Friday, February 27, 2009

How To Build An Emergency Fund And Why It Is Important

Having an emergency fund is a necessity for everyone. It’s quite common sense to always have readily available cash for unforeseen expenses.

However, despite this fact, many do not have an emergency fund. And even if they do, it’s usually not enough.

I asked some friends if they have an emergency fund and fortunately, 6 out of 10 have one. Nevertheless, only 2 of them have more than one month’s worth of expenses saved. Which brings us to a common question about emergency funds:

How much money should you save and keep as your emergency fund?

There is no precise answer to this question. But it’s best practice to have at least 3 month’s worth of your usual monthly expenses saved. The optimal amount actually depends on the stability of your income sources. Single regular employees are usually good at 3 months but married professionals should consider having at least 6 to 12 months worth of expenses as their emergency fund.

I guess the most practical way to know how big your emergency fund should be is to answer the question: If you lost your job now or if your business closes down, how many months will it take you to find new work or start a new business?

An emergency fund is something we never really think about until the time comes when you need it. So spare yourself of the stress and avoid the unnecessary worries by building one as soon as possible.

One more thing, never think of your credit card as your emergency fund.

So how do you build an emergency fund? There are five basic steps.

Step 1: You have to track your expenses. You need a comprehensive look at your monthly spending to determine your personal costs of living.

Step 2: Assess your needs. Evaluate your financial status and decide how many months should your emergency fund be.

Step 3: Decide where you’ll keep it. It's usually best to open a separate personal savings account with ATM access for your emergency fund.

Step 4: Start saving. You can initially pay yourself first, then move on towards doing other money saving activities.

Step 5: When you reach your goal, continue saving and build it more.

I believe that the last step is very important. When you reach your goal, don’t stop and continue to build your emergency fund. There are a couple of good reasons why you should do this.

First, as time goes by, your cost of living increases - you get married, you have kids, inflation happens, etc. When these occur, your emergency fund should adjust accordingly. By continually adding more cash to your emergency fund, you can then confidently “upgrade your lifestyle”.

Second, your emergency fund can alternatively act as your investment fund. When very good opportunities come your way, you’ll have extra money that you can comfortably risk on an investment.

source:; photo from

How Banks Work

The funny thing about how a bank works is that it functions because of our trust. We give a bank our money to keep it safe for us, and then the bank turns around and gives it to someone else in order to make money for itself. Banks can legally extend considerably more credit than they have cash. Still, most of us have total trust in the bank's ability to protect our money and give it to us when we ask for it.

How do banks make money?

Banks are just like other businesses. Their product just happens to be money. Other businesses sell widgets or services; banks sell money -- in the form of loans, certificates of deposit (CDs) and other financial products. They make money on the interest they charge on loans because that interest is higher than the interest they pay on depositors' accounts. The interest rate a bank charges its borrowers depends on both the number of people who want to borrow and the amount of money the bank has available to lend. At the same time, it may also be affected by the funds rate, which is the interest rate that banks charge each other for short-term loans to meet their reserve requirements.

Loaning money is also inherently risky. A bank never really knows if it'll get that money back. Therefore, the riskier the loan the higher the interest rate the bank charges. While paying interest may not seem to be a great financial move in some respects, it really is a small price to pay for using someone else's money. Imagine having to save all of the money you needed in order to buy a house. We wouldn't be able to buy houses until we retired!

Banks also charge fees for services like checking, ATM access and overdraft protection. Loans have their own set of fees that go along with them. Another source of income for banks is investments and securities.

Why does banking work?

Banking is all about trust. We trust that the bank will have our money for us when we go to get it. We trust that it will honor the checks we write to pay our bills. The thing that's hard to grasp is the fact that while people are putting money into the bank every day, the bank is lending that same money and more to other people every day. Banks consistently extend more credit than they have cash. That's a little scary; but if you go to the bank and demand your money, you'll get it.

The key to the success of banking, however, still lies in the confidence that consumers have in the bank's ability to grow and protect their money. Because banks rely so heavily on consumer trust, and trust depends on the perception of integrity, the banking industry is highly regulated by the government.


How to put up a pawnshop business

As promized, here's the manual on how to put up a pawnshop business. I bought this from TRC e-library.


I tried to make a thorough research on this one, but sources are limited. I will try to add info once I get more details.

  • Call Bangko Sentral ng Pilipinas (BSP) pawnshop hotline, (02)524-8713, to check if the pawnshop name you want is already taken.
  • Register your business either at the Department of Trade and Industry (DTI) for single proprietorship, or the Securities and Exchange Commission, for partnerships or corporations.
  • Only Filipinos may own a pawnshop organized as a single proprietorship. For partnerships and corporations, foreign ownership should be limited to 30 percent.
  • Secure a business permit from the city or municipality where pawnshop will be located.
  • Register with the BSP. For the complete checklist of registration requirements, check here. These include permits from the DTI or SEC and the local government, an information sheet, personal data sheets, bank certification of at least P100,000 capital and location sketch.
  • Sample copy of signage.
  • Sample copy of pawn ticket.
  • Letter of authority to transact and/or receive BSP Acknowledgment of Registration.
  • Pay the processing fee of P1,000.

It will take two to three weeks for the BSP to process your application. Make sure you open your business within six months after the application is approved or your permit will be revoked.


How Pawnshops Work

A pawnbroker makes loans on personal property left as collateral. The property can be redeemed when the loan plus interest is repaid.

The interest rates for pawnshops, may range from 5% to 7% a month. Loans can usually be renewed, but only if the interest for the original period has been paid.

Pawnbrokers will accept a variety of personal property as collateral. Aside from jewelry items and appliances, most pawnshops accept electronic gadgets such as mobile phone, digicam, videocam, magic sing, and the like. Inquire from the pawnshop nearest you for the other items accepted for pawning. Pawnshops won't lend more money than they think they can get if the pledged item is not redeemed and has to be sold. They would need to test the item you submit so that they can give you the proper appraisal value for your item.

When a pledged item is not redeemed, brokers are required to notify pawners that the loan period has expired and to give them a final opportunity to redeem their personal property before the broker has the right to sell the item. Foreclosed items are offered for public auction. The auction schedules are published in various tabloid newspapers. To avoid foreclosure, you need to renew or redeem your item on or before the expiry date.

If, for some reason, you lost your pawnticket, you can still renew or redeem your item by immediately informing your branch of the loss so that they can prevent redemption by unscrupulous individuals. During renewal or redemption, you need to present a notarized affidavit of loss and valid IDs.

source:, photo from

Thursday, February 26, 2009

How to Register Your Business in the Philippines

If you are putting up a business in the Philippines, it is mandatory to register it before you start operating. If it is a sole proprietorship, you have to register with DTI (Department of Trade and Industry). If it is partnership or corporation, register with SEC (Securities and Exchange Commission).

I. Business Name

You have to choose your business name carefully to distinguish it from your competitors. Your name must describe the nature of your business. It is your identity in the marketplace.

A. Choose a business name - Think of at least 3 business names

Guidelines for acceptable business names:

  • The root word or words of the name shall be considered.
  • Describes the nature of business
  • Comprised solely of letters and/or numerals
  • Punctuation that are part of English and Filipino language

Names that are not acceptable:

  • Those which are or whose nature of business is illegal, offensive, scandalous, or contrary to propriety.
  • Those which are identical or which nearly resemble business names already registered with government office authorized to register names.
  • Names composed purely of generic words.
  • Names by which by law or regulation cannot be appropriated.
  • Distinguished or suggestive of quality of any class of goods, articles merchandise or service.
  • Abbreviation of names of any nation, inter-governmental or international organization
  • Names which are misleading, deceptive or which misrepresent the nature of business

B. Search for a business name - You may use DTI Online Search Engine to ensure that your preferred name has no similar or confusingly similar to existing registered names.

C. Register your Business Name - Visit the DTI Office in the area where you will put your business.

  • Fill out application form with your proposed business name signed by yourself, your representative, or authorized by a special power of attorney.
  • Submit 2 identical 2 x 2 id pictures taken not more than a year prior to your application.
  • If your name suggests an alien nationality, present a copy of your birth certificate, voter’s id or passport for proof of citizenship.
  • If you are naturalized citizen, present the original copy of your naturalization certificate and oath of allegiance or ID card issued by Bureau of Immigration and Deportation.
  • If you are a franchise holder, present a photocopy of franchise agreement.
  • Pay the processing fee of P300 and P15 for documentary stamp.

II. Register Online at
  1. Fill out application form by typing the required information.
  2. Submit online and you will receive transaction reference number acknowledgment via e-mail.
  3. Submit the necessary documentation mentioned in the acknowledgment in DTI office in your area. The reserve business name online is valid up to 3 working days only.
  4. Pay your application. Processing fee of Php300 + Php15 documentary stamp.

For partnership and corporation register with SEC and submit the following:


  • Name verification slip
  • Articles of partnership
  • Affidavit of undertaking to change name
  • Filled out application form
  • Filing fee depends on your capitalization
  • Or gross receipts after operation
  • Other fees: bylaws fee p 210.00, stock & transfer book 300.00, documentary stamp 100.00

Stock Corporation

  • Name verification slip
  • Articles of incorporation and bylaws
  • Affidavit of undertaking to change name
  • Treasurer’s affidavit
  • Bank certificate
  • Authority to verify bank account
  • Filled out application form

Non-Stock Corporation

  • Name verification slip
  • Articles of incorporation and bylaws
  • Affidavit of undertaking to change name
  • Resolution of the board of directors that the corporation will comply with the requirements of non-stock corporations
  • Members undertaking
  • List of contributors certified by the treasurer
  • Certificate of bank deposit of at least P100,000
  • Representing initial contribution
  • Filled out application sheet

What’s next?

III. Mayor’s Permit

Now that you already have your business name, next thing to do is to secure local permits. For your Mayor’s Permit you will need:

  • Barangay clearance & Barangay Business Permit from where your business is located
  • Contract of lease, if any
  • Registration certificate from DTI or SEC
  • Sketch of your location
  • Community tax certificate
  • Fire safety certificate issued by the Bureau of Fire and Protection.

Mayor’s permit cost varies depending on your municipality and type of business.

IV. Tax Registration

After registering your business name and securing mayor’s permit, you have to get Tax Identification Number (TIN) from BIR (Bureau of Internal Revenue).

Documents needed for TIN application:

  • Filled out BIR forms 1901/1903
  • Sketch of your location
  • Photocopy of mayor’s permit
  • Registration certificate for DTI or SEC
  • Articles of incorporation or partnership (not applicable to sole proprietorship)
  • Branch/es must present certificate of registration of the main office
  • Other things to work with BIR:
    • Register book of accounts
    • Request authority to print receipts
    • Request authority to use cash register

Registration fee is P500 + documentary stamp tax 1% of the subscribed capital for corporation.

V. Social Security System

Business owners must secure employer registration number and report all employees for coverage at the Social Security System. Sole proprietors should submit filled out SSS form R-1 for employer registration and SSS Form R-1A for employees listing. While partnership and corporations must submit copies of articles of partnership or articles of incorporation and accomplished form R-1 and R-1a.

Now that you have finally and legitimately registered your is now your chance to get ready for greater and bigger things to embrace.


Get Creative in Recycling

Now with some creativity, earning more money from waste is within every Pinoy family’s reach. Ever heard of Bazurabags? How aboutvermi-casts, organic fertilizers, briquettes, and flower pots out of sando bags and polystyrene? These are garbage, recycled and converted to “new” products, with the potential to rake money for the “creative entrepreneur”.

Take the case of the K.I.L.U.S. Foundation (in Barangay Ugong, Pasig), makers of the internationally-famous Bazurabags. K.I.L.U.S. Foundation is an association of the women of Barangay Ugong, who pioneered the search for livelihood opportunities from garbage, converting non-recyclable juice containers to colorful, fashionable bags.

Who would have thought that discarded doy packs could again be made useful? The women of K.I.L.U.S. Foundation did, and now, they are earning dollars from the bags. So for families with doy packs to discard, sell them to the K.I.L.U.S. Multi-purpose Environmental Cooperative at 36 C. Santos St., Ugong, Pasig City, or contact Ms. Editha Santiago, Chairperson of the Foundation.

The municipality of E.B. Magalona even uses doy packs creatively (and colorfully) for pedicabs and office chairs.

We have covered doy packs, so let’s go to another type of plastic, the sando bags. Sunday markets will not be complete without having to go home with sando bags. Since 2004, the Environmental Management Bureau of the Department of Environment and Natural
Resources launched a campaign dubbed, “Mag-Bawas Balot, Bawas Basura Tayo!”, targeted to minimize the use of sando bags among market vendors, and buyers, to prevent plastics from clogging esteros and canals.

Yearly, 330 kilometers of rivers and esteros, and sewerage, are being de-clogged of plastics, and 2,100 kilometers of roads being swept of 6 tons of garbage – a problem needed to be addressed by proper waste management, and by waste AVOIDANCE.

Used sando bags can be sold in volume, can be recycled, and melted to become useful products like flower pots and foot walks.

Used sando bags, other plastics, and even polystyrene (styropor) are melted using the Styro-Oven, a technology developed by the Industrial Technology Development Institute of the Department of Science and Technology (DOST) which melts polystyrene and plastic materials with used cooking oil to become useful products such as tiles, panel boards, table tops, synthetic, lumber, school desks, and chairs. These are school and office furniture people would readily buy. In fact, some of these tiles will be used at the Pasig River linear parks!

Corn husks are transformed into dolls and accessories, while concrete products are also being produced from the integrated solid waste management facility located at the Sitio Pantay, Dalig, Teresa in Rizal.

Money equals Advocacy

Managing and selling wastes as not just about the money, it is also about the environment. When we segregate wastes, place them in MRFs, or recycle them into functional pieces, not only are we earning money but we are taking part in the global campaign to save our

It also means having to follow (while earning) the Ecological Solid Waste Management Act of 2000 (Republic Act 9003), a law about the control, transfer, transport, processing, and disposal of solid waste in the country. In short, it is like hitting two birds with one stone.

From trading garbage at the waste markets to making crafts out of it, people are really earning cash from trash. When we do our share in segregating and recycling our garbage, we help in putting a stop to the 30 years garbage problem our country is facing, and at the same time, earn from it.

Earning money from garbage is easy, you surely will never look at garbage the same way again – for now, garbage has become a valuable resource.

For more information on how to manage wastes, contact the National
Solid Waste Management Commission – Secretariat, Environmental
Management Bureau – DENR, 2nd Flr., HRD Building, DENR
Compound, Visayas Avenue, Diliman, Quezon City, Telephone
numbers: (632) 920-2252, 920-2279, 925-4796 / 925-4797 local 3.


Monday, February 23, 2009

When Recession Equals Opportunity

It's a sad fact that pretty much everybody knows people who have lost their jobs in this recession. But sometimes, hard times can turn into opportunity. An article in USA Today states that a recession is a great time to start a business.

Did you know that Trader Joe's, Disney and Hewlett-Packard started during recessions? But it's not just big companies arising in troubled times. Many mompreneurs view the recession as an opportunity to launch their businesses. Starting a business at any time is hard work. But these economic times create a fierce desire for success. Many moms are rethinking their careers after being let go or thinking about what career move works best for their families, and more than a few are choosing to chase their dreams rather than be at the mercy of an employer. After losing their jobs, what do they have to lose?

Certified meeting planner Cynthia Capizzo has worked in the meeting and event planning business for 15 years. In the back of her head, she always wondered why she didn't work for herself. But being a wife and mom, it didn't seem practical to leave a steady job to become an entrepreneur. That was, until a golden handshake turned into a golden opportunity. Capizzo was recently laid off when the company she worked for was slated to close due to the poor economy. While at first concerned about her future, Capizzo decided it was time to launch her dream. She is now launching CC Meetings & Events, the business she always dreamed of. In Capizzo's business, she doesn't need lots of startup capital. She just needs a great network of contacts and venues, which she's built over the span of her career. Because she works from home and isn't carrying a team of employees, she can keep prices down for customers but still offer them the same great service. While Capizzo is nervous about the future, she's excited to launch her new company and views the current economic milieu as a great opportunity to do so in her particular market.

Jennifer Smith and her partner Christy Perez spent more than a year developing a great business idea that wasn't able to take off because of the failing economy, so they put the idea on the shelf with the intention of dusting it off when things improved. Both of their husbands had been able to support their families and allow both women to be stay-at-home moms. But when their husbands took major pay cuts to keep their jobs, Smith and Perez realized it was time to step up and bring in some supplemental income. They decided to start their business during their down time on a smaller scale using another business's space. Their business, Kids Learn And Play, provides a sort of "mom's morning out" four days a week from 9 a.m. to noon. During that time, kids ages three to five participate in fun games, physical activities, crafts, music and dance while they learn about nutrition, manners and foreign language. Because they couldn't afford their own space, they rented one from a gymnastics studio that needed some extra money. They've been able to help out in their community, improve the health and minds of some great kids, give parents an affordable option to full-time daycare and make the extra money their families need.

Jennifer Parris started Celebrity Parents Magazine after losing her job. Colleen Leader started when her family needed another income. The list goes on and on. These moms decided to stop being at the mercy of an employer and pursue their dreams.

If you're considering taking advantage of these economic times and embarking on your way to becoming an entrepreneur, stay focused with these steps:

  • Create your vision for your business.
  • Create your business plan. Make sure that there's a need and that you can fill it and make money.
  • Create a budget and make sure you can afford to launch your company. The company will require a financial investment, and you'll have to learn to live without steady income.
  • Create an action plan and go for it. Don't be another person with an idea that never comes to pass.
Remember, challenging times for some mean opportunities for others. Change your mindset and push your fear aside. In today's market, you can find amazing deals on office space, amazing men and women looking for employment and a society that wants to believe in something.

Ask yourself how you can create opportunity where others see none.


Friday, February 20, 2009

Cross-stitching anyone?

I started cross-stitching way back college days and I still continue up to now. I find it very fun and rewarding. I bought an angel pattern (Angel of Grace) last November 2008, and now it's done. I just need to set aside some bucks and get it framed.

There are so many free patterns online! Now you can also convert your favorite photo into a cross-stitch pattern without purchasing stitch-a-photo software and the like. So if you have a favorite photo or a favorite postcard that you would like made into a cross stitch pattern, you can try uploading them through pinoystitch.

Your photos should be in jpg format. If you are not sure your photo will make a good pattern, you can email them your photo and they will give you immediate feedback. Your photo to pattern service includes a generated image of the finished pattern plus a PDF file of easy to follow chart with estimated floss usage. It would take around 2 - 3 business days for the cross stitch chart to be delivered to your email.

When charts are finished, they will email you the generated finished picture, chart floss information and invoice. Only pay for it when you are happy with the output after which you will receive the rest of the chart in email. Prices range from $3 - $5.

Thursday, February 19, 2009

Franchising Business

Franchising is a business model where a person buys the license to do business under an existing business’ trademark and methods in exchange of a royalty fee.

Franchise Opportunity Checklist:

Step 1: Do I Really Know Myself?
  • What are my natural aptitudes, skills and talents?
  • Am I physically and temperamentally suited for self-employment?
  • Do I have the ability to work hard?
  • How will my family be affected by my decision and the calls the business will make on my time?
  • Do I mix well with people?
  • Am I prepared to deal with difficult employees and customers?
  • Do I possess sufficient financial resources to enable me to start a business and survive while it is struggling to become established?
  • Am I able to raise sufficient finance?
  • Am I prepared to put whatever assets I now possess at risk?
  • Will the business be sufficiently challenging for me? Does it excite me?
  • Am I prepared to handle the everyday details of running a business?
  • Am I determined enough to succeed?
  • What do I want to achieve in life?
  • What am I looking for - Job satisfaction? Capital gain? To earn lots of money? An investment (absentee owner)?
Step 2: Do I Understand the Business?
  • Has the franchised business been thoroughly proven in practice to be successful?
  • Are the products/services new?
  • Will the products/services appeal to the Philippine marketplace?
  • Does this business have staying power?
  • Is it in a growth area?
  • Is that growth a fad or mere fashion and thus transient?
  • Is it, alternatively, in an area of decline?
  • How compet1t1ve is the market for the particular products/services?
  • How compet1t1ve is the price of the product/service?
  • Can this compet1t1veness be maintained?
  • What is the source or supply of the goods?
  • Will the products need to be imported?
  • What are the duties and restrictions for any importation?
  • Are alternative local sources of products/services of comparable quality available?
  • Are the products/services based upon a trademark?
  • Is there adequate back-up in terms of guarantees and service facilities?
So if you are willing and able to start a business, but you can’t come up with a good idea, then franchising is an option. You can contact reputable franchising groups like the Association of Filipino Franchisers and the Philippine Franchise Association , or visit gonegosyo's Franchising Section.

Word of advice: Beware of franchise scams. Make sure that the franchise being offered to you has a good track record, complete with a support organization. It should have successful stores and outlets already running in established locations. As a potential franchisee, you must not be in a hurry to dive into a franchise, especially those offered by glib-tongued individuals, lest you lose your lifetime savings. You must do your own homework and research first.

source: Business Line Vol. 2 No. 4 2004 A Special Publication for Plantersbank Clients and Friends posted by maneki_neko at, Photo from

Seminars and Training Programs

There are agencies who offer detailed and specific training programs on livelihood skills and technologies, as well as business management. Should you be interested in attending these programs, you can call the following organizations or visit their websites:
  • PTTC tel # (02) 4688962-64, 8319988
  • TRC tel # (02) 727-6205 loc. 208, 209
  • TESDA tel # (02) 8175030, 8153360
  • UP-ISSI tel # (02) 9287076-79
  • Nego-skwela tel # (02) 4330637 / 4330621
  • Business Coach tel # (02) 727-5628 / 727-8860
  • ABS-CBN Bayan Foundation tel # (02) 929- 3273 local 241/ 410- 3453
You can also download the DTI-PTTC 2008 Compendium of HRD and Entrepreneurial Training Program here, which is a list of all the training and entrepreneurship development programs being offered by government agencies which seek to provide existing and potential entrepreneurs with the necessary skills and knowledge to become competitive players in the local or global market.

Some schools such as Entrepreneurs School of Asia {tel # (02) 638-1188} offer undergraduate and graduate courses for students and aspiring entrepreneurs alike who truly want to pursue a more thorough, practical and systematic understanding of entrepreneurship.


Where can I get capital for my business?

Start-up businesses can get capital by seeking loans from formal lending institutions like banks/ rural banks, cooperatives or Micro-Finance Institutions (MFI’s).

However, some budding entrepreneurs don’t access conventional financing because of fear of documentary requirements, lack of collateral, or inexperience. They end up digging into their savings, maxing out their credit cards or mortgaging their homes. In fact, home-equity loans are one of the most popular borrowing routes.

But there are other ways of getting capital funding. One is borrowing against your insurance policy -- provided it is a cash-value life insurance. It cuts the value of your insurance benefit, but if you’re relatively young, you’d still have a long time to pay it back. Interest rates typically run in single digits.

If you’re an employee, you can also access other sources of low-cost cash through your state pension funds – SSS or GSIS salary loans or a PAG-IBIG Fund Multi-Purpose Loan . They usually let you borrow at the prime rate, but PAG-IBIG’s interest is relatively the lowest. The Department of Trade and Industry has come up with a list of financing options for entrepreneurs.

Pawnshops are also viable sources of funding, and are very accessible. But starting a business is a serious venture and it’s hard to start one using a high-interest loan as capital.

Another popular non-formal way to get funding, but which is discouraged, is through five-six loans. This means for every five pesos you borrow, you pay back six pesos after just a few days. Effectively, it is said to be more than 1000% interest rate on an annual basis. So ask yourself if you want to borrow at that rate when you start a business.

Lastly, you could always try to borrow from your family, friends or relatives, but use this only as your last resort, since there is risk of starting a family feud. Doing business with family is still doing business, so remember to put everything on paper to avoid unnecessary complications.

Keep in mind that money is not the only capital that you have. Your business skills – your capacity for marketing, people and social skills, technical expertise, even your connections – can be used as capital for your business. Sometimes, by being resourceful, you lessen the need for loans and other expenses.

Aspiring entrepreneurs should start small, but dream big. Starting small minimizes the financial exposure and the risks involved in business start-ups. In fact, many successful entrepreneurs nowadays have their inspiring stories to share as most of them started small, either from one small store or peddling operations. By learning from their mistakes and keeping true to their vision, they were able to overcome obstacles and grow their business. Because of their determination, creativity, forecasting skills, and vigilance in reinvesting their profit into the business, these icons and role models have shown that it is possible to become successful.


What is a business plan (with template)

A business plan serves to:

  1. Outline your foreseen company's finances, management team and marketing strategy.
  2. Present plans on how your idea will be commercialized.
  3. Prove your ideas’ financial viability.
If you are to avail of loans and other financing options, a business plan tells the lender why and how your business will be able to earn enough money to repay them within their terms.

Writing down your ideas and plans also takes out the guesswork. Consider the following questions:
  • Which consumer need/s will your service or product address?
  • Who are your potential customers and why will they purchase from you?
  • How will you reach your potential customers? How will the idea be transformed into a viable product and brought to market?
  • Where will you get the financial resources to start your business?
A rock-solid business plan does not only convince a lender that your idea can do well; as you develop it, even in writing, it teaches you a lot about the business you’re going to go into along the way.


Download: Business Plan Template

(courtesy of buckup from entrep PH)

How do I start a business?

A good business venture starts with a good idea; the more creative or unique it is, the better. Good ideas don’t need to be totally new, but it has to be different or better than existing product or service offering and offered at good value to make your venture competitive.

Conduct a competitive analysis of your market and industry, trends, specific consumer insights and needs, products/brands that address those needs (if at all or maybe partially), their pricing, quality, promotions, distribution, service. Be aware of the outside influences that affect your business. You must be able to clearly identify your target market, product differentiation, product positioning (or the unique selling proposition) why the market should buy your product, your projected sales volume and revenues, your distribution channels, your costings, sources of materials, labor, capital, your expected profits, and project this year-by-year. Many good ideas fail as businesses because aspiring entrepreneurs overlook the nitty-gritty of starting a business.

Having a business that truly interests you is a plus. Like having a job, having a business you’re not interested in will easily wear you out when problems arise. Make sure that you have a passion for owning a business and for the particular business you’re planning.

If you’re really interested, willing and able to start a business, but you can’t come up with a good idea, franchising is an option. Franchising is a business model where a person buys the license to do business under an existing business’ trademark and methods in exchange of a royalty fee. You can contact reputable franchising groups like the Association of Filipino Franchisers and the Philippine Franchise Association.


Wednesday, February 18, 2009

Tocino Recipe

Tocino or tosino is a cured meat product native to the Philippines. It is usually made out of pork and is similar to ham and bacon. It is often reddish in color and has a sweetish taste. Its name derived from the Spanish word tocino, which is used to describe bacon or cured meat.

I prepared tocino yesterday and it was my first try. I bought 1 kilo of pork (pigue) and 1/4 pork fat sliced into 1/4-inch thick. I researched (online) for its recipe but I found out that some of the ingredients are not available at our public market, so I experimented a bit. I didn't put any food coloring.

  • 1 kilo of pork and 1/4 kilo of pork fat, sliced into 1/4 inch thick
  • 1-1/2 tablespoons of salt
  • 10 tablespoons of brown sugar
  • garlic powder
  • black ground pepper
  • 100 mL of soda (i used sprite)
  • 400 mL pineapple juice
  • vetsin
  • Combine sugar, salt, pepper, vetsin and garlic powder.

  • Coat the sliced pork evenly in the mixture. Put in a container then pour soda and pineapple juice. Cover it and keep refrigerated for at least 24 hours.

I just cooked it with water, not oil. Well, my mother liked it. I also shared some to my friends. This is one of my favorite dishes so it doesn't really matter to me if it's served 3 meals a day :) Too bad I forgot to take a photo..maybe next time.

Pinoy Fear Factor: Fearless Four

I've been following this show for some time now. There are only 4 participants left. Who do you think will emerge as the ultimo participante?

The other night, I saw how frustrated Manuel was. He obviously made the wrong strategy and he also hurt his leg, and now he is in danger of being eliminated. But when I saw Janna's performance last night, I also felt sorry for her, though I wanted Jommy and Manuel to compete.

I used to like Jommy before, but when I saw how happy he was and the way he laughed when he learned about Manuel's poor performance, I was annoyed and I wanted to spank him hehehe :) We shouldn't take pleasure from other's misfortune, right? But I do understand it's a competition.

About Marion, well, he topped last night. He was able to finish the stunt successfully. But I hate it when he always say, "You're going down Manuel." I'm a Manuel fan, you know :)

So who do you think will go home tonight? My guess would be Janna.

Tuesday, February 17, 2009

List of Recycling Centers


Philippine Recyclers, Inc.
Ramcar Center, Roces Ave.,
Diliman, Quezon City
Mr. Irving Guerrero/Mr. Steve Ofilanda
+632 3701000

Philippine Batteries Incorporated
Mr.Poe C. Alcazaren
Manila +63-2-3739158, +63-2-3737912


HMR Super Surplus Bodega
Pioneer cor. Reliance St.,
Mandaluyong +632 6340526
*electronics, base metals, computer/appliance recycling, telephone systems, racking & shelving, precision testing, spare parts

YGARC Trading Co.
2/F 8434 Perpetua Bldg.
Dr. A. Santos Ave., Sucat, Parañaque
+632 7880102, 7880156, 8252077 or 09189183237

HMR Group of Companies
Days Star Industrial Park, Pulong
Sta. Cruz, Sta. Rosa, Laguna
+632 5208618 to 19 (Manila)
+6349 8370577

Alzul Junkshop
Los Baños Laguna
Alain C. De Venecia
+63-49-5452364, +639212947105


Lucky Tableware Factory, Inc.
Guadalupe, Cebu City
Engr. Edmundo Solon
+6332 2541341

Asia Brewery Inc
Km 43 National Highway,
Bo. Sala, Cabuyao, Laguna
Mr. William Tam
+6349 8102701 to 10 (Laguna)
+632 8163421 to 25 or 8165116 (Manila)

Arcya Glass Corp.
22nd Floor Herrera Tower, 98
Herrera St. cor. Valero St., Salcedo
Village, Makati
Mr. Lee Ning Lee
+632 8450813 to 16 or 8450824

San Miguel Mandaue Glass Plant
SMC Mandaue Complex, Highway,
Mandaue City
Mr. Jesus S. Teruel
+6332 3457000 or 3460125

Pacific Glass Co.
Sheridan St., Mandaluyong
+632 6318221

San Miguel Manila Glass Plant
45 Muelle dela Industria,
Binondo, Manila
Rommel Diño +632 2425311,
2428641 to 60, or 6323000

Asahi Glass Phils.
Pinagbuhatan, Pasig City
Reynaldo San Juan
+632 6411982 to 87 or 6411988 (fax)
*flat glass


Mr. Mercado
Manila +63 (2) 751-6730, +63 (2) 801-9526

San Miguel Yamamura Ball Corp.
Barangay San Francisco de Malabon,
Gen. Trias, Cavite
Santiago V. Taduran
+6346 4021065 to 67 or 4020272
+632 7410021 (Manila)

Alliance Foundry Shop & Eng’g Unc
135 J. Teodoro St., Cor. 10th & 11th
Ave., Caloocan City
Martin Sy +632 3611073 or
3620039 (fax) *bronze metal

Gold Star Foundry
271 J. Teodoro St., Caloocan City
Alex Ang +632 2932687 or 3611340

Kim Bee Foundry
329 J. Theodoro St. cor. 9th Ave.,
Caloocan City
Gilbert Dylanco
632 3611173 or 3611173 (fax)

MH Del Pilar Junk Shop
120 MH del Pilar (bet. 7th and 8th
Ave.), Caloocan City
+632 3624409 or 3301899 (fax)

New Asia Foundry and
Manufacturing Company, Inc.
8272 Rizal Avenue, Extension,
Caloocan City
Danny Sy
+632 3658784 or 3658783 (fax)

Bacnotan Steel Corp.
166 Salcedo St. Legaspi Vill., Makati
Mike Andrada +632 8152779

Milwaukee Industries
2155 Pasong Tamo St., Makati
Alex Ngui +632 8103536

A. Metal Recycling Corp.
380 Barangka Drive cor. Hinahon St.,
Mandaluyong City
Aquino Dy
+632 5334719 or 5334717 (fax)

WG & A Philippines
G/F Harbour Centre II
23rd St. cor. Railroad South Harbour
Port Area, Manila
+632 5274605 loc. 4161, 5276460 or 5272027

Kapalaran Metal Scrap & Junk Shop
3001 P. Santos, Pasay City
+632 8337123
*copper, aluminum sheets

Cathay Pacific Steel Corp
25 F Galeria Corp Center
EDSA Cor Ortigas Ave, Pasig
Benjamin Chua
+632 6338033 or 6338048 (fax)

Cathay Pacific Steel Plant
Pablo dela Cruz Rd., Bgy San
Bartolome, Novaliches, QC
Antonio Arrobio +632 9362669 or 9360721

18 Diamond Ave. Greenheights
Subd. San Bartolome, Novaliches
+632 4173358

Topline Metals
#78 9th Avenue, Murphy, QC
Mr. Billy Naguit +632 4214841,
4214505 or 4214505

Bicutan, Taguig
Engineer R. Villoria
+632 8370430 (fax) or 8387878 (fax)

Reynolds Phils. Corporation
2/F FENICS Bldg., 5 Avocado Road,
FTI Complex, Taguig
Jime Gonzales / Atty. George Molina
+632 8389071, 8388383 local 12

Hilton Mfg. Corp.
648 T. Santiago St., Linunan,
Robert Yu +632 2928134


Basic World
Valenzuela, Bulacan
Marcus 09236037117

Paper City Corporation of the
Mariano St., Blvd. Bagbaguin,
Valenzuela, Bulacan
Michael Sy +6344 2410489

Bataan 2020
Rm 201 Narra Bldg., 2276 Pasong
Tamo Extension, Makati City
Mr. Kirby Ong +632 8135913 to 14 or 8135902 (fax)

Trust International Paper
Corporation (TIPCO)
Rosa St., Legazpi Village, Makati City
Roland Peña
+632 8929781 to 89 local 342 or 8159460 (fax)

United Pulp and Paper
5/F Phinma Plaza 39 Plaza Drive,
Makati +632 8700100 or 8700316 local 231

Global Paper Mills
1000 Gov. E. Pascual Ave.,
Potrero, Malabon City
Mr. Oliver Yu
+632 3612516 to 18 or 3615096

Liberty Corrugated Boxes Mfg Corp
40 Gov. Pascual Ave., Malabon City
Josie Olivares
+632 3612541 or 3619394 (fax)

Noah’s Paper Mills, Inc.
Southeast Marcos Bridge, Marcos
Highway, Calumpang, Marikina
Mr. David Hwang
+632 6455684, 645-5678 or 6455684 (fax)

Worldwide Paper Mills
Meralco Road, Bo. Sucat, Muntinlupa
Rogelio Sarmiento +632 8371039

Trust Int’l Paper Corp.
TIPCO Compound, Bo. Bundagul,
Mabalacat, Pampangga
Rolando D. Pena
+6345 8930403 (Pampanga)
+632 8929781 to 89 local 342 (Manila)

San Miguel Rengo Packaging Corp.
Dr. A. Santos Ave., Sucat, Paranaque
Ferdinand T. Fernandez
+632 8265541 to 45 or 8264113

Hansson Paper Corp.
RFM Compound,
Barrio Manggahan, Pasig City
Sonny So
+632 6462160,646-2164, 646-2105

Trans-National Paper Co.
Rm 301-302 Jollibee Center Building,
San Miguel Avenue, Pasig City
Stephen Cheng
+632 6334213, 6334218, 6339492

Container Corporation of the
60 Old Samson Road, QC
Victor Pascual
+632 3619801 or 3620370 (fax)

Holland Pacific Paper Corporation
226 Quirino Highway, QC
Renato Domingo
+632 3620370 (fax)

Paperland Industrial Corp.
Leiland Drive, Balintawak, QC
Mr. Johanne Tan
+632 3618531 to 33 or 3623607

Liberty Paper
751 Paso de Blas, Valenzuela
Anthony Tsiongson
+632 3620370 (fax)

National Paper Products and
Printing Corp.
34 Narciso St., Canumang,
Valenzuela City
+632 9838000 or 4444987

Sunrise Paper Mills
3549 M. delos Reyes St.,
Gen. T. de Leon, Valenzuela
Robert Yu
+632 2933002 or 2915117

Vanson Paper Industrial
150 R. Delfin, Marulas, Valenzuela
Eddy Sy +632 2916818 (fax)


Plastech Industrial Corporation
Meycauayan Industrial Subdivision
William Ong +632 2417301 to 05 or 2444952 (fax)

Asia-Plas Industries Corp.
12-E 8th Ave., cor. 6th Street,
Caloocan City
Beth Ong / Joselyn Ng
+632 3638832

Avenue Industrial Development
87-89 MC Briones St., Maguikay,
Mandaue City, Cebu
Edgardo Monsanto / Ernesto
Damasco +6332 3450106

DDL Industries
Paknaan, Mandaue City, Cebu
Gabriel B. Babon +6332 3461589

DOW Chemical Pacific, Ltd.
23/F, 6750 Ayala Avenue, Makati City
Bobby Batungbakal
+632 8191986 or 8172933

Manila Plastic Products
36 Gov. Pascual Ave., Malabon
Leonardo Andaya +632 3612691

San Miguel Packaging Specialists,Inc.
10F SMPC, St. Francis St.,
Mandaluyong City
Melanie Bularan / Argeline Dolliente
+632 7024321, 6349022, 6376297

Philippine Polystyrene Recycling Corp.
RM 900-1 Victoria Bldg.,
429 UN Avenue, Ermita, Manila
Tony Chiong
+632 5220860, 5260889, 5224354

San Miguel Manila Plastics Plant
631 Tomas Claudio St.,
Pandacan, Manila
Myra Leabres +632 5638541, 5633123

Now Trading Concepts
No. 32 RMT Industrial Complex,
Tunasan, Muntinlupa City
Chingbee Lim
+632 8623390, 8621258

Seacom Waste Management and
Recycling Corp.
11 Seacom Compound, Sucat Road,
Paranaque City
Mr. Danilo Sotto +632 8208146

Synber Manufacturing
Meliton St., cor. Sucat Road,
Parañaque City
Val Co +6346 4302133, 8267827,
8255356 (fax)

Polytrader Plastic Products
South Point Subd., Bgy. Pulo,
Cabuyao, Laguna
+6349 5413062, 09213763230 or 09797630797

Chemrez, Inc.
65 Calle Industries, Bagumbayan, QC
Romeo Tan
+632 6350680 or 6350703

FilPET, Inc.
60 West Ave. QC
Carmencita Abelardo
+632 3739797 or 3719781

Metal Wealth Enterprises Co.
(old 37) New 41, Gen. Luis St., Sitio
Kapre, Brgy. Nagkaisang Nayon, Area
IX, District II, QC
Walter Sy
+632 9369774, 9369766, 9369769

PEMA Plastic Mfg. Corp.
80 Mendez Rd., Baesa, QC
Emma Sy +632 3612844, 4557610

Adventure Manufacturing Corp.
77-D Pablo St., Karuhatan, Valenzuela
Genaro Chua +632 2920550

Asiano Industries
16 Isidro Francisco St, Maysan,
Valenzuela City
James Jim +632 2928111, 2928113,
4436828 (fax)

E-Friend Trading Corp.
26 San Diego St., Canumay,
Valenzuela City
Tony Chua +632 2933168,
2933161, 2911230 (fax)

Hi-Top Pelletize Products
3-S Cabral Near, 67 Maysan Road,
Valenzuela City
Ting Hok +632 2929003 (fax)

Interpolymer Corporation
016 Cantillion St.,
Maysan Village, Valenzuela
Alex Go +632 2924878, 2927726

Marulas Industrial Corporation
141 MacArthur Highway, Marulas,
Valenzuela City
Wilson Fung +632 2918105 to 07 or 2916030 (fax)

MCS Plastic
13 IRC Compound, Paso De Blas,
Valenzuela City
Milan Chua
+632 445-0178 or 432-3011 (fax)

Moonstar Plastic
8 Escabiall, Maysan, Valenzuela
Jason Ang +632 2774927, 2772446

National Plastic
100 Sn. Francisco St., Karuhatan,
Valenzuela City
Jose Tan +632 2931449, 2914459, 2931450

New Ace Master
1430 North Diversion Service Road,
Bo. Parada, Valenzuela City
Mr. James Limqueco
+632 4452282 or 4452280

Pacific Plastic Industry
7 T. Santiago Canumay
Valenzuela City
Ellaine Reyes, Elsie David
+632 2927831 to 34, 2921185, or 2927840

Plastic City
7 T, Santiago, Canumay,
Valenzuela City
Antonina Crisostomo
+632 292 7831,33 or 34

Playland Manufacturers
Bo. Balubaran, Valenzuela City
Romy Ang +632 2927906

Pro-Earth Plastic
73 Maysan Road, Valenzuela City
Choi Siukam
+632 2925024 or 2920895

R.A. Plastic Corp.
238 Elopo Miranda St., Paso De Blas,
Valenzuela City
Antonio Tan
+632 2945367 to 68 or 4451090

Top Fine Plastic Mfg. Corp.
184 G. Int. MacArthur Highway,
Karuhatan, Valenzuela City
Benson Tang
+632 2915388, 2931421, 4447777

List of Recyclable Materials

When I started in this business, I focused on three types of scrap materials: metals, plastic and bottles. I wanted to add scrap paper in my list but I didn't have a storage area that is covered.

Anyway, there are too many types of scrap materials so I will only be listing those I am familiar with. Here's a list of recyclable materials:


Two Types of Scrap Metal:

Nonferrous metals
- metals that contain little or no iron. They are not magnetic and are usually more resistant to corrosion than ferrous metals.They include precious metals such as gold, silver, platinum, magnesium. Nonferrous metals also include specialty metals such as titanium, cobalt, chromium, tungsten and metal alloys made of a combination of two or three metals such as brass which is made of copper and zinc, bronze which is a blend of copper, tin and zinc.
  • copper red & copper yellow
  • alum jalousy (most expensive type of alum)
  • aluminum light & aluminum heavy
  • alum cans - used beverage cans
  • alum caps/crowns (cheapest type of alum)
  • alum kaldero
  • radiator & radiator loose (haven't tried buying these) :D
  • condenser & condenser loose
  • stainless (so hard to determine if it's pure stainless)
  • tingga/lead
  • zinc
Ferrous metals - are metals which contain iron. All ferrous metals are magnetic and give little resistance to corrosion
  • bakal (ordinary steel)
  • yero ( G.I. sheets)
  • tapalodo
  • lata/tansan (can as in canned goods)

  • PET - mineral water/softdrinks bottles
  • HDPE/LDPE/PP - more commonly called as sibak/sibakin. They include most containers (shampoo, lotion, alcohol, cooking oil - but not the yellow ones)
  • ABS/PC - cd/dvd case, baby feeding bottles, computer/tv cases
  • PE - sando bags
  • Plastic cups (clear/transparent), spoon and fork
  • PVC tubings
  • Straw (softdrinks)

  • gin round post
  • gin 2x2
  • gin 4x4
  • gsm/matador long neck
  • gsm/matador solo
  • catsup
  • angelito
  • lapad
  • emperador/tanduay long neck
  • generoso
  • glass cullets (bubog)

  • white paper (used bond paper, computer paper, old notebooks)
  • newsprint (newspapers & magazines)
  • cartons
  • assorted wastes (colored paper)

  • 1 snf
  • 1smf
  • 2smf
  • 3smf
  • 6smf
  • 2d
  • 4d
  • 8d
  • bpc/bp

  • cpu - complete or incomplete
  • colored monitor
  • printers, fax, scanner, old appliances and other office equipment
  • printer boards, med grade boards/hard disk
  • floppy drive/cd-rom/power supply
  • CDs
  • wire/cables
  • christmas light wires
  • aircon (complete units)
  • power boards/monitor boards
  • hard disk drives
  • Ink Cartridges/Toners
  • defective cellphone units/batteries
  • used engine oil/used cooking oil
  • doy packs (small & big)
  • rice, flour and sugar sacks

Starting a Junkshop Business

One cannot immediately see the profitability of this business but the fact that junkshops continue to exist is proof that "there's cash in trash." We can say that this enterprise which is actually a simple buy and sell business is here to stay.

For a start-up, I would suggest focus on two or three scrap materials (ex. scrap metals, scrap paper, scrap plastic) because if you are going to take all junk products, it is hard for a start-up to secure volume stocks especially if you have a limited space, plus you'll be having a hard time getting a good price. But if space is not a problem and you have established contacts, then you can expand to a variety of scrap materials.

How to start:

  1. Weighing scale - is the most important tool since we are buying all the scrap materials per kilo, except for glass bottles, non-working batteries and some e-wastes, which are paid by piece.
  2. Kariton, ecobike/bicycle with sidecar - you need these to easily collect/buy scrap from house to house.
  3. Truck - you will be needing this if you plan to buy scrap in bulk or from nearby towns/provinces.
  4. Open Space - this is where you dump all scrap materials, segregate them if necessary.
  5. Recycling Centers/Recyclers - it is of vital importance to get a list of recycling centers/recyclers since they will be the one to buy your junk. You could also sell your mixed scrap at waste markets.
Download: Setting Up a Junk Shop Manual

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