For many Overseas Filipino Workers (OFWs), the idea of starting a business back home in the Philippines is an enticing dream. After years of hard work abroad, it’s understandable that OFWs would want to secure a future for their families and achieve financial independence. But let’s face it: starting a business is not a simple task. It’s a journey that requires careful planning, strategy, and the right resources. In this guide, I’ll walk you through the key steps and challenges OFWs need to consider when preparing to launch their own business back home.
The Challenges OFWs Face in Starting a Business
Many OFWs envision using their hard-earned savings to launch a business in the Philippines, but the reality often involves navigating various hurdles. Some of the common challenges include:
- Access to Capital: How do you secure enough funds to start a business, especially when dealing with tight budgets or limited access to loans?
- Management Issues: Who will manage the day-to-day operations of your business, especially when you’re far away? How do you ensure the business runs smoothly without you constantly overseeing it?
- Local Market Knowledge: Being away for years, many OFWs are disconnected from current trends in the Philippine market. This can make it difficult to spot business opportunities or even understand consumer preferences.
But don’t worry! With the right approach and resources, these obstacles can be overcome.
Key Steps OFWs Should Take to Prepare for Their Own Business
Starting a business as an OFW is no easy feat, but it’s not impossible. By breaking down the journey into manageable steps, you can approach it with confidence. Here’s a roadmap for success:
1. Evaluate Your Skills and Interests
Before diving into the world of business, ask yourself: What skills do I have that I can turn into a business? Many OFWs have learned valuable skills abroad, whether it’s in nursing, cooking, engineering, or teaching. The most successful businesses often stem from expertise, so identifying your skills and interests is a crucial first step.
- Nurses often open health-related businesses, such as clinics or wellness centres.
- Chefs can launch restaurants, catering services, or even cooking schools.
- Teachers might consider offering tutoring services or educational workshops.
Aligning your business with what you already know and enjoy will give you a head start.
2. Understand the Philippine Market
Having been away for some time, it’s easy for OFWs to lose touch with what’s currently trending in the Philippines. A great way to bridge this gap is by researching the Philippine market and understanding consumer needs. Whether it’s demand for a certain product or service, or discovering untapped business opportunities, knowing your market is essential.
Tips for Market Research:
- Talk to locals: Reach out to your family and friends back home. Get their perspective on what businesses are thriving or failing.
- Study competitors: Look at businesses in your area and learn from their successes or mistakes.
- Attend trade fairs and events to see what’s trending in the market.
3. Secure Funding and Financial Support
One of the most significant barriers for OFWs is access to capital. However, there are several financing options available for returning workers, including special OFW loans offered by banks and nonbanking institutions. For example, Global Cebuana offers tailored loans with low interest rates and fast approval to help OFWs start their businesses.
To avoid financial stress, here’s a practical guide to raising funds:
- Save a portion of your income while working abroad.
- Consider applying for an OFW loan to boost your capital.
- Explore government programs designed to support returning workers, such as the Overseas Workers Welfare Administration (OWWA)’s livelihood programs.
4. Create a Solid Business Plan
A well-thought-out business plan is critical to your success. This blueprint will help guide your decisions, attract potential investors, and provide a clear path forward. Your business plan should include:
- Business overview: What products or services will you offer, and why?
- Market analysis: Who is your target market? What are their pain points?
- Operations plan: How will the business be run daily?
- Financial projections: Estimate your startup costs, expected revenues, and profitability.
The business plan is not just a document to present to banks and investors—it’s your roadmap for success.
5. Find Reliable Partners and Staff
If you’re going to run a business from abroad, trust is key. Having the right people back home who you can rely on is essential. Whether it’s a business partner or trusted staff, you’ll need individuals who can effectively manage your business.
What to Look For in Partners:
- Shared values and goals: Ensure that the people you partner with align with your vision for the business.
- Reliability: You need someone who can handle day-to-day operations without constant supervision.
- Expertise: If you can’t be physically present to manage the business, make sure your partner or team has relevant industry experience.
6. Stay Informed and Adapt to Changes
Even after launching your business, your work isn’t over. Staying on top of industry trends and consumer behaviour will help you maintain your competitive edge. You should regularly revisit your business strategies, adapt to market demands, and adjust your offerings accordingly.
For example, if you’re opening a restaurant, you may need to adapt your menu or services based on seasonal demand or local events. Flexibility and responsiveness are key traits for any successful entrepreneur.
Specialty Businesses OFWs Can Consider
Many OFWs tend to venture into sectors that align with their professional backgrounds. For instance, nurses often open health clinics or wellness centres, while chefs consider opening restaurants or catering services. These types of businesses allow OFWs to utilise their skills, while also fulfilling market needs.
However, it’s essential to assess the local demand and the business environment before diving in. Opening a cold drinks shop in an area with cold weather year-round might not be the best idea. Location, seasonality, and market trends play a crucial role in the success of any business.
Conclusion: Beyond Profit—Creating Value for the Community
Starting a business is not just about making money; it’s also about creating value for your family, community, and even the country. OFWs who go back home with a vision of improving the lives of those around them will be more successful in the long run.
By focusing on creating businesses that contribute to the community’s wellbeing, you ensure that your entrepreneurial journey goes beyond just profits. A business that adds value will not only thrive financially but will also inspire and uplift others.
