Business "Pitfalls And Pleasures"

[jigsawman]

Hi All

Been lurking on TVF for some time picking up all sorts of advice (thanks)

But i would love a point by point advice on a three year plan! and best way to go about it

c'mon guys no flamin me, its only for 3 years of life experience i want (good or bad)

1/ been to thailand about 20 times in the last 5 years (love the place, everything about it)

2/ thinking of buying/leasing a small business (beer bar is the obvious) so i could live and just basically survive out of the business for approx 3 years

3/ sell business for what i basically paid for it and return back to home (maybe)

However i have about $50k Aussie stake just to experience my 3 year plan, and i would be attempting to do it as painlessly as possible

OK GUYS! fill yer boots, pittfalls and pleasures

I'm going to do it anyway, so all advice is appreciated

Jigsawman

[actiondell4]

First of all,I have sent you or will send you a PM.

I say go for it.Phuket

Im not sure what advice you already have,however I take it the bar will be probaly in Pattaya or phuket.

You have 50k Aud,roughly 1.5 million,maybe a bit over.

Can you tell us more information,Pattaya ,Phuket,Bangkok? your age,any experience in business?

The thing is this,if you are only relying on the bars income to survive then you need to find a bar with a decent profit coming in every month.

Whether a bar selling for 1.5 million baht or so will have a decent profit for you to live on is something you would have to look at,i mean bars selling in that price range i would imagine have average profit of between 15-20k per month and thats probaly being generous.

If you have other income from your home country,house rental,social security etc coming in as well then it will make it easier,however having said that,if $500 a month profit is enough for you then i say go for it,you can do it and maybe build it up if your prepared to be there and introduce competition.

Bettering your options to is look for a bar with guest rooms on top,so obviously you can live in one of the rooms.

You need to look a lot before you buy,example is look for a place you are not going to spend any money on.

I will tell you more later and hopefully others will contribute,especially those who have been there and done it,but i say go for it,even only for the life experience and the challenges.

If you really want to buy a bigger bar consider finding a business partner.

Im a bit concerned your comment,"I will be attempting to do it as painlessly as possible",I doubt that happens when running a business as you will find many challenges,the thing is are you mentally prepared as well?

As I said if you have approx 1.5 million to spare then you need to find a business that you can buy and not have to WASTE another million baht fixing up .

You need really to do a business plan,because if you have a bar LOSING money rather than bringing in profit you will have lost your capital plus you will be trying to borrow money to pay for your monthly living .

For over 12 months I looked at many many businesses including bars in Pattaya,many over a year were not making a profit.

Sure high season was great months ,the low season months were losses in many cases.

Do you have a bar already in mind,if you do then look at its location,how much staff wages are,and the most important thing is rent and lease,its no use paying high rent and key money for bad locations.

Edited May 1, 2011 by actiondell4