Principle: salary-savings = expenses

When I was employed, I save P500.00/month to my savings bank and because I write down my list of expenses for a day, I did not apply the principle that you have to save first before buy your stuff. What I really love most is to eat, so most of my expenses are for food trip. 

Right now, I am engage in business, still I don’t have to worry since I apply my tradition about savings.

Just recently, as I am thinking to improve my business, my lifestyle change. Instead of eating in a budget saver restaurant and fast food, I begin to love eating in a casual dining whose their target market earning like a manager in a reputable company.

I can pay and part of their socialite lifestyle but my savings affected since I am learning the financial independence. 

My conclusion: 

  • SAVE MONEY FIRST BEFORE PURCHASE THE UNNECESSARY EXPENSES. 
  • IF IT IS NECESSARY TO BRING CREDIT OR ATM CARD, BE SURE TO PURCHASE  THE NECESSARY TO AVOID IMPULSE BUYING
  • AS MUCH AS POSSIBLE, AVOID BRING ATM AND CREDIT CARD TO AVOID IMPULSE BUYING 

I always bring money more than for my budget coz if ever emergency happens, I have to pay. But too bad, everytime I travel and telling myself my budget for food is P100.00aP150.00, I ended up P200-P500.00. Then on the next day, another P200- P500 for food trip. So that’s why for a month almost P3,000 for my food trip not included my personal needs that also change my lifestyle..

So no matter how high our salary, it really depends on our money habits. 

As of writing, thinking of my financial goals for next coming years, and shifting my lifestyle I am deciding to save money in a bank and in investment

Trade fairs in Iloilo


A weekend tienda, tinukib, Mercado Iloilo at Atria shop Iloilo, are one of the trade fairs happened here in Iloilo. It showcase the local products that help the micro, small business owners to reach their target customers. With the help of local governments, dti, neda, smed, Iloilo business club, Iloilo chamber of commerce, results of great success..  

Trade fairs usually are in malls, why? Because of high foot traffic at mall, it is one way to reach out their local products they sell to their customers. Another is it gives more comfortable and high sales for the sellers. They have also a rent fee, tax to pay so you expect to be a bit pricey because of malls rental fee, and a laborer to pay.

Trade fairs is one of the example of MICE (meetings, incentives, conference, exhibitions/ events) that boost of tourism in Philippines. This is where the wholesalers from different locations buys items to sell in retail. 

If you want to venture business that is locally made, try to inquire DTI.


Other local government units (LGU) try to help the small business owners by endorse to other government agency of how to improve their products. Example: if you want to sell a polvoron with health benefits, you can go to Department of Agrarian (DAR) and discuss the matters of your desired choice.

So if you want to get a big clients or to gain customers. This might help…

Business Diary: Price Increase

         It happened that I purchase my stocks at downtown only to found out it increase to P10.00 or 20%. Well in business you expect to increase the cost or raw materials but sometimes too much has greatly affect in business both for small to large enterprise.

     It is easy to say I have also to increase my sales price because as an owner, I have to analyze and know the pros and cons especially this product gives 30%-40% profit.

Customers:                                                              I have two types of customers but three types of behaviors. Even it is small business, I have to weigh what would be the effect if I have to increase this product. Who are they? What would be their reaction? Economic status? They can affordable to buy?

Marketing:                                                    what would be my strategy, to maintain my customers and at the same time it would not affect my income (win-win solution)

Competitors:                                               What would be the marketing strategy to attract the customers and keeps coming back even we have the competitors..

Finance:                                                           The lifeblood of business.                          The cost price increase, would it increase my sales price? How much? If there would be a discount, how much? What would be my expectation if it would not workout?

Why is it hard to budget?

Personal budget and at the same time business budget is very challenging. Why? It is very time-consuming especially if your record not balance in your actual cash on hand. There are instances the differences is a very small amount, it’s ok not to analyze unless if the difference above P50.00

How you do it?


Seperate your personal money and business money.

In the photos above that’s what I really do, seperate of money from business to personal money. I have also a box for the home necessities seperate for my personal needs. In business so many boxes seperate to know of where my money goes.

What challenges? In my personal needs, sometimes I have to pay my expenses beyond my budget allocated as well also in business.

If you are engage in business, you have to PAY FOR YOURSELF.  In other words, you have a salary. In tradition type of Filipino culture business especially in micro business, they don’t have a salary but they treat it as payment for their everyday daily expenses as well as their personal needs.

Record Record Record

I think my title, is not how hard to budget but “why is it hard to record?”

In recording:                                                        you have to List all your expenses and cash in for the business and at the same time for your own personal needs.               Easy… Right? But why is it hard?  If your recording not balance to your Actual Cash on Hand. Is it ok if there is a little amount of discrepancy but if everyday not balance it is not healthy and end up losing profit in business and in personal needs, the “wants” like eating hamburgers, fare for taxi and jeepney sometimes we lack to record it. 

Listing of expenses and the cash received both in business and personal matters tells you of where you cost cutting the “wants” and at the same time of where to sacrifice for results of cash inflow. 

Survival tips in small business (learn from my experience)

So many business open up and in a few years stop due to lack of skills, experience, patience and attitude driven. 

No one is exception and even me, happened also, not just once but many times and at present I don’t consider I am successful entrepreneur. Actually “mahina pa ang business expertise ko”. But what I see myself, a survivor who accepts the challenge, begins to lose hope   and realized to give a chance and now the small business is still stable.

So what keeps me motivated, and how do I survive?

 So I give you my survival experiences in managing a business and learning experience from my mistakes.

  1. To be an HANDS ON business owner

    This is really the most important I learned from my business, no matter how hard and difficult at times and facing mix challenges from ourselves and people around us. One thing is for sure to survive  our business is to be always on our business premises all the time. Even we have a trusted person to manage a business, is not an exception.

  1. Find out what is really wrong in business.

        There are many reasons business might risk in failing. So before decided to stop, find out what is really wrong. This is the way to learn from mistakes and our guide in future whenever we face the same situations again. 

        My first attempt to put up is a food business after graduate in college. Because I am inexperienced and it is a family business also, I am dependent on my family business but because of different views and principles, I gave up and learn the ropes in other companies and now, it is still a family business but I can stand on my own, independent. 

 3. Never give up. 

      If everything in good place, never give up.And never give up. 

     But this is not happen to me. I always give up and run away but keep coming back. With this situations seems not clear to me why I feel this way, time realizes me that if it yours, it will be really yours. Patience is a virtue.

 4.) Money is a king

        In business, this is the lifeblood to continue. But for my experience today limited. 

         To survive, know everything the cash in and cash out to know of where the money goes. Reduce the fixed cost and expenses not related to business as well as the personal cost.

        In my experience, I decided not to cut my salary but save it instead for my business and replace it until my business got to normal. 

5.) Focus 

         This is my problem why my business fail and finally survive. Focus in your business just like love yourself. You know of what’s going on in your business.Easily solve the problems because you focus. 

My business experience last year that I did not focus it for more than 2 months because of personal reasons results of low sales and more than six months facing dilemma and finally my sales back in normal. Not as before, but atleast enough to pay the monthly bills and at the same time pay for myself and can save for my future.

6.) Pray to God

Yes. He is the one who help us in times of problems. Believe in power of prayer.

7.) Be a Self-motivator

When things goes wrong and no one to help you, pray without actions is useless. So motivate yourself of how to survive and pray to God will lead you to succeess. 

Importance of employee in a micro and small business 



As your business grows, you need a helping hand. Employees are the greatest asset and that’s true coz they give you more money without too much hardwork.. Because of different personalities and behaviors, this is the greatest challenges for micro and small business like me coz even you have a helping hand, as a business owner, be presence always to discipline them and avoid theft (control management).

Advantages of hiring an employee:

Grows money without too much hardwork

           As a business owner, if you want to grow your business, more responsibilities  but the rewarding experience is you receive more sales which means more money.  

         Example: if you hire a marketing assistant to help you increase your sales which his salary amount to P20,000/month and the sales is P50,000. Formula: P50,000-P20,000 = P30,00 you receive. And if you hire additional 2 marketing assistant with same salary receive and same sales. Formula: marketing assistant P20,000 x 3 = P60,000. Monthly sales P50,000 x 3 = P150,000. P150,000-P60,000= P90,00 is the amount you gain from 3 employees. If  you have bonus if they reach their quota as a motivation from work, well additional money you receive.

Distribute responsibilities for easy accomplish the project.

This is the most important reasons why start up business owners hire an employee. You cannot handle it if you are the only one, but if you distribute the responsibilities, it is much easier for you.

Example: with the demands of many customers buy your products, you need another helper to entertain another customers. Not just only less burden to the business owners, at the same time, helps grow in business.

Buy and sell business (Retail business)

Many Filipinos engage in buying and selling (retail) business because it is the easiest to form with small capital that even a low class can invest in. This business is a typical you buy  items from suppliers  or dealers in bulk and sell it to customers into pieces (retail)

There are different types of retail business.

Many Filipino housewives all over Philippines engage in sari sari store outside their house. Sari sari store or tingi tingi is a store that sells variety of items from needs of people to wants. There are also people sells a sari sari store online or selling personal items to their co-workers as their sideline.

Many products to buy and sell in a retail business. It could be a supermarket, department store, food retail, flower shop, appartel, school supplies, appliances, personal products, home products, home furnitures, kitchen tools and equipment.

So if you serious in putting up a retail business consider the following:

How much money you invest in?

If you want to start a sari sari store business at home, you can start P20,000. If you want own a supermarket, big capital is needed.

Location

Location is very important so that you will know of how you market your business. This is very critical in finances if you rent the place because it affects your prices and adjust your time.

Your capital can also depends on your location. If your location is at home where seldom resides in your place, minimum capital is ideal. If your place is good accessible fit for your target market, you should increase your capital. And if you are renting, a good location with big capital to buy different types or a one stop shop business to increase sales to pay rent.

Target market

Knowing who is your target market, will you make up conclusion  of what items to sell and how much capital you invest in and what location you will start up.

Competitors

Many start up owners fail to continue business because of stiff competition and in retail business is one of the challenging part because of similar items you sell. So to increase sales, you have to reduce your price and that is called price war. If it happens you are renting, it is very advisable to consider your competitors. For me, it is an healthy competition but if you observe that out of five with same selling items, you have to consider additional products which are not available to others.

My Sari sari store Business experience.

My business story start to manage a sari sari store. I continue it since my eldest sister started it.

Location  The business located at home, in urban city ( which means many people living in our area from low class to above average class families.) Since it is located at home, no renting fee.                                                      

Target Market. Our house located on the road, so not only the residential near our place but also people passing by from different places as the target market. Another target market is the jeepney drivers, pedicab drivers and taxi drivers.                                                                        

Capital. Our main target market are drivers and their behaviors reveals most products they really want are cigarettes and energy drinks. Residential people mostly they buys mostly are electronic load (smart and globe) and liquors. So this items are big capital that sell it into pieces. So I need to invest P100,000 capital for cigarettes and liquors and groceries.

Competitors. Even I don’t pay for the rental fee, many sarisari store business in our place. But what really standout to others? 1.) Since our place is on the road, not only the residential living in our place but also the drivers and people passers by. 2) It happened there is also a convenience store infront of us, but their specialty is snack foods targeting the college students and boarders while me targeting the drivers which products are cigarettes and energy drinks. One thing, additional business which is water refill station, not only buy water but also buy in sari sari store.