Open for Business
“Why on earth would you leave your country to open a business in Mindanao?” That’s a question I get asked quite often by curious customers and aspiring entrepreneurs alike. Every successful entrepreneur has a reason for starting their small business, and the reasons are varied and may come as a surprise to many.
My wife and I opened our business in Butuan City in May of 2002. Previously we were living and working in Singapore. My contract was expiring at the end of 2001 and we were faced with three simple choices: find new work in Singapore, return to Canada, or try something completely new in the Philippines. To be honest, moving to the Philippines to open a small business was by far the most intriguing option. We were very happy in Singapore, and to this day we return to visit each year, but we decided that if we were going to follow a dream of opening our own business, then that was the perfect time to do so. We had both worked primarily in and for the public and quasi-government sectors, so becoming entrepreneurs was going to be a new and challenging experience. But starting a business in the Philippines was something we could afford to do and wanted to do. We could not afford to stumble and learn our way in business in Canada, as it would have been too much of a capital outlay to do so. We decided that we could afford to learn the ropes in the Philippines, and if all did not turn out as we had hoped, it would really only cost the same as buying a new car or truck back in Canada.
The motivation for us was to try something new and see whether we had the ability to chart our own course and be our own boss. But other entrepreneurs take different paths. Some decide to turn their hobby into a part-time business. I know of another foreigner here in Butuan who is an excellent photographer. Photography was his hobby, but he has since done work for my business and a few others by helping provide professional quality photos for our different promotional and marketing activities. For him, the advantage of being a ‘part-time’ entrepreneur is that he can pick and choose which projects he wants to get involved in, and the ‘work’ does not become so tedious that it takes the fun out of photography for him.
I also know of a few foreigners who are entrepreneurs because the extra income really helps them maintain a better quality of life here in the Philippines. Not all foreigners living in the Philippines are blessed with a handsome pension that lets them live like proverbial kings. Increasingly I have noticed that the fall in the value of the dollar combined with higher than normal inflation in the Philippines is making many foreigners think hard about ways to earn ‘supplemental income’. For some foreigners it may be necessary, especially those on a tight budget or fixed pension. By getting involved in a small business that is not too demanding on their time or pocketbook, many foreigners are able to supplement their regular income. The added benefit for many of them is that the business has enabled them to expand their network of contacts and friends while at the same time providing them with the additional resources needed to keep ahead of inflation and also enjoy a comfortable lifestyle they had become accustomed to. The best kinds of small businesses that fall under this category are those that require minimal overhead to get started and are easy to walk away from when the business becomes too much of a chore, or the dollar gains in strength again and inflation slows.
So as you can see, there are many different motivations for why foreigners do get bitten by the entrepreneurial bug and try their hand at business in the Philippines. Some are following a dream of being their own boss. Others find it a way to earn a bit of additional income off of a hobby that they enjoy. Many others are motivated to do so as a way of helping their Filipino relatives earn a steady income. The point is that there are many reasons why you as a foreigner may want to get started in running your own small business. What you need to remember is that getting started is the easy part. Staying in business and growing your business is the hard part.
Stay tuned and watch for more articles from the Small Business File!
Hi Martin,
I guess I have the honour of being the 1st to welcome you to this site.
I am a Canadian planning to retire early to Cabanatuan (north of Manila) in the next year or so and am always looking for something to keep myself busy. So I will look forward to your articles and insights on business in RP
Again WELCOME !!!!!!
Hi Tyleen,
Thanks for the welcome! I’m sure you will come to enjoy the winters in the Philippines over the winters in Canada. I miss seeing snow every once and a while, but I never miss the cold or shovelling snow! I am hopeful that my upcoming postings help people think about and successfully launch small business opportunities of their own. Cheers!
Hi Martin,
Nice to make your acquaintance here! Looking forward to reading your column.
Cheers,
Henry
Martin
Yes you have us guessing here what is your business line, look forward to hearing about it in your future posts, sure they will be read with interest
good luck
Hi Henry,
Thanks for stopping by and reading the first posting on the Small Business File. The first few columns will cover the basics of doing business in the Philippines. I hope you find the postings interesting and I look forward to your comments!
Hello Rick,
I’m in the specialty coffee business — roasting and retail. As much as I do love the subject, the Small Business File will not be filled with references to the coffee business. I’m trying to showcase different problems and opportunities that many entrepreneurs face in the Philippines regardless of industry or market niche. By keeping the issues raised more general in nature, hopefully future postings will be of interest to a wider audience. Thanks for your comment!
Hello - looking forward to reading your posts. I am from Vancouver, BC since late 1978 and am currently here in Samal.
Cheers,
Ellen
Hi Martin,
Aside from Bob’s views in making business in the Philippines, it would be great to hear you views concerning this subject too. I certainly would certainly helps local and foreign investors to decide which way to go. Looking forward to read your articles soon. Welcome to LiP.
Hello Ellen,
Although I’m originally from the prairies, my last home in Canada was also in Vancouver. Looking forward to your comments on upcoming posts. Cheers!
Hello Teng,
I agree it is important to get a wide range of views on different topics related to small business. No two businesses are alike, so it is really important to seek multiple views on different subjects. I think the Small Business File will be a good venue for other entrepreneurs to add their comments and critiques to the different topics raised each week. I hope you have some ideas and experiences to share as well!
hi martin–glad to have nevv insight into business in the phills–i am pretty nevv here and learning my vvay around –i hope to find some small nitch for a business here –i am in digos –been in the phills about a month–i look forvvard to reading your column–bubba
Welcome to LiP, Martin. Looking forward to reading your column.
By the way, I have a sister who lives in BC, but in the very far north.
welcome martin
its nice to see different people there having a good buisness there in philippines.i have a family in davao del norte.i had a few ideas to sell water and a sari sari store there.although the problem was when the family worked the buisness they think they can spend all the money.so i decided not to do it if i have to replenish stock every time from my pocket.i guess i just wanted to help them get started in some kind of buisness so they would be self sufficient.im from maine state usa borders with canada.im a lobsterfisherman.do you know any ideas of selling lobsters there?i have a way of smoking and jarring them.sooo delicious believe me.i would need a high end restruant to sell them so to make a profit.i also have unlimitted access to the best crabmeat and clams here.do you have any ideas of something i could start for my family there with little overhead.low investment?i look forward to your articles here.
salamat martin
ohhhh i forgot to tell you my fiancee also from butuan-augusan del sur area.i hear its very nice there,i wish you and your family well and good prosperity.
salamat martin
Hi Bubba,
In the next few columns I will be going over some of the very basics of opening a business in the Philippines. One of the columns will no doubt be on how to spot appropriate opportunities. I hope it will be of interest to you and others.
Hi Tom,
Thanks for the welcome! I too have relatives living further up the coast in northern BC, and my parents live on Vancouver Island. A beautiful part of the world indeed. I hope you enjoy my future columns. Cheers!
Hi Ron,
Lobster and crab! I bet you have lots of friends asking for samples! I had a former colleague from Nova Scotia who used to tell stories about how great the catches are in Maine and the Maritimes. Have you ever thought about using your knowledge in smoking shellfish/lobster and then trying it here in the Philippines with seafoods caught locally? That may be one way to tap your knowledge and use it in a Philippine context/setting. In an upcoming posting I will write about why it is a good idea for entrepreneurs to tap their existing knowledge and experience and how this can be adapted to a Philippine setting. Cheers!
Hi Martin. Welcome.
It looks like you have a winner here. I’m specifically intrigued with the coffee business you are doing.
I think your articles will be the missing links in appeasing the anxiety of a lot of the readers who depend on fixed income. These could be the deciding knowledge to finally pack up and move to the Philippines. I for one will be looking forward to them.
Best of luck.
Hi Dr. Sponk Long,
From the comments posted thus far, it does look like there is significant interest in learning about small business realities in the Philippines and about the experiences of people who have taken the plunge. I really look forward to the upcoming discussions and comments on various topics each week. Business is tough almost everywhere you go in the world, so hopefully this column will be a positive resource for those interested in the opportunities and challenges related to entrepreneurship in the Philippines.
Tess here from U.S.A.
Me too! very interested about small business.
Thank you and Goodluck!
Tess
Hi Martin welcome aboard greetings from South Africa. I have commercial interests in a pig farm and a butchery in Luzon. People have to eat no matter what the cost. Ihad looked at buying a restaurant in Davao but i would need to reside there to have that type of operation
Hello Martin,
Welcome to the site Martin, I look forward to your future columns. I am still here in USA right now, but will be coming to live in Philippines, Southern Leyte, Maasin City.
My finance’ already has a business there, but will be expanding it when I get there, and hopefully make it a much more profitable business. Plus will be looking for other business opportunities when I get there. So I am looking forward to upcoming writings and advice from you and hearing from your experiences there as an business owner there in Philippines.
Thanks so much,
Danny
Greetings Martin!
It sounds like your contribution to LIP is greatly needed. Hopefully, you’ll have time to post something like Chamber of Commerce, a list of businesses in Davao and other major cities, in the future.
Thank you for making your business knowledge available to share with others.
My best,
Marcelina
Hi Martin,Welcome,looking forward to your future articles.We currently live in UK and will be moving to Phils when i early retire in 2010.I feel i will need some venture to keep me out of mischief.Regards Chas.
Hi Martin, it’s never too late to welcome you on board of LiP. Congrats: very interesting article. You mentioned some foreigners (expats) turing their hobbies into part time businesses. Actually this is a very good decision. My wife and I really enjoy doing “such things”. Your “photograper example’ is great and so true… - I am looking forward to your next post…
Hi Martin,
Randall here from Toronto. Looking forward to your insights and experiences doing business in the Philippines.
My wife is from Surigao del Norte province. We are looking at several different business ideas in the Philippines. At this time we’re focusing on various agri-business opportunities.
Best Wishes!
Wow!
The first few weeks will involve articles on subjects like how to form and register your business, just how much planning/research should one do before jumping in with both feet, etc. These topics may seem fairly easy and unnecessary to those who are not beginners, but I think it is important to look at some of the ‘wrinkles’ associated with these topics that are indeed apparent in the Philippine context. Thank you all for your support, and I do look forward to all of your comments and contributions based on your own experiences. Cheers!
I just came into my office and see there are a bunch more posts. Thank you all for your welcoming comments. I will be posting an article each week - tentatively for Moday mornings here in the Philippines. I’d like to do more, but I still have a business to run!
Hi Martin:
I also look forward to reading your articles. My fiancee and I are in the middle of starting her business, and though I have started several businesses elsewhere, your insight in the Filipino way of business will be much appreciated. Cheers!
Welcome to the LIP clan my fellow contributor, and thanks for an excellent first article. I love Butuan and hope to pop up and say hello soon
Hi John,
Yes, the underlying theme for this column is to look at some of the ways in which business in the Philippines is different than elsewhere. Business is difficult no matter where you are located in the world, but it can be even harder if you’re unaccustomed to some of the subtleties associated with business practicies specific to the Philippines. If I can help save some grief and headaches for even a handful of future small business owners, this column will have more than served its purpose.
Hi John,
Thanks for your warm welcome! Please do let me know if you’ll be in Butuan. Cheers!
Howdy Martin,
I have already taken a likin’ to your writing style. Like several others that have commented before me, I too am looking forward to following along with you.
Best O’ Luck!
marshall
Hi Martin - Welcome to LiP. Looking forward to your posts. Coming from a Business and Management background (albeit mostly in theory) I have a particular interest in following your practical experiences and/or discoveries.
Hi Marilou,
Thanks for dropping by and reading my first column. My intention is to remain as practitioner-oriented as possible when writing my columns. I hope you enjoy upcoming topics and please feel free to make suggestions on what you’d like covered and I’ll try to work your suggestions in. Cheers!