MONEY wouldn’t guarantee good fortune –but it can get anybody there if he or she knows how.

In last week’s column, we presented the insights of Ruperto P. Alonzo of the Institute of Small-Scale Industries (ISSI) and Asian Institute of Management (AIM) Professor Rafael Azanza. Both gave their thoughts on what somebody like boxer Manny Pacquiao can do with as much as P50 million in his or her purse.

Though not all overseas Filipino workers (OFWs) can clutch that amount in one day, many definitely aspire to make their money’s worth, whether it is P5,000 or P500,000. Alonzo and Azanza offer good advice.

These pieces of advice come at a time of an expected increased expenditure in the Philippines.

During the April to June months, spending goes to graduation, tourism, travel, fiestas, and payment of tuition and school materials. These are the months that show spikes in OFW remittances.

Investments, meanwhile, are activities mostly experienced in Philippine economy in the first quarter when the markets try to unload inventories and catch up with the closing of their fiscal years. Micro-, small, and medium enterprises (MSMEs), on the other hand, are established at any time but construction activities peak during the summer months.
Alonzo said one of the safer investment projects people with money can go into would be franchising.

“Franchising is considered to be the business ‘with the least fears and tears,’ as it allows fledgling entrepreneurs to access a minimum-risk but already highly successful business on tried and tested grounds,” Alonzo added advising that “before making a decision to take a franchise, [it] would do well to get in touch with existing franchisees to check on the level of support and evaluate terms and conditions.”

A good source of ideas would be groups like the Association of Filipino Franchisers Inc., whose website www.filipinofranchisers.com contains tips and an overview of franchising. However, the minimum requirement for such venture begins at P150,000; something most OFWs take years to save.

Like Mel Nuqui of nongovernment group Development Action Women Network (DAWN) told me last week, she hasn’t heard of an overseas performing artist (OPA) able to raise P2 million from a six-month work in Japan.

“While a contract would say an OPA receives US$2,000 a month,” the DAWN executive director said, “most of the women would get only $400 to $500. That’s only P165,000 in six months.”

At P55 to a US$, this would mean an OPA has to work on 15 six-months contracts –approximately 90 months or seven years– before raising the P2.5-million requirement in one franchising scheme.

OFWs like Aquino, however, could raise that amount in 3-years time: he has just finished paying for a house and lot that cost that much.

Fast buck
Those who would want a business that generates cash fast, Azanza suggests a restaurant or a grocery.

“It would make sense to split investments,” Alonzo said. “A part should go to safer, but lower-yielding investments like stock or just buying real estate to be sold later when selling prices go up. The other should be in higher-risk but also higher-return investments like sea food processing, agriculture, or a franchise store.”

“He must be aware, though, that opportunities that yield high returns are also high-risk,” Alonzo reminds investors going into such ventures.

Alonzo added that another “fairly safe” venture is investments in agriculture where an entrepreneur “can acquire agricultural land, if he has not done so yet, and develop it into an orchard of high-value crops like pomelo, Guimaras mango and durian for the local and export markets.”

Alzono suggests consulting farming practitioners and consultants like Zac Sarian of Bulletin Today, Tony Rola of AANI Foundation, and Bernie Dizon of the Parks and Wild Life Office.
Nonetheless, Azanza advises that people with money like Manny should hire a financial adviser “before you lose all your money”.

“You do not expect a financial adviser to be a good boxer [like Manny], do you? So do not expect yourself to be good at finance –it's NOT your field,” Azanza added. “You can learn it, but it will take years.”

At the very least, he said it will prevent you from making really bad mistakes, like investing in Pyramid schemes and scams.

That is what most OFWs try to avoid, as Aquino told me. So, I hope this piece could have added to more information that OFWs like him could stop shadow boxing with their gloved- money and try to earn P50 million like Pacquiao in the ropes of business.