Why P10,000 is 'magic number' to start a business

Jessica Fenol, ABS-CBN News

Posted at Oct 03 2017 06:26 AM | Updated as of Oct 03 2017 06:44 AM

MANILA - Aspiring entrepreneurs don't need to dig too deep into their pockets for their first foray as they can get a head start with direct selling and franchising for as low as P10,000.

"We believe that P10,000 is a magic number," said Rio Ilao, whose Kushi skin care gives stay-at-home mothers and sari-sari store owners the chance to earn extra.

"It's not so high for an initial capital, but at the same time, it's also not so low that people will just let go of it without any hard work or commitment," Ilao told ABS CBN News on the sidelines of a recent franchising expo.

With the right product and the right location, new entrepreneurs can get started with the following ideas that fit most budgets:

1. Kushi Skincare (Capital: P10,000)

A re-seller only needs P10,000 capital to start selling Kushi-branded whitening facial creams, toners, lotions, sunblock and body scrubs.

Re-sellers with the minimum capital requirement can buy Kushi products at a 25-percent discount. Those who buy up to P50,000 get a 40-percent discount while those who purchase up to P100,000 get 50 percent off.

"The beauty business is a very low-risk business because it has such a wide appeal -- who doesn't want to become beautiful and presentable, right?" Ilao said. 

Re-sellers also don't have additional expenses of bigger enterprises such as rent, she said.

"Oftentimes, looking for a good location is a challenge when it comes to a typical business. But with us, that is not a problem. You can be a Kushi re-seller and try your hand in the beauty business, right away from the comfort of your own home," Ilao added. 

2. Graco's Shawarma (Capital P98,000 - P150,000) 

Entrepreneurs with access to bigger capital can opt for food carts that cater to busy working types and commuters who want their meals to go.

The husband-and-wife team of Edwin and Grace Soriano have been in the food cart business for 18 years but they only recently ventured into franchising.

"Marami akong franchisee na may second franchise na, kasi madali siya i-operate, hindi siya sobrang mahal," Grace Soriano told ABS CBN News.

(I have many franchisees who have second franchises because it is easy to operate and not too expensive.)

The P150,000 package, which will fit in a shopping mall, includes the cart, equipment, initial inventory worth P10,000, staff training and uniforms.

Since they opened for franchising in 2013, they now have more than 60 franchises around the country with a promise to turn a profit in 4 to 6 months and no annual royalty fee.

"I have franchisee na mga busy, doctor, working, time management lang talaga puwede kang kumita. Yung mga seryoso mag-business, nakikinig sa mga payo namin sila ang mga nagiging successful," Soriano added.

(I have franchisees who are busy, doctors, working. It really takes time management to make a profit. Those who are serious in their business listen to our advice on how to be successful.)

3. EGGSPERT (Capital - P188,000)

Eggspert capitalizes on Filipinos' love for street food. The business-owned by former overseas worker Crisanta Prado offers classics such as fish balls, kikiam, kwek kwek, balut and penoy in a more hygienic and appetizing food cart set-up. 

For P188,000 anyone can purchase their mall franchise package, which includes a food cart, marketing materials, heavy duty fryers, freezer, glass display rack, initial product inventory worth P5,000 and staff uniforms. 

4. M-Gas (Capital - P600,000)

M-gas is the franchising wing of the popular brand Island Gas. Sisters Ellen Brillantes and Erika Monastrial relaunched the brand for franchising with the intent of encouraging young entrepreneurs. 

"We want them to know that you can also be in this type of business with the right support," sales & marketing director Erika Monastrial told ABS CBN News.

"So through M-gas you can set-up your own business but you have the support of a reputable brand like Island Gas. We've been in the industry for 40 years, we know the business," she said.

At P600,000, the all-in package includes 50 tanks of gas as initial inventory, a motorcycle for delivery, space improvements, furniture, fixtures, signage and marketing materials, office supplies, a point of sale or POS system, CCTV, staff uniforms and grand opening budget assistance. 

"We wanted to standardize everything para pag binenta namin complete na siya (when we sell, it's complete). All you have to do is operate it," CEO Ellen Brillantes told ABS CBN News.

(Editor's note: ABS-CBN News is not endorsing the brands mentioned in this article, which is meant to give aspiring entrepreneurs ideas on how much they need to start a business.)