Start a Business in the Philippines
This is one of those sorts of posts that I really don’t care much about writing. This site is essentially a labor of love. I make a non-trivial income from a number of online ventures, but PhilFAQS certainly isn’t much of an earner. I tell myself often I should only write about the things that interest me, and quite frankly, running a business … I’m talking about a ‘dirt world’ or ‘brick and mortar’ business inn this post, is not something that interests me. My wife and I ‘put up’ and made a financial success of a ‘dirt world’ business back in the USA … it’s not something I don’t know how to do. When the time came for us to make the move to the Philippines one of the options we could have chosen was to keep our business alive and manage from the Philippines. The businesses essentially was retail sales, with no stock (I sold equipment and ordered from the manufacturer for delivery to the client), so business-wise it would have been relatively simple to build a team of commissioned sales agents to cold call, demonstrate the product, get the orders signed, etc.
Even though our business was about as conventional as can be, we still did a majority of it online … placing orders, paying bills, banking, tax payments, submitting bids, collecting payments … even most state and local sales taxes and administriva like that can be handled online. But I didn’t want to run a conventional business any longer.
Regardless of what my own interests are, though, if this site is to have any value at all, I need to be responsive to reader’s needs, and I get a tremendous number of inquires and even pleas for help that involve starting a business in the Philippines.
Some of these ‘business in the Philippines’ queries come from folks who want to move to the Philippines and envision a business her in the Philippines as a way to make a living.
Others write because they have relatives or friends here in the Philippines whom they want to help get a start in life or move up in income by starting and running a business here. So, I soldier on … what the readers want, I give
Actually I guess I just wrote my first informational paragraphs already, when i described the alternative my wife and I chose not to avail of … operating a business that makes its sales in the US while the owner operates the business from the Philippines. There is absolutely no reason this can’t be done. And it is certainly not limited by citizenship, either.
Unlike the rules of business incorporation here in the Philippines, there is no law in the US which requires businesses to be owned by US citizens. A Filipino can ‘put up’ a corporation, especially an LLC (Limited Liability Corporation), the form of business most commonly recommended for many small businesses, in a number of states in the US in a matter of minutes.
No address in the US? Most business formation services (there are dozens or even hundreds of them … this is one I have sued in the past and highly recommend) offer the service of being the business’s registered agent anyway (some states even require this), so for a few hundred bucks anyone can form a business in the US, in 15 or 20 minutes … if you read slow.
Taxes? If you are a US citizen, of course you are required to pay them (or not, read the rules on foreign earned income and seek professional advice there, but your tax bite might be less than you think). How would a Filipino deal with US taxes? Just apply with the US IRS for a TIN and presto, you’re legal.
What business would you do? Ah, well don’t ask me that, the choices are virtually unlimited. I want to keep this post down to a thousand words or so, but just take away the message that running a ‘real’ business from overseas is not at all impossible in today’s day and age, Filipino or foreigner.
Now, suppose you say, “Oh NO, Dave, I can only consider a business here in the Philippines”> OK, fine. Did you read my post last week about the Philippine specialist franchise consultant and broker (who also comes highly recommended, by the way, he’s no scam artist or ‘paper hanger’). How many of you read that? Howe many went and enquired about a franchise that interested them? How many left a comment about the article? See why I feel I am often living in a vacuum? People ask for information, I provide, and apparently they wanted it in some language other than English, because no one seems to connect.
On the chance anyone is reading, here’s another source I have kept up with for years. EntrePinoys ATBP. (ATBP is a common Filipino acronym for At Iba Pa “and others”, typically used where the Latin etc. would be used. The owner of the site, Leo, (who is a Filipino) has been diligently documenting Philippine business and investment opportunities for years … tirelessly I might ad. There are thousand and thousands of opportunities listed … many with facts, figures and step by step instructions. Spend an afternoon with Leo and then come back and tell me there is no opportunity in the Philippines … you can not, with a straight face anyway.
If you do decide that staring a business here in the Philippines is the thing for you, or your relative … here’s an excellent source (just select the country you want to learn about)that will help you through the myriad of regulations, permits and other “mother may I’s” you will need to wade through. You won’t start a business in 15 minutes in the Philippines, but still that doesn’t mean it may not be worth it.
Popularity: 4% [?]
Another Philippine Pony Found — True Life Living In The Philippines
Just recently I answered a comment on one of my articles on Bob’s Philippine Web Magazine in what many may feel is a pretty contrition manner. A lady wrote to tell me that the reason she wasn’t moving to the Philippines to live was because there was no opportunity here … especially for young teen children who will, after all, becoming self-supporting adults in just a very few years.
My view could pretty much be summed up in one phrase “wrong as rain”.
You may also recall I put together a number of articles here in past months based on an old farmer’s joke made popular by President Harry Truman, about there being a “pony” (which I am using as a metaphor for an “Opportunity” under the a huge pile of manure and stable residue … which serve to represent the continual nay saying and the chorus of “it can’t be done” that grates on my nerves each and every day, living here in the Philippines.
Here’s a nice up to date example why I believe the Philippines is indeed a land of opportunity:
US couple retires in Corregidor
By Ross Harper-Alonso, Philippine Daily Inquirer, First Posted 02:36:00 06/14/2009
MANILA, Philippines—While many dream of retiring into a private island in the Philippines with long stretches of deserted fine, white sand beaches or enjoying a luxury resort lifestyle still close to where the action is, an American couple has chosen to do the unusual.
Steve Kwiecinski, 57, a retired computer programmer and his wife, Marcia, 56, a retired physical therapist assistant, left Michigan in 2008 to start a new life on Corregidor, the island fortress that has become a national shrine as a symbol of the determined resistance of its Filipino and American defenders against the invading Japanese in World War II. You can read the rest of Steve and Marcia’s retiring in the Philippines story here.
OK, I can here you saying. This is false adverting. You started this article talking about opportunities for the young and then you give us the story of a couple, advanced in years, living a crazy lifestyle in an obscure place, and obviously living off a retirement pension. You see opportunity there?
I surely do. What the article didn’t point out is Steve’s “part time job” or more accurately, labor of love. Steve guides and escorts tours for Valor Tours, Ltd., a company who specializes in conducting tours all over the world focusing on important World War II battle sites. What? You mean a US company can make a profitable business out of touring people to the Philippines and even more out of the way places like Tarawa and Guadalcanal? And they have been making money at it for years?
Steve has been to the Philippines before, and decided he liked it here. If he listened to all the ‘wise men’ we hear chorusing in the background, he would never pull up stakes and live in a one bedroom cottage on an isolated island in the Philippines.
- What if the people stop coming on tours?
- What if the government says, “hey get out of our house”?
- What if the money the Kwiecinski’s invested to get their SRRV doesn’t yield as much money as it did back in a US bank (oh, wait a minute, not much chance of that happening is there *sigh*, on to the next point, Dave)
- What if either of them gets sick and has to be hospitalized
- What if, what if, what if?
This is the biggest “what if” in Steve and Marcia’s life (and in mine as well) is, “What If” they had just sat around and waited until there was no risk. Waited until Steve was 65 so he would have his Social Security for extra income, waited until they had more money for a better house, I’m sure many of you can think of other reasons why the move Steve and Marcia made might seem rash or risky.
But on the opposing side of the decision matrix you might also ask, what if Steve dies next year? I certainly wish him a long and healthy life, but 58 or 59 year olds drop dead every day? So do people in their 30’s and 40’s. Steve and Marcia already own, I mean truly own … can’t be taken from them … memories and experiences that most of us will never have … all because Steve made an off the wall request to live his dream and the request was granted.
Opportunity? It’s all around us … how long will you wait?
Popularity: 3% [?]
Philippine Business Resources
As many know, I often get queries from readers about starting a business in the Philippines for themselves, or helping a family member put together a business and get it off the ground here.
In general, this is a difficult task for a foreigner. Starting a business anywhere is a significant challenge. In the Philippines (rated one of the most difficult countries on earth for startups) it is even more daunting. If the parties involved are not already experienced in starting and running a business the task is even more difficult.
Yet businesses in the Philippines absolutely can succeed. Some do very well. And running one’s own business is orders of magnitude better than trying to find a J.O.B. (Just Over Broke) here in the Philippines for a foreigner.
Many are also interested in the aspect that a business that succeeds and has employees can provide for many members of a family who need work and income. or even folks in a local community. Not long ago I read a nice article about a lady who had started a successful restaurant in Manila and was branching out into other locations, her wait staff and other service employees were almost all ‘imported’ from her tiny town back in her home province.
In addition to the obvious fact she was helping folks with little opportunity find honest work, she found this was a tremendous business asset. The single employees lived together in company sponsored dormitories and she had the opportunity to train the staff from day one exactly to the methods and standards she wanted followed. And as you might imagine, employee loyalty and morale was very high.
So, if you do decide you want to start a business … or, if you already have a business and want to expand it, like the lady I mentioned above … one of the strategies you should look into is franchising.
Like all business strategies, franchising has its own set of pros and cons, but while I have seen many a foreigner owned/managed independent restaurant struggling or even shuttered after 6 months of floundering, have you ever visited the Philippines and seen, for example, a Jollibee without a line at the counter?
I just recently became aware of a good source for franchising information here in the Philippines. I have good reason to believe the owner and his staff are highly reputable, but as with all things, caveat emptor. I thought I would pass it along as a useful Philippines business resource … is there interest in more pointers like this one?
Popularity: 2% [?]
Philippine Living — Where Did The Money Go?
As much as so many of us talk about money, cost of living, investments and other money-related matters here in the Philippines or back home “day dreaming” about the Philippines, it’s amazing to me just how few of us keep very good track of our money.
I had this driven home to me several times when I wrote articles here on PhilFAQS about daily costs of living here in the Philippines and realized I really didn’t know where some fraction of my money really had disappeared to.
And of course, come tax time … especially when the statements from some of my Internet income roll in … Wow! do I have to pay tax on all of that or can’t I find some legal expanses that will offset at least part of it?
There are a lot of solutions to this problem, from careful work with a pen and paper, logging each expense to software that works on your computer to a couple very slick online solutions.
Paper and Pencil:
For many of us, you just can’t beat the old pen and pencil when it comes to keeping track of your finances. here’s my recommendation. Dome Publishing has been in this business for close to 50 years, they know how to provide good value, they know which records need to be kept, and they are inexpensive. This book, a personal favorite, is under $5.00 brand new … surely your personal budget is worth that much organization.
The most experienced in the business
On Your Own Computer:
Here’s apiece of software I have come to find invaluable. It sits right on your own personal computer (no worries about Internet security), runs on PC’s, Linux and Macintoshes and comes for the whopping price of Zero dollars and zero cents. There is a cost, though, the author requires that as a condition to using his software, you have to care. Sounds pretty reasonable to me. You might also spend a little time on the author (Paul Lutus’) site. He can clue you in on interesting questions such as ‘Why is the sky dark at night?’ (think you know? … I’ll bet you don’t). Anyway the software is light, fast, efficient and totally free, so one simple download and there will no longer be a reason to ‘not know’ where your money went.
Online:
Here are two slick, web 2.0 style applications you can use totally free. Both will
track your bank balances, keep personal and small business-related records and in general bring you into the 21st century with a smile on your face. Free to try and free to use. Outright.com And one a little more oriented to personal use only. Mint
Popularity: 9% [?]
Make Money In The Philippines — Doesn’t Matter Where You Live
Usually I write about business in the Philippines and making money in the Philippines on Fridays and/or Saturdays, but this one has a short lead time … it’s an opportunity that will be gone by Friday. Will you look at this and say, “Yeah, right , Dave” and then move on to something else? … or will you take advantage of professional education to teach you about something that you can earn from, at no risk, whatever your nationality and wherever you live.
If you prefer a J.O.B. (Just Over Broke) way of life, this is not for you … but if you want to learn how the big boys do it, join in … the entire cost is you giving up an hour of watching TV drivel or playing on your Facebook page for yet another hour … we all can afford an hour less of that stuff.
There is nothing like ‘free’ to catch my attention. What about yours?
After the word ‘free’ catches my eye, I then look to see what what the source is … and when it’s Trump University, I generally take advantage and see what ‘the Donald’ has to say. (by the way, Donald Trump is bullish on the Philippines, I’ve written about it here before) Stop chasing imaginary dreams and thinking of reasons why you can’t and instead dig in and make your own future.
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Popularity: 19% [?]
If It’s Friday This Must Be About Philippine Business
A few weeks back I set myself a goal of not only writing regularly every week day here at PhilFAQS, where you get the answers to the common questions about living in the Philippines, but also to be more organized. So far I give myself a score of perhaps C- or D+, and this coming week is unlikely to get much better, because I am off to our new agriculture venture in Zambales for another couple days. It’s not that I couldn’t blog physically there, even our farm out in the boondocks (how many of you know that was a Filipino words, one of the few that has made it into common American English usage?) has wireless DSL available ,,, but I digress. It’s more of a case of not having time.
Actually, I have time … the one thing I have that I share absolutely equally with all of you reading here is time. None of us is richer or poorer in time, we all own what we own of time and we can’t get any more of it no matter if we are a high school dropout or hold multiple PhD’s.
It’s how I choose to use the time I have … and right now, in many cases, the bukid is going to have to come first. But today the sun is shining (first real tropical cyclone of the season has blown out to sea), income is trickling in like clockwork (a small clock to be sure, but then again, I am supposed to be retired), did I mention the sun is shining? … and the house is bustling as a visiting sister and her children and the rest of us get ready to go to the hospital in Quezon City to visit a little lady named Isobel (not sure of the spelling yet) our eagerly awaited grand-niece, the first of a whole new generation … born about 16 hours ago.
To be born in May of 2009. What that must be like. What will her bright little eyes have seen in 2072 when she is as old as I am now? You realize that while I am well immersed in the “Information Age”, I can clearly remember when steam trains, not airlines, were the common mode of travel and when to call a neighbor we picked up the handset and asked the operator to “Ring ‘J’, please”. We were on a party line (I still remember the number, Mountain View 8-2187W, and my best friend next door was on 2187J … and this wasn’t out in the boondocks, either, it was in suburban New Jersey almost in sight of the Empire State building in the distance. How far we have come. It’s fascinating to contemplate, isn’t it? I wish that little girl a lot of good things, but one thing I am not yet sure of is wishing her what passes for a conventional education in today’s world and that somewhat archaic thing we call a ‘job’ in today’s world.
One of the things that depresses me from time to time is to look at the search terms that bring new visitors to this site. “Job for Americans in the Philippines” outnumbers all the other search terms by a long chalk. Why does this depress me? Because it’s exactly the same in my mind as people looking for information on telephone party lines … a way of life and a ‘technology’, if you will, that is dying, if not dead.
A while back I read an interesting report on a fellow who was regarded as a scientific genius. A major appliance maker hired him as a consultant to their marketing and engineering departments. His first task was to advise them on what features to focus on for future improvements in their extensive line of refrigerators and freezers. They were, of course, thinking on their own about “advances’” like better door seals, more efficient motors, better energy efficiency by things like computerized refrigeration controllers … things anyone who has ever owned a refrigerator might think about if the spirit moved them.
The consultant’s answer? “None of the above”. “If you want to position yourself for the future you shouldn’t be pursuing better ways of building better versions of boxes that keep food cold (which is after all, technology from the 1800’s). Instead you should be focusing on skipping a whole generation of technology. Let you competitors focus on how for save a Watt or two of power consumed, or build a more ergometric door handle. For your next business idea you should be concentrating on biotics, irradiation and other means of preserving food without refrigeration at all. Don’t play follow the leader, leap into the real future”.
I don’t think my scientific hero stayed on very long in that consulting role. I if your granddad delivered ice for a living (my dad did, by the way, blocks of ice from an insulted wagon), and your dad was on the team that moved the condenser coil from the top of the box to the back, and you designed a little vacuum pump interface that ‘sucks’ the freezer door closed tight automatically … can you focus on anything aside from refrigerators?
Well man has been around for about 125,000 years and using cold in a box (wither mechanical refrigeration or natural ice cooling) has only been around for about 1/10th or one percent of that time, so obviously a “whole lot of life” happened without refrigerators and it’s also quite likely that sometime in the future we’ll look back and wonder why everyone used to have those funny humming boxes in the corner of their kitchen.
I write here frequently, as well as on some of my other sites, (like www.retiredpay.,com) about why you seriously do not need a job to make a living in the Philippines.
But who reads these articles? I don’t know. Sometimes I think that the level of reading comprehension of the average ‘Net surfer just too low to even make it out of elementary school … sounds pejorative, but then when I write, research and write some more to try to show people why they:
- Don’t need a job to make a living in the Philippines
- And why they don’t really want a job here in the Philippines
No matter what I write it just seems that people don’t want to hear it … I write, they say they read, but they just write me privately or else search incessantly with Google for “foreigner jobs in the Philippines”. I guess I am just by no means as good a writer as I would like to be … I prefer to try to show people how they don’t need a refrigerator with coil on the top or a regular old ‘report in to the boss every morning” J-O-B. But then again, maybe I’m wrong … what do you think?
Popularity: 20% [?]
Gone to the Hogs in the Philippines
My posting schedule is a little “off” this week because I was in Manila for two days and had a little adventure, reaffirmed some old friendships and learned a lot about doing business in the Philippines.
Since Fridays are usually the day I write about business in the Philippines, you can consider this your regular Friday offering … subtitled “Business in the Philippines is Going to the Hogs”.
Going to the hogs? Yep, one of the things the lovely Unofficial Cook and I did while we were in Manila is attend the 18th Annual Hog Convention at the quite impressive Philippine World Trade Center Exhibition Hall in Pasay City, Metro Manila (right on the shore of Manila bay, near the US Embassy and the SM Mall of Asia).
We originally thought about going to this show because we own a small piece of property in Zambales (north of Manila along the costs, just above Subic Bay) that is being rather ineffectively used for rice production. In the future we may build a home there, and we want to explore the possibilities for making the land more productive, now and later.
This show, sponsored by the NATIONAL FEDERATION OF HOG FARMERS, INC. was not as much about pigs as it was about business, and especially teaching Filipinos to think outside the box that has been created that tags the Philippines as a third-world, “it can’t be done” nation. I was very favorably impressed.
Now a number of you who read this, especially those who are ‘casting about” for business ideas and ways to earn money in the Philippines are likely hovering over the “back arrow” as you read this, because for certain, raising pigs is not everyone’s cup of tea. And that’s fine. But read on just a few more paragraphs and you will perhaps see why I was impressed.
- Agriculture has one of the greatest potentials for growth in the Philippines.
- There is a heck of a lot more to the hog business than raising backyard pigs.
- There are a lot of foreign investors who even send their sales force to the Philippines trying to find people who want to earn money in sound businesses (production of pre-sold pedigreed stock is just one example). These folks don’t consider the Philippines third-world or second-class in any way.
- A number of foreign exhibitor were selling what was essentially simple data services. Data processing is an essential part of ‘growing’ ag business (or any business) and the many talented Filipinos out there in the computer science world seem to be hiding from success.
- The US Department of Agriculture provides a lot of direct aid to the Philippines … text books, seminars, consulting services. US folks seeking information from them … such as someone trying to help relatives set up an agricultural venture are almost unknown … nice folks at the USDA and the USAID, a valuable asset I didn’t even know I was paying for.
- As in the US, there is a lot of money in trade shows. By my actual count, and looking at the prices for booths and sponsorships, my educated guess is the Hog Federation cleared $100,000 to $200,000 USD on this event. Not pad pay for three days.
Anyway, that’s one of the the things that kept us busy last week … learned a lot, met some great people and got lot of technical materials and new ideas to try out. Have you attended any trade shows on businesses you are interested in … in your home country or living here in the Philippines?
Popularity: 19% [?]
Philippine (or US) Business You Can Do — Watch Videos
I’ve written quite a few articles about using the combination of the Internet and video to make or expand a business. This can certainly work for you in the US or in the Philippines or when dividing one’s time between two countries, as many of my readers want to do.
One thing there is a demand for … as in people buy … is home or business security and monitoring. In particular there is a market connected with the Philippines for three categories of folks that come to mind immediately:
- Folks who have a house or business in the Philippines, but want to travel for days, weeks or months at a time.
- Folks who leave a house or business behind in the US or other home country and want a way to keep a ‘virtual eye’ on their property while they are in the Philippines.
- Filipino residents, especially businessmen or women with property or businesses in different parts of the Philippines who want a ‘virtual security guard"’.
The business plan? Simple. Either provide the equipment, hookups and training for any of these potential clients whom you decide to target and let them arrange their own monitoring. To many of you this may sound foolish, because if you can do it (and you probably can. if you know enough Internet and computer technology to be reading this post, you can learn easily), then why wouldn’t the potential clients do it themselves?
Well the reason people will pay for the service is the same reason people will pay for snowplows to clear their driveways, janitors to clean their offices, mechanics to change the oil in their cars, etc. They value their time doing something else or they would rather someone else get their hands dirty.
The other way I see a huge opportunity here is that there are thousands of potential clients in the US, the Philippines and other countries who just want someone to watch and call the police if things go wrong. There are dozens if not hundreds of companies in the YS making a good business from this need. If you are already living in the Philippines or are able to set something up here, you are miles ahead of any company who pays ‘screen watchers’ in the US. You can set up a monitoring station here for systems you sell yourself, or outsource yourself to companies already in the business in the US. Hey, after all, people are already operating call centers just to take orders ay McDonalds drive thru windows, this job is simpler.
The last time I suggested something along this line there was a bit of discussion regarding liability and bandwidth, Let me address both those issues briefly:
- Liability: I may be naive, but I see no large liability issues here. The service will always be provided on a ‘best effort’ basis. In my last consulting job back in the US I worked a security contract with a top US form to monitor our software development and server facility. Believe me, they were responsible;le for nothing except doing their job to the best of their ability. All you need is a good lawyer to write you a tight contract (remember, I am not a lawyer and you need a lawyer for legal advice) … and for many of us who live here in the Philippines, what is anyone going to be able to sue us for, anyway?
- Bandwidth: As soon as you mention video many people get up in arms about server loads, time for windows to open, etc. Many of these concerns are valid, but only if you do video ‘wrong’. When I talk about monitoring surveillance cameras and other alarms at a customer’s premise, such as motion sensors, window or door switches and such. I am talking about:
- Having a DVR (Digital Video Recorder … Tivo is a common brand name but there are much cheaper Tivo substitutes out there) that spools the video to disk, on site. There is no reason for ‘full period’ video to ever have to cross the ‘net to your monitoring computer unless and until an ‘event’ occurs at the client’s site.
- There are many different security management software packages out there that will slow down the frames per second from cameras until something in the field of view changes, manage multiple cameras on one screen, and so on. Google is your friend.
So, there’s some thoughts for making a business today, prompted by this video of a real world housebreaking, caught by the owner who was monitoring remotely over the internet and simply called the police when she saw the intruder. The video doesn’t make it clear but the report I read said the police arrived in time to catch the perpetrators in the act … thus not only was the lady’s property protected, but two nasty customers won’t be breaking into your house or mine. Video monitoring works.
Popularity: 11% [?]
World Class Philippine Publicity — Free
On Fridays I try to present ideas and/or commentary on business in the Philippines and business ideas you might use wherever you live, in preparation for a move to the Philippines or just as a way to free yourself from the current US phobia about jobs. If you have a job and you like it, great. (you are in a very small population of people world-wide who like their jobs, but if you enjoy being paid about one third of what you are worth to your company, then great. For the rest of you, the ones who hate their jobs, don’t get paid enough to support their families, or who have lost their jobs …, take heart. There has never been a better time to strike out on your own, and yes, indeed you can. Even though the US and now many other developed countries are throwing massive amounts of money down the rat hole of propping up ‘buggy whip’ or mismanaged businesses, instead of working to create business and wealth, take heart. It doesn’t matter. You can do it, and the only permission you need is your own.
In case you weren’t really sure if claims that the Internet are magic are true or just hype, take a look at this:
Calling all entrepreneurs – introducing PitchTV
When I was starting out, I wish I could have had the chance to pitch my business ideas directly to people who could help make my ambitions a reality. We can now make that happen for you, on this very blog…!
If you’re a budding entrepreneur, we’re giving you the unique opportunity of getting your ideas heard not only by the online community here but also by top business professionals from around the world watching the in-flight entertainment on board Virgin Atlantic planes.
All you have to do is film yourself delivering the very best pitch possible, but make sure it’s no longer than 2 minutes. Then simply upload your video pitch here.
For those who don’t have time to follow the link, this is a service free service form Richard Branson. Yes, the entrepreneur who starts and builds airlines when no one else can, and who owns about 400 businesses around the world. As i was writing this article, my feed reader sent me this link to friend Ellen’s website (Ellen, for those who don’t know her is a Filipino based in Davao who is a lot like many other Filipinos, except for one unique fact … she has never started a single sentence to me with the phrase “If Only”. How refreshing. Anyway, you might want to look at Ellen’s bog and her nascent efforts to start a profitable condominium project there in Davao. In addition to a very informative web site for the project she has also started to use another free business tool like Sir Richard’s tool i started writing about here … YouTube.
YouTube a business tool? You better believe it. Got a business you want to start? or maybe an idea you want to test to see if there are enough people interested in your idea? Put together an “elevator pitch’ and upload it to YouTube and to Branson’s service too … be sure you include an easy way to let people contact you … like a US call in number via Skype (now the world’s single largest carrier of international calls, wow) or Skype’s competitors , promote the videos through free sources like blogs, Facebook, Multiply, etc. and see what interest there is.
One ‘sign off’ thought. This will help anyone with any sort of business idea. before you even work on boring, but necessary things like business plans, market research and such … make an “elevator pitch” for your idea. The term refers to a salesman making a pitch to a potential client during the two minutes or less they might spend together on an elevator. Forget all the stuff about “our company is so wonderful” and “our staff is the most experienced” and the other unadulterated crappola that so many business briefings consist of and just state: Our Company Provides the answer to this business need, and by using our answer you will save/make more money because of a,, b., and c.
It’s surprising to me how many people, even those who have been in business for years can’t sum up the benefits of their product in one or two declarative sentences. Do it for your company and you’ll be miles ahead of the pack.
Popularity: 12% [?]
Philippine Business Resources
I write a lot about doing business in the Philippines (or anywhere else you may happen to live) online. The term “online” immediately turns a lot of people off. They start thinking about some of those spammy/scammy “buy my route to success” courses or worse yet, the male enhancement or female enhancement products. Yuk.
Yes, it’s true that technically those bottom feeder folks are working online too, but I focus on ‘real’ business ideas. A lot of people also have this attitude that money online is not ‘real’. I don’t actually comprehend where this thought comes from, but a belief doesn’t have to be based on facts in order for it to seem very real indeed to the person who holds it. All I can say is, I finally finished my taxes today (online, of course) and I wish one of you out there who thinks that online money isn’t real would contact the US IRS and make a case for me … it seems real when you pay taxes on it
Just a couple days back I published an article on teaching conversational English (or any other language you might be competent in) on line. One of the resources I mentioned was a service called Skype. In fact I pointed you to a Skype case study of a high-end English “brick and mortar” school who was expanding (profitably I might add) their services out from their real-world building into the rest of the world using Skype as one of their primary tools.
There are other ways to use the Internet, with or without your computer) to use the Internet as a world-wide free, or very cheap, tool for business communication, but Skype is what I use and it has some tremendous advantages if you are starting from square one. I just came across this article which confirms how big Skype really is in the “real world” now. If you still live with ‘wire based” carriers, or if you are thinking of investing in any of them, think again. Like “dead tree” newspapers, they are last century technology and Voice Over Internet protocol (VOIP) carriers are where it is at, for at least the first part of this century. Doesn’t matter if your need is to chat with family members around the world or to make a business for yourself that will cause you to forget about that antiquated thing called a “job”, VOIP is where it is at and Skype is in the lead:
Skype Tops All in International Calls
By Ryan Singel
March 24, 2009 | 12:29:40 PM
Skype is now the largest provider of international phone calls in the world.
That’s according to telecom research firm Telegeography, which estimates that Skype’s cross-border traffic shot up to 33 billion minutes in 2008, up more than 40% from the year before.
That includes about 25 million minutes of free "Skype-to-Skype" traffic that travels only through internet pipes and doesn’t even go over the traditional telephone network. A little over 8 billion minutes are paid "Skype Out" calls that go from a user’s computer to traditional telephones….
Now that you have communication needs in place, what else is available online that can help you run a business … or even make a business out of “thin air”?
Here’s one tool that a person could make money with right away, especially given the tight job situation in the US. be and online assistant/virtual office staff person and be independent. Work for a number of doctors, dentists, lawyers, service provider firms and drive their business profits higher, while they pay you only a fraction of what they would have to pay and in-office ‘real’ staff member:
This company, Lattiss, essential provides a basic business web site and online appointment and payment service for nay business. It’s priced very low, a completely usable version is actually free. The for pay versions are very little more, on the order of a buck or two per day per business you would serve. Basically Lattiss’s business plan is to sell their service direct to business owners who need it … and what business doesn’t have a need for scheduling appointments, service calls, product demos, classes or even payments?
Their model is working fine, but you also can imagine a., they can’t catch the eye of every business in the world and b., many business owners aren’t going to sign up/set up an account with them. That’s where you come in, my bussing entrepreneur friend, of any nationality, based anywhere.
You approach business (there are millions to chose from, maybe you focus on every business in your home town in the USA to start with). You offer them an online presence, an online appointment system, and online staffer to keep the appointments straight for a very small fraction of what their monthly bill would be for a ‘real’ staffer to do the work, and then you use whatever flavor of Lattiss is best to actually set up the account and keep things rolling. It’s like being a web hosting provider and website developer all rolled into one, except you don’t have to know anything about the technology … all you have to do is stay in touch with your client, and , if appropriate, make those appointment remainder calls that doctors and dentists love so well, mainly because they are proven, real-world money makers. Piece of cake.
OK, there’s enough ideas for one day. Maybe this idea is not for you, but it may open your eyes to something easier and more smart than the old standby of opening an unprofitable Internet cafe or competing with the other 7 sari-sari stores on your block.
My idea here isn’t to deliver a ready to open turn-key business package, but more to stimulate your thoughts. They way I see it, there are two ways to make money in business these days. You can get a job cleaning the toilets in the rest rooms, or you can be the owner of the whole office building. The beauty of moving yourself online is, the investment required is virtually the same … zero or close to it.
I know which one appeals to me the most.
Popularity: 17% [?]
Finding A Philippine Pony — Part 3
To review the bidding (previous installments of this article are listed above) we have been talking about how anyone, with or without a TESOL (Teaching English to Speakers of Other Languages) certificate or a formal teaching degree, can make themselves a business out of conversational English instruction, coaching or tutoring (pick the phrase you want to use if you are convinced only a degreed person can be a teacher … already had that argument, don’t care to go there any more.
Actually you don’t have to confine yourself to English, either. Although the world-wide demand for English is high, many other languages are always in demand as well. Friend and blogging colleague Ellen opened my eyes in a comment to one of the earlier sections of this series, when she talked about a school for the Finnish language in Davao she recently came across. You mean you can make money teaching Finnish to Filipinos in a (modern, but still provincial city) like Davao? Yes, indeed. And think this through for a minute. If Koreans come to the Philippines and pay not only tuition but living expanses to learn English, if Filipinos who want jobs in Finland pay to go to formal classes in Davao, how many more people, around the world, would be interested in learning one-on-one with a native English, (or German or Finnish or whatever language you know well) expert? No travel costs, no away from home living costs, no need to quit their current job to go off to school … the benefits really stack up.
And here’s the point it of ten seems many of my readers miss … you can provide this training anywhere in the world you happen to be. This is especially interesting to the majority of job-seekers, business side researchers who come here with the thought of finding some sort of income when once they move to the Philippines. Don’t wait until your calendar says it’s now time to move … start now. If your business grows and you like it, you can just make the move and virtually nothing changes except the time zone. If, for whatever reason, things don’t work out, you will have invested virtually nothing and you won’t find yourself stranded in a foreign land, money running low and wondering how to get yourself out of your dilemma.
OK, so how would a person go about something like this virtual language training? That’s the beauty if the Web. It’s like having the resources of several major universities at your finger tips. Here’s what I’d do to get something off the ground … remember this is just a rough outline, it’s up to you to get professional advice when you need it and do your own due diligence before you invest in anything. (by the way, nothing at all in this article is a sales pitch for anything, I am not selling anything you see mentioned here.
- Set up a business with a US address. Most professionals agree this is a smart first move. You can incorporate a small business online in 15 minutes for less than $75 dollars. (I’ve used these guys in the past, they are fantastic … not an affiliate link) http://www.smallbiz.com/) One reason to do this for the future, aside from all the other business reasons is when you are living in the Philippines you want to make sure your income is not Philippine sourced and if you are the owner of a US business entirety, this ought to be a safe strategy.
- Put together simple course materials. You can buy study guides, lesson plans, etc., you can find a huge amount of free materials (make sure it is licensed for your use, public domain, Creative Commons, etc>, or you can go to a site like elance and find degreed teachers looking for part time work who will build or edit materials for you for a small fee … you decide how much to spend.
- Put up a website, essentially a blog … you can even start it by telling the story of all the research and decisions that went into your prep work. There are dozens of free blog sources, Blogger, WordPress, MSN Live, Google Sites, the list goers on.
- Do searches to find other language teachers and courses. Note what they are doing, their terms of service, prices, etc., and how they have their business structured (Hint: Competition is not a problem, indeed if you don’t see any competition for what you are trying to set up you should take warning … competition means there is an active market and people are making money.)
- Find a delivery system. Here’s a great one I came across recently, it’s free to try and less than $5 a month per student later with the whole ball of wax … they serve your videos, your slide presentations, track attendance measure progress, alert you to students who have gone dormant, etc.
- Get a PayPal account so your students can pay you, anywhere in the world
- Go to forms, Twitter, FaceBook, Multiply and other social sites and talk to people. Focus on your preferred target country of choice. For example, if you want Japanese clients, ‘talk yourself up’ on Japanese forms and social networks. Remember you don’t have to speak their language, you only want the people there who are interested in English. Believe me, people in Japan, China, etc. want English speaking friends.
- Perhaps one of the most powerful and least understood “drivers” of business on the Internet is Google AdWords. You can open an AdWords account, write some ads that will send people to your blog or home page … where you offer your “for pay” services, and target those ads only at countries you want them to appear in … and you pay nothing at all unless someone clicks on the ad and comes to your sales page … fantastically powerful tool.
OK, that ought to be enough for this “Pony”. Remember this is an idea factory, not a textbook. Based on what I know to be true, and what I pay taxes on, I really can not see any reason a person would settle for a “hard labor” job in a school when they could have the whole ball of wax for themselves. Or so Dave opines.
Popularity: 17% [?]
There’s a Philippine Pony In There Somewhere
Table of contents for Philippine Pony
- There’s a Philippine Pony In There Somewhere
- Finding A Philippine Pony — Part 1
- Finding A Philippine Pony — Part 2
If you are old enough to remember Ronald Reagan’s speeches (and whatever your thoughts of him as a president (no political comments, please, I’ll delete them all) as a speaker Reagan makes the incumbent look like the boring college professor he is) you’ll likely remember this story:
It was Reagan’s favorite joke. Worried that their son was too optimistic, the parents of a little boy took him to a psychiatrist. Trying to dampen the boy’s spirits, the psychiatrist showed him into a room piled high with nothing but horse manure. Yet instead of displaying distaste, the little boy clambered to the top of the pile, dropped to all fours, and began digging.
“What do you think you’re doing?” the psychiatrist asked.
“With all this manure,” the little boy replied, beaming, “there must be a pony in here somewhere.”
I also heard this old “chestnut” dozens of time from some of my senior colonel and general officer leadership in the USAF, it certainly predates Reagan (I go back to Truman, you know). What does the little parable have to do with living in the Philippines? Read more
Popularity: 24% [?]
It Can Be Done In The Philippines Continues 2
Table of contents for It Can Be Done
- It Can Be Done
- It Can Be Done —Part 2
- It Can Be Done In The Philippines Continues
- It Can Be Done In The Philippines Continues 2
- It Can Be Done in the Philippines Continues — 3
Gosh am I on a Living in the Philippines roll here, or what? I was doing some checking into the fellow who owns the two apartment complexes I wrote about recently (he’s still not set up for an interview and feature here, but I’ll keep trying) I found out that the project currently under construction isn’t his second project, it’s building number three. Here’s a snap of the very first project, located right behind his home, right around the corner from me in our little “part-time-water” community.

The Original Mukti-unit success
The way the story was told to me, he had a grown son thinking about moving out, so rather than let the son move off to the wilds of Manila, the father built this three door complex on the side street behind the main home, and the son can live in one unit, collect the rents on the others and if the son really does decide to move up scale some day, he’ll collect on all three. Not shabby. Read more
Popularity: 24% [?]
It Can Be Done In The Philippines Continues
Table of contents for It Can Be Done
- It Can Be Done
- It Can Be Done —Part 2
- It Can Be Done In The Philippines Continues
- It Can Be Done In The Philippines Continues 2
- It Can Be Done in the Philippines Continues — 3
My friend Bob started this thread, actually, on his Living in the Philippines web magazine site, when he talked about ideas of things he could invest in now that would be there in the future as something for a family legacy.
I’ve written about this several times already and while I was out walking yesterday I snapped a picture of the progress on the new townhouse/apartment project I have been following nor for a while … owned by the same fellow who put up the complex I first wrote about a few months back.

Wall Down, Working on Parking Spots
I don’t know yet how much these units are going to go for … as far as I know they are going to be straight rentals and not being sold as condos, but I feel the project definitely enhances my neighborhood.
And in spite of all the hugely overblown news you hear about a “lending crunch”, the banks here in the Philippines are really going after business and home owner loans.
Interest rates and terms are not quite what Americans have grown used to over the past 20 years .. 15 to 20 years are typically the longest and you can expect to pay 12% or so, but then again, mortgages at artificially low rates on property at vastly over-estimated vales are a large part of what got the US in the current mess anyway.
By the way, for those of you from the US who might contemplate something like this now or in the future (of course I am not a tax professional, you should consult your own), according to my readings and to some other research I have done, the IRS does not care where your primary or secondary home is located … you still get homeowner tax breaks even if the property is in the Philippines.
Also, if you build something like this as an investment, I see no reason you don’t get all the normal tax breaks any other investor/property owner gets … including reasonable and necessary expenses to visit your income producing property, taxes, fees, and of course a credit for the Philippine tax which you would certainly be liable for.
Providing decent homes for people who need them and building a solid investment portfolio for your children (no ‘toxic paper” or up and down like a yoyo mutual funds) can not be an all bad thing to do.
Popularity: 22% [?]
Philippine IT Job List — What Do You Think?
I just came across this excellent tool for finding IT-related jobs in the US the other day. While the news media and everybody and his dog are blatting on and on about unemployment and jobs losses, here’s one fellow who just decided to go out there and find out how bad things really are.
Turns out that there is still some light around the edges of the eclipse, I think.
Now I see many of my readers puzzling over two things about this post already, so let me take a stab at addressing them:
First, I hear people asking, whatever has this got to do with living in the Philippines? Fair enough question. I’ll answer it in a couple paragraphs if you can hold on to the bar at the back of the Jeepney for just a few more minutes
Second I hear people saying, “But Dave. I don’t know anything about IT or computers or the web so how is this going to help me?”
Let me propose this idea to you, straight from the shoulder. We are in a mess. It has so far affected the Philippines less than the US, but as I wrote a few days ago, Jobs For Americans Overseas in the Philippines | PhilFAQS I see plenty signs of it getting worse here rather than better, for a while anyway. Read more
Popularity: 25% [?]
Philippine Things To Do
It’s almost that time again. Starting Thursday the 12th of February 2009 the 14th Annual Philippine Balloon fest will kick off at the former “Clark Field”, now the Clark Special Economic Zone. The official Philippine Balloon Fest schedule is here. I attended this event two years ago and it was great, looking at the schedule there is more added every year so I can assure you this would be worth at least one “early rising” day of the four day event. I mention early rising because the balloons will be taking off by 0530 or so, so unless you live close by, you’ll ne leaving at 4 am or so.
To reach the event from Manila, take the NLEX to the last toll barrier, Dau, and take the Dau exit immediately beyond the toll barrier. Turn left (west, toward the mountains) and follow the signs. There’s a small entry fee … perhaps 100 pesos this year and a huge parking filed (IIRC the parking is an additional 20 Pesos or so.

Hot Air Balloons at Clark
There is a lot more to the even than the balloons, but hot air balloons are totally u8nder the control of the winds so the still air at sunrise is typically the only time they will be able to fly. Lots of food, drink and static exhibits to occupy your day if you like anything to do with aviation, including booths and displays from all the major aviation training companies (a real growth industry here in the Philippines at the moment), so you can get information from many suppliers in one place … something it is not always easy to do in the Philippines.
If you don’t like 0-dark-hundred departure times, many people prefer to stay over at least one night I one of the many hotels on Clark or in surrounding Angeles City here’s a list of Angles hotels,
I was reminded to give a shout out about this event on Sunday when I was watching a show on ANC (the Philippine Channel that goes out world-wide over satellite and cable) called Asian Air Safari. This is a weekly half hour show that is put together by a great “booster” of the Philippines, Captain Joy Roa. Capt. Joy learned to fly in the Philippines and could just make a living in obscurity, or else just run off to some other country where it’s easier to make money, but he’s a true Filipino hero and he does things others will just say “can’t be done”.
Not only does he make a successful TV show out of airplanes and travel … no telesere drama or semi-obligatory T&A shots needed, he runs a business venture of the same name, Asian Air Safaris who offer high end structured and customized tours around the Philippines and many other Asian countries. “You can’t build and run a high end business in the Philippines” is the kind of opinion you’ll hear all the time on web sites about the Philippines. Or even more common, “all the high end businesses are foreigner developed/managed, Filipinos can’t build or manage a ‘real’ business”.
Well you can believe that sort of clap trap if you wish to 9and even many Filipinos feel that way too, sadly) but guys like Capt. Joy prove how wrong those attitudes are.
There’s a lot of opportunity here in the Philippines, most of it just needs someone to believe in themselves and their country.
Popularity: 29% [?]
Philippine Business Above the Internet Cafe Level
Starting a business in the Philippines is a frequent topic here on PhilFAQS where we cover the Frequently Asked Questions (FAQS) about living in the Philippines.
I saw this business (Harbour Yacht Services) featured on TV the other night and it really resonated with me in many different ways. Read more
Popularity: 27% [?]
Why You Can’t Get a Job — Interview Prep
I wanted to write more on proving your actual worth to a company … rather than telling them how smart you are, or how much you need a job … and I will. But I saw this very good article today and I felt it was too good fto pass up, becuase the author says alot of what I would say and says it beter.
One tip I see misisng that I personally belive in is “LinkShare”. There are thousands of folks on LinkShare.com with Filipino connectuions and hundreds of businesses. At the very least, learn what a business does before you even make your first contact. Nothing will make you look less valauble than to ask someone “Are you looking for engineers”? when they turn out to be a firm that does contract radiology work … little things like that do matter.
One of the more impressive resume’s I ever saw back in my hiring days was from a programmer answering and ad which specically called for a Visual Basic expert. In his cover letter the gentleman had me sold until I got to his last paragraph when he asserted that not only did he not work in Visual Basic he told us, in no uncertain terms that we were dumb to be using it as well.
Hey when a client pays you to hire VB programmers, you hire VB programmers … let the knowledgeable ones argue about what system is best after work in the bar … it’s amazing how many people want a job but also want to tell their prospective employer how the employer should do business … instant disqualification in my book. Read more
Popularity: 43% [?]
Philippine Business Must Be Doing Very Well
Well for those of you who hate posts about making a living in the Philippines, especially making a living in the Philippines on line, or supplemented by the online world, this will likely be another post you don’t enjoy. Sorry about that, I write when I’m “in the mood” and this is what I’m “Moody” about today.
If you think I’m somewhat unidimensional from the impression you have of me, you ought to see the view from inside my head … it’s absolutely flat as a billiard table from inside here at times.
It’s really hard for me to believe how many people make a living without the power of the ‘Net in today’s world, and it’s even more of a surprise to see those who succeed do so in spite of their on-line efforts rather than becuase of them.
If you feel you’ll never be doing anything to make money online in your life, that’s ok, read along, becuase for sure you’ll run into a friend or relative here in the Philippines who does want to and I’m going to reveal a couple of elemental truths that everyone can use.
I’ve been having a discussion with several online associates about the importance of responding to people on the web, and I recently had a prime example when someone whose site I had featured in a write up here on PhilFAQS months ago left me a comment.
Now the fact it took that person months to respond is neither here nor there. I’m not writing because my nose is out of joint about not getting instant gratification. I wrote about a lot of people and sites who never respond … that’s almost the norm … and the fact it is almost the norm is what today’s message is about.
Here’s the bottom line suggestion I have for anyone interested in people, money or both: Read more
Popularity: 11% [?]
Philippine Submarines — Making Money Underwater
There’s more to Subic than just blue water and white sands. To many readers the term “Freeport” probably means little, just some sort of marketing-speak, but in the Philippines, it means a lot.
The Philippines has a very bad environment for starting a business. It’s one of the worst countries in the world for registering a business and getting all the permits and permissions in place.
But the Special Economic Zones, like Clark and Subic change all that. It seems almost every day I see something new getting started at Subic and here’s one idea that seems to hold water.
SUBIC BAY FREE PORT— It looks and moves like an aircraft, but it can also dive underwater.
The Amuza “leisure submarine,” a two-seater vessel the size of a compact car, may soon be built by a Japanese firm in this free port with the help of a Filipino-British car body-parts maker.
Subic Bay Metropolitan Authority (SBMA) administrator Armand Arreza said a prototype of the submersible was successfully tested last week in the waters of Subic Bay.
Submarine builder Amuza Co. Ltd., which first gained popularity for its limousines, wants to start building about 10 production models by the end of the year. The company has been developing the prototype for the last 10 years and has spent about $1.7 million for the project, said Amuza chief executive officer Kiyotaka Miyagawa.
These macines will be battery and electric motor-powered, good for about 5 knots underwater and will have a range of 40 kilometers or so. No word on price.
The company in charge of the prohect, Amuza has a long histoty of building some very well operating on-ground vehicles, like this one … they are the premier luxury limosine company in Asai with factories in japan, Australia and other countries.
There will be a full factory ‘pilot’ training and certification school at Subic that new ownrs will be required to attend … don’t think I can afford one, but I want one. More jobs and more business in the Philippines … they say you can’t make money here.
Popularity: 45% [?]
Do You Feel “Philippines Lucky”?
OK, show of hands here. How many of you have ever bought a Lotto ticket or purchased a ‘Scratch and Win” ticket at your local convenience store? Aha, a lot of hands went up, didn’t they?
Many of us, even those pretty much opposed to gambling and casinos and such participate in the government sponsored lottery programs in the US because in addition to the (infinitesimally small) chance of winning the games serve as an important revenue source to a lot of valuable programs.
A pundit once quipped that Lotto games are a tax for people with bad math skills, but who cares? They can be fun and it’s only a dollar or two, so why not?
In the Philippines government has wasted no time getting in on these programs.
Here’s a business idea for making money in the Philippines that doesn’t involve the Internet for a change. If you have ever been around one of the mall kiosks or terminals in stores where they sell the whole line of Sweepstakes Lottery products when the prizes are big you have seen lines and line sof people, cash in hand, just waiting to get a chance to buy a ticket.
A franchise outlet for this product starts at PhP 50,000 or so .. about $1,000 USD give or take, and the clients do all the work except make change and carry the money to the bank. More information at the headquarters site.
I have no idea what the overall profit potential can be but I know it’s a simple, self-contained government approved, easy to understand business that is certaily worth loking into … especially for people inclined toward operating a store, Intent cafe, etc., anything where you are going to have foor traffic and a roof over your head anyway.
Once again, you can make money in the Philippines, if you actually want to.
Popularity: 8% [?]
Saving Energy for Practical People — 6
First of all, let me state this is not a picture of our "dirty kitchen" here in the Philippines. But it might be someday,
though. Probably not, but one of the things my lovely wife and I have discussed at some length is smarter ways to make ourselves more energy independent. The idea of making our own fuel from what is otherwise going to waste is attractive. Diesel fuel from waste cooking oil is a very "trendy" item in these days of $4 gas.
In addition to using waste oil diesel for automotive use, we’ve talked already a few times here about people who want to live off grid and of course one possible solution for that kind of lifestyle would be to simply have your own diesel powered home generator … be your own power company.
If you buy your diesel fuel for a setup like that in today’s environment here in the Philippines you’ll find the numbers don’t work out at all … in other words if I replaced my 500 or 600 Kwh per month of commercial power with power from my own diesel gen set (a diesel engine and an alternator that puts out 220V 60 hz power) I would spend about five time my current bill to Meralco. If I used a cheaper, lighter gasoline gen set it would be closer to six or seven times as expensive,so I think that idea is pretty much a non-starter.
But if my fuel costs were zero … wow, it suddenly becomes a very practical sounding proposition, doesn’t it? Truth be told, it can certainly be done, and for some people it might be something worth pursuing. However, first I’d suggest you read this Wired.com article on the state of the current cooking oil diesel fuel community. This article covers the nuts and bolts of how the technology works and does a much more through job than I can. After you’ve read it I’ll summarize what I feel are some important points about this home brewed biodiesel here in the Philippines.
Pros:
- In spite of the messiness factors involved, this will work.
- It’s simpler than it may appear once you get things set up
- It’s likely to be simpler and work better here because many of the tricky problems in making a good quality fuel are related to the climate … here it’s always hot so glycerine, waxiness problems and such are minimized
- There is a lot less regulation in semi-urban and rural areas. If you want to, just do it (YMMV)
- Labor is cheap
- "junk" is big business here. There are "bote boys" passing multiple times per day, asking for glass bottles, plastic trash, metal cans, scrap, newspapers, etc. They earn their living selling their daily finds to "junk shops". It would be very simple to have a number of these guys collecting waste cooking oil and delivering it to your processing plant.
Cons:
- Of course, comma, what people say is "free" now has the price they paid to the origin plus their markup that you paid for their work, plus containers, and so on added in … still cheap, but virtually nothing is "free". And prices go up and down rapidly depending on supply and demand. Right now, in my area, no one collects. A soon as there is any demand, expect a price to develop. Remember, a hundred years ago, refineries could not give gasoline away.
- The physical plant is simple, but again not free. And the process takes time. It has to be worked, day in and day out.
- This is stinky, slimy, and poses a significant fire hazard in a country where most neighborhoods have virtually zero fire protection. Is saving money worth burning up your house and maybe your children? Look at the flammable slime on the floor and walls in the picture.
- You need a lot of caustic soda (lye) … Drano for example. Where does the excess of that get disposed of? Where I live, almost all houses are on septic tanks. Do you know how much lye you can let into your tank before the digestion process stops and you become very good friends with the "Poso Negro" man (Septic tank sucker-outer)?
- If you have make more than you need, what will you do with it. Can you sell fuel legally without a license, regulations, taxes, etc.?
- Motor fuel is highly taxed and regulated. Make your own and you are legally stealing from the government. (don’t bother me with your"live free or die" type arguments, I am talking here about life’s realities, not philosophy). Do they care? Will they come after you? Something to consider.
- There just is no where near enough cooking oil used to support and significant amount of production. Onesy-twosey operations like you always see in magazines are great stories … but can a town sustain 5 such operations, or 10, or 20? This a big fallacy to me, I have seen biodiesel experiments for more than 20 years now, but all the McDonalds, Jollibee’s and KFC’s in the country don’t use that much oil.
Interesting, isn’t it. especially how US media is suddenly "rediscovering" a lot of technology us "hippy types" of the ’60’s were trying to ’sell’ 50 years ago. Let me know what else you want to know about in the energy department.
Popularity: 6% [?]
More Philippine Burger Thoughts
As many readers already know I keep very close tabs on what people search for here at PhilFAQS, the site for people who want to know the FAQS (Frequently Asked Questions) abut moving to and living in the Philippines. If you found this site by a search from Google or one of the other search engines you likely found the first thing you were presented was a list of related posts, along with the entry here that most closely matched your search query.
One "perennial favorite is ‘How to make money with an Internet Cafe", or its close cousin, ‘Can an Internet cafe make money’. Here are just a few samples of the work already published on that subject:
Can an Internet Cafe Make Money in the Philippines?
Real World Business — Running An Internet Cafe — Part 1
FWIW you could make money with an Internet cafe in many places in the Philippines, but it feel it is something that should be way down on most people’s list, especially for foreigners. It’s more competitive every day, operators accept profits margins that are razor thin a sit is, and the people with disposable income who sued to make up the crowd of customers today are much more interested in the iPhone and similar hand held devices where they get their Internet along with their text messages, MP3 music and even live television in metro areas. A person from the US, for example, knows virtually nothing about the wireless world here, the US is so far behind in what people used to call cellular phones that they think they’re ahead
.
One thing people people from the US do know smelting about, though, is hamburgers. I published an article a while back about the little-known business of burgers here that seemed to be popular with a lot of readers. One franchise operation that is very popular here in Luzon, at least, is "Burger Machine". these little free-standing kiosks are seen frequently (the most usual location is along main roads where there are bars and night clubs, I think a large part of their trade is the pulutan (drinking food) crowd.
These businesses are usually on a trailer. They don’t often move, but because they aren’t on a foundation they fall under "hawker" and street vendor regulations in most cites, making licensing and permits much easier to obtain and keep up to date. The common prices are from 30 pesos and up, and as you can see from the sign, Buy One take One deals are the norm. Could you make money at approximately 15 pesos per hamburger then? Well you must be able to, I just did some looking and found there are more than 89 of these trailers in Quezon City alone and the article I found that data in was about the city government engaged in a legal wrangle with the parent company alleging there were many more than the 89 permitted locations which were operating outside the law. That’s a lot of burgers. (photo courtesy of the Unofficial Cook, used with permission).
On a higher end scale, I visit the Subic bay Freeport frequently, (the former Subic Bay US
Navy base). It’s a place that is always looking for new businesses, in addition to many other ’start a business’ assistance tools they have a pretty neat inducement … all business on Subic pay only a flat 5% tax on gross revenues,
no ups, no extras, no roving ‘city inspectors’ with their hands out. Burger-related business there range from purpose-built to one of may favorite ‘real’ burger joints, Meats Plus, where the dare is relatively pricey imported Angus beef burgers, charcoal grilled. The customers are mainly Filipino and you had best not show up for a burger ![]()
at noon time, you’ll park a long way from the building and wait in a heck of a long line.
I’ll close with a place I walk or drive buy almost every day. I must stop in and try them out. It’s just a small storefront operation and you can see that the prices are well within Filipino tastes … it’s been there for years and sells a lot of burgers. My wife is aquatinted with a lady a few blocks in the opposite direction who retired from a Philippine government job some years back and opened a similar little cafe/burger joint. She only opens a few hours a day in the evening for the dinner trade and even though her prices start 21 pesos she has been doing ok for years now.
So a couple things you can take away from this is, yes, Filipinos do eat burgers and yes you can make money with a cafe in the Philippines … but I’d forget about the "Internet" part of the cafe equation myself.
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A Lot Depends Upon Whose Ox Is Being Gored
Interesting news item that flowed across my desk today:
LATE-NIGHT calls to one of the State’s main directory inquiry services are being answered from the Philippines after the company that operates the service, Conduit, outsourced the night shift to a call centre in Manila.
The move involves the loss of 10 jobs in Conduit’s Dublin headquarters and has prompted fears among the 120 staff working on the day shift of the 11850 directory inquiry service that their jobs could also be transferred to southeast Asia. The night-shift workers, some of whom have up to 10 years’ service, are being laid off later this month. Staff say that they have been offered a redundancy package of two weeks per year of service plus the statutory minimum.
Conduit switched the answering of directory inquiry calls between 10pm and 7am to Manila last June on a trial basis, and recently decided to make the new arrangement permanent.
KGB, a large US call centre operation that owns Conduit, runs a call centre in the Philippine capital employing 3,000 people. Wages in such call centres are typically about $2-$3 an hour, much less than the rates paid to Irish call centre employees… More of the article on Irish call center workers here.
Couple of interesting points, not all of which are readily apparent on first reading.
- This same article, with different details was written in some US paper or another a few years back when the company which is now KGB (no, not the same as the former USSR Secret Service
) "stole" the jobs from the US and shipped them to Ireland, because the Irish workers would do the work for a lot less than the US workers. Did someone just whisper the word "karma" under their breath? - Those who are blindly investing billions in one call center after another here in the Philippines might want to consider who is going to undercut Philippine Call Center prices. It will certainly happen. Actually, few if any call center employees in Manila are working for $3 an hour as the Irish article suggests, wages have been climbing steadily in pace with demand.
- The blind spending of my own countrymen, still buying Hummers and other gas guzzler’s comes home to roost in mysterious ways. the jobs mentioned, and many, many others are no longer American jobs or Irish jobs but they have become the ‘property’ of KGB. The own of property can essentially do anything that he wishes with it, and KGB is a Bahraini company. It’s not the Irish or the Indians or Malaysians or the Filipinos who are "stealing" American jobs, it’s the oil princes who have them pressed into their hands as tribute every time Americans prostrate themselves toward Mecca and offer tribute at the pump.
- Last item I found worth a chuckle. In spite off all the paragraphs in the article bemoaning the poor folks who lost their jobs … actually none did. ten were asked two change their shift because of cut backs. Two did and eight others said, "I’d prefer my severance package" and departed. Somehow I think a person who actually had no job might consider being asked to move to a different shift a little less life-changing than these folks did … but then again, it wasn’t me.
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