The Philippine Franchise Industry

fran·chise  (fran' chiz')

n.

1. A privilege or right officially granted a person or a group by a government, especially:

a. The constitutional or statutory right to vote.

b. The establishment of a corporation's existence.

c. The granting of certain rights and powers to a corporation.

d. Legal immunity from servitude, certain burdens, or other restrictions.

2.

a. Authorization granted to someone to sell or distribute a company's goods or services in a certain area.

b. A business or group of businesses established or operated under such authorization.

c. A brand name under which a series of products is released.

3. The territory or limits within which immunity, a privilege, or a right may be exercised.

4. A professional sports team.

In recent years, franchising has become a business path of choice for many Filipinos aspiring to become entrepreneurs.  Its chances of success are much better than those of stand-alone businesses.  However, as industry experts would warn us, franchising is not a magic pill that when taken results in instant riches for the 'trep.

The Philippine Franchise Industry Today

90 percent Success rate of franchised businesses, compared to just 25 percent for new startups, according to PFA (Philippine Franchise Association)

10 percent growth in number of franchised outlets from 2008 to 2010.

$9.45 billion output of Philippine franchising industry in 2011 (almost P400 billion), or 30 percent of country's total retail sales output.

$12.3 billion estimated sales output of Philippines's franchising industry in 2012 (about P516 billion), at an estimated 30 percent (maximum) growth rate.

180 Number of franchise companies that are members of PFA.

Famous Christian Entrepreneurs

Some people would say that God is against prosperity, but these ten famous Christian businessmen would disagree. In fact, they would likely attribute their prosperity to their faith in God and their Christian values and work ethic. In alphabetical order, here are the most well known Christian business leaders, past and present.

1. David Green (1941- ) This American entrepreneur is the founder of Hobby Lobby, a national chain of arts and crafts stores. "Forbes" magazine included him in the Forbes 400, a list of America’s wealthiest citizens, in 2009. Green built his business on biblical principles and attributes his success to his faith in God.
2. Henry J. Heinz (1844-1919) The founder of the H. J. Heinz Company, an American food company, was a nineteenth century Christian businessman. The Heinz Company, famous for its ketchup and "57 Varieties" slogan, was built on the founder’s business acumen and Christian principles.
3. Conrad Hilton (1887-1979) The American hotelier and founder of the Hilton Hotels chain is another famous Christian businessman. Hilton based his business and philanthropic philosophy on his most enduring influences—his parents and the Catholic Church. According to literature from the Conrad Hilton Foundation, his mother often reminded him that prayer was his best investment.
4. S. Truett Kathy (1921- ) The founder and chairman of Chick-Fil-A, the national fast service restaurant chain, attributes his accomplishments to operating his business on biblical principles. His sense of obligation to the community and its youth also drive his approach. He enjoys helping young people through various scholarships and youth programs.
5. James L. Kraft (1874-1953) This Canadian-born entrepreneur and inventor was the first person to patent processed cheese. He and his four brothers established Kraft Foods, Inc., the largest American food and beverage corporation, and the second largest in the world. Kraft supported the Baptist Church and encouraged religious education for young people.
6. Robert G. LeTourneau (1888-1969) LeTourneau was an American businessman, inventor, and academic. His inventions include engineering vehicles and earthmoving equipment, and he had nearly 300 patents. He and his wife founded a Christian university in Texas, and he was well known as a generous philanthropist to Christian causes. His colleagues called him "God’s businessman."
7. Cyrus McCormick (1809-1884) This American inventor founded the McCormick Harvesting Machine Company, which became part of International Harvester Company in the early 1900s. He also invented the reaper. McCormick died at 75, after living as an invalid for four years. According to one biographical sketch, his last words were, "It’s all right. I only want Heaven."
8. James C. Penney (1875-1971) This American  businessman and entrepreneur founded the J.C. Penney stores in the early 1900s. His large income allowed for his involvement in many philanthropic causes. The 1929 stock market crash halted his work, and the Great Depression left him in financial ruin. His financial setbacks affected his health, and he checked into a sanitarium. After hearing the hymn, "God Will Take Care of You," Penney became a Christian. He eventually recovered financially and continued his involvement in charitable works.
9. Sam Walton (1918-1992)  This American businessman and entrepreneur is best known for founding the Wal-Mart retail stores. With his strong Christian background based on ethics and hard work, Walton excelled in school, college, and business. Early in his career, he served as a management trainee for  J. C. Penney. He owned a chain of Ben Franklin five-and-dime stores before opening the first Wal-Mart in Arkansas, in an effort to market American-made products at affordable prices.
10. Hilary "Zig" Ziglar (1926- )  This American author and salesman became a full-time motivational speaker in 1970, incorporating his strong Christian values into his enthusiastic messages. He wrote a book titled "God’s Way is Still the Best Way" in 2007.

Financial Literacy 101

Success, failure, success, failure again. Do you know of someone who worked so hard to earn and was able to make it big but ended up losing all his money in a short period of time?  He beat all odds to earn yet did not work as hard to keep it.


The Culprit ~ Lack of Financial Literacy 
Many of us do not know how to handle our personal finances.  While all of us are driven by the desire to earn money it became evident that most, if not all did not have a clear understanding on how to keep and manage money.  A lot of people do not have a clear and specific idea of how much he or she wanted to earn and, FOR WHAT SPECIFIC PURPOSE.  Many simply wanted to earn and earn more without taking time to make specific financial plan.  

Quoting from the words of Philippines' top finance guru, Francisco J. Colayco:

"Growing your money is just as important as earning it.  It is your obligation to learn and develop skills to manage your earnings.  Tandaan mo na ang matuto ng tamang pamamahala ng salapi ay isang tungkulin.  Alamin mo na magkasing halaga ang magpalago at kumita ng pera."

Work hard to earn money but be sure to have a plan to keep and grow it.

"Magsumikap ka sa paghahanapbuhay ngunit tiyakin mo na may plan ka kung papano palalaguin ang kinita mo." 

Wealth Generation

Wealth is having  the money to fund your needs at any given time.  Wealth generation is a life-long process.  It is something that is built over time.  It is planned for, periodically adjusted and executed with a firm hand.  It needs clarity of thought and vision.  It needs you to be financially literate.

How to be financially literate?

All you have to know and understand is what you want for yourself and how you will match your financial resources to meet your future wants.  Below are the keys:

• Anticipate your future needs.  
• Plan to have the resources to meet your needs.  "Paghandaan at alamin ang mga wastong paraan upang makamit ang perang sasagot sa iyong pangangailangan."
• Understand how you can adjust your needs against the reality of your available resources.  

Knowing how much you need to be wealthy is the first step to financial freedom.  To achieve this, you must understand, know and accept that:

• Wealth does not necessarily mean having millions and millions of pesos.  Being wealthy simply means having the financial resources to support your chosen lifestyle.
• Anyone can plan to have and achieve enough wealth consistent with his or her chosen lifestyle.   

Take time to know the fundamental principles and tools to guide you in organizing your financial life.  This foundation is so critical to planning the journey toward wealth and financial independence.  Your success is assured if you embrace these principles and practice them.  

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Process Flow of Registering A Business In the Philippines

How To Register Your Business in the Philippines
While the hype of online business is at its peak, many of our kababayan are still into operating a traditional type of business.   To help new entrepreneurs understand the process flow of registering a business, here is a systematic diagram that will save you time and resources to make your business legal.

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Starting A Small Enterprise : Process Flow

Look Within: Do you have what it takes?

Look outside: What are the helping/hindering

factors?

Determine your product/service line

and type of business

Write your business plan

· Marketing Aspects
· Technical (Production) Aspects
· Organizational Aspects
· Financial Aspects

Raise capital

Seek other sources of assistance if necessary

Choose your business location

Register your business

Hire/train personnel

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Risk of Going Into Business

Possibility of failure

There is always the possibility of failure – a single wrong business decision can bring a business to bankruptcy.

Unpredictable business conditions

A small business is vulnerable to sudden changes in the business environment. In a fast-paced industry, a small firm may not have the financial capability or the organizational capacity to respond adequately to new opportunities and their concomitant problems.

Long hours of work

A prospective entrepreneur must be ready to spend most if not all his waking hours in the business. Also, family time and personal affairs may be sacrificed.

Unwanted or unexpected responsibilities

The entrepreneur may eventually find himself saddled with management responsibilities he did not bargain for.

‎"Farmers who wait for perfect weather never plant. If they watch every cloud, they never harvest." (Ecclesiastes 11:4) You must be willing to make decisions in your small business. The Christian Entrepreneur believes that life is not for the faint hearted. Modern business requires that major commitments be made. Generally, there isn’t sufficient information available in order to totally justify decisions. Therefore, the Christian Entrepreneur must become a calculated risk taker. There is significant Biblical foundation for taking risks. The Christian Entrepreneur is drawn to a life of adventure in service, but recognizes that the price of the adventure will be occasional failure and set-backs. Remember "Trying and failing is better than failing to try." 

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Rewards of Going Into Business

Having unlimited opportunity to make money

When you have your own business, you will most certainly have unlimited potential to earn money. How much money you earn depends on the time and effort you put into your enterprise. Successful entrepreneurs have earned their wealth and prestige through hard work and by having the right product for the right market at the right time.

Being your own boss

As manager of your business, you make the decisions for your enterprise and take full responsibility for these. The quality of these decisions will translate  into either gain or loss for your business. Being your own boss means you are in control of your future. You have a better grasp of what you want to be.

Tapping your creativity

A business usually starts out as an idea. You will have the opportunity to harness this creativity and turn your idea into products and processes.

Overcoming challenges and finding fulfillment

Starting a business is by itself an accomplishment. Running a business tests an entrepreneur’s capability in securing and managing resources. How well a business turns out depends on the owner’s ability to face challenges and overcome difficulties.

Helping others

In the process of running a business, an entrepreneur employs workers, and pays them income which improves their lives. An entrepreneur who succeeds and grows also helps suppliers, sub-contractors, dealers and other businesses connected to him succeed and grow too.

Building an entrepreneurial legacy

A business can be a lasting legacy to the family. It can ensure employment for some members of the family. It can create an enterprising culture than can be handed down through the generations.

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Why Go Into Business

Entrepreneurship is a way of life. Being entrepreneurial means being able to identify, start, and maintain a viable and profitable business, particularly a small enterprise. People spend most of their lives working for someone else. Some people eventually rise to positions of wealth and power, while the rest languish in unchallenging and low-paying jobs. On the other hand, there are a select few who strike it out on their own rather than work for others. They put up their own enterprise.

You may ask: “Why should I risk my resources in an unpredictable business when I could hold a stable job with permanent tenure and an assurance of a regular monthly income without any risk?” In other words, why be an entrepreneur rather than an employee? Having your own business has tremendous rewards, but be sure to weigh prospective returns against potential risks and losses.

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Groundbreaking - the journey begins!

ALTHOUGH I have thoroughly enjoyed working in corporate world, I have reached a juncture in my career where it is time to examine new opportunities. My heart pulls me to a direction where there is Time Freedom and Financial Freedom. I am going to be an Entrepreneur. I want to build a network of individuals who likewise dream of building a niche of mutual support for business owners seeking to honour God through their lives and business; a relationship-based process for mentoring, spiritual friendship and encouragement to live a life that integrates faith with business and a platform for practical learning on how to be effective in a life of faith while being successful in the marketplace; a collaboration to release money, time and talents for social and spiritual ministries. That's my mindset and my heart-set for the greater glory of my God and King! Shine Jesus shine!

“Faith without works is dead.” James 2:26 (KJV) You can’t just pray for success. Develop a plan and work your plan. If you can do something about your situation, then do it. Stop making excuses, stop procrastinating, and do it!

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