In starting a business, you won't stray far if you stay close to home.
Q: I am looking for a good business to invest in after college, as I don't feel I am fit for an 8-5 job. During our pre-graduation job fair, someone talked briefly about entrepreneurship. He kept urging us to look for our competitive advantage, but he didn't elaborate. What does it mean? How will it help me look for the best business for me? By the way, my parents are prepared to support me in this business, on condition that I will go back to our province (Camarines Sur). But they are also not very entrepreneurial.
— MIKE A., Diliman
A: I can think of only four possible kinds of competitive advantage:
* Price. Your product (or service) is comparable to existing lines, but significantly cheaper.
* Performance. Your product does more than the competition, or does it more economically or more quickly.
* Delivery/accessibility. If the present suppliers are a long way from the market, you may be able to compete by offering quick delivery.
* Novelty. Your product is entirely new but may catch the fancy of your market. Here, you have no direct competition, but you may have to spend more on introducing the concept as well as the product.
“What is the best business to get into” is also the most frequently asked question during entrepreneurship forums which we organize at the UP ISSI.
Our standard answer is, it depends, which is then elaborated on to cover “who”, “why”, “where”, “when”, and other variables. Looking for a comparative advantage is one of these variables.
However, you may do well to start by looking at who you are. What do you do best? Where do your skills, talents, interest and experiences lie?
It makes sense to start a business close to what you already are, know, or have. Begin by looking for products, processes, or services you already know something about.
Many ideas for small businesses are direct results of experience in a previous job. Teachers, for instance, start tutorial services; seamstresses go into garment or stuffed toy-making, and carpenters into sash-making.
By starting close to home, you won't stray too far away.
Similarly, a hobby could become the basis of a successful enterprise. Do you have one that you can expand into a business?
Technical training is also closely linked with entrepreneurship. You will do well to begin a business based on some vocational or trade skills you have acquired, such as auto repair, computer technology, cooking, bookkeeping, and others.
Motivations for going into business, or the “why” aspect, should also be examined. A bored middle class urban housewife would decide differently from another in a depressed community who is driven by necessity.
Where you will base your business is also important. What are the material resources found in plentiful supply in your town, city, or province that can be turned into profit? What skills are available on which to base a business? Is there a market need that is not being filled in your area?
Families outside Metro Manila used to come to the city just for shopping trips, or just to take their kids to Jolibee or McDonald's for a fast food treat. Entrepreneurs wised up to this need. And what do you know, shopping malls and fast food outlets are now all over the country.
Other possibilities to consider:
*
Subcontracting, a promising way by which small firms can start fabricating and supplying parts for larger companies.
*
Public sector purchasing, which small businesses can explore because government offices are required by law to purchase goods and materials from local producers.
*
Franchising, which is often described as “the business with the least fears.”
Congratulations for your decision to set up your own shop. You will join the brave and growing ranks of young entrepreneurs who won't seek to be employed but rather create jobs for others.
Source: Philstar
Q: I am looking for a good business to invest in after college, as I don't feel I am fit for an 8-5 job. During our pre-graduation job fair, someone talked briefly about entrepreneurship. He kept urging us to look for our competitive advantage, but he didn't elaborate. What does it mean? How will it help me look for the best business for me? By the way, my parents are prepared to support me in this business, on condition that I will go back to our province (Camarines Sur). But they are also not very entrepreneurial.
— MIKE A., Diliman
A: I can think of only four possible kinds of competitive advantage:
* Price. Your product (or service) is comparable to existing lines, but significantly cheaper.
* Performance. Your product does more than the competition, or does it more economically or more quickly.
* Delivery/accessibility. If the present suppliers are a long way from the market, you may be able to compete by offering quick delivery.
* Novelty. Your product is entirely new but may catch the fancy of your market. Here, you have no direct competition, but you may have to spend more on introducing the concept as well as the product.
“What is the best business to get into” is also the most frequently asked question during entrepreneurship forums which we organize at the UP ISSI.
Our standard answer is, it depends, which is then elaborated on to cover “who”, “why”, “where”, “when”, and other variables. Looking for a comparative advantage is one of these variables.
However, you may do well to start by looking at who you are. What do you do best? Where do your skills, talents, interest and experiences lie?
It makes sense to start a business close to what you already are, know, or have. Begin by looking for products, processes, or services you already know something about.
Many ideas for small businesses are direct results of experience in a previous job. Teachers, for instance, start tutorial services; seamstresses go into garment or stuffed toy-making, and carpenters into sash-making.
By starting close to home, you won't stray too far away.
Similarly, a hobby could become the basis of a successful enterprise. Do you have one that you can expand into a business?
Technical training is also closely linked with entrepreneurship. You will do well to begin a business based on some vocational or trade skills you have acquired, such as auto repair, computer technology, cooking, bookkeeping, and others.
Motivations for going into business, or the “why” aspect, should also be examined. A bored middle class urban housewife would decide differently from another in a depressed community who is driven by necessity.
Where you will base your business is also important. What are the material resources found in plentiful supply in your town, city, or province that can be turned into profit? What skills are available on which to base a business? Is there a market need that is not being filled in your area?
Families outside Metro Manila used to come to the city just for shopping trips, or just to take their kids to Jolibee or McDonald's for a fast food treat. Entrepreneurs wised up to this need. And what do you know, shopping malls and fast food outlets are now all over the country.
Other possibilities to consider:
*
Subcontracting, a promising way by which small firms can start fabricating and supplying parts for larger companies.
*
Public sector purchasing, which small businesses can explore because government offices are required by law to purchase goods and materials from local producers.
*
Franchising, which is often described as “the business with the least fears.”
Congratulations for your decision to set up your own shop. You will join the brave and growing ranks of young entrepreneurs who won't seek to be employed but rather create jobs for others.
Source: Philstar
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