Philippines Insider" The Ultimate Philippines Travel Guide for Tourists and Expats

Author Topic: To establish a business  (Read 22155 times)

Offline bigrod

  • Retired USAF Club Mgmt Supt, Personnel Supt & 1st Sgt
  • Administrator
  • Sr Member
  • ******
  • Posts: 1,927
Re: To establish a business
« Reply #15 on: October 15, 2015, 01:03:57 PM »
Credit is the death of most small businesses anywhere not just here.  Most small businesses do not have the money to sustain a business on credit.  It seems even worse here because credit is treated like a loan here, which is normally not repaid.

Chuck
Life is  to short not to live it right the first time

Offline Majal

  • Sr Member +
  • Sr Member
  • ****
  • Posts: 117
Re: To establish a business
« Reply #16 on: October 15, 2015, 08:58:08 PM »
There's an Australian man that can answer all your questions on business and he has a business and also rents and sell condo's he goes by the name "SeantheResortrebel" on Youtube, it's an eye opener. 

mcalleyboy...interesting you tube and you're right its  an eye opener. Don't know the story of the owner except what  Sean said so I can't really make my opinion. I can tell you though that for someone to make an investment without considering environment, if what your offering what people need, is there a demand? Can they afford?... what age bracket are your target customer?...those are basic business strategies. My IDEAS are nowhere near that...that's a multi million dollar investment, this little lady got no time for a big business like that, I just want something to keep me occupied and if I want profit on it why not I will be dumping money to start it. For all I know, I'd just have a Mobile Cocktail busses/van like in Thailand....have you seen those here in PI? Sure beats going to a hotel/restaurant to get your overprice drinks.  Thanks for the feedback!

oh I got a bonus of watching the girls (next video) LOL!



(repair post placement outside quoted, Lee2)
« Last Edit: October 15, 2015, 09:14:47 PM by Lee2 »

Offline Hestecrefter

  • Sr Member +
  • Sr Member
  • ****
  • Posts: 381
Re: To establish a business
« Reply #17 on: October 16, 2015, 04:27:52 AM »
mcalleyboy,

That guy Sean whose video you mentioned makes some good points.  I have seen others of his videos.  It is interesting that he comments that one should plan to work full-time in any business one starts in the PI, or don't bother starting.  I think that applies just about anywhere.  Starting a business is a significant undertaking and it requires more time than the more typical 40-hour week of an employee.  If the owner does not dedicate the time to make it a success, no one else will.

I do think it possible to establish something modest, as Majal suggests, particularly if the point is not to make money to support oneself.  I think that's the safest way for foreigners to approach business in the Phils.  Don't plan on it supporting you.  Make sure you have adequate income from other sources already.  Also, do not invest what you cannot afford to lose.  That way, if you are fortunate, you might even make a decent profit, but not the end of the world if you don't.

BTW, that guy Sean says he's from Canada. Mcalleyboy, you say he's an Aussie.  Perhaps he's both.

Offline M.C.A.

  • Sr Member +
  • Sr Member
  • ****
  • Posts: 757
Re: To establish a business
« Reply #18 on: October 17, 2015, 01:50:42 AM »
Lol, I thought he was from Australia, he sure has an accent.  I think my first 3 years I tried to figure out a way to make some extra cash, boy was that a wasted effort, maybe I'm not a good person to ask about creating a business, I've tried several rock bottom idea's and it all came down to added food and electrical costs, the profit is so minimal that it's depressing.

Also tried to help a few select in-laws who have skills by encouraging them to the next level but that too.... was a wasted effort, sister-in-laws son is a very good artist and so I pitched in and bought him a tattoo kit, he is very good at tattoo but it never worked he's currently delivering filtered water.

Figured out the best way to make money and that was to kick out everyone but my wife and son, sure worked, I got one hell of a pay raise and they are doing just fine working for someone else or getting by on other in-laws and friends.
My views would be from someone who lives out in the province close to in-laws on a pension.  Norwegian and French heritage.

Offline Lee2

  • Sr Member
  • ***
  • Posts: 3,358
  • *** Rest In Peace ***
Re: To establish a business
« Reply #19 on: October 17, 2015, 02:02:33 AM »
One way that I know of that a number of foreigners make money, is in rentals, one guy I met years ago built a complex with I think it is 9 units, each 2 bedroom 2 bathrooms and he has his relatives handle the rentals for him.

Also I have met a number of people in Cebu who own condos and rent those out, usually making between 6 and 12% a year on their money doing that, not bad in today's world. The idea IMO is to have a low cost per unit invested and rent them naked, since it is usually easier to rent at lower monthly costs and naked means nothing to worry about to be damaged or maintenance except for the unit itself.
:) Happily married since 1994 & live part of the year in Cebu and the rest in S. Florida.

Offline Majal

  • Sr Member +
  • Sr Member
  • ****
  • Posts: 117
Re: To establish a business
« Reply #20 on: October 17, 2015, 08:29:33 AM »
''Utang'' (credit) is the death of small businesses here. Many students in college try businesses like selling clothes or even phone credit. I had warned a few "DO NOT GIVE CREDIT" - invariably they did and eventually lost money on the ventures.

iamjames...That's really an issue in business in PI. That's why "pay now" approach is best. Like a vending machine concept. Pay first before you get the product. That's not a new concept there either. Another approach a lot of people do is through collateral. Leaving something valuable just in case you default on payment and it could go as high as leaving a land title.

Offline Majal

  • Sr Member +
  • Sr Member
  • ****
  • Posts: 117
Re: To establish a business
« Reply #21 on: October 17, 2015, 08:41:46 AM »
One way that I know of that a number of foreigners make money, is in rentals, one guy I met years ago built a complex with I think it is 9 units, each 2 bedroom 2 bathrooms and he has his relatives handle the rentals for him.

Also I have met a number of people in Cebu who own condos and rent those out, usually making between 6 and 12% a year on their money doing that, not bad in today's world. The idea IMO is to have a low cost per unit invested and rent them naked, since it is usually easier to rent at lower monthly costs and naked means nothing to worry about to be damaged or maintenance except for the unit itself.

Lee2....I think it'd be awesome to actually build a studio type of property and target younger generation of IT's/College kids in Cebu City. I see market for that over there during my visit. As for Condo, my biggest concern are the developer. Foreign investors are very panicky in the islands.
not so much in Manila. I have seen numerous abandon high-rise condo in Cebu. Thanks for the feedback.

Offline Majal

  • Sr Member +
  • Sr Member
  • ****
  • Posts: 117
Re: To establish a business
« Reply #22 on: October 17, 2015, 08:52:33 AM »
mcalleyboy,

That guy Sean whose video you mentioned makes some good points.  I have seen others of his videos.  It is interesting that he comments that one should plan to work full-time in any business one starts in the PI, or don't bother starting.  I think that applies just about anywhere.  Starting a business is a significant undertaking and it requires more time than the more typical 40-hour week of an employee.  If the owner does not dedicate the time to make it a success, no one else will.

I do think it possible to establish something modest, as Majal suggests, particularly if the point is not to make money to support oneself.  I think that's the safest way for foreigners to approach business in the Phils.  Don't plan on it supporting you.  Make sure you have adequate income from other sources already.  Also, do not invest what you cannot afford to lose.  That way, if you are fortunate, you might even make a decent profit, but not the end of the world if you don't.

BTW, that guy Sean says he's from Canada. Mcalleyboy, you say he's an Aussie.  Perhaps he's both.

Appreciate your insight. My thought process exactly!!!

Offline Lee2

  • Sr Member
  • ***
  • Posts: 3,358
  • *** Rest In Peace ***
Re: To establish a business
« Reply #23 on: October 17, 2015, 08:58:12 AM »
Lee2....I think it'd be awesome to actually build a studio type of property and target younger generation of IT's/College kids in Cebu City. I see market for that over there during my visit. As for Condo, my biggest concern are the developer. Foreign investors are very panicky in the islands.
not so much in Manila. I have seen numerous abandon high-rise condo in Cebu. Thanks for the feedback.
I wonder when that was and where you had seen them since I have yet to see even one abandon condo building and more keep going on everyday. I do realize some condo units may be empty but that does not mean they are abandoned, what it usually means is the OFW have bought them and are making payments. We had a unit next to ours that we kept trying to buy because it was empty for years, the owners were making the payments on time and then finally rented it out the last few years.
The condo complex we are in seems to rent out empty studio units fairly quickly because of the location and the low price of rents for those. I do remember some empty condo complexes on Mactan maybe 8 years ago that went bankrupt but even they have since sold out and seem to be doing fairly well.

Anyway it is always important to do what a person feels comfortable doing and new condos usually cost more, so finding the second had ones that are being sold way below the retail price, makes for much more monthly profit on rents.
:) Happily married since 1994 & live part of the year in Cebu and the rest in S. Florida.

Offline Majal

  • Sr Member +
  • Sr Member
  • ****
  • Posts: 117
Re: To establish a business
« Reply #24 on: October 17, 2015, 09:11:04 AM »
Thanks everyone for your insight. I don't think the time to truly RETIRE in every sense of the word will be  soon for me even after 6 years. I cannot imagine having Jack and Coke on the beach all day for me.., at least not yet. I'm going to have fun for sure not worrying about going to work for somebody, but this little lady will be bored to death if I don't keep myself busy with something. That's where the small business come in. I know for sure that I will venture out on "something",  Coleman mention something like, knowing your target customer. Demand, need, location. I was interested to find out how it was for you guys in your respective areas. I do not want to start a business in Bicol where my family is at.

Offline Majal

  • Sr Member +
  • Sr Member
  • ****
  • Posts: 117
Re: To establish a business
« Reply #25 on: October 17, 2015, 09:23:39 AM »
Lee2....I think it'd be awesome to actually build a studio type of property and target younger generation of IT's/College kids in Cebu City. I see market for that over there during my visit. As for Condo, my biggest concern are the developer. Foreign investors are very panicky in the islands.
not so much in Manila. I have seen numerous abandon high-rise condo in Cebu. Thanks for the feedback.
I wonder when that was and where you had seen them since I have yet to see even one abandon condo building and more keep going on everyday. I do realize some condo units may be empty but that does not mean they are abandoned, what it usually means is the OFW have bought them and are making payments. We had a unit next to ours that we kept trying to buy because it was empty for years, the owners were making the payments on time and then finally rented it out the last few years.
The condo complex we are in seems to rent out empty studio units fairly quickly because of the location and the low price of rents for those. I do remember some empty condo complexes on Mactan maybe 8 years ago that went bankrupt but even they have since sold out and seem to be doing fairly well.

Anyway it is always important to do what a person feels comfortable doing and new condos usually cost more, so finding the second had ones that are being sold way below the retail price, makes for much more monthly profit on rents.

Hi Lee2. I stand corrected. not exactly in Cebu City. The abandoned high rise are within Newtown, Mactan. I was there last February actually checking out properties. Have a family friend from here that live in Mandaue and she was showing us the island in two hour mile radius both sides of the bridge. I have plans to visit again next year and Cebu is in my itirenary, I am interested to check out properties that you may suggest.

Offline Lee2

  • Sr Member
  • ***
  • Posts: 3,358
  • *** Rest In Peace ***
Re: To establish a business
« Reply #26 on: October 17, 2015, 09:26:21 AM »
Hi Lee2. I stand corrected. not exactly in Cebu City. The abandoned high rise are within Newtown, Mactan. I was there last February actually checking out properties. Have a family friend from here that live in Mandaue and she was showing us the island in two hour mile radius both sides of the bridge. I have plans to visit again next year and Cebu is in my itirenary, I am interested to check out properties that you may suggest.

I am not expert but my wife and I will be in the city from mid Feb to sometime in May if you wish to meet up, message me and I will be happy to give you my Philippine cell phone number.
:) Happily married since 1994 & live part of the year in Cebu and the rest in S. Florida.