Important Business Management Strategies for Developing Companies in the Philippines
December 17, 2014 | Sharon Cheong
The Philippines is enjoying a successful period in terms of finance and business. Manila and Cebu both continue to benefit from increased levels of investment. This has resulted in a high number of new and developing businesses in the country. A relatively new business must ensure that it possesses a management team that is able to improve the performance levels of its employees. A manager should be experienced within their role and possess the knowledge needed to successfully lead a team of staff. It is advisable to create a management team that understands the importance of successful business management strategies. They must be able to implement these strategies and ensure that employees have the support they need at all times.
How to Identify Top Quality Employees in the Philippines
December 9, 2014 | Sharon Cheong
The Philippines, and in particular Manila, are enjoying sustained levels of economic growth. The business districts within Manila are experiencing high levels of investment, which has resulted in increased business and employment opportunities. Businesses from across the world are opening local branches or relocating their entire operations to the emerging South East Asian country. This has resulted in an increased number of highly qualified professionals in the area. For businesses located in the Philippines, identifying the most suitable employee can be a difficult process. The importance of quality staff in relation to the success of your business cannot be underestimated. Quality employees provide your business with the knowledge, experience and expertise which in turn benefits your customers. There are a number of options in relation to recruiting new staff members. Advertisements in the local and national press, attending career and job fairs, utilizing the services of employment agencies and networking are all great ways of making contact with potential employees. However, identifying quality employees that can fit seamlessly into their role is a little more difficult. It is important to consider a few key factors before beginning the recruitment process itself.
Business Taxes for Small Business Owners in the Philippines
December 3, 2014 | Sharon Cheong
According to Section 123 of the Corporation Code of the Philippines, a foreign corporation refers to a business that owes its foundation from the laws of another state. It has no legal existence in another state. It should exist, be formed, and be organized under laws except the Philippine law.
How to Reduce Your Business Costs in the Philippines
December 2, 2014 | Sharon Cheong
The Philippines enjoyed substantial economic growth during 2013 with early indications that 2014 could match or indeed improve on the previous year's figure of 7.2%. Manila is the business hub of the country but locations such as Cebu are also benefiting from improved levels of investment. In recent times, the country has tackled pressing issues such as wage equality. They have also created a much more politically stable environment which has helped to attract more businesses and investors to the country. Rental prices and employee wages are particularly low in the Philippines, but there are other ways in which to further reduce your business costs.
Start-Up Business Ideas for Women in the Philippines
Nov 16, 2014 | Sharon Cheong
Women in the Philippines have always enjoyed better gender equality compared to most countries in Southeast Asia. In fact, many of them have served, or continue to serve, as Senators, Supreme Court Justices, administrators, and Presidents of major companies in the country. As early as the 1990s, women in the Philippines dominated many professions, foremost being domestic service (91%), followed by professional and technical positions (59.4%), and sales (57.9%). Moreover, the country has had two female Presidents, an occurrence that is quite rare among Asian countries.
How Can a Serviced Office in the Philippines Save You Money
Oct 24, 2014 | Sharon Cheong
Thanks to its sustained economic growth and rapid modernization in recent years, the Philippines is currently regarded as one of the most promising countries in Asia. With the 43rd largest economy and the 12th largest population in the world, this country's well educated workforce, competitive local wages, and strategic location in Southeast Asia, it continues to draw in businesses. Large multinational corporations such as IBM, Intel, and Toyota have all transferred their operations to the country.
What You Should Know Before Starting a Business in the Philippines
October 3, 2014 | Sharon Cheong
There are a lot of benefits in starting a small-to-medium business (SMB) in the Philippines. First, there are fewer obstructions for foreigners running a business here compared to most other countries. For most Westerners, it's easier to relate to Filipino culture because it has a lot of Western influences (among other cultures), making foreign companies and business owners penetrate the local market easily.
The term 'startup' has been inaccurately used to describe a scrappy business venture, or a fledgling business. A startup company is newly created however it is not necessarily a disjointed and disorganized establishment.
The Philippines has been greatly influenced by its colonizers and settlers. Its culture and general way of life were greatly influenced by the Spanish, Americans, Japanese, Chinese and Malay. If you come from a culture where it is customary to conduct important business transactions and quick decision-making through phone or email communication, it is best to adopt the Filipino way of doing business. If you are a newcomer to the Philippine business scene, it will help you a lot to learn the many subtleties and nuances of Filipinos when it comes to their business etiquette.
One of the major concerns of establishing a business is choosing the perfect location for an office space. It is a fact the business location is a key factor to success and overall growth of business operations. Other important considerations in choosing an office space are meeting the requirements and needs of the company, employees, clients, facilities, and provision of essential equipment to complete the services.
How to Choose a Virtual Office Provider in the Philippines
August 26, 2014 | Sharon Cheong
Because you need to be a Filipino citizen or have a partner (whether it's a business partnership or marriage to a Filipino/Filipina) to own business and land in the Philippines, one could say that foreign investments don't happen automatically in the self-dubbed Pearl of the Orient. It's either your local partner is a co-owner of a company and realty within "Pilipinas" or you yourself need to be a naturalized Filipino citizen to be able to legally own something for yourself. As for the issue of building a startup in the Philippines, choosing a virtual office provider and having virtual office solutions appear to be the more commonsensical route to take for a foreigner.
Economic Review of the First Six Months of 2014 in the Philippines
July 25, 2014 | SERVCORP
According to the International Monetary Fund, the Philippine economy is strong enough to ride out current issues regarding its financial conditions, especially in light with the controversies surrounding the government's PDAF (Priority Development Assistance Fund) issues. However, public investment must increase in order to serve as supporting pillars for this growth and improvement. The IMF Resident Representative of the Philippines, Shanaka Jayanath Peiris, said that while the Philippines is expected to fare positively as monetary authorities go to a more "normalized" policy stance towards an expansionary fiscal policy that was instated to deal with past and present typhoon reconstruction expenditures and infrastructure upgrades, the government has to play its part in continuing the expansion of the country.
The Philippines has a come a long way in terms of big time players in valuable and influential corporations solely owned by Filipinos. Since the country's independence from the United States of America in 1945, enterprising Filipinos painstakingly made their way into building their current business empires from scratch.
Why Do You Need a Virtual Office in the Philippines
July 14, 2014 | SERVCORP
The Philippines has a rather complicated way of dealing with foreign investments and investors as well as business setups and startups. A foreigner cannot own land in the Philippines unless he is partnered with a Filipino or marries a citizen who will co-own his Philippine properties. He can also do so once he's a naturalized citizen, but that takes time, money, and effort to do. This is why many investors in the so-called Pearl of the Orient either marry a Filipino or Filipina and get their business started or opt for the expatriate and virtual office solutions route to go about establishing themselves in "Pilipinas".
Philippine economy continues to grow at a steady pace. In the first quarter of 2014, economic growth was pegged at 5.7%: however, this figure is slower than the market expectation and is attributed to the super typhoon that hit the Visayan region in November 2013. According to the secretary of Socio Economic Planning of the country, that in spite of slowdown, the Philippines is still ranked as the third fastest growing economy in the whole of Asia.
How to Choose Serviced Office Providers in the Philippines
June 9, 2014 | SERVCORP
In the 1990s, business corporations of various types experienced changes that brought about a whole new perspective in managing businesses, redesigning business processes and introducing novel and innovative working practices. In the last decade, one of the major changes, pertains to the way in which an office space is acquired.
Philippine marketing is in many ways easier for Westerners than marketing for East Asian or Southeast Asian countries. For one thing, most of the locals know English. Even those who are separated by dialects (one Cebuano, the other Tagalog) would be able to converse in English quite easily.
Every business starts small and it is the desire of every entrepreneur to see his venture grow, primarily to earn more profit and make a greater impact to the rest of the world.
Some businessmen think that if their competitors are expanding, they should also. The truth of the matter is that careful study and planning is a must before expanding one's business. Trusting one's "gut" is no longer feasible as there is a long string of businesses in the Philippines that went belly-up due to quick, unmerited expansion.
If you're planning to invest in the Philippines, whether through a business liaison or by outsourcing your work to an existing Philippine country, you should remember the pros and cons of Philippine investment.
Even though the archipelago offers many restrictions to foreigners (foreigners can't own land unless they're naturalized Filipino citizens and most courts will side with local businessmen over non-local ones), the nation still remains a diverse market that's easier for westerners to appeal to compared to other Southeast Asian countries.
The tough economic global scenario caused a significant number of medium to large scale businesses to experience a financial crisis with some eventually folding-up even after 50 years of doing business. This predicament led to high casualty in terms of employment. There are just not enough jobs to accommodate retrenched employees and new job hunters.
Before anything else, here's a clarification of what business address services entail. At around $110 a month, you won't be getting an office for rent, but a fully functional office you can conduct meetings and appointments at, but isn't strictly speaking a real office rental since the bulk of your communications are done through a virtual office medium. Usually, these business address services are available alongside virtual office packages (which typically includes VoIP telephony or a telephone number that's online-based yet can be called through cellphones and landlines as well as online receptionist services and Internet fax services). This is because the paperless office has become a reality.
Before investing in the Philippines, investors-especially foreign investors-need to get a couple of things straight. The pros of investing in the Philippines, especially when it comes to western countries with a conservative or Christian background, is that the country is predominantly Christian (Roman Catholic, actually) and predominantly conservative as well as westernized to a degree. How westernized is it? English is arguably the country's second most well-known language next to Filipino (Tagalog dialect). The cons of investing in the Philippines? The common ones include foreigners not being able to own land, courts siding with locals when it comes to complaints, and the country's charter restrictions.
Technology Solutions for a Small Business in the Philippines
March 25, 2014 | Valerie Wong
A lot of unimaginable things are now within the access of our fingertips, such that the New Millennium is heralding the same excitement as people from the Renaissance, wherein we're unlocking new and inspiring technologies that will push us towards a hopeful future (with several caveats and warnings, as always). We can now shop at the comfort of our own home. A single mobile device can serve as our Walkman, tape recorder, camera, telephone, computer, PDA or personal digital assistant, and much more. We live in exciting times, and a small business should take full advantage of this brave new world.
There are legal hurdles and bureaucratic red tape awaiting applicants who are set on incorporating and registering a new business in the Philippines. This comes as no surprise as in the latest World Bank competitiveness survey (July 2013), the Philippines ranked 170th out of 189 economies in terms of ease in starting a business.
Before establishing your business in the Philippines, foreigners should know the following. First, they can't own land in the Philippines. Second, during court cases, the judge (no jury) tends to favor the local side instead of the foreign party as a matter of policy. Third, all of these rules are written in the 1987 Philippine Constitution. Even though there have been moves by lawmakers to revise the constitution, there's an even stronger opposition to keep it as is, mostly because many Filipinos fear what had happened the last time the constitution was changed prior to the 1987 one (that is, during the Marcos dictatorship and the Martial Law years).
Short Guide to Foreigners about Investing in the Philippines
February 28, 2014 | Valerie Wong
Right from the get go, let's address the red flags many foreign investors come across with investing in the Philippines. First, foreigners can't own land in the Philippines (and it's not the only ASEAN country to do this). Second, courts tend to favor locals instead of foreign corporations when it comes to complaint handling. Third, the country's charter restrictions had historically in the past (as well as in the present and probably the future) has led it to miss out on much-needed major investment opportunities, but the 1987 Philippine constitution that instituted all these laws isn't about to change anytime soon as far as the general populace is concerned.
There's a reason why Henry Ford is considered one of the most successful and famous businessmen of all time, and it roots from the fact that up until today, many of the tenets and examples he has established as an entrepreneur is still being used to great effect. This American industrialist revolutionary founded the Ford Motor Company, which still exists today. Other than that, it was his foresight and maverick way of thinking that allowed him to become the vanguard of the transportation industry. He was able to make the concept of the horseless carriage work in more ways than one while helping people purchase their first car with little to no trouble at all.
Here are several caveats that foreigners should be aware of when attempting to set up shop in the Philippines, especially startup companies never before seen in the country and beyond it. Courts tend to favor locally run businesses over foreign ones when handling complaints. What's more, foreigners couldn't own land in the Philippines. If they want to set up shop, they will definitely need to liaison with several Filipino locals to make their business work out domestically; otherwise they'll lack leverage and whatnot. These rules are all indicated in the 1987 Philippine constitution, which several lawmakers are endeavoring to appeal in order to encourage more foreign investments.
The Philippines is enjoying one of the highest growth rates in Asia even in the light of severe natural disasters, a political case regarding a pork barrel scam implicating several senators, and a terrorist uprising (MNLF forces, to be exact) in Zamboanga. If anything, economic analysts can certainly credit the Filipino people and their resiliency in the face of challenges and tragedy when it comes to the Philippines' continued economic success. Growth of the Philippine GDP comes at a strong 7% to 7.5%, according to the projections of the First Metro Investment Corporation or FMIC.
The Aquino Administration of the Philippines has been working on social spending programs, cash transfers for the indigent, and budget boosts for education and health. It's also dependent on the private sector to assist in funding major infrastructural projects under the Public-Private Partnership Program. However, even back then, prior to the devastation of Typhoon Haiyan, the Philippines were already facing the tough task of governance reformation and improvement of the judicial system in order to lift the corrupt reputation of the nation. With that said, the reshuffling and reorganization of governance is a step in the right direction in making the Philippines are more investor-friendly country.
A virtual office can blend home and work to increase the efficiency of both of them. The office expenses are extremely low, and the user's professionalism keeps the polished image of a high-cost, traditional office. A virtual office customer can cut down on their environmental impact, and they can reduce the downsides of a commute to the office each day. Virtual office customers have a lot of flexibility when it comes to correlating their expenses with fluctuations in revenue immediately, because the costs are often variable. A virtual office allows for expansion at a very low cost with no serious or extreme commitments. Customers can take advantage of receptionists at a virtual office to cut down on the usual burden of rent, insurance, payroll, records, and health care. Furthermore, time off does not apply to a virtual staff.