KnowCebu Financial Tip #5 Start a Business
by 
KnowCebu Financial Tip #5 Start a Business — the fifth way to earn more than P100,000/month in Cebu. Be your own boss and make money work for you!
To start a business is one of the best ways to liberate yourself from the endless cycle of working for someone. You wouldn’t want to work for someone for the rest of your life. You need to make your money work for you and use your time to enjoy life. But take heed though that not all businesses will be successful. Its success will come from your management skills.
There are 3 types of business — service, manufacturing, and merchandising. The main purpose of starting a business is to gain profit and develop a system to sustain or grow it. To start a business here in Cebu is a good move since there are plenty of opportunities. You have access to many suppliers, plenty of potential customers, and it’s a city that never sleeps. So you can operate day and night to maximize your activity. When you start your business, it’s advisable to start small and grow it rather than start big and fail. Just make sure you have the necessary capital and some extra funds to cover for the unforeseen costs.
So here’s an example, Pablo is on his mid-twenties and has been working for five years now. He wants to retire young and enjoy his life. So he carefully plans the best business that would work for him. He has a savings of 100K which he plans to invest. This might be a small capital but if you do your study well, you will know there are a lot of businesses you can do with this. As for Pablo, he opted for a traditional business — pig farm. He spent 30K to construct a small pen with roofing and septic tank. Another 30K for the purchase of one sow “inahin na baboy” and the first batch of female piglets. 30K for the operation costs budget for the next 3 months and the last remaining 10K as emergency funds for unforeseen costs. After 3 months, his sow gave birth to 15 piglets, which he sold at 1.2K each giving him 18K in return. Another 3 months have passed and the same sow gave birth to 12 piglets, which he sold again at 1.2k each. After 8 months from the time he bought the first batch of female piglets, the piglets in turn have become sows and are now ready to mate. After his first sow has given birth 3 times, he sold it for 11K since sows don’t produce as many offsprings anymore after they have given birth 3 times. When 6 sows give birth at the same time, that could be an income of 18,000 x 6 giving you an impressive 108,000 pesos.