Setting up business in the Philippines looking at your market before spending your money.

I have noticed a bit of a trend that happens a lot here where people look before they leap. Often spending a lot of money on the initial setup of a business then relying on it paying off long-term by estimated monthly incomes. In reality it doesn’t always work and it has to be one of the biggest reasons people fail here. Prime example is a resort or a restaurant where millions of pesos are spent on refurbishment based on thinking they will get a lot of Expats or tourists in but often not doing the ground work to find out what can drive people to them. Is it great food etc? If its great food save your money on your refurbishment keep it neat and simple. There is a reason most restaurants here seem to be on a budget its because they are. They have based the business on who is going to use it and kept their costs to the lowest they can which then reduces the risk of lost income but also makes the business more viable in many cases. For example my net café has not been painted inside its been undercoated but that is it. I didn’t spend a small fortune on the latest gaming machines that many of the “Franchise” companies would advise simply because I am not sat in one of the big malls with lots of people with expendable income. I am sat in a provincial road where most of my users are children, teenagers and women looking for guys online all down to people with tight budgets. Currently it is repaying a computer back a month I spent less than P6,000 a unit so within a year most of the electronics will be repaid and into a profit next year (not including having the building built). I am looking at doing a similar thing with a restaurant most of the furniture will either be custom made by myself or simple to keep costs down and then start with a minimum kitchen setup then add to it depending on customer base. Starting with a hob and oven and expanding with things like a pizza oven at some point depending if there is enough demand for it as there seems to be pizza places opening up everywhere lately. So if your setting up look at who will use your facilities to gauge what you want to spend to what you need to spend. At the same time don’t rely on the “we will definitely use your place” because by the time your open those people may have found some other haunts or simply just come once.