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.
- It is foreigner-owned but it provides a lot of employment to Filipinos (and not just in low-pay grunt labor jobs, many of the skilled tradesmen, designers and engineers are Filipinos)
- It is my favorite kind of “sow’s ear = silk purse” sort of operation. Their basic business plan is to buy old, worn out, unwanted working boats around the world and completely transforming them into truly world class luxury works of mechanical art.
- The “raw stock’ they start with would have otherwise gone to the scrap yard or rusted at anchor for years. Instead the environment only had to “pay” for these yachts once .. when they were built for their original work duties. Now, in their end years they provide enjoyment ay much lower environmental ‘cost’ than most “rich man’s toys”.
- In the world where these luxury yachts operate the costs I heard quoted were amazing … the finished products sell for far less than a similar sized boat constructed today … an din may cases you really couldn’t buy a boat that well built from any pleasure yacht manufacturer.
- The whole operation points up something I have mentioned several times here before. The “Freeport Zones” are more than just a “buzzword” name for former US vases. Businesses are far easier to set up there, foreigners can own businesses and the tax and import/export customs hurdles are ever so much lower.
Sailing imto the sunset, Philippine style
Over all, a very interesting operation. Their web site is well worth surfing through.
A bit rich for your blood? Well, me too. I don’t have the kind of money it takes to set up a business of this scope, and I doubt I’ll ever be in the same financial league as their clients. But it’s well worth learning about successful operations like this for two reasons.
Every successful business that got started here in the Philippines has things to teach us. And I do not see any reason why a similar operation could not be ‘scaled” to fit a smaller business model. What about smaller pleasure boats, selling for peanuts today because they need massive amounts of work? Once proud but now run-down (or too small) farm equipment, which is badly needed (hint, that means “will sell”) in developing countries. I already know of at least one business here who
Former work boat Philippines
scours the world for damaged or worn out small aircraft, ships them here, rebuilds them and sells them in pristine condition for a nice profit.
The list could go on … bottom line, if you are thinking about living in the Philippines and have business ideas, don’t just be a follower and day dream about sari-sari stores or Internet cafes. Most businesses fail, or never grow to full potential, because the founders set their sights too low.
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Hi Ellen, thanks for dropping by. Yes I thought it was agoos story. I should write about the guy who pointed it out to me. Capt. Joy Roa who is a long time figure in Philippine aviation. Joy has an operation where among other things he buys worn out or wrecked small aircraft, brings them to the Philippines, makes them like new and resells them.
He has a neat show on ANC every Sunday, 20:30, where he travels all over the Philippines and the rest of the world showing off interesting places and people, in and out of aviation. The fellow who founded that HYS company is a ‘friend of Joy’s”, along with thousands of others around the world. A living example of the saying, “Filipinos fit in anywhere”. Worth a look, although it may be along time between boat features.
If there is a will, there is always a way. In boatbuilding, there are lots of problems and challenges along the way. Sometimes it will take years to finish. I have learned that if you focus on the light at the end of the tunnel, patience and perseverance will pay off. It may be short term loss, but long term gains always win, in the end. Good one, Dave.
Hi Dave,
This is my first time posting here. I like this article a lot! I especially like your last paragraph where you encourage would-be entrepreneurs to think outside of the box and consider more creative business ideas than sari-sari stores and internet cafes.
Cheers!
Hi martin, thanks so much for coming by and for all the articles you write detailing people having success in the Philippines. Business is business and none of them start or run themselves, but I feel I have seen more people fail by setting their sights too low, or by copying their neighbor than I ever have by dreaming big.
I also love business plans like this fellow I featured has devoted himself to, becuase he makes good use of waht would otherwise be scrap or even just rust … any time you can save the environment _and_ make a good living at it, you can sleep well at night.