Money changers in Pattaya

[sgunn65]

I originally posted this under another name as I wanted to remain anonymous (see one of my tips!!) but it was removed as it is against forum rules to have more than one account. I toyed with leaving it but I want to give some hope to those of you who want to live in LOS and do, or want to do, business here. There are many who say that it is almost impossible to start a business here and make money. It isn't, I have done it. And you don't need to have a huge capital resource to make it happen.

However there are some rules and, of course, many risks. So here is my, admittedly flawed, guide to making a successful business here.

Start with what you know. By that I mean you need to know what you are doing. Just because you drink does not mean you can run a bar.

Look at what is here already. Does Pattaya need another British Pub showing the footy?? Not really. Does it need a Café Del Mar offering chilled music and the type of atmosphere you rarely see in Thailand? Maybe not but then again the right person could make it work.

If you can find a business that no-one else is doing there are 2 reasons. One: there is no call for it. Two: No-one else has thought of it.

Does your business depend on Tourism? This limits you. In terms of venue and times you can make money.

Do you depend on Thai's? This limits you as the majority are poor.

Be realistic. Do a profit and loss spreadsheet and be realistic about what you can make.

Marketing. If you don't know how to sell your business you will have to rely on passing trade. So learn marketing or factor in the cost of someone to do it for you. This can be a commission only post but make sure you pay well and pay on time. If you try to do your salespeople they will not sell for you. The amount of people I have seen who make their sales team wait for their money or find ways to reduce their commission if they do well is scary. If your team are earning more than you then be happy. Your time will come.

Spend some money on a decent website. Most of my business comes from my website.

Start up costs. These will always be more than you think. I thought I would need one car and have ended up with an SUV, a minivan and a truck.

You will also need to finance yourself whilst you are setting up. This took me six months. Factor this into your costings.

Remember your first customers maybe a while coming. How long can you keep going for if the customers don't come?

Running Costs. Sensible business men will say you need 6-12 months running costs in order to open a business. Good advice but sometimes not practical. I had £65,000 from the sale of my flat. All the money I have in the world. It cost me £45,000 to get started and the £20,000 left gave me 2 months running costs. No customers in 2 months and I would have lost everything. Which brings me to my next point;

Be prepared to lose everything. Nothing ventured nothing gained. If you open a business you are not guaranteed to make it work. In Britain 75% of all new businesses go bust in the first year.

Remember why you are here. You may have come here on holiday many times and loved it. But now you are here running a business and acting like you are on holiday is a fast track to bankruptcy.

Work Hard. See previous point. Be prepared to put in long days, 7 days a week. I rarely work less than 12-14 hours a day and had my first days off last week 7 months after starting up.

Get someone Thai to do the paperwork. Work permits, etc need a Thai, there is no getting around that. A good administrator can save you thousands and put off the ulcer.

Trust yourself and no-one else. How many people have opened businesses and left them with Thai managers whilst they go out on the lash with their mates and wonder why they aren't making anything? Not all Thai's will rip you off. But if you pay low wages and expect people to work long hours they may want a little more payback. Be there. If you have a partner (business or otherwise) be sure of them. I control all the finances and, so far, have not felt like ripping myself off.

Don't spend it yet. I have made a fair bit of money in the last seven months. I still pay myself less than any of my ex-pat staff. I have recouped my investment but now keep it as my back up money to see me through the slack times. The Rolexes and Mercs can wait; I am too busy to enjoy them anyway. But I think that just because I am doing well now it may not last. I can still go bust but at least I know it won't be in the first year now.

Keep your counsel. There are a lot of ex pats and Thai's who don't like success and their jealousy combined with time on their hands could see them wishing you ill. Gossip can be dangerous. Don't give it the big one as we say at home.

I have now been in business 7 months. I have recouped my initial investment and am on course to net a decent profit in my first year. However it could all turn to crap. But it shows that it can be done with some application, thought, desire and a willingness to work hard.

This is not a gloat or a comprehensive business plan. I am sure some of you could tell us better ways and some of you will think why come out here and slog your guts out. Well I intend to be here a long time and I hope to retire with enough money to live comfortably. I don't have a big pension coming (I am not yet 50) no assets and apart from the 65K I started with; no money. So if I didn't do this I would be back in the UK running to stand still. Here I can pop down to the pool for a swim and since I do a bit of travelling for business enjoy the delights of Bangkok occasionally. Most of all I am my own boss and its always easier putting the hours in for yourself than for someone else.

I hope those of you that are thinking about working here get some benefit from this and I wish you the best of luck. To those of you who want to tell me I am an idiot; don't bother I know that already!

Edited November 20, 2008 by sgunn65

[mikethevigoman]

I think i just got deja vu !, have i not been here before

[mikethevigoman]

All joking aside i think there is some good advice here,Especially keeping your cards close to your chest,.i know a very wealthy man back in the uk and whenever you ask him hows he doing he always replies the same " struggling ". he has no enemies as far as i know ,..but what you need more than anything in thailand is some "business sense ", you can give some people a million pounds and they will be skint in 12 months if they havent got "it",.good of you to share your experience though, good luck,.

[sgunn65]

You may well have! See the first line of the post.

[dingdongrb]

I think i just got deja vu !, have i not been here before

Yepper, me too.... At least I can now shed my straight-jacket as I wasn't hallucinating....

[lannarebirth]

Congratulations on your success.

[hyperdimension]

Thank you for sharing your experience.

I think it was quite a big risk that you took when you put all of your life savings at stake into investing in a business here. It's certainly not recommended to put 100% of life savings into any single risky investment, and a start-up business in Thailand would be considered high risk. It's far safer to diversify investments, i.e. spread your money across a variety of investments, some of which are risky and others which are not.

It must also be emphasized that no matter how good someone is at something and regardless of how much time and effort is expended, it still may not work because the demand simply may not be there, or even if there is, demand can change, or the rules/laws can change. These and many other things that have not been mentioned here would need to be considered before diving into any venture.

Can you give a breakdown of your start-up costs? What are the running costs? How many employees do you have now?

What is your web site address?

Edited November 22, 2008 by hyperdimension

[lordofdelusion]

It's a well written post and good luck to you. But if I wanted to work that many hours and sweat bullets, I would have stayed at home and made a ton of money. I think most come here for some relax time and to enjoy the cost of living. My limited experience with Thai business through friends and family tells me that this is a nice place to visit but very difficult business environment. I'm off to the park with my daughter.

[RAZZELL]

And what exactly are you doing?

RAZZ