Business in thailand

[bouzin2]

I would like to open, buy or lease a business in Phuket or Bangkok sometime next year. Has anyone did that recently, I would like to know what I should do first and what type of business to absolutely avoid.

Thank you for any suggestion you may have

Bouzin

New York, USA

[Indo-Siam]

It is very easy and straightforward to start or acquire a business here.  Anyone can do it, with sufficient funds.

Running a business here to prosper and build wealth is - in my opinion - very hard for a foreigner.  The ratio of failures to successes is probably 40 to 1 - or worse.

If you are a wealthy eccentric, and you just want "some business" to own as a hobby - then no problem.

If you want to build wealth, then a good early step would be to prepare a formal business plan - with particular emphasis on cash flow projections.

I will point out my situation - I started a business here 16 months ago.  It appears to me that I will most likely hit break-even, on a month-to-month basis, with a comfortable life style, at about month 18.   It will then probably take me another 4-5 more YEARS to recover the money I put in over the first 18 months. So - wealth-wise, I will break even for the whole period at about the end of year 6.   That means 6 years of working hard to just stand still, wealth-wise.  And I am not even assured of achieving my own projections.

Building wealth here is really hard.

Do you really have no clear image of the type of business you want to be in?  It seems VERY odd to be approaching the idea of running a business by simply looking for which businesses to avoid.

Cheers!

Indo-Siam

[ExpatsClub]

Bangkok Expats Business Club will start meetings soon. We will meet each month for networking and talking about running business in Thailand

Here you can learn valuable information.

We invite you to become a member. We are part of Bangkok Expats Club, starting out this coming Sunday. See under our own thread

Email us: [email protected]

Business Blog:   www.bangkok-expats-club.blogspot.com

BangkokExpatsBangkokExpats

[bouzin2]

Indo-siam

I wish i was one those rich eccentric like you say but no, I'm a guy who would like to be on permanent vacation and the only way to do it is to own my own business. I have mentioned what to avoid because you might know what have the highest rate of failure. I would like to open or start something that only Tourist would use but Thai as well.

I'm not sure what I would like to invest in yet but i have sometime.

[Sunbelt Asia]

Bouzin2,

The world economy is based on a foundation of shopkeepers and family owned enterprises. We feel that the professionally trained brokers of Sunbelt Asia offer a significant and valuable service to the marketplace.  We welcome the opportunity to work with you toward our continued mutual success. We have offices in Phuket, Pattaya and Bangkok.

ADVANTAGES OF INVESTING IN AN EXISTING BUSINESS

1.Actual results rather than pro-forma.

2.Immediate cash flow.

3.Trained employees in place.

4.Established suppliers and credit.

5.Established customers and referral business.

6.Existing licenses and permits.

7.Training by the seller.

ADVANTAGES OF INVESTING IN A FRANCHISE

1.Known name means instant recognition.

2.Proven product or service.

3.Ongoing support means you are in business for yourself but not by yourself.

4.Better than 90% of new franchises are successful.

5.Operating system in place-all the mistakes have been made!

6.Opportunity to add additional units within the franchise system.

THE 90% RULE:  FACTS ABOUT BUYERS SIMALAR TO YOU

1.90% of all buyers are first-time buyers.  In other

words, they have never been in business before.

2.90% of all buyers don't know what kind of

business they want or best serves their needs.

3.90% of all buyers are terrified and/or uneducated

in the business buying process.

4.90% (or more) will not buy the business that

was advertised or the one that they called in on to us.

5.90% of all buyers have from $15,000.00 to $50,000.00 in "Hip National Bank", that they are willing to risk.

We at Sunbelt are advocates of finding a business that you like and feel comfortable managing.  You, like every other prospective buyer, have a vision of being your own boss and calling your own shots.  An old saying in the real estate industry is…  “The three most important things a buyer should look for are location, location & location.”  While location is important to a business buyer, be aware that track record and management round out the three components of a successful business.  Let’s assume that you find a business that you like and its location is fine.  But because of poor management, the business may not show the greatest track record.  Purchased for the right price and terms, this business could become more successful with proper management making it a good way to achieve your vision of being in business for yourself.  And finally, be aware that many businesses sell for much less than they are originally listed… sometimes-even 40% less.  So, if it’s a business that you like, don’t be afraid to make what you consider to be a low offer.

The Process

The process of investing in a business is as follows:

•Evaluate the basic information on alternative businesses that sound interesting to you. Our inhouse lawyers will advise you how you can own a Thai business 100% as an American.

•Visit the business (if possible) without announcing yourself as a buyer (incognito) to get a “feel” for the business.

•Meet with the Seller, asking from general to probing questions on anything and every- thing, except actual price negotiations.

•Do your preliminary evaluation, based on the information provided by the seller to Sunbelt Asia and to you.

•Make an offer, assuming that all of the information you have been provided is correct, but include contingencies, which allow you to confirm such information.  Sunbelt Asia will show you how to write an offer to protect you as the buyer.

•Once a sales price is agreed upon, make a closer investigation of the business, confirming to your satisfaction the validity of your offer.

• Have documents prepared for the closing. This lawyer will not argue the position for either party, but drafts all necessary legal documents to comply with the agreement a buyer and seller have reached.

• Close the Investment, and begin your first day as the owner of your own business. The seller will assist in an orderly transition.

• You are part of the Thai Dream – You own your own business!!