Business ideas in bangkok

[PedSuam]

Having spent the last 8 months living on a tourist visa in Bangkok, networking, testing some markets and observing some ex-pat friends in their lines of work I've come up with a few seemingly good ideas on business start-ups.

I've followed ThaiAdventure's threads with concentrated interest and thank my lucky stars that my good friend has taken the burden to set up his own company in BKK.  His intentions being a) buy a house (which is complete), and Generate some income, being a bonus.  He's done the norm using a lawyer/accountant to set up a Thai Ltd. with the correct number of trustworthy Thai shareholders.  I will now set up a business "under" his company name to do what I think will be profitable and enjoyable (an education/business services function).  His company will also trade in unrelated functions in the Sports Events, IT consultancy, Property, Entertainment Guides arms if all goes to plan.  As he knows people highly experienced in each of these arenas I suppose he'll "employ" them as he will me to manage their arm of it.  However, ex pat visas/licenses/investment issues are something I'm worried about for myself in this situation.  If anyone can shed some light on that, given this scenario, I'd be very grateful...

Back on topic:

Importing from farangland to sell in Thailand seems very difficult indeed, but exporting into farangland obviously seems more viable.  I'd suggest the fantastic wood carvings or furniture that can be bought for brilliant prices. If you're the right type of person and know what you're doing, I'm sure attracting the attentions of a store buyer in your homeland wouldn't be such a problem, and if you can secure a contract..you've done well.  Exporting smaller desirable items such as fabrics and gems can be sent over easily and very cheaply in SMALL quantities...but it's when you have to pay for full container space that it gets heavy on expenditure, and less flexible for retail orders.  I'm in the process of importing (from Thailand to UK) my first batch of mixed goods now (pre-ordered by retailers).

Finally, nightclubs.  I think Daz mentioned this in a previous thread.  I feel I'm pretty clued up as to the scenes in Bangkok after experiencing them over the years of travel.  I watched some expat friends try and fail with a venture at a top hotel on Sukhumvit very recently. They've now found that "renting" venues to do monthly or one-off themed guestlisted parties is the way that works.  The market is fickle. Venues fill out for 2 months then die.  Take Bed Supperclub...it opened to the hi-so crowd and made a packet for the first 3 months, now their status has gone down, it looks scruffier and they can't afford to be choosy who they let in any longer...and some weekends it's STILL not full.  To work in this higher end bar scene takes more changes, creativity, dynamicism and exclusivity, amongst other things.  Then, serious money can be made I believe.

I went to visit a fantastic venue lying fully ready but unused, on the 32nd floor of a 5* hotel on Ratchada.  A very reliable friend is a director here and is close to the owning family. They have no-one and no interest to do anything more with the venue than occasionally hire it out for a wedding party - they don't need to, although they would certainly consider leasing it.  I myself would consider taking the risk to lease this plush place for a few months if I a) had practical experience in running/promoting clubs, instead of just workable ideas, Had reliable like-minded partners interested in an upscale venue, not CM2-type crowds and c) had enough money to invest in the setting-up.  Instead I'm focussing on the aforementioned but still can't forget about this place.

[Sunbelt Asia]

People own businesses for different reasons. Most to make money, but others for fame, hobby, boredom etc.  Lets just say making money was not the motivation on "The Bed."  For the owners, it was exciting and something to do.

Exporting in small quantities is a good idea.  Would suggest to get a export license.

[halfpast_2]

what cost is involved in a export licence??

[LPCustom69]

halfpast2 -- For interesting reading on that subject, check out the topic "Working in exports-no work permit" in the visa, residency and work permit  section of this forum (pg2?)

[Sunbelt Asia]

Our firm fees are 6,000 Baht. (Government fee is 3,000 plus 3,000 for Legal fee) You must go there in person as well, as the license will have your picture taken by the Government. Just like a drivers license.

[ChiangMaiThai]

Sunbelt, I'm interested in this export license you mention. I have friends who have been exporting from LOS for over a decade. No shipper, no courier, no customs agent, no policeman and no immigration officer has ever asked to see an export license. Could you give us more information?

[Sunbelt Asia]

Funny, I just had a seller in my office on Friday. He was meeting with a potential buyer. The subject of export license came up. The seller pulls out his card, similar to a driver’s license and said his lawyer had advised him to get it.  I asked him “if he was ever asked for it.” He said “yes" He said as he ships out of Pattaya, and if he did not have a work permit and license. He would have been in trouble a long time ago. He said "no question, it’s needed. “

My wife just had to pick up wallpaper for Subway and was asked for her Import/ Export license. She showed it and had no problem. The other Subway franchisee was asked as well. He didn’t have one and the freight forwarder said “This time we’ll do it for you. But their won’t be a second time”

The export license is not needed in all cases. Just depends on the product. Our firm however maintains a work permit is needed, because that’s what immigration says and so does the laws. Our lawyers will always advise a person on the laws, not if they will be upheld. Things change quickly in Thailand.  

On the first scenario, this is the seller’s listings. Because of confidentiality cannot disclose the product being exported, until meeting the potential buyer in our office.....

Established, expatriate run, online export business with 3 websites that dominate the first page of all major search engines.  This business has a proven track record with operating systems in place for easy and efficient management.

Work permit, VAT registration and export license. Legal and accounting services are provided by a Bangkok based law firm. The websites are easy to maintain and run from home, with automated e-mail response to confirm, track and process orders.

All customer orders are paid for in advance by credit card, generating an excellent cash flow. Processed order payments are made weekly by a US based secure online credit card service provider.

Massive potential for expansion within the current market and for add-on products and services. This business can be easily carried out from home in any major city in Thailand.

The websites contain online catalogues of lightweight, low cost, high sale value decorative products created in Thailand with a high export margin, sold principally to established North American and European markets.  

Huge customer database with a significant level of repeat orders and referrals. The business is over 2 years old and is still growing at a more than satisfactory rate, but the owner wants to free-up capital to invest in an unrelated project, and to spend more time in Europe with ageing  relatives.

Rolling 12 month receipts currently stand at $187,000 producing profits of $69,000 which are documented. Although the 3 websites overlap and so compete with each other, the owner has found that this is beneficial to overall sales volumes and helps to capture a larger market share.  The rapid expansion and success of the business can be attributed to a good quality product, good customer service and a high level of customer satisfaction.  

This is an exciting, easy to operate business with proven profitability which can be managed by someone with a little computer experience; the current owners will make themselves available for a suitable hand-over period.

[ChiangMaiThai]

Perhaps the issue of export license depends on the product. I have shipped ffrom Thailand for a year. Never been asked for a license. As I said, my friends have been exporting for over a decade, have never heard of an export license. And if you are required to have a work permit to get the license, then that rules out many many exporters who do not wish to spent $50,000 to start a Thai company and do not wish to or can not work for a thai company. Is the Thai government really uninterested in these types of exporters to the extent that they have purposely kept their activities illegal?

[Roger13]

My wife just had to pick up wallpaper for Subway and was asked for her Import/ Export license. She showed it and had no problem. The other Subway franchisee was asked as well. He didn’t have one and the freight forwarder said “This time we’ll do it for you. But their won’t be a second time”

SunBelt

Could the Answer to this apparent puzzle be

That the Freight Forwarders have Export Licences

themselves and all those Exporters who have not

been asked for one are being "Covered" by the

Freight Forwarders Licence.

[ChiangMaiThai]

I think you're right Roger. I'm not going to say that what we are being told about this license is false, but I must assume that exporters are covered by the freight forwarders. I don't see the purpose of a big debate here like I saw about the no work permit/exporting, but I can say that I went to my local UPS today and asked senior employees their this. If I come in with one hundred thousand silk scarves, will I have any problem shipping them to the US? Do I need an exporters license? The answer? An emphatic 'no'. Furthermore, no one there (most have been there a number of years) had ever heard of an exporters license.

[Sunbelt Asia]

I just experience something first hand.

Had to send a copy of my passport and work permit to the freight forwarder Phonex International just two hours ago. Some equipment was sent to Sunbelt instead of Subway and was told, "no work permit or passport....no equipment" They would not release it unless I faxed them my papers.. Thank God they didn't ask for the Importers license, because I don't have one! The shipper made a mistake!

On the Import export license, depends on the products. I think the freight forwarder will help you to a certain degree, once or twice but not more than a couple times.

[Indo-Siam]

I have pretty much kept quiet on export licenses, because I do not have one.  I believe two things:

1)  If you want to recover VAT paid on products that are later exported, you need an export license.  The reason almost no one cares about this is because the system for refunding VAT to people who ARE entitled to this and ALREADY have an export license is broken - refunds come back only after years of waiting, and only if you are relentless in pursuit of this.

2)  Reality here in Thailand is EXTREMELY simple - you don't need an export license here unless you hit a "wall" - meaning, someone will not execute an export shipment for you unless you present an export license.  If you are not asked for an export license, then no license is needed.  Period.  From my ThaiTradeData.com business, I know that exports are meticulously tracked by Thai customs - down to every individual shipping bill - and no significant export service provider here is either escaping notice, or asborbing risk of massively violating export regulations.   No request for "showdown" of you license = no license required.  Q.E.D.

I do have an import license, so I know the rules on that.  Any Thai business is allowed to bring in two import shipments (dutiable, and deemed to be commercially significant) per calendar year without an import license.  Beyond two, you must secure an import license. This rule is specifically in place so that firms do not have to obtain an import license to bring in a "one-off" shipment of goods - as in: for wallpapering a franchise restaurant in company colors (NY subway system in this case).

Steve Sykes

Managing Director

Indo-Siam Group

www.indo-siam.com

Bangkok

[ChiangMaiThai]

From everything I've heard and everybody I've talked to, I have to come to the same conclusion as Steve. Going off topic here, where are these Subway branches? And any plans for some outside of Bangkok?

[GlenTuk]

Not sure if this Web adr might help, Under the Export Procedure banner it tells you the full procedure based on each commodity shipped, IE if you want to ship rice ex Thailand then an Export license is required, It seems it varies depending on what good you wish to ship.

It may or may not be useful........!!!???    ???

http://www.thaitrade.com/

[Sunbelt Asia]

ChiangMaiThai

Where do you want a Subway restaurant to be open?

[ChiangMaiThai]

ChiangMaiThai

Where do you want a Subway restaurant to be open?

Chiang Mai :laugh:

If it was in the new addition to the Airport Plaza complex, it would probably do well. I certainly would go a few times a week! There are all the other typical ones: Starbucks, KFC, Pizza Hut etc. but no Subway...

[Sunbelt Asia]

Has to be cheaper then the rent at the International terminal in Bangkok. They had a auction several months ago for 110 Sq.M. Minimum reserve was one million Baht per month! Not a typo.. one million Baht rent per month! Its still empty as it was during Sars.  For Subway, we had to sell one sandwich every two minutes...every day 24 hours a day to break even!

That’s why only the KFC is the only fast-food chain inside,

Chiang Mai, we have an opportunity to do it at the Night Bazaar near the other brands. The worry is its really 6 months of trade during high season..

This is the second Subway in a month so give us time :-) Soft opening tomorrow at 7 am Sukhumvit Soi Nana ( next to the Majestic Inn  and Landmark Hotel)  Please, be patient as training will be taking place:- )

[ChiangMaiThai]

I'm guessing that farang missigng their sandwiches are going to be the big money makers. So the night bazaar would probabaly be better than airport plaza. Also, its not exactly the norm, but if you could open around the tah pae area where all the backpackers are, I've got to think you'd get plenty of business.

[Sunbelt Asia]

Thanks. Today at the soft opening of Subway Nana. Its been a huge success. My wife “ Nui” has done a fantastic job...I'm very lucky in every sense of the word.