The economic disturbance that was created by the COVID19 Global Pandemic that began in 2020 certainly created new waves of businesses around the globe.
If you are in the Philippines, then you may be thinking, What is the Best Business in the Philippines to Create in 2021?
The changes brought on by the pandemic have challenged many businesses as well as employees as many have lost their jobs, while others have had their businesses close down because of the many lockdowns around the country. For a fact, large companies from outside the country that invested in the manpower in the Philippines also lost their options and had to retrench a large population in their manpower just so to save the business from completely going down and incurring bankruptcy in the middle of all the social disruptions in the country.
Nevertheless, the Philippine economy continues to grow back up. As Filipinos are known to fight back all the things that hinder them from incurring success, it is obvious that the Filipino community tries as much as it could to engage in better business options that will help them grow and continue to provide for their families.
Nonetheless, before you start any business, you may want to know what form of business would be best for you to consider. Here are some types of businesses that are already operating within the Philippine market before and during the pandemic:
- Single Ownership Business or Sole Proprietorship
A single ownership business is a business in which only one person is in ownership. This type of business is fairly easy and simple to run, but it also has its challenges. In this type of business ownership, the one person who fully owns the business has to run it on his own and rely on his savings or capital instead of having a share of funds for the business from co-owners. This type of business ownership can be applied to different forms of business; whether it be merchandising business and even manufacturing businesses.
- Partnership Business
A partnership business unlike the single ownership business has a higher capital because of the partners you would have in ownership. The bigger capital means a larger budget for business growth. This is quite a common style of ownership in the country. Many business partnerships have a better chance of success. There are many businesses all around the world that started with 2 people and with time the business grew and the partnership eventually got bigger.
- Limited Partnership Business
A limited partnership business is quite similar to a regular partnership business except the partners or “shareholders” in the business who have a considerable amount of investment in it don’t have much say in matters that concern the business such as development plans and customer interests. This type of ownership is quite common with people who want to start a business with the help of people without really needing to incorporate them in business matters. A solid amount of Philippine businesses use this type of tactic to develop their ideas and grow their businesses themselves.
- Corporation Business
A corporation business starts considerably larger compared to the first two ownership types. This type of ownership business starts with way more people but takes a considerable amount of time to develop and grow. Similar to partnership business, this type of ownership can start with similarly larger capital and starting budget. Many corporations start small and grow through time
- Foreign Corporation
This type of business ownership usually begins with capital from foreign investors. You pitch an idea and hope that foreigners find it to be a smart and profitable idea for them to invest in it. Once you have foreign investors on your side and are supporting you, the business development process can begin and with this, the growth of this foreign-funded corporation can begin. Patience, time, effort, and cooperation with foreigners are needed for this type of business ownership to work.
Take note that when creating a business startup in the Philippines, whether it is a small or large scale, everything should be registered with BIR or the Bureau of Internal Revenue to gain legal status and be recognized as a legitimate business in the country.
Now that you understand the different forms of businesses that are operating in the Philippines, here are some of the Best Business in the Philippines to create in 2021:
The truth is, we are already halfway through the year 2021 and the changes in the structure of the Philippine economy are now obvious. The types of businesses that are established between December 2020 up to June 2021 certainly prove that the Philippine economy has shifted a lot.
Unlike in the past five years, people in the Philippines today are now more open to bringing their businesses online. Many among those who have created new businesses have certainly created a challenging yet interesting shift in concentrating on the resources that common families and individuals have at their disposal.
A more interesting fact to this shift is that Filipinos have certainly proven their resourcefulness again. The global Pandemic may have put a halt on a lot of business organizations, but it has also created new options and opportunities that challenged those who were at the brink of losing everything.
The virtualization of the Philippine economy is only one among the many changes that happened in the country. It cannot be denied that a large part of the country still does not have a strong internet connection that makes it easier to create online businesses. In these areas, Filipino workers tried to look around further to find opportunities that might give them a better chance at finding a better way of providing for their families through creating micro-businesses which were critical to the restructuring of the Philippine economy as it regains strength during the pandemic.
To make the discussion more efficiently directed towards discussing the specific factors that contribute to the viability of certain businesses that are created in the Philippines this 2021, four categories will be considered in this post. First is the capital, second is the motivation, third is the operations, and fourth is focused on international investments.
Best Business in the Philippines: Capital Category
Capital is always one of the primary concerns of sole proprietors or groups of business enthusiasts who want to create a for-profit organization that will help them earn money. While capital may not always be immediately available, there are different ways by which capital could be collected from a group of friends who want to share profit from the business that is being established or by getting a loan from the bank or other financial institutions that offer business startup-assistance programs.
Recently, the Philippine government has also created a new form of financial program that is dedicated to low-income earning families. This gives the said group of families a chance to embrace a better option of earning money-giving them better hope in the middle of a troublesome time.
For businesses that need Php 4000 and below, you might want to consider putting up a small food catering service or food delivery service. During the pandemic, when people are encouraged to stay at home, the people’s mobility to go around and buy the food they want from the restaurants they used to love to go to dine in is limited. Food delivery service does a lot to fill this void and earn good money from partnering up with other online food ordering and delivery services.
Recent developments in the Philippine economy also include creating virtual buy and sell businesses hosted through social media platforms like Facebook. These same new and trending small business opportunities fuel another new form of business opportunity which is the growing demand for delivery services and mobile errand tasks. It is evident how Filipinos have upped their game in these opportunities, showing how much they care about their business and the people they serve as well. Some made their services personalized, adding in notes and freebies that will make their clients feel that they are cared for hoping that this could provide ease to their clients in facing the many troubles that the pandemic brings.
These are only a few of the small businesses that can be started with a Php 4000 base capital. With the proper passion and drive, different individuals find different ways of improving the way they engage with the market and provide services and products that they know the people need today.
For businesses that may require Php 20,000 capital, there are several choices to pick from. For instance, pet grooming services thrived during these times. With more people stuck at home, a lot of those who want to spend more time with a companion decided to get their pets. Grooming pets is a luxurious business if you can find a way to make the right connections and find the right clients to serve.
If you have an extra space at home, you might want to try creating a vulcanizing business or a small carwash operation that will require buying some basic machinery but gives high profit returns especially if you are in a populated location where a majority of the residents have their cars.
Events organizers, makeup artist services, and homebound flower arrangement services are also profitable under the Php 20,000 capital range. With the right connections and online advertising, you can certainly find a business that will not only fit your skills but will also fit your immediate startup budget.
For businesses that may require Php 50,000 capital and above, you might consider the businesses noted herein. Rice depot, small sari-sari store, small satellite market right outside the home are among the basic business you can consider if you have an available capital budget of at least 50,000 and above.
For businesses requiring Php 100,000 capital and above, some choices are included here. If you have more than Php 100,000 capital at your disposal, consider engaging with a partnership with other established businesses to have a better take in terms of market introduction. This way, you can immediately serve a larger market and gain profit faster as you operate.
Best Business in the Philippines: Motivation Category
The base of your goal says a lot about who you are and where you want to go. Even during a pandemic or any other troublesome situation, your creativity fights all odds. Even when you might consider yourself to be not creative at all, in times when it is needed, you might find yourself developing ideas that are critical to developing a better and more defined business that fits you and the resources you have at hand.
When you have the right motivation to drive you, it may surprise you what types of businesses may come into your mind.
It is best to have paper and pen within reach when you start racking your mind for some creative business ideas. The key is to put everything in writing and choose later. Sometimes, the most unimaginable possibilities become the most profitable ones.
What a lot of startup business owners found out during the pandemic was the fact that, now, they have the chance to explore new possibilities and probably do what they want to do and earn good money at the same time. Truly, a sudden setback in your life and your financial resource may be frustrating. But if you view this as a new opportunity to embrace a new path in life, then you might be surprised what your ideas and your motivation can give you as a better option in life.
Best Business in the Philippines: Operations Category
Given the continuously changing conditions in society ever since the pandemic began, it is evident that more is expected to adjust along the way. Hence, when you decide to create a business this year, then you might want to dig deeper as you decide whether you ought to operate the business online or offline.
The great thing about operating a business offline is that you reduce the expenses you dedicate to physical operations and rent. However, this means that you would need to explore all the necessary measures possible for you to improve not only the way you manage the business but also how you market your products and services online. Others who have chosen the option to establish their startup online plan to gradually bring their business offline into physical shops once they see the situations change due to the pandemic. Nonetheless, at present, online operations seem to be the best option to take.
Best Business in the Philippines: International Investments
If you have the right connections and enough capital, you can also try partnering with international businesses aiming to come into the country. This of course requires that you consider the long process of getting permits of operation and other documentations that will help you operate the business smoothly in the Philippines.
The great thing about this time is that because of the pandemic, the majority of the operations of DTI and BIR have been transferred online making it easier for interested business startups to register faster, lessening their visitation appointments to the offices, and driving procedures to more efficient considerations making it faster for startups to establish their legitimacy.
Key Takeaways
As it could be noted in this discussion, everyone and anyone could create a business that will earn good money. The exceptional situations in the world today have made it even more possible for such business ideas to come alive today.
Instead of looking into the conditions of the pandemic as a hindrance to embracing a better life and a sense of stagnation to the plans you may have established before the pandemic began, you can consider this matter as a form of a new opportunity for you to explore different possibilities.
Believe it or not, this may be the change in life that you have always waited for.
Accordingly, this exhaustive list of the Best Business in the Philippines to Create in 2021 offers you a wide range of options to choose from. Exploring your possibilities, however, means that you ought to look deeper into the situation and balance out with the resources that you currently have at your disposal.
Part of being creative is being resourceful and being open to suggestions from friends and family who may have something good to share concerning your goal of creating a well-profiting business.
It helps to consider this time as something exceptional that offers you greater opportunities to make a change in your life that can give you and your family a better take on how you make the best out of the situations that are happening today. Remember, it is you who will define your future, no matter how seemingly hard the present condition of things is.
