What Business Could I Do To Stay In Issan.?

[neverdie]

THANKS FOR ALL UR HELP GUYS,,SOME INTERESTING REPLIES THERE,I SHALL TAKE HEED,DIDNT KNOW IT WOULD BE SO DIFFICULT....MAYBE LOOK INTO BUYING BAR NOW IN PATTAYA LOL

Sell sand to the Arabs. More chance of turning a profit. Check out other posts and the reactions to this suggestion. Never known anyone 'happily' running a bar. Even the farming equipment would make money twice a year.

Yes, most of the sand in the deserts of the middle east is NOT suitable for using to make concrete, so it is actually possible to sell sand to the arabs

[colino]

As I've been a part of 'business' in Thailand, I must say it's NEVER EASY. Don't even think about putting up anything unless you are sure about all the details. The most common mistake is to involve the family and pay extra since it feels so 'cheap'. Every baht counts if one is to survive in the business way.

I have some ideas for free:

1. Buy something and sell it in your home country - always an easy option since now the prices for logistics have dropped significantly

2. Esaan don't have too many internet shops like f.e. Chiang Mai so the return is quite good. 1-1.5 million would do the trick. 10K for rent, 15K for electricity, 15K for staff, income between 80-120K a Month (after expenses). Not great but one can survive.

3. Be a teacher...I know, there are plenty...but its income. No risks. Or get some other job where they need a native Briton (or wherever you were from).

Cheers! Bar I recommend only to those who can run them sober.

Number 2 is not an option.Spend all that money so people can sit and pay 10 baht an hour,

its the same as having a games place 10 ps2s 10 tvs loads of joysticks because the Thai guys bust them all playing footy games , not worth even thinging about it,

all the best

colino

[Geekfreaklover]

In Isaan computer based business is the way to go - as long as you have a fast connection. Building websites fo yourself or for other companies. Acting as an internet agent and then filtering the work down to local workers. House building services for example.

If you don't have computer skills then the options are very limited. Resturant, bars and hotels have a habit of not suceeding, although some do well.

I would advise against investing in agriculture type business as you can never own any of the business and can not work legally in these sectors. Situations with Thai partners have a habit of changing very quickly, especially when the law is not on your side.

Exercise caution and make sure you have some legal control in your venture.

I opened a limited export company a few back, based in Surin, now in Korat which is still ticking over ok despite the currency situation. Have a work permit, pay tax etc.

Best of luck if you decide to give it a go.

[Isee]

I opened a limited export company a few back, based in Surin, now in Korat which is still ticking over ok despite the currency situation. Have a work permit, pay tax etc.

I'm always interested in hearing what exactly constitutes an export business in Thailand. A lot will say they don't want to be specific as they don't want competition (big world imho) - but i suspect they are just running ebay auctions with locally produced stuff and sending it via airmail. Don't take that as a slur on your business, just curious if you would expand a little more on it.

Fair opinion on the ag business, it does require a bit of faith in your thai partner with you taking a behind the scenes management approach. But just another calculated risk to take into account as to whether it will work for you. I'm a bit surprised the OP just gave up so easily on his query.

[onni4me]

2. Esaan don't have too many internet shops like f.e. Chiang Mai so the return is quite good. 1-1.5 million would do the trick. 10K for rent, 15K for electricity, 15K for staff, income between 80-120K a Month (after expenses). Not great but one can survive.

Number 2 is not an option.Spend all that money so people can sit and pay 10 baht an hour,

its the same as having a games place 10 ps2s 10 tvs loads of joysticks because the Thai guys bust them all playing footy games , not worth even thinging about it,

all the best

colino

And this opinion is based on what? Experience or just a nice feeling? BS. Maybe you should instead of thinking the price for one hour compare hours per month to the cost of putting up the business.

As I said, every baht counts. Do spit on the 10 baht if you like, I don't as long as there are many of them.

30 computers x 10-15 baht/per hour + drinks + snacks has made very nicely in the two places I have been dealing with.

I don't like to run a bar since I don't like drinking every day. And the other factor is to provide service to Thais since there are so many...

[Geekfreaklover]

I'm always interested in hearing what exactly constitutes an export business in Thailand

An export business in Thailand is a buisness that exports goods from Thailand to other countries. Some businesses use the internet eBay or other hosted sights to sell. Others use containers or airfrieght. Some do all three. I'm an online seller, hence the name geek.

You can probably get away working on eBay without a company set-up if you keep a low profile. But if you get caught you have the risk of deportation or worse. There was a guy in Korat a while ago that got caught selling a bunch of fake football shirts online and ended up in prison (although I'm sure the guy had some prior hisotory with the BIB).

But the way things are going export is not the best business. Best to do something in country where you don't get hit by the currency exchange. The problem I've found in Thailand is that if, for example, you open a shop that does well, you have five shops suddenly open up next door seling the same stuff!!

Any other business success stories out there?

[kalasin]

I see two major catgories of oppertunities:

1) Copy one type of business that is already there

2) Make a type of business that is not already there

1) This would be the most safe area. The more vendors already, the more safe.

There is always room for an other food stall in Thailand. But expect low profit-rate, since the competion is tough.

2) This is a risky area. For every succes, there a huge number of failures. Just look at the IT-business. It is easy to see those companys that had (has) succes (e.g. Google etc..), but some of us remember the gigantic numbers of failures. But if you got succes - there should be a good profit waiting ahead.

However in Thailand it seems to me as if one company has succes, the neighbor will soon try to copy, which will lower the profit margin.

For a farang in Thailand I think the best way of getting a income, is a business where your qualitys as farang is important. Then it will be difficult to copy.

[Isee]

I'm always interested in hearing what exactly constitutes an export business in Thailand

An export business in Thailand is a buisness that exports goods from Thailand to other countries. Some businesses use the internet eBay or other hosted sights to sell. Others use containers or airfrieght. Some do all three. I'm an online seller, hence the name geek.

You can probably get away working on eBay without a company set-up if you keep a low profile. But if you get caught you have the risk of deportation or worse. There was a guy in Korat a while ago that got caught selling a bunch of fake football shirts online and ended up in prison (although I'm sure the guy had some prior hisotory with the BIB).

But the way things are going export is not the best business. Best to do something in country where you don't get hit by the currency exchange. The problem I've found in Thailand is that if, for example, you open a shop that does well, you have five shops suddenly open up next door seling the same stuff!!

Any other business success stories out there?

Thanks for replying to my question in the spirit that it was asked...I guess its not such a big world after all. Maybe you missed the last sentence in the paragraph where I nicely said "Don't take that as a slur on your business, just curious if you would expand a little more on it" If you don't want to answer the question then don't, just say so instead of trying to be smart about it.

Anyway lets sing together - Its a small world after all, itttts a small world after all.....

[imaneggspurt]

i looked into buying a harvester, had a brother in law to drive it but decided against it because

Could I really trust the driver not to wreck it, i was not 100% positive.

Difficult if not to impossible to collect when you harvest, small farmers do not always have cash in hand and by asking relatives when they pay for the reaper the answer most of the time was after they sell their rice, usually within two months???

You need excellent command of Thai and Farming to know how many Rai you are harvesting??

I have a sister in law who opened a small village shop selling beer, soda,necessary home supplies etc the profit margin is so small i do not believe they will stay in business much longer; her husband purchased a small rice milling machine has a small machine shop and does metal fabrication on order, they are trying very hard and not making a profit "yet"?

I too would like a small business to help keep me active and I come up with no good ideas.

I want to believe buying and selling rice could be good but with the economy the way it is I chickened out.

Best of lick to you Thailand is a great place to live if you are retired

Your last line written is spot on,

[Geekfreaklover]

I'm always interested in hearing what exactly constitutes an export business in Thailand

An export business in Thailand is a buisness that exports goods from Thailand to other countries. Some businesses use the internet eBay or other hosted sights to sell. Others use containers or airfrieght. Some do all three. I'm an online seller, hence the name geek.

You can probably get away working on eBay without a company set-up if you keep a low profile. But if you get caught you have the risk of deportation or worse. There was a guy in Korat a while ago that got caught selling a bunch of fake football shirts online and ended up in prison (although I'm sure the guy had some prior hisotory with the BIB).

But the way things are going export is not the best business. Best to do something in country where you don't get hit by the currency exchange. The problem I've found in Thailand is that if, for example, you open a shop that does well, you have five shops suddenly open up next door seling the same stuff!!

Any other business success stories out there?

Thanks for replying to my question in the spirit that it was asked...I guess its not such a big world after all. Maybe you missed the last sentence in the paragraph where I nicely said "Don't take that as a slur on your business, just curious if you would expand a little more on it" If you don't want to answer the question then don't, just say so instead of trying to be smart about it.

Anyway lets sing together - Its a small world after all, itttts a small world after all.....

You misread my reply. I was not not trying to be smart at all. Just answered a simple question with a simple answer.

Interesting how expats like yourself, look down their nose on people working online and at the same time want to know how to do it.

Edited February 15, 2009 by Geekfreaklover

[Geekfreaklover]

i looked into buying a harvester, had a brother in law to drive it but decided against it because

Could I really trust the driver not to wreck it, i was not 100% positive.

Difficult if not to impossible to collect when you harvest, small farmers do not always have cash in hand and by asking relatives when they pay for the reaper the answer most of the time was after they sell their rice, usually within two months???

You need excellent command of Thai and Farming to know how many Rai you are harvesting??

I have a sister in law who opened a small village shop selling beer, soda,necessary home supplies etc the profit margin is so small i do not believe they will stay in business much longer; her husband purchased a small rice milling machine has a small machine shop and does metal fabrication on order, they are trying very hard and not making a profit "yet"?

I too would like a small business to help keep me active and I come up with no good ideas.

I want to believe buying and selling rice could be good but with the economy the way it is I chickened out.

Best of lick to you Thailand is a great place to live if you are retired

Your last line written is spot on,

What - Best of lick?

[Dave the Dude]

Hi GFLover

I think the question that others are trying to say is..........

What do you sell?

Now that wasnt too hard was it,folks

Dave

[Isee]

You misread my reply. I was not not trying to be smart at all. Just answered a simple question with a simple answer.

Interesting how expats like yourself, look down their nose on people working online and at the same time want to know how to do it.

I'm not an expat, don't look down on you and don't particularly have a lot of interest in "learning" your operation. The OP asked for any ideas and your contribution was to say you've opened a "limited export company" - how does that help him?? and you didn't answer the simple question which was to expand on what you define as a "limited export company" as opposed to what I consider a proper company operation to be. If you are selling scented soaps or candles etc on ebay - so be it, if you are making a dollar or two over it good for you - but in telling us what exactly you export, how are we learning how to do it, how you are marketing the products, your established markets etc??? I take on board your fair comment that your neighbours find out how to do it there will be 5 shops (or whatever) next to you, but I think you could be a little less vague (like others who have replied) seeing as how you raised the point in the first place and still keep your million dollar company afloat. Noticed you put the line out for info on "Any other business success stories out there?", hope people replying are a little more forthcoming in their info to help you out who aren't worried about their neighbours.

BTW – I'm intrigued now, what’s the reference to the second part of your name "freaklover"??

Cheers

[Geekfreaklover]

You misread my reply. I was not not trying to be smart at all. Just answered a simple question with a simple answer.

Interesting how expats like yourself, look down their nose on people working online and at the same time want to know how to do it.

I'm not an expat, don't look down on you and don't particularly have a lot of interest in "learning" your operation. The OP asked for any ideas and your contribution was to say you've opened a "limited export company" - how does that help him?? and you didn't answer the simple question which was to expand on what you define as a "limited export company" as opposed to what I consider a proper company operation to be. If you are selling scented soaps or candles etc on ebay - so be it, if you are making a dollar or two over it good for you - but in telling us what exactly you export, how are we learning how to do it, how you are marketing the products, your established markets etc??? I take on board your fair comment that your neighbours find out how to do it there will be 5 shops (or whatever) next to you, but I think you could be a little less vague (like others who have replied) seeing as how you raised the point in the first place and still keep your million dollar company afloat. Noticed you put the line out for info on "Any other business success stories out there?", hope people replying are a little more forthcoming in their info to help you out who aren't worried about their neighbours.

BTW – I'm intrigued now, what's the reference to the second part of your name "freaklover"??

Cheers

Ok, sorry to be vague in my posts. No offence intended to anyone.

Firstly, the benefits of having a limited company in thailand means that you can work legally as a Farang and have control of the business that you operate. You become a tax payer and can hold a work permit, without which you should not be working.

If you are claiming benefits from overseas, or do not have the 2mill capital to open a limited company then the only other option is to invest in a business which you will never have legal entitlement to and if you are seen to be actively working in said venture than that would be seen as a violation of the stirct labour and employment laws in Thailand. I do beleive that if you are married to a thai then they can employ you in a partnership type business, but I know of no one that has done this and holds a work permit etc fo such a buisness. but, I am not a lawyer, so I don't really know.

But you asked what a limited company is;

A limited company is a company set up with an investment that is 'limited' i.e if your company makes huge losses then those losses can not be recovered under the terms of a limited company. This is the same in the USA, in Europe or where ever. A limited company is a business set up model all over the world and not one that only exists in Thailand. It's a common business model and nothing unique to Thailand. Trust you know all this already?

But as far as ownership of a limited company in Thailand is concerned ( a hot topic) there is a rule where you must employ 7 Thai nationals who must have a majority 51% ownership of the company. But there is a loop hole known as a "vote share agreement" where you, as a farang, can maintain control of the company.

As for what I do. I sell everything from Loatian hardwood furniture to Burmese hemp dresses. whatever sells I'll sell it. Export tax is 7% of the value of every item sold and the duty paid the other end. i've been working in Issan , and making a living for seven years.

As for the Freak lover part of my nickname- refer to the aforementioned Burmese Hemp Dresses.

God bless,

GFL.

Edited February 15, 2009 by Geekfreaklover

[Isee]

OK thanks for the effort in replying, you actually got to the point of answering the question in your last two paragraphs. Lost me on the explanation of the freaklover bit - but thats ok. You might note in my previous posts I asked what YOU considered a limited company was...I didn't ask you to explain what it was. I suppose I was trying to be polite about the point I was making and it got lost in translation by me trying to be too polite. BTW - the "loop hole" of different share classes is well known by most who know something about companies.

I have a question for you if you don't mind, have you ever exported foodstuff or only chattels? as I'm interested in exporting rice crispies and buffalo meat. Also, when you say the duty is paid for "on the other end" you mean to say you just add that amount to the invoice which is paid by the buyer, but your company is ultimately liable for payment to the Govt. Actually, isn't the 7% tax VAT, which is a consumption tax and therefore not applicable for export items (among other exemptions)??

Cheers

[Geekfreaklover]

OK thanks for the effort in replying, you actually got to the point of answering the question in your last two paragraphs. Lost me on the explanation of the freaklover bit - but thats ok. You might note in my previous posts I asked what YOU considered a limited company was...I didn't ask you to explain what it was. I suppose I was trying to be polite about the point I was making and it got lost in translation by me trying to be too polite. BTW - the "loop hole" of different share classes is well known by most who know something about companies.

I have a question for you if you don't mind, have you ever exported foodstuff or only chattels? as I'm interested in exporting rice crispies and buffalo meat. Also, when you say the duty is paid for "on the other end" you mean to say you just add that amount to the invoice which is paid by the buyer, but your company is ultimately liable for payment to the Govt. Actually, isn't the 7% tax VAT, which is a consumption tax and therefore not applicable for export items (among other exemptions)??

Cheers

I haven't exported food stuff. But my understanding is that consumable goods should be tax exempt, depending what the consumables are..Rice Crispies and Buffalo meat, should be 0%...I think alcohol has a high tariff, but most food stuff is 0%.

The duty is paid by the receiver at the other end and shouldn't need to be included on the invoice if you are offering a 'free on board' export service. There is a web link I have somewhere that details all the export costs, but it is not to hand at the moment. PM me and will send the link once I dig it out. Hope this helps.

Cheers.

GFL.

[rick75]

I wonder if any business owners have experience with the tea money culture, does someone who has a retail outlet have to pay handouts to the local cops or council, does the exporter who deals with customs etc have to pay a little on the side to grease the wheels, most businesses in Thailand seem to run on very small profit margins, what impact if any do these types of overheads have.

Cheers Rick

[ricklee]

Also, loan sharking is a good business in Isan.

Typical rates would be at least 1% per month, usually much more. It would probably be a bit hard on the health though!

Typical rates were from 3% up a month. I say "were" because most moneylenders are no longer lending due to the impending recession. Some would be borrowers who have been used to paying 5% monthly are now so desperate for cash that they are offering to pay 10% a month, and still finding no lenders.

In response to Isee's earlier post, the maximum permitted loan rate is 28% a year, which equates to approx 2.4% a month. Most (but not all) village people have no idea of this legal maximum, and when in default, have neither the will nor the money necessary to contest it. They will just forfeit their land or any other guarantee given.

Hi prakhonchai nick

Thanks for your input but I was shocked to see the permitted loan rate of 28% - which appeared to me to be very high. I'm not sure if that is a max rate for credit cards or what? Anyway, decided to track down the rate and according to section 654 of the Civil and Commercial Code it states the maximum being 15% p.a and any contract above that would be reduced to 15%. The section is under the heading of "Loan for Consumption". Could you clarify the source of your quoted 28% rate?

Thanks

The "permitted loan rate" and the actual rate the loan sharks charge have nothing to do with each other. That's why they call them "sharks". When I lived in Viet Nam the moneylenders on the street were getting 10% a month.

My wife and her family are running a little "minimart" in front of our house and, yes, the margins are slim but it's bringing in enough to feed us all and put gas in the vehicles. They love doing it as it puts them in the middle of the neighborhood social circle. They have a great time. It was a very small investment and pays small but steady dividends every day. And I don't have to walk far for a beer

[Dave the Dude]

The "permitted loan rate" and the actual rate the loan sharks charge have nothing to do with each other. That's why they call them "sharks". When I lived in Viet Nam the moneylenders on the street were getting 10% a month.

My wife and her family are running a little "minimart" in front of our house and, yes, the margins are slim but it's bringing in enough to feed us all and put gas in the vehicles. They love doing it as it puts them in the middle of the neighborhood social circle. They have a great time. It was a very small investment and pays small but steady dividends every day. And I don't have to walk far for a beer

Same same

Dave

[Isee]

The "permitted loan rate" and the actual rate the loan sharks charge have nothing to do with each other. That's why they call them "sharks". When I lived in Viet Nam the moneylenders on the street were getting 10% a month.

errrr yes I know what the difference is between a loan "shark" and a loan from a bank or other recognised financial lender and yes I know these rates can be up to 10% per month or even more (5% per day) with a "shark"....but you have to read what I said in context.

1. prakhonchai nick made the statement "permitted loan rate of 28%" - I interpreted that to mean a rate which is legally enforceable and that is what struck me as odd as I didn't think it was that high and hence why I went and looked it up.

2. Going back to the initial suggestion of others about money lending, I said (in a nutshell) that the loan sharks have to use other tactics in recovering their money when a default occurs because their rate is in excess of the legal maximum. The amount of trouble you could get into with lending money at these excessive rates as a farang is just not worth it as I feel you would wind up having a target on your back when someone doesn't want to pay you back or simply thinks they don't need to pay you back because you are a farang (whether or not you go through your wife etc). However, if the "permitted loan rate" was as high as 28% - then enforcing your loan agreements is a lot easier as you would have the backing of the law instead of going around knee capping people or whatever loan sharks do.

The other thing is that I seem to recall reading somewhere that only recognised THAI financial institutions could register a mortgage on property (farangs definitely cannot). I've heard that these loan sharks take the paper chanote of property as security - but the reality is thats a false security as the lender couldn't do anything with it as the borrower could still deal with the property during the loan term (ie: sell it, mortgage it to a bank etc) by getting a new paper chanote issued. Yeah they might be in the bad books with the lender, but thats not going to get their money back. I'm just speculating here, but if there was a problem and it was known that a farang was in the background, I reckon that everyone would think that getting your money back (no interest) would be a good outcome. The question one has to ask themselves is if thats going to be the case, why risk your money in the first place?

Do you know what the maximum loan rate that can be enforced at law?

[onni4me]

I wonder if any business owners have experience with the tea money culture, does someone who has a retail outlet have to pay handouts to the local cops or council, does the exporter who deals with customs etc have to pay a little on the side to grease the wheels, most businesses in Thailand seem to run on very small profit margins, what impact if any do these types of overheads have.

Cheers Rick

Those who live and exercise any form of business in Thailand surely get education in these 'treats'.

However, since I myself have Thai staff and don't deal on anything myself there are no real problems so far...er...sometimes boys in brown appear selling some Buddhist book 10x more its value but that's quite normal, I guess. This happens couple of times a year.

We apply all the regulations that we are aware of and make all the licenses. the problem is that sometimes they change the rules and new papers are needed. Two times theres been a fine around 4000 Baht each time but those were due to lack of knowledge.

What comes to exports, I use logistics company door-to-door. Never any problems. They pick up, pack, make papers, customs clearance is provided etc. Very professional. The fees are not much more than you would pay yourself. I recommend this option if you consider exporting. choose a big company that also deals in your country of origin.

Cheers!

Edited February 16, 2009 by onni4me

[Isee]

Hi omni4me,

Thanks for the useful information. Do you have a link to the company that are using? I'm not sure if you are talking about a company name or a "door to door" service such as Fedex, DHL, UPS, TOLL etc. I've read various feedback on some of these companies, some of which lacked any praise to say the least, so curious which one you are using which you've never had a problem with. Are you sending things out to one country or worlwide?

Thanks

[prakhonchai nick]

Hi prakhonchai nick

Thanks for your input but I was shocked to see the permitted loan rate of 28% - which appeared to me to be very high. I'm not sure if that is a max rate for credit cards or what? Anyway, decided to track down the rate and according to section 654 of the Civil and Commercial Code it states the maximum being 15% p.a and any contract above that would be reduced to 15%. The section is under the heading of "Loan for Consumption". Could you clarify the source of your quoted 28% rate?

Thanks

Isee

I mentioned the 28% maximum rate as in all honesty I recall reading this last year (must have been in 1 of the 2 English language newspapers.) Furthermore, shortly thereafter I recall being told that the local gold shops had reduced their rate for taking in gold from 3% a month to 2% to comply with the new ruling.

Having searched the internet thoroughly, I cannot find any suggestion of this rate, and the rate of 15% under the Civil and Commercial Code would appear to be the maximum.

Having said that however, why then have Kasikorn bank (K Bank) recently announced their maximum rates for credit cards has been reduced to 20%

Whatever, the Loan sharks continue to operate and generally quote rates of 5% a month up, with no problem from anyone.

[rockyysdt]

You can probably get away working on eBay without a company set-up if you keep a low profile. But if you get caught you have the risk of deportation or worse.

Hi Geek.

Interested in your foray into online sales and export.

If your market is Australia, the Thai Australian free trade agreement (TAFTA) means that the duty of many goods and services have been or will be radically reduced which might make it easier to turn a profit.

Examples:

Textiles, Clothing and Footwear - between 12.5% to 4% duty ranging to zero by 2010

Other - zero tariff

You mentioned, quote: "But if you get caught you have the risk of deportation or worse".

What specifically is the issue here?

Is it illegal?

Under which circumstances would it be legal?

PS: Out of interest, what do you principally export?

cheers

R

Edited February 17, 2009 by rockyysdt

[Isee]

Having said that however, why then have Kasikorn bank (K Bank) recently announced their maximum rates for credit cards has been reduced to 20%

Whatever, the Loan sharks continue to operate and generally quote rates of 5% a month up, with no problem from anyone.

Probably because credit cards are a different kettle of fish and treated differently every where in the world - on essence they are a line of credit as opposed to an amortised loan.

Yes I agree that the loan sharks seem to operate without any problem (that we know - but you do hear of some news stories where things go wrong from time to time), but I'm wondering whether that would be the case with a farang in the equation. Something I wouldn't want to test. I have a thai friend who lent some money to one of her "good" friends with a 'just below the loan shark rate' and her friend disappeared when it came time to repay and of course, her parents haven't heard from her to this day....hmmmmm.

[Geekfreaklover]

You can probably get away working on eBay without a company set-up if you keep a low profile. But if you get caught you have the risk of deportation or worse.

Hi Geek.

Interested in your foray into online sales and export.

If your market is Australia, the Thai Australian free trade agreement (TAFTA) means that the duty of many goods and services have been or will be radically reduced which might make it easier to turn a profit.

Examples:

Textiles, Clothing and Footwear - between 12.5% to 4% duty ranging to zero by 2010

Other - zero tariff

You mentioned, quote: "But if you get caught you have the risk of deportation or worse".

1) What specifically is the issue here?

Is it illegal?

2) Under which circumstances would it be legal?

PS: Out of interest, what do you principally export?

cheers

R

1) Working without a work permit is ilegal. You need to have a company set up or be employed by a comapny.

2) Having a work permit and an export license.

If you start exporting without the above, and make good money you will probably get into some bother with the department of labour.

Interesting about Australia. But the curency exchange will hurt with or without tax duty breaks. If you are being paid in aussie dollars you will not get much back in Thai Baht. I have a friend who is currently making a loss on each container sent to Aus.

[rick75]

Thanks for the reply onni4me, its something that I could see impacting heavily upon businesses, especially in retail outlets that are known to be owned by Farangs, down in Pattaya for instance I am sure every man and his dog comes through every other month to issue on the spot "fines".

[Cuban]

...in retail outlets that are known to be owned by Farangs, down in Pattaya for instance I am sure every man and his dog comes through every other month to issue on the spot "fines".

If you are legal and have all the paperwork and licences in order, the only people that come through is immigration to check that you do have the bits of paper and number of staff required to support your WP, then the other costs (fully documented and receipted taxes etc.) when your visa or WP is extended. If you work outside the framework you are open to 'extra' payments, I suggest those rates will only increase with time/success.

Loan sharking requires enforcement, otherwise the first customer that fails on hard times will be seen as a 'test' of your company policy, try to enforce the payment by taking their motorbike, car. house and I'm sure that the police will side against you. Having a police member in the family to support such a buisness would seem wise - and those that can are probably already doing so. I know one such operation near my home, and the police involvement is clear.

In some of the posts abvove the key word has not been highlighted, the word is hobby.

Consider who will in real life give you money. Always follow the cash, understand the process.

A farang in Issan based business might depend on other farang as customers, so you are probably talking about farang food, in which case your issue is supply chain and distribution or a bar. I wonder where I could find an example of that business plan?

As for food, waste of time considering basic food items unless you have the parking space for the tens (hundreds?) of trucks carrying container loads down to the docks for your chartered ship. There are middlemen that have the small to medium to large scale wholesale market sewn up. Your transport costs kill any profit. If you do manage to add value to a prepared food, getting food hygeine to a standard suitable for export can be difficult unless you have a factory, comes back to investment capital and WPs etc. How many million baht are you investing in the startup?

If you have a brain and can see better ways of doing things locally you can make a few baht on existing processes, but the big bright idea will be copied quickly and then ran at a lower cost to undercut you.

This forum has had a few write ups of working ideas, but you really shouldn't be seen to be doing anything yourself. Why do you think so many farang bar owners sit at their bar with a bar and a little wooden check-bin in front of themselves, just another customer.

Try fish farming for your own domestic use - see how that goes, many household try that for raining season, uses up left over food and some duck droppings. get the wife to talk to the market supervisor about a pitch to sell any excess. Count the cost of everything, including your time and you will find out how many Kg per week you need to clear so the hobby pays for a well earned beer.

[onni4me]

Hi omni4me,

Thanks for the useful information. Do you have a link to the company that are using? I'm not sure if you are talking about a company name or a "door to door" service such as Fedex, DHL, UPS, TOLL etc. I've read various feedback on some of these companies, some of which lacked any praise to say the least, so curious which one you are using which you've never had a problem with. Are you sending things out to one country or worlwide?

Thanks

I wasn't referring to UPS or DHL. They are expensive and only good if you have a regular deal with them. They mostly suggest air cargo which runs around 400 Baht per kilo. The Thai Post is cheaper and as effective.

What I meant where the real logistic companies like DSV Air & Sea, they deliver to most countries and have services available. Since I am talking about exporting large trunks or amounts, they are normally costing about transport inside Thailand (Udon in my case) 4000 Baht + paperwork (customs clearance etc.) 10.000 + packing and placing stuff on pallets + sea transportation (per cubic meter around 5000 baht, there is a weight limit per m2) + transport to your premises in your country.

The more you transport, the cheaper it gets. If the load is more than 10 cubic meters than you should consider renting a container, They have small ones from 30ft up and they come dirt cheap nowadays.

When you establish a relationship with the company, the easier it gets. I have seen the services getting better all the time. You should also ask for an estimate before you order anything where is listed all the expenses. Like if they have to load the container - it costs, if they need to unload the container - it costs, if they need to storage something temporarily - it costs and so on. Cheapest way is to ask them to deliver you the container, load it yourself and unload it in the destination. The import taxes and so on you need to pay yourself but they provide the paperwork, you just give them the necessary documents (normally copies of originals sent through email).

You should ask for offers before. Don't use any of those small shops that advertise logistics services, they are just middleman. You can find a lot of bigger and smaller companies from the net. Do check that they serve you both countries, otherwise there is no guarantee.

Hope this gives you some idea.

[buffaloe]

dmax,i am still in the states as of now and will be in thailand at the end of july.i will make a suggestion.i am thinking serious on a pond.i think it may be good income in this my friend.as of now i really do not know,but i am really thinking about going ahead and doing thatwhen i come to thailand.the pond can not be dug until after the rainy season though.