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Business Plan

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Using a business plan in the Philippines is crucial for several reasons. Firstly, a business plan serves as a roadmap that outlines the goals, strategies, and financial projections for a business venture. It helps to clarify the direction and vision of the business, ensuring that all stakeholders are aligned. Additionally, a well-developed business plan is often required when seeking financing from banks, investors, or government institutions. It demonstrates the feasibility and potential profitability of the business, increasing the chances of obtaining funding. Themis Partner helps you draft the best business plan for your company while being fully compliant with Philippines Laws.

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Table of contents, what is a business plan, when do you use business plan for your business, why is a business plan important for success, what does a business plan include in the philippines, how to make a business plan for the philippine market, what are the tips for writing a business plan for startups, how important is market research in developing a business plan, how to incorporate financial projections into my business plan.

A business plan is a comprehensive document that outlines the goals, strategies, and financial projections of a business. It serves as a roadmap for entrepreneurs, providing a clear vision of their business idea and how they plan to achieve success. A well-crafted business strategy roadmap includes sections such as an executive summary, company description, market analysis, marketing strategies, organizational structure, financial projections, and more. It helps entrepreneurs articulate their business concept, understand their target market, identify potential challenges, and plan for growth and sustainability.

Business plans are typically used in various scenarios throughout the lifecycle of a business. They are essential when starting a new venture as they provide a blueprint for success, helping entrepreneurs secure funding from investors or financial institutions. A business plan is also beneficial when seeking partners or collaborators, as it outlines the business’s potential and growth prospects. Moreover, established businesses can use these strategic roadmaps to strategize for expansion, diversification, or entering new markets. Additionally, a strategic roadmap can be periodically reviewed and updated to assess progress, make necessary adjustments, and attract new investors or stakeholders.

A comprehensive business plan is vital for success in the Philippines due to several reasons. Firstly, it helps entrepreneurs gain a deep understanding of the local market dynamics, consumer behavior, and competition. The Philippine market is diverse and rapidly evolving, making market knowledge crucial for business sustainability. A well-researched business strategic roadmap allows entrepreneurs to identify and capitalize on market opportunities, mitigate risks, and make informed decisions. The business strategic roadmap is essential for attracting investors in the Philippines. Investors often require a thorough strategic roadmap to assess the viability and potential of a venture. A comprehensive plan demonstrates professionalism, preparedness, and a strategic approach to business development. It provides investors with the necessary information to evaluate the financial projections, growth prospects, and return on investment. A strategic roadmap serves as a roadmap for entrepreneurs, outlining their goals, strategies, and milestones. It helps in aligning the efforts of the entire organization and provides a basis for decision-making. A well-structured plan enhances operational efficiency, resource allocation, and risk management, ultimately contributing to the overall success of the business in the dynamic Philippine market.

By incorporating these key elements into your business plan, you can create a comprehensive and tailored document that addresses the specific needs of ventures in the Philippines. This ensures that your document aligns with the local market dynamics, consumer preferences, and regulatory environment, increasing the chances of success.

1. Executive Summary: This section provides a concise overview of the business, its mission, vision, unique selling proposition, and key highlights.

2. Company Description: Describe the nature of the business, its legal structure, products or services offered, and the target market in the Philippines.

3. Market Analysis: Conduct a thorough analysis of the Philippine market, including market size, growth trends, customer demographics, and competitive landscape.

4. Marketing and Sales Strategies: Outline your marketing and sales approach, including pricing strategies, distribution channels, promotional activities, and customer acquisition plans.

5. Organizational Structure: Define the organizational structure of your business, including key management personnel, their roles, and responsibilities.

6. Product or Service Offering: Provide detailed information about your products or services, including their unique features, benefits, and competitive advantages in the Philippine market.

7. Financial Projections: Include financial statements, such as income statements, balance sheets, and cash flow projections, to showcase the financial feasibility and profitability of the venture.

8. Risk Assessment and Mitigation: Identify potential risks and challenges that may impact your business in the Philippine market and outline strategies to mitigate them.

9. Implementation Plan: Outline the steps and timelines for executing your document, including key milestones and resource requirements.

Step 1. Executive Summary

Provide an overview of your business idea, including your goals, target market, and unique value proposition for the Philippine market.

Step 2. Market Analysis

Conduct comprehensive research on the Philippine market, including customer demographics, buying behaviors, cultural nuances, and trends. Identify market gaps, competition, and potential opportunities specific to the Philippines.

Step 3. Business Concept and Value Proposition

Clearly articulate your business concept and how it addresses the needs of the Philippine market. Highlight your unique value proposition and how it differentiates you from competitors.

Step 4. Marketing and Sales Strategy

Outline your marketing and sales strategies tailored to the Philippine market. Define your target customers, pricing strategy, distribution channels, and promotional activities. Consider leveraging digital marketing platforms, local partnerships, and culturally relevant marketing approaches.

Step 5. Operational Plan

Detail the operational aspects of your business, including location, facilities, equipment, and production processes. Consider local regulations, permits, and licensing requirements that Philippines Laws may apply.

Step 6. Organization and Management

This document may indicate stability for your firm by demonstrating that you have planned ahead of time so that any issue can be resolved easily and quickly. This is very crucial for banks and other creditors who may be interested in investing in your firm.

Step 7. Product or Service Offering

Provide a comprehensive description of your products or services and how they meet the needs of the Philippine market. Highlight any customization or localization efforts specific to the local preferences and cultural context.

Step 8. Financial Projections

Develop realistic financial projections, including sales forecasts, expense estimates, and projected profitability. Consider local market conditions, pricing dynamics, and costs specific to the Philippine market.

Step 9. Risk Assessment and Mitigation

Identify potential risks and challenges that your business may face in the Philippine market. Develop strategies to mitigate these risks, such as contingency plans, partnerships, or diversification strategies.

Step 10. Implementation Plan

Create a step-by-step action plan outlining the tasks, timelines, and responsibilities for launching and operating your business in the Philippine market. Include milestones and measurable goals to track your progress.

ℹ️ Themis Partners legal experts also help you in your company registration so it helps you select the right type of company and ensure a full compliance to the Philippine Laws.

Writing an effective business plan for startups in the Philippines requires a focused and strategic approach. Begin by clearly articulating your business concept, value proposition, and target market, emphasizing what sets you apart from local competitors. Conduct thorough market research to understand customer needs and preferences, and tailor your products or services accordingly. Outline your marketing and sales strategies, incorporating digital marketing techniques and innovative promotional campaigns to reach and attract your target customers. Showcase your understanding of the local competitive landscape and explain how your startup will gain a competitive edge. Present a comprehensive financial plan with realistic revenue projections, expense forecasts, and a clear path to profitability. Highlight the qualifications and experience of your team, demonstrating their commitment to the success of the startup. By following these tips, you can create a compelling strategic roadmap that resonates with potential investors and stakeholders in the Philippines.

Market research and analysis play a critical role in developing a business plan for the Philippine market. It provides valuable insights into customer preferences, market trends, competition, and industry dynamics. Here’s why market research is important:

By incorporating comprehensive market research and analysis into your business plan, you demonstrate a thorough understanding of the Philippine market. This increases the credibility of your plan, enhances its strategic relevance, and positions your business for success in the dynamic and competitive Philippine market.

Financial projections and forecasting play a vital role in a business plan for ventures in the Philippines, providing a clear understanding of the financial feasibility and profitability of your business. To incorporate financial projections into your plan, develop realistic revenue projections based on market research and sales estimates. Estimate expenses comprehensively, considering operational costs, marketing expenses, and other relevant expenditures. Create a cash flow projection to track cash inflows and outflows, and conduct a break-even analysis to determine the point of profitability. Determine your financing needs and outline plans for raising capital, while considering sensitivity analysis to assess potential market fluctuations. By including comprehensive financial projections in your strategic roadmap, you demonstrate financial acumen, attract potential investors, and provide a strong foundation for decision-making and resource allocation in the Philippines.

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Table of Contents

Business Plan Philippines

Are you looking to download a free small business plan Philippines pdf?

Filipino Wealth has created a free business plan template that you can use when starting a business in the Philippines.

Includes Product & Service Analyst, Market Research, Financial Forecasts, Business Strategy, Competitor Analysis, and more.

Financial Planning Philippines

The financial template is perfect for small and start-up businesses in the Philippines looking for a simple guide to business finances.

The template explores sales, returns, net sales, gross profit, wages, rent, total expenses, and other important financials

Marketing Template Philippines

Marketing is increasingly popular for businesses in the Philippines.

Therefore, this handy marketing plan can help small businesses prepare and manage their financial strategy.

In the template, you will find several marketing options, financial estimations, dates, additional questions, and added extras to help your business market in the Philippines.

Printable Planners

4.1 goal planner, 4.2 daily planner, 4.3 weekly planner.

The weekly planner file can be downloaded below.

4.4 Monthly Planner

4.5 research planner, other printabletemplates, 5.1 habit tracker.

The habit tracker file can be downloaded below.

5.2 To-Do List

The to-do list file can be downloaded below.

5.3 Sales Record

How To Start a Business in the Philippines: The Complete 15-Step Guide

Here’s the cold harsh truth about employment:

It’s a rat race and even if you win it, you still end up a rat.

A rat with no control over his schedule, income, and projects to work on.

I’m not saying everyone should leave their jobs en masse. Some people consider their jobs as a vocation and can’t imagine doing anything else.

But for others who are yearning for more freedom and feel stuck at their current jobs, there’s a great alternative–entrepreneurship.

The best part is you don’t have to start big. Even with a small capital, you can open a business in the Philippines and make it profitable through smart planning. This article will teach you exactly how.

How To Start a Small Business in the Philippines With Small Capital: A Step-by-Step Guide

Great things start from small beginnings.

When they started their businesses around WWII, Max’s Restaurant and National Bookstore were deprived of advantages. But with sheer persistence and great strategies, they eventually became household names.

The same is true for almost all the famous brands we recognize today.

Therefore, whether you want to supplement your current income or become your own boss someday, the only way to go big is to start with a small business.

Small business or small-scale enterprise is one that hires few employees and has a relatively smaller asset size.

In order for a small business to qualify for government assistance and incentives, it should have capital assets amounting from Php 3 million to Php 15 million and with employees numbering from 10 to 99 workers 1 . Anything below these levels is classified as microenterprise while businesses that exceed them are known as medium- to large-scale enterprises.

However, the consensus today is that micro, small, and medium enterprises all fall under the general term “small business”.

By starting a small business in the Philippines, you as the owner will pretty much wear several hats–from marketing and finance to production and management.

Hence, it’s crucial to arm yourself with knowledge about all these fields especially at the beginning when you still don’t have the means to hire specialists.

This article will teach you how to start a business in the Philippines with a small capital, no business experience, and little or no college education.

Let’s get the ball rolling.

Step 1: Know your “Why.”

Holocaust survivor Victor Frankl wrote in his book that “those who have a ‘why’ to live can bear with almost any ‘how'” .

Starting a business may not be as tragic as a Holocaust but it is certainly not a walk in the park either.

On one side, owning a business gives you unlimited opportunities to earn money , be your own boss, explore your creativity, help others, and build a legacy.

But there’s another side to the entrepreneurial coin: the risk of failure.

In addition to that, starting a business in the Philippines where unpredictability abounds will push you to go beyond your comfort zone. Success won’t come easily. Long hours of work, missed family times, and sleepless nights will hound you especially during the early stages.

And did I mention you’ll be juggling a lot of hats so you’ll be responsible not just for the welfare of your family but also for the livelihood of your own employees?

So, before taking the plunge, test the water first.

If you only want extra income , don’t resign from your job and look for a part-time job instead. But if you want complete control of your destiny, then it’s time to plan your exit. It doesn’t matter if you take baby steps; what’s important is you carefully weigh the risks and rewards and then make a decision based on your own judgment.

If you get discouraged, look at yourself in the mirror and ask the big “Why?”

As long as you know your purpose for starting a business, you can weather any challenges that life may throw at you.

Step 2: Understand What It Takes To Succeed in Entrepreneurship

You don’t need an MBA to start a profitable business in the Philippines.

However, life-long learning is at the core of successful entrepreneurship. You learn best from your own failures and the mistakes of those who came before you.

Another way to hone your knowledge is to take free or paid training courses designed for beginners. For example, the Philippine Trade Training Center (PTTC) and the U.P. Institute for Small-Scale Industries offer “start your own business” programs that will teach you basic principles of running a business.

We also recommend the following training centers/courses:

• Businessmaker Academy (1503A West Tower, Philippine Stock Exchange Building, Exchange Road, Ortigas Center, Pasig City).
• TESDA Online Entrepreneurship Training Program .
• Ultima EntrePinoy Center for meat processing, baking, and other food business courses (Nutrition Foundation of the Philippines Building, 107 E. Rodriguez Sr. Ave., Quezon City).
• Department of Trade and Industry Negosyo Center – Seminars and Workshops .

Entrepreneurial success takes more than just technical knowledge. Your business can only grow to the extent that you do . Hence, it’s important to also invest in personal development if you want your small enterprise to prosper.

According to Management Systems International 2 , there are attributes common among successful entrepreneurs that led them to the success they have today. These characteristics can be grouped into three clusters–Achievement, Planning, and Power.

Achievement cluster

• Opportunity-seeking – the ability to see opportunities and seize them as they come. For example, when people from your hometown are craving for donuts and there’s no single donut store that has been put up yet, will you be quick to act on this opportunity? An opportunity-seeking business person certainly would.
• Persistence – a trait that will allow you to stick to your vision even in the face of criticisms and failures.
• Commitment to contract – which means getting the job done on time and honoring your promises without any excuses.
• Risk-taking – or more specifically, taking calculated risks to minimize potential losses. A good business person doesn’t just invest in any venture without carefully studying the market and identifying flaws in the business model.
• Demand for quality and efficiency – a characteristic of great entrepreneurs who uphold excellence in everything they do and don’t just settle in a “puwede na ‘yan” attitude.

Planning cluster

• Goal-setting – a skill that enables you to clearly define your goals and withstand the pressures and struggles of today in the name of achieving these goals.
• Information-seeking – a quality you need in order to come up with informed decisions and calculated risks. When the future of your business is at stake, you gather only the best information from all the best sources–suppliers, experts, competitors, banks, and even government agencies.
• Systematic planning and monitoring – while planning gives you the opportunity to choose the right supplies, manpower, and materials to achieve your goals, monitoring allows you to fine-tune your plan to bring you closer to achieving your goals.

Power cluster

• Persuasion and networking – if you know how to leverage the power of persuasion, you can literally make everything you want to go in your favor: from persuading the bank to give you a loan to convincing your buyers that your product is worth a try.
• Self-confidence – if you don’t believe in yourself and your ideas, then no one else will. You can’t succeed in any undertaking if you have a deflated ego. Believe in your dreams and everything else will follow.

Step 3: Come Up With a Business Idea

Every successful business starts with one idea.

The problem, however, is many people think that a million-peso idea only shows up in a select few; it’s either you have it or you don’t.

While it’s true that some successful entrepreneurs got their ideas by accident, they are exceptions rather than the rule. For most of us, a winning business idea won’t magically fall into our laps so we have to look for it ourselves.

To start generating a list of business ideas, ask yourself the following questions:

What are the things you’re interested in?

Running a business can be tedious in the long run so you might as well choose a business that is in line with your interests.

Don’t worry if the idea has already been taken. Your goal, after all, is not to be original but to explore an already existing idea you’re interested in, turn it on its head, and make it better than what’s already out there.

Instead of trying too hard to be original, find ways to dominate an already existing market by offering better, cheaper, or faster products or solutions.

Do you have pain points in your life or problems that bother you that you wish could be solved?

Famous entrepreneur and Internet personality Gary Vaynerchuk believes that the best way to find the next great business idea is to stop looking 3 .

Instead, go through the daily grind of life with an open mind so that you can zero in on things that bother you when you encounter them. Chances are, you’re not the only one experiencing the same problem so if you figure out how to fix it, then you have a potential business idea.

The key here is to always have a problem-first approach; after all, the world doesn’t need more products but more solutions to their everyday problems .

What are your core skills or the skills you’ve developed?

You’re more likely to succeed in a business if you have the experience, knowledge, and skills that it demands.

Look back at your employment history and note the skills you’ve developed over the years that you’re both naturally good at and you enjoy doing. These can provide clues on what kind of business to pursue.

And we’re not just talking about skills that you’ve developed in your previous jobs; those that you’ve learned outside work are equally important and perhaps more reliable in helping you figure out what business to try. Since you enjoy doing them without any incentive to motivate you, then you can potentially turn it into a business you’ll never get bored doing.

What businesses are currently booming/trending?

First of all, there’s a difference between a business fad and a business trend. Whereas a business fad enjoys initial hype but proves to be short-lived, a business trend lasts longer as the consumers don’t easily lose interest in the product/service.

Apparently, your focus should be on the trending businesses because more people doing it means the idea is very profitable. In the Philippines, trending business ideas fall in any of these three categories: Food, online, or service.

Food businesses either focus on food manufacturing (i.e., creating your own products from scratch like what Eng Bee Tin did and other big names with humble beginnings in their founders’ own kitchens) or food trading which involves selling ready-made or frozen products like siomai, shawarma, etc.

Online home-based businesses are mostly done by professionals who sell their services instead of tangible products. These include virtual assistants, freelance writers, social media managers, bloggers, bookkeepers, graphic artists, and many more.

Last on the list are businesses in the service industry that are now thriving as more and more people become busier. Some of the best examples are laundry businesses , transportation/delivery services, pet grooming businesses, photography businesses, and wedding and events coordination businesses, among others.

In addition to asking yourself the above questions, you can further increase the number of business ideas you generate by reading this article: 100+ Best Small Business Ideas in the Philippine with High Profit.

Step 4: Conduct Market Research

Starting a business without doing market research is akin to entering an unfamiliar territory without any map to guide you.

But what exactly can you achieve with market research? The answer is knowledge. A wealth of information and insights about who and where your customers and buyers are; when they’re most likely to buy or use your product/service; who your competitors are; and how big is the potential market demand for the product/service you’re currently developing.

In other words, everything that can help your business start off on the right foot.

This step has three components:

• Market segmentation;
• Market research;
• Competitor analysis.

To begin your research, you have to know first that your business doesn’t necessarily need to appeal to everyone . It’s easier to focus on one segment of the market first and then expand later on.

In order to find this target market, you need to divide the general market into smaller subgroups. Also known as market segmentation, this process involves grouping the market according to location, demographics, behavior, or other variables that make sense for your business.

Let’s say you’re planning to develop and sell a mobile phone. You can find your market either at shopping malls or online shopping sites where mobile phones are being sold.

Through market segmentation, you can divide this market into different groups according to their motivations in buying a mobile phone. There are the housewives who only need phones with the most basic features since they’re only using them to call their loved ones; the students who look for phones with cameras and other features that will help them with their studies; the yuppies who prefer phones with a flashy look and more features to meet their professional needs; and so on and so forth.

Another example would be a business that will manufacture its own soap. There’s a huge market for soap but what type of soap exactly?

With the use of market segmentation, you’ll be able to identify different segments of the market with varying demands for a specific type of soap. There are the buyers who want to achieve whiter skin; people with sensitive skin who want to get rid of their pimples; people who just want a skin-friendly moisturizing soap; those who want scented soaps; people who prefer herbal soaps; etc.

After segmenting the market, it will be easier for you to figure out which specific group or type of buyers will be the target of your marketing efforts.

Once you’ve identified your target market, it’s time to put it under the microscope and get to know your prospective customers a little bit better.

This is when the market research comes into the picture. You employ tools and techniques to reach out to your target market and discover what makes them tick.

And if the sound of “market research” intimidates you, don’t worry. Although big companies require an equally big budget to recruit a huge number of respondents for their market research, small entrepreneurs can also gain access to a wealth of valuable information about their target markets without breaking the bank.

The following are the most common techniques you can use to conduct low-cost market research:

1. Survey – is the old-school way of collecting data from a sample group that is assumed to be the representative of the whole. You can use this method to learn what people think about the products currently available in the market and how you can create a better one in terms of quality and price.

Just make sure the survey participants are neither your friends nor relatives because of the biased opinions they tend to provide.

The questions in the survey should explore the factors the respondents consider when buying; what they like or dislike about the current products in the market; the kind of improvements they would like to see; and the price of the product that is reasonable for them.

2. Observation – is probably the crudest form of market research but one that remains effective nonetheless.

It can be in the form of contextual observation where the entrepreneur pays close attention to a sample of the target market as they use or experience a certain product or service. Other entrepreneurs take matters into their own hands and do a mock journey where they put themselves in the consumers’ shoes by buying and using the product/service themselves.

3. Prototyping – known in layman’s terms as simply “taste test” or “sampling”, this method allows the entrepreneurs to put their minimum viable product (or the early version of their product, warts and all) out there and use the customers’ feedback to further improve the said product as they go along.

Market research is a critical part of your initial entrepreneurial journey as it will help you realize whether there’s a demand for your product or not and if there is, who is most likely to buy it, how many they are, where they’re located, and how you can promote your business to them.

It will also identify both your direct (i.e., businesses selling the same product/service) and indirect competitors (i.e., businesses selling different products/services but are in the same category as you).

Speaking of competitors, the competitor analysis is just as, if not more, important than the market research itself.

Not finding time to learn more about your competitors, what they offer, and how much they cost will put your business on the losing end. This is because competitive analysis helps you discover ways to give your business a competitive advantage which will effectively prevent your target market from choosing others over yours.

Aside from collecting and analyzing available data about your competition, you can also go the extra mile and buy your competitor’s products to test them yourself. This way, you can once again put yourself in the customer’s shoes and gain ideas on how you can improve their experience through a product that only your business can provide.

Step 5: Decide Who Will Run the Business

Most starting entrepreneurs build their businesses on their own as a single proprietorship. However, entrepreneurship can be a lonely endeavor so there’s nothing wrong with starting a business with a partner or a group of people.

The following are the different types of business according to ownership and the pros and cons of each to help you decide which path to take:

• Single proprietorship – is the most basic type of business wherein you basically run the whole show. While it’s easier to set up and you’re free from outside interference, this type of business is also the most demanding and puts you at high risk for burnout. The growth of your company is also limited by your financial means.
• Partnership – a business owned by at least two parties, this is also relatively easier to set up than a corporation and has the advantage of having the check and balance maintained by the co-owners. Businesses under a partnership tend to grow faster than sole proprietorship since there is more than one investor. However, more owners mean more chances of having a conflict.
• Corporation – is a business run by at least five people. Like a partnership, a corporation can also grow faster because of the number of shareholders and is also highly flexible because all the owners can share the responsibilities. The downside is corporations are taxed more than sole proprietors, more difficult to set up, and have a tendency to institutionalize a bureaucracy.

To help you further in deciding which type of business structure to pursue, I recommend reading this section in our business registration guide . It contains crucial information on how to choose the right business structure based on your intention, risk appetite, capacity to raise capital, and other factors.

Step 6: Write a Business Plan

Ever heard of the saying “if you’re failing to plan, you’re planning to fail?” Nothing can prove this better than starting a business where your own (or your investors’) hard-earned money is on the line.

This is why writing a business plan is crucial regardless of the size of the business you’re planning to start.

A business plan is a document that will show how your business will evolve from start to finish . It offers a closer look into your business model and helps identify any loopholes in its profitability, thereby giving you a clearer picture of whether the business is worth pursuing or not.

Specifically, a business plan will help you accomplish the following:

• Prevent or eliminate the risk of losing money invested in businesses that are proven to be lacking in demand.
• Reduce total expenses that would not have been possible without a business plan to help you examine details that are easily overlooked. Remember, every peso counts when you’re starting a business in the Philippines so you don’t want it to be wasted on something not essential.
• Establish a healthy cash flow for your business especially during the lean and peak months. Cash is king when it comes to running a business for without it you’ll always be on the verge of bankruptcy . Through a business plan, you can create a contingency plan to make sure your business will stay afloat when the demand slows down and will be prepared enough to handle increased demands during peak seasons.
• Set goals in terms of the total number of sales, revenues, or expenses and measure the actual performance of your business against these set goals.
• Convince investors or lending institutions to lend you money to start your business. No sane person will easily hand you the capital for your business unless you can provide a well-thought-out business plan containing details on how the business will work and earn back the initial investment.

If you truly know your business inside out, it’s not that hard to write your own business plan. The more complicated and larger the business, the more pages the business plan would require.

Should you need assistance in writing a business plan, you may approach the following people/institutions:

• SME Counselors from the Department of Trade and Industry (DTI);
• Freelance consultants who charge lower fees than consulting firms because they don’t deal with big overhead expenses;
• Accountants/bookkeepers;
• Business professors;
• Extension offices of business schools like Baguio’s St. Louis University Extension Institute for Small-Scale Industries.

As for the content of the business plan, it must depend on what kind of enterprise you’re planning to start. No two businesses are alike so the business plan should be written according to the uniqueness and conditions of your business.

In general, however, the following sections are considered basic components of a good business plan:

• Title page – contains the name of your business and other basic details of your enterprise.
• Executive Summary – provides an overview of what the company or business idea is all about, the problem the business is going to solve, the solution your business will provide, and how it will fit into the marketplace. This section will give investors an idea of whether to invest or not so make sure to leave a great first impression.
• Business description – explains the type of business you’re planning to start, the industry it belongs to, and what it will look like in the future.
• Market strategies – describe how big the market you’re trying to penetrate, who your target market is, and how you plan to sell to this market.
• Competitive analysis – explores who your competitors are, their strengths and weaknesses, and how your business stack up against them. Essentially, this section shows what makes your business different from everybody and how you’re going to use this to beat your competitors.
• Design and development plan – determines what exactly is your product or service and how you will develop it over the short term, medium-term, and long term.
• Operations and management plan – describes how a day in your business will look like.
• Financial plan – discusses in detail where the money to fund your business will come from and whether it will be self-funded or financed by outside investors. It also covers the projections you should create and what factors you should take into consideration; how much financing you need to start the business; how long it will take to pay back the investments (ROI); how will the ownership be divided, if applicable; and your backup plans in case profits or the demand for your business dries up.

When writing your business plan, keep in mind that nothing is final. It’s a living, breathing document that you can update every now and then as your business evolves.

Step 7: Build Your Product/Service

Now that you have a business plan, you can start developing your minimum viable product. This is the earliest version of your product that you’ll introduce to your target buyers. You’ll then use their feedback in order to improve the product prior to mass production.

Even if you’re a perfectionist, it’s virtually impossible to create the perfect product or service right off the bat. So instead of succumbing to analysis paralysis, just release the first batch of your product into the wild and let the feedback dictate what changes you need to make.

Whether you’re planning to sell handicrafts, homemade cakes, or something more complicated, there are important aspects of product development you just can’t afford to take for granted. These are the following:

1. Process . Review the different steps that it will take to create your product. Are all of these steps necessary or can you remove some of them to save on costs without sacrificing product quality? What are tools and equipment will you need and how many skilled workers are needed to operate them?

2. Machines and equipment . Determine the things you’ll need to create your product, how much they are, and where are the best places that offer quality products at a minimal cost.

There are also some considerations to make depending on what type of business you’re going to start. Whereas a simple crafts business may only require hand tools and inexpensive machines, an Internet café will require specific computers with features that are completely different from those intended for personal use.

3. Materials . Know where and how you’ll get the materials you need as they will determine the pricing and eventually the profitability of the finished product.

For example, if your supplier is far from your business plant or location, and the transport facilities in the said place are limited, it will not only result in production delays but also additional manufacturing costs that will then jack up the price of the product.

However, it doesn’t mean you should just settle for the cheapest materials. Remember, don’t make a final decision based on price alone 4 as the reputation of your business is on the line.

To find the best deal, you can search online, get industry recommendations, or attend trade shows, among others.

4. Design . The product and the packaging must be able to get someone’s attention within the first few seconds of him/her glancing at them. The packaging should have a clean design, legible text, and clear branding that people recognize even from several feet away.

5. Pricing . Determine a reasonable price for your product/service by factoring in all the overhead costs. Make sure you have a good profit margin otherwise you may need to reduce the manufacturing costs (instead of increasing the product’s price) in order come up with a price that doesn’t turn off buyers.

The price of the product is also determined by the marketplace; if similar products are within a certain price range, then your product’s price should not veer off too much away from it if you want to capture the same market.

6. Trademark filing . Protect your business from copycats through trademark registration. You can either do it by yourself via the Intellectual Property Office of the Philippines (IPOPHL) website or hire a trademark lawyer to handle all the paperwork on your behalf.

Step 8: Get Feedback for Your Product

In the process of developing our product, we tend to be blinded by our own awesomeness that we forget what actually matters to those who will buy it. This is when feedback becomes very valuable.

Even if you’re only selling a humble kakanin , customer feedback will spell the difference between a profitable business and one that won’t earn repeat buyers.

Your aim is to get honest feedback from actual buyers (a.k.a strangers and not your close friends/relatives) so it won’t hurt if you offer free or discounted products in the beginning.

If you’re selling clothing items, on the other hand, you can sell beta versions of your products in small batches at first and let the customers order through your social media or website. These first few buyers can get your products at a discounted price in exchange for their feedback on the fabric, color, fit, comfort, and other areas of improvement of your product. Done right, these early adopters may turn out to be your first few brand advocates later on.

Through the strategy discussed above, you can get the product to your prospective customers’ hands faster instead of aiming for perfection that can never be attained, especially sans buyer feedback.

This principle, also known as Lean Startup 5 , can be applied to most businesses but most especially to startups that can’t afford to have a long incubation period for their products. Instead of being held back by perfectionism, they push out the early version of their products to the market in order to get that coveted feedback that will then propel those products into a series of improvements.

When collecting feedback from your prospective customers/buyers, remember these tips:

• Be thankful for the feedback regardless is it’s a positive or a negative one. This gesture will not only earn you their respect but also encourage them to continue providing honest opinions which you need the most.
• Dig a little bit deeper to learn what the negative feedback is all about. If someone doesn’t like your product, he or she is most likely referring to one aspect of the product and not its entirety. Ask questions to figure out whether to improve a specific flaw or just scrap the whole idea altogether.
• Look for patterns or the same comments given over and over again. Your customers know what’s best for them so if they’re specifically pointing out the same complaints, then address them as soon as you can before mass-producing your products.

Step 9: Look for Funding

Regardless of the size of your enterprise, you need money to get it started.

If you’re only selling home-cooked meals or desserts, you probably don’t need as much capital and you can start with whatever money is left in your savings account. No need to borrow money since you can get all or a portion of your profit and then reinvest it into your fledgling home-based business.

The same can’t be said for startups or huge businesses like restaurants that require large upfront capital. Aside from your personal savings, you may also need to go through several rounds of investing in order to get the business off the ground.

Here’s a list of different financing options in the Philippines you may consider to raise funds for your budding business:

1. Your own money. Using your life savings or proceeds from the sale of your personal assets is the safest way to finance your business. Since the money will come out of your pocket, you’ll be more in control of your destiny and retain 100% of your equity.

2. Friends and family. If your own money isn’t enough to raise the needed capital, you may also turn to your well-off friends and relatives with enough cash reserves. The advantage of borrowing from them is you’ll get relatively lower interest rates and more flexible payment terms compared to bank loans.

However, if you still fail to raise the needed funds after exhausting your own savings and borrowing money from friends and/or relatives, then it’s time to consider outside sources.

3. Government financing programs . The Philippine government is aware that small businesses are the backbone of the economy so they have established loan/credit programs to support our entrepreneurs.

Financial assistance is offered by different government agencies which include, but are not limited to, the following:

• Department of Science and Technology (DOST) and the Technology Resource Center which offer financing program for small businesses that are technology-related;
• Department of Agriculture ‘s Agri-Microfinance Program or AMP which is designed to provide financial relief to farmers and fishermen (and their families) in drought- or calamity-stricken areas;
• Department of Social Welfare and Development ‘s Sustainable Livelihood Program or SLP which seeks to improve the welfare and development of marginalized families through livelihood strategies.

For a comprehensive list of banks and government offices that offer financing programs for micro, small, and medium enterprises, you can check out the free ebook 6 published by the Bureau of Micro, Small, and Medium Enterprise Development (BMSMED) in collaboration with DTI.

The Philippine government-owned LandBank of the Philippines also offers lending programs 7 for those who are involved in the agricultural industry. These are the following:

• Cacao 100 (Credit Assistance for Cacao Agri-Business and other Organizations) – offers loan assistance to farmers and entrepreneurs with the main goal of catalyzing the growth of cacao output in the Philippines. This is a good choice if you’re looking to fund your cacao nursery, cacao plantation, and all the processes involved in cacao beans processing.
• Agricultural Credit Support Project (ACSP) – suitable for agri-businesses needing additional funding to support increased production or business expansion. This is ideal for entrepreneurs who are seeking financing for their fisheries, farm equipment, agriculture-related services, and agricultural product distribution.
• KAWAYAN ( Kalikasang Kabuhayan para sa Wastong Pamayanan ) – this program provides financial assistance for farmers, LGUs, and entrepreneurs who have businesses involving bamboo nursery, bamboo plantation, trading, and eco-tourism.
• ISDA (Integrated Support for the Development of Aquaculture) – is a program established to help small fishers as well as small and medium enterprises.

For more information about LandBank’s lending programs, you may contact their customer care center at (02) 405-7000, visit the nearest LandBank Lending Center, or send an email to [email protected]

4. Angel investors or Venture Capital investors . Another alternative source of funding is individuals or groups of individuals who already have the intent to invest.

Angel investors are established and wealthy individuals who use their personal money to invest in their chosen startups. The Angel Investment Network is a great online platform that enables you to find individual investors in the Philippines who can relate to the vision of your company.

Venture capital firms like Kickstart Ventures , on the other hand, is composed of a group of professional investors that pool together all the money coming from individuals, corporations, foundations, and pension funds and then invest them to startups of their choice, the majority of which are businesses dealing with technology and science.

5. Startup incubator or accelerator . The thriving local ecosystem has prompted the launch of several startup incubators and accelerators, most notable of which are the IdeaSpace Foundation, Launchgarage Inc., and QBO Innovation Hub, among others 8 .

The goal of these companies is to provide support to startups (mostly technology or fintech companies) in the form of office facilities, consulting, pitch events and equity-free seed funding that will help get their enterprises off the ground.

6. Banks . There are SME-friendly banks that lend money to entrepreneurs despite the risks associated with small businesses. Just make sure you comply with their requirements and show enough proof (including a business plan) that you have a clear vision for the business you’re going to start.

Examples of local banks known for supporting small businesses include the government-owned LandBank of the Philippines, the Development Bank of the Philippines, Metropolitan Bank and Trust Company, and the Planters Development Bank.

Related: Best Banks in the Philippines

7. Pitching competitions . Early-stage businesses can also get funding by joining televised pitching competitions like The Final Pitch and the upcoming reality show “Project GO” 9 sponsored by GoDaddy Inc. and to be aired on AXN.

These reality shows will require qualified contestants to pitch their business ideas in front of a panel of esteemed Filipino business experts and investors (think Shark Tank ). Since they’re joining a reality show, investment decisions will not be made unless the entrepreneurs go through a series of entertaining challenges first.

Prizes for winning contestants may be in the form of funding in exchange for partial ownership of their businesses or equity-free funding to help jump-start their ventures.

8. Other sources of financing . Small business owners can also consider the following when seeking credit assistance:

• Pawnshops – the ideal choice if you’re only looking for quick cash. You can get the money you need by pawing your jewelry, gadget, or other valuables and then pay back the amount along with incurred interest.
• Credit cooperatives – popular especially in rural areas, the credit coop can lend you an amount up to five times bigger than what you initially deposited when you joined. Unlike banks, credit coops charge a significantly lower interest rate for your loan.
• Lending investors – a cross between banks and money lenders, these companies offer short-term loans to small enterprises with interest rates of usually 3% to 5% a month–higher than those offered by banks but lower than those charged by money lenders.

Step 10: Formulate Marketing Strategies

In a nutshell, marketing strategies refer to how you’re going to convince or influence your target market to buy your product or services.

Your marketing strategies can be summarized into four key components. Let’s go over them one by one.

1. Product strategies – revolve around the product itself and how it will be perceived by your target market. It starts with good branding which is the design, reputation, name, logo, or a combination of these that make your product or service different from other similar products/services in the market. Consistent branding must also be present in the product’s packaging and labeling.

However, an excellent product can only go so far; you also need to invest in product support which is a catch-all term for all warranty, delivery, installation, and other services that come with the purchase of the product.

2. Place strategies – focus on how you want to bring your product or services to your target market. Depending on your business, you can use traditional or modern distribution channels (or even both).

Traditional distribution channels exist in the form of kiosks and brick-and-mortar stores where face-to-face interaction between the buyer and seller can cultivate a long-term buying relationship. New distribution channels, meanwhile, are those that don’t necessarily require an in-person interaction since the transaction can easily be completed via phone or the Internet.

Your choice of distribution channels depends on your target market’s preference and behavior, competition, as well as the current state of the market (think the 2020 pandemic that has forced restaurants and a lot of businesses to shift to e-commerce).

3. Price strategies – cover everything that concerns the price tag for your product.

How you price your product can make or break your business. Therefore, ensure you price your product or service in a way that will keep your business profitable while meeting the needs of the target market.

To come up with a price, there are three factors you have to consider. First is the cost of making the product or service you’re selling. You can add the total cost you incurred in producing your product and then divide it by the total number of the products to determine the unit cost.

For example, if you spent Php 1,500 to bake 100 chocolate cookies, the unit cost would be Php 15 (1,500/100). As for the selling price, you need to add a markup which is a percentage of the unit cost that you think when added will sufficiently cover the direct (i.e., materials, labor, etc.) and overhead costs. Say the markup is 20%, and 20% of Php 15 is 3, then the selling price is Php 18 (15 + 3).

The second factor you have to consider is the competition. You will use the price they have set for a similar product/service as a benchmark when determining the price of your own. You may either go higher to make the target market perceive what you’re offering as higher in quality or lower to make an introductory offer and in so doing gain your first few fans.

Lastly, the current demand for the product/service you’re selling can also determine the selling price. Simply put, the higher the demand for the product that only a few businesses are offering, the higher the selling price becomes. Conversely, the lower the demand for a product with plenty of supply, the lower the price will be.

4. Promotion strategies – make up the core of your marketing strategies since these cover all the tools and channels you’ll use to reach out to your target market.

Remember that whether you’re using Internet ads or television commercials to promote your business, it’s important to convey your message in a way that resonates with your prospective buyers.

To do this, you must focus on highlighting the benefits and not the features of the products. People won’t care how many advanced technologies you’ve used to produce your product unless it offers solutions to their problems. If you’ve studied your market well, then you should know by now what keeps these people awake at night and how your product can address this.

Step 11: Register Your Business

Now that you’re a few steps away from launching your own business, it’s time to legitimize it by securing all the required permits and registration documents.

Whether your business is a sole proprietorship, partnership, or corporation, you’re required by the government to register it. Doing so will allow your business to be legal in the eyes of the law, file tax returns, apply for government loans, and avoid incurring penalties.

The process of business registration in the Philippines can be long and frustrating. Fortunately, we’ve covered all the basics and condensed them into one easy-to-follow business registration guide in the Philippines .

Step 12: Find a Strategic Location

Choose the right location for your retail business and you already have the battle half-won. But how do you pick a great location? Here are some guidelines you need to follow:

• It should be near the source of raw materials. The main reason why some products are priced ridiculously high is that it costs a lot for the raw materials to be delivered to the business location. Therefore, putting up a business near the source of the raw materials (e.g., sugar millers near sugarcane plantation, food processors near fruit/vegetable farm) will bring the transport cost down and in so doing make the product price more affordable for the consumers.
• It should be where the market is. In the same way that you save on transport costs by placing your business near the source of your raw materials, you should also make sure that the business is near and accessible for people you intend to serve. If the target market exists within the vicinity of your own home, much better since you can start a home-based business and save on rental fees.
• It should be accessible to your employees and customers. Foot traffic is the lifeblood of brick-and-mortar businesses so make sure the place where you’ll establish your store is easy to find, has plenty of public transport, and has available parking spaces for everyone. This strategic location will benefit not just your customers but also your current and future employees. A business near a good source of skilled labor won’t have a hard time finding new employees should the need arises and will also save on accommodation costs since they’re within the commuting distance of the business.
• It must be in a place with a reliable and adequate supply of power, water, and Internet services . Even the slightest disruption in any of the aforementioned utilities can drastically affect your daily business operations so make sure you choose a location with an established infrastructure. If you’ll be renting a place, verify beforehand if the utilities are included in the lease so you won’t be caught off guard by any hidden charges.
• It should be in a safe and peaceful environment. Building a business in a neighborhood notorious for looting and other forms of violence is a huge risk you can’t afford to take especially if you’re a first-time entrepreneur. Pick a place where established businesses have been thriving for decades and whose residents have high purchasing power. You also need to ensure that your business will comply with existing ordinances and zoning restrictions in your chosen community.
• It must be in a decent and pleasant place. You don’t want to start a business in an environment that will drive prospective customers away so make sure to check the place for the presence of disagreeable things like smoke, noise, foul odors, dust, as well as proximity to places like bars and pub houses (unless your businesses are bars and pub houses).
• It should be where a moderate number of your competitors are operating . The presence of competition can either be a good thing or not. If the place is full of competing stores placed one after another, it may be more difficult to stand out and penetrate the market. On the contrary, the absence of any competitor may be a telltale sign that the place is bad for business, especially if it has a history of similar businesses closing down or going bankrupt. In most cases, however, establishing your business beside one or two competitors can actually be a good thing since the presence of similar businesses in one place will attract more foot traffic.

Step 13: Form Your Dream Team

A business won’t run by itself. It needs people to complete its daily operations.

As a business owner, it’s your responsibility to find and choose the right employees to join your dream team. If you own a retail business, the rule of thumb is to hire people who are highly approachable and have a positive attitude. A grumpy Debbi Downer is a liability that will cost you a lot of loyal customers.

Once you’ve found the right people, it’s time to train them well and incentivize them to do their best work consistently. In order to keep your employees motivated and committed to their jobs, not only should you pay them right but also treat them with the same respect and kindness you’d want to receive if you’re the employee.

Should you need assistance in providing technical training for your staff, the government can help you through various programs offered by the Technical Education Development Authority (TESDA), the Technology Resource Center (TRC), and the Department of Science and Technology (DOST).

When it comes to employees’ rights, there are a few important things you have to keep in mind to ensure you’ll be in good terms with your employees:

• All employees, male or female, are entitled to equal compensation and work opportunities. Discrimination is not allowed in any way or form so you should not do unacceptable things like not hiring a woman just because she’s married or firing an employee just because she got pregnant.
• Every employee should be assured security of tenure. You can’t dismiss an employee unless it’s due to a just or authorized cause. Termination can only be done after observing due process.
• Employees are normally required to work for 8 hours a day . This 8-hour period already includes rest periods of less than an hour but excludes meal periods of at least one hour.
• Employees are entitled to get a rest day after not more than 6 consecutive workdays. They can also file different types of leaves to take a break from work. These include the five-day Service Incentive Leave (SIL) with pay which can be availed by the employee after a year of service in the company; Maternity Leave which is granted to qualified female SSS members in anticipation of childbirth or due to abortion or miscarriage; and the seven-day Paternity Leave with pay for the male spouse of a woman who is about to give birth or has suffered from a miscarriage.
• Employees must be paid the right wage commensurate to the amount of work rendered as well as wage-related benefits like accommodation, overtime, rest day, night differential, 13th-month pay , and holiday.
• Employees deserve to be protected from any injury, sickness, or death through a safe working environment .
• All employees have a right to join or form a legitimate worker’s organization or labor union without the employer’s interference. These groups are established for the purpose of upholding their rights as workers and doing collective bargaining. For instance, workers can be represented by these organizations in tripartite decision-making involving them, the government, and the employers’ organizations. This way, they can have their voices heard in matters concerning workers’ wages and labor disputes.

Step 14: Purchase All the Needed Equipment and Supplies

Some businesses can get by with just manual labor. However, for those that invest in machines and equipment, the increase in business productivity and profitability can be phenomenal if done right.

Therefore, you have to apply the same meticulousness in selecting the supplies, machines, and equipment needed to produce your product. Follow these proven tips before making a purchasing decision:

• Have a clear idea of what you want to buy before heading to the store/supplier. Know the specific needs of your business, the kind of machine/equipment that can meet these needs, and all the engineering features and operating characteristics you’re looking for. This way, you can cut down on shopping time and simply go straight to comparing only the products that meet all your criteria.
• Shop around and don’t settle with the first supplier that you come across no matter how great it is. Instead, get information on each supplier that sells the machine/equipment you’re looking for and judge them one by one in terms of reliability, price, warranty, payment terms, delivery, installation service, maintenance, etc. Just because the product is the cheapest doesn’t mean it’s also the best; multiple factors will determine which one suits your business best.
• Choose excellent machine/equipment that is within your price range . Remember, it’s an expensive investment so make sure you have done your assignment of comparing the cost of each machine/equipment that you’ve shortlisted based on their fuel efficiency, capacity, and other technical matters. Alternatively, you can lease or buy a second-hand machine/equipment so you won’t have to spend more money on a new one.

Step 15: Launch Your Business

And there you have it: You are now ready to start your own business. Although this article has only covered the basic details of jumping into entrepreneurship, it should be enough to get you started.

Remember, it’s not unusual for first-time entrepreneurs to make mistakes in their first ventures but the lessons from these mistakes are what will propel you forward as you learn more about your business.

Entrepreneurship is not just about earning big bucks. It’s also about generating job opportunities that will help a lot of families. As an entrepreneur, you’ll be serving not just yourself but also the community around you.

Regardless of the outcome, consider this journey as a launching pad to greater things. And if there’s one thing that owning a business can teach you, it’s the truth that learning doesn’t stop.

So keep learning and have faith both in God and in yourself. Who knows? Your greatest breakthrough may be just around the corner.

• Bureau of Small and Medium Enterprise Development (BSMED). (2015).  Your Guide to Starting a Small Enterprise  [Ebook]. Retrieved from https://www.dti.gov.ph/resources/e-library/business/starting-a-business/guide-in-starting-a-business-enterprise/
• Bureau of Small and Medium Enterprise Development (BSMED). (2015).  Do You Want to Go Into Business?  [Ebook]. Retrieved from https://www.dti.gov.ph/resources/e-library/business/starting-a-business/guide-in-starting-a-business-enterprise/
• Entrepreneur.com. (2017).  Need a Business Idea? The Best Way to Find One Is to Stop Looking.  [Video]. Retrieved from https://www.entrepreneur.com/video/295451
• Goodman, M. (2015). The 7 Steps of Effective Product Development. Retrieved 10 August 2020, from https://www.entrepreneur.com/article/244616
• The Lean Startup Methodology. Retrieved 12 August 2020, from http://theleanstartup.com/principles
• Bureau of Micro, Small and Medium Enterprise Development (BMSMED). (2012).  Financing Programs for Micro, Small, and Medium Enterprises (MSMEs)  [Ebook].
• Summit Publishing Co. Inc. (2015).  52 Inspiring Success Stories: Breakthrough Ideas for the Aspiring Entrepreneur  (pp. 7-9). Mandaluyong City.
• Noda, T. (2018). 10 Notable Incubators and Accelerators In The Philippines. Retrieved 14 August 2020, from https://fintechnews.sg/22610/fintechphilippines/incubators-accelerators-in-the-philippines/
• GoDaddy, AXN launch reality show to jumpstart ventures of Filipino entrepreneurs. (2020). Retrieved 14 August 2020, from https://mb.com.ph/2020/08/12/godaddy-axn-launch-reality-show-to-jumpstart-ventures-of-filipino-entrepreneurs/

Written by Luisito Batongbakal Jr.

in Business and Finance , Juander How

Last Updated March 31, 2022 07:11 PM

Luisito Batongbakal Jr.

Luisito E. Batongbakal Jr. is the founder, editor, and chief content strategist of FilipiKnow, a leading online portal for free educational, Filipino-centric content. His curiosity and passion for learning have helped millions of Filipinos around the world get access to free insightful and practical information at the touch of their fingertips. With him at the helm, FilipiKnow has won numerous awards including the Top 10 Emerging Influential Blogs 2013, the 2015 Globe Tatt Awards, and the 2015 Philippine Bloggys Awards.

Browse all articles written by Luisito Batongbakal Jr.

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Business Tips Philippines: Business Owners and Entrepreneurs’ Guide

Business Tips Philippines, an online entrepreneurship, management & marketing guide for Filipinos, business owners, leaders & entrepreneurs around the world.

Top 10 Free Business Plan Templates for Startups

October 25, 2017 Businesstips Leave a Comment

Planning is considered such an important stage before the actual implementation. This also applies when it comes to starting a business venture. Especially for new entrepreneurs who are in need of gathering some investors into the business, a business plan can either assure fresh capital injection or drive away the potential funding. In order to get the first result, business plans must be made as tempting as the real deal. It has got to rhyme with the word success! Surely, creating one is not that easy, but with the right guidance, it is not impossible.

Thanks to the sophistication of technology, a lot of useful things are shared on the Internet. In this case, some of those handy things are business plan templates which can be downloaded at no cost.

Established as a non-profit site to assist the bloom of new businesses, it provides downloadable business plan templates in both PDF and Word formats. To get started, the user is going to be asked to answer 150 generic questions about their business. The plan will then be customized accordingly. They also provide a sales forecasting template, competitive analysis charts to determine your business’ strengths and weaknesses, and financial planning templates such as startup expenses, profit and loss projections, and financial statements.

2. Small Business Administration

Those who have limited time and have not gathered all the information needed to create a business plan may fancy this online assistance. The reason is that it is okay if the whole template cannot be filled out all at once. It even provides the possibility of going through the template several times before the plan is finally produced. There are six business plan sections to choose from (Executive Summary, Company Description, Market Research, Product/Service Line, Marketing and Sales, Financial Projections).

3. The $100 Startup

This site matches the book content of the same name. Instead of creating a long business plan, the platform offers a simpler version with additional plan details which are put into appendices. Considering the popularity of the best selling book, business plans of this version appear to be accepted by quite a lot of people. Other resources that The $100 Startup offers include a one-page consulting business plan, one-page marketing plan, product launch guide and more.

4. LawDepot

The good thing about it is that it does not ask as many questions and it offers guidance that covers the essence of planning a business venture: how to start the business, the competitive nature of a product, marketing, the analysis of strengths, weaknesses, opportunities and threats (or the so-called SWOT) and other significant elements. It should be noted, though, that the free trial period is only for a week.

5. SME Toolkit

For those who like simplicity and functionality, the template produced from this specific platform may match their preference. The outline of the plan is only two pages’ long, which consists of ten different sections (regarding the company and its management, market analysis, etc), each of which is described in one paragraph. The outline comes with financial Excel sheets which comply with the America’s tax regulations.

6. Entrepreneur.com

Entrepreneur.com provides business tools, with a collection of business plans free in PDF, PowerPoint and Word. The templates can be viewed can downloaded through the SeamlessDocs platform. Also, there is no need to worry about its quality as the reputation of this global service company has proven its capability in producing business plans that will improve the likelihood of financial funding success.

7. Invoiceberry

To get started, you will be asked either to fill in your email address, like their Facebook page or to simply add them on Google+. The online company, which comes from the United Kingdom, provides downloadable templates in different Microsoft Office formats: Word, Excel, Power Point and Outlook. No matter which you choose, each of them includes at least a plan for marketing and an executive summary.

8. My Own Business Institute (MOBI) by St. Clara University

Initially established for Leavey Business School, the website is equipped with useful resources for business, such as financial sheets, evaluation guidelines and, of course, business plan templates. The templates come in fifteen different sections, which can be downloaded separately or as a whole in one document. The documents are available in Word format.

9. RocketLawyer

The procedure of using this online platform is pretty much the same as the others. You need to fill in a form and once you have finished, you will be able to download the plan. Despite the regular steps, RocketLawyer actually offers a unique feature: the financial parts of your business plan can be customized depending on the requirements of the state the business is going to be. This is an obvious added value, especially for those looking forward to getting some bank loans for the capital.

Bplans.com, known as the authority on business plans, offers a free Word business plan template, complete with instructions and a table of contents. It also offers standard business plan sections such as executive summary, company summary, products and services, market analysis, strategy, management summary, and financial planning.

BusinessTips.ph is an online Business Ezine that provides free and useful articles, guide, news, tips, stories and inspirations on business, finance, entrepreneurship, management and leadership, online and offline marketing, law and taxation, and personal and professional development to Filipinos and all the business owners, entrepreneurs, managers, marketers, leaders, teachers and business students around the world.

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How to write a business plan

Writing a business plan will help nail down your idea and give you a blueprint for executing it.

What is a business plan?

A business plan describes your product or service, identifies who the customer is, explains why they need your product or service, and shows how you’ll make money from that opportunity.

Why write a business plan

How you write a business plan will depend on what you need it to do. There are a couple of key jobs a business plan can have. It can:

• explain a business idea
• convince lenders or investors to put money behind that business idea

It doesn’t take a book to do the first job. You can write a business plan that’s short, to the point, and easy to update. That may be all you ever need. But if you’re going for funding, your business plan will need to be a good deal longer and more comprehensive.

Why every business should start with a one-pager

Even if you will eventually write a long business plan, a one-pager is a great place to start. It could take as little as an hour to do your first draft and will make your idea stronger. Writing about customers, competitors, income and expenses will help develop your thinking.

How to write a one-page business plan

You’ll see in the example below that there are nine sections, or things to write about. So give yourself just a small space to write about each. Keeping it short will help you focus on what’s important.

Download a one-page business plan template.

When you need a longer business plan

The greater the risk you’re taking, the more comprehensive your plan should be. For instance, you’ll need to write a long-form business plan if you’re going to fund it with other people’s money. Banks and investors will expect it.

How to write a longer business plan

Long-form business plans touch on all the same things as a one-pager, but they go into more detail and contain fewer assumptions.

Back-of-the-napkin numbers are replaced by forecasts and budgets. And guesstimates for things like costs, market size, customer preferences, and competitor weaknesses need to be backed up with proof. It’s a good idea to involve an accountant or bookkeeper in developing the budgeting and finance sections.

Contents of a business plan:

• Executive summary: A short summary of the main points of your business plan. Write it last.
• Company overview: Identify your industry, what you’re selling, and how you’ll charge.
• Products or services: Include a description of the problem you’re solving for customers.
• Market analysis: Describe your target market, and examine the competition.
• Risk assessment: Flag potential hurdles (including assumptions that could be proved wrong).
• Marketing and sales plan: How will you find customers and make sales? How many sales will there be?
• Milestones: What needs to happen and when?
• Progress reporting: When and how will you report against the milestones?
• Team: Who will be involved in the business? Note their skills and responsibilities.
• Budget: Estimate your costs and income (and any debt that you plan to take on).
• Finance: Show how you’ll fund the business.

You can also add an appendix with any supporting or background documents.

Make a start by downloading our free business plan template.

How not to write a business plan

Avoid these common business planning mistakes:

• Underestimating how much money it will take to get started
• Failing to budget for the first few months of operation (before revenues start flowing)
• Expecting sales to ramp up too fast
• Relying too heavily on one or two customers (or suppliers)
• Not including contingencies for unexpected delays or costs

Xero does not provide accounting, tax, business or legal advice. This guide has been provided for information purposes only. You should consult your own professional advisors for advice directly relating to your business or before taking action in relation to any of the content provided.

How to start a business

Thousands of new businesses open every day. If all those people can do it, why not you? Here’s what to do, and when.

Your business idea is clearly inspired. But it helps to check you’re not the only one who thinks so.

It’s time to run some numbers on your business idea. Budgeting and forecasting help with that.

Your prices can influence the number of sales you make and the profit you earn on each transaction.

Your business structure can affect how much tax you pay, and how you're treated by the law.

If you’re starting a business, then you’ll need to get familiar with some accounting basics.

After all the excitement of deciding to start a business, you’ll have some paperwork to do.

Treat your website like an online version of a storefront. It’s the first impression for many customers and prospects.

Now that you’re in business, you want to stay there. Xero’s got resources and solutions to help.

Download the guide to starting a business

Learn how to start a business, from ideation to launch. Fill out the form to receive this guide as a PDF.

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Free Business Plan Template for Small Businesses (2024)

Use this free business plan template to write your business plan quickly and efficiently.

A good business plan is essential to successfully starting your business —  and the easiest way to simplify the work of writing a business plan is to start with a business plan template.

You’re already investing time and energy in refining your business model and planning your launch—there’s no need to reinvent the wheel when it comes to writing a business plan. Instead, to help build a complete and effective plan, lean on time-tested structures created by other  entrepreneurs and startups. 

Ahead, learn what it takes to create a solid business plan and download Shopify's free business plan template to get started on your dream today. 

What this free business plan template includes

• Executive summary
• Company overview
• Products or services offered
• Market analysis
• Marketing plan
• Logistics and operations plan
• Financial plan

This business plan outline is designed to ensure you’re thinking through all of the important facets of starting a new business. It’s intended to help new business owners and entrepreneurs consider the full scope of running a business and identify functional areas they may not have considered or where they may need to level up their skills as they grow.

That said, it may not include the specific details or structure preferred by a potential investor or lender. If your goal with a business plan is to secure funding , check with your target organizations—typically banks or investors—to see if they have business plan templates you can follow to maximize your chances of success.

Shopify's free business plan template includes seven key elements typically found in the traditional business plan format:

1. Executive summary

This is a one-page summary of your whole plan, typically written after the rest of the plan is completed. The description section of your executive summary will also cover your management team, business objectives and strategy, and other background information about the brand. 

2. Company overview

This section of your business plan will answer two fundamental questions: “Who are you?” and “What do you plan to do?” Answering these questions clarifies why your company exists, what sets it apart from others, and why it’s a good investment opportunity. This section will detail the reasons for your business’s existence, its goals, and its guiding principles.

3. Products or services offered

What you sell and the most important features of your products or services. It also includes any plans for intellectual property, like patent filings or copyright. If you do market research for new product lines, it will show up in this section of your business plan.

4. Market analysis

This section includes everything from estimated market size to your target markets and competitive advantage. It’ll include a competitive analysis of your industry to address competitors’ strengths and weaknesses. Market research is an important part of ensuring you have a viable idea.

5. Marketing plan

How you intend to get the word out about your business, and what strategic decisions you’ve made about things like your pricing strategy. It also covers potential customers’ demographics, your sales plan, and your metrics and milestones for success.

6. Logistics and operations plan

Everything that needs to happen to turn your raw materials into products and get them into the hands of your customers.

7. Financial plan

It’s important to include a look at your financial projections, including both revenue and expense projections. This section includes templates for three key financial statements: an income statement, a balance sheet, and a cash-flow statement . You can also include whether or not you need a business loan and how much you’ll need.

Business plan examples

What do financial projections look like on paper? How do you write an executive summary? What should your company description include?  Business plan examples  can help answer some of these questions and transform your business idea into an actionable plan.

Professional business plan example

Inside the template, you'll find a sample business plan featuring a fictional ecommerce business . 

The sample is set up to help you get a sense of each section and understand how they apply to the planning and evaluation stages of a business plan. If you’re looking for funding, this example won’t be a complete or formal look at business plans, but it will give you a great place to start and notes about where to expand.

Lean business plan example

A lean business plan format is a shortened version of your more detailed business plan. It’s helpful when modifying your plan for a specific audience, like investors or new hires. 

Also known as a one-page business plan, it includes only the most important, need-to-know information, such as:

• Company description
• Key members of your team
• Customer segments

💡 Tip: For a step-by-step guide to creating a lean business plan (including a sample business plan), read Shopify's guide on how to create a lean business plan .

Benefits of writing a solid business plan

It’s tempting to dive right into execution when you’re excited about a new business or side project, but taking the time to write a thorough business plan and get your thoughts on paper allows you to do a number of beneficial things:

• Test the viability of your business idea. Whether you’ve got one business idea or many, business plans can make an idea more tangible, helping you see if it’s truly viable and ensure you’ve found a target market. 
• Plan for your next phase. Whether your goal is to start a new business or scale an existing business to the next level, a business plan can help you understand what needs to happen and identify gaps to address.
• Clarify marketing strategy, goals, and tactics. Writing a business plan can show you the actionable next steps to take on a big, abstract idea. It can also help you narrow your strategy and identify clear-cut tactics that will support it.
• Scope the necessary work. Without a concrete plan, cost overruns and delays are all but certain. A business plan can help you see the full scope of work to be done and adjust your investment of time and money accordingly.
• Hire and build partnerships. When you need buy-in from potential employees and business partners, especially in the early stages of your business, a clearly written business plan is one of the best tools at your disposal. A business plan provides a refined look at your goals for the business, letting partners judge for themselves whether or not they agree with your vision.
• Secure funds. Seeking financing for your business—whether from venture capital, financial institutions, or Shopify Capital —is one of the most common reasons to create a business plan.

Why you should you use a template for a business plan

A business plan can be as informal or formal as your situation calls for, but even if you’re a fan of the back-of-the-napkin approach to planning, there are some key benefits to starting your plan from an existing outline or simple business plan template.

No blank-page paralysis

A blank page can be intimidating to even the most seasoned writers. Using an established business planning process and template can help you get past the inertia of starting your business plan, and it allows you to skip the work of building an outline from scratch. You can always adjust a template to suit your needs.

Guidance on what to include in each section

If you’ve never sat through a business class, you might never have created a SWOT analysis or financial projections. Templates that offer guidance—in plain language—about how to fill in each section can help you navigate sometimes-daunting business jargon and create a complete and effective plan.

Knowing you’ve considered every section

In some cases, you may not need to complete every section of a startup business plan template, but its initial structure shows you you’re choosing to omit a section as opposed to forgetting to include it in the first place.

Tips for creating a successful business plan

There are some high-level strategic guidelines beyond the advice included in this free business plan template that can help you write an effective, complete plan while minimizing busywork.

Understand the audience for your plan

If you’re writing a business plan for yourself in order to get clarity on your ideas and your industry as a whole, you may not need to include the same level of detail or polish you would with a business plan you want to send to potential investors. Knowing who will read your plan will help you decide how much time to spend on it.

Know your goals

Understanding the goals of your plan can help you set the right scope. If your goal is to use the plan as a roadmap for growth, you may invest more time in it than if your goal is to understand the competitive landscape of a new industry.

Take it step by step

Writing a 10- to 15-page document can feel daunting, so try to tackle one section at a time. Select a couple of sections you feel most confident writing and start there—you can start on the next few sections once those are complete. Jot down bullet-point notes in each section before you start writing to organize your thoughts and streamline the writing process.

Maximize your business planning efforts

Planning is key to the financial success of any type of business , whether you’re a startup, non-profit, or corporation.

To make sure your efforts are focused on the highest-value parts of your own business planning, like clarifying your goals, setting a strategy, and understanding the target market and competitive landscape, lean on a business plan outline to handle the structure and format for you. Even if you eventually omit sections, you’ll save yourself time and energy by starting with a framework already in place.

Business plan template FAQ

What is the purpose of a business plan.

The purpose of your business plan is to describe a new business opportunity or an existing one. It clarifies the business strategy, marketing plan, financial forecasts, potential providers, and more information about the company.

How do I write a simple business plan?

• Choose a business plan format, such as a traditional or a one-page business plan. 
• Find a business plan template.
• Read through a business plan sample.
• Fill in the sections of your business plan.

What is the best business plan template?

If you need help writing a business plan, Shopify’s template is one of the most beginner-friendly options you’ll find. It’s comprehensive, well-written, and helps you fill out every section.

What are the 5 essential parts of a business plan?

The five essential parts of a traditional business plan include:

• Executive summary: This is a brief overview of the business plan, summarizing the key points and highlighting the main points of the plan.
• Business description: This section outlines the business concept and how it will be executed.
• Market analysis: This section provides an in-depth look at the target market and how the business will compete in the marketplace.
• Financial plan: This section details the financial projections for the business, including sales forecasts, capital requirements, and a break-even analysis.
• Management and organization: This section describes the management team and the organizational structure of the business.

Are there any free business plan templates?

There are several free templates for business plans for small business owners available online, including Shopify’s own version. Download a copy for your business.

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How to Start a Business in the Philippines

Last Updated on – Jun 24, 2024 @ 2:26 pm

Starting a business can be daunting. Not all of us can afford to go to a prestigious business school to learn everything we need to know, but we’re all willing to share practical and useful tips to help you jump-start your business.

Nevertheless, Filipinos continue to be attracted to the concept of entrepreneurship. In fact, our research indicates that 27% of adult Filipinos choose “Starting a Business” as their top investment preference .

In this guide, we will provide you with a detailed step-by-step process for setting up your own business in the Philippines.

Here’s our comprehensive guide on the steps you need to undertake to start building the business of your dreams.

Step 1: Come up with a profitable business idea

Coming up with a business idea can be hard for both new and experienced entrepreneurs, so we’re giving you a few tips on how to generate profitable business ideas.

The best business ideas are the ones that aim to solve problems. You don’t have to save the world or end world hunger – just think of things that bug you about life or your community.

If you think the food around your area sucks, that can lead to a business idea. Go start a food business that provides better-tasting food for the community.

Often, a lot of products that are being sold to consumers are infinitely more expensive than they should be mainly because of branding .

Smartphone cases are an example. Expensive brands would sell them for Php 1,000-Php 2,000 but we all know we can get cheaper ones for Php 200-Php 300 with non-famous brands.

You can simply ask what consumers want. If you’re interested in bikes perhaps, just ask bikers what they mostly need that they can’t get access to.

If you’re going to start an online business , maybe you could conduct an online survey.

If for example you’ve found a way to create the next best thing like fidget spinners, that’s awesome. Points for you. But, as an entrepreneur, you don’t have to sell the most original thing. 

The person who created fidget spinners might be rich right now, but you can see off-brand fidget spinners everywhere, especially here in the Philippines. There are countless businesses that are just like others.

So, let go of the desire to be original and you’ll be less frustrated about generating your business idea. Instead, think of a way to make the customer experience better .

You can also read our comprehensive list of profitable small business ideas in the Philippines .

Step 2: Conduct a project study (market fit & feasibility study)

Once you have a business idea, you would then need to conduct a project study. Relying on intuition alone can’t get your business flying.

A project study has three parts:

• Market study – Determines if there is  a demand for the product/service and its target market
• Marketing study – Outlines the strategies to connect to the target market
• Feasibility study  – Determines if the project will be viable

Take your time in preparing the project study. If you have money to spare, hire a professional who can do market research for you. Once that is completed, you can hire an accountant to prepare a feasibility study .

Step 3: Create & prepare a business plan

All businesses need a map that would chart its course and will serve as a guide during times of uncertainty. This map is called your business plan .

A business plan is made up of these sections:

This may appear first but it is actually written at the very last. It is the condensed version of what your business plan is and what it aims to achieve.

This one has three parts:

• External Analysis – Overview of the industry and the economy
• Internal Analysis – Overview of the company and its organizational structure
• SWOT Analysis – Overview of the business’ strengths, weaknesses, opportunities, and threats

What the business wants to achieve. What are its aims and targets?

This identifies the strategies that the business proposes to implement in order to achieve its goals and objectives.

Lays out the system or set of processes that define the operation

Includes the various products/services being offered by the business

Presents how the business plans to market and promote its products/services

Discusses how you plan to finance the business

Step 4: Choosing a Business Model

A business model refers to a company’s plan on how to make a profit. Understanding business models is extremely integral to the success of any venture. It’s a critical step that requires a deep understanding of the market, the industry, and the target customers.

Companies sell physical or digital products. This can range from consumer goods to software applications.

For this model, companies produce tangible goods which are sold to distributors or retailers. Their revenue primarily comes from the direct sales of products to consumers through various distribution channels.

Businesses that follow this model get products from manufacturers or wholesalers. They are responsible for selling them directly to consumers at a markup.

The subscription model involves selling products or services regularly for a set fee. Companies earn consistent revenue as customers pay to access the offerings during their subscription period.

These businesses charge customers based on specific services. Customers pay for individual services tailored to their specific needs.

Revenue is generated through advertising. This model is prevalent in media, online content providers, and social media platforms.

In the freemium model, companies offer a basic version of their product or service for free. This will entice customers to use it. Then, additional premium features or functionalities are made available at a cost to generate revenue.

The affiliate model involves promoting or selling products or services from other businesses. Businesses with this model earn commissions for each successful sale made through their affiliate links or channels.

Franchisors license their business model and brand to franchisees, who then operate their own businesses under the franchisor’s name following set guidelines.

Traditional business model where the retail, service, or business operations are conducted from physical locations.

Products or services are sold over the internet. This can be direct-to-consumer, business-to-business, consumer-to-consumer, or consumer-to-business.

Products or services are sold directly to consumers away from a fixed retail location. This model often relies on person-to-person sales like in-home presentations.

Businesses leverage contributions from a large group of people, often in the form of ideas or content, usually via the internet.

Combines elements of multiple business models to cater to different customer needs or to diversify revenue streams.

These are just some of the most popular business models you can follow. For more information on business models, take a look at this guide .

Different Business Structures or Entity Types in the Philippines

Aside from the model, choosing a type of business entity is also an important consideration. It can affect the way your business is taxed, the level of personal liability you have, and the amount of paperwork required. The most popular business entities include:

A sole proprietorship is the most common form of business entity. It is where a single person owns and operates the business. This person is also liable for all the debts and obligations of the business.

Partnerships are business entities formed by two or more individuals who agree to share both profits and losses. It can either be general or limited.

• General Partnership

For this partnership, all partners share equal responsibility for the business’s debts and obligations, as well as have equal authority in decision-making.

• Limited Partnership

A limited partnership has general partners who have full liability for the business and limited partners who have limited liability. The latter are not personally responsible for the business’s debts beyond the investment they put in the company.

A corporation is a legal entity that is separate from its owners. It is formed by filing articles of incorporation with the government.

For corporations, shareholders have limited liability so their personal assets are protected from the debts acquired by the business.

Corporations may issue stocks to raise capital. They are also subject to specific regulations and governance structures.

Related: Popular Business Types in the Philippines

Step 5: Identify key business processes

You have to look at your business like a machine. A machine has different gears and parts that perform different specific tasks. Just like a machine, a business has business processes. They are your gears and parts that enable your business to operate smoothly.

A business process is basically an activity or series of steps and activities that will accomplish a specific organizational goal.

Business processes have different categories and these include:

As a business owner you have to identify the business processes you need for your business to operate. You need to figure out which tasks are important to your larger business goals .

Having well-defined business processes also helps in streamlining your operations for more efficiency. It also helps in streamlining communication between people/functions/departments. Basically, business processes prevent chaos from creeping into your workflow .

Check out : How to Create a Business Process

Step 6: Develop your value chain

Now that we’ve discussed business processes, let’s get into the value chain and what it means for your business. What is a value chain? A value chain is a set of activities that an organization does to create value for its customers.

The value that’s created and captured by the company is called the profit margin. The lesser the cost of creating that value, the higher your profit margin will be. Basically the value created is the output or your products/services.

Michael Porter created the model for the value chain. In his model, certain sets of activities are divided into two groups: primary value activities (inbound logistics, operations, outbound logistics, marketing and sales, service) and secondary or support value activities (firm infrastructure, HR management, technology development, procurement).

Instead of looking at departments or accounting cost types, Porter’s value chain focuses on systems and how inputs are changed into outputs purchased by customers.

Figure 1 from http://tracks.roojoom.com/r/10722

Primary activities

Primary activities refer to the physical creation, sale, maintenance, and support of products/services. They consist of the following:

• Inbound Logistics – Processes related to receiving, storing, and distributing inputs internally. Your supplier relationships are a key factor in creating value here.
• Operations – These are the transformation activities that change inputs into outputs that are sold to customers.
• Outbound Logistics – These activities deliver your product or service to your customer, things like collection, storage, and distribution systems.
• Marketing and Sales – Processes you use to convince customers to purchase from you instead of your competitors.
• Service – These are the activities related to maintaining the value of your products/services to your customers once these have been purchased.

Secondary activities

These activities support the primary functions above.

• Procurement (Purchasing) – This is what the organization does to get the resources it needs to operate. This includes finding vendors and negotiating best prices.
• Human Resource Management – This is how well a company recruits, hires, trains, motivates, rewards, and retains its workers.
• Technological Development – These activities relate to managing and processing information, as well as protecting a company’s base knowledge.
• Infrastructure – This comprises a company’s support systems and the functions that allow it to maintain daily operations. Accounting, legal, administrative, and general management are examples of necessary infrastructure that businesses can use.

To develop your business’ value chain, here are the things you need to consider:

There are 3 different types of subactivities:

• Direct activities create value by themselves. For example, in a book publisher’s marketing and sales activity , direct subactivities include making sales calls to bookstores, advertising, and selling online.
• Indirect activities allow direct activities to run smoothly. For the book publisher’s sales and marketing activity, indirect subactivities include managing the sales force and keeping customer records.
• Quality assurance activities ensure that direct and indirect activities meet the necessary standards. For the book publisher’s sales and marketing activity, this might include proofreading and editing advertisements.

For each of the Human Resource Management, Technology Development, and Procurement support activities, determine the subactivities that create value within each primary activity.

For example, consider how human resource management adds value to inbound logistics, operations, outbound logistics, and so on. As in Step 1, look for direct, indirect, and quality assurance subactivities.

Next, identify the various value-creating subactivities in your company’s infrastructure. These will generally be cross-functional in nature, rather than specific to each primary activity. Again, look for direct, indirect, and quality assurance activities.

Find the connections between all of the value activities you’ve identified. This will take time, but the links are key to increasing competitive advantage from the value chain framework.

For example, there’s a link between developing the sales force (an HR investment) and sales volumes. There’s another link between order turnaround times, and service phone calls from frustrated customers waiting for deliveries.

Step 7: Fund allocation

So you already have funding for your business . Question is how do you properly allocate it? Here are things to consider when allocating your funds.

As much as you would want quality for your products/services, keep in mind that your profit margin will be higher if your cost of production is lower. Consider finding alternatives to the materials you need for your products or the equipment you need for your services.

Although marketing and promotion are important, they can be a cash sink. As much as possible, find ways to advertise your business at a low cost or ideally for free. Social media sites are perfect for free marketing. Networking is another way to spend less on advertising. Meet with people and promote your business to peers. Hopefully they too will start promoting your products.

As a growing company it will be best for you to allocate your capital to people and assets that help increase your revenue. One of the first people you should consider hiring is someone who can help you with sales. Also, investing in an e-commerce portion of your website (or through a partnership) helps you increase both sales and profits as you begin to capture the full-retail margin.

Without a budget plan, it’s easy to spend on things that might seem important at the moment but in reality, you’re spending on something that might become more of a liability than an asset. Having a budget plan will keep you on track on which aspects of your business are truly essential.

Related: Cost of Doing Business in the Philippines

Step 8: Business name & identity

Now you have the foundations of how to start a business. You’ve got an idea of what your business would be and now you’re ready to name it. Your business name will represent who you are and what you will offer to your customers. Your brand name will be your identity.

Before anything else, do check if the name you’ve come up with is already in use by another company. A good way to do this is to search online for business name databases.

You can also just prepare a bunch of names, and once you register your business to DTI just pick one that they’ll say hasn’t been taken.

Here are things to consider when naming your business. You must ask yourself:

What you feel should reflect what you want your audience to feel or imagine. Do you want to be comforting, approachable, or serious and respectable? The name should also give a hint about the products/services you offer.

Choosing a catchy name can be helpful especially if your audience can relate to it. For example, with the meme culture dominating social media right now, using pop culture references for your name can be a cool idea. But do keep in mind that it must reflect the identity of your business.

Imagine your brand name on a website, tarp, and brochure – does it look appealing? Logo design will also affect your brand name and identity. Keep this in mind when naming your business and designing your logo.

To register a business name in the Philippines, you need to apply through the Department of Trade and Industry (DTI) for sole proprietorships, or the Securities and Exchange Commission (SEC) for partnerships and corporations.

The process involves checking for name availability, filling out the required forms, and paying the applicable fees. Once approved, you’ll receive a certificate of registration, which is essential for obtaining other necessary permits and licenses.

We also recommend checking out StartHere PH’s guide on registering your business name online with DTI BNRS

Step 9: Register your business & legal requirements

Once you have a business name and know your organizational structure, you can now register your business.

What are the legal requirements to start a business in the Philippines?

This document proves that your business is registered under the laws of the Philippines. Documents you’ll need to register:

• name verification slip (can be secured at SEC Name Verification unit or online)
• articles of incorporation or bylaws,
• joint affidavit of 2 incorporators to change corporate name,
• for non-stock only: List of members certified by the corporate secretary and list of the names of contributors or donors and the amounts contributed or donated certified by the treasurer

You can’t get other permits without getting a clearance from the Bureau of Internal Revenue .  Here are the BIR forms mainly used for business registration:

• Form 1901 (mixed-income/self-employed)
• Form 1902 (employees, non-residents, resident aliens)
• Form 1903 (corporations and partnerships)Form 1904 (one-time taxpayer who just rendered business in the Philippines for a year)

This authorizes you to use your own trading name for any business-related operation. This also secures that your business name won’t be used by someone else. Requirements:

• list of business names
• must be a Filipino citizen of legal age
• fees apply depending on the scope of your business (Barangay: Php 200, City: Php 500, Regional: Php 1,000, and National: Php 2,000)

This certifies that your business complies with the requirements of the local barangay where your business is located. Requirements include:

• Cedula (Community Tax Certificate)
• Application form

Also referred to as a business permit, this permit ensures that your business is safe to operate under your city’s ordinances. Take note that you can only get a Mayor’s Permit after registering your business with DTI and SEC. Requirements:

• DTI Business Name Certificate
• SEC Registration Certificate
• Lease contract/tax declaration
• Barangay clearance

Recommended resources:

• How to register your online business in BIR & DTI
• How to register and start a corporation in the Philippines

If it’s a big business such as a mall or restaurant then public liability insurance is also needed.

Step 10: Open a Bank Account for Your Business

After deciding on a business model and type of entity, the next important step is to open a bank account for your business.

This will enable you to manage your finances better and keep personal and business finances separate. Here are some tips to consider when opening a bank account for your business:

Look for banks that specialize in small business banking or offer features that cater to your needs. Consider their fees, interest rates, and accessibility.

Banks need certain documentation before they can open an account for your business. You may be asked to submit the following:

• Credit score information
• Brand and company certifications
• Business registration documents
• Ownership and partnership agreements
• Licensing information (if applicable)
• Employer information

There are different types of accounts offered by banks, such as checking, payroll, savings, or merchant services. Depending on your business needs, choose one or a combination of these accounts.

Complete your bank’s application form with accurate information and make sure to review it before submission. Some banks may require an initial deposit to complete the account opening process.

Your bank can be a valuable partner for your business, providing financial advice, loans, and other services. Make sure you choose a bank that you feel comfortable working with and that has a good reputation in the industry.

For more information on opening a business bank account in the Philippines, check out this in-depth guide . 

Step 11: Recruiting & Hiring People

Hiring the right people is essential to make sure your business will grow . It can be difficult to find the right fit for your business, so here are a few tips on hiring.

Find a person who’s passionate about their career, not just someone who switches careers for a higher salary. Always check a candidate’s job history. Their loyalty to their job or company will reflect on their resume.

Your staff’s values should be aligned with your business’s values. If you’re a fun and creative tech company, find people who share the same interests and passion for tech. If you’re a serious accounting firm , find people who are logical and serious in dealing with numbers.

Always find better ways to hire employees. Instead of asking magic bullet questions or irrelevant questions, focus on getting to know the capabilities, knowledge, skills , confidence, attitude, and potential of the candidate.

When posting an ad for the job, always include the details regarding the tasks and responsibilities the position calls for and the qualifications for applicants.

This way you’ll attract the more competent candidates and also have a checklist of things to consider when hiring someone.

It’s ideal to have an expert who can evaluate candidates. Consider getting an HR manager first.

Step 12: Create a website

Creating a website is difficult especially if you’re not someone who can code. If you can, great, this won’t be too much of a problem. If you can’t, you’ll have to get someone who can create a website for you.

But if this is something you don’t think is urgent, just creating a social media account can suffice for the meantime. That way you can still have an online presence and a platform where you can either sell, market, or promote your products/services.

But if you really want to create a website and you don’t want to get someone else to do it for you, consider checking out this step-by-step guide for beginners on how to create websites . Seriously, you can create your own websites even if you don’t know how to code.

With just a few clicks and some drag and drop, you can have your site published in just minutes. You would have to pay a monthly fee of $14 to keep the site running.

Step 13: Market & promote your business

Marketing and promoting have become interchangeable in the field of business. Technically they’re still different things.

Marketing basically is an objective discipline that involves the research, creation, pricing, testing, and distribution of a product/service. Promotion, on the other hand, is actually a part of marketing.

But put simply, both are the things you do in order for people to gravitate toward your product.

Now, in doing business, you must remember the 4Ps of marketing.

Check out: 50 Marketing Ideas for Filipino Entrepreneurs

Step 14: Taxation & Financial Management

Managing your taxation and finances is crucial for the success of any business. In the Philippines, taxes are the major source of revenue for the government and businesses are required to comply with tax laws.

Here are the various taxes you’re required to pay:

Value Added Tax or VAT is a tax imposed on the gross sales or receipts of goods and services in the Philippines. Businesses that have exceeded the threshold amount of P3 million in total sales for the past 12 months are mandated to register for VAT.

Income tax is a tax imposed on a person’s or business’s income. In the Philippines, businesses are required to file and pay income tax annually.

The amount of tax to be paid is based on the net income of the business. Partnerships and sole proprietorships can be charged up to 35%, while corporations can be taxed up to 25%.

Those who are not subjected to VAT must pay 1% to 3% percentage tax on their gross sales.

Withholding tax is a tax deducted by the company from the income of employees or suppliers and remitted to the government. This tax is required to be withheld and remitted on behalf of employees or suppliers by the company.

Financial Management Tips You Should Know as a Business Owner

As a business owner, you must also be aware of the importance of financial management . Here are some tips you should know to effectively manage your finances:

Having a budget can help you allocate your resources effectively and make informed financial decisions. It can also help you make adjustments when unexpected expenses arise.

Keeping accurate records of your expenses can help you monitor your cash flow and identify areas where you can cut costs.

It is crucial to separate your personal and business finances to avoid confusion and ensure that you are properly recording your business transactions.

Cash flow is the lifeblood of any business. It is important to monitor your cash flow regularly to ensure that you have enough cash on hand to cover your expenses and invest in your business.

When investing in your business, make sure to weigh the potential benefits against the costs. Consider the return on investment (ROI) and make sure that the investment aligns with your business goals.

If you are unsure about your financial management skills, seek the guidance of a financial advisor or accountant. They can help you develop a financial plan and provide valuable advice on how to manage your finances more effectively.

15 Useful Tips on Starting a Business in the Philippines

Interest in your product might be important, but providing what your customers want and need is even more important.

Cash flow is the lifeblood of business and is absolutely essential to feed bottom-line profits. Find ways to jump-start cash flow immediately.

Keep your expenses at the minimum so your profit margin will be higher. To conveniently track your business spending and ensure that you keep your expenses low, make sure you have access to financial tools like  Spenmo ‘s expense tracker.

Doing so will give you a financial safety net. u don’t want to run out of funds, so it’s good to always have extra cash.

Come up with a Plan B to keep your business running or recover quickly in times of disaster or crisis. You should also have money set aside that can cover unforeseen increases in operational costs or other unbudgeted financial needs.

In business, nothing happens until a sale is made. From the get-go, you’ll need to find a good way to get leads, convert leads into sales, and make sure you keep getting repeat sales from your customers.

There are five factors that impact business profits: leads, conversion rate, average amount per sale, average number of transactions, and profit margin. If you can increase these while keeping your costs in check, you will run a successful business .

Figure out the best strategy to do your business. Test out different ways to sell, market, and promote your products/services.

If you’ve never run a business, well you can learn by doing and through self-study. The key to becoming a successful entrepreneur is to never stop learning.

Whenever you discount, you are taking money directly out of your pocket and directly from your profit. So don’t do it. Instead, create added value propositions all the way up and down your product or service line.

Find someone who can teach you the ropes and tricks in business.

Business networking is important both in promoting your business and learning from peers. If you want to get ahead, you have to network.

Doing business can be draining. You have to be with people that pull you up, not down.

They will happen at one point or another. But when these happen look at them as challenges and not failures.

You can’t run your business properly if you’re burned out. Learn to find time to relax and be with your friends and family. Life isn’t all about money.

Related: How to Buy a Business in the Philippines

Starting a Business in the Philippines FAQs

The minimum capital requirement to start a business in the Philippines varies by business type. For domestic corporations, a minimum paid-up capital of PHP 5,000 is generally required. However, if foreign equity exceeds 40%, the minimum paid-up capital must be PHP 200,000, with certain exemptions for high-tech businesses or those employing a minimum number of local employees.

Yes, foreigners can start a business in the Philippines. They can establish a wholly foreign-owned enterprise, subject to the Foreign Investment Negative List which details sectors where foreign investment is restricted or limited.

Additionally, if the foreign investment exceeds 40% of the equity, the minimum paid-up capital requirement is PHP 200,000, unless specific exemptions apply.

Incentives for startups and new businesses in the Philippines include income tax holidays, exemptions from import duties and taxes for equipment, materials, and raw inputs, simplified export and import procedures, and additional deductions from taxable income.

Specific incentives are also available for businesses located in Special Economic Zones (SEZs) or engaged in industries prioritized by the government.

Additionally, technology and innovation startups may benefit from programs offered by the Department of Science and Technology (DOST).

Common challenges faced by new businesses in the Philippines include navigating the complex bureaucratic and regulatory environment, dealing with inconsistent local government regulations, managing infrastructure issues such as internet connectivity and transportation, and coping with competitive labor markets and sometimes volatile economic conditions.

Additionally, tax compliance can be complex, requiring careful financial management and planning.

Protect your business idea in the Philippines by applying for intellectual property protection through the Intellectual Property Office of the Philippines (IPOPHL).

This can include patents for inventions, trademarks for brand identities, and copyrights for original artistic or literary works. Additionally, ensure that confidentiality agreements are in place when discussing your idea with potential partners or investors.

Your Business Checklist

Here’s a reminder of the things you need to have before you can launch your business:

• Business Idea
• Market Research/Study
• Detailed Business Plan
• Business Name/Identity
• Legal Documents/Certifications
• Fund/Capital
• Marketing and Promotion Strategy
• Taxation & Financial Management

Now with all of these in mind, you can now go and start your business!

Check out these other useful business resources from Grit PH:

• 38 Important Business Documents & Letters [with samples and templates]
• How to Sell a Business in the Philippines
• The Ultimate Guide to Business Valuation in the Philippines

Reader Interactions

January 30, 2019 at 12:13 am

Thank you for the creator/s of this site! This is helpful while you make money! Haha. Kudos! Cheers!

December 11, 2021 at 4:15 pm

According to the Philippines Small Business Association, it costs about 300,000 pesos or around $6,800 to start a business in the country. It’s important for Philippine businesses to find their target audience and market by region. Once you know where your clients are coming from you will need things like advertising through newspapers – remember that your region might have limited means of internet access so print-outs are essential.

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Free Sample Business Plans

Having a business plan is a very important step to make because it serves as your road map to success of your business especially in its early years. Here is a great resource for anybody needing examples on how to structure, compose, and write their own business plans.

Your Business Plan Resource Guide

#1. The SBA provides business plan software for free. You have to register to use it.   Go to the SBA’s business plan software

#2. Go here:  Free sample business plans from bplans .

#3. Sample business plans from referenceforbusiness.com. This is an actual business plans written by entrepreneurs in North America who are seeking financing for their business.

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Carinderia business plan (with pdf).

• Food & Beverage

A carinderia business may be attractive and seemingly easy to set up: have a stall near your house, few tables and chairs, adequate cooking equipment and utensils and a good cook might be all you need to get started. But it’s actually a tough business to manage with low margins and factors that are hard to control. That is why, just like in any other business venture, careful planning and execution is key to getting the carinderia business off the ground and get started. A misaligned priority or missing out on a key component of the business could easily shut it down. So we came up with this basic business plan for those interested but unsure if carinderia business is the way to go. Just because you like the business does not always mean it’s meant for you. Thorough research and sufficient business support are needed.

Table of Contents

Market research

• Which segments do they belong to (low-wage workers, office workers, housewives, students, drivers, seasonal workers)?
• What is their corresponding buying power?
• Do they tend to be loyal at a specific eatery or can easily be swayed of their choices depending on available food, season, weather, etc?
• Are they encouraged to eat out or can easily switch back to prepared meals if provided with the opportunity?

Existing carinderias in the neighborhood . Identify them and ask yourself and others about them:

• Do they serve a good variety of food for customers ?
• Do they operate 24/7 or only during lunch/dinner or a certain times of the day?
• Do they operate as a legitimate business or behave like an extended table serving home-cooked meals?
• Do they source their materials from sustainable
• Do you or others have a good impression of them in terms of sanitation, food taste, price point, general ambiance, and customer service?
• Do they have generally favorable sentiment from customers?
• What are their advantages and disadvantages?

Urban planning and development. Think about what the neighborhood would look like in the next five to ten years.

• Are there proposed landmark buildings, infrastructure projects, new business establishments, or public projects forthcoming?
• Are there new schools, residential buildings, hospitals, or transport rerouting planned?

Available resources. This is key to sustaining the needs of your carinderia business.

• Are suppliers available nearby and accessible without investing a significant amount of money or time? They include meat, poultry, vegetable, seafood, or fruit dealers.
• Are there cheaper alternatives you can explore such as wholesalers who can give you better deals and stronger business relationships?
• Is it easy to find workers like waiters, dishwashers, cooks, assistants, cleaners, and cashiers who can augment the needs of a growing business?
• Is the power supply stable and does not require you to procure generators in case of a power failure?
• Is the water supply stable and does not require interruptions?
• Do you have existing materials and equipment such as fridges, freezers , or gas stoves that can be used and reduce initial spending to set up the carinderia business?
• Is there an ample disposal area to discard material waste?

Financial ability and literacy.  This is what everyone wants to discuss when planning for the business so this must be very important.

• Will you use your personal savings to invest in the business?
• Do you need to borrow money to finance the business?
• Do you have a credit line to use as a lifeline in procuring necessary materials?
• Do you or a partner have a background in accounting and basic concepts of cash flow?
• Are you familiar with the business licensing, taxes, wages, and benefits that go with the carinderia business?

Hopefully, the list provides a sufficient understanding of how suitable you are to pursue the business. This research is helpful not only for the business but also to prequalify you as a player in the business. Without due diligence and enough market know-how, challenges that would have been anticipated in this initial research stage could emerge down the road and it’s more difficult to back down and make hard choices.

Capital money

Some sources say us included, that a P15,000 investment will be enough to start the business, maybe as a food delivery business instead of a full-fledged carinderia entity. With limited capital money to buy bulk inventory of ingredients, food will be cooked in smaller portions, and orders are delivered to homes instead of accepting dine-in customers. But even before operations can begin, administrative expenses should be considered: barangay permits, rental fees, and so on. Profits will be minimal at around 5% depending on how you source your ingredients or save on costs (more on this later below). Breaking even will depend on your setup. If you are mostly utilizing your own resources such as vacant space in the backyard instead of renting a space in the market or family members helping out instead of hiring an extra hand, a significant amount of your capital expenses can be used for production. This counts utensils, cooking equipment, meat and seafood produce, vegetables, and condiments. Spending your capital money on a formal venue like a market stall may be more expensive but it also signifies your long-term commitment to the business. When the business falters when you find out your backyard does not have enough foot traffic, it’s easy to fold because you are less dependent on external factors. Hiring an experienced cook will help guarantee food quality especially if family members are less skilled or less committed to working for free for the family business. So it doesn’t mean that if you’re investing less in setting up your eatery business, you’ll more likely to succeed. Likewise, if you borrow a huge amount and are heavily invested in a proper venue, you’ll be less likely to prosper.

Carinderia design

The design of your eatery business will ideally evoke the character of your business: friendly and inviting, a place to relieve the cravings of a hungry stomach, and doubles as a place of socialization. Of course, we all imagine great designs as below with fancy design and bright, airy atmosphere. But we also think of practicality and associated costs. We ask ourselves:

• Do our customers stay long enough to marvel at the interiors or do we simply want them to spend half an hour so more customers can come in and eat?
• Do we wish to establish our presence as the talk of the town and generate word of mouth or even get featured in local magazines or TV shows?
• Do we have enough resources to execute our design plan? Money to pay a good interior designer. Materials to put brilliant design ideas into life.
• Are our ideal designs applicable to the neighborhood we wish to operate in terms of practicality such as comfort, ease of access, and efficiency in managing incoming and outgoing customers?

Manpower resources

Managing a carinderia business can range from an all-around cook/dishwasher/accountant/procurement officer to a full team of specialized roles. Depending on the scale of operation and number of customers that can be accommodated at any given time, here are some of those specialty roles: Cook – the heart and soul of the carinderia business. He or she conceptualize which types of food appear on the menu, handpicks the ingredients, slices them accordingly, and does magical things in the kitchen. Whether honed by skills passed on in the family or acquired in a culinary school, the cook’s masterpiece will be significant in customer loyalty and the carinderia’s reputation. Manager – often the owner of the carinderia business, he or she oversees the overall operation of the business. From ushering in customers inside to ensure a steady supply of food choices in the tray, he/she attempts to troubleshoot problems and achieve harmony in the operation. The manager can also dabble into cleaning up tables, assisting the cashier, verifying supplier deliveries, and makes quick resolutions on issues that may arise. Cleaner – this person ensures that the sanitation of the carinderia is in top shape. The cleaner makes quick work of tables and prepares them for the next customer. He or she ensures that leftover soft drinks, plates, and discarded food are away from the eyes of the public as soon as possible and makes prompt disposal of garbage. After operating hours, he or she makes a thorough cleaning of the carinderia: floors, tables and chairs, food shelves, kitchen and cooking area, and lastly, the toilet. Dishwasher – this role extends beyond cleaning dishes and other tableware, glasses, and cooking utensils during business hours. After hours, the role of the dishwasher will transform to that of the cleaner. This separate role manifests the importance of making the tableware clean; a singular presence of blemish can tarnish the reputation of the carinderia. This is especially crucial if the eatery relies on handwashing and without the help of a dishwashing machine. Cashier/Accountant – this person takes charge of the finances of the business. He or she collects customer bill payment, looks at the inventory of materials, analyze which menu items are profitable or loss-making, makes suggestions on the menu from a profit perspective. He or she also looks after the cash flow management and makes tight monitoring of expenses (LPG supply, electricity/water bills, supplier invoices, salary/payroll, and taxes and permits ) against income. Utility person – this person does everything not defined from the above list. This role can assist the above jobs or tasks that are not anticipated in the operation. He or she helps arrange the delivery of meat/veggies of suppliers, replaces broken bulbs or faucets, orders extra rice from other restaurants or condiments from the supermarket if supply is short, or keeps an eye on customers who try to steal items like cutlery.

Keeping carinderia operation costs low

In a business known for razor-thin margins, keeping operational costs low is key. There are expenses that you cannot avoid (permits, raw materials, equipment, and labor), but you can keep them low without resorting to unlawful practices to get the bottom line.

• Location. Rental costs cover a significant amount in a daily expense, so if you can set up in a space you own, that saves up a lot of money. It can be a small space at the beginning, as you start to attract loyal customers and build your carinderia’s brand. You can later move to a more prominent location and expect your loyal customers to follow.
• Labor. Employing family members can help mitigate labor costs, but it’s also important to realize that even if they are not working for free, and must be compensated in some shape or form. Their presence helps minimize expenses that would otherwise go to a skilled and experienced worker, but their lack of know-how can also be detrimental to the carinderia operation. If they lack exposure to the job, family members can fill roles (dishwashing, cleaning) that are not specialized (cooking, accounting).
• Materials. Will you require high-end meat cuts to achieve premium taste or do lower-grade meats still do the job? Will you use ceramic which is more stylish and food safe or plastic plates that are less risky to damage or breakage?
• Buy equipment at second-hand shops, shops winding down, or nearby auction events. This includes fridges, cooking utensils, tables, and chairs. Buying brand-new ones minimize the risk of breakdown, but if you know how to examine the quality of say, a freezer or the safety of a gas stove offered at a second-hand shop, you can save lots of capital money.
• Rent items you don’t need to buy outright. Tables and chairs are classic examples. Once you’ve grown the business, you can replace these with more appropriate dining furniture.
• No freeloaders. Except for family members, do not allow anyone else to dine at the carinderia without paying. You are running a business and not a charity so your decision must be respected.
• Marketing the business. Will you advertise in your local newspaper or promote it on Google My Business? Are you investing in great-tasting food and planning to make each customer the salesperson in a word of mouth advertising? Are you willing to offer discounts to customers for an honest positive review online? Or do you wish to get the attention of influencers promoting your carinderia in their Instagram feed or YouTube channel? There are certainly ways to promote your carinderia without spending top money on traditional advertising media.

Commitment to growth

Starting your carinderia business is the most challenging, just like in any other business. You set up your venue, acquire equipment and tools, human resources and promote your eatery to the public. That’s an investment of so much effort, not to mention your financial input in the process. And that’s even before you transact with your first customers. Sustaining the business is another beast to tame. As you get started, there are adjustments to make as everything is a new experience. But you dismiss these early challenges in the name of committing to growing the carinderia business. Are you willing or prepared to change your lifestyle and make this commitment? Not all carinderia follow the same timeframe as it depends on sourcing ingredients, kitchen manpower, or operation plan but it’s not unusual to observe certain owners expend a lot of energy and sacrifice a tremendous amount of time.

• 2am – Wake up to source the freshest produce as ingredients for the day.
• 4am – Return to the kitchen to process the ingredients — wash, slice, marinate, etc.
• 7am – Prepare the kitchen and its equipment to cook after deciding what is the menu for the day.
• 10am – Open the carinderia for an early brunch menu or early lunch orders
• 11am – Be ready for the rush of customers
• 2pm – Close the carinderia for midday cleanup and preparation for the dinner menu
• 5pm – Open the carinderia for dinner guests
• 9pm – Last dinner orders received
• 10pm – Close of business day, calculation of income, cleanup, etc

There are types of food that are considered can’t miss and often attract the attention of customers. But menu items can only materialize and make more sense if:

• they are easily sourced and profitable, even if they are quite expensive to buy from suppliers
• the typical customers are likely to pick them based on taste or financial power. How much will students, office workers, or tricycle drivers be willing to spend for lunch?
• they align with the timing of your operation. A menu of goto, tapsilog, lugaw or tokwa is good to start the day while preparing the main menu for lunch.

Depending on your market research, you might decide that your carinderia will only serve lunch as it’s the peak time of activity in the area. Maybe folks (students, factory workers, laborers) will likely return home and eat dinner prepared by their families. In that case, you can narrow down options, even though there’s a lot in common between lunch and dinner options for a typical Filipino appetite. Fixed menu or flexible menu? It’s certainly your call as you discern the pattern of your past customers. But it would be great to have a bit of variety (think of specials for the day menu) available to those who wish to explore new options. Or have a certain specialty like lechon or ginisang munggo available on a specific day. This can be a deliberate choice of day or due to the required time to prepare or sourcing of raw materials. We have a list of popular carineria menu but you can consider the following items as well:

• Adobong manok
• Adobong baboy
• Adobong pusit
• Adobong kangkong
• Chicken tinola
• Chicken afritada
• Pork menudo
• Pork sinigang
• Bistek Tagalog
• Inihaw na liempo
• Nilagang baka
• Bicol express
• Pork barbecue

Pick 3-5 main specialties and make sure you have enough rice! This staple food is a Filipino favorite and cost-wise it helps customers get full without spending much. A safe bet would be items that don’t spoil easily. Otherwise, food poisoning and other health issues can easily break your personal reputation and destroy the business. If you think offering unlimited rice (even as an opening week promotion) will attract customers without going in the red, it would be a good marketing approach.

Focus on cleanliness and carinderia hygiene

Many carinderia businesses in the Philippines exist in places that are less desirable for health reasons. Many are located near the road where food and customers are exposed to dust, smoke, and other sources of unpleasant odor. And just because nobody got sick does not mean you are operations are up to prescribed sanitation standards. Operating a clean carinderia will incur extra costs but this will always pay off as customers will appreciate how you take care of their well-being as much as your business bottom line. After all, you are preparing what they’ll eat and that’s a big deal health-wise. Cleanliness is not just about food preparation. It also includes the sanitation process when cleaning plates and cutlery, sourcing of your drinking water, cleanliness of hand towels, and condition of floors, food shelves, and toilets. These are things you not only consider but follow by heart.

• Ensure everyone involved in the carinderia operation has health clearance.
• Maintain cleanliness and safety in your kitchen area. Clean pots, pans and maintain the cooking area in an orderly manner. Wipe the floors to avoid slipping.
• Maintain cleanliness of floors by wiping off dirt and discarded materials as often as possible.
• Keep pets, stray animals away from your kitchen and dining area.
• Make washing of hands a standard procedure and provide appropriate facilities for both workers and customers.
• The kitchen crew must wear proper clothing (apron, gloves, masks, hair nets).
• Servers also need to wear clean clothing.
• Make trash cans available in designated areas.
• Dispose of garbage frequently and in an orderly manner.
• Have sanitizers available in the kitchen and serving area
• Use electric fans or mosquito coils to keep insects like flies and mosquitoes away.
• Make sure all food served is properly covered with lids, aluminum foil, or cling wrap to avoid contamination.
• Sanitize all kitchen utensils, cutting boards, plates, bowls, and pans in hot water and anti-bacterial solution.
• Store food in sealed containers and incorrect temperature settings.
• Do not transact with suppliers with questionable sources or low-quality materials.
• Clean knives, tongs, spatula and wipe them clean before usage to avoid cross-contamination between meats and other ingredients.
• Sterilize utensils and wipe them clean before access to customers
• Use separate serving spoons for every dish.
• Use separate kitchen equipment for cooked and uncooked ingredients.
• Dispose of used oil properly.
• Throw away food or ingredients if you are unsure of its quality.
• Discard items once they are past their expiry dates.
• Make sure you end the carinderia’s business day with a clean kitchen, utensils and cutlery, dining area, toilet.
• The following day, wash all plates, utensils, and cutlery again.

A carinderia business is a business that requires a lot of work and dedication, so it’s suitable for people who value hard work but have little capital money. It requires the full cooperation of staff and commitment to great experience — food service, food quality, great dining experience, and clean surroundings. That builds up over time and your effort and commitment will bear fruits sooner than you expect. Loyal customers will soon sing praises of your carinderia once you have put in a consistent effort to achieve that great dining experience. Good luck from Pinoy Negosyo!

Download PDF – Carinderia Business Plan

• 9 Filipino Dishes Your Carinderia Should Serve
• 7 Reasons Why You Should Open a Carinderia Business
• Basic Guides on Operating a Carinderia / Catering Business
• 5 Stressful Challenges Carinderia Businesses Often Face
• Refrigerator Buying Guide for Pinoy Business Owners

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Starting a Bakery Business Plan (PDF)

A bakery can also be known as a pastry shop or a confectionary. When dealing with the bakery industry we are looking at products such as bread, cakes, pastries, cookies, muffins, and pies, amongst others. It is basically food products baked from flour or other grain meals. A bakery business is a very profitable venture if operated efficiently. It is not enough to be able to make good bread or cakes. A bakery business is an enterprise that requires resources and planning. The quality of your output is important. However, you also have to create an environment within which customers can access your products at great prices. At the highest level, the bakery business is capable of producing incredible profits and prestige. This article will outline how to start the bakery business, and the bakery business plan – PDF, Word and Excel.

Above all you should develop a passion for the enterprise given the hard work that is required of you. The great thing about this model is the possibility of transitioning from other corporate endeavors straight into bakery. Moreover, you can do it as a side business without hindering your other profession. The range of possibilities includes a family-owned and run home business. You can also become a major corporate entity that caters for major events.

Market Research

Before you go further along with the bakery business this must be your primary focus. Who do you intend to cater for? This question is your launch pad into ultimately coming up with a comprehensive marketing strategy for your bakery business. In fact, insights from your market research have ripple effects towards all other components in setting up the bakery business. You must appreciate the fact that you must niche which entails targeting a particular market. It’s not that easy to cater for the whole breadth of the market because that might be unsustainable due to high costs. Therefore you must be diligent enough to figure out which specific portion of the market you’ll target. When conducting market research you must closely study people’s eating out behaviours, check the age range dynamics and also analyse the levels of income of your prospective target market. This is why it is important to have a good bakery business plan before you start this business.

Location and Premises

This here is a component that’ll be greatly informed by your target market. You want a scenario where your bakery store is ideally located at a spot characterised by high volume vehicle and foot traffic. It shouldn’t just be about traffic only though; it must be close to or in an area where your intended customers are abundantly found. Another vital feature to consider is the availability of adequate and secure parking space and easy access to mass transportation. The best approach to take is to locate your bakery shop in an area close to other businesses that can lead to customer inflows for you. For instance, locating it at a shopping centre, shopping mall or central business district (CBD) creates prospects of regular customer inflows. The premises should be large enough to accommodate all your equipment, offices, and space for customers. Your bakery business plan should cater for the costs of buying or leasing the premises.

Competitive Analysis

There are already established bakeries wherever you might think to start a bakery business. There are also new and upcoming bakeries as well. Thus you cannot turn a blind eye to competition. You have to study all your competitors to figure out their business profiles. This entails their products and services, market shares, distribution network, operating times, payment methods, customer segments, and so on. A thorough look into all this shows you loopholes and market gaps.

You have to seek to build a bakery business that has several differentiators. Tweaking operating hours can become one of your differentiators. A strategic location can also be a differentiator. It could be a unique product range that can differentiate you. Maybe it could be allowing online orders, payments and offering home deliveries. All these aspects are best figured out after studying your competitors. Remember, consumers are always looking for convenience and cost savings.

Equipment for a Bakery Business

The bakery will require a variety of equipment. The fixed items will delve a lot into your initial capital outlay. This is because you will typically purchase big ticket items such as ovens, fridges, mixers, bakeware, bread slicers, display case and utensils. The costs of purchasing the bakery equipment should be included in your bakery shop business plan. You may consider purchasing preowned equipment as a way of cutting down your startup costs.

Permits/Licenses, Insurance & Business Bank Account

Permits/licenses.

The first thing is to register your bakery business. After that you must get properly licensed. A bakery business is in the food industry. In the food industry there are strict regulatory frameworks to adhere to. You will need to apply for a business license from the relevant often local (municipal) authorities. Prior to getting that food license your earmarked premises will be thoroughly inspected. It varies from place to place but there will be a long list of things your premises must have or satisfy. Some of the critical areas inspected or inspected for are drainage system, waste management system, ventilation system, sanitary facilities, and Hazard Analysis and Critical Control Points (HACCP), amongst others.

Insurance & Business Bank Account

There are so many things that could go wrong in a bakery. Important assets can get damaged or destroyed. There are several risks that can affect workers as well. The smartest thing to do is to get insured. Contact your nearest, reputable insurance provider and get the necessary guidance. This might seem unnecessary but when something happens in the future you will be glad you got insured.

Then buttress insurance by opening a business bank account for your bakery business. It helps make financial management easier. Most importantly it will help separate your personal finances from those of your bakery business. In the event something catastrophic happens with the bakery business, it will sink alone. It will not sink with you. This is a principle in financial literacy many people in business are yet to grasp.

Bakery products

There are so many different types of bakery businesses that you may want to explore. Your decisions are determined by four primary considerations:

• The amount of capital that you have
• Your skills and competencies
• The business aims, goals and objectives
• The tastes and preferences of your customers

Each of these factors can change throughout the planning and implementation process for the bakery business. Therefore, you need to constantly adjust your bakery business and product selection accordingly. You have a number of options and niches that might just suit your client base. Examples of products that your bakery can offer include bread, muffins, rolls, cakes, donuts, buns, pizza, tortillas, cookies, biscuits, pies, bagels, scones among others. The products you are going to offer should be included in your bakery business plan.

Staff And Management

The effective running of a bakery business requires a significant workforce. As a rule of thumb, your bakery staffing needs are always informed by your intended scale of operations. Some of the key areas in this business are operations management, financial management and inventory management. At the minimum you need pastry chefs, waiters, cashiers and logistics personell. Other required staff include accountants, supervisors, security team, stock controllers and managers, though this depends on the size of your bakery.

Your bakery should have sufficient number of well trained staff. This is because repeat purchases and ever-growing customer inflows are a product of swift and quality service from the staff. Having a small or skeletal staff makes it very difficult to provide swift service. Remember we are living in a fast-paced world where people don’t want to be kept waiting for too long. The salaries of all your employees must be catered for in the bakery store business plan.

Marketing Plan

An official launch is important.

Kick-starting your bakery business can get a boost from doing an official launch. This follows that you would have set up a website and social media accounts. This also follows that you would have been active and engaging with people online and on the ground. All that must culminate into an official launch along with a press release. You can offer free samples on the day as well. Adorn the place and make it lively on the day such that it attracts people. People generally love new outlets, new offerings, and free food. Your initial pricing should be penetration pricing. This means you price lesser than existing players to lure customers to your business. Make the most out of the official launch.

Used A Blended Marketing Approach (Offline And Online)

Afterwards the focus becomes building your audience online. By the way, incorporating online ordering and payments on your website will be a game-changer. Regularly post useful, fun, and informative content daily. Conduct online competitions with giveaways of your products or branded items. All your promotional material, be it physical or virtual, must be high definition. That is a must in the food industry if you want your marketing material to stand out. If your scale of operation is substantial consider potential bulk, recurring clients. Engage them with proposals on how you can be their supplier. These can be companies, food outlets, schools, and the like.

The market for bakery is huge and ever increasing. There is always huge demand of different types of  baked goods. The market for a bakery include individuals, families, hotels, guest houses , supermarkets, companies and organizations. Your bakery should have fair prices that keeps you in business. Do not be tempted to compromise on quality as a means of correcting errors in your budgeting process. Those entrepreneurs that are running local family businesses should be careful about giving discounts to loved ones. This is because they could end up destroying the bakery business before it gets a chance to establish itself. A proper marketing strategy should be included in the bakery business plan.

Keys To Profitability

Your choice of location is a major part of making your bakery business profitable. You ideally need a spot that has high human and vehicle traffic. If that is not possible then the important key becomes your distribution network. The other key is to cultivate a huge clientele mostly comprised of bulk and recurring customers. These are customers who require your products in bulk daily. Economies of scale are a major aspect; scale your operations sooner. Identify your major costs and manage, preferably lessen them. For instance, 60 percent of costs may go to raw materials and remuneration. Your product range must be diversified and comprehensive but informed by market demand. This will ensure you always have and sell fast-moving products. This is one of the best food industry businesses you can start. There is vast room to diversify. You can scale and can pivot if needs be. Best of all, the market for baked foods is always there.

Pre-Written Bakery Business Plan (PDF, Word And Excel): Comprehensive Version, Short Funding/Bank Loan Version and Automated Financial Statements

For an in-depth analysis of the bakery business, we encourage you to purchase our well-researched and comprehensive bakery shop business plan. We introduced the business plans after discovering that many were venturing into the bakery shop business without enough knowledge and understanding of how to run the business, lack of understanding of the financial side of the business, lack of understanding of : the industry, the risks involved , costs and profitability of the business; which often leads to disastrous losses.

The StartupBiz Global bakery business plan will make it easier for you to launch and run your bakery business successfully, fully knowing what you are going into, and what’s needed to succeed in the business. This is a complete business plan for bakery. It will be easier to plan and budget as you will be aware of all the costs involved in setting up and running the bakery shop business.

Uses of the Bakery Shop Business Plan (PDF, Word And Excel)

The bakery shop business plan can be used for many purposes including:

• Raising capital from investors/friends/relatives
• Applying for a bank loan
• Start-up guide to launch your bakery business
• As a bakery shop business proposal
• Assessing profitability of the bakery business
• Finding a business partner
• Assessing the initial start-up costs so that you know how much to save
• Manual for current business owners to help in business and strategy formulation

Contents of the Bakery Business Plan (PDF, Word And Excel)

The business plan for bakery shop include, but not limited to:

• Marketing Strategy
• Financial Statements (monthly cash flow projections, income statements, cash flow statements, balance sheets, break even analysis, payback period analysis, start-up costs, financial graphs, revenue and expenses, Bank Loan Amortization)
• Industry Analysis
• Market Analysis
• Risk Analysis
• SWOT & PEST Analysis
• Operational Requirements
• Operational Strategy
• Why some people in the bakery business fail, so that you can avoid their mistakes
• Ways to raise capital to start your bakery business

The bakery shop business plan package consists of 4 files

• Bakery Business Plan – PDF file (Comprehensive Version – 83 Pages)
• Bakery Business Plan – Editable Word File (Comprehensive Version – 83 Pages)
• Bakery Business Plan Funding/Bank Loan Version- Editable Word File (Short version for applying for a loan/funding – 41 pages)
• Bakery Business Plan Automated Financial Statements – (Editable Excel File)

The business plan can be used in any country and can be easily edited. The financial statements are automated. This implies that you can change eg the percentage markup, salaries etc, and all the other financial statements will automatically adjust to reflect the change. 

Click below to download the Contents Page of the Bakery Shop Business Plan (PDF)

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Get the Bakery Business Plan (PDF, Word And Excel)

Click Buy Now  below to purchase using Paypal, Credit Card, or Debit Card. After you have purchased, you will immediately see the download link for the business plan package on the screen. You will also immediately get an email with the business plan download link. The Pre-written business plan package (PDF, Word, and Excel) costs $30 only!

If you want to purchase multiple business plans at once then click here: Business Plans Store.

The business plan package is a zipped compressed file containing the PDF, Word and Excel documents. To open the package after downloading it, just right click, and select Extract All. If you have any problems in downloading and opening the files, email us on [email protected] and we will assist you.

We wish you the best in your bakery business! Check out our collection of business plans  , and more business ideas .

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Your Guide to Starting a Piggery Business in the Philippines (2021)

Piggery business is one of the traditional businesses of Filipinos.  The industry ranges from backyard ventures to commercial scale. This business has thrived because of one thing: Filipinos love to eat pork. 

Here, we will guide you on how to start your piggery business.

The Piggery Business in the Philippines

Despite the current pandemic, the demand for pork is still high. According to Statista, in their June 2021 report , Filipinos consumed about 14.9 kilograms per capita. It also mentioned that it is expected to rise this year.  This simply means that the piggery business will continue to thrive.

According to the Philippine Council for Agriculture, Aquatic and Natural Resources Research and Development (PCAARRD), the swine industry is a P191-billion industry . Among the agricultural products, it is second to rice production.  However, more than half of the swine industry (65%) depends on backyard production.  

Pros and Cons of Piggery Business

The piggery business is profitable.  That it has thrived for decades is strong proof of its viability. Among its notable advantages are the following:

Fast Growth Rate = Fast ROI

One of the advantages of the piggery business is its fast return on investment. Quick turnover is due to the short interval between raising and harvesting. One can expect to sell a pig after raising it for five months.

They have good feed-to-meat conversion.  This means that the amount and quality of feeds you give them will be converted to more weight and tasty meat.

High demand

As mentioned already, Filipinos love to eat pork so much that we have to import pork from other countries. Due to African swine flu in other countries, the importation of pork has been banned.  This increases the demand and price.

Easy to Raise

They don’t need much space and they are docile animals. Moreover, they are easy to breed.

Cheap to Feed

Pigs are not picky eaters.  You can supplement commercial feeds with other feeds like kitchen and agricultural wastes.  These can bring the cost of feeding down.

Not prone to diseases

Compared to other livestock, pigs are relatively hardy.  They don’t easily get sick like chickens, for example.  Aside from this, they can also easily adapt to different environments. This means the risk of losing your investment due to diseases is brought low.

Smelly business

Pigs are friendly animals, but they have an unfriendly smell.  Pigs produce offensive odor coming from their manure, urine, and wastewater.  There are environmental laws and local ordinances that state where and how pigs should be raised.

Noisy business

This is not as bad as the smell, but pigs can be noisy.  Pigs make high-pitched squeals when they are hungry, fighting, or threatened.  Sometimes the squealing can be a nuisance. Like the smell, laws and local ordinances have to be followed when one puts up a piggery.

Commercial feeds prices

Commercial feeds offer convenient feed management and preparation.  Commercial feeds provide a well-balanced formulation of nutrients, thus helping in the optimal growth of pigs.  The problem is that these feeds are expensive.    There is a low-cost alternative which is to feed the pigs with kitchen and agricultural wastes.  But this is only viable when these feeds are readily available and with enough and steady supply.  If these are not so, then you have no other choice but to rely on commercial meals.  Experienced piggery businessmen say that 70-80% of the total cost of the whole operation .

Yes, pigs are hardy animals, but they can get sick too. Asian swine flu can wipe out your mob. If not controlled, it can put your investment in trouble. Gastrointestinal diseases are not as bad as the African swine flu, but they should be attended to.  You have to spend on veterinarian’s services and medicines.

Inclement Weather

The biggest challenge concerning the weather is typhoons.  Typhoons can damage the shelter, and several things could happen to the pigs.  They could be crushed and killed or injured by the falling structure or flying debris.  If not killed, they could escape the shelter.

Business Risks of a Piggery Business

The different items mentioned as cons above are already considered as risk factors. Before jumping into the piggery business, you have to consider the risks.  There are environmental, health, and financial risks involved.  This is where a good business plan comes in.

The Importance of a Piggery Business Plan

In any business, the risk is always present.  You cannot eliminate it,  but you can minimize it by having a piggery business plan.

However, a good business plan’s primary function is not to address risks but rather to provide a roadmap towards success in entering the business.  Through it, the goals and expectations will be achieved.

Piggery Business Plan Sample Outline

This is just to give you an idea of what is expected of a piggery business plan.  If you want to know more about creating a business plan, go to this blog found in Franchise Market Philippines, Ultimate Guide in Creating a Business Plan in 2020 .

Executive Summary

This section gives the piggery business stakeholders a picture of the overall content of the business plan. This would include the following: an overview of the business, the goals, objectives, mission, vision, projects, teams, and other departments. 

Include also the individuals you are still to hire.  Discuss how they make a good fit for your company.  Mention how the company will be managed.

Financial Plan

This is a very important part.  Here, you discuss financial forecasts and source funding for capital.

The appendix should have references, diagrams, tables, and others that support the business plan.

Type of Piggery Business

One of the things that you have to decide on before you start is the type of piggery business you want to have.

Breed and Grow vs. Grow-Out

With regards to piggery business operation, you decide whether it will be breeding and fattening or grow-out.

When reproducing and growing, you purchase a few quality piglets to grow to become your breeders.  You can raise them to become a boar and a sow or several sows. Or you can have sows only and have them artificially inseminated or have mated with boar from other piggeries.  

The piglets produced will be grown for marketing.  This model takes time, but you have breeders, so there is no need to buy piglets for an increase.

The other one is the grow-out model.  Some call this the “fattening model.”  You buy piglets and grow them. When they reach marketable age and weigh at least three-month-old, you sell them. This model gives the business a fast return on investment. The downside is that you keep buying piglets from others.

Independent Grower vs. Contract-Grower

As an independent grower, you shoulder everything in the business from acquiring the permits, building the facilities, raising the pigs until the selling.  The advantage of this is that you have control over the company.  The disadvantage is that the whole load of work is on you.

The second type is contract growing.  Here, the grower (piggery owner) partners with big companies to process and market hog products.  The piggery owner provides pig buildings, electricity and water supply, workforce, security, and permits.   

On the other hand, the company offers the piggery owner hybrid pigs, quality feeds, medicines, veterinary services, delivery and hauling services, processing and marketing of the hogs, and reasonable payment.

This set-up is advantageous to piggery owners with not enough capitalization for the business.  Another thing is the technical know-how that you get from this successful company.  The disadvantage is that you are pressured to produce.  Partly, you are not in control of the business.

On the other hand, the company gets a reliable, steady source of hogs without worrying about growth.  It also frees them from legal obligations concerning labor and permits.  Monterey Foods, Pilmico, CP Foods, and Excel Feeds are companies that are into hog contract growing. 

Facilities and Equipment Needed

Pig shelter and pens.

You need to provide the pigs with a pig shelter to protect them from the elements of nature. Its location should be away from houses due to the offensive odor that pigs produce. The most common shelters in the Philippines are made of concrete and metal sheet roofing.

Inside the house should be a pen or pens for easy pig management.  When building a pen, you have to consider that each pig needs four square meters of space.

For example, you have four pigs.  This means that you need to build a pen the size of 16 square meters for these pigs.  The most common cells here in the Philippines are made of concrete.  But you can also use metal gates.  One advantage of metal gates over concrete is that you can change the configuration of the pens.

The floor of the shelter and the pens should be made of concrete because it is more efficient when cleaning.

The size of the pig house and the number of pens depends on the number of pigs you want to raise.

Feeders and Water Troughs

Feeders and water troughs are needed to hold feeds and water for the pigs. The best feeders and troughs are made of concrete.  They are heavy and sturdy.  However, other materials may be used like discarded automobile or truck tires cut into half as feeders and troughs.

These are the necessities.  As you grow in your business, you can add some automatic feeders and waterers later.

Business Requirements for a Piggery Business

To avoid legal inconveniencies later, your piggery should comply with the different legal requirements for starting a business here in the Philippines.

The requirements given here will just be a summary. You can check out this blog, Legal Requirements for Business in the Philippines , for the complete list of requirements needed to start a business or you can inquire through the concerned agencies directly.

Register Your Piggery Business

There are three types of business ownership: sole proprietorship, partnership, and corporation.  For sole proprietorship, register with the Department of Trade and Industry (DTI) office.  You may check the procedure and requirements in registering on DTI's website .

For partnerships and corporations, register with the Securities and Exchange Commission (SEC).  For collaborations and corporations, you may access the SEC’s website .

Secure a Mayor’s Business Permit

Go to the local government unit where you want your piggery business to be.  Go to their city or municipal hall to secure the Mayor’s permit.  Be aware that this permit has many requirements that you have to work on beforehand.  Here are the following:

• DTI Business Name Certificate for a sole proprietorship
• SEC Articles of Partnership, or SEC Certificate of Incorporation
• Barangay Clearance/ Permit
• Authorization letter of the owner with ID
• Contract of Lease or Land Title / Tax Declaration
• Sketch of Location
• Occupancy Permit
• Location Clearance
• Public Liability Insurance
• Community Tax Certificate (Cedula)
• Fire Permit
• Sanitary Permit

There are  other additional documents or permits that the city or municipality may require from you. 

Register with the Bureau of Internal Revenue (BIR)

Your business must be registered with the BIR to be given the Tax Identification Number (TIN). Visit the BIR’s Revenue District Office (RDO) of the place of your proposed piggery business.  Go to BIR’s TIN Application Information page to have an idea of the requirements.

Register with the SSS, PhilHealth and Pag-Ibig Fund

If you are hiring workers, they need to be registered with these three government agencies for their workers’ benefits.

Social Security System is in charge of retirement and some health benefits. Philippine Health Insurance Corporation (PhilHealth) provides health benefits solely.  Lastly, Home Development Mutual Fund (PAG-IBIG Fund) is for housing loans.

Each agency requires the employer and employees to share in the monthly contributions for the workers’ benefits.

Secure an Environmental Certificate

The blog, Legal Requirements for Business in the Philippines, does not discuss this.  An environmental certificate is one of the requirements for a Mayor’s Permit.

Depending on the number of heads you will raise, you will be required to acquire either a Certificate of Non-Coverage (CNC) or an Environmental Compliance Certificate (ECC) by the Department of Environment and Natural Resources (DENR). 

A piggery business with less than 100 heads will be required to apply for a CNC.  If a piggery has more than 100 heads, an ECC is required. A CNC or an ECC can be obtained from the DENR’s Environmental Management Bureau Regional Office of the region where the proposed piggery will be located.  To know how to apply for a CNC or an ECC, go to DENR’s Environmental Compliance Assistance Center page .

Location Requirements of a Piggery Business

As you choose the site for your piggery, be aware of the national laws and local ordinances affecting the location of your pigpen, like the zoning laws, distance from the nearest buildings (residential, commercial, and others), and the distance from the source of ground and drinking water, etc.

The Resolution 674 series 2000 of the Housing and Land Use Regulatory Board (HLURB) will give you the rules and regulations regarding piggery location.

This document even gives the features of the ideal site.  Some key features mentioned are the following:

• It shall preferably have a rolling terrain to provide better drainage.  It is not flood-prone.
• It shall not be built on high moisture soil since this tends to hold water.
• It shall not be located in urban areas.
• It shall be no less than 25 meters away from the nearest source of ground and drinking water.

Choosing the Right Piglets

To have a profitable piggery business, one of the most important requirements is to have the right piglets. The Agricultural Training Institute of the Cordillera Administrative gives the different considerations when purchasing piglets.

• Buy weaners, piglets that had been weaned from their mother for at least 1-2 weeks.
• If possible, buy piglets from one source or farm to come from the same breed.
• Buy piglets that are of high quality and healthy.  You can ask the help of an experienced piggery farmer or a veterinarian.
• Avoid buying the piglets that are being peddled (you are not assured of their health and quality).

Feeding Management of the Pigs

To grow healthy and optimally, Pigs need to be fed with all the nutrients they need at different stages of their growth. For this to happen, their feeding should be managed or programmed.  This is the advantage of commercial feeds over DIY, low-cost alternative meals.

Commercial feeds have a type of feed for each stage.  They offer the following:  booster, weaner, pre-starter, starter, grower, and finisher.  To give an idea of feed programming with commercial feeds, here is a sample program from one hog feed manufacturer :

Feeding management is one of the conveniences of commercial feeds.  Another is the preparation.  Since they are dry, they are easy to prepare.  But the downside is the cost.  Commercial dinners are expensive and could cut immensely on your profit.  

If you find them expensive, consider low-cost alternative feeds.  Some alternative meals are rice bran, banana trunks, sweet potato (leaves, vines, roots), and many others.  Remember that pigs are not picky eaters.  

If you are interested in this, read Backyard Piggery Project .  It gives you alternative feeds and even the formulation of mixing them to achieve the health and growth you want to see in your pigs.

Piggery Farming Tips

Tips that will be mentioned here are related to the capacity and the capability to do this business.

Start Small

If you have zero experience, try the traditional Filipino share growing.  The Cebuanos call this “pabatnan.” This is backyard farming, but you partner with someone knowledgeable and have the place to raise pigs. You either buy a sow to breed or a piglet to grow.  Your partner will be the one to care for and feed the sow until it produces or the piglet until it is marketable.

In the case of breeding, you sell the piglets and divide the profit or divide the number of piglets between the two of you.  There should be an agreement at the beginning of how you will divide the outcome.

In the case of growing out, your partner will fatten the piglet until it is marketable.  You sell the piglet and divide the income.

This system provides a good experience in the piggery business.  It gives a picture of the whole process so that when you launch out on your own, you will have some idea of what to do.

Even when you will venture on your own, to start small is wise. Start with a few piglets. Get the experience before expanding.

Get Financial Aid

Get some help if you do not have enough funds to start your business.  Franchise Market Philippines has this blog to assist you in getting funds if you do not have enough capital.  Read 9 Best Ways to Find Funds for Your Business .

Get Technical Help

To succeed, you need to have enough technical knowledge about the business.  There are a lot of institutions offering training or seminars on the piggery business.

Check these institutions and organizations that provide piggery business training or seminars.

• The Agricultural Training Institute of the Department of Agriculture 
• International Training Center on Pig Husbandry , ATI, Department of Agriculture
• Search for Raising Organic Hogs
• Search for Animal Production (Swine)
• Hog feeds manufacturers

Piggery business is a profitable business, but you have to understand the business just like any business.

Understand the advantages and the disadvantages.  Be aware of the risks.  To navigate success in the piggery farm armed with the knowledge of its opportunities and threats, you have to write down a business plan. Without the business plan, you could waste a lot of money and time.

Aside from the business plan, get to know the requirements and the operation of the business.  All of these will help you to the destination that you want to reach.

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Disclaimer: Franchise Market Philippines strives to provide relevant and accurate information in all its articles. However, some information in our articles may differ or might be outdated from what you can see or read directly from the establishments' or businesses’ websites. Please get in touch with us directly for any discrepancies.

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