2019: A Year of Success for Sprout

In just a span of 4 years, Sprout has evolved from a humble startup into a company that provides class-leading HR and payroll software for the Philippines. We’ve done so many things this year, and we couldn’t have made it without your support. Here’s a recap of everything we did in 2019 – our hardships, achievements, and new stuff – and what to expect from our award-winning HR and payroll suite in 2020.

Sprout HR

Our class-leading HRIS platform, Sprout HR, saw some major feature releases this year. In addition to new features, we’ve also launched its companion mobile app for iOS and Android devices. Here’s what we’ve introduced to Sprout HR in 2019.

Timesheet locking – This feature allows HR teams to lock filed timesheets for payroll processing, which avoids issues such as last-minute attendance application filing and pay inconsistencies.

Compensatory time off (CTO) – Sprout HR introduced a cool new feature called compensatory time off, which effectively converts overtime hours into employee leave credits. This solves a lot of problems for manager-level employees who are manually adding leave credits in the past.

Multiple location geofencing – Geofencing refers to the technology that creates a virtual boundary or “fence” within an area or location where the employee is allowed to clock in or clock out. We’ve introduced the ability to set multiple locations for employees who are frequently on the go, so they can clock in and clock out with ease.

Sprout Payroll

Sprout Payroll continues to be the easiest payroll processing platform in the Philippines. It allows payroll teams to generate digital pay slips, automate government forms, and stay fully compliant to the Philippine labor regulations – all with just a few clicks. New and exciting features have been introduced for Sprout Payroll in 2019, which brought incredible value to this powerful payroll tool.

Pre-annualization – Annualization is among the toughest and most time-consuming payroll tasks, which is why we’ve made it easier with the pre-annualization feature in Sprout Payroll! Perform annualization before the end of the year and get accurate tax computations and results.

Date-specific adjustments – Some companies adjust their employees’ pay based on tenure or events such as birthdays, so we’ve introduced date-specific adjustments in Sprout Payroll to make it easier for payroll teams to process payroll for such employees.

Rest day per employee – This feature allows Sprout Payroll users to assign different rest days per employee, rather than having a single rest day scheme for the entire organization.

Simultaneous payroll run – Sprout Payroll has made payroll runs much easier for companies who need to run simultaneous payroll runs for different pay cycles.

Sprout Insight

Insight is Sprout’s powerful data analytics platform, driven by artificial intelligence to help businesses make more informed decisions. We’ve introduced a refreshed look and feel to various dashboards, such as Absenteeism, Payroll Expense, Overtime, and Attendance Report dashboards, to provide a more intuitive user experience.

Sprout Loans

Our newest product, Sprout Loans, redefines employee salary loans in the Philippines. Sprout Loans makes getting a cash loan easy and hassle-free in just a few clicks within the Sprout HR employee dashboard. Eligible regular employees can avail up to Php 10,000 that’s credited to their payroll account in minutes and can be paid in their next two pay checks. The application process has been made very easy – there’s no need for paperwork or collateral – plus, we don’t charge any interest so employees get more out of their cash loan.

Series A

We’ve also successfully closed our Series A funding worth US$ 6 million! U.S.-based Point27 Ventures and Next Billion Ventures (NBV) led the funding round, with the participation of Kickstart Ventures, Beenext, Wavemaker Partners, Endeavor Catalyst, and Dymon Asia. We’re proud of this achievement, and we thank our investors for putting their trust in us and in the future of our leading HR and payroll software.

ISO 27001:2013 Certification

They say that data is the new gold – it’s also why we want to keep our clients’ data safe and secure at all times. We’re proud of our recent ISO 27001:2013 certification given by TÜV Rheinland. It’s the global standard for information security management systems – having this certification means that we do everything to protect the information of our valued clients.

What comes next for Sprout in 2020?

Expect new features and refinements to our current products, because we want to make HR and payroll tasks easier for you! We’re always ahead of the competition in terms of government compliance – we’re updating Sprout HR and Sprout Payroll to be fully compliant with the new contribution rates for PhilHealth and Pag-IBIG in 2020. We’re also expanding the reach of our benefits platform to help more Filipinos improve their lives within and beyond their workspaces. After all, we’re extremely motivated to make an impact to every Filipino by improving businesses in the country.

Thank you for being part of the Sprout family in 2019! Cheers to an awesome 2020!

The post 2019: A Year of Success for Sprout appeared first on Sprout.

source https://sprout.ph/blog/2019-sprout-success-year/

Letting Someone Go from Work? Here’s What You Should Ask Them

Finding the right answers on why an employee leaves a company requires open and honest communication. It’s particularly difficult to hear these answers when your outward-bound employees don’t feel like giving out the information you want to hear. How do you get around this? Read this blog to find out the best questions to ask your employees before they leave.

Here are five questions you should ask your employees before letting them go.

“In which ways do you think you’ve contributed toward the success of the company?”

This question may seem to be pointed towards high-performing employees, but there’s more to it than just that. Knowing what motivated your employees to do the right thing at the right time is key in discovering what produces great results and what doesn’t. By asking this, you’ll also get more context on which things distract people from doing their best work, and what factors increase their productivity.

“How do you see yourself in your next career choice, and how would your decision today affect it?”

A major part of doing an employee exit interview is by knowing what comes next for the employee. You would want to get a deeper sense of what lies ahead for them, since whatever they’re trying to achieve outside of your company may only become possible once they depart. If your opinion on career growth contradicts theirs, you may have uncovered things that need to be improved within your organization.

“What was the best thing that’s happened to you during your stay at this company?”

This one is fairly easy. Ask this question and you’ll get a broader sense of their accomplishments during their stay. You’ll also be able to gauge the amount of autonomy and responsibility you gave to them to do their job. If they said that they wish they had more freedom to do things, it could be a signal for you to reevaluate your organization’s structure and hierarchy.

“What was the worst thing that’s happened to you here, and in what ways do you think it could’ve been avoided?”

On the contrary from the previous question, this one is a bit tricky and could lead to bad arguments if asked in the wrong way. Carefully ask this by not asking follow-up questions, and avoid being defensive. Let your employees answer this question in the most natural way, because it allows them to vent out their sentiments, give suggestions to improve things, and show you the little things that your current employees are too shy to raise red flags about.

“What things would you tell the person who would take over your role?”

Ask this question and you’ll hear some valuable insights about the role itself, such as its demands and the necessary skills required to do the job well. Your employees will tell you a brief outline of what you should expect from the person taking over. It also guides you on the way you should reallocate company resources to help the next person succeed better than the one who left.

Letting an employee go is hard, especially if you’ve already built a working relationship with them and they’ve done an incredible job. But you need to ask them the right questions so you can easily connect the dots.

The post Letting Someone Go from Work? Here’s What You Should Ask Them appeared first on Sprout.

source https://sprout.ph/blog/exit-interview-best-questions/

How to Compute Your SSS Contribution (Updated for 2019)

You may be wondering how you can check if your mandatory contributions are accurately deducted from your monthly pay. If your company’s HR team still computes for these contributions manually, you may see disputes or errors in computation – it pays to check your deductions every time you get paid.

In this article we’ll take a closer look at the Social Security System’s mandatory contribution schedule for employed individuals, which was recently updated this year. SSS released the new contribution rates in April 2019 and these new rates reflect increases across the board.

To compute for your monthly SSS contribution, check out this comprehensive infographic from SSS.

A simple illustration would be someone who’s earning Php 15,750 a month. Based from the new contribution schedule, the employee would be deducted Php 640 and the employer (your company) would pay Php 1,280 which is twice the employee’s contribution. Before the new contribution schedule was implemented, employees who were earning at least Php 15,750 a month were deducted Php 581.30 for their SSS contributions. The new rates represent a 10 percent increase in contributions for all affected employees.

Payroll software such as Sprout Payroll automates these mandatory deductions, so there’s less room for human error and less stress for both HR teams and employees. Learn more about Sprout Payroll by booking a demo today.

The post How to Compute Your SSS Contribution (Updated for 2019) appeared first on Sprout.

source https://sprout.ph/blog/compute-sss-contribution-updated-2019/

Updated PhilHealth Contribution Schedule for 2020

In response to the recently enacted Universal Health Care Act of 2019, the Philippine Health Insurance Corporation (PhilHealth) has released a new contribution schedule that will take effect on 07 December 2019.

More information about this announcement can be found by clicking this link.

According to PhilHealth, the new contribution schedule aims to ensure the sustainability of the National Health Insurance Fund, which will be the main source of funding for the Universal Health Care program of the government.

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Sprout remains fully compliant with Philippine regulations. Our payroll software, Sprout Payroll, is currently being updated with the new premium rates set by PhilHealth. Clients using Sprout Payroll may refer to this Help Center article for more information on how to set up these adjustments.

The post Updated PhilHealth Contribution Schedule for 2020 appeared first on Sprout.

source https://sprout.ph/blog/updated-philhealth-contribution-schedule-2020/

Sprout’s Free Payroll Tool Helps Small Businesses Thrive

Small businesses in the Philippines make up 99 percent of the economy – a true force to be reckoned with. As the majority of all Philippine businesses, they help drive and stimulate economic growth for the country, helping tens of millions of individuals in the process. As an HR tech company, Sprout is fully committed to helping small businesses realize their full potential and collectively strengthen the Philippine economy even further.

Sprout wants to make an impact to the lives of every Filipino by improving business in the country – it starts with the growth of small businesses fueled by our free payroll software. We’re giving small businesses the freedom to focus more on their business growth strategies and less on doing repetitive and manual tasks such as payroll processing.

With Sprout Payroll now made free for small businesses, we’re helping small businesses become efficient and fully compliant with the government. Sprout Payroll supports all 21 government forms and automates them, taking away the stress of manually filing these forms. It also supports up to 32 different pay types, allowing small businesses to effortlessly compute employee salaries with just a few clicks.

Payroll disputes and issues are things of the past, thanks to a fully automated computation of government-mandated deductions and adjustments. Payroll teams can access their Sprout Payroll dashboard anytime and anywhere there’s an internet connection. Employee data is safe and secure thanks to Sprout’s compliance with the Philippine Data Privacy Act and the globally recognized ISO 27001:2013 standard for information security management systems.

Sprout knows how tough it could get to handle payroll requirements of a small business and being fully compliant with Philippine labor regulations – with Sprout Payroll now made free for small businesses with up to 50 employees, we’re empowering small businesses to spend their time on the things that matter most.

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Find more information about Sprout Payroll for Small Businesses through this link. You may also refer to these articles:

https://www.adobotech.net/sprout-solution-digital-payroll-solution-to-smes/
https://www.techpatrl.com/sprout-offers-digital-payroll-solution-to-smes/
https://www.dotdailydose.net/2019/11/21/sprout-offers-digital-payroll-solution-to-smes-innovative-tech-helps-businesses-stay-fully-compliant/

The post Sprout’s Free Payroll Tool Helps Small Businesses Thrive appeared first on Sprout.

source https://sprout.ph/blog/sprout-payroll-free-small-businesses/

13th Month Pay Basics in 2019

‘Tis the season to be jolly, they say – the holiday season brings the best of things, including the most anticipated 13th month pay. In the Philippines, companies tend to give their employees with what’s called a 13th month pay. It’s a form of gratitude and support of the companies toward their employees for their hard work during the year. But there are many details involved in this gesture – some of which will be discussed for clarity in this blog.

Without further ado, here’s all the basic stuff you should know about the 13th month pay.

What is the 13th month pay?

It’s a form of payment given out to all rank-and-file employees, regardless of their employment status and the way they are paid, who have worked for at least one month during the year.

What is a rank-and-file employee?

A rank-and-file employee is an employee who does not have managerial duties such as hiring or suspending other employees.

How much is the 13th month pay?

It must be at least one-twelfth (1/12) of the total basic salary earned by a rank-and-file employee for the year. It does not include allowances and other cash benefits, which are not part of an employee’s basic salary.

When is the 13th month pay given out?

Eligible employees who have rendered at least one month of work during the year should receive their 13th month pay on or before 24 December of the same year.

Which employers are not eligible to give out 13th month pay?

The government, companies that run a similar payment scheme, persons in the personal service of another, and companies paying their employees on a purely commission, boundary, or task basis are exempted from giving out 13th month pay.

I’m working for multiple employers. Am I still eligible to receive 13th month pay?

As long as your employer isn’t exempt, you will receive your 13th month pay from each of your employers, as long as you have worked for at least one month for every eligible employer during the year.

I resigned from my employer before the year ends. Am I still eligible to receive 13th month pay?

You’ll receive your 13th month pay based on the length of time you’ve worked during the year. For example, if you resigned last September and you’ve been with the company since January, you should receive one-twelfth (1/12) of your total basic earnings from January to September of the current year only.

I got separated from my employer before the year ends. Am I still eligible to receive 13th month pay?

You’ll receive your 13th month pay based on the length of time you’ve worked during the year. For example, if you were separated from your company last September and you’ve been with the company since January, you should receive one-twelfth (1/12) of your total basic earnings from January to September of the current year only.

Is my 13th month pay taxable?

As long as the value of your 13th month pay does not exceed ninety thousand Philippine pesos (Php 90,000), it is not taxable.

The post 13th Month Pay Basics in 2019 appeared first on Sprout.

source https://sprout.ph/blog/13th-month-pay-basics-2019/

Official Philippine Holidays 2020

It’s time to plan your 2020 getaways! The official calendar for 2020 Philippine holidays has just been released by the Malacañang Palace on November 15.

According to the Proclamation Number 845 signed by President Rodrigo Duterte, there are 10 regular holidays and 9 special non-working holidays. There are some holidays, however, that can’t be officially announced yet due to their unpredictable nature – these are the Eid’l Fitr and Eid’l Adha Islamic holidays.

The upcoming year also has two regular holidays occurring on the exact same day – these are the Araw ng Kagitingan (Day of Valor) and Maundy Thursday, both of which are happening on the 9th of April. Double holidays are a rare occurrence, but Sprout’s payroll software can handle these types of pay computations as well as 31 other pay combinations.

Here’s a visual look on these upcoming holidays, so feel free to check them out and start planning your leaves for next year!

The post Official Philippine Holidays 2020 appeared first on Sprout.

source https://sprout.ph/blog/official-philippine-holidays-2020/

From Seed to Sprout: 5 Q&As with Patrick Gentry on Sprout’s Series A Round

When Patrick Gentry arrived in the Philippines back in 2008, he knew that there had to be something that could fix businesses’ woes on administrative tasks such as timekeeping and payroll. Sprout began with its payroll tool called Payroll Pie, which evolved over the years to accompany a powerful timekeeping solution called HR Hub. Over the years, these software evolved into what Sprout’s current core offerings are: Sprout HR, Sprout Payroll, and Sprout Insight.

Sprout has now helped hundreds of Philippine businesses streamline their HR and payroll processes, and we’re just getting started on our mission of improving the life of every Filipino by improving businesses in the country. Our recent milestone, which is closing a successful Series A funding round, marks the beginning of another major chapter in Sprout’s history. We sat down with Patrick Gentry, Sprout’s CEO and Co-founder, to talk about the journey of closing the Series A round.

What made Sprout pursue this Series A funding after a successful Seed round which took place over a year ago?

We have a really big mission and a long roadmap here in the Philippines. We raised capital to drive towards our big goals more quickly.

Tell us some major differences between the process of raising Sprout’s Seed round and the Series A.

The seed round was tough. Just a few years ago, investors, especially overseas, wouldn’t consider the Philippine market. However this year we had a lot of interest and several term sheets from overseas investors. I’m happy to see the Philippine market making huge progress in the tech scene.

What are the challenges you encountered during the time when you were pitching Sprout to Point72 and NBV?

These investors understand our business model really well – to be honest, talking to them was quite easy. As I mentioned, the Philippines has emerged on the VC map globally. We were able to find awesome overseas investors like NBV and Point72 that really “get” our business, which makes working together really fun.

What are the most important things you’ve learned during this experience, and what advice would you give to other entrepreneurs who want to raise funds for their own startup?

Be honest, don’t exaggerate numbers or traction. At the same time, you need to communicate your vision as clearly and succinctly as possible. Your big vision needs to be crystal clear to them – it shouldn’t be hard to understand. Then, present how you are working towards that vision. It should be logical and hopefully as “no-brainer” as you can make it. Investors see a ton of companies – make it easy for them. Don’t make them think, because you will slip in priority.

Give us a brief overview of what’s next for Sprout after its successful Series A round.

We are growing here in the Philippines! We are moving towards our North Star of impacting the lives of every Filipino by improving business in the Philippines. In 2020 we are introducing Sprout Benefits, our way of helping companies provide benefits to their employees that are desperately needed here in the Philippines. Our goal is for our clients to make their employees’ lives better, at no extra cost or administrative effort.

 

The post From Seed to Sprout: 5 Q&As with Patrick Gentry on Sprout’s Series A Round appeared first on Sprout.

source https://sprout.ph/blog/sprout-series-a-questions-answers/

Sprout Solutions Raises US$ 6 Million in Series A Round

Sprout just hit another major milestone: we’ve closed our series A funding round, raising US$ 6 million in fresh funds primarily from U.S.-based Point72 Ventures and Next Billion Ventures (NBV). Other participating investors include Dymon Asia, Endeavor Catalyst, Kickstart Ventures, Beenext, and Wavemaker Partners.

“It will be going towards operating expenses and expansion. We are expanding throughout the provinces. Previously, we’ve been focused in Metro Manila. We’re spreading our range a lot more nationwide,” said Patrick Gentry, CEO and Co-founder of Sprout.

This funding round is Point72 Ventures’ first foray in Southeast Asia, and NBV’s first in the Philippines. Sprout believes that this investor confidence reflects the growing interest in the Philippine market as an attractive location for injecting capital.

“It’s super exciting, because you have all these challenges that make it difficult for new businesses here, but you also have all these super high-quality tech startups beginning to appear,” shared Gentry when asked about his outlook for the country’s tech scene. “When they overcome these challenges, it’s a great indicator to capital investors that the company is really doing something right.”

For more information, check out these pages:

https://techpatrl.com/sprout-solutions/
https://www.techinasia.com/hr-payroll-startup-sprout-6m-injection-nybased-point72-ventures
https://www.gmanetwork.com/news/money/companies/711639/sprout-solutions-secures-6m-in-fresh-funds-to-expand-beyond-metro-manila/story/

The post Sprout Solutions Raises US$ 6 Million in Series A Round appeared first on Sprout.

source https://sprout.ph/blog/sprout-solutions-seriesa-funding/

What It Takes to Start a Hobby-based Business

Do you love writing, painting, taking photos, knitting or just about any hobby? These are hobbies that you can turn into a business if you’d like. Some avid hobbyists have become CEOs pursuing their very own small business after monetizing their hobby. You can take the same route after considering a few things.

Are you ready to turn your hobby into a business?

There are hobby-based business CEOs who have cautioned others about losing their love for their hobby after the demands of a business set in. Doing it for fun is different from doing it with a deadline. There are also customer satisfaction and financial goals to keep up with. The business side of things could ruin the fun you’re used to getting from your hobby.

You can ask yourself these questions to help you decide whether making money out of your hobby is right for you:

1. Will you still have fun with your hobby when there’s a deadline to beat?

You’d have to do things fast if you want to make a profit. If it remains a hobby, you can afford a more leisurely pacing without any pressure.

2. Will you still love it when not doing it means that you’ll lose your source of income?

Before going full time with your hobby-based business, think about your ongoing bills. You won’t be able to pay them if you don’t write, paint, knit or take photos. This is also why you should still keep your 9-5 job instead of leaving it to focus on your new business. But can you manage both?

3. Are you ready to commit to your hobby for a long time?

Doing something to relax is different from doing it for life to earn a living.

4. Do you find starting a business a challenge?

Remember that you might have to do almost everything at the beginning. If this only serves to motivate you as a challenge, then you can start a business. Later on, you can even set your eyes on targeting immense business growth.

5. Can you promote yourself or your products?

It can help your business if you’re confident that you can sell your drawings, photos or knitted items.

Tips to consider after deciding to monetize your hobby

It takes more than just your passion to ensure that you can earn money from doing your hobby. Since you’re turning it into business, you have to think about whether you even have people willing to buy your products or services to. You also have to think about how you’re going to manage the orders, among other trivial things. Here are some important pointers to think about before starting your business:

1. Find a market for your product or service.

Talk to your friends and colleagues first and ask them if they are going to buy what you are offering. Ask other people whether they are going to pay for what you want to sell. Do your research about the demand for your products.

It also helps if you go where your potential customers go. Join fairs, take part in related events, or go online. If you see interest in what you have to offer, check how much people are willing to pay for it.

Monitor the trends in the industry related to your hobby. Check out what the hottest products are. Aside from attending fairs and events, follow the industry leaders’ websites and social media pages. This can help you develop new and better ideas to sell and earn money from your own hobby.

2. Don’t rush things; aim for consistency instead.

While it is good to set your sights on achieving growth as a small business, it is equally important to take your time in doing it. But this does not meant that you only do it whenever you feel like doing it. Carve out time in your schedule to hone your craft if you want to further develop it. Set small business goals to help you monitor your activities.

For starters, don’t let go of your day job just yet. Instead, use your regular salary to save up money to fund your business. When you’ve saved up enough, you can add more to your new business’ capital.

3. Manage your time well.

Keeping up with the demands of your day job, launching a new business, and attending to other responsibilities can be draining. But you can manage all these with proper time management.

It may help if you also find a good time management app to monitor everything that you have going on. Use these types of app to remind you about your to-do list and the progress of each task.

4. Invest in a website.

Creating a website is a must-do for any startup business these days. Your potential customers should be able to find you online or your credibility might take a hit. Creating a website is one way to take care of this.

You can use your website to tell your story and share your dreams of growing your small business. Use it educate your clients about your products and show them exactly how you can help them. Websites can play many roles in marketing, selling and offering customer service.

Look for a reliable website developer to make a credible-looking website. Prepare it to become an online store for you, complete with marketing and payment tools.

5. Use social media to your advantage.

Tell the world about your business through social media. Use your social media pages to engage your potential customers and get their feedback. Just like with many other businesses, use it to attend to after-sales needs. Engaging your customers can help them perceive your business positively. They can become loyal customers who can promote you to their connections on social media, too.

6. Manage your finances properly.

One of the downfalls in starting a business is financial mismanagement. You can avoid this by separating your personal finances from your business finances. You may also want to consult an accountant and invest in an accounting software. If you want to get employees on board, make sure to invest in payroll software, too.

If you are confident about your hobby and have found a market for it, then there’s a good chance that you can monetize it. It can be a good source of extra income. As it grows, it can even become your major stream of revenue in the future!

The post What It Takes to Start a Hobby-based Business appeared first on Sprout.

source https://sprout.ph/blog/start-hobby-based-business/

Register, File, Pay: A Guide to Business Tax Compliance

Small business owners face a common struggle in business operations: tax compliance. In the Philippines, the Bureau of Internal Revenue offers the “Register, File, Pay” approach to help small business owners comply with business taxation.

Register

Say you’re an individual with a business dream in mind, cash on hand, and a burning desire to make it happen. Without the government’s approval of your operations, you are doomed for closure. The first thing you should do when you plan to operate a business is to head over your Revenue District Office and register.

Be prepared by accomplishing the following documents before lining up to register.

• • Birth Certificate issued by the Philippine Statistics Authority
  • Mayor’s Permit issued by the Local Government Unit where you intend to have your business operations
  • Department of Trade and Industry (DTI) Certificate of Business Name
  • Professional Regulation Commission (PRC) ID for self-employed professionals
  • Payment of Professional Tax Receipt

A BIR officer would hand you a BIR Form 1901, otherwise known as the Tax Treaty Relief Application Form. Fill out this form and prepare a registration fee of Php 500.00 that you will pay at an Authorized Agent Bank (AAB). Don’t forget to bring your BIR form 0605 upon payment of the charge.

You’ll receive a Certificate of Registration once done with the steps above. This will serve as your admission or access for filing tax returns and making payments. While you’re at it, always ask for your receipts and ask for BIR form 1906 for your “Authority to Print” official receipts. Do not forget to register your book of accounts and have your ledger/ journal/ subsidiary books stamped. You’re also required to attend a taxpayer’s briefing at your respective Revenue District Office.

File

Tax filings are mandatory. Even if you don’t pay for the intended period, you’ll have to file your returns. There are three tax filing returns that confuse entrepreneurs everywhere. It is essential to know the deadlines so that you won’t rush and get penalized.

• • Percentage Tax – percentage taxes are filed every 20^th of the month together with a duly accomplished BIR form No. 2551Q. Under the National Internal Revenue Code of 1997, sections 116 to 127, the percentage tax is imposed on entities, persons, or transactions.
  • Income Tax – you need to file for income tax every 20^th of the month. Aside from that, you need to submit it quarterly, which is on the 15^th of April, August and November. This is required for self-employed individuals, trusts, real estate and for individuals with both compensation income and business income. For annual filing, fill-up a BIR Form No. 1701. For quarterly filing, fill up a BIR Form No. 1701Q.
  • Value Added Tax – filing for value-added tax returns are done every 20^th of the following month. For its quarterly filing, you’ll have to remember that it is done every 25^th of April, August, and November.

Pay

Now that you have filed your tax returns, the last step is to pay for it.

• • Income Tax – rates for income taxes range from 5% to 32%. Although the actual amount that you need to pay is not fixed and will depend on an individual’s net taxable income, if you take a look at the back of your ITR, there is a table that will guide you.
  • Allowable deductions – individuals or entities can choose between itemized or optional deductions. The optimal standard deduction (OSD) trims 40% of the total amount of gross receipts and sales. Meanwhile, itemized deduction lists all of the expenses paid and incurred during the taxable year and is deducted from the gross income.

Tips and Tricks

• • It wouldn’t hurt to invest in learning materials like books about basic taxation or spending for a helpful seminar about BIR tax compliances. Although the RDO offers a free and mandatory one, it would benefit you to seek more knowledge about this.
  • Consider hiring a bookkeeper or a certified accountant if you can’t keep up with this task. It’s a good idea to hire somebody that knows the ins and outs of taxation so you can focus your energy on more important things.
  • Preparedness beats the long line at the BIR office. Better file all of your tax returns before its due date so that you won’t get frantic at the last minute.
  • If you’re the one computing your tax payments, better do it ahead of time. This will give you enough time to check for errors and prepare for financial expenditures.
  • Attachments are always necessary. Before heading out to your designated RDO, bring everything with you. It would also help to check the back page of every BIR form for the complete list of the attachments you need for payment and filing.
  • Always declare your income honestly and accurately. The BIR conducts several investigations whether you record sales and report it in your books. Declaring incorrect income information can lead to criminal charges.
  • It’s important to issue official receipts every time. All receipts or invoices should reflect tax computation. Make sure to have them ready at all times as the RDO may ask for a sample during tax mapping activities.
  • Keep your account books updated. Record every transaction every day. Not only this is a fundamental mantra for bookkeeping, it will also help you keep track of business growth.

The post Register, File, Pay: A Guide to Business Tax Compliance appeared first on Sprout.

source https://sprout.ph/blog/business-tax-compliance-guide/

About SproutX

Welcome to SproutX, a glimpse into the lives of Sprout Rockstars and how they make things happen with Sprout’s HR and payroll software.

Sprout is a relatively young company – it started back in 2015 when Sprout CEO and co-founder Patrick Gentry along with his wife, business partner, and co-founder Alex Gentry (née Agbayani) decided to launch a reliable HR and payroll solution for Philippine-based businesses, eliminating the need for manual processes and countless days of tedious work for HR and payroll teams.

Since then, Sprout has grown – quite literally – from a small team to over 200 employees to date. We’ve helped hundreds of businesses and tens of thousands of employees in the Philippines simplify their HR and payroll processes and have more time for more important stuff.

We’ve come up with an idea to bring to the outside world a closer look into how each member of the Sprout family contributes to the success of Sprout as a software company, and why Sprout is a great place to work for anyone whose looking to make an impact in the country. That idea turned out to become SproutX.

SproutX serves a singular purpose of telling stories behind the people who drive Sprout’s powerful software, and how the rich tapestry of these individuals – collectively known as Rockstars – contribute to the one-of-a-kind culture that Sprout is known for. It’s not just a representation of Sprout as a brand, but as a symbol of the unique working culture that every Sprout Rockstar is proud of.

SproutX aims to bring lighthearted content to our loyal blog readers, social media followers and subscribers, with the ultimate goal of showing how we come together as a family and how we make things happen while having fun while we’re at it. We hope that SproutX fulfills its promise of bringing the latest scoop on what’s happening inside the Sprout HQ and telling the story of every Rockstar in more ways than one.

See you around!

The post About SproutX appeared first on Sprout.

source https://sprout.ph/blog/sproutx/

Starting a Business With a Small Budget

Are you planning to put up a business but don’t have enough cash on hand? There are a lot of successful businesses out there that had limited financial resources at first. Even if you’re short on capital, you can still make the most out of what you have. Here are helpful tips on how to start your own business with a small budget.

Work from home

Office space lease ranks at the top of business expenses. You’ll save a lot of money if you can forego this expense. Larger businesses can benefit from office space leases, but it’s the complete opposite for small businesses. Run an online business? You can run your business with a reliable internet connection, sans the overhead costs of renting out a space.

It also helps to check with your local government about existing rules on running a home-based business. This lets you avoid possible headaches down the line.

Be a sole proprietor

Being a sole proprietor means you can launch your business much easier than setting up a corporation. Sole proprietorship businesses are owned by an individual and have no legal identity apart from that individual.

There is a time to incorporate your business, but that is when it is already big enough. One advantage of a corporation is that when it accrues debts, you will be protected from the debt because the corporation is legally a separate entity. Corporations are also eligible for certain tax benefits.

Avoid buying new equipment

Buying new equipment can take a toll on your limited business budget. Take advantage of what you currently have. You can even get tax perks by repurposing your personal assets into business assets.

Choose a business that does not require office space or very expensive equipment. Such a business will already be able to generate revenue immediately or in the short run.

For essential equipment, consider buying secondhand equipment instead. Upgrade your personal computer instead of buying a new one. Having a scanner may be nice for your home office, but if you do not need to scan documents regularly, the money for this may be put to better use elsewhere, especially for things that will help generate more income immediately.

Buy wholesale and find partners

When you start purchasing the products you will be selling, find vendors who are willing to help you start successfully; many of them can draft a budget plan that suits your capabilities. You can find such vendors in trade shows and online.

Furthermore, you would do well to buy from wholesalers or distributors. Their prices and payment plans will help you save. Search for distributors and wholesalers and talk extensively with their sales representatives on how they can help you. Find the best vendor that will best assist you in saving on capital.

Plan well

Set your goals and plan carefully. Compare your resources with the amount you need to invest. Consider getting loans if necessary, although banks usually have very high loan interest rates, and will quickly eat up your capital before you can even take off. Consider borrowing from family and friends, who may allow minimal interest.

Develop a realistic budget for revenues and expenses for at least the first year, as well as contingency plans should your expectations fail to materialize. Such plans may include cost-cutting or adjusting your timetable for target goals and expected returns.

Ask your sources for term payment schemes of a month or even longer, so that you can have more cash on-hand. Avoid paying cash as much as possible.

Minimize on-hand inventory

If possible, minimize or eliminate buying your products. This entails a lot of capital which can leave you cash-strapped. Make a way to drop ship your product directly from your source to the buyer, paying only for it once it is shipped. In addition, require your customer to pay you first so that you are more liquid and can pay your source immediately.

Choose consignment

Selling products on a consignment scheme will be advantageous to you because you will not have to pay for stocks that are not yet purchased. This reduces your need to invest money in your products, because you only pay for those that have already been bought. Consignment, however, may be disadvantageous if you will receive a reduced commission, instead of the standard rates. This is the trade-off of not having to pay for your stocks.

Lessen the workforce

If it is possible for you to do most of the work in the business, then do so. Hiring employees is a huge addition to your overhead costs. However, you should hire people if necessary, especially for tasks that you do not have any expertise in. Doing jobs that you are not suited to may result in serious mistakes that may harm your business more than help it.

You may also consider outsourcing independent contractors for specific jobs instead of hiring full time workers. Regular employees means extra paperwork, taxes, and more expenses.

Final thoughts

Starting a business on a small budget may be challenging, but it is possible. You can succeed with very little capital by minimizing costs on overhead and non-essential assets; getting paid immediately; becoming financially savvy; knowing where and how to save; eliminating high inventory and labor costs; and planning thoroughly.

The post Starting a Business With a Small Budget appeared first on Sprout.

source https://sprout.ph/blog/starting-business-small-budget/

Why Being Simple is Key to Startup Success

If you are launching a startup, you should understand that there is only a ten percent chance that you will succeed. One of the reasons why 90 percent of startups fail is that they have tried to be many things to many people. Perhaps they are not aware or have simply ignored the concept of KISS (Keep It Simple Stupid).

Why Keeping It Simple Is Important

It goes to say that, if you want your start up business to succeed, you should simplify everything at the start. Keeping everything simple will allow you to concentrate on your goals. You will also have a few things to worry about.

If something happens that seems to scuttle your efforts, you will be able to isolate the cause of the problem and solve it easily and not let it hamper the speed by which your business will take off. You will not have this luxury if you have many things going on simultaneously in your startup.

Don’t Follow This Example

Early on, you should understand the things that you must absolutely avoid. Don’t try to do many things at the same time. For instance, a company which seeks funding for its startup listed many things that it says it will do to convince the financiers to provide its needed capital.

The startup company claimed that it has the capacity to engage in the following business niches:

• • ad sales network
  • app and software development
  • human resource management
  • consumer brand marketing

As you can see, these market niches are themselves wide and varied. The startup entrepreneur will be spreading himself too thin in all these varied business niches. He is trying to be many things to many people. As his concentration suffers – so will his business.

Here’s An Important Thing That You Need to Understand

In business, you need to be specific and detailed. For instance, B2B marketing is entirely different to B2C marketing. Many business pundits believe that B2B is more about getting the sales, while B2C is more on promoting and marketing your products or services.

In the way that their businesses are run or operated, some B2Bs are even different from other B2Bs. Take for example a B2B technology business and a B2B services company. The B2B tech company is driven by software coding while the B2B services company is more human driven.   

As you can see, these differences even in B2Bs will make things complicated for a startup entrepreneur, if he tries to eat more than he can chew. The need to be simple is really a key to your startup success.

What You Should Do

The best thing to do is for you to assess your present situation. Look at your strengths and your weakness. This will be a good time for you to emphasize your strengths and to downplay your weaknesses.

It is only logical for you to engage in a business where you can take advantage of your strengths. Don’t try to involve yourself in a business just because it has the potential of earning big money.

But suppose you have already involved yourself in a particular market niche. For sure, this market niche is already populated with many competitors. What you need to do is to try to find out the aspect of the business that you can use to distinguish yourself from your competitors.

Let’s take the example of a furniture maker. In any community, there are lots of furniture makers that can supply the needs of homeowners, business owners, restaurants, and the rest of the public.

One way to differentiate your startup company from your rivals is to offer something that the others are not offering. This is where your due diligence comes in. You really have to find out what it is that will make you stand out from your competitors.

Once you discover that thing, make a big splash out of it. Attach that thing to your brand and always repeat it until your market or your customers get the clue. Once this particular thing is established in their minds, it will be as if you are the sole owner of it.

The Next Thing to Do: Develop a Simple Startup Business Plan

Even if you are just a startup, you still need to develop a business plan. The one thing that will direct your planning is the word SIMPLE. Your business plan is like a roadmap. It will help you make decisions, move forward and help you reach your business goals.

Try to develop a simple business plan. That doesn’t mean that you’ll always stay simple. You can elaborate on your business plan as you achieve success in your initial goals. You will need this plan especially if you will ask help from financial institutions to fund your projects.

There is such a thing called Lean Business Planning system. This will help you formulate your plan without straying away too much from your idea of being simple and lean at the start. This plan should help you define what you want from your startup business, what your customer wants, and how you can optimize your business.

You will also need to design a simple expense and sales forecast. If you have an accounting background, you can also include a profit and loss projection. Don’t forget the initial stage of your business plan which is the pitch or your Mission Statement.

This MS should define the solutions you are providing that will solve the problems of your target market. You could only arrive at this solution after you have done a decent market analysis. You have to first analyze your market so that you can better understand your market and its needs.

Conclusion

Keeping it simple at the early stages of your startup will enable you to flex your wings as you achieve your initial objectives. In this regard, picking just one business strategy which is the most lucrative for you to pursue, will also help you succeed. By keeping it simple, you may be able to join the ranks of the 10 percent startups that were able to succeed in business.

The post Why Being Simple is Key to Startup Success appeared first on Sprout.

source https://sprout.ph/blog/simple-key-startup-success/

How to Tell an Employee About His Work Performance

Many people find it hard to tell someone about the way they do things – whether it’s in or out of work. As a business owner, a manager, or a team leader, you’re faced with an ethical dilemma on speaking about your employees’ performance at work. This conversation concerns everyone in the workplace and must be openly discussed, no matter how taboo it gets. The only way to arrive with a working solution is by talking it through with your employee.

If you’re unsure where or how to strike a conversation with an employee about his work performance, you’ve come to the right place. Here’s how you can break the ice and start helping your team improve upon their work.

Ask how they’re doing

Ask the concerned employee on their own impression of their work performance. This overall assessment could help you construct your next move on opening up about the employee’s goals. By asking how your employee thinks about his performance, you’ll be able to develop a strategy on how to illustrate how your views differ from his, in a way that neither discriminates nor offends.

In most cases you’ll find out that your employee shares the same mindset as yours, but there are times when there’s a partial or a total misalignment. In this case you’ll need to point out specific areas of their work where they are underperforming at.

Point out non-negotiable expectations

After establishing your employee’s desire to improve upon his work performance, go ahead and point out non-negotiable expectations. A detailed list of the things that he needs to work on would be helpful. This should also include your desired goals.

Key performance indicators (KPIs) are helpful in measuring progress on your employee’s work. Discuss how his current metrics are failing, and emphasize the things he should do to reverse the downtrend and regain his confidence in his work.

Collaborate with your employee towards his goals

Employees tend to perform best when they do the things they like or those aligned with their personal goals. But if they have a hard time trying to accomplish tasks on their own, it’s time for you to step in.

Don’t just step in simply because you can – ask questions instead of giving them directions. Collaborate with your employee towards his goals to increase his motivation to accomplish them. Employees will appreciate your help even more if you guide them through asking the right questions. Simply put, there’s no room for being intrusive.

Describe specific behaviors

You’ll be able to target his pain points and how he can improve by being specific about the ways your employee does his assigned tasks. Make sure to describe detailed real-life examples of scenarios wherein the employee has failed to meet the expected deliverables.

Being vague doesn’t answer the question “why did he fail doing this task”. Be specific as much as possible to help the employee develop a mental picture of the failure, and have a resolution plan moving forward.

Construct a common plan

Once you’ve done all the steps above, it’s time to make sure that you and your employee are on the same page. Make sure to ask your employee on how he wants to deal with his work performance going forward. By doing so you can easily identify pitfalls so you can help him achieve his improvements faster and easier.

A concrete timeline of events should also be established. This would serve as the primary metric against how the employee fared in his improvement journey. Be open about the outcomes that the employee must anticipate should his plan succeeds or fails.

Final thoughts

Every employee appreciates a boss who cares about his work performance, especially if they collaborate towards achieving common goals. They say that it takes two to tango – you and your employee can resolve productivity issues by working together. Sit down with your employee and give ample time to construct a solid performance improvement program.

The post How to Tell an Employee About His Work Performance appeared first on Sprout.

source https://sprout.ph/blog/employee-work-performance-goals/

7 Ways to Grow Your Small Business On A Budget

As a small business owner, it is hard to risk and invest your money in expensive marketing and business strategies. You will want to cut costs and save money as much as possible and handle your finances well. It is simply sound fiscal wisdom to look for alternatives and options to grow your business.

Know how to attract and retain customers, build brand awareness, and grow your business network on a budget. Here are 8 of the cheapest ways to grow your small business.

Build solid relationships with your suppliers

Your suppliers might not be on your payroll, but they can help you with some things without any charge, especially if you are taking care of them. They also play a big role in your small business; hence, your relationship with them is very important. Treat your suppliers like how you treat your customers. Show them that you are responsible and worthy of their trust. Having a strong business relationship with your suppliers can only benefit your business in the long run. Your suppliers may even provide you with discounts on some items so you can save your extra funds for something else.

Take advantage of free speaking engagements

The more aware people are about your business, the more they will come to you. Use free speaking engagements to tell people about your brand. The time you will spend on public speaking converts to an increase in brand awareness and influence. You will meet a lot of people who may be interested in your products or will recommend your business to their friends. Speaking in public is not a waste of time so take advantage of every opportunity and be confident in the value you can give to your audience.

Invest in smart business apps

There are lots of business apps that can help you with your daily tasks such as accounting, payroll runs, and email marketing. These apps are very user-friendly and are designed for everyone. Most small business apps can be availed with a minimal subscription fee, and some apps even let you use their services for free.

Connect with small business groups or communities

Join a group of small business owners in your community. Networking with like-minded people will not only motivate and inspire you, but it will also give you opportunities to develop ideas on how you can manage your business better. You can share leads, insights, and resources and help each other grow while learning and having fun together. Remember that growing your network and keeping the right people will help you promote your business easily and more consistently.

Team up with a charity

Engaging with charities and local organizations can boost your brand image. This also allows you to meet more people who can be potential customers. Although it may cost you a little, helping a local cause will earn respect and admiration from the people in your community, especially your customers. If you do not have enough funds to make cash donations, you can volunteer your time and professional services or perhaps hold a charity event for them.

Get personal with your customers

The best way to retain customers is to create a personal relationship with them. Try to get to know them, including their profession, personal interests, and hobbies as this information will help you in addressing their needs more. Show your appreciation when they buy products from you. Send handwritten thank you cards to personally thank them for patronizing your business. These are examples of how you can engage your customers on a personal level. Always take time to talk to or engage with your customers and ask them for feedback as it will help in improving your products and services more.

Be active on social media

One of the easiest, cost-effective, and proven ways to engage your customers is social media. Publish engaging content on different social media sites like Facebook, Instagram, Twitter, and YouTube. Because millions of people are active daily on these sites, you can widen your reach and attract more customers. Find out which sites give you the most engagement and conversions and be consistently active on them.

Final thoughts

Just because your business is small does not mean it will take you forever to see it grow. Even with a bootstrap budget, you can grow your small business as long as you have the passion, commitment, and patience to explore different business growth strategies.

The post 7 Ways to Grow Your Small Business On A Budget appeared first on Sprout.

source https://sprout.ph/blog/grow-small-business-budget/

How to Promote Your Product as a Small Business

Now that you went through the initial challenges of starting a small business, there’s still a lot to do. A major hurdle is marketing or promoting what you sell.

Fortunately, there are a number of ways and tools to make your marketing efforts a breeze. Here are several ways that you can take advantage of.

Set up a website

A website is your customer’s window to your products. It also serves a range of purposes – from putting your product photos to being a reliable information source and even as a lead generation tool.

Do you find it hard to create your very own website? Consider third party services that offer page templates and pre-made website designs. These webpage services also makes it easy to create your own website without learning how to code. Treat a website as an investment – aside from time and cost savings, you’ll also benefit from increased brand recognition and awareness within your target market.

Use search engines as a directory

Remember white pages and yellow pages, where telephone numbers of households and businesses are listed? Search engines do the same thing, but the difference is in the details. Search engines like Google, Yahoo, Bing, and others let you register your business name and contact information (address, store hours, number, email address) so people can look for it online. They usually don’t charge any fees for listing your business, and once registered you’ll see a remarkable increase in sales and brand awareness.

Tap the power of email

With the right content and timing, email blasts and digital newsletters can help engage your target market and convert them into paying customers. There are many ways to gather email addresses, including surveys and mailer subscriptions. Start organizing these email addresses, create compelling content, and blast your message away. There are tools online that help you do these tasks in a few clicks, so you can jumpstart your email marketing campaigns in no time.

Build your social media presence

Social media is a revolutionary way to connect, engage, and tap into your customers’ potential to be loyal to your business. Its power and reach makes it a solid tool for promoting products and services online.

The key to a successful social media campaign is compelling content. Make sure to push them regularly so your audience knows what you’re selling and why they should avail it.

Run contests or raffle promotions

People love joining contests or raffle promotions, which is why you should launch such campaigns to market your products better. Encourage people to join a giveaway on social media, where they can pick their own prize from your catalog.

When people like your promotions, they’ll share it to their friends and family. Word-of-mouth is enough to drive your brand awareness.

Host frequent events

Get involved with your community while getting creative with your promotion strategies. Hosting local community events lets you see your customers in person, which gives you more insights into their needs and wants. Events also open up many opportunities for your business, such as tie-ups and long-term brand partnerships.

The post How to Promote Your Product as a Small Business appeared first on Sprout.

source https://sprout.ph/blog/promote-product-small-business/

Sales Growth Strategies for Small Businesses

It may seem that an ounce of passion is enough to make your small business grow and succeed. But in reality, it takes more than that to thrive in the area of sales and marketing.

Many challenges hound business owners who are aiming for growth. The process of testing different marketing strategies is one of them. When you are competing against bigger, more established businesses with bigger marketing budgets, this could be a real deal-breaker.

As a small business owner, there’s no reason to be afraid of not making any sales. Here are some growth strategies to help you stay on top of your small enterprise.

Invest time and passion in your products

A quality product is the first element of marketing. Don’t attempt to launch a product or service that would disappoint people. Dedicate your time and effort in creating high-quality products that will keep your customers coming back.

Know your customers

Prioritize researching your target market to ensure that you can produce the right products or services. Pay attention to what your customers really need by identifying their problems and creating solutions.

Keep in mind that money alone cannot be an enough reason for your business to succeed. Bringing real solutions for them not only brings you greater profits, but also helps you gain a good reputation.

Set your prices right

Price is another crucial factor in marketing. Make sure that your prices agree with your target market’s level if you want to boost sales.

Always follow regulations on the pricing of commodities. This ensures that you are doing business lawfully.

Stimulate repeat sales tactics

While constantly generating and converting new customers should be a top priority, always think of strategies to keep existing customers. Business relationships founded on trust is easier to achieve with those who have already done business with you.

One way of gaining repeat business is by encouraging your customers to join your email list. This keeps them in the loop for updates on your products, encouraging them to do business with you again. You can also offer perks for your existing customers, such as offering freebies or discounts.

Take advantage of modern technology

The rapid development of tech innovations can be intimidating, but it really does make everything easier for your business. Try automating your internal processes such as payroll and admin tasks through smart software.

Perform a website audit

If you run an online business, ensure that it’s easy for customers to buy your products. Do a quick audit of your online business by asking these questions.

• • Is my website designed to convert leads into paying customers?
  • Does my site indicate future sales performance?
  • Are my product descriptions accurate and updated?

These questions can help you build a strong online presence. Act on your customers’ perspective and walk through your website experience. Remember that you don’t need to have a fancy website. Make your site visually appealing and easy to use to drive action towards your sales goals.

Be a reliable industry pillar

Social media platforms can be a great way for you to make your industry expertise known. Use them to publish, share, and repost articles on topics related to your business. Consider sending out email newsletters with relevant business advice. Your audience will begin relying on you for your insight if you do these.

Improve your customer service

Apart from offering high-quality products or services, make great customer service a priority. Train your employees to greet and warmly welcome your customers to create a sense of customer appreciation. Simple practices like these significantly boosts your business and helps drive customer loyalty.

Be easily accessible offline

Successful marketing not only lives online but in a physical setting as well. A physical location, such as a store or office, helps you connect personally with people.

Make your business available offline by handing out business cards. People still appreciate giving out and getting physical business cards. Who knows, you could make connections this way that could open up doors to future opportunities.

Final thoughts

While there are various strategies that can help you increase your sales and attain significant business growth, keep in mind that generating profit heavily depends on different factors. Because there is no single way to create robust sales, you’ll have to find the right marketing mix that works best for your company.

Consider making smart investments in people, systems, and tools that can assist you with your business sales journey. Experiment constantly, review your insights, and listen to your customers.

The post Sales Growth Strategies for Small Businesses appeared first on Sprout.

source https://sprout.ph/blog/sales-growth-strategies-small-businesses/

Formulating a Business Plan: What Should I Do?

Are you starting up a small business? You’ll need a detailed business plan to help you set your goals. Having an effective business plan will also help you get everyone involved to be on the same page while you are working through the feasibility of your small business.

While there are no hard and fast rules to creating a small business plan, there are some essential steps to be taken. In forming your business plan, put your ideas on paper and follow these simple steps.

Write an executive summary

Before you go into the specific details for your business plan, write an executive summary where you will give a brief insight into your line of business, goals, and potential. In this section, explain what your company is, where it will be located, what you are going to sell and who you will sell it to. Also, identify your business structures, its owner, your past experiences, and the products or services you’re going to offer. Your market analysis and financial considerations should also be explained. This is the first part your audience will be exposed to, so make it engaging and interesting.

Create your company description

You need to write your company description. Take this chance to provide a summary of your mission statement, and business structure. The company description should provide more details about the business owner and the business location, your target marketplace, and the advantages of your products or services. You’ll also need to describe your main customers and how you plan to succeed as a startup.

Study market conditions

One of the questions you need to answer is whether your business has a place in the market. Your target market will definitely dictate if your business is going to be successful or not. Be specific about your target market and identify their details such as age, location, needs, and preferences.

You will also need to add a competitive analysis that provides information on your immediate competitors. This will give you a hint on how your business can gain market share by taking advantage of your competitor’s weaknesses.

Describe your product or service

This is where you can share the details about your products or services and how they can benefit your customers. If you are not able to articulate how your business can help your customers, your business idea may not be a great one.

In this section, describe the problem you are trying to solve and how you plan to solve it using your product or service. Next, describe the competitive landscape and identify the companies that provide the same solution in your area of business. Express for your target audience what sets your business apart from your competitors.

Outline your business structure

This section focuses on your business’s distinctive organization and management structures. Talk about who handles a specific task and how the responsibilities will be assigned to each team or each person. Highlight your relevant experiences in the industry as well as your team members’. If you have a track record of small business success, then you should give emphasis to that. You may also include an organization chart or a short bio of each team member.

Design a marketing strategy

Plan a comprehensive marketing and sales strategy that you are going to use to sell your products and services. You can achieve this by asking yourself these questions:

• • How do you intend to penetrate the market?
  • What’s your master plan in growing your business?
  • How are you going to distribute your products?
  • What’s your main communication platform between you and your customers?

Be clear about your marketing and sales strategies and provide specific options.

Create a financial plan

Of course, you’ll need a financial plan so you can manage your finances well. Outline your financial model, including your start-up costs and financial profit projections. List all the resources you need and how much they will cost, such as office space, computers, and phones. Be honest about your estimates so you will know your exact start-up cost.

If you want to convince investors, you have to make sure your financial model is clear, accurate and feasible. 

Make a funding request

In order to secure funding, you need to make a funding request. State how much money you need to start your small business and maintain its initial operations. Provide a summary of how you plan to use your start-up capital. Also, give a timeline or a deadline for your funding request.

To support your funding request, provide financial statements and projected cash flows for the next 5 to 6 years or until your small business becomes stable.

Include an appendix for more information

Close out your business plan with an appendix where you can provide additional information about your business, such as financial statements, permits and licenses, and other legal documents. You should also elaborate risk factors clearly and indicate that you are well-prepared for these risks. That extra bit of information helps reassure potential clients and investors of the profitability of your company.

Why should you make your own business plan

Every business starts with a plan and if you follow it throughout your venture, you will have a clearer direction for your business and eventually achieve the intended success.  Now, if you have small business ideas in mind, then get your pen and paper ready to form a business plan and start putting your thoughts into reality.

The post Formulating a Business Plan: What Should I Do? appeared first on Sprout.

source https://sprout.ph/blog/formulate-small-business-plan/

Why Branding Is Important to Your Business Growth

Your business needs to have its own identity – something that your target customers will easily identify as a brand. When done right, branding can propel your business to greater heights of success. Even small businesses can benefit from branding, yielding a similar benefit often seen in bigger businesses.

But how can good branding help you achieve your business goals? Aside from setting goals for your small business, you should also pay attention to branding so that your business can enjoy these benefits.

Competitive advantage

Successful branding will help your business become more recognizable. The more familiar the people are with your brand, the more they will trust you and choose you over the competition. You and your competitors may be selling the same products, but your established brand would stand out more. Turn your name into something familiar and trustworthy, since people tend to remember brands they are assured with. This will keep them coming back for your product or service.

Your brand’s reputation will be viewed as the same for your entire business. Think of your favorite restaurant: you’d recall it by its name, its signature dishes, and the level of service it’s known for.

Your visibility as a leading brand will also ensure that potential customers will know what your actual goals are. Once they see that you have similar goals, it would not be hard to convince them to go onboard with you and become one of your loyal patrons.

More referrals

Word-of-mouth can become one of your most effective tools in promoting your products. It’s an effective brand strategy as people who have come to love and trust you becomes your brand ambassadors.

Even if you’re a small business, you can make it easier for your customers to refer your brand once you have a detailed identity. Make sure to focus on one thing you do best and put it at the core of your brand campaign.

More specific target customers

Through branding, you can be more specific about your brand name, colors and the font used in your logo. But its work does not stop there. You can also use that brand to determine who your target clients should be and avoid wasting resources on promotions with a broad scope and an unclear target audience. With a specific niche in mind, you’d know that your business can provide for your target customers’ needs, reduce the risk of getting uninterested customers, and increase chances of getting repeat work and referrals.

Clearer market positioning

With good branding comes accurate market positioning against the most common competitors in your line of business. Branding helps you zero in on the right target market since you already know exactly what you can offer and who needs that offer. This also means that you can specifically identify who your real competitors are. This will help inform you on how to change your promotional tactics and position yourself better against your true competition.

Better marketing

Armed with the confidence of knowing your brand as a business, your employees can use that improved understanding of your identity to find the right potential projects or clients. They will know how to talk about your business to people in person, online, or over the phone. This also means that all efforts to promote your small enterprise will be more consistent, thanks to clearer brand identity.

If this continues, the overall employee performance will improve, which also means a better bottom line for your business. This will help you, and all of your employees, prepare for the growth of your small business.

Increased visibility

Branding helps your business to become more visible both offline and online. Coupled with a strategic approach to your usual marketing tactics, it would be easier to engage your potential customers, earn their trust and loyalty, and improve your relationship with them, cultivating it in the years to come. Take advantage of social media to promote your brand.

Does my small business need branding?

Definitely! Branding isn’t exclusive to big enterprises. Your small business needs its own branding because it shapes the impression that people have about your products or services. That impression should tell customers what makes your business different from the competition and build you up in a positive light.

What makes up your brand is your business name, the feedback from your customers, and your relationship with your suppliers. Branding can help reach your business goals by shaping the impression and reputation that the people have of you as a small business.

The post Why Branding Is Important to Your Business Growth appeared first on Sprout.

source https://sprout.ph/blog/branding-business-growth/

Best Apps for Internal Business Communications

Proper and reliable communication is the grease that keeps the wheels of a business going. Without it, the collaboration that enables the smooth working of a business will not be possible. If you want to achieve your goals as an organization, you need to use the right communication tools. That is something that the Internet-driven world has plenty to offer. With the influx of applications for computers, smartphones, and other mobile devices available in the market, you can choose the best communication platform that suits the level of productivity, efficiency, and results that you are looking for.

You do not need to rely solely on your intranet system to facilitate internal communication in the hopes of fueling your business’ growth. The good news is that you do not have to invest in extremely expensive systems, especially if you are a startup business or a small organization trying to find your footing in your chosen industry. There are apps that work best for organizations that prefer more emails, while others work better for those that respond more comfortably to instant messaging, and there are apps for those that like discussing things over phone calls. You can even use a combination of the following apps to ensure better productivity and improved collaboration.

Slack

What started out as a communication tool used within a small game development company, Slack has grown into an internal communication superstar of its own over the year from its launch in 2013. It has proven itself to be a great tool for collaboration and project management as it allows users to create different chat rooms for different projects, topics, or teams, without forgetting the beauty of the privacy provided by direct messaging. It also enables users to upload, send, and download a wide range of files, as well as making it easy to search for those files and snippets of your conversations. Slack can be used on devices operating on iOS, Window, or Android. It can also be accessed through the web.

Basecamp

Small organizations aiming for growth with improved communication from within can definitely make the most out of Basecamp. It allows file sharing even from the members of different teams or departments within the organization. It also makes project management easier for the team leaders, not to mention ensure the happiness rating of your client. Basecamp effectively does away with the hassle of checking through a mountain of emails and email chains with the help of its discussion boards that can be focused on a single subject. For better monitoring of to-do and accomplished tasks, the app also boasts of a to-do list and task management feature.

Campfire

For business communications that need an extra layer of protection aside from the passwords used in the computers and mobile devices involved, Campfire offers exactly that through password-protected group chats. The paid versions even come with an SSL security, the same level of security used by online banks.

It even works on any chat network. Even if you are running a small business without an IT department of your own, you can still manage Campfire because it is easy to use and works on the web, eliminating any need to download, install, or configure any of its features.

Wrike

If you want to be able to monitor your ongoing projects and make sure that you are not behind your business goals while also connecting better with your employees, Wrike is the way to go. This platform makes it easy by using a simple interface and process. For instance, “@-message” will do on any of the task pages or activity streams involved.

Redbooth

This is another task management tool like Wrike, with its own built-in software for exchanging messages. While you are distributing tasks to your team members, you can also reach out to them using the same Redbooth window to discuss more about those tasks. It allows HD video calls and the sharing of files, text documents, reports, and charts. This is better than having to move to another communication tool separate from your project management tool.

Skype Business

Beyond the personal contacts that you have on Skype, you can also use it for business communications. It features instant messaging for individual users to connect with each other and allowing them to get almost instant responses to their questions and need for clarification as well. It also works for conferences during important meetings as well as file sharing. Since it is a pretty popular app, there is almost no need to wait for employees to be familiar with how it works. Skype Business is integrated with Microsoft Office apps, scheduling in Outlook, posting online meetings, and a few other features.

Bitrix24

If your team loves video chats and group chats, Bitrix24 would be a good fit for your internal team communication needs. It also operates its own cloud, allows document management, has a CRM system, and even helps users create plans. It features a calendar, human resource bits, email, and more. What’s more, is that you can pick which specific features you want in your communication tool that will prove useful in your pursuit of growth for your small business.

Fuze

For clearer video conferencing, Fuze offers HD video calls. It is a great choice as reliable internal communication tool because it can integrate with Google Calendar, Microsoft Outlook, Box, and other apps that make project monitoring and connecting with the clients and team members very easy.

These are only a few of the best apps that you can make full use of if you want to maintain good internal communication and reap its benefits, such as keeping everyone in the business well-informed, developing your organization’s culture, engaging your employees, and keeping people calm during a crisis, while also providing everyone with an outlet for discussion and feedback. Make the most out of these apps and use them to fuel every step you take towards the growth of your small organization.

The post Best Apps for Internal Business Communications appeared first on Sprout.

source https://sprout.ph/blog/best-apps-internal-business-communications/