Business Ideas for the Philippines

[Matt]

Hi Everyone! I hope you all are doing fine.

I have been reading this forum since, oh let's see, I believe 1998.

Please excuse me for not being a regular contributor to this forum.

I'm just wondering what kind of business ideas and how much US dollars would be needed to start a business of some sort in the Philippines
for an American citizen married to a Filipina.

I would like to ask about non-retiree opportunities.

I've read of some guys starting beach resorts (Ron Perry's Farmtours
Virgin Beach Resort comes to mind), and karoke bars and what not.

Please forgive me if I've missed something in the archive. Also, the search function is not working at this time of my post.

Thank you all and have a great day!

[Matt]

... in response to Business Ideas for the Philippines, posted by Matt on Aug 11, 2003

n/t

[Jeff S]

... in response to Business Ideas for the Philippines, posted by Matt on Aug 11, 2003

An MOB agency - or a foreign employment agency. As I understand it, the PI's biggest exports are workers and wives.

Yes, I know a traditional agency is illegal - but how about in partnership with a US based company who posts the ads? With worldwide servers, paypal accounts, snail mail forwarders, ATM cards working worldwide, etc. who knows where an operation is based. Or maybe a publication listing Foreign men interested in marrying Filipinas?

[Carr]

... in response to Business Ideas for the Philippines, posted by Matt on Aug 11, 2003

This is a good read.  An expat's experience about life and business in the PI:

http://www.apmforum.com/columns/orientseas.htm

[HaroldC]

... in response to Business in the Philippines, posted by Carr on Aug 14, 2003

I've been reading for hours.
Hired Hunter Thompson's lawyer! LOL

[don2222]

... in response to Business in the Philippines, posted by Carr on Aug 14, 2003

dg

[Ray]

... in response to Business Ideas for the Philippines, posted by Matt on Aug 11, 2003

How much do you have to invest Matt? Have you considered a franchise? A Jollibee franchise might cost you up to P25,000,000 but you could get a Mister Donut for maybe P300,000.

I thought of a floating Jollibee where I would put the whole store on a barge and tow it around the islands. Just pull into a different coastal town or barangay every other day or so and that way many more Filipinos would have the opportunity to clog their arteries with junk food without making a long trip to the nearest major city. If business was really bad, you could always tow it over to Hong Kong and set up shop there. Then I thought of what would happen when the first typhoon blew through so I gave up the idea. If you think you can make it work, I’ll take 10% of the profits for the initial idea :-)

Seriously, you better do some real major homework before you do to much planning. Foreign ownership of a business can be severely restricted and may require millions of dollars in paid-up investment from the start. Read up on Philippine foreign investment laws and the Foreign Investment Negative List. You can’t own property and practically speaking, a business would probably have to be in your Filipina wife’s name so if you ever piss her off, you could kiss it goodbye :-)

Ray

[HaroldC]

... in response to Floating Jollibee, posted by Ray on Aug 14, 2003

I vaguely recall an intriguing post from you long ago about this- sounded as if you KNEW 'kiss it goodbye' was pretty common. Please elaborate.

I think OutWest touched on the key- base the enterprise on foreign customers that the locals could not access without you. And avoid physical plant/inventory that can be coveted.

Business is cutthroat everywhere. Contracts and non-competes are junk if you don't have the juice to back them up. Payola is simpler. (Which is why the RP has learned to keep the foreign devils out- they just bribe their way into raping the place.)

On the other hand, a good businessman can make money anywhere. If you are not a good business man- and few have that fire in the belly- the learning curve is steep and expensive. And if you are relying on it to survive, you are pathetically vulnerable.

There are two basic strategies: copycat and boldly-go-where-no-man-has-gone-before. THERE IS NO FORMULA.

That's what I think.

[Ray]

... in response to I was hoping you'd bring that up ..., posted by HaroldC on Aug 14, 2003

Some good advice there Harold.

On the "kiss it goodbye" comment. I knew some retired military guys who owned businesses in the Philippines; bars, restaurants, beach resort, etc. They all had to register the business in their Filipina wife's name because of business laws regarding foreign nationals in effect at the time.

I knew one guy who lost it all because his wife caught him screwing around on her. She simply sold the business and left for the province. There wasn't anything that he could do because she had the law on her side.

That's a big risk that all of those guys had to take, on top of the usual obstacles to starting and running a successful business. But I guess it's a lot better than getting "Bobbitized"... :-)

Ray

[outwest77]

... in response to Floating Jollibee, posted by Ray on Aug 14, 2003

[This message has been edited by outwest77]

That is the main reason, that the phils is poor, that and corruption, the foreign investment capital steers clear of those kooky laws,

[Nathan]

... in response to Business Ideas for the Philippines, posted by Matt on Aug 11, 2003

    I would be pretty careful doing any business there- if you are the foreigner, YOU are the target, believe me. Internet cafes are a dog eat dog business in RP and not very many make money- I know several owners in Mindanao who can attest to that. Businesses in many catagories operate there on profit margins that would not be considered a living by western standards. Remember, the entire Philippine economy for  80 million people is about the size of the economy of the state of Washington. Go slow, I know of many more stories of regret in this regard than stories of success (do know of a few successes too) I suppose if you could opperate a business managing money stolen by government official there, you could make a killing. Remember, in the Philippines, when it comes to
money or power, corruption is king at every level of society.
It can be a good place to live or retire( I likely will move back there and retire) but otherwise be careful!!!!!!!!!!!

My $.02 worth...

Nathan

[SteveG]

... in response to Re: Business Ideas for the Philippines, posted by Nathan on Aug 13, 2003

Nathan,
 Everytime somebody starts daydreaming of starting a business in the Philippines and making all that "easy money", I have to wonder to myself just how is it possible to make money doing business with people who have no money to spend?  If half the people in the Philippines gave you all the money they have, you still wouldn't have much.   I just can't see running the considerable risk of losing everything you have saved all your life trying to start a business over there.  

 If you want to move there and retire, that's each individual's business....but even that doesn't look very attractive to me once you think about it.   Being far far richer than everybody around you can put you at too much risk for me to feel very secure.   I think it's better just to take long visits.

         SteveG

[Nathan]

... in response to Re: Re: Business Ideas for the Philippin..., posted by SteveG on Aug 14, 2003


   I agree, a poor economy run by morons is not a very bright prospect for a business. I spent enough time living there that I can see it is possible to retire there if you go about it right...keep a low profile and enjoy simple things.
On the bright side, a lot of the everyday activities and small businesses you deal with are actually quite delightful. Then again, if you have to go to a government office, that is another story. For some, a visit is about all they can take.

[don2222]

... in response to Re: Re: Re: Business Ideas for the Phili..., posted by Nathan on Aug 14, 2003

"a poor economy run by morons "  that is too funny !!
Yes,  i have met many foreigners here that try to have a business, and most of them are living on their savings.
A filipino can run a business, and live on the $5 a day profit, but us spoiled Americans cannot live that cheaply.
The internet cafe business is too saturated, competition has driven the price down to about 40 cents an hour, and I do not see a way to make a profit off that with all the overhead. Even with 20 customers, you are only taking in $8 an hour BEFORE expenses.  Many times I go to the internet cafe, stay 15 minutes, and pay 10 cents for the service.
I have not met any foreigners here that are earning enough to live on, they can have a business for fun, that keeps them busy, but rarely a profit they can live on.
Also, the filipinos will often try to stick it to the foreigners as often as they can, charging up to 100 times the price filipinos pay for the same government fees and services.  Of course the money lines their own pockets. There are many stories in the paper here of Filipino cops getting busted for soliciting money from businesses, there is no telling how much money they are trying to harass the foreign business owners into giving them.  I have been to the homes of several police officers and government workers, and their homes are much nicer than many homes in America. How is it possible for a cop here to have an $80,000 house  Or a govenment paper pusher to have a 100,000 house, two new cars, and 5 helpers ??

Anyway, I like it here, but I don't think I can earn a living here.

Don

[Jeff S]

... in response to that is too funny !!, posted by don2222 on Aug 14, 2003

.. lives in Thailand. He's a merchant seaman and works from 60-90 days at a time, just long enough to buy himself another 6 months in Thailand. Then back he goes, til he runs out of money.

- Jeff