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5 Habits Pinoy Business Owner Needs to Get Rid Of

The Philippines is a country filled with opportunities for small business owners!

While many people talk about the ideas of starting a business, few people take the necessary steps to ensure that their businesses continue to run smoothly after the initial phases.

If you are a small business owner or hope to be one, then you may benefit from reading this list of things to avoid!

1. Borrowing Money To Make Ends Meet

You should always spend within your means.

If your costs are exceeding your planned budget, then there is something very wrong with the way you are running your business. Business owners fall into the trap of taking loans, but many also underestimate the responsibility of taking loans.

A loan should only be applied for professionally, and when you are fully aware of your financial capabilities to pay back the loan. Do not make the mistake of borrowing from friends or family. Time after time, we hear of disaster stories of how money has torn families apart. Having a financial and business plan can help to prevent this. 

 

2. “Guessing” Your Competitors Strategies [restrict]

While it is good to know who your competitors are and what they are doing, it is not good to speculate.

There is a reason why speculation is a huge negative in the world of finance. It causes business owners to make unwise decisions that are like gambling.

If you plan to imitate or innovate from another business’s model, it would be wise to find out exactly how they are running in an ethical and just way. You never know what hidden-costs they face, or whether they really are profiting off their services.

Don’t make the mistake of copying someone else just because they seem to be doing better. This concept applies to personal relationships as well.
 

3. Rushing Through Plans

There is a constant rush to get on the market as soon as possible. With so many startups around, it can feel like a rat’s race in getting your products to launch A.S.A.P.

However, mistakes in business ventures can be costly. It is tempting to follow suit when we hear of business owners who risked everything to launch a product or service that made them millionaires. While it is inspiring, remember that we only ever hear of the successes.

We don’t hear of the millions of people who failed because they did not have a solid plan. Be aware of each developmental phase. Have a strategy to get from one point to the next. This way, you can be sure of the risks involved at each stage; further enabling you to maximize damage control should things go south.

 

4. Purchasing Unnecessary Things

Part of the fun for business owners is planning for designs and concepts. While it can be fun to invest in trinkets for your brand’s image, you should ensure that your cash-flow is consistent and that profits are large enough to make allowances.

Small expenses add up very quickly, and if you are not careful, petty cash funds will start eating into other budgets. While small expenses aren’t as devastating as the other things on this list, remember that every penny counts when building your business.

A good rule of thumb is to only purchase things as they become necessary. This way you can prevent any major losses early on.

 

5. Not Investing In Themselves

Part of the fun for business owners is planning for designs and concepts. While it can be fun to invest in trinkets for your brand’s image, you should ensure that your cash-flow is consistent and that profits are large enough to make allowances.

Small expenses add up very quickly, and if you are not careful, petty cash funds will start eating into other budgets. While small expenses aren’t as devastating as the other things on this list, remember that every penny counts when building your business.

 
Actionable Takeaway:
It’s not possible to account for every risk, but it is possible to maximize your strategies by learning how other businesses run. See this example of how these pinoy businesses went from being small stalls to big restaurants.  
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