Crazy Question: How to start a VA company in Philippines?

19 replies
So I have been doing alot of reading on the forum, thanks again to all those who have been helping me.

Here is the crazy question:

Does anyone have experience opening an office in the Philippines with a staff that can do article writing, SEO, linkbuilding, etc etc?

If anyone does have an idea, what are the ups and downs? How much does a good quality employee cost and what type of workload can you get out of them on a weekly basis?

Thanks again guys.
#company #crazy #philippines #question #start
  • Profile picture of the author Lazy
    I've got a friend that does this. He acts as a middle man providing outsourcing to american companies. I'll ask him and PM you when I find out.
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  • Profile picture of the author Andrea Wilson
    Seems interesting. I never heard of that but it is surely a better version of hiring a virtual assistant online.

    Andrea
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  • Profile picture of the author mrrichsin
    Originally Posted by londonwarrior View Post

    If you want to start a company you would be best visiting the Philippines. It will be extremely difficult otherwise. Most VA teams are based in offices, so how would you rent an office, but the equipment and hire the staff if you're not in the Philippines? You could hire a manager to begin with but what if they disappeared? I'm sure it's possible but there are many pitfalls, especially if you have contracts with other companies to supply services that end up not being supplied.

    I am based in Thailand and there are many here who could do the work you want and they are fairly cheap. I might be interested in putting something together if you have some firm ideas. I have Thai speaking friends so would be able to co-ordinate things fairly well.

    Do you have training materials for the staff?
    Well definitely being there is a must to set it up and some time is needed to work out the kinks, which is just part of doing business. But from that point on, with a good technology layer, it can easily be managed remotely with a good manager in place, strict deliverables and routine trips.

    Thailand was a thought also...how would you compare the filipinos to the thais in terms of the type of work mentioned?

    PM me, we can chat.

    Originally Posted by Lazy View Post

    I've got a friend that does this. He acts as a middle man providing outsourcing to american companies. I'll ask him and PM you when I find out.
    Your the best man. Would appreciate it.
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  • Profile picture of the author paulie888
    Is there any particular reason why you'd like to set up your own company in the Philippines? If all you require are a few workers to take care of your typical internet marketing tasks, there are a few outsourcing firms that specialize in exactly this kind of thing.

    John Jonas has a great 1 hour+ interview that talks about how to basically outsource your entire operation offshore, and IMHO this would be a good place to start for you- How To Live The 4 Hour Work Week Through Outsourcing - John Jonas Replace Myself Free Audio
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    • Profile picture of the author Lazy
      Originally Posted by paulie888 View Post

      Is there any particular reason why you'd like to set up your own company in the Philippines? If all you require are a few workers to take care of your typical internet marketing tasks, there are a few outsourcing firms that specialize in exactly this kind of thing.
      [/url]
      It's super cheap. My friend literally does NOTHING. He takes like 90%, and the 10% is paid to his virtual assistants in the Philippines, and it's a great wage for them. Everyone is happy.
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      • Profile picture of the author mrrichsin
        Originally Posted by Lazy View Post

        It's super cheap. My friend literally does NOTHING. He takes like 90%, and the 10% is paid to his virtual assistants in the Philippines, and it's a great wage for them. Everyone is happy.
        That's sweet man. Geo-arbitrage is the best. You really cant lose with something like that, even if your doing client work and not personal projects.
        It's nice to have something like that within your reach, especially if your ambitious and have alot of ideas.

        Originally Posted by paulie888 View Post

        Is there any particular reason why you'd like to set up your own company in the Philippines? If all you require are a few workers to take care of your typical internet marketing tasks, there are a few outsourcing firms that specialize in exactly this kind of thing.

        John Jonas has a great 1 hour+ interview that talks about how to basically outsource your entire operation offshore, and IMHO this would be a good place to start for you- How To Live The 4 Hour Work Week Through Outsourcing - John Jonas Replace Myself Free Audio
        Good question. What I do know about outsourcing is that you really never have dedicated staff. So that being said, I believe the initial investment to set it up and get the ball rolling and being able to have a staff that can put all of your current and future projects as first priority, is worth it.

        I will definitely check that talk out.
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        • Profile picture of the author chrisbiz
          Originally Posted by mrrichsin View Post

          .Good question. What I do know about outsourcing is that you really never have dedicated staff. So that being said, I believe the initial investment to set it up and get the ball rolling and being able to have a staff that can put all of your current and future projects as first priority, is worth it.

          I will definitely check that talk out.
          Well, let me give you some feedback about this.

          I want to disagree that YOU REALLY NEVER HAVE DEDICATED STAFF when you outsource. ITS POSSIBLE to have dedicated staff.

          Again, outsourcing is a trial and error thing, there is always risks involved, in everything we do it always has associated risks involve. It is just a matter of taking which one has lesser risk, and high success rate.

          Setting up an office? hmm... it can be a good idea if you have the resources and the guts to face MORE risks. There might be MORE risks involve taking that route compare to having employees VIRTUALLY.
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          • Profile picture of the author paulie888
            Originally Posted by chrisbiz View Post

            Well, let me give you some feedback about this.

            I want to disagree that YOU REALLY NEVER HAVE DEDICATED STAFF when you outsource. ITS POSSIBLE to have dedicated staff.

            Again, outsourcing is a trial and error thing, there is always risks involved, in everything we do it always has associated risks involve. It is just a matter of taking which one has lesser risk, and high success rate.

            Setting up an office? hmm... it can be a good idea if you have the resources and the guts to face MORE risks. There might be MORE risks involve taking that route compare to having employees VIRTUALLY.
            Exactly Chris. When you set up your own office you have a whole host of fixed costs and overhead each month, such as rent, utilities, phone bill, etc. These costs can be very significant and will not make economic sense unless you're hiring a fairly large number of employees.

            When you outsource, you don't have to worry about all this. I'd say that unless you require 20 full-time employees or more, you'd be much better off just outsourcing your work.
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  • Profile picture of the author Clyde
    Onlinejobs.PH

    Filter them out till you get a good worker.

    Over pay him/her instead of paying for an office.
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  • Profile picture of the author Lyanna
    Do you really want to spend a month just doing paperwork? That's the minimum time you will need for the office lease, setting up utilities, social security registration, business permits (plural, there are several you need to get), tax forms, drawing up employment contracts, police clearance, etc.

    One thing you can do is go to one of the many outsourcing companies here and set up a business relationship with them.
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  • Profile picture of the author wahsupermom
    Hi,

    First off -- nothing is crazy about your question.

    In fact, VA companies are increasing in number here in the Philippines. I'm from Cebu City and I see a lot of these "start-up" companies offering services to Western clients.

    I'm a work at home VA and I know that doing a work at home arrangement for VA services to sell to clients can be frustrating at times. The hiring process takes long, so does the training process, and you don't really have that much control over your VA's activities. Sometimes, you may end up disappointing your clients if deadlines aren't met, quality of work isn't up to par, etc.

    Setting up an office in the Philippines is a good idea if you really want to have strict quality control over the service you will be providing to your clients. Of course, you don't have to be there all the time -- a good operations manager can oversee the entire business for you. At the start though, you may need to be there to keep track of things.

    Factors to consider when setting up an office in the Philippines:

    1. Location - Your best bet will be to situate yourself in key cities in the country. Manila definitely has a higher cost of living compared to Cebu and Davao. However, their IT infrastructure are the same.

    2. Office Space Rental - depends on the location and size

    3. Equipment - depends on how many people you want to hire

    4. Utilities - internet connection up to 8.0mpbs costs about 50k (~$1100 per month)...but you can always get a lower connection speed

    5. Employee Benefits - health insurance, social security, hdmf, night differentials, allowances, bonuses etc.

    6. Government Permits - can take so much time to process because of all the red tape

    7. Salary - depends on the positions you will be offering and the skill set of prospective applicants

    Starting Salary (typical rates in Cebu):
    $1~43 pesos

    Article Writing 12,000 ($280)
    Link Building 9,000 ($210)
    Web Programming/Graphic Design 15,000 ($350)

    VA companies require their employees to work 9 hours a day with 1 hour break for 5 days. That makes it 40 hours of dedicated work per week. Some companies assign clients to each VA to do all around tasks while others get the total scope of the project and distribute it to their article writing team, link building team, programming team respectively. Keep in mind that you also need to do some training of sorts so this will also be a factor to consider. Of course, you can set metrics and evaluations all throughout the year to ensure quality.

    Hope this helps.

    Jan*
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  • Profile picture of the author dilnaj
    I was thinking of a similar business model. I would also second on building an online VA business instead of getting an office. You could setup hosting, have a basic website, ecommerce and all for ~$1000. Then find some clients that will hire your VA. Then find personal freelance VA from the Philippines either via Elance or oDesk to fill those needs. Make sure they have previous experience and work for you and only you. If it gets bigger, you can outsource the management aspect as well. It wouldn't cost more than $3000-5000 and you could have a solid VA business built up. No overhead and all that extra junk needed.
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  • Profile picture of the author riza
    I also thought about doing this. I didnt ming the prospoect of paying for office space, utilities etc, but in the end there would so much paperwork and beurocracy i think it will be too much of a headache. The one big advantage, even if you are hiring them just for your own projects is that having that daily face to face communication will make things move along much quicker. you can be on had all day just to explain little things and they'll learn alot more.

    Even with skype and daily emails i still feel my communication with my VA's is somehow limited, it can get frustrating sometimes when i get a little idea that needs doing, but i have to put it in an email and spend time writing out all the instructions etc.
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  • Profile picture of the author cebuana
    I have had an outsourcing business in the Philippines for about 6 years. I live here now, having retired from a lifetime of computer programming in the U.S. I started with an office but have since moved to hiring workers to work from home. They like it better, i like it better. If you don't live here then you could do something like this by hiring people from an agency and then hiring the good ones.
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    • Profile picture of the author pfreelancer
      Hello,
      My name is Carolina Alcid, I'm Filipino-American from Las Vegas, Nevada but at the moment I'm here in the Philippines managing my own outsourcing business.
      We have helped some Internet Marketers for their outsourcing needs.
      We are always looking for opportunities to expand our business or assist potential investors.
      I'm a social media consultant, virtual recruiter, seo specialist and as well web developer.
      I have team of programmers, web designers and seo specialist as well as article writers.
      From what I read at Warrior Forum some of you want to explore possibilities of investing in an outsourcing business over here in the Philippines. I would like to discuss with you guys in private.
      PM me so I can give my skype
      Regards:-)
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  • Profile picture of the author mrrichsin
    I just wanted to update you guys on this thread. I actually have made the jump into starting one in another country, which speaks 100% english as a first language and zero virtual assistance companies operating out of it.

    Does anyone know any inside knowledge as to what the daily production of a VA doing SEO and Article writing output?

    Also If you guys want to know more about cost and method, let me know.
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  • Profile picture of the author taylormarek
    Ok, to those who replied to his original post, ALL OF YOU, except some of you (you know who you are ), MISSED THE POINT.

    What he is asking is CREATING A COMPANY IN THE PHILIPPINES to provide VIRTUAL ASSISTANTS to other IMers. Ya know, like the brick and mortar company?

    I will say this, the idea has crossed my mind once or twice. I have visited the Philippines and was half-tempted to pursue the idea. Its a good idea, but you kind of have to be careful where you place the company. Crime is rampant all over the place, employees leaving is common, not to mention that if you even look like a foreigner you will be swamped with people begging money from you. And if you get ripped off, you can't pursue or you will be shot (kind of how the gangs work there).

    It can be very profitable, but ultimately it will take alot of hard work, honest connections, and a safe environment to have the office.

    Hope that helps you in your studies mrrichsin.
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    • Profile picture of the author MarkPavic
      We run our own operations in Manila so we know what it takes to get things done in this country..

      Operating out of the Philippines is not hard but does take time to setup shop. Yes, you do have to go through a lot of paperwork. We contacted a lawyer to set up our companies. You pay a little bit more but rest assured it's all taken care of for you.

      We set up in the Philippines because we wanted control over our business. Having an office allows us to find better and loyal employees. We pay between USD$300-$400 and they work 40 hours a week, Monday-Friday.

      Be prepared that the Philippines has a lot of holidays so take that into consideration when doing projects.

      As for office space, you won't have a problem finding cheap space.

      Overall, it's a wise decision if you want to pursue this route.
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