Business Ideas for Every Type of Entrepreneur in 2021
The market economy has undergone a complete change over the past two years. With the pandemic keeping most of us at home, the constant lockdowns and restrictions have sparked a new wave of activity in the ecommerce sphere. For some people, the additional time gained from staying indoors was just the final push they needed to finally start their own business. Whether it was a long-time dream of theirs or simply a necessity due to the unforeseen financial fallout, nevertheless, the prospect of owning a business and creating new revenue streams can be both exciting and challenging.
And with economic shifts comes new opportunities. In a report by the Department of Trade and Industry’s Business Name Registration System (DTI-BNRS), it was revealed that business registrations in 2020 grew by 51% when compared to the previous year. In January 2021 alone, 201,989 individuals registered their business — a 10% increase from the 183,595 in the same time last year.
With everyone else joining in, you might also feel like becoming an entrepreneur yourself. But the obvious question remains, “Am I capable of running a business?” and “What kind of business should I even start?” To help you get started (and provide answers for those questions), we lay out what it really takes to start a business. Read on to find out what kind of entrepreneur you could be and look through some of our business ideas to help kick-start your newest endeavor.
Do you have what it takes to start a business?
Having your own business can be a great source of income (or in the worst-case scenario, a financial sinkhole). If you want to increase your chances of success, you’ll have to first evaluate your capabilities and resources, and map out how you’ll manage some of the significant investments required for your business, namely your time, money, and knowledge.
1. Time
Assess how many hours you’ll be willing to commit to your business. Will this be a part-time gig or do you have the capacity and experience to go all in? Are you in it for the short-term profits or the long-term sustainable revenues? And while it’s true that owning a business can give you control over your daily schedule, in reality, many business owners will work more than 8 hours a day and sometimes even weekends. Business owners will also tend to handle every aspect of the business due to having little to no support staff, therefore leaving less time for friends and family, and other commitments. If work-life balance is important to you, then consider starting off with a small manageable project first.
“Will this be a part-time gig or do you have the capacity and experience to go all in? Are you in it for the short-term profits or the long-term sustainable revenues?”
2. Money
When starting your business, you’ll need to consider how you’re going to fund it, whether it be through personal savings or elsewhere. This will determine how big or small you can start. And a fair warning in advance — don’t expect to profit instantly either. It could be a while before you see those profits come by. Create a budget that will sustain your personal expenses for six months to a year and always keep your business and personal budget separate. If it’s your first time starting a business, getting a loan from banks or investors may not be the best path forward, especially if you’re unable to prove you can run a successful business. Put off getting a loan until you’ve made some decent profit and you’re ready to expand the business. Once you’re profitable, reinvest your funds (loan or otherwise) into the business by purchasing more equipment or inventory. And most importantly, never use your funds for personal expenses. Always keep your personal and business money separate.
3. Knowledge (or business know-how)
Before you start buying products left and right, you should first research your market. Find out what your customers want and need, know what your competitors are doing, and choose products that sell. Creating a business plan will help outline your financial position, assess your marketing requirements, and strategize for long-term success. Finally, starting a business requires you to know yourself well. How well are you able to handle stress? Based on your strengths and weaknesses, can you manage the risks and still have the drive to see the business through? And consider the skill you possess. How will you utilize them when handling your business’s marketing, logistics, and customer service?
Learning what’s at stake and discovering all the prospective qualities in yourself will help you determine whether you’re ready to run your own business.
What type of entrepreneur are you?
When you’re just starting out, brainstorming for ideas can be much more difficult if you don’t know what kind of business owner you could become. To help narrow down your list, we’ve defined four types of entrepreneurs that you may find yourself relating to. Along the way, we’ll cover how much starting capital you should need to set things up and share some advice on how each path can become a profitable endeavor even during a pandemic.
1. The Hobbyist
Everyone has a hobby, whether it be watching movies, reading a book, or even cooking. It’s something that they can do to relax and unwind. And while most of us primarily have hobbies for fun and enjoyment, hobbies can also extend to your business and act as an additional source of income. The hobbyist is a particularly talented business owner who is able to turn their passion into profit. They could be literally anyone, from homemakers and corporate employees to students or even retirees. Some hobbies can turn out better than expected. Marilyn Buenaflor started her business as a deep enthusiasm for all things K-pop which eventually turned into a full-fledged K-pop online store. There’s no age limit to being a hobbyist, and if you already have the tools and materials at your disposal, the better.
Starting capital: Between PHP 0 and PHP 5,000
Business ideas:
▪️ Handmade products and crafts: candles, lotion, soap, dice, fan merchandise, plants, papercrafts, ceramics, fashion accessories
▪️ Skilled work: woodworking, pottery, tailoring, gardening, baking, metalworking, painting
▪️ Trading and collecting: basketball cards, game cards, stamps, toys, tapes, paintings, antiques, coins, and other collectibles
▪️ Buying and selling (Flipping): cars, furniture, properties, jewelry, and other high-value items
2) The Freelancer
Freelancing is a type of short-term or casual work that allows you to earn money for every job or task performed. Many freelancers work independently as a contractor or have their own freelance business in a specific industry or profession. Some of us who are looking for additional income may consider working part-time, or what is popularly known as a “gig”. Most freelancing gigs are service-related work, which makes it relatively easy to start since you need little to no capital. Other benefits include being able to pick up work when you want and being able to set your own rates and hours. In other words, the freelancer has work freedom. Short-term hustling can also turn into a permanent gig in the long run if you enjoy it enough and are able to establish good relationships with your clients.
Starting capital: PHP 0
Business ideas:
▪️ Personal services: online yoga classes, coaching, cooking tutorials, tattoo art classes, consulting, photography
▪️ Digital services: financial planning, digital marketing, web design, copywriting, translation and transcription, virtual assistant, telemarketer, graphic design, social media management
▪️ Administration and management: HR & recruitment, IT, accounting, medical and health services, collections, office manager
3) The Content Creator
If you have a mic and camera, know some basic video-editing skills, and possess a confident and engaging persona, then being a content creator might be the right approach for your business. A digital creator creates any kind of media, whether short or long-form, that informs, inspires, or entertains their target audience. This is a great income-generating role that revolves around building your own brand and online presence. And best of all, it’s practically pandemic-proof. It’s also very easy to get started — record videos from your phone and start posting them on video-sharing sites like TikTok or YouTube. One disadvantage though is that your brand may not be instantly profitable. Creators need viewers in order to monetize their platform. You’ll need to build a following to generate income from ads, sponsorships, and partner programs. Being a content creator is great for those interesting in making money in the long run and want to do something that is in line with their day-to-day profession, or possibly have a parallel career in media. Other ways to profit using this route are to sell your products through live streams or receive fan donations.
Starting capital: PHP 0
Business ideas:
▪️ Idea-based content: Online classes, webinars, workshops, video essays, film criticism, book reviews, micro-videos, talks, and tutorials
▪️ Lifestyle and identity based-content: Fashion vlogs, game streaming, daily life vlogs, car reviews, tech reviews, product reviews
▪️ Professions: vlogger, blogger, influencer, affiliate marketer, live streamer, reviewer
4) The Small Business Owner
When we’re talking about starting a business, we usually mean the traditional small enterprise. Small businesses make up the backbone of the economy and are characterized by their innovative approach to business operations and have an unparalleled ambition to succeed. Small business owners typically address the needs of a community through commerce. They may have a small team to help them or run a solo operation that sells various specialized services or goods such as food or health products. During these difficult times, small businesses have learned to adapt and transition to the online space where more opportunities can be found. Just last year, Aubrey of wearThalia was able to start her jewelry business on her own online store. With enough grit, capital, and creativity, a small business may find itself expanding into a larger business in no time.
Starting capital: Between PHP 10,000 and 300,000
Business ideas:
▪️ Clothing and accessories: reselling, customizing, personalizing, and branding
▪️ Retail products: pet products, baby products, holistic and wellness products
▪️ Food and beverage: baked goods and pastries, pizza or burger business, rice and grain supplier, hot and cold brew beverages, frozen foods, smoked foods, lechon manok business
▪️ Rental business: formal wear, home and room rentals, karaoke machines
▪️ Delivery and errands: hired vehicles, motorcycle delivery, padala services
▪️ Cleaning and repair services: for homes and commercial properties
▪️ Essential goods and services: food retail, money transfer services, medical equipment manufacturing, water-refilling stations, data loading, pasabuy
Create multiple stores on Cafe24
People are multi-faceted individuals. We aren’t just our job titles or interests after all. As we grow older, we learn to juggle different roles and our ability to adapt and be creative allows us to manage multiple projects at the same time. As an entrepreneur, you can manage your main source of income while still enjoying a hobby that makes you money. And with Cafe24, you’re able to start multiple businesses on a single ecommerce platform. You can create multiple stores with unique themes, launch in various countries with language support, and customize your ecommerce toolbox with themes and apps. Everything is created and maintained by industry specialists, so there’s something for every business type out there! Try your hand at social ecommerce by linking your Facebook Shop to your website through our Facebook Channel app and download the Paymaya app for easy payments. At Cafe24, we believe that every entrepreneur should have the tools to succeed in the growing ecommerce industry. Being your own boss is possible, so sign up for a Cafe24 account and become an entrepreneur today.
