Setting Up Business In Thailand

[Abyss]

I AM PLANNING TO MOVE TO THAILAND THIS TIME NEXT YEAR AND OPEN A SMALL BAR/RESTAURANT. BUT I AM NOT THAI, SO WHAT DO I NEED TO DO TO BE ABLE TO HAVE BUSINESS IN THAILAND?

IS THERE MUCH RED TAPE RESTRICTING ME?, IF I OWN A BAR CAN I WORK IN IT?, WHAT IS THE AVERAGE WAGE FOR THAI WORKERS?, WHAT EXPENSES WILL I OCCUR?

ANY ADVICE AND INFORMATION IS MUCH APPRIECIATED!!

A.BISS

[dr_Pat_Pong]

It is never going to be easy. Best advice, F O R G E T I T. Go to the Sunbelt link on the opening page here, and look for a ready made business on sale. Even a bar if that's what you want, but the failure rate is enormous.

[Abyss]

Thanks dr_pat_pong

I Understand it's not easy, but i don't beleive in failing, i am young, energetic and have much experience in running business's. I have been brought up in holiday industry. This is something i want to do and i have idea's that i believe have not been execised yet. I am 30, with fresh ideas, when i look around all i see is old ways and idea's on running "bars". There are alot of young people who travel to phuket where i would like to reside, and i see oppotunity here.

After reading the news on new immigration proposals, it has made me think carefully about investing in thailand, but as you say there are always ways around these problems.

All i ask for is some advise apart from FORGETIT please. mainly legal matters or any sites that have this information.

thank you

Andrew

[Guest IT Manager]

Why reinvent the wheel. Thailand needs energetic young people in the Tourism Industry.

Find an organisation already here and talk about what you want to do. I know of one GM in his mid 30's who is very happy working in the industry here.

[Abyss]

hi ######

i don't want to reinvent the wheel, just trying to make it more efficient and put better tyres on it

I think joining an excisting organisation is a safe bet, but I am a bit reluctant to share my ideas as they may be used without me. I am used to doing my own thing and taking responsability for my own trials and errors.

Thanks for the advice, this is something i am going to look into and i will talk to a few people when i return to phuket next month. although i did put an advert in the phuket gazette a while back offering my experience and ideas but nothing came back?

thank again

andrew

[george]

Abyss,

try http://classifieds.thaivisa.com also!

[stopper]

I wish you the best in your venture. However, if I had a nickel (2B) for everytime I heard someone say they wanted to open a bar in Thailand, I would be in line now to buy the "Thailand Elite" card for 1 million Baht. Sorry krub, just my two cents (75 satangs) worth.

[Abyss]

yes stopper i know what you are saying, "everybody wants a bar in thailand"

but all i am after is advice and information, isn't this a good place to start?

A bar is not the only thing i am interested in. My main interest is in exports, and after being a club dj on and off for 12 years and owned 3 successful restaurants, a bar would be a nice place to chill, as i am still young (30) and have some good ideas. Just trying to give people what they want, something different...... there are too many gogo bars in the south, same old same old! if you stay in thailand a long time this gets a bit tedioeus.

I've travelled around the world clubbing and hangin out in nice bars, so i think i have a good idea that works, and growing up on my family's holiday resort, i think i know a few ways to pull money into a business, than just selling beer!

The only thing that bothers me is the Thais seem to change the rules too much?

"but where there is a will there is a way"

thanks

andrew

[dr_Pat_Pong]

Georgie, IT and I are gonna run a go go bar. If we are still enjoying it after a year, we might open it to the public as well. .

[Abyss]

So dr........have you ever tried pole dancing? it looks quiet difficult......watch those friction burns!!

[dr_Pat_Pong]

Too hard to get a work permit to dance. Nearly as hard as getting a WP to run a bar.

[Guest IT Manager]

Actually of the 3 of us, it was the Doc who seemed to have the hang of the pole dancing if you will excuse the pun.

My only suggestion to him was some foundation powder from my wife to visually excise the pimples on his bottom. That worked a treat so the 2 of us just sat back with a bottle of something red and chilled, watching him strut his stuff.

That was the only time the Doc ever accused me of being a peasant, cos of chilling the red.

I pointed out that room temperature as it applies in Northern Hungary is quite different to our experience in the bamaboo shack on the makhong in April.

The high point of the day was two urchins sticking their heads around the corner and seeing my wife and the Doc "shimmying". Never heard such screams of fright.

[Indo-Siam]

Hi Abyss -

Please send me your personal e-mail address, to [email protected], and I will send you a standard collection of information that lays out the general program.

A few general pointers:

1. Don't buy someone else's company - because along with the assets you inherit, you also inherit any liabilities that the company may have (i.e. they fired Lek two month ago, because they were broke and couldn't pay her salary - company is now owned by rich you, and Lek sues company for severance - and you now owe her 100,000 baht).

2. You form what effectively becomes a holding company - under a name that you register. That is the legal name that you operate with - it employs workers, maintains bank account, maintains financial records etc. It can then operate and license activities - such as "Down and Out" bar, "Weasel's Excellent Exports" -each with its own logo, website, ets.

3. Concerning a bar, here is a game that I recommend that you play. First, write down on a piece of paper the six ways that you can possibly earn income in a bar - 1) sell drinks; 2) sell food; 3) sell merchandise (hats, T-shirts); 4) sell sex (bar fines); 5) sell cigarettes; 6) sell games (pool, video game machines, karaoke machines). That's six items on the income page. Now, take a couple of bright friends into a bar similar to the one you plan to operate, and play the game of "list each of the first year expenses" - you bring a big notebook, to record all the entries. maybe invite the bar owner or mananger to play. Rotate between players - when its his turn, each player has to list 10 new expenses. When a player runs out of ideas, he has to buy a round. The list should include about 4,000 items - right down to toothpicks, toiletbowl brushes, check-bin cups, spare light bulbs, padlocks, ice tongs, tamboon candles, extension cords, 40 different types of drinking glasses, photo of the King, etc, ad-infinitum. Well done, such a list is quite impressive. Then compare that list of ALMOST ENDLESS expenses to the small list of six income items (which fit on a matchbook cover) - oh, and that's if you will even collect in all six income areas.

Good luck!

Steve

Managing Director

Indo-Siam Group

www.thaistartup.com

[dr_Pat_Pong]

But his bar will be different Steve. They all are

[dr_Pat_Pong]

Hungarian Loom temperature is close to 12 degrees...a bit off the boil in Muang Thai is quite OK IT

[maerim]

From what I have seen here the majority of bar owners have two good days, the day they get the bar and the day they get rid of it

[Khun ?]

Go stay where you think you want to start the bar (Phuket) and after 6 months

of doing this you may have a idea of what if anything you thought you wanted to do is possible. Make sure you are there April thru Sept ( low season) or part of it. Otherwise the few $100,000's (make sure you have enough spare cash to operate at a loss for 2 years) will be better spent being a customer who can nag at another owner to use your plans, of course you will need discounts on brew in his place if you have not already bored of the place and moved onto a new bar for relaxing and complaining. Remember anything you find success with will be adapted pretty fast in neighboring establishments so be prepared to sell quickly for good profits

until you have enough saved to be a life long customer.

GOOD LUCK if you have saved enough at your age to do it, you are doing something right. Go for it.

[dr_Pat_Pong]

Sad to say it....but another idealistic dreamer.

[Khun ?]

I think so, but who knows maybe his place will be put on the elite card soon as they get this 20 Billion to build the golf courses and high end hotels. I know some

vintage cars of the 60's still being used by hotels as taxis maybe the elite card

will have some soon. Maybe even have elvis driving them from the airports on

this free fast track and transport.

[dr_Pat_Pong]

Elvis runs A Big Mac Store in Dallas. .

[Abyss]

Dr pat_pong,

why so much negativity? why do all bars in thailand fail?, for someone trying to promote thailand you don't have many good things to say about thai bars!

Why don't bars make money? i am confused?!? .........( I agree go-go bars are a cut throat business, but that is not what i wanna do).

please shed some light on this negative view you have.

regards

andrew

[Guest IT Manager]

Andrew in my humble opinion, everyone develops a negative view of bars after a while. I personally don't understand why people (foreigners as opposed to Thai Nationals) even bother.

They are OK in the tourist season, unless you have a niche market e.g., not any others within a bulls roar, new concept of how to drink (can't think of many), new range of drinks (wine bar for example).

As has been said, it has been done, it will continue to be done. Once you have seen one bar, you have seen them all. The go-go bars come and go, the poles get shinier, the girls get older, the punters get new horizons, or grow up and get out of them. What happens the other 9 months. There are only really 3 working months remember, not like for example Sydney which essentially seems to have a constant flow year round.

If you listen to all the negatives, then have a look at the one or two positives, I think, at least from my perspective, you are being offered the one chance you will get to save a bag of money, and do something positive for Thailand, by not opening another bar, doesn't matter where it is.

On the other hand, with your own stated capacity to bring another view of tourism to Thailand, then you would be better going to the major hotel chains with your ideas, and offer to implement them for a share of the proceeds.

I can't categorically state, and I won't, that your mum and dads resort was no different or substantially different to other ones like it nearby, but the end of the day comes when you see your good idea in place.

Doing business in Thailand equals have a good idea, market it to everyone with even a single chance of saying "go and do it", then watching others take your idea and improve on it.

Tourism, unlike most industries, thrives on the good idea of one person, multiplied many times over so many more can enjoy. Give the system a name "the tried and Tim system" for example then when others want to introduce it, they come to you. You work towards improvement every time you install it, start it, introduce it or whatever, and people come to you and say "you did it for Jack down the road, how about setting it up for me as well". There is consulting money, (more than a bar will pay), there is support and maintenance, also more than a bar, and you see your system/process etc., developing with your name on it. There is a pride in that.

IT

(Developer of Thailand's' first secure chargeable wireless Internet system. Coming soon to a hotel near you. Also adoptive father of the developer of the worlds' first BAMBOOREO, as of 10 minutes ago.)

[Khun ?]

Doc and IT said it for your caution, Doc does not blow smoke up someones behind

because that is what they want to hear. You did not give any info on what your foundation will be to start this business ( money). Now if you said you had a spare million U.S. dollar or equal to, then maybe you would get some positive info such as I know a cheap place you may be interested in starting this entertainment business that has a high flow of tourist $ and nothing else in the area to compete against. Otherwise I believe Siemens and Philips has the patenant on the new LED

street light. But please do shine on us what more info you can without us trying to peddle you something. Did anyone mention partners are normally like A-holes they stink most of the time but not always.

[Indo-Siam]

Business is about either:

1) Fulfilling existing unmet demand.

or

2) Creating demand, and then filling it.

Well, existing unmet demand for bars in Thailand is - as far as I can tell - nonexistant. There are bars everywhere - most of them operating at maybe 10% of capacity, at best.

If you literaly went out and elimiated 50% of ALL BARS in Thailand, there would still be an ENORMOUS over-capacity of bars.

So - we are not talking about fulfilling unmet demand.

I'll throw in a loosley related thought: have you ever heard that in street-level retail businesses, the three keys to success are; 1) Location; 2) Location; and 3) Location?

Do you think that maybe someone in Thailand overlooked a great location for a bar???? With 10 times more bars than can operae profitably, someone failed to notice a little piece of high-profit paradise?

OK - so, now back to point number two:

Since we are not talking about satisfying unmet demand, we are talking about creating demand for some new bar concept. That's it - create demand.

Thailand is probably just about the most distracting place on the planet. Getting anyone to listen to your message here - blended in with a zillion other messages - is REALLY hard. It is REALLY hard to get people to beat a path to your door here - or to even get anyone to notice that you exist.

But - if you can overcome all of the above issues - then you welcome to carve out success here.

Good luck!

Cheers

Steve

Indo-Siam

[Abyss]

Thanks for all the advice much appreciated.

I have another question you may be able to help me with, it's not to do with a bar, but a game of skill where you can win cash. Basically a ball game, if you get a ball through a hole you win cash prize. Is this gambling? and is it legal in Thailand?

regards

andrew

[ThaiAdventure]

I still reckon the chicken racing idea was the best

[Abyss]

chicken racing? tell me more.......

[Guest IT Manager]

I agree Thaiadventure. Chicken racing would have me there in a wingflap.

[Nat]

That was the only time the Doc ever accused me of being a peasant, cos of chilling the red.

I'm sorry IT (have alot of respect for you) but chilling a red is sacreligious

Your wife (& dr?!) can do the shimmey? That's brillaint - if it's the same shimmey as I learnt in my latin dancing classes than a poster in the female section is grossly incorrect

[dr_Pat_Pong]

chicken racing? tell me more.......

Oh God....IT you've given him another idea for a super bar........