Start your own businesses, dear graduates of 2003

It is again that time of the year when many students move on to join the ranks of the employed, the underemployed or the unemployed. But why must the choice be limited to these three?

I point to you a fourth option. Why not become an entrepreneur and eventually graduate to become an employer instead?

Entrepreneurship, not employment, is a better option. So why not look for entrepreneurial opportunities rather than job opportunities. Let me give you some tips on starting your own enterprise.

Opportunity seeking

Tip #1: Look at what you enjoy doing. There may be a business opportunity there.

Tip #2: Look at what irritates you. A product or service that alleviates it may make money. (This suggestion comes from ACE faculty member Jay Bernardo).

Tip #3: Look at what people around you are looking for. There may be enough volume to make money on.

Tip #4: Look for what gets out of stock often. There are unsatisfied demands that can be served.

Tip #5: Look at what people do not need and are willing to give away. There must be someone willing to pay for it.

Tip #6: Look at what is making money now. Ask why? There may be an opportunity to do better.

Tip #7: Look around in your neighborhood. The opportunities may be just outside your door.

Opportunity screening

Tip #8: Is the opportunity in line with your values? If they are, go for it.

Tip #9: Is it big enough to net you a cash income bigger than the daily minimum wage? If so, go for it.

Tip #10: Is it a one-time deal? If so, do not go for it. Deal-making is not entrepreneuring.

Opportunity seizing

Tip #11: Do not worry if the scale of the business is small. It will grow for as long as you continue to listen to the customer and love what you are doing.

Tip #12: Use other people’s money on top of your resources. Do not expect other people to add to your resources if you did not put in your own resources.

Tip #13: Do not worry about the absence of money. Your time, ideas, and passion can be your resource contribution.

Tip #14: Do not think that money is the only resource needed. Passion, time, and ideas are equally important.

Tip #15: Do not have partners who do not share your values and vision.

Tip #16: Do not let the enterprise run by itself. Just like babies, they need constant care and attention.

Tip #17: Do not worry about failure – for as long as you learn from them and there are more victories than defeats.

Tip #18: Do not start big. Start small. A home-based venture selling to neighbors is a good start.

Tip #19: Do not wait to do a full feasibility study. By the time you finish the study, the market may be saturated and gone. Start the business but keep listening to the customer and the environment.

Tip #20: Do not be afraid of changing the way the new business is being developed, if the current ways are not giving results.

Tip #21: Do not incur more fixed costs. Incur more variable costs.

Tip #22: Do be patient and determined. For as long as the enterprise is moving upwards, it will eventually become big.

Tip #23: Do not be greedy. Take bites that you can chew and swallow. But make sure it is enough to keep body and soul together.

Given these tips, I hope that many graduates of 2003 will become successful entrepreneurs who will create a million jobs in spite of an uncertain economic environment. This is certainly much, much better than becoming an employee who might just be laid off when business becomes bad. Something to seriously think about!

(Alejandrino Ferreria is the dean of the Asian Center for Entrepreneurship of the Asian Institute of Management. For further comments and inquiries, you may contact him at: ace@aim.edu.ph. Published "Entrepreneur’s Helpline" columns can be viewed on the AIM website at http//: www.aim.edu.ph).