Business options for returning OFWs

OVERSEAS Filipino workers (OFWs) send over P147 billion every year on average. These remittances are mostly used to pay for their families’ day-to-day bills and children’s tuition, among others, leaving workers with barely any savings for retirement. Many OFWs end up working abroad for decades to ensure their financial stability when they finally go home to retire. Unfortunately, some still end up with little or no savings and find themselves looking for employment again after setting foot in the Motherland.

These “modern- day heroes” deserve to experience the fruits of their hard work. That means supporting their dreams of obtaining a better life with a good savings plan, complemented by proper execution. They should avoid the urge to send 70 to 90 percent of their salaries back home, splurge on luxury items once a year — or not at all — and open a savings account. Of course, money doesn’t really grow exponentially in the bank, but it helps to kick off and maintain the good habit of setting aside at least 10 percent of their monthly salaries.

The goal here is to save enough to have capital for an investment or feasible business to keep their cash flow healthy when they decide to go back home. If you’re an OFW planning on returning soon or are looking for a business back home, read on.

Why start a business?

You get to go home sooner and make great memories with your family, friends and loved ones. If you’re married with kids, you get to play the important role of raising your children and being active in their lives. If that’s not a good enough reason, being in control of your own business might be enough to tempt you to save up and find a good business prospect.

If the life of an entrepreneur is not your cup of tea, you don’t have to be the one directly managing your business. You can hire someone with a knack for managing the same type of business you are putting up and was successful at it. However, you do have to make sure you get to monitor finances and are part of setting up and

approving the groundwork and operations of your business.

In the case of some successful OFW business owners, their small businesses progressed to become family businesses. They were able to employ their siblings, helping them develop their acumen and share their wealth.

There are five good business options in the country: Your own laundromat or a franchise laundromat service.

If you live in a highly urbanized community, setting up your own laundromat could be lucrative. Demand is usually high in these areas from busy yuppies who need a quick and convenient laundry service.

Of course, it’s not necessary for you to set up shop in your community. But if established in your community, it would lessen your commuting hours and consequently save you time, and allow you to manage the business more by being present for any troubleshooting needed. Nonetheless, any strategic location that ensures a steady demand for your service should suffice.

Be an online seller. Online shopping has become a pastime for Filipinos who buy almost everything online these days. The reason many startup owners choose to start their entrepreneurial dreams online is because it’s almost risk-free. Besides the ease of starting one, Facebook and Instagram are free, and even if you choose to boost your page, costs are cheap.

We all know that we Filipinos love to buy the best of what each country has to offer, which gives OFWs an advantage. You can easily sell online and thanks to the number of shipping options, you can ship your products globally.

Start a payment store. While there are many platforms that serve to provide convenience in paying your bills online, there are still millions of Filipinos unable to pay their bills online, and a payment store or bayad center can offer the much-needed convenience for paying bills, especially in rural areas. Run a car wash. With the steadily increasing sales of the automotive industry, you can consider complimenting its growth by starting a car wash business. Take into account the number of vehicles that get added each year and you’ll have a good idea as to why buying a franchise of a car wash business might be the big break you’ve been waiting for.

Open a gas station. As more cars are sold each year, demand for gasoline would also continue to grow. Despite being on the expensive end of small business options, as gas stations would set you back at least P3 million to P14 million, a gas station set up in a high traffic area tends to be very lucrative.

Just a few things to watch out for are proper hiring and training of your staff, especially service masters or those pumping gas into customers’ cars, as it requires both safety and customer service skills. As soon as you and your management are able to hack the day- to- day operations of the station, expand your property to include a convenience store, lube bay, etc., depending on the policy and rules of the franchise you choose to partner with.

Where to get cash for unforeseen operating expenses?

When doing the math, you might derive an amount that is enough for capital expenditures or for starting a business and get you through six months to a year for daily operations. This shouldn’t discourage you as it’s a known secret for entrepreneurs to rely on business financing to keep their businesses running and growing. Should your business experience cash flow gaps, there are plenty of options to stop that.

First Circle is one of the biggest financial technology companies in the Philippines today. We offer short-term business financing services to assist business owners who need to fill temporary capital gaps. Through our business financing products, business owners are given more opportunities to expand their operations and support their growing clientele. To know more about how First Circle’s funding services, visit www.firstcircle.ph. Lee-AnneTobias is the senior communications associate of First Circle Growth Finance Corp. She has 10 years of experience in digital media, business communications, corporate social responsibility and qualitative research in the energyand marketresearch industries.To get in touch with her, email her at lee-anne.tobias@firstcircle.com. To know more aboutFirstCircle and its financing services, visit its website.