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/

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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/