Building a Formal Foundation

Leo's growing business demanded a more structured approach. He decided to formalize his operations, ensuring legal and financial compliance.

Formalizing the Business:

He visited the Department of Trade and Industry (DTI) to register his business name (Leo's Seafood Delights) for 1,000 PHP. He also obtained a barangay clearance and a city business permit, which cost 500 PHP and 2,000 PHP respectively.

Business Registration and Permits:

DTI Business Name Registration: 1,000 PHP Barangay Clearance: 500 PHP City Business Permit: 2,000 PHP

Opening a Bank Account:

Leo opened a basic savings account at a local bank. The initial deposit was 5,000 PHP, and he paid a 200 PHP account opening fee. He also researched basic accounting principles and learned to use simple accounting software on his phone.

Banking and Accounting:

Initial Bank Deposit: 5,000 PHP Bank Account Opening Fee: 200 PHP

Expanding to Quezon City:

Leo recognized the potential of Quezon City, a large and densely populated area. He explored the market and found a demand for his dried fish products. He decided to expand his operations to this area. He researched and found a suitable small storage space in a residential area for 3,500 PHP per month.

Storage Space:

Monthly Storage Space Rental (Quezon City): 3,500 PHP

Hiring a Part-Time Assistant:

To manage the increased workload, Leo considered hiring a part-time assistant. He planned to pay 500 PHP per day for packaging and delivery assistance. He also factored in 100 PHP for daily food allowance.

Potential Assistant Expenses:

Daily Wage: 500 PHP Daily Food Allowance: 100 PHP

Increased Sales and Expenses:

Leo's formalized business and expansion efforts led to increased sales.

Weekly Sales:

Market/Grocery Sales (Manila): 30,000 PHP Online Sales (Manila): 12,000 PHP Market/Grocery Sales (Quezon City): 15,000 PHP Total Weekly Sales: 57,000 PHP

Weekly Expenses:

Accommodation (Manila, 7 nights): 2,100 PHP Food (Manila, 7 days): 1,750 PHP Transportation (Manila, 7 days): 1,050 PHP Phone/Internet (7 days): 350 PHP Packaging (Manila): 600 PHP Packaging (Online): 500 PHP Delivery (Online): 2,800 PHP Shopee/Lazada Fees: 1,200 PHP Social Media Marketing: 100 PHP Storage Space Rental (Quezon City): 3,500 PHP Assistant Wages (3 days): 1,800 PHP (600 PHP/day) Transportation (Quezon City): 800 PHP Total Weekly Expenses: 16,550 PHP Business Registration and Permit costs: 3500 PHP (DTI, Barangay, City)

Weekly Profit:

Weekly Profit: 57,000 PHP - 16,550 PHP - 3500 PHP = 36,950 PHP

Updated Capital:

Previous Capital: 50,400 PHP Weekly Profit: 36,950 PHP Remaining Capital (After Initial Bank Deposit): 50,400 PHP - 5000 PHP (Bank deposit) + 36,950 PHP = 82,350 PHP

Leo was building a solid foundation for his business. He had taken the necessary steps to formalize his operations, expand his reach, and manage his finances effectively. He was learning to delegate tasks and embrace the responsibilities of a growing entrepreneur.