From A Simple Stupid Idea to A Big Profitable Business
Aug 14
I met Mang Armando a few years back when he was still working as a personal driver of a client whom I used to play billiards with. His boss was Caucasian and a very generous boss, I should say. When the time came that his boss has to leave the country, Mang Armando found himself jobless, and realized he’s too old enough to find another employment.
During a usual, casual conversation, Mang Armando all of a sudden asked me what advice I could give him so he can make his Php60,000.00 go a distance. I told him 60K pesos (less than US$1400.00) is not much - he has to spend it wisely otherwise it will disappear quickly. That was all the money he got - he told. After a few thinking, I gave him a very odd business advice: Start his own “pedicab” business but I gave some details though - out of nowhere.
I told him he can go back to his province - a few hours south of Manila and buy his first 10 pedicabs. For you guys who doesn’t know what a pedicab is for - its a mode of transport in the Philippines. So you can hire a pedicab, take you to some narrow or flooded streets and pay a few pesos for the service. Quentin Tarantino took a pedicab when he visited Manila the last time.
Okay going back to Mang Armando, who told me he doesn’t have the right education to manage a business, so I thought him going into the pedicab business might be alright (I swear I wasn’t sure he will make it though). Told him each brand new pedicab costs about Php4,000.00. He can charge daily rental of Php50.00 for each pedicab unit, so roughly he gets Php500.00 per day for the 10 pedicabs. Set aside 1o% to 15% reserve for repairs and maintenance so he gets about Php13,500.00 a month. He can even buy new pedicabs so he can grow his fleet.
What was funny and eventually scary - the poor old man took my advice by heart, went to his hometown and did what I told him. 4 years since, he called me and asked to meet him up. I was hesitant, I don’t know if the old man’s gonna stab me to death for giving out such a stupid business idea, but still, I managed to show up and lo, he gave me a tight hug and a great pat at the back.
He told me, over the last 4 years, he managed to grow his business, he has now a total of 150 pedicabs in 8 towns and is venturing to another business which he hoped, I would be willing to partner with. I went home mesmerized about the idea of how much the “old man” earn in a month. You do the numbers. Amazing, isn’t it?
(Image courtesy of Isnavera.blogpsot.com)
If you want to know the latest posts, you can subscribe using your favorite RSS feed reader or get them delivered to your email inbox. Thanks!
Sphere: Related Content
That’s inspiring.. Naalala ko tuloy buhay namin, uhuuhuhu.. I used to be a vendor in the public market, selling corn, ice candy, fish, banana cue at sari-sari pa..
[Reply]
sarcasm. LOL. inspiring nga. pwede ba sa susunod mag-ask din ako sayo ng advice? hehe. :p
Miss Elles last blog post..Obsession Gone Terribly Wrong
[Reply]
i think what you gave him was pretty great advice actually. it took into consideration his amount of puhunan. it’s a concrete business, tangible so managing it is relatively straightforward. the maintenance costs are pretty low since there are no engines to conk out, or high fuel costs to worry about. aside from walking, there isn’t much competition.
i just wonder if that means there is no need for a franchise for pedicabs, similar to what is needed for tricycle TODAs.
scatterhaikus last blog post..10 credit card haikus, #4
[Reply]
kaka.touch nman ung story. prang gnyan dn buhay nmin, kaya lng mejo wlang pera. hehehe. that’s why i’ve indulge into blogging to have some money. kuya,pg my pera dn aq, hingi dn aq advice sau.
Make Money Online w/ Gushers last blog post..Watch Michael Phelps on 2008 Beijing Olympics
[Reply]
there’s the entrepreneurial spirit! very inspiring. sikad-sikad lang and the guy’s earning more than many of the company executives out there.
[Reply]
@Jolibeer, hehe, that’s worth blogging bro. Hehe. Will gonna watch out for that.
@Ma.Elle, haha, what business naman tatanong mo madatong ka na.
@Scatterhaiku - not so sure, but if ever there’s gonna be, that would be negligible I guess. The ‘TONGPATS’ are heavier on the pocket. Believe me. hehe. Thanks for commenting.
@Ceblogger, yeah, it turned out to be one inspiring story. The old man’s earning more than the average Filipino professional.
[Reply]
good post!
supernoobices last blog post..COPEAC Rocks
[Reply]
A very inspiring post. Congratulations on being able to add some value on somebody’s life.
Likewise, Mang Armando’s achievement proves that age is never a hindrance to achieving wealth. There are always opportunities around us, even in the most simplest things.
[Reply]
I sure hope the old man doesn’t venture into blogging or we’d be out of business for sure. Imagine he’s like Problogger and the b5media empire of pedicabs.
archondigitals last blog post..Entrecard Top Ten - July 2008
[Reply]
@Fitz - you’re right, its only a matter of us recognizing these opps and benefit from them.
@Archon - Haha, he actually asked what’s a blog and if he could have one.
[Reply]
It’s amazing sa idea lang nagstart ang business. The old man took it by heart and managed to make it into a big one. Ayos din ang rough figures sa earnings per month. P13,500 is a huge income already.
Another lesson, it is never too late to achieve success late in life.
Gems last blog post..Defining One’s Price for Online Freelance Job Opportunities
[Reply]
[...] everyone has the skills to run a business, or play in the stock market, or make online or offline investments - this leaves few options to [...]