Experts to the rescue! Here are the answers to the queries and conundrums you posted on Entrepreneur Philippines’ Facebook page.
Johmar Llonor: How do I fight inflation?
Ardy Roberto: The current inflation rate—or the rate at which the general prices of goods and services rise over a period of time—is 4 to 5 percent. At this level, you need to put your money to work in investments that will give you returns higher than 5 percent.
That puts time deposits and bank instruments out of the picture; the interest rates on these bank products are way down these days. So, you need to look at investing in the stock market (the average return on investment in so-called blue chips, or companies with a reputation for operating profitably regardless of the state of the economy, is 10 percent) and mutual funds (choose equity or balanced funds for good returns). You can also ask your banker about the latest corporate bonds, which usually pay more than government-issued bonds.
For instance, when PLDT was raising funds to buy the majority stake in then rival telco Digitel, it offered 10-year corporate bonds at 8-percent interest, with quarterly payouts. Sweet.
Of course, one of the best investments that you could make is in a business!
Ardy Roberto is the CEO of Salt & Light Ventures Inc. and the author of Ang Pera Na Hindi Bitin.
BJ Publico: Can I pay my staff below the minimum wage and provide incentives instead? Also, what is the best way to source staff, especially for a start-up business that’s capable of hiring only two employees?
Jay Bernardo: Paying your staff below the suggested minimum wage is not advisable, as the law requires a minimum wage for employees. Some business owners do not pay minimum wages at the start, but they must eventually do so. If not, their very own employees may file complaints against them at the Department of Labor and Employment.