The Philippines is a place of great beauty. It is home to breathtaking scenery and some of the most fascinating natural attractions in the world. There aren’t many places left on earth where you can take a short trip from a thriving, roaring city and end up in the jungle. This dichotomy between the modern and the wild is one of the things which makes the Philippines so unique.
Yet, as tourists and visitors, most people only see one side to the country. They never have to consider the impact of mass unemployment or an ageing population, but a business owner does. If you are planning to expand into Southeast Asia, the condition of the labour market, access to investment, and the price of office real estate are all key concerns.
Keep reading for some helpful advice on what you need to know to start planning a business expansion in the Philippines.
Find a Negotiable Lease
While nobody likes planning for failure, being a business owner has to involve some form of contingency strategy. You need a plan for every eventuality and this includes downsizing, cutting back, and going into survival mode. Fortunately, serviced office solutions like the ones available from Servcorp Philippines offer fully negotiable leases. These are private corporate suites, but they’re paid for on a flexible rolling basis.
Check Out the Labour Market
In the Philippines, like much of Southeast Asia, unemployment levels are high. In a lot of cases, it is because the younger populations are now very education. They have university degrees and high-level skills. The problem is that the jobs market hasn’t progressed as fast as they have, so there aren’t enough high-level positions. This makes foreign business owners a valuable prospect. You’ll find plenty of talented young graduates if you’re looking to hire.
Outsource Some Tasks
You don’t have to land in the Philippines and have everything set up within the first week. It is okay to put some temporary measures in place for the first few months, such as outsourcing several of the most immediate needs. This can be particularly useful for 1-10 person teams because it means that you don’t have to hire extra individuals for work which is not consistent (website development, IT support, graphic design, etc.)
Protect Your Contingency Fund
According to most expansion strategists, business owners should be reinvesting a minimum of 50% back into the company. This will allow you to build up what is called a ‘soft cushion;’ a safety net of free capital which can protect you in the event of mishaps and missteps. So, for example, you might make a bad investment or a major deal could fall through. These things don’t have to lead to a crisis if you’ve got some extra cash which can cover the losses.
Take It Easy Sometimes
This is a lesson which a lot of business owners have to learn the hard way. For first time managers and entrepreneurs, it can seem like taking time off is a sign of weakness; that it will lead to lost opportunities and poor performance. However, the opposite is true. If you don’t spend time looking after yourself, as well as the business, you’ll burnout and. Overwork leads to lower levels of productivity and higher rates of sickness.
Expanding Your Business Is Easy with a Serviced Office
Serviced offices are a great place to start your expansion into the Philippines because they ease a lot of the pressure which comes with needing to find a suitable base fast. These facilities offer some of the best resources in the country, but they also recognise the value of flexibility. This is why they carry short term leases and allow occupants to renegotiate their terms at any time.