OFWs are among the top contributors to the Philippine economy. In fact, studies show that OFW remittances make up around 10 percent of the country’s GDP. Their dream has always been to provide a better life for their families back home, and as a direct consequence, they are helping the country as well.
OFWs would also like to look for new opportunities if they choose to come home or would like to invest their money to make it grow while they are working. One thing they can do is start their own business.We will look into a bit more detail into starting a business in the Philippines as an OFW.
Starting Your Own Business in the Philippines
Returning to the Philippines after years of working abroad can be intimidating. You may face the following adjustments as an OFW coming back home.
- Safety – if you come from countries like Singapore, you may have to be more vigilant about your surroundings. Singapore, after all, is one of the
- Transportation convenience – you may have to get used to the traffic in major cities in the Philippines.
- Social judgment – sometimes, your friends will scrutinize you about your decisions and actions, including those about returning to the country and starting a business.
Going home to the Philippines requires you to be mentally prepared for life back at home. You have to acknowledge that there is a readjustment stage and embrace the changes.
Challenges of Starting a New Business
Generally, here are some challenges you may encounter while starting your own business.
- Patience: Success does not come overnight and that building a business takes time and effort.
- Aggressive Competition: many industries in the Philippines are highly competitive, with numerous skilled entrepreneurs constantly innovating.
- Financial Instability: Many new businesses face initial financial hurdles, making it crucial to have a solid financial plan.
Lessons Learned Along the Way
Here are three crucial lessons you can learn from business owners:
- Financial Responsibility: Managing money wisely is essential for success. This includes budgeting for expenses and reinvesting profits back into the business.
- Time Management: Effective use of time is vital for balancing business operations and personal life.
- Health Awareness: Prioritizing both physical and mental health is crucial. As a business owner, maintaining well-being enables better decision-making and resilience.
Here are some key takeaways for OFWs considering entrepreneurship:
- Identify Your Strengths: Understand what you excel at to build confidence in your business venture.
- Embrace Risks: Taking calculated risks can lead to growth and new opportunities. Step out of your comfort zone and explore possibilities.
- Learn from Mistakes: Every failure is a lesson. Embrace your mistakes as part of the journey to success.
- Manifest Your Goals: Stay focused on your dreams and work hard to achieve them. Success often follows perseverance and determination.
Financial Challenges for OFWs
Despite securing good jobs abroad, many OFWs have a hard time saving and investing money. As a result, they struggle to achieve their goal of achieving a comfortable retirement. In fact, many OFWs return home with little to no savings or investments after working for many years overseas.
This can be avoided if you start planning early. Here are some strategies for OFWs to ensure their hard earned money isn’t wasted:
- Save Consistently: Allocate a fixed portion of your salary each month to build your savings. This habit will help you accumulate a safety net for the future.
- Invest Wisely: Look for secure and reliable investment options. Consider stocks, bonds, mutual funds, or real estate to grow your wealth.
- Start a Business: If you have a business idea, explore the feasibility of starting a small venture even while working abroad. This can provide a steady income stream and pave the way for your return.
Business and Investment Ideas for OFWs
Here are some business ideas for OFWs looking to start their business upon returning to the Philippines:
1. Real Estate Investment
Investing in real estate is one of the most reliable ways to grow your wealth. Properties tend to increase in value over time. Moreover, if you can buy a home for your family, that would be truly valuable for them. However, it is challenging to choose the right property to purchase.
2. Rental Properties or Airbnb
Once you’ve acquired a property, consider renting it out or listing it on platforms like Airbnb. This can generate passive income that can help cover your mortgage payments while you continue working abroad.
3. Food Stall or Restaurant
Filipinos love to eat food. You can start a food stall or a restaurant if you want a lucrative business. This is a great idea for a business especially if you work in the culinary field abroad. Also, living abroad has allowed you to eat unique dishes that you can bring to the Philippines
4. Online Selling
With the rise of e-commerce, online selling has become a viable business option. You can start by selling hard-to-find products in the Philippines or offering items that cater to specific markets.
5. Explore Creative Passions
If you are passionate about something, you can turn it into a business. If you love baking, crafting or taking photographs, for example, these are just some of the things you can do
If you have a hobby or passion, consider turning it into a business. Whether it’s baking, crafting, or providing services like photography or graphic design, your enthusiasm can lead to a successful venture.
Steps to Begin Your Business
Starting a business requires careful planning and execution. Here’s a step-by-step guide:
- Choose Your Business Idea: Select an idea that aligns with your passion and market demand.
- Conduct Market Research: Understand your target audience and competition.
- Create a Business Plan: Outline your goals, strategies, and financial projections.
- Secure Funding: Determine your initial capital needs and explore funding options.
- Legalize Your Business: Register with relevant government agencies and obtain necessary permits.
- Set Up Location: Choose a strategic location for your business or establish an online presence.
- Hire Staff: If needed, recruit and train employees to help run your operations.
- Market Your Business: Promote your venture through social media, local advertising, and word-of-mouth.
Starting a business as an OFW is a rewarding journey filled with opportunities and challenges. With careful planning, a clear vision, and determination, you can turn your entrepreneurial dreams into reality. Remember, every successful entrepreneur started somewhere, and your experiences as an OFW can provide the foundation for your future success.