A common theme in the Philippines and topic of discussion you will hear is around money. This is not surprising, as a fast growing developing country, prices are going up and salaries do not always keep up with rising costs. Furthermore, personal income tax brackets have not changed since 1987. Imagine the uproar you would have in Australia if that was the case. The “bracket creep” would make your head explode. The top tax bracket in Australia in 1987 was $35,000, where every dollar above that would be taxed at 57%. Can you imagine if the current minimum wage in Australia put you in the top tax bracket? Of course it is not yet that bad in the Philippines (due to an extremely low minimum wage), but 29 consecutive years of bracket creep do add up, and make Filipinos subject to one of the highest personal income tax rates in Asia. This is especially true if they are above entry level roles or have several years of experience, such as the high value talent we focus on hiring. In the Philippines, someone earning about $1000/month will lose a third of their salary to tax.
Small businesses are the backbone of any economy, and as such, efforts should be made to help them become strong so they can flourish. Here are some tips on how small businesses can strengthen themselves despite their often limited budgets and resources.
Among the basic requirements for a small business is a solid business plan. This plan contains the company’s immediate or short-term goals, as well as the long-term objectives. It should also include the milestones that need to be met as a means to gauge and measure progress, as well as the all-important revenue projections.
What do the stories of successful small business owners have in common? They are all unique to the circumstances of the businesses or the business owners themselves. This gives truth to the opinion that traditional business advice isn’t always best served to small business owners. The road to success that small businesses take is not the same as the path taken by bigger businesses like large corporations. Given this, small business owners are better off considering their own circumstances and analyzing their chances at success within the context of their own experience and environment.
We know it’s not right to objectify people or focus on their looks or physical build, but Jayne’s 23-inch waistline is the envy of many women in Flat Planet. More on this later, but for now let’s focus on Jayne’s work as an order entry administrator for one of Flat Planet’s Australian company-clients.
According to Jayne, her work is non-stressful, but it requires alertness and vigilance. “What I do is simple enough – I check and record for my client’s next deliveries and make sure that all the bills are paid in full and there are no balances before invoices released,” she explained. “I double-check everything before I forward my work to the next process in the company’s accounts system. I like the rhythm of it. We underwent training for this so working the system is now second-nature to me.”
There have been many reports and studies about the feasibility and effectiveness of virtual teams when they’re managed well. Small businesses, in particular, greatly benefit from outsourcing/offshoring some of their work processes: the cost effectiveness of outsourcing goes without saying. For their part, many highly-skilled professionals enjoy working remotely because they have the freedom of working in their own homes or desired locations (if they’re freelance); or they get to experience working with companies overseas and learn how to further sharpen their skills (when they work in in-house, virtual talent companies like Flat Planet).
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Have you thought about hiring someone to keep your website up-to-date? What about your blog? These tasks can be accomplished by a highly qualified virtual employee working in a remote office in the Philippines at Flat Planet. Read more