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Wednesday, January 10, 2018

5 Most Common Reasons Why OFWs' Business Fails

In spite of high salaries they received from working abroad, many Overseas Filipino Workers (OFW) still wants to go home as early as they can to be with their families. This is one reason why many OFW work hard and save harder to have a capital to start a business at home.     Some OFWs succeed in their chosen businesses, but there are a lot of OFWs failed and forced to go back again to abroad for a living. Although there's a lot of factors why one business fails, as an OFW it is important to be aware of some common reasons or mistakes we may commit when starting a business.
In spite of high salaries they received from working abroad, many Overseas Filipino Workers (OFW) still wants to go home as early as they can to be with their families. This is one reason why many OFW work hard and save harder to have a capital to start a business at home. 



Some OFWs succeed in their chosen businesses, but there are a lot of OFWs failed and forced to go back again to abroad for a living. Although there's a lot of factors why one business fails, as an OFW it is important to be aware of some common reasons or mistakes we may commit when starting a business.
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1. Entering a business or investment without a proper knowledge about it. 

This is very common to OFWs. We pour our hard-earned money into something we do not know. Just because we heard that our friends are earning big, we also want to join the bandwagon and put our money into it without carefully studying the venture if it is legal or scam.

Same also with starting a business, just because we see our neighbor's business is booming we try to imitate what they have and start our own as if we have same the same knowledge and business skills of our neighbor. Imitating a business is not bad, but make sure you have the knowledge to sustain your operation.
Read More: Business Ideas You Can Start From P2,000-P350,000 Capital
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2. Failure to apply your skills and knowledge to your business

Many OFWs are skilled workers but instead of putting a business in line with their skills and talent, they venture into something different or new to them. Nothing is wrong with starting something new, but in business, skills and talent of the owner are important to make the business grow. 

For example, a cook or chef abroad might start a carenderia or restaurant business in the Philippines. An engineer may venture into small construction firm and a bartender may start his own bar. As the saying goes " When you are good at something, don't do it for free."

According to the study of Economic Resource Center for Overseas Filipinos, 76% of business put up by OFWs failed not only because they lack the skills but because they were lured into business enterprises that they have no background about.



3. Partnering with people who are incompetent or inexperienced

A business partnership is common with OFWs. Because they are working abroad, the tendency is to look a partner who will manage the business in the Philippines. A wife or another family members or a friend can be a OFWs' business partner.  Without direct supervision, the OFW is compelled to rely on the fate of the business to its business partner. This is the reason why OFW should choose a business partner who is competent to do business and how to run the business.
Read: 5 Franchise Business For As Low As P200,000

4. Not preparing their mind and heart for a business

Yes, capital is very important when starting a business, but OFWs should prepare mentally and emotionally for the ups and downs of having a business. There are many OFWs who are excited to start their own venture and when a problem arises they easily give-up and later realized that they have not prepared themselves emotionally and mentally. This lack of mental preparation has caused a lot of OFW businesses to fail.


Read More: 5 Best Water Refill Station Franchises in the Philippines

5. Lack of planning and poor management

Without a particular plan, a business won't survive. As an OFW, ask yourself, where your business will be in the next few months to the next few years. Failure to make a plan will damage your business. On the other hand, poor management also contributes to the early demise of your business. Examples of poor management are the inability to listen, micro-managing, lack of trust, working without standard or system, poor communication etc.. If you want your business to grow you have to consider these things because feedback is important in doing business.



There you have it Kabayans. If you want to start a business, consider five things mentioned above although there are a lot of reason why a business fails. The important thing is we do our best for our business that might give us stable income in the Philippines. Just continue learning and be ready to face the challenge.

OFWs can also ask help in TESDA for skills training and Department of Trade and Industry (DTI) for their business ventures.
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