Buying An Existing Business

[ThaiPauly]

I will keep this to bullet points as the last long post on this subject did nt make it to the forum

My Wife is buying a Coffe Shop

The price has been agreed at 450,000 Bht

Owner wants 1/3rd now

The rest in September when my wife takes over although I have said she will have to wait another two weeks for the last 1/3rd to ensure everything stays behind that she said would

Landlord is providing new lease (Have met him)

My Wife starts traing 1st August.

Is 1/3rd deposit now too much. Should we say 50k deposit then 250k 1st sept and the balance 2 weeks later?

What documentation do we need , do we need a lwayer, everything seems so laid back?

Cheers

TP

[sonong1]

I will keep this to bullet points as the last long post on this subject did nt  make it to the forum

My Wife is buying a Coffe Shop

The price has been agreed at 450,000 Bht

Owner wants 1/3rd now

The rest in September when my wife takes over although I have said she will have to wait another two weeks for the last 1/3rd to ensure everything stays behind that she said would

Landlord is providing new lease (Have met him)

My Wife starts traing 1st August.

Is 1/3rd deposit now too much. Should we say 50k deposit then 250k 1st sept and the balance 2 weeks later?

Cheers

TP

<{POST_SNAPBACK}>

I would suggest you contact Sunbelt Asia or Steve Sykes Siam something? I think they are both sponsors of this forum.

Edited July 21, 2005 by sonong1

[ThaiPauly]

I will keep this to bullet points as the last long post on this subject did nt  make it to the forum

My Wife is buying a Coffe Shop

The price has been agreed at 450,000 Bht

Owner wants 1/3rd now

The rest in September when my wife takes over although I have said she will have to wait another two weeks for the last 1/3rd to ensure everything stays behind that she said would

Landlord is providing new lease (Have met him)

My Wife starts traing 1st August.

Is 1/3rd deposit now too much. Should we say 50k deposit then 250k 1st sept and the balance 2 weeks later?

Cheers

TP

<{POST_SNAPBACK}>

I would suggest you contact Sunbelt Asia or Steve Sykes Siam something? I think they are both sponsors of this forum.

<{POST_SNAPBACK}>

Thanks sonong 1, but as I understand it they are business brokers and this is a priivte sale.

[baht&sold]

Pauly, glad to see you getting back in the saddle, hope you're doing great.

Perhaps the owner would let your missus go thru the training first, just to see if she likes it and giving you both time to better assess viability, prior to making a deposit?

(assuming the cafe isn't about to get snapped up by someone else- unlikely in the low season?)

At the least, the owner gains some free extra help for a bit and you and the missus get to kick the tires close up. Regardless, 10% deposit should suffice.

[~G~]

You didn't mention which agreement you are about to sign with the owner, if any? I'd go to a lawyer and have all the agreement details in writing, to be signed by both sides before you give the owner any payment.

Then 10% on signing the agreement.

The rest? depends on you negotiation skills.

[Vit42]

My wife's sister just sold both of her coffee shops just north of downtown bkk and it was all privately done w/o lawyers or any documents drawn up by a pro. I guess it depends upon who your dealing with and how much you can feel you trust them as to whether or need a legal pro. Of course some papers need to be drawn by you and definitely get signatures on the agreements.

As to the downpayment, it just depends upon what you think you can negotiate w/o making the other party feel as if your not seriously or as if they were being takened advanage of. Go as low as you need to but in the end you just have to feel comfortable with the decision.

Just to note, my wife sis built her 2 shops from the ground up and operated them for 2 years. She sold them on my advice and analysis of her financials. In other words, she was losing too much money and the only reason she stayed solvent was that she subsidized the business with her "day" job. So be sure you want in on this business and look at the financials of it before you buy. If they don't want to show you, i would walk away unless you see a hidden opportunity in the deal.

[sonong1]

I will keep this to bullet points as the last long post on this subject did nt  make it to the forum

My Wife is buying a Coffe Shop

The price has been agreed at 450,000 Bht

Owner wants 1/3rd now

The rest in September when my wife takes over although I have said she will have to wait another two weeks for the last 1/3rd to ensure everything stays behind that she said would

Landlord is providing new lease (Have met him)

My Wife starts traing 1st August.

Is 1/3rd deposit now too much. Should we say 50k deposit then 250k 1st sept and the balance 2 weeks later?

Cheers

TP

<{POST_SNAPBACK}>

I would suggest you contact Sunbelt Asia or Steve Sykes Siam something? I think they are both sponsors of this forum.

<{POST_SNAPBACK}>

Thanks sonong 1, but as I understand it they are business brokers and this is a priivte sale.

<{POST_SNAPBACK}>

Yes but then again they are experienced in doing business in Thailand - it may cost you a few baht but then it may well be baht well spent.

Think along the lines of buying a house you then pay professionals to certify Structure, Elec, white ant etc - better to spend a few dollars and receive advice from the experts I believe.

[bino]

So be sure you want in on this business and look at the financials of it before you buy. If they don't want to show you, i would walk away unless you see a hidden opportunity in the deal.

Buying an existing business is a tricky matter. Usualy they don't have much value- only the value of any "assets" such as machinery, equipment, furnishings etc. (And, considering that I saw your posting looking for a commercial grade coffee machine, it would seem that there isn't so much in this regard.)

As Vit mentioned, do insist on a good look at the financial status of the company. Every Thai company is required to file an annual report that is verified by an independent auditor (which isn't cheap). Ask to see these, make sure that they are complete and current. If they are not, you can just be buying a nightmare of auditing charges, back payments, fines to the revenue bureau, etc. I learned this one the hard way- by taking over the management of a comany that the previous manager had neglected.

Of course, make certain the company is profitable. The perceived value of a company is mostly what I call "good will"... customer base, etc. If this doesn't exist, the company has no real value. As the old mantra dictates, location is everything. If these coffee shops are in high traffic areas, they should prosper. But, at the end of the day, the locations are only leases, which are a cost / liability.

If anything about the deal seems unordinary, or if the seller refuses to disclose the status of the company- walk away from it. Register your own fresh clean company and find your own locations, and new equipment / furnishings. It will probably work out cheaper and save you a sh*tload of grief and headaches.

My 2 satangs- for whatever it is worth.

[ThaiPauly]

Thanks for the responses so far guys, keep em coming.

The business has only been running for five months, and the owner is selling because she has split from her Partner and wants to move out of the area.

There are NO autited accounts, just a book with the last 4 months profit and loss.

It seems to me to have BIG profits in high season and no or v.little profit in low season. It is not really a Coffee Shop as a restarant. I want to add Coffee and Cakes and westrn food as a lot of farang pass through the area and there is nowhere to get a sandwich, good homemade cakes and pies etc, so my idea is to expand it. There are new shops (Mall) being built all around it so when they open in time for high season I can see it as a real money maker.

Reading the posts I am going to offer 10% deposit, she can have the rest when she goes, its only 6 weeks and if she cant wait then there is something fishy, but as I say have met the Landlord and he has a big vision for the immediate area, and I have a big vision of what could be acheived with some money spent on it.

Question is should I get a legal dicument drawn up? When I asked about tax, she said she did not pay any??

Staff it would seem are paid cash and we pay their tax (top salary is 6,500 baht down to 5,000)

Any more comments would be appreciated

Cheers for the help so far

TP

[capco1]

Are you paying the full asking price for the business or did you negotiate an offer? I myself would not venture into a business that has only been established for a few months.....Huge RED flag! I would strongly advise you to contact the folks Sunbelt Asia, to the best of my knowledge they don't charge you but instead put the cost on the current business owner, I think it's like 10% of the selling price....But that way you have somebody working in your favor. I would do a lot more homework on this business before ANY money has changed hands. You might find yourself stuck with that white elephant that drains you financially dry.

Just my advice!

Remember what you're daddy told you.......If it sounds to good to be true....It probably is!

Would you sell your gold mine for fairy dust?

[bangbuathongben]

Just out of interest where is the shop, might come along and try a sarnie!

[ThaiPauly]

Just out of interest where is the shop, might come along and try a sarnie!

<{POST_SNAPBACK}>

They don't do sarnies YET, thats my point!

The woman spent 1m baht doing the place up and it shows, im getting it for less than half that. We sat in there for 4 and a half hours yesterday afternoon and they took around 1,500 baht, not much by our standards I know, but some days their books show 400 baht for the day in low season!

We are only buying the business to give us something to do, fact is we dont need to work at all, but beleive this place has potential to maybee make 500,000-600,000, baht a year, which is all I am looking for, I had a quite large business in the UK which I sold for a lot to move here. I lost 1m baht in BK in 3 months when I tried to replecate what I did in the UK. The most I can loose over 3 years is the same, and thats if we never sold a thing, we can open when we like , shut when we like, shut it down in low season, or open longer, its our choice , but it is not out of nccessity. I am not in essence buying it to make money but as a hobby as my Wife previously owned a beauty salon and there are 100's of them in CM, this place has a unique location and huge potential to expand, its also got a big airconned office for me to hide away in and do a bit of e-baying

I hope this clarifys things a bit, but ALL of your posts are read carefully and very much appreciated

Please keep them coming.

Cheers

TP

[Harmonica]

its also got a big airconned office for me to hide away in and do a bit of e-baying

Just out of interest where is the shop, might come along and try a sarnie!

They don't do sarnies YET, thats my point!

The woman spent 1m baht doing the place up and it shows, im getting it for less than half that . We sat in there for 4 and a half hours yesterday afternoon and they took around 1,500 baht, not much by our standards I know, but some days their books show 400 baht for the day in low season!

We are only buying the business to give us something to do , fact is we dont need to work at all , but beleive this place has potential to maybee make 500,000-600,000, baht a year, which is all I am looking for , I had a quite large business in the UK which I sold for a lot to move here. I lost 1m baht in BK in 3 months when I tried to replecate what I did in the UK . The most I can loose over 3 years is the same, and thats if we never sold a thing, we can open when we like , shut when we like, shut it down in low season, or open longer, its our choice , but it is not out of nccessity . I am not in essence buying it to make money but as a hobby as my Wife previously owned a beauty salon and there are 100's of them in CM, this place has a unique location and huge potential to expand, its also got a big airconned office for me to hide away in and do a bit of e-baying

I hope this clarifys things a bit, but ALL of your posts are read carefully and very much appreciated

Please keep them coming.

Cheers

TP

Severity of outpoints denoted in color, 10 being the max -- orange equals 5, red gets the ultimate, 10

Predictable outcome: shown in blue

Conclusion: give the 450,000 to charity, do the ebaying from home and do nothing, absolutely not a thing!

[The_Moog]

Have they given you audited/ unaudited accounts .

Eg Balance Sheet.

Monthly Cashflow.

Profit and Loss Statement.

All the numbers they show are lies and are designed to con you.

[OxfordWill]

They are motivated to sell, so forget that you don't really -need- this project, and pretend as if it's your rice and water to ensure you don't end up with difficult problems with government later down the line.

[ThaiPauly]

Oh dear, this is getting worse and worse. I have looked at over 20 Businesses for sale here and rejected them all as the figs did not make any sense. but she has her heart set on this one, it s a case of "You always promise then take it away. She wants a bit of independance and make her own money to take care of her family instead of me doing it (although I will be shelling out the 450,000 plus.)

But I can see more potential in this than any other I have seen so far to be honest

I cant sleep I went to bed at 10.30, now I am here looking for more responses.

Thanks all for posting, not what I really want to read but I respect your opinions,which is why I posted.

Keep em coming, even though they are making me CRINGE

Every one is appreciated

TP

[Vit42]

Oh dear, this is getting worse and worse. I have looked at over 20 Businesses for sale here and rejected them all as the figs did not make any sense. but she has her heart set on this one, it s a case of "You always promise then take it away. She wants a bit of independance and make her own money to take care of her family instead of me doing it (although I will be shelling out the 450,000 plus.)

But I can see more potential in this than any other I have seen so far to be honest

I cant sleep I went to bed at 10.30, now I am here looking for more responses.

Thanks all for posting, not what I really want to read but I respect your opinions,which is why I posted.

Keep em coming, even though they are making me CRINGE

Every one is appreciated

TP

<{POST_SNAPBACK}>

When you don't know what you're getting into, then it's like gambling. Hedge your bets, do your homework, and limit your risks. You seem to be doing the right thing so no worries mate. You've looked at other opportunities and think this one is the best. You've spoken to the sellers and feel somewhat confident that they are legit. Your partner (wife) is all for it. You're not putting all your marbles on the table and staggering your investments.

Last thing you need to do is have an "exit strategy". Like when you walk into a casino, expect to lose and have a limit knowing how much and how long you're willing to play. If you win, great! If you lose, no sweat, we all gamble sometimes.

Get some sleep and remember that you'll be ok if you limit your investment to an amount that can be written off as a total loss.

[baht&sold]

Oh dear, this is getting worse and worse. <SNIP>I cant sleep I went to bed at 10.30, now I am here looking for more responses.

<{POST_SNAPBACK}>

Pauly, for goodness sakes, if you're having premature buyers remorse (a good thing imho- wish I had that instinct sometimes) just knock it and you on the head already and take a step or two back... breathe n sleep are far preferable to jump n regret...

Have a good rest and all the best!

[donx]

Oh dear, this is getting worse and worse. I have looked at over 20 Businesses for sale here and rejected them all as the figs did not make any sense. but she has her heart set on this one, it s a case of "You always promise then take it away. She wants a bit of independance and make her own money to take care of her family instead of me doing it (although I will be shelling out the 450,000 plus.)

But I can see more potential in this than any other I have seen so far to be honest

I cant sleep I went to bed at 10.30, now I am here looking for more responses.

Thanks all for posting, not what I really want to read but I respect your opinions,which is why I posted.

Keep em coming, even though they are making me CRINGE

Every one is appreciated

TP

<{POST_SNAPBACK}>

I'm not going to give you any business advice. Others here can provide that better than I can. I do, however, empathize with you. I sense that you won't be able to change your wife's mind on this one. Sometimes you just have to go along with what she wants to do so long as it is not going to cause too much financial hardship for you.

All the best to you no matter what you end up doing.

[ThaiPauly]

Oh dear, this is getting worse and worse. <SNIP>I cant sleep I went to bed at 10.30, now I am here looking for more responses.

<{POST_SNAPBACK}>

Pauly, for goodness sakes, if you're having premature buyers remorse (a good thing imho- wish I had that instinct sometimes) just knock it and you on the head already and take a step or two back... breathe n sleep are far preferable to jump n regret...

Have a good rest and all the best!

<{POST_SNAPBACK}>

No D. I,m not having pre buyers remorse, just that everyone seems to be saying I would be foolish to proceed, however my Wife has set her heart on being independant thats all, and she has to be admired for that and if it all goes wrong then it wont be a life changing experience for me just another LOS mistake.

Everybody tkes chances, look at yourself, you took a big gamble because you were confident you could suceed and you have, how many people told you it was a waste of time and you wont make it

But you DID

[ThaiPauly]

Oh dear, this is getting worse and worse. I have looked at over 20 Businesses for sale here and rejected them all as the figs did not make any sense. but she has her heart set on this one, it s a case of "You always promise then take it away. She wants a bit of independance and make her own money to take care of her family instead of me doing it (although I will be shelling out the 450,000 plus.)

But I can see more potential in this than any other I have seen so far to be honest

I cant sleep I went to bed at 10.30, now I am here looking for more responses.

Thanks all for posting, not what I really want to read but I respect your opinions,which is why I posted.

Keep em coming, even though they are making me CRINGE

Every one is appreciated

TP

<{POST_SNAPBACK}>

I'm not going to give you any business advice. Others here can provide that better than I can. I do, however, empathize with you. I sense that you won't be able to change your wife's mind on this one. Sometimes you just have to go along with what she wants to do so long as it is not going to cause too much financial hardship for you.

All the best to you no matter what you end up doing.

<{POST_SNAPBACK}>

Donx, thank you. Everything you have said is spot on, if I buy it for her I will her hero forever, if not well things may never be the same for us again. She OWNS MY house and that is worth a lot more than 450,000 baht! So if she gets sick and tired of my broken promises who knows what the outcome might be. And I do Love her to bits anyway

[capco1]

Sounds like you already made your choice, so why are you asking for advice? Let us know when the "Grand opening" will be and good luck!

[sagit911]

Hi ThaiPauly,

This is my No#1 posting. Finally I get my chance to post.

1. Arrange for your wife to train there for a few days. You must also sit around there to observe with pen and paper ready. Make sure you choose a quiet day and a busy day so you can get an average picture of the business. Your purpose is to:

i. gauge the business volume

ii. while you sit around, think of the business and what could go wrong, future plan, customer complaints and how you could improve. And your wife gets a feel of the business.

2. The 1st step is to determine the business viability. Do a cashflow projection ie. your cash inflow must cover your cash outflow including taxes. You must mark up your expenses by 10% incase you get too optimistic with your projection.

3. What are the additional capital investment you need to put in when you take over like new equipment, furniture & fittings. List them down and work out the cost.

4. From #2, you know your monthly cash outflow. Multiply this monthly figure by 6. This is your working capital reserve for 6 months which means you can still keep the busines going for at least 6 months even if you get zero income.

5. Add all the 3 cost together ie the purchase price + additional set up cost + 6 months working capital. Are you happy with this amount of cash you need to invest in this business? If yes, and your net cash flow projection is positive, then you are 80% home.

6. Now that you have decided to do the business and you know your maximum investment you are prepared to put into this business. Should you later need to put in more money just to maintain the same business volume, then you need to review and maybe liquidate because your business plan is not working. That itself is another story.

7. Next step is to tie up the legality ie the transfer of ownership. Dont buy over her company. You will be liable for all her company's debts and obligations. Register your own company or business and start with guaranteed zero debts and you dont have to worry about her unpaid bills.

8. The other matters on transfer of ownership:

a. Furniture and equipment -make sure they have been fully paid. See original receipts and keep them.

b. stock of food and beverage -same as above.

c. lease -ok as you are dealing with landlord directly.

d. licence -you need to make new application under your own company.

e. staff -make sure they have been paid

f. Find out what are the regulatory requiments. You need to take care of them.

9. You must not think of this business as a hobby as it will fail. Every business is serious business and need 110% of your attention. Your creative input is needed like monthly review of your business and make changes where necessary. You can leave the operation part to your wife but the management part needs you.

I think that all for time being. Good luck and if you need any help working out the financials, do PM me. (I am not quite sure what PM me means)

Bottom line -you are there on the ground, you know what you see and guide yourself with these information and your decision should be better than any of us and remember, nothing is 100% sure. GO WITH YOUR GUT FEELING.

Sagit911

[Harmonica]

She OWNS your house!

Does she OWN the vehicles too?

What else does she OWN?

Bank accounts in her OWN name too?

Is this biz being set up as her OWN?

When the dastardly deed (promise, promise and then let me down! ) is done, pray tell us why she would need you then? Because you are madly, unrelentingly in love with her?

You can't possibly be a chump because I happen to know you're not from Chumphon!

Sell the house and other assets, give her a "more than fair" cut, take the rest and find a farang woman.

Kids? God help you!

Now get some sleep!

Nobody's message will get any worse than this! -- this means things can only get better!

[ThaiPauly]

Hi ThaiPauly,

This is my No#1 posting. Finally I get my chance to post.

1. Arrange for your wife to train there for a few days. You must also sit around there to observe with pen and paper ready. Make sure you choose a quiet day and a busy day so you can get an average picture of the business. Your purpose is to:

i. gauge the business volume

ii. while you sit around, think of the business and what could go wrong, future plan,  customer complaints and how you could improve. And your wife gets a feel of the business.

2. The 1st step is to determine the business viability. Do a cashflow projection ie. your cash inflow must cover your cash outflow including taxes. You must mark up your expenses by 10% incase you get too optimistic with your projection.

3. What are the additional capital investment you need to put in when you take over like new equipment, furniture & fittings. List them down and work out the cost.

4. From #2, you know your monthly cash outflow. Multiply this monthly figure by 6. This is your working capital reserve for 6 months which means you can still keep the busines going for at least 6 months even if you get zero income.

5. Add all the 3 cost together ie the purchase price + additional set up cost + 6 months working capital. Are you happy with this amount of cash you need to invest in this business? If yes, and your net cash flow projection is positive, then you are 80% home.

6. Now that you have decided to do the business and you know your maximum investment you are prepared to put into this business. Should you later need to put in more money just to maintain the same business volume, then you need to review and maybe liquidate because your business plan is not working. That itself is another story.

7. Next step is to tie up the legality ie the transfer of ownership. Dont buy over her company. You will be liable for all her company's debts and obligations. Register your own company or business and start with guaranteed zero debts and you dont have to worry about her unpaid bills.

8. The other matters on transfer of ownership:

  a. Furniture and equipment -make sure they have been fully paid. See original  receipts and keep them.

b. stock of food and beverage -same as above.

c. lease -ok as you are dealing with landlord directly.

d. licence -you need to make new application under your own company.

e. staff -make sure they have been paid

f. Find out what are the regulatory requiments. You need to take care of them.

9. You must not think of this business as a hobby as it will fail. Every business is serious business and need 110% of your attention.  Your creative input is needed like monthly review of your business and make changes where necessary. You can leave the operation part to your wife but the management part needs you.

I think that all for time being. Good luck and if you need any help working out the financials, do PM me. (I am not quite sure what PM me means)

Bottom line -you are there on the ground, you know what you see and guide yourself with these information and your decision should be better than any of us and remember, nothing is 100% sure. GO WITH YOUR GUT FEELING.

Sagit911

<{POST_SNAPBACK}>

A very impressive and informative first post Sagit911, I have taken everything you have said on board.

We are starting a new company in my Wife's name.

We are seeing a Solicitor this afternoon so he will be able to fill us in with everything we need to know, (that I dont know already fro what I have read on this thread.

This Woman's take on it seems to be-"If you don't trust me then don't buy it" I cant do business like that, I dont expect to come out of this with her being a freind, I hated the Guy I sold my business to, I am just trying to be a little bit more like him

Cheers

TP

[ThaiPauly]

She OWNS your house!

Does she OWN the vehicles too?

What else does she OWN?

Bank accounts in her OWN name too?

Is this biz being set up as her OWN?

When the dastardly deed (promise, promise and then let me down! ) is done, pray tell us why  she would need you then?  Because you are madly, unrelentingly in love with her? 

You can't possibly be a chump because I happen to know you're not from Chumphon!

Sell the house and other assets, give her a "more than fair"  cut, take the rest and find a farang woman. 

Kids?  God help you! 

Now get some sleep! 

Nobody's message will get any worse than this! -- this means things can only get better!     

<{POST_SNAPBACK}>

Ever heard of TRUST or LOVE Harmonica, your last post was brilliant and you are right no post could be worse than this.

I am sure you have heard the phrase "Dont risk what you can't afford to loose" Well

[taxin]

She OWNS your house!

Does she OWN the vehicles too?

What else does she OWN?

Bank accounts in her OWN name too?

Is this biz being set up as her OWN?

When the dastardly deed (promise, promise and then let me down! ) is done, pray tell us why  she would need you then?  Because you are madly, unrelentingly in love with her? 

You can't possibly be a chump because I happen to know you're not from Chumphon!

Sell the house and other assets, give her a "more than fair"  cut, take the rest and find a farang woman. 

Kids?  God help you! 

Now get some sleep! 

Nobody's message will get any worse than this! -- this means things can only get better!     

<{POST_SNAPBACK}>

Ever heard of TRUST or LOVE Harmonica, your last post was brilliant and you are right no post could be worse than this.

I am sure you have heard the phrase "Dont risk what you can't afford to loose" Well

<{POST_SNAPBACK}>

450,000 baht for a coffee shop business 'aint bad however, as someone has already said previously it all depends on the immediate cash flow, does she already have a customer base ? Does it have assets ? If it’s a “yes & yes” then your over the 1st hurdle.

Another question for the wife is this, ask her if it was her OWN money would she pay 450,000 baht for it ? My guess is probably not !

Then again, sounds like things have come to her pretty easy upto now so maybe she doesnt really care ! The more money you give to a Thai the quicker they lose the respect for it, after a while they will eventually assume that it grows on trees therefore price is irrelevant !!

Another question, ask her if she will be getting a cut of the 450,000 baht ? Thais are famous for this, even with there own families and friends this can often be the case. OK, it might earn you a slap across the face but at least your showing that your not letting your guard down easy !!

Bear one thing in mind, Thais don’t sell successful business’s !

[capco1]

Bear one thing in mind, Thais don’t sell successful business’s ! wink.gif

My point exactly!

[Harmonica]

She OWNS your house!

Does she OWN the vehicles too?

What else does she OWN?

Bank accounts in her OWN name too?

Is this biz being set up as her OWN?

When the dastardly deed (promise, promise and then let me down! ) is done, pray tell us why  she would need you then?  Because you are madly, unrelentingly in love with her? 

You can't possibly be a chump because I happen to know you're not from Chumphon!

Sell the house and other assets, give her a "more than fair"  cut, take the rest and find a farang woman. 

Kids?  God help you! 

Now get some sleep! 

Nobody's message will get any worse than this! -- this means things can only get better!     

Ever heard of TRUST or LOVE Harmonica, your last post was brilliant and you are right no post could be worse than this.

I am sure you have heard the phrase "Dont risk what you can't afford to loose" Well

Yes ThaiPauly, I have heard of both TRUST & LOVE!

No point in discussing the latter for both you and I are equally lost in it, our enjoyment therein notwithstanding!

And I hope it lasts us a very long time, if not the remainder of our current lives!

I am however referring to the former -- that, my friend should be earned and should never come cheaply and easily. Socializing, drinking with pals, traveling buddies, even friends you've known a while, etc., they're not the same thing. TRUST is on the same level as "giving one's word "

From the information you have provided here thus far -- and the night is still young; meaning that you could come up with some more tantalizing info, it is abundantly clear that you are in colossal violation of "Financial Etiquette with a Thai woman" to an extent that makes us, me anyways, not you, CRINGE!

You have relinquished so much control to this woman, combined with the fact that you are lost in love (I don't blame you one iota for this, my friend ) that you are now in the realm of the "launching of the first ATM satellite from LOS!"

For your sake I hope I'm dead wrong!

Anyways, regards to you and your wife and best of luck with the biz., since it does appear that you made up your mind before you even posted here!

[Darkling]

Hi ThaiPauly,

This is my No#1 posting. Finally I get my chance to post.

1. Arrange for your wife to train there for a few days. You must also sit around there to observe with pen and paper ready. Make sure you choose a quiet day and a busy day so you can get an average picture of the business. Your purpose is to:

i. gauge the business volume

ii. while you sit around, think of the business and what could go wrong, future plan,  customer complaints and how you could improve. And your wife gets a feel of the business.

2. The 1st step is to determine the business viability. Do a cashflow projection ie. your cash inflow must cover your cash outflow including taxes. You must mark up your expenses by 10% incase you get too optimistic with your projection.

3. What are the additional capital investment you need to put in when you take over like new equipment, furniture & fittings. List them down and work out the cost.

4. From #2, you know your monthly cash outflow. Multiply this monthly figure by 6. This is your working capital reserve for 6 months which means you can still keep the busines going for at least 6 months even if you get zero income.

5. Add all the 3 cost together ie the purchase price + additional set up cost + 6 months working capital. Are you happy with this amount of cash you need to invest in this business? If yes, and your net cash flow projection is positive, then you are 80% home.

6. Now that you have decided to do the business and you know your maximum investment you are prepared to put into this business. Should you later need to put in more money just to maintain the same business volume, then you need to review and maybe liquidate because your business plan is not working. That itself is another story.

7. Next step is to tie up the legality ie the transfer of ownership. Dont buy over her company. You will be liable for all her company's debts and obligations. Register your own company or business and start with guaranteed zero debts and you dont have to worry about her unpaid bills.

8. The other matters on transfer of ownership:

  a. Furniture and equipment -make sure they have been fully paid. See original  receipts and keep them.

b. stock of food and beverage -same as above.

c. lease -ok as you are dealing with landlord directly.

d. licence -you need to make new application under your own company.

e. staff -make sure they have been paid

f. Find out what are the regulatory requiments. You need to take care of them.

9. You must not think of this business as a hobby as it will fail. Every business is serious business and need 110% of your attention.  Your creative input is needed like monthly review of your business and make changes where necessary. You can leave the operation part to your wife but the management part needs you.

I think that all for time being. Good luck and if you need any help working out the financials, do PM me. (I am not quite sure what PM me means)

Bottom line -you are there on the ground, you know what you see and guide yourself with these information and your decision should be better than any of us and remember, nothing is 100% sure. GO WITH YOUR GUT FEELING.

Sagit911

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Your`e the man.