Reader Mail #10: Investing, Accounting, Inventions and More

Posted by Fitz Villafuerte under Reader Mail on September 23, 2009

Hello everyone, it’s been more than a week since last I’ve posted here.

I’ve been really busy with offline ventures lately, specially with planning my stall in upcoming Christmas bazaars.

However, since most of the things I needed to do are almost complete, expect my writing to go back to its normal pace soon.

Moreover, I hope the past few days has encouraged you to browse through my archives. I’ve written almost 300 posts already and I’m sure you’d find some of my older articles informative and helpful as well.

In any case, let me give you today the tenth edition of Reader Mail, I’ve handpicked a few inquiries I’ve received in my mailbox and would like to share to you part of the advise I gave.

Again, please remember that I am not a certified financial adviser nor a trained business consultant, my answers are purely based on my own beliefs and experiences as an entrepreneur. Thanks.

I need your advice regarding mutual funds and the stock market. I’m planning to invest an initial amount of 100k (50k for mutual funds & 50k for Philippine stocks). Is this okay? I’ll let it stay for 2 to 5 years.

You need to have an objective for your investment. What are you planning to do with the money afterwards? This is important because it will guide you in choosing the right type of investment.

So assuming that after 5 years, your 100k becomes 300k (this is just an optimistic assumption). Ask yourself, what would you do with that amount of money? Start a business? Buy a house? Buy a car?

Do you think that 300k will be enough to finance that goal? If so, then your plan is good. If not, then maybe you should consider investing in something else.

Related: Investing In Mutual Funds

I am starting a new personal project and I am lost to where to ask for more information about tax and accounting. I don’t know anything about accounting and taxes but I want to learn and understand. Can you suggest where I could start looking for information and help?

If you have a friend who works as an accountant, then you could probably ask him or her. But personally, I’ve always relied on DTI and BIR about these subjects.

I believe that in all BIR branch offices, there is an “officer of the day” assigned to specifically help such inquiries, maybe you could visit any branch near you and try there first.

Related: Basic Accounting Terms and Concepts For Small Businesses


I got to your site because I was looking for a method to do my own commercial feasibility of my invention. I was going to go further with the prototype of the invention but it’s very expensive. So I really want to study my invention’s saleability. Do you have any idea how to go about doing this?

Do market research. Check for similar products in the market and see how they are performing – if there’s nothing similar to the Philippines, maybe check in other countries.

Second, do a demographic survey of potential users – which means you need to define your target market, then list down the benefits of your invention / product to them. After that, do a survey and ask your consumers if they find your product useful, if they are willing to buy it and at what price.

Third, if you have enough budget, you can also consider hiring a market research firm to produce a comprehensive report on the selling feasibility of your invention.

Related: How To Do Your Own Market Research For Your Business

Could you share me your secrets on how to attain financial freedom? Right now, I’m working full time 8-5, have a small time lending business, have a tricycle which has daily boundary, and planning to venture into franchising ZAGU – would that be profitable nowadays?

Financial freedom is something you achieve slowly but surely. There’s no easy way to do it but to take baby steps. And from what I’ve read, you are really on your way to getting there.

Serial entrepreneurship (starting several small-scale businesses) is a good way to go and in my observation, much easier to do than making one big successful company – the profits may be small, but they do eventually sum up to a large amount in the long run.

And as for the Zagu franchise, I can’t really say if it’s still profitable. Many pearl shakes businesses have already closed down but I do see a few still getting long lines in malls.

I guess the key is location. If you already have a place in mind, try to investigate if a pearl shake / fruit shake business used to exist in the area. If there was and it closed down, then maybe you should consider another location.

Related: 8 Tips To Finding The Right Location For Your Business

That’s it for now. Thank you everyone for sending these emails. Please don’t forget to subscribe to Ready To Be Rich so you’ll be updated if a new article is posted here. Cheers!

Image credit: bug_girl_mi



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