Ekonomista is now a panadero JP VILLANUEVA Ekonomista
Afew years back, I was fortunate to be given the opportunity to enrol in a short-term course in bread and pastry making in Baguio City School of Arts and Trades (BCSAT) under the Technical Education and Skills Development Authority (TESDA).
I have a whole more respect for bakers. Each baked good they produce is out of their hard work. The pandesal that we enjoy is not very easy to make. It takes several hours before a batch is produced.
The most difficult part is kneading, or in Filipino, pagmamasa. Now, I don’t wonder why many panaderos have big biceps and triceps. Instead of carrying barbells or dumb bells, kneading is another option.
Recently, I, together with my nieces, ventured into baking and selling baked goods online. As a start-up, we just accept orders and produce what was ordered.
If you think this is easy, think again. One has to consider many factors if one is seriously thinking of this entrepreneurial venture.
Interest. When one is interested in something, he/she will surely thrive on that. A caveat though, one has to make sure that it is not ningas cogon, a fad like joining a band wagon, or a passing interest. It is fortunate that my niece, the wife of my nephew, had the same interest.
Capital. The business that we ventured into is also quite capital-intensive, particularly the need for physical assets like ovens, electric mixers, etc. It goes without saying that financial assets are also a requirement. Going into business is not a cheap exercise, that is why there is a caveat under interest.
Skills and knowledge. One should have the necessary skills and knowledge on what one is venturing into. As an HRM graduate, my niece has the necessary knowledge in the baked products business, particularly on costing and production. I just know how to knead and I am learning a lot in the process.
At the same time, many concepts and theories that I teach in economics apply in real life. For example, economies of scale. Increasing production would reduce the average costs. This entails buying supplies in bulk which is cheaper, allowing the enterprise to increase their volume of production, resulting in lower costs and higher profits.
Another theory applied is the production theory. In economics, it is assumed that in order to produce an output, the inputs of production (land, labor, capital and entrepreneurship) need to be processed.
Network. At this point time, there are many micro enterprises that have sprung like mushrooms after a rainy afternoon during the pandemic. Capturing a market may be difficult because most of these micro enterprises have homogenous (the same) products. Having a good network of friends definitely helps.
I am thankful that over the years, I have developed a wide network of friends who also have a wide network, and word of mouth is still the most effective, albeit cheapest way to market products. They know that when it comes to food, they can trust my taste and preferences.
This (ad)venture of ours in producing baked goods have been operating for the past several
EKONOMISTA, 7