How To Slowly Build Up A Business With Limited Capital

[garro]

I have lived in Thailand over six years and survive mostly through teaching these days. I have always wanted to have a bookshop, and it's my dream to one day achieve this in Thailand. I have a family and so a lot of financial commitments, but would like to slowly build up a business. I am prepared to wait a few years without profit as I will continue teaching for the next few years anyway. My aim being to be able to have a profitable business in about a decade. I know that there are a few bookshop owners on TV and would be interested in hearing your advice.

Edited November 29, 2008 by garro

[garyh]

With all due respect if your business is going to take 10 years to be profitable you need a better business plan. Another point is are book sales a growth sector in the market with so much happening online now?

[garro]

garyh, thanks for your reply. The reason I say ten years is because I am quite happy in my current employment for the moment, but would like to build something for later years.

I appreciate what you are saying about online sellers, but don't believe that they will have such a great impact on second-hand bookstores as many buys are impulsive and plenty of people don't want to wait weeks for a book to arrive in the post. Audio-books might eat into the book market, but there will always be those who like the idea of a real book in their hands - I believe. New print-on-demand technology might be a problem in ten years, but I can't see many people in Thailand being able to afford this technology even if the price of this wonderbox drastically reduces.

[jingjingna]

I think in this respect, I have been extremely 'lucky'. I rent office space out of which I have set up an English language Business. The owner lets me use her building's value/assets to raise the 2 million capital with one foreign work permit which is in my name. I am also the the M.D of the Company. The Business is approaching it's second year now without any hitches.

Business is smooth, hardly no advertsing as the parents kindly do it for me, wonderful!

If you have an idea, make loads of contacts, Thais and expats and listen /learn from them. Good luck!

[brahmburgers]

garro and any others who deal in, or plan to deal in publications, keep me posted.

I'm a writer/publisher with several unique books - most of which relate to Thailand and Thai language.

However, am always looking for ways to get better distribution. Am currently involved with projects dealing with properties, but am planning to get back to focusing on publications b4 2 long (aiming for summer '09). I also network with other authors and at least one photographer who specializes in 360 degree panoramic photos - who has put together a 2009 calendar of with impressive shots from Laos.

Some of our publications will be on CD or DVD.

[GuestHouse]

I think a good way to go about this would be to set it up as something of a 'hobby' that you may turn into a business. Maybe start on a specialist subject and build up and outwards. I think also a coffee shop/cafe with attached bookshop might work too and help recover some of your costs by having an alternative income stream.

The idea of a book shop appeals to me too, but I'd have trouble selling/renting them out as I've got a real thing going on about books and I loathe people damaging/abusing the books I have.

Hope you managed to get over your aversion to my Avtar in order to read this Garro!

[jingjingna]

forgive me for going 'off topic'....bookshops was the subject.

In my business I have in the past imported 'educational' books. I'll be honest to say that the sales of such books have yet to take off. However, I have also imported 'English Language DVD'S' and VCD'S, which are selling very well.

In my opinion, if you set up a book shop, new or second hand, be choosy about your location!

Wishing you success.

[garro]

GH; I was only joking about the avatar. I just like joshing with you. The idea of a hobby which eventually becomes a business is exactly what I have in mind. I do respect books, but don't mind the worn-look and have been even known to bend pages as a marker- I'm sorry if that makes your blood boil.

Brahmbugers; I too am a writer, and I am hopefully about to have my second published book released in the new year by a publishing house back in Europe. I would like to have a bookshop which will sell lots of varied material as well as things away from the mainstream. I also see it as a great avenue for selling some my own books which can't find a fit elsewhere.

jingjinga;I appreciate what you are saying about location and contacts. I am currently teaching in Lopburi, but will likely change location in a year or two. I will be careful about choosing a location with potential.

Edited November 30, 2008 by garro

[siam4ever]

Keep developing your idea! I worked at Shakespeare & Co. in Paris in the early eighties, staying in the guest writer's room for over a year. I fully support your idea and would throw in a small loan to help get it started perhaps, if others were on board and you had a decent plan. I really enjoyed your first book and look forward to the second.

Perhaps, you could add a small coffee shop with pastries and small sandwiches to add to income. This should be a wonderful time to buy up used books as soon as the airport reopens!

[garro]

Keep developing your idea! I worked at Shakespeare & Co. in Paris in the early eighties, staying in the guest writer's room for over a year. I fully support your idea and would throw in a small loan to help get it started perhaps, if others were on board and you had a decent plan. I really enjoyed your first book and look forward to the second.

Perhaps, you could add a small coffee shop with pastries and small sandwiches to add to income. This should be a wonderful time to buy up used books as soon as the airport reopens!

Thanks a million siam4ever, and I really appreciate your comments. I agree with you that a coffee shop/snack bar would be a good idea; although I would probably draw the line at chocolate.

[Tompa]

A few years ago I also had the desire to open up a small 2nd hand book shop. I must have 2-3000 books (most stacked up in boxes in a room upstairs) at the moment; most of them ‘inherited’ by a friend that moved back to Europe. In the end I never got around to it as I’ve been too busy with my main business which has been going pretty well.

I think you should think very hard before you jump into this. I don’t know how much you make as a teacher, but I’m guessing not over 60-70000 a month. Everything costs money and even if you’re expenses is not that high, you’re bleeding money into this project from your main source of income. Make a proper business plan and look at the worst case scenario.

For example, say you rent a small shop for 5000 you then need at least 1 staff managing the store getting at least 5000. There are other small expenses (not to mention start up costs) that all adds up. At the very least you would be looking at 15000b/month in expenses. Look at how long you can afford to loose this amount of cash. If you have the spare cash and really think you can make it happen, then do it. If you are unsure then I would strongly recommend against it. Also remember that even though you wouldn't be working in the shop, it still would require lots of your time.

Tompa,

[garro]

A few years ago I also had the desire to open up a small 2nd hand book shop. I must have 2-3000 books (most stacked up in boxes in a room upstairs) at the moment; most of them 'inherited' by a friend that moved back to Europe. In the end I never got around to it as I've been too busy with my main business which has been going pretty well.

I think you should think very hard before you jump into this. I don't know how much you make as a teacher, but I'm guessing not over 60-70000 a month. Everything costs money and even if you're expenses is not that high, you're bleeding money into this project from your main source of income. Make a proper business plan and look at the worst case scenario.

For example, say you rent a small shop for 5000 you then need at least 1 staff managing the store getting at least 5000. There are other small expenses (not to mention start up costs) that all adds up. At the very least you would be looking at 15000b/month in expenses. Look at how long you can afford to loose this amount of cash. If you have the spare cash and really think you can make it happen, then do it. If you are unsure then I would strongly recommend against it. Also remember that even though you wouldn't be working in the shop, it still would require lots of your time.

Tompa,

Tompa, I am hoping that because time is on my side ( I am in no real rush) that I can slowly fund this idea. I collect books also and would like to build up stock before doing anything. My wife will be able to run the business when my son is a bit older. I suppose there is no way to completely avoid risk, but I want to be as secure as possible.