A lot of us want to own business specially the Millenials, in fact that is one of the goals most of the Filipinos. It is not easy to start your own business,you have to know first if you are really ready to start your own business. You don’t want to lose all your hard-earned money because of the wrong decisions you choose.
Here are the things that you have to consider when you want to start your traditional business:
1. You need a big capital. Let’s say you want to start a milk tea shop, you have to be ready to invest at least Ph1,000,000-ph2,000,000.
2. The risk of closing down your business in 1 year is most likely to happen. You are lucky to survive for the next 3 years.
3. Overhead costs are expensive like employees’ salaries, electricity bills, water bills, rent, maintenance, health insurance of your employees, and a lot more.
4. Competitors will copy your products and services. You have to be ready to innovate for you to win in the market.
5. You have to be hands-on to your business. You cannot just let it be handled by your employees.
6.It will be difficult for you to manage your business if you have a job. You need to give up your job for you to keep up with your competitions. It will consume most of your time.
7. Are you ready to be in debt just to sustain your business’ operation? How long can you sustain to cover all the expenses?
These are some of the considerations you have to look before starting your business. Now,what if you invest first in Phil. Stock Market and grow your money and then start your traditional business afterwards.
Here are the benefits that you can get if you invest in Phil.Stock Market through Insular Life’s Variable Unit Linked(VUL):
1. You don’t need to shell out millions right away. You can start an amount which you are comfortable with. As low as P100,000 per year is a good amount to start already.
2. The risk of losing your money is minimized because you will be partnering to blue chip companies in the Phil. Stock Market that will not closed down for the next 20-30 years or more. If you buy shares of Ayala Land and SM investments, it is not likely to close down,thus, you will also earn.
3. No need to pay overhead costs but only minimal charges for your Life Insurance and Management fees which you do not have to take care every month.
4. You don’t have to worry what’s happening to the market but because the fund managers will take care if which companies where your money will grow. On the average, investing in Stock Market can give annual returns from 8%-12% long term rather than saving your money in the bank that gives less than 1% per year.
5.Investing in pooled funds just like VUL will not require you to monitor your funds but the company will give you updates what’s happening to your money. You can work in your career/job while investing which your money works for you. The fund is actively well-managed,it means if there are companies that are not performing,the fund managers can replace it with other performing companies.
6. You are partnering with blue chip companies in the Phil.Stock Market which are the best. Think like owning shares of Globe,PLDT,Jollibee,San Miguel Corp.,Ayala Land, and a lot more. These companies are already successful and you can profit as well when they earns. You are already in business because you are one of the owners of these big companies because you bought shares of their companies.
7. If death comes in the future, your family will receive a guaranteed death benefit plus your fund value. You can also add other benefits like accident insurance,hospitalization fund, and Dread Disease Rider which you can protect yourself while your money is working for you.
In conclusion, it is better to think through well before starting your own business because it is risky that you can lose all your hard-earned money without studying it first. I believe it is wiser to invest first and let your money grow first and until you accumulated enough funds to start the business you are passionate about. You can now risk in doing a traditional business with enough buffer to sustain your own business. You have to think how to minimize the risks that you can get if you want to grow your money for your future financial goals.
If you want to know more about Variable Unit Linked and create a fund that you will need for your dream business venture in the future , you may reach me.