support of the franchisor and the head office. Stocks were not consistent. They were left to fend for themselves. Asked if they tried to meet the franchisor? The secretary of the franchisor just ran out of excuses to give!  With a bitter pill, the couple had to swallow the fact nothing positive was happening. They even had to contact the other franchisees to ask if such problems were also experienced? They were never given occasion to meet all together.

The couple cut further loses and threw in the towel. However, as the saying “when one door closes, the Almighty opens another.” True! Today their newfound business is on its 4^th year with 6 solid branches and has carved a niche in the market. The couple shall soon be franchising. What happened to their former franchise? Unfortunately, the word “karma” has caught up with the owner. Only one branch remains standing.

Finally, here are my valuable tips, especially now that many are planning of going into business:

 

1. Do conduct your business as it were a Mission of Goodwill
2. Remember and apply the Golden Rule
3. Impossible is always “It is Possible.”
4. If you believe in your business concept, pursue it to a higher level
5. Expanding a business depends on the passion and confidence of

    Entrepreneur.

6. If you have a dream, pursue it step by step; a business given the

 proper care grows.

7. Franchising is still the best route; tried and tested based on a

    prototype.

8. When one door closes, remember the Almighty opens another.

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For questions and more information, you may contact Armando “Butz” Bartolome.

By email: [email protected]

FB Page: Butz Bartolome

Website: https://www.butzbartolome.com