Introduction
Many Filipino consumers have been in love with online shopping even before the pandemic in 2020. In fact, about nine out of 10 Filipinos shopped online at least once a month, even back in 2015.
When the pandemic forced almost everyone to stay at home, many had no choice but to purchase goods through various e-commerce platforms. As a result, there has been a significant increase in the number of online sellers in the country.
The pandemic is just one of the many reasons many of our kababayans were encouraged to become online business owners. It became an opportunity to enter entrepreneurship without having to shell out a large capital because it eliminated the need to rent or build a physical store.
If you’re also interested in starting an online business, you’re in the right place! Cebuana Lhuillier Kanegosyo Center is an online platform catering to small business owners. We’re here to teach you everything you need to know to launch an online business.
Tips for Starting a Small Business Online
Preparation is critical when starting a small business. Read these tips to help you become better equipped as an online seller:
Don’t Expect To Earn Much Right Away
First-time online sellers should have the right mindset before building their businesses. Part of this is managing your expectations as to when you’ll start earning massive profits. This will take some time and will depend on various factors.
The type of business you own, your operating expenses, and your business growth strategies are just some of the variables that determine your business’s profitability. It’s important to be patient and not quickly become discouraged when you fail to meet your projected sales in the first couple of months.
Invest in the Right Tools and Equipment
You may not need a physical store, but you must equip yourself with the right tools. As an online seller, having a reliable internet connection is a must, especially during live selling sessions. And while a smartphone will allow you to set up and run your online store, using a computer to complete such tasks is more convenient.
Additionally, if you plan to create video content as part of your marketing strategy, you will need video tools, such as a webcam, an actual camera, and lighting products (e.g., ring light, umbrella light, etc.). You should also get a microphone even an earbud microphone will do to record your voice properly for your content.
Use Social Media and Other Online Platforms
The use of social media and other online platforms is an integral component of a successful online business due to the sheer number of Filipino buyers active online. As of 2023, the total number of Filipino social media users has reached more than 80 million.
Social media platforms enable online sellers to advertise their products, reach numerous other consumers, and establish a loyal customer base. Moreover, the integration of online shopping features in these platforms allows sellers to make sales without having to set up websites.
Get Help From Business Professionals
Starting an online business for the first time can be daunting. There will be many things to consider and prepare for, such as securing capital, establishing a business plan, meeting government requirements, and using marketing strategies.
The good news is that you don’t have to carry the burden of starting an enterprise on your own. Cebuana Lhuillier Kanegosyo Center, one of the best online negosyo centers in the country, offers business coaching services that’ll provide you with the necessary information to help you build and expand a business.
Online Negosyo Ideas: Which Ones Help You Earn the Most?
A successful online enterprise begins with a lucrative o mapagkakakitaang business idea. But you might be wondering: Which business idea will help you earn the most profits? Check out some of them below:
Food Business
A food business is always one of the most profitable business ideas for many reasons. The market for food is diverse, and it’s a product that is repeatedly bought. You also have numerous options with the food products you can sell; from homemade breakfast and lunch to coffee drinks and baked pastries, the types of food you can earn from are almost endless.
Arts and Crafts
If you have a knack for creating intricately crafted items, you can use this talent to earn money. There are multiple art and craft pieces you can sell, like handmade soaps and candles, crocheted toys, knitted clothes, resin art, and more.
Freelance Services
Speaking of talent, perhaps you’re skilled in writing, editing, graphic design, voice acting, and so on. You can use these skills to earn money by visiting freelance job sites to get clients. It’s also possible to advertise your services on social media platforms. Usually, freelancers are paid by the hour or per project.
Common Requirements for Starting a Small Online Business
Like any other business, an online negosyo at home must comply with government regulations. This is in accordance with a 2020 memorandum from the Bureau of Internal Revenue (BIR). The requirements for starting a small online business are:
Business Name From DTI
Before registering your business with the BIR, you will need to register your online business name with the Department of Trade and Industry (DTI) first. Come up with a business name and visit DTI’s website to check if it is available for use.
Upon confirming your business name’s availability, you can now complete DTI’s online registration form. You will then be instructed to pay the registration fee within seven days. After paying, your business name will be registered, and you can then download your certificate.
Barangay Clearance
Another business requirement is a barangay business clearance. To register, head to the barangay where your business is located and fill out the application form. You will also need to submit other documents, like valid IDs, proof of address, and your DTI registration certificate.
Mayor’s Permit
Obtaining a mayor’s permit requires the same type of documents listed above, plus the barangay business clearance. Prepare these requirements and go to your municipal or city office. Complete the application form and submit the required documents to get your mayor’s permit.
BIR Registration
To register your online business with the BIR, prepare these requirements:
- Accomplished BIR Form No. 1901
- Valid ID
- DTI Certificate of Registration
- Annual registration fee (₱500)
- Documentary stamp tax (₱30)
For walk-in applications, you may follow these steps:
- Head to your respective Revenue District Office (RDO) to submit your application.
- Fill out two copies of the BIR Form No. 1901.
- Submit the required documents to the BIR officer.
- Pay for the registration fee and documentary stamp tax.
- Get your BIR-printed receipts/BIR-printed invoices or the Authority to Print (ATP).
- Secure your Certificate of Registration (BIR Form No. 2303) and other documents from BIR.
Seek Expert Help To Start Your Online Business
It’s understandable if you feel overwhelmed and somewhat lost when starting an online business. However, don’t let this stop you from pursuing your entrepreneurial dreams and making them a reality. You can obtain help from industry experts through Cebuana Lhuillier Kanegosyo Center’s online services!
We pride ourselves in being a one-stop shop for business support services that cater to aspiring Filipino entrepreneurs. As such, we offer a range of packages and products that include loans, savings, and other financial programs to help in starting and growing a small business o maliit na negosyo.
In addition, we provide business coaching resources and regulatory assistance because we know such services are essential to every entrepreneur. Sign up to be a Cebuana Lhuillier Kanegosyo member today!
FAQs About Local Online Businesses
Is Online Selling Profitable in the Philippines?
Definitely! Many Filipino online sellers have had massive financial success by selling various products on the internet. You can check out this news article showcasing successful Filipino entrepreneurs if you need inspiration.
How Can You Be a Successful Online Seller?
Success in online selling is the result of various factors. Among them are having the right tools, establishing a lucrative business idea, and having the desire to enhance your business knowledge o kaalaman sa pagnenegosyo. Taking advantage of Cebuana Lhuillier Kanegosyo Center’s online services will also go a long way in upping your chances of becoming a successful online seller.
Are Business Permits Required To Start Selling Online?
Yes. Based on a recent BIR memo, you need to register your online business. Online sellers who do not sell products on a regular basis, however, are not covered under this memorandum.
Conclusion
Starting a business online is an excellent way to earn money, helping many Filipinos get a step closer to attaining financial freedom. It can be a daunting task, however, for first-timers. But the good news is, with Cebuana Lhuillier Kanegosyo Center’s online services and products, doing business becomes more accessible and fairer for every Filipino.
Feel free to reach out to us today to learn more about how we can help you. You can also visit our kiosks in select Cebuana Lhuillier branches for any questions or concerns.