Buying A New Business In North Bangkok

[Caecilius]

My Thai wife has been offered a hairdressing business for 90,000 Bt. That includes one professional hairdryer, an aircon and some basic furniture/curtains etc, and the lease. Rent is 10,000 Bt a month. She has been told (so it must be true...) that the current owner takes about 30/35,000 Bt a month. The current owner says she wants out due to family problems. The place is under a condo block, and there are two other hairdressers nearby. The complex is new, with 8x10-floor condo towers around.

Is this pie in the sky, or a neat business opportunity?

Will she be able to sell the business for a similar amount if the sh*t hits the fan?

Any ideas, gratefully received!

[zzz9]

First advice..Dont invest in Thailand.

Second advice.. making a business a successful one depend on so many aspects..such as inveroment (in real life need to see the area..watch the traffic of the poeple and the kind of costumers she can catch there..)whats the price in the market. Is the business have some kind of record of the income and expenses something that u can reliable on .

Last thing.. "She has been told (so it must be true...)"

Keep in mind that maybe the rent can go lower if the owner didn't knew that your wife is "mia farang" something that can raise the rental price..

You have lots of things to check before invest even though its not a big investment and loose from what u describe.

[robhudd]

Hi

My suggestion would be to look at the books and make a decision on the numbers. Although there probably are no books so if your wife is really interested and the current owner is willing, get your wife to work in the shop for a month or two so she and you can gauge the real income and expenses for the business and then you can make a reasonably informed decision.

Good luck!!

[ProThaiExpat]

When considering buying a "service business", your really not buying anything but the equipment. What is so unique about the lease that one should buy it? Surely, the landlord would have to agree to the lease assignment, so why not make a new deal?

"Good Will" can have value, but in a new development with two competitors nearby, I suspect there isn't much.

Does your wife have friends or previous co-workers that she can attract to her shop so she has others helping to support the rent "nut".

Does your wife have a "following" that can sustain her during the early months while she develops new clientele.

The "deal" as you describe it makes me wonder what she is buying. Why not consider starting her own business where there are many people and little competition. A new business does not have the "hangover" of customers who may have not liked the prior owners. Hair dressing is such a personal business that customers are rarely "transferable" unless your in a "transient" enviroment such as a hotel, train station or bus depot.

The suggestion that she work in the shop for some months before buying is an excellent one. Not only can she evaluate if she can develope he own following, but certainly learn about the shop and its pros and cons, a must if she still wants to buy it.

[Caecilius]

Many thanks for the advice guys!

I, too, am puzzled why the lease is so high.

As for the suggestion that my wife work there for a bit first... I will certainly suggest this to her, and I look for ward to her reaction!

Any more from any more?!

[Sunbelt Asia]

Many thanks for the advice guys!

I, too, am puzzled why the lease is so high.

As for the suggestion that my wife work there for a bit first... I will certainly suggest this to her, and I look for ward to her reaction!

Any more from any more?!

The lease is the going rate for retail space in a residential building. Some of course are much higher.

Based on what you are saying, its a very good value if their was a couple employees that would be staying and had a following. If its a one man (woman) shop than it not worth more than the equipment. In fact the current owner had employees; this would only have to be making 2,500 Baht a month in her pocket, for it to be a fair buy.

When you say lease, is the three month deposit included? Remember the old lease needs to be torn up and a new one drawn up with the landlord.

Do due diligence!

www.sunbeltasiagroup.com