No matter how much you are earning as an overseas Filipino worker (OFW), it is important that you don’t just spend all your money in buying things you need and stuff you’ve always dreamed of. It is also important that you find other ways to grow your money, to ensure that you have funds to spend once you go home for good.
Owning a business is one of the best ways to earn extra money and later have something to help you retire early from being an OFW. But there is no guarantee at all that a business will work – and even the best franchisees might not work out, due to various circumstances.
So, before you invest in business, check out these top 3 things you should consider:
Do You Have Buffer and Emergency Funds?
Don’t ever open a business if you don’t have both emergency funds and buffer funds! Ideally, both funds should cover about 6 months’ worth of your basic expenses and needs.
The emergency funds will provide a safety net that you can count on just in case something bad happens, such as you suddenly lose your job. Meanwhile, the buffer funds will ensure that should the business be in danger of failing or in need funds for emergency needs, you won’t be using your personal emergency funds to save it.
It is also very important not to use all your savings for the business. Always make sure you have these two funds ready.
Who Will Manage the Business?
As OFW, you won’t be able to be there to manage your business at all times. It is important to have someone you can trust to work diligently and honestly to grow your business. This is actually one of the reasons why many businesses fail – your input in terms of money is important but whoever personally manages the business plays a more important role!
Ideally, the OFW’s spouse or adult children should be the one managing the business, but siblings, other family members, and friends could also fill in that role. Just make sure that their role and salary or share in the business should be clearly outlined. If possible, put this into writing and have the agreement notarized.
The most important thing there is that you have someone you can trust to run the business.
How Will You Monitor the Business?
Even if you’re miles away, you can still be hands on with all the aspects in your business. Thanks to modern technology, it is possible for you to monitor every aspect of your business through the internet. These days, you can already have cloud-based point-of-sale (POS) and accounting systems so that you can always keep track of the business, wherever you are.
CCTVs that can be accessed online provide added security for your business.
Moreover, make sure to have regular meetings with your staff. After all, plenty of video calling apps you can use.