“Paano ba mag-budget para hindi maapektuhan ang capital na pinapaikot natin sa ating negosyo?,” asked Eco, one of the hosts of GO NEGOSYO BIG TIME, a must-see business – oriented show on Q TV, shown on weekend mornings.
Perhaps you may have asked yourself this question. Well, if you want to know, read on to find out, as Mr. Chinky (I’m not sure of the spelling) Tan (who looks like Michael V.), a former TV host, a GO NEGOSYO mentor, and the author of the best-selling book “’Til Death Do as Part,” talks about how to effectively budget your money so you’ll have your own business budget, apart from your home budget.
So let’s start.
HOST: Meron po bang formula that we should follow pagdating sa pagba-budget para hindi ma-compromise ‘yung ating budget sa negosyo sa budget natin sa bahay?
MR. TAN: Yan, ang prinsipyo behind it is, number one, h’wag nating isasama ang pera sa negosyo sa pampamilya. So, kung may pera ka pang-negosyo, capital mo ‘yan, itatabi mo ‘yan. Pagka-pumasok ang income, itatabi mo ‘yung income panggastos pero h’wag mong hahawakan ang ‘yung puhunan, kasi kailangan nating maintindihan ang prinsipyo na, walang tao ang kakain ng kanyang binhi, ‘di ba ‘yung seed, you sow the seed and you will reap, e pero pag ikaw magsasaka ka, dumating ‘yung binhi, ang ginawa mo kinain mo ‘yung binhi, ubos na, wala kang isasaka, wala kang aanihin.
HOST: Pero Chinky, kung minsan nagyayari kasi ‘yung tipong na-short na ang capital mo, hindi umikot, maraming umutang sa’yo, would you actually advise the Bigtimers out there na kumuha ng pera nila from the family budget?
MR. TAN: Ang problema naman pagkukunin mo naman sa family budget mo, what will happen is, hindi mo na muna mababayaran ang mga pangangailangan mo, so I would really suggest talaga, just be disciplined, know how much you need for your family, and know how much you need for business, and then separate it.
HOST: Well, you know what, as an entrepreneur naman, lalo na pag-Pinoy, medyo financial crisis daw ngayon, sabi nila, one of the challenges is, of course, kunyari ganun na nga ang set-up mo Chinky, magkahiwalay ang negosyo, magkahiwalay rin ‘yung sa pamilyang budget, what’s the best tip para mapalago mo ‘yun para sa negosyo mo?
MR. TAN: I think the best way for you is to find a business that you really love to do. One thing that people do not understand pagdating sa negosyo, in order for you to be profitable, there are only three things, kung gusto niyo isulat n’yo ito. Para kumita ka ng malaki, ang kailangan mo lang dito ay, number (1) low overhead, number (2) low overhead, number (3) low overhead. Most of the Chinese, they become successful because they have low overhead, ang sekreto hindi ‘yung gaanu kalaki ang kita mo, ang sekreto ay kung gaanu kalaki ang lumalabas na pera mo. Kahit malaki ang income mo, malaki rin ang lumalabas, ‘yung overhead mo, pantay lang. Pero kung maliit lang ang income pero maliit ang overhead, malaki pa rin ang income.
HOST: Pero Sir Chinky, anung mai-a-advise n’yo sa ‘min, like for example, e syempre kailangan nating mag-improve ng ating products and services, kailangan nating i-improve, kunwari ang ating tindahan, magre-renovate tayo, magdadagdag tayo ng products and services, e medyo tipid na tayo sa budget, kung baga, cost-cutting muna tayo kasi nagamit na natin e, anu po ‘yung magandang i-advise natin sa kanila?
MR. TAN: I would wait, until such time, the business model is really working, talagang kumikita na, that’s the time you expand, kasi ang mga iba kasi, masyadong ideal ba, wala pa ngang proven system, proven business o proven product, e gusto na n’ya agad bigtime. So minsan ang nangyayari, big loss, hindi big profit. So, be willing to start small, every millionaire, every tycoon that I have met, started with peso. Sa maliliit na kita, pa-barya-barya. Nung lumaki na, lumalakas ang confidence, that’s the time they start investing.
HOST: And you know what Chinky, napag-usapan na nga natin ‘yung start, ‘yung, anu ba ‘yung dapat na set-up pag-nagsisimula ka? When is the right time for, kung baga, ‘yung gains na nakuha mo ‘yung negosyo, ibuhos mo naman sa family budget mo?
MR. TAN: That’s a good question. Parati ang sinasabi ko sa tao, it’s not how much money you make, but it’s how much money you save. Kahit malaki ang income mo, pero malaki rin ang gastos mo, e wala rin ‘di ba? Basta ang tip ko sa inyo, pagka-kumita kaagad h’wag mong immediately i-change ang lifestyle mo. Kasi magandang tanong ‘yan e, minsan kasi sumasabay, ‘di ba? Kumita nga ng malaki, e malaki rin ang gastos, patas lang siya. So, normally, ang principle na ginagawa ko dati, when I was still single, whenever I earn, 50% I save, 25% I spend and 25% I plow it back to the business. It may work for me, but it may not work for other people. The proportion or percentage may differ from any kind of people, pero ang prinsipyo kailangang ihati mo sa tatlo, meron kang sini-save, meron kang pang-negosyo, binabalik mo, meron ka namang pang-gastos. So ang tip ko talaga is h’wag baguhin ang lifestyle pag-kumikita. Maintain the income level for 6 months, kung consistent ba ‘yung income mo, that’s the time that you, dadagdagan mo. Encouragement ko sa lahat ng nakikinig is, start saving right now, and then number two, don’t get into debt as much as possible. Kung may utang ka, ito ang encouragement ko sa’yo, magbayad ka ng utang pakunti-kunti. Always remember, in paying off your debt, it’s not the amount that’s more important, it’s your willingness to pay.
HERE’S A SUMMARY OF CHINKY’S TIPS ON BUDGETTING: (I added some of my own comments/opinion)
1. Have a separate budget. Always separate the money that’s intended for business and never combine it with your home/family budget.
2. Reinvest. Whenever you make a profit, always set aside a certain amount of that money and plow it back to your business. Always put in mind to reinvest.
3. Whenever tempted, have discipline. Always make sure to know how much money is needed for your business, how much money you need for your home budget, and separate the two. This is similar to the first tip.
4. Keep a low overhead. The principle here is, it’s not how much you earn from your business, it’s how much money goes out of your business. There’s no point in having high earnings when you also have high expenditures.
5. Start small. Don’t be hasty to expand your business. It’s important that you have a very strong foundation, and that you know the ins and outs of your business first before thinking of expanding it. Be willing to learn the lessons and take the challenges that will come your way as you grow your business.
6. Start saving right now. You see, it’s not how much money you make, but it’s all about how much money you save.
7. Don’t get into debt as much as possible. And in paying off your debt, if you have one (who doesn’t?), remember this, it’s not the amount that’s important; what’s important is your willingness to pay.
I guess that’s about it for now. Until then, always think of how you can help our country by creating jobs and by being our own employer, instead of looking for one. Let me also add, we Filipinos need to change our mindset towards work/jobs. In my opinion, most Filipinos are lazy thinkers. We’re not going to make any headway if we’ll always think of getting a comfortable job, and by being employees all our lives. As the great John Gokongwei, Jr. once put it, “Entrepreneurship is the answer. We need young people who will find the idea, grab the opportunity, take risk, and set aside comfort to set up businesses that will provide jobs. If you dream of creating something great, do not let a 9-to-5 job – even a high-paying one lull you into a complacent life. Let that high-paying job propel you towards entrepreneurship instead.”