Ten Business Ideas I'm Thinking of Trying
A while ago, I responded to an inquiry on Bob’s Snowbird posting, where I mentioned that my travel schedule is starting to get very tiring. Quite frankly, I want to settle down a bit more. My response got me thinking about the term “Snowbird” and retirement. Ugh! Bob’s picture of the two old goats sitting there looked like one of those funeral home ads or adult diaper ads. Not for me!
Additionally, there are quite a number of inquiries about earning a living in the Philippines that are posted in the forum, so I thought about writing about some business ideas that I believe could generate a decent income. First off, I would highly recommend everyone read Bob’s book, “49 Ways to Make a Living in the Philippines”, as a first step, before jumping in with anything. This list isn’t intended to detract in any way from his book, but rather, it is a list of things that Rebecca and I have discussed to fund our retirement someday. I’m not the type of person who can sit still. Retirement for me will involve work. Otherwise, I’ll go stir crazy. That being said, I truly believe that if you want to make money in the Philippines, you have to do it yourself.
A brief note about what doesn’t work. Nearly every expat I’ve met has family that have approached them about starting Sari Sari, Jeepney, Taxi, or Tricy businesses. These almost never work over the long term, and usually fail in the short term. There are many reasons, but, particularly in the provinces, you will find great difficulty in running such enterprises as a true business. I suggest you avoid even thinking about getting involved.
We’ve already started the fish pond business, and I’ve put some money into it, but that business is for Becky’s family… I’m thinking of businesses for Rebecca and myself alone. Something completely separate. I still have a couple of years to put these plans into play. I’m tied to my current job and far too busy right now to get too involved. This is for the future. So, here’s my list.
Agricultural
I’ve thought about what is produced in the Philippines, and agricultural goods are a top product… Indeed, some of the finest fruits and vegetables in the world are produced here. Therefore, low-level food manufacturing has some potential. I am thinking with an eye towards quality.
- Bottled Holy Water: The thought was to make a deal with the Church and produce a product, Spirit Water: Good for the body and soul!” Nice bottle, with a different holy card tied to each bottle around the neck, so that customers could collect them all (Print 250 different ones up). I made the proposition to Father Carlos (50/50 split), but he had reservations since it comes too close to selling indulgences. That being said, there is a monastery in the States doing something similar, so perhaps it is feasible elsewhere in the country.
- Flavored Lambanog: There are a couple small brands already out there, but why not use lambanog as a base for other drinks? Using tropical fruits and herbs, becoming totally a native product. See if aging the product in oak changes its’ character (or Bamboo barrels). Sell in the resorts and tourist areas.
- Flavored beer: Mango beer. Pineapple beer. Similar to the Lambic made in Belgium (From Cherries, Peaches, and Raspberries there). I’m going to buy a brewing kit and give it a try. If palatable, it could just work. Great label: Topless girl holding two strategically placed mangoes, pineapples, rambutans, etc., depending on the flavor. Different label girl each month.
- Philippine “Origin” Chocolates: Quality stuff for export. Use local fruits and local cacao. Premium price.
- Mozzarella di Buffala: Carabao milk is virtually identical to the buffalo milk in Italy. My only reservation is if there are enough local buyers in Manila, given the short shelf life and difficulty keeping refrigerated. Perhaps aging the cheese or smoking it into a Filipino Provolone?
- “Japanese Quality” dried fish: The last few trips to Japan, I brought back dried fish for Becky and her family. They absolutely LOVED them! Same species as is found here. This is purely a quality and packaging issue. Each fish is inspected and the packages are cryovac sealed, ensuring freshness. There are also many different flavors available (Teriyaki, Chili, Sesame, etc.). I believe that a significant market segment is in Manila that will pay the premium price for quality. These can also be exported.
- Premium Ice Cream: There’s a few premium chains, but I’m thinking at the very local level. Tropical flavors that are unique to the Philippines (Durian, Mangosteen, etc.). We could even try it with Carabao milk (They did it with camel milk in the Middle East!).
Enough about food. Now, to building.
- A dormitory for college students. We were thinking in Tuguegarao, near the nursing school. Most of the students come in each week and go home on weekends. 50 bed spaces, one daily meal included with all you can eat rice, no more than 150 pesos per night. We know someone doing this now. Security guards, so parents know the kids are safe. Sex segregated. Shop with school supplies and snacks in the lobby. Big screen TV in the common area with free DVD movie every night. We break even on the rent and make the profit from the store and concessions.
Online possibility
- Business facilitation service. An online consulting “matchmaking”, helping companies to begin operations in the country. From arranging paperwork to getting staff. Online recruiting for workers. Staff attorneys, personnel officers, and marketing and PR managers.
Finally, general manufacturing.
- Wire and Nail manufacturing: Most nails and barbed wire are imported from China. In the provinces, there are often shortages of these items. Once we purchase the equipment (relatively expensive, but it can be bought used abroad), we should be able to manufacture locally at a competitive price.
Anyway, the above is my list. You will note that I focus on manufacturing, rather than online. Bob covers online in far greater detail in his book. Which of the above happen remains to be seen, but the point of this article is mainly that there are business opportunities in the Philippines if you only take the time to look beyond the Sari Sari store setup. This country is very rich in natural and human resources. It is up to you to take advantage of these things. Most of the ideas I listed require some capital to start, but not enormous amounts of money. I’ve got a couple of more years in my present job before I put any of these ideas into action (Hey! I still have to finance the fish ponds and earn a living now!), but I feel it is prudent to look as far ahead as possible.
Hi John
Actually, I have a jeepney which is making money. I know the returns are small, but it is making money. Moreover, it is giving another family (jeepney driver) income which they would otherwise not have.
I agree you will never become rich being a jeepney owner, but it does pay for most simple daily needs. however, very inportant to get a good route!!. Added benifit, if you go on holiday to Philippines, you have your own transportation
In Bacolod, you can rent sugar cane field for 3 or 5 years, or buy if owner agrees. By making good deals, you should get most of the investment back by first harvest.
I have been told that pig farming usually brings in good profit if you can find the right area.
I will be interested to hear your views on the above.
Hello John,
Your absolutely right about ways of creating income there in Philippines, we that want to, just have to find that “niche” that needs filling in. I know there are plenty of opportunities there for us all, but for me, will just have to wait to get there to look for such opportunities.
Also, and not sure I can explain this too well, but when searching for such ideas, is to not think like a westerner. We all know certain businesses will work just fine in USA or other western countries, BUT we need to find the thing that the filipino is going to want to spend there money on. I guess for now, I am only thinking locally, and not of exporting type of business.
I really like your idea of manufacturing items for use in the Philippines, like the barbed wire and nails, and possibly other hardware items. But like you said, it would be expensive to get the initial equipment needed for production, good for someone that has a lot capital to get started with.
I like the chocolate idea too, another business I really know nothing about, although in the past I had a couple of businesses here in Florida there were customers of mine, that made the some of the best chocolates in the world and other candies, but in the past few years, I noticed they went out of business, because of the competition was too much, and these two companies had been around for 60 + years each, and shipped all over the world.
I am also interested to know about the service oriented businesses there, one thing I am experienced with is government sub-contracting, and curious about what services might be profitable. I realize they won’t be the big money numbers that are awarded here in the USA, but am still curious whether some services are contracted to private business owner, be it local or Philippine government agencies…this is just something I am curious about.
Great ideas John, and really can’t wait to see you get started on these ideas, so hurry up and retire..hehe..lol.
Take care now, and best wishes to the family,
Danny
….I’ve never seen a good mexican/spanish resturant in the RP, always struck me odd considering thier heritage.
Hi John – Good brainstorming. We’ve thought about putting up a dormitory or set of apartments near a college in Laoag. Also thought of product exchange – take rice, garlic or some other product from Ilocos to Baguio, sell the product and buy vegetables, fruits and other products, take them back to Ilocos and sell. Repeat as necessary.
Had also thought of being a rice merchant, bringing relatively inexpensive rice from Pangasinan to areas in Ilocos Norte that only have one crop (due to poor irrigation). That might not fly as the current upswing on enforcing “anti-hording” rules could get us caught up with legal contentions.
Then, my favorite: One has heard of a super user in the virtual world – why not be one in the real world. San Miguel Beer comes to mind!
Hi, John, Excellent ideas!! but not for me. My idea of retiring is just to relax and not worry if my business is going to survive or make profits. But as you said, you are the type that just can’t sit still during your golden years. I salute you! Speaking of the fish and prawn pond business, a distant relative invested in that venture ten years ago, while he still living here in the States. The business failed, because his manager was not trustworthy. In addition, there was a typhoon that devastated his fish and prawn ponds. This was in the Bicol Region. Lesson learn- if you can not manage your business personally, forget about investing, unless you have a manager that you can trust.
Hi John, I thought of starting a small eatery! Maybe wings, fries ,ect ,with all of the fixings! I don’t want to give up all of my dreams yet..My wife is from there, so we were just thinking about it..She knows some good places to start but, I wouild have to look at all the sites and throw a dart to see where first.I feel her family needs to have a place to call there own, to self help, not allways looking for a hand out.We are glad to help, but not everthing sould be given, but earned..J.C.
Hi john! Strong! Love those ideas. (Business plans were reeling off my head as I read. LOL) The flavored lambanog, I am surprised, still has not taken off. You are right there are already small players. Same also with the philippine chocolate. I know it’s basically present in every province, like i’m from pangasinan and tarlac we have cacao there. here in south cotabato, there’s the kablon brand and another davao brand, sikwate!.
Hi John. There is an old joke that never seems to stop circulating in my own business ( if you want to make a million dollars selling books, you should start with two million).
In my opinion one should go for something small and a business that has few competitors. You are on the ball with the nails but a little more investment in some good equipment and you would have a good tool company. Think value added. Commercial rents, and labor are extremely cheap in the Philippines.
Just a few thoughts. I always enjoy enjoy your posts.
Best
Joe
Hi John!
I have always teased Marie that I would start a Hooters knockoff. Can you imagine the cute little Filipina college girls chanting ” Welcome to Mangoes!” when a patron arrives? The reality is that Marie is not a jealous person so I would be a fool to ever choose an endeavor that would encite that emotion. While I think a casual sports bar like that would eventually be profitable I feel the initial investment would lead to many sleepless nights. You have hit on one of the investments that I feel would be profitable. Marie is invested in two technical schools and we have located a bank foreclosed property that is being used as a dormitory. According to the lot size versus the building size it seems there is room for expansion. Rather than run this ourselves we would delegate that to a brother and sister-in-law in exchange for the canteen rights. If I can see it doing more than break even after three to five years I will probably go for it. First we have to find out why it was not profitable enough to pay the bank note. I do find it amusing when some old kano thinks that he has superior intellect and ventures his capital into a business that the locals wouldn’t touch. The only profit that is realized is by the partners not investing their money. I am not tooting my horn but I run a successful business only because I found a niche and I don’t spend for anything that doesn’t equate to profit. My advice for what it is worth is…. ” If someone isn’t already doing it find out why.” The reasoning is that you can’t be arrogant and assume it is because there is a lack of capital. A lot of stupid old kanos are parted from their money thinking that they have something in mind that no one has thought of before. I still laugh when I remember Bob’s story about the man that was going to show Filipinos how to grow tomatoes. After that I told Marie that I was going to show Filipinos how to grow camote. I told her that I only saw the tastless white variety and would introduce the Puerto Rican type. If I was serious I would soon look like an idiot because I saw in one of Bob’s photo journals that type of camote in a vendors stall. I have heard comments from people with no business experience say that they were going to open karaoke bars, internet cafes, restaurants, etc. I think that these people don’t realize that the lower cost of living also means slimmer profit margins. I know a couple who just moved to the Philippines with 5K in savings and no Social Security income for three more years. The old kano plans to open a sari sari store. I hope he develops a taste for congee because that might be all he will be able to eat until his 800 a month SS check starts in three years. This man had several businesses here that were all dismal failures. The wife of this man is really nervous about the struggle that they will soon face. She had the only income while they were here so she is well aware of the business practices of her husband. My heart really goes out to her. I know that I sound very negative. I just think that people need to realize that business is not easy and most importantly that they are in a foriegn country. I have been asked by my brother-in-laws to move my present business to where we live. I asked them; why so you can watch me get murdered by my competitors? My business is usually owned by former government officials who still have connections. It is the same story here minus the bolos. My brothers agree that I am probably correct and should avoid stepping on the wrong toes. I hope I didn’t offend any well meaning entrepenuers. I was just hoping to get people to do their homework before jumping in with both feet. I always tell Marie that my fall back will be putting on some dark glasses and giving massages in the mall. hehe!
Hi John,
I agree w/ you on the dormitory for college or even high school students, if you find a location close to a university belt then i advise you to go for it and put some canteen or a shop for the students, education is very important in the phils, no matter how poor they are they see to it that they will able to send their children to school, it was a booming business in my province (Batangas City)since i live my life almost in the city so i know how the owner of this dormitory earned their income through this business, these students are from villages that quite far from the city proper so they look for a boarding house for their children to stay during the week and go back home during the weekend…..since students come and go, this kind of business is just fine and can give your family a long term income, that’s what i’m planning to do when i retire and finish all my financial obligatons or maybe just 3 units for rent since i don’ have much fund i think this will keep me survive for the rest of my life….
It would seem to me that business is conducted all over the world so there is absolutely no reason why someone could not open a business in the Philippines.
I know a few Irish guys in Subic who have started a wonderful business making expensive door knobs, ect(for export). and they are doing pretty good despite the housing slow down here in the US and of course in Europe.They set up the business three years ago.
I would imagine any small tooling company with the normal international certifications would be able to get as much work as they wanted within the Philippines.( particularly from pharma and aviation).
The notion of someone going to the Philippines or Russia or Nigeria or Germany or anywhere else,to set up a business with 5K is quite funny.
John if you do the dormitory look into putting in a copy machine. My wife had one as her sole source of income and it put her through college. She kept it in room on campus and she says she made good money. Ron
Hi John,
Your ideas for business in my opinion resonates well for local production and for local consumption. One thing that local economies needs are individual initiatives to make small scale capital equipment. Local human and natural resources are abundant, no doubt about it. Buying capital equipment from Germany or USA pays exceedingly high labor cost attached to these equipments at an exceedingly high proportion to the cost of material. Whether these capital equipment is manufactured in China or Germany or USA with Germany or US in control doesn’t lessen the production and distribution cost to these equipments.
For any production whether it be agriculture, food processes, or wire/nail manufacture requires capital equipment to produce them. The core to this capital equipment is a motor. Usually 1/2 horsepower motor is common for any small equipment to operate. A small ball grinder pulverizes iron ores and other metal ores into powder and a heating process separate iron to other metals. Once separated, you have iron or aluminum crucibles to work on for casting. Casting will produce crude but functional rotor, gears, stator, casing for motors, cutters and turners for nails and wires all in a backyard operation.
Considering that there are abundant surplus of throw-away metals from USA from washing machines to refrigerators to computers including car parts and these materials can be gotten for free, there won’t be any need for ball grinding and one could go direct to casting to produce wires/nails, motors, air conditioners, washing machines, hammers, power tools, lathe machines, metal shapers, even home made generators and turbines.
So, backyard manufacture is figuratively an easy endeavor a local economy and a local initiative by any local entrepreneur can pursue for local production and local consumption.
Dormitorys would be my personal choice, being in property investments & management as my sole income for 25 yrs its right up my alley. Starting a business that I know nothing or very little about is risky to do in your own Country …trying a new adventure offshore is tipping the scales in the wrong direction.You may want to rethink your break even on the rent John, trying to recoup a return on your dorm via sales may be harder to do. In essence your building a sari sari store with a semi captivated customer who has limited disposable income, on products that you would have to mark up more than the low rent corner sari sari tiki hut. It would be easier to have a quality product with a few more bells and whistles than your local competitors ( cable tv, ping pong, pool hoops inexpensive add ons) and have a positive cash flow on rent.
just my 2 cents.
ohh forgot to add in on site laudry machines ( coin -ops if possible), i have them in most of my buildings…I call em one arm bandits…i save the quarters in buckets for several years…its how i buy my new vehicles every 5 yrs.:)
i had the same idea about the mozzarella and i was thinking about sausages and salami and soprasatas because my brother in law raises pigs. i was thinking about having a pig farm and a butcher shop store front and a distribution center.theres a big pig distribution and farm piggery in Cebu about 2 hrs south of Cebu city. jim boy Hernandez of sombrero foods runs it!
Hi John: In the food stuff vein how about that good old Mexican staple corn tortillas . Initial outlay should not be excessive. Corn production on Mindanao seems to be adequate. On the meat-side how about rabbits?
Used shipping containers are being used for housing, mini-storage and shop & business or store units. There are millions of them being stored all over the world. Maybe the Philippines has a lot of them in storage ready for someone to use.
John,
Excellent article. Well done!
Low cost green construction, where homes and structures can withstand the elements, is another viable option for an entrepreneur to consider (or even the non-profit).
Using natural materials such as sand, special “earth” bags, barbed wire, low cost amenities, and community labor, a home can be turned over to the new owner within weeks.
The low cost makes ownership affordable and safer compared to what I’ve seen in the provinces.
Take a look at the non-profit CalEarth – http://www.calearth.org
Nader Khalili, the founder and award-winning architect, passed away unfortunately. However, the institute continues to teach green building techniques to students around the world.
Who knows, you could teach the building techniques, become a regional player, and every politician would want a photo with you for introducing this innovation to the Philippines.
Junior
John,
great ideas there, but a few things though. i think the filipinos love their beer San Miguel. flavered lamabnog has always been done here specially in quezon province. this is done by placing pieces of fruits(jackfruit) and even chilies in the lambanog jar. I think the italian government has coordinated with the dept. of agriculture regarding mozzarella cheese made from carabao’s milk. and lastly the former owner’s of a local ice cream brand(selecta, they sold the business to a local company) used to make their ice cream from carabao’s milk.
just my 2 cents worth.
Chas, I meant to have free perks, or what we call curb appeal here, things that cost very little but can add attraction value over your competitors. This above and beyond the obvious clean and secure facility. I give my long term non problematic residents a rent break in december, some get $100 off rent, a few i give a month free rent. I do this in a christmas card with a note saying thanks for being a terrific resident ect….makes them feel appreciated. This is why my vacancy rate and long term resident % is half of my competitors (amongst a well managed buldings)if I have a resident move it will cost me much much more than that. Its far far easier to keep a resident than to find a new one.
Hi John,
Sorry, I’m late to the party! I like your list of businesses. Two in particular caught my attention.
The first, is making mozzarella from caribao milk. This isn’t just something that can be done, it is being done! Near where I live there is a public university which has a caribao research center. One of their products for sale is caribao cheese. While their motive in producing the cheese is not really financial, they seem to have a market for what they do produce. I’m sure if you make the appropriate contacts, you too can develop a number of clients interested in purchasing caribao mozzarella, especially in bigger centers like Metro Manila.
The second idea is a dormitory. If I remember correctly, there is financing available for dormitories by either SSS or GSIS, I just can’t remember which. The main criteria, (besides meeting building codes and safety regulations) is being within a certain distance of a college/educational institution. If you meet the main criteria, financing is available. I agree with you and think that focusing on cleanliness and safety is the way to go.
On a side-note, I’m glad you haven’t included any transportation-related businesses on your list. The volatility of fuel prices really squeezes at profit margins in these types of business, no matter where in the world you live.
Good luck narrowing your list!
Memorial park is also a good business, your ROI will be shorter because we rarely cremate the departed. Look around there are some crowded cementeries.
We usually live in the same roof with out parents even when we got married so most of us don’t really need to get an apartment or buy a house but. After life we definitely need a place to…
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How about beekeeping? Is this a good business or only a hobby?
Harry: I don’t know much about the funeral business, but given the amount of land you would need in a city, it could be an expensive proposition. As to the provinces, I do know that the cemetery in Abulug is community property and that residents get a plot just for living in the town… you just buy (or, more appropriately, your heirs buy) the vault materials and you have a spot.
Many people keep bees for honey here, and there is some very good honey produced here… I know very little about beekeeping, but I would think you might be able to make a go of it (With some research from people who know… contact the dept. of agriculture)
John
Considering all I have heard about the price of electricity there. Why not look into Manufacturing some kind of Insulation Product to incorporate into houses being built. Even a 2 part expanding foam sprayed on insulation would seem to cut down on cooling costs. Its almost a no brainer!
General comment
China is in charge of manufacturing products for use in the philippines.You can buy anything you want from china.You will need a warehouse and some trucks.
The advantage of a distribution center=set profit margins.
I read another story about a guy that made an advance deposit.the interest paid out to him for a 6 year agreement was quite high(enought to make his car payment)
Don’t forget to jump into penny stocks(america is bouncing back.)
cooking is just for fun retirement activity.I enjoy serving awsome food.Mexican tacos with great hot sauce.super kfc chicken(no profit in chicken)
by the way the tomatoe is hard to find here,most are green.what do I do with a green tomato?
Tom
If you install a whole house fan wired to a relay hi/low switch the attic temp will drop to the ambient temp of the surrounding air temp.
cool guys
on another note
we need to make cans here in the phils!
Lets get the food in the can
It all wants to be sold on the same month!
can you help me?
Ps
deitrich coffee went from .38 cents to 17.00 dollars this year
do the math yeah?
John
thats the problem buying in bulk.
Is it possible for one of our members to buy a container and than split the stuff up with our own price club kind of thing?
John
ant farms need alot of workers.
when you retire lets make you the president of our lip import company
yes or no?
Hi John
This business guy I was talking to yesterday,was all smiles when he told me he was the owner of a fleet of tricycads.
He was an older man(no front teeth,just 2 pearing out from the corners of his smile.I us is service each morning to retrive crushed ice for me at the fish market.
We got to talking and he told me he owns 18 tricycads! wow
He collects 25 peso each(450 a day)each tricycad cost 7000 peso.So they are all paid for in 280 days!
I wish my burger joint was making that kind of money!
John
compliments on this excellent article and your many others. always a good read and very thought-provoking.
out of interest, can someone please tell me:
what is minimum wage in Philippines per hour?
what is average weekly or monthly salary for different types of work, eg, shop assistant in large retail store, primary school teacher, nurse in public hospital? in each case thinking of person with just a couple of years’ experience.
best wishes and thanks again. Derek
Where do I start…I guess Im the next in line when I say I want to start a business in the philippines. Ill keep it simple. Ive been making beef jerky and chicken jerky for 19 years here in the states. The wife is filipina and the filipinos here go crazy over the perfect “Pulutan”. I have been the the philippines 7 times now and the last 2 trips were beef jerky research trips. Found Boy Oberto hanging on some shelves in Paranaque selling for 289P for a 100 gram bag. The manager said it flys off the shelf. I had 200+ sample bags and went from bar to bar all over manila…Makati, Libis, Paranaque and who doesnt like it. I researched the cost of beef [wholesale], labor, rent, electricity by the KWH and all the other things it takes to make jerky. It has profit potential and I can also make jerky out of tuna. Anyway, my last trip I made a deal with a bar owner in Libis and he sold 50 bags of jerky in his bar without any advertising and sold all 50 bags in 3 days with customers coming back later and asking for it again. Im trying my best to research this jerky potential and we arent even discussing all the expat areas where jerky is known and I figure, desired.
I have seen and agree that having a business in the province, or an internet cafe fully staffed with inlaws is a bad idea. I wont be u sing a single relative and am going to fund this properly and with a budget that has everything covered and lots of things I know arent. If I can get this off the ground there is a heavy hitter waiting in the wings that wants to then invest big bucks to take it to the next level.
Contacts are everything and I have many. Anyway, I am looking for gut level reactions and personally, I just plan on trying to get bar after bar as clients cause thats where the mullah is. Jerky thats spicy and yummy equate to more beer sales and beer drinkers will surely enjoy jerky.
Many thanks and good night!
Mark
Hi guys. I posted to this blog a few days ago and as you can see MindanoBob replied but my post has been deleted. What happened to it?
Hi Mark – Your comment was not deleted, but rather it was lost. I did some server work yesterday to correct some bugs, and in the process a few comments were lost. It’s unfortunate, but there was no choice. You are free to post your comment again if you like.
Hi John,
I like your idea about the online consultation system for the start up companies. I am a web developer and at the same time an entrepreneur by heart. I can help you to implement this if you want.
Hi Brian – Important to remember that Mexican and Spanish food are pretty different from each other.. There are two very good Spanish restaurants in Davao (El Torro and Hola Espana). No Mexican, though.
Hi Brian, may I know where you are based in the Phil? In Manila, there are lots of good spanish fine dining restaurants. There’s the old Casino Espanol in TM Kalaw, Ilustrados in Intramuros, Casa Armas in Mla & MKTI, El Circulo. Bear in mind though that Filipinos have been eating spanish foods for a long time (or at least, that’s what we think) such that they have localized it. There’s one old restaurant too by south super highway where I remember it had its distinct spanish windmills. I forgot the name & I don’t know if it still exists.
& yes, there are no mexican restaurants in the Phil. Owing to the lack of presence of mexican restaurants in the Phil, I think it’s fair to say Filipinos were not fascinated w/ it.
Barry: Sorry for the late response… I’ve been wandering around in Indonesia the last few days.
I think your experience with the jeepney is atypical. I’ve seen many foreigners go that route and it is tough to get a profitable route. Now, as to providing one to family, different story, though they can quickly turn into money pits.
For the pigs, one of Becky’s brothers is getting involved. If family are OFWs, there are a variety of small business loans available from the POEA to get them started. One downside to a piggery is the smell and the neighbors. In Abulug right now there is a feud between two families over a piggery smell.
Finally, a visit to the Dept of Agriculture is a must for new farms… The government actually has a whole array of subsidies and programs to get people started… Again, visit if family is involved.
Danny: I think the market for services is strong. For instance, the closest dry cleaner to our house is over 1 km away… Services to expat corporations, services to the expat market… all strong. I think a language school could do well, particularly if you hire native speakers. The low income market is well underserved… Good value is in demand from all classes of society. Finally, As the middle class becomes larger, demand for services will increase.
Brian / Bob: Mexican food is one thing expats need to learn to live without (AND, I truly love it when it is good. BUT, when it is bad, it really is bad.). Though I have come across the odd Mexican restaurant in Manila, and, in Cebu, the yacht club has a Mexican menu with decent tacos.
Paul: I agree… rice merchant is on shaky ground. You may get some stiff opposition. As to the dormitory, we’ve begun lookingh for suitable land (Becky’s name, of course!)
David: Really wise words, my friend! You cannot run a business remotely… EVEN in the US.
JC: I think a wing joint might do well. The key will be to keep the prices low. When we first moved here and I looked in SM, wings were the most expensive cut of chicken, with boneless skinless the cheapest. Filipino tastes tend to lean towards bones and dark meat (more flavor, I’m told.) Put your joint near a college or factory or office building and you won’t have an empty table, I’m guessing.
Cathy: I’m really leaning towards the chocolate… The cacao is high quality here, and I think a premium product could do well. Constraints will be uniformity and quality.
Joe: I agree… start small and build up. I found nail making machinery at auction in Germany quite cheap. With shipping and god knows what duties, however?
Labor is interesting… There is a very well-known business case regarding Dole Philippines and well-intentioned payment of higher wages. The result was that inflation became rampant in Mindanao back when Dole was new, since they payed something like 75% over local norms. That is why we give our pond workers local wages, plus a portion of the catch (In addition to minimizing pilferage).
Tom: Right you are! Words to the wise! Just because a business is located in the Philippines doesn’t mean that principles and laws of basic business no longer apply. As to restaurants and so on, most restaurants in the States last less than a year. Why? Restaurants are commonly started by people who may know how to cook, but know nothing about business.
Wildcat: You can always expand or buy another property if it works. I think if we do the dormitory, most income will come from the canteen. Keep rent at the expenses level only.
Joe: I think you are on the right track! Manufacturing here has good potential, if you find a niche and keep decent quality and consistency.
Ron: I think that is a fantastic idea.
Save the trees.
Jerry: That is a decent idea… having mechanical ability is a constraint, but there are many people to be hired here… We have a couple of old men, “fix it” guys, who go through our compound a couple of times per week. I think those guys could fabricate just about anything mechanical!
While the local economy is not as advanced as the West, local manufacturing business should thrive and be profitable. You’re not impinging intellectual properties since most of these equipments have expired patents and therefore are not competing directly with new technology patents, unless you have better ideas than existing technologies – then again you’ll have to research and if new, file a patent either at the US or Philippine patent office.
Late Henry Ford’s wisdom deserve a close study in that it revolutionizes the way manufacturing ought to be – get employees to partly own the corp./shop, provide high wages to employees so that they remain loyal and be active economic actors/multipliers to their localities, and re-inventing automation of manufacturing to just-in time deliveries. In today’s reality of surplus equipment, the flooding of surplus equipment in the world market due to high productivity from USA, EU, Japan, and now China does not cloud the fact that more than 80% of the population do not have access to these equipment due to cost prohibition. So that the most appropriate solution is local manufacturing for local consumption.
Good luck in your ideas of manufacturing. I’d be glad to see you succeed in the business. Oh by the way, don’t forget to update us in your successes, whether you just got started or marked your first sales.
Hi John, canteen is also hard. Long hours, hands on management, high cost of food prices. You know how expensive food is in the Phil. That explains why John G said serving portions in Thai are larger in the Phil. For a kilo of chix, you can sell it just for few servings. Most of the time, you’d break even on it. Chix dishes sold in canteen are like “missionary” dishes. They are there not for profit but only because you have to have chicken dish among others.
How about poultry business, piggery, goat raising etc?
HI John,
Actually, there’s already a Davao chocolate being sold in the US, if i remember it correctly, it’s the Askinosie brand and sold as a premium chocolate.
But you know, that flavored lambanog could work!
..opps..that should say : food portions in thai are larger than those served in the Phil.
Roy: I’m a believer in that nothing worthwhile is easy. Eons ago, before I got into business, I worked as a chef in Chicago, so I know the food business pretty well. Keeping meals affordable is the challenge.
Hi Brian,
You have to remember what works in the West does not always translate to PI.
Most Filipino’s struggle to pay for their kids education and would be looking for cheap basic student accomadation.If you add on to many perks you are in danger of becoming to expensive.
I would think it best to keep it simple in PI.
regards Chas.
Hi Jerry,
If you are gearing up with the sole intention of supplying the local market then you cannot pay overly high wages to employees.
Your product will become to expensive and unaffordable to locals.
regards Chas.
Hi chasdv,
High waqes for local employment shouldn’t be a barrier for an affordable local supply chain. I would look up to 2:100k ratio – 2 employees to a potential 100,000 customers on a 1 million city population. The volume could also come from businesses who can order by bulk as in construction industry for wires/nails. Or, 100 employees with comparable wages with stock ownership options, parting their wages up to 15% maximum in return for future profitability of the company. This 2 employees or 100 employees in return spends/saves their extra earnings to the community or back to the company. This is the greatest risk for an entreprenuer when sales reached saturation/flat level unless a new technology is developed or another market niche is found as in leasing equipment, etc. This normally occurs within 20 years and the entrepreneur may sell company for billions and retire.
Chas: With the dormitory, our primary goal is security and clean, so parents will know their kids are safe and healthy. Everything else is an add-on.
Brian: Good idea on the surface, but the first thought that popped into my head was getting our maids to use the machine at home. By hand for free will win out on student budget, I think.
Mike: Refrigeration is an issue with the cheese, as is local demand. Fortunately, we can easily make a small batch and see if people buy it in the market first.
Roberto: I’ve never seen corn tortillas here, and very limited flour tortillas. There are locally produced taco shells, however. I’m not certain about the demand here for corn tortillas. Perhaps from a finished product perspective.
I’ll have to ask Becky about rabbits. I’ve sen them here wild, but I’m not certain if people eat them here. Perhaps Bob has heard of rabbit meat?
Bicycle: I’ve sen them used as makeshift housing near the port. Not certain who is selling them, but someone is doing business in that area now.
Junior: I think that is a great idea, but not for me, given a lack of engineering ability. I would think that someone with experience could make a go of it, however.
Ernest: I never knew that about selecta. The mozzarella would make sense, especially for export to other countries in Asia, if manufactured and labeled properly.
I’ve sen the Lambanog, but the same problems persist of marketing, packaging, and quality control. For something like that, you need people to want to buy it.
The Philippino people seem to be keen on agriculture and animal husbandry.
Maybe this food source for propagation: Selling live ‘Desert Lobsters,’ or Australian red claw crayfish. “You can feed them peas; you can feed them alfalfa hay,” he says. “They eat just about anything. You can even feed them water buffalo manure.” See this article: http://www.latimes.com/news/nationworld/nation/la-na-desert-lobster2-2009jul02,3,1969645.story?page=1.
Hi John, Rabbit meat is available in Davao, but not that easy to get. Feyma makes home made flour tortillas too, they are excellent.
Bob: Becky makes tortillas too… They are far better than the ones you can buy in the store. When we were in Abu Dhabi, she made Chapati and Paratha, which really aren’t that different. Funny though, she has tried to make Mexican food for me, but is really not familiar with the spices, since her exposure to it is very limited, so we’ve had some interesting variations that came out Indian / Mexican. Believe it or not, they really didn’t come out too bad!
I’ve seen rabbits running around up in Abulug, and I’ve seen people up there keeping them as pets. I assumed they were eaten, but never ate any there.
Bicycle: Similar to our fish ponds… We are thinking about abalone, given the high price, but our water may not be right. Funny to note about lobsters: I occasionally see them in the market in Manila, and Rebecca told me that most Filipinos prefer crab or other shellfish to lobster.
Martin: This week I’ve been running late o9n everything… I appreciate your comments, since you have started your business here!
I assumed someone must be making the cheese… My concerns are related to the demand locally. If you look in the grocery aisle in most supermarkets, the cheese offerings here are pretty slim. I think it is a combination of local taste and lack of refrigeration. However, if the university seems to be making a go of it, perhaps the market is bigger than I thought? Plenty of carabaos around for the milk, that’s for sure. Could even try and make butter and other dairy products. I may ring them and talk with them about it.
Your suggestion for the dormitory is excellent! I will certainly look into that. I think the dormitory is Becky’s first choice.
John, regarding the dormitory again i’m sure BECKY has no problem financing it through SSS, PAG-IBIG OR GSIS, most OFW’S are SSS members and i think we can loan up to 3 million php depending on your fixed income. I am both SSS w/ flexi-fund and PAG- IBIG members and w/in a couple more yrs i will be able to finish all these financial obligation then i can go home and retire and do some business at home. I’m out of my country for so long and i want to go home for good and be an employer rather than an employee….this is my goal and hope it will materiliaze……..
Wildcat: Yep, we’re going to look into that… She paid into the programs for so long, she might as well use them if she can.
Good luck on your dream!
Neal: I’ve often wondered about that. Good idea, if the builders will use it (In my mind, you will have to educate the buyers of the necessity… Never an easy task, but not insurmountable.). I’ve only seen it in Manila, and NEVER in the province.
Dear John,
I wrote you on your other article about farmlot set-up which i hope to get busy with when I retire from my work here in Saudi. Just like what you have said, similarly, this will not be a retirement but rather be my own boss. I am quite tired of making other rich with my successes in designing complexes here, lately, I was able to close a deal for a 5000 student capacity for nursing school here in Saudi. Sad to say that I am under salary term that will not benefit me rather all the burdens to execute projects.
You mentioned Lambanog which my wife started already selling it in our Kamby’s outlet. My family used to own Lambanog Making before, that’s why I would like to try it again. I bought already tubes for curing Lamabanog to have different flavor. I expect marketing will be my main concern.
About Piggery, that was my first impression before, the smell, sanitation and neighbors. On my last vacation I was so amazed of the demo farm in Bureau of Animal Industry on how to raised Pig with almost maintenance free. They have the technology and very simple one. Even the housing is just any crude system, no need for expensive concrete housing. I will be raising Native Pigs and Native Chicken since that will be the expansion of our KAMBY”S MEAT SHOP which serves native Goats for Pulutans.
Our formula in KAMBY’S seems having a bright future. We just started it but seems we hit the right button of our Tambayan culture. We used to offer Native Goat Meat, with cooked food delicacies served with beer and a Karaoke that is earning by itself.
I would appreciate very much if you could help me promote KAMBY’S among expatriate communities as you know when a certain stablishment being frequented by foreigner will be a good promotion for your business. I hope to improve our simple system being part of our culture that you will enjoy. Our Pulutans is just $2.00 of healtier meat, and few cents of being entertained singing along with others.
Hope we could help each other. See my Blog below for you will see my ideas there like the “Lambanog Bar”
God Bless!
Vic
I seen lobster in manila for 2500 pesos each …sorry not for me ..i like the giant shrimp 3 of them fill a plate ..Phil n Jess
Vic: The best way to get expat traffic would be to advertise where expats hang out… Flyers handed out in the mall, placed in hotel rooms, etc. Since you are close to Fairview, that would be the best place to start.
As to lambanog, eons ago I sold frozen margarita machines in the Bahamas, did quite well with it for a while. There was a bar in Nassau that bought some from us, I believe called Bahama Mamas, that bought around 40 of them and had them in view of the customers… It became their signature. The machines are not that expensive and it could prove to be a neat little gimmick (I haven’t really seen much of that around here… You can also use the slushy machines you see in convenience stores)
John,
I tried to do some quick reseach in internet about Bahama Mamas, This may really work so well with Lambanog to counter its strong biting taste. This may give also Lambanog a new niche in the market. Our town you could say is the original as for real Lambanog Making. This is my job while I was still a kid, to gauge the proof and stock filing. This is one such cultural product that is so risky to produce. Our “Magkakaret” used to glide along two pieces of bamboos tied between each tree high-up sometimes more than 10 meters high. I would suggest to include this in your future write-up since this has been on of your interest in your business radar.
Your information is so encouraging! You do have creativity in business.
My wife has a ready Lambanog for your generosity.
Hope you pass-by KAMBY’S, it is nearby SSS Fairview Branch.
Vic
Hi John!
I have been searching for a source of insulation for the attic of our home. Have you seen any sources in Manila? I think the benefit would be worth the shipping expense.
Tom: The fiberglass insulation like in the States is not common here. They often coat the roof, use foam around the concrete forms, or use bubble wrap. We normally head to Divisoria or Quiapo for building materials, but, for the life of me, I can’t remember their names if my life depended on it. I highly doubt they have web sites either, but they are all clustered together in one small area (If one doesn’t have it in stock, his neighbor might).
You could also contact these guys:
http://www.mchomedepot.com/mcprofile.htm
http://www.homebuildingphilippines.com/excel_coil_coating_corporation/17_rfoil_pure_aluminum_insulation_01.html
Good luck! As I said, insulation here is typically done during construction and you may have a difficult time.
Hi erik – Penny stocks… you mean like GM, Citi Group and such, right?
Erik: Most Filipinos prefer green tomatoes… It’s a cultural thing. Just use them on your tacos and your Filipino customers will not even notice.
As to China, we had thought about buying fishing equipment in Shenzhen and shipping it over. To buy profitably there, you generally need:
1. A substantial amount of capital (They deal in the thousands of units, normally)
2. A VERY good local agent in China (Unless you are fluent in Mandarin and understand the processes thoroughly).
Bob: I got lucky… Bought some Ford last year when it tanked, and just sold it at $5++… Got lucky. Stocks are really similar to gambling. Blackjack is my analogy. If you are skillful, you can move the odds closer to your favor. Bad economy equals good time to buy.Buy what you can afford to lose.
Erik: I didn’t think of that, but we had one when I lived in Texas… Right you are! I’d do it here, but the attic in our house is my office / loft.
Erik: Can-making equipment is typically high capital.
Erik: Got so many of the “good” black ants here, I never thought of farming the little critters.
Wow you read my mind Erik! I was thinking of an attic fan that has the big louvers in the ceiling that would pull the hot air bubble that hangs at the highest level. We have decorative windows above the bedroom doors which I plan to hinge so they can be opened to vent the hot air when the air con is on. I was hoping to find some of those gosh awful whirly gig roof vents to install on the back roof out of sight. Has anyone noticed any of those or something similar?
Hi Mark – Feyma and I used to make Tuna Jerky regularly, and it was great! Marinate it in whatever kind of sauce you like (teriyaki for us!) and it is really great, and nutritious too!