A Few Words Of Wisdom, Please

[BJK]

Hello all,

I want to buy a business in Phuket and I'm seeking advice as I've never run a business before. I'm a Canadian whose been teaching English in Taiwan for 10 years. I don't mind working long hours but I really need to make some good decisions here so, if you'll forgive me for asking: What would you do if you were a single 35 year old Canadian with 10 years life/work experience in Taiwan who wants to buy his first business in the LOS within the next 6 to 12 months? I have $3m baht. I cannot lose it.

I was thinking about a guesthouse . . . good idea?

Thanks in advance,

BJK

[LivinginKata]

Is that 3 million $ or 3 million baht. I'm guessing 3 million baht which will only buy you a lease (rental) on a guest house and you will end up struggling to pay your land lord each month (or year depending on contract). Far too many budget guest houses struggling to make a living. Most are for sale. Need I say any more.

[BookMan]

I would strongly suggest you go to Phuket and look at business conditions on the ground for various sectors. Get the feel of the place and of the locals and see first hand how business is and what you might encounter running a business there.

You say you cannot afford to lose the 3million baht. If that is the case, why would you set up your own business, with no experience of phuket or of guest houses? If you cannot afford to lose the money , buying your own business, with no experience, is a really bad idea.

Either way, a few months first hand gawking will help your mind.

[KarenBravo]

If you have to ask advice on an internet forum, then, you're not ready to own a business.

Three million baht is not considered a lot of money here.

You will only be able to lease.

You will have to first pay key money for the lease. Then make enough not only to pay the monthly rent and cover your expenses and give you living money, but, you'll also have to save money for when the lease will expire and you have to lease everything again.

[Hooters]

How come 99% of these questions are 1st time posters?

[Jimi007]

If you can't afford to lose the money, please don't. One of the surest ways to lose money is to invest in a business in Phuket! It reminds me of the 4 F rule!

[WarpSpeed]

I would strongly suggest you go to Phuket and look at business conditions on the ground for various sectors. Get the feel of the place and of the locals and see first hand how business is and what you might encounter running a business there.

You say you cannot afford to lose the 3million baht. If that is the case, why would you set up your own business, with no experience of phuket or of guest houses? If you cannot afford to lose the money , buying your own business, with no experience, is a really bad idea.

Either way, a few months first hand gawking will help your mind.

Yes including mafia key money and police tea money though the later is not likely to be initially one must still consider it eventually as part of the costs of doing business. Edited December 26, 2011 by WarpSpeed

[TPI]

BJK, my friend and I do mean "my friend" do you realise that ฿3m will last you ten (10) years @ 25000 a month?, to add to your pile there's any amount of part time and full time teaching in Thailand that pays around 35K a month plus accommodation and lunch!

If you ask around you'll find that everyone that has started a business in the "land of smiles" will have a horror story for you!

Come here, cruise for a while, don't just settle for Phuket, there's many places here that blow the island to the weeds for liveability...don't forget, keep your hands in your pocket!

[ShopBoy]

Hello all,

single 35 year old Canadian with 10 years life/work experience in Taiwan who wants to buy his first business in the LOS within the next 6 to 12 months? I have $3m baht. I cannot lose it.

I was thinking about a guesthouse . . . good idea?

Thanks in advance,

BJK

why Phuket in the first place ?

[LivinginKata]

<snip>

If you ask around you'll find that everyone that has started a business in the "land of smiles" will have a horror story for you!

No not everyone, the odd 1 or 2 % are doing Ok .... but the trick is owning your property (freehold) and not leasing. Owning costs major bucks.

[stevenl]

I would strongly suggest you go to Phuket and look at business conditions on the ground for various sectors. Get the feel of the place and of the locals and see first hand how business is and what you might encounter running a business there.

You say you cannot afford to lose the 3million baht. If that is the case, why would you set up your own business, with no experience of phuket or of guest houses? If you cannot afford to lose the money , buying your own business, with no experience, is a really bad idea.

Either way, a few months first hand gawking will help your mind.

Yes including mafia key money and police tea money though the later is not likely to be initially one must still consider it eventually as part of the costs of doing business.

For normal, legal business no mafia money or police money required.

But yes, agree with the others, especially for guesthouses you need to own.

[MrE]

I have been here for twelve years and am selling out of two businesses. I was a management consultant for almost forty years in several countries before landing in Thailand. It is incredibly difficult to do business here. The govt officials, cops and civil servants will drive you crazy and many farangs will cheat you every chance they get. If you are determined to live in Thailand, choose somewhere other than Phuket, Pattaya or Koh Samui and just live there for a couple of years until you get your feet firmly on the ground. Don't buy a bar, restaurant or guesthouse unless it will be the only one in a one-km radius and then ask yourself why no one has opened one there before or why, if its such a good deal, they are selling it. If you look at the listings of the leading business brokers in Thailand, the vast majority of enterprises for sale are from these categories for good reason. Farangs come here thinking it will be a fun, easy way to support themselves, then go out of business after a year or so and sell it to another farang who does the same. Go slow and be afraid, be very afraid.

[Litlos]

One thing not mentioned so far, though a major problem is copying. If the locals see you doing something succesfully they will set up shop right alongside doing the same thing. Then possibly arrange for their friends in government positions to hassle you till you go out of business. I know people who have run a business here, as one quoted "On a good month it does not cost me to much". So tread carefully and maybe stick with what you know until you have a few years under the belt living in Thailand.

Cheers

[BJK]

Thank-you everyone,

I appreciate your insight and experience, this is exactly why I'm asking. If Phuket is too competitive to make a go of it, where would you recommend?

Thanks in advance,

BJK

[petercallen]

3M baht is worth no more here than it is in Canada, what type of business could you buy for less than a 100000 dollars there or anywhere else

[steelepulse]

Here you go, only 2.6 million. http://phuketgazette.net/archives/classifieds/article115269.html Unfortunately it doesn't say how long the lease is for or how much the monthly rental is.

[FritsSikkink]

Thank-you everyone,

I appreciate your insight and experience, this is exactly why I'm asking. If Phuket is too competitive to make a go of it, where would you recommend?

Thanks in advance,

BJK

When you don't know the country,the people, or doing business don't start a business at all and enjoy having some money.

Don't lose it all for a dream.

[barka]

BEST ADVICE.. i can give you..FORGET IT..stick to your teaching,enjoy Phuket,dont get involved and your money will last you a long time...GOOD LUCK...

[hkt83100]

Here you go, only 2.6 million. http://phuketgazette...icle115269.html Unfortunately it doesn't say how long the lease is for or how much the monthly rental is.

The coordinates given on the website of the guesthouse point exactly to the unfinished building, which is blocking one lane of the Soi Banzaan.

[BookMan]

Thank-you everyone,

I appreciate your insight and experience, this is exactly why I'm asking. If Phuket is too competitive to make a go of it, where would you recommend?

Thanks in advance,

BJK

You have done teaching for ten years? Why not look at a business involving teaching? if you go into business for yourself look at utilising the skills u have. Language school catering to farangs.. As many have said, come and get the lay of the land..and then decide if you think its worthwhile

[WarpSpeed]

I would strongly suggest you go to Phuket and look at business conditions on the ground for various sectors. Get the feel of the place and of the locals and see first hand how business is and what you might encounter running a business there.

You say you cannot afford to lose the 3million baht. If that is the case, why would you set up your own business, with no experience of phuket or of guest houses? If you cannot afford to lose the money , buying your own business, with no experience, is a really bad idea.

Either way, a few months first hand gawking will help your mind.

Yes including mafia key money and police tea money though the later is not likely to be initially one must still consider it eventually as part of the costs of doing business.

For normal, legal business no mafia money or police money required.

But yes, agree with the others, especially for guesthouses you need to own.

The threat is VERY real and regardless of your businesses intent once it becomes successful it then places you squarely in their cross hairs unless you're a threat to their profitability or making more money in which case you'll be targeted almost immediately but the point is that once you've made your large investment (which he openly admits he can't risk) the threat is there and then there is no where to run or hide without losing it all and or paying.

Don't try to dismiss the threat, it exists and is something he needs to strongly consider and it's in nearly EVERY aspect of business down there and he's asking for business ideas so he doesn't even know which are red flag businesses but it's more then likely he'll choose one that is as there isn't whole lot of options for a first time business owner with his capital to invest..

JFYI I personally know a guy who opened up his own machine shop and a well appointed one at that, in the Pattaya area (I'll not give his exact location in this thread but it is not even in an obvious location and is away from any potential competitors) and even before he was done installing his equipment he was visited by the local mafioso with enforcers and gun in hand and the local law laid down if you will, so it isn't just dodgy businesses that get the shake down..

Edited December 27, 2011 by WarpSpeed

[katabeachbum]

The threat is VERY real and regardless of your businesses intent once it becomes successful it then places you squarely in their cross hairs unless you're a threat to their profitability or making more money in which case you'll be targeted almost immediately but the point is that once you've made your large investment (which he openly admits he can't risk) the threat is there and then there is no where to run or hide without losing it all and or paying.

Don't try to dismiss the threat, it exists and is something he needs to strongly consider and it's in nearly EVERY aspect of business down there and he's asking for business ideas so he doesn't even know which are red flag businesses but it's more then likely he'll choose one that is as there isn't whole lot of options for a first time business owner with his capital to invest..

JFYI I personally know a guy who opened up his own machine shop and a well appointed one at that, in the Pattaya area (I'll not give his exact location in this thread but it is not even in an obvious location and is away from any potential competitors) and even before he was done installing his equipment he was visited by the local mafioso with enforcers and gun in hand and the local law laid down if you will, so it isn't just dodgy businesses that get the shake down..

I have successfully been doing business in Phuket for 9 years, and do not recognise your picture at all. What threats?

[WarpSpeed]

The threat is VERY real and regardless of your businesses intent once it becomes successful it then places you squarely in their cross hairs unless you're a threat to their profitability or making more money in which case you'll be targeted almost immediately but the point is that once you've made your large investment (which he openly admits he can't risk) the threat is there and then there is no where to run or hide without losing it all and or paying.

Don't try to dismiss the threat, it exists and is something he needs to strongly consider and it's in nearly EVERY aspect of business down there and he's asking for business ideas so he doesn't even know which are red flag businesses but it's more then likely he'll choose one that is as there isn't whole lot of options for a first time business owner with his capital to invest..

JFYI I personally know a guy who opened up his own machine shop and a well appointed one at that, in the Pattaya area (I'll not give his exact location in this thread but it is not even in an obvious location and is away from any potential competitors) and even before he was done installing his equipment he was visited by the local mafioso with enforcers and gun in hand and the local law laid down if you will, so it isn't just dodgy businesses that get the shake down..

I have successfully been doing business in Phuket for 9 years, and do not recognise your picture at all. What threats?

Good for you...As for what threats? Read the paper or turn on the TV since you to seem to have been lucky enough to dodge them for the moment.. Even my boys pediatrician was going to help set up his son in business down there but the key money and influence was enough to make him reconsider and eventually move back to the states instead and help his son begin a business there..

I personally ran into it myself as well but I'm certainly not going to specify it on here.

Edited December 27, 2011 by WarpSpeed

[stevenl]

I have successfully been doing business in Phuket for 9 years, and do not recognise your picture at all. What threats?

Good for you...As for what threats? Read the paper or turn on the TV since you to seem to have been lucky enough to dodge them for the moment.. Even my boys pediatrician was going to help set up his son in business down there but the key money and influence was enough to make him reconsider and eventually move back to the states instead and help his son begin a business there..

I personally ran into it myself as well but I'm certainly not going to specify it on here.

Well, sometimes key money has to be paid, but what has that to do with mafia or tea money?

I'm with KBB on this one, have been running a business here long time, and never paid anything to mafia or police.

[LivinginKata]

Well, sometimes key money has to be paid, but what has that to do with mafia or tea money?

I'm with KBB on this one, have been running a business here long time, and never paid anything to mafia or police.

And I also agree with that. The trick is top stay clear of people offering to help you out with 'high level influential' contacts. Just keep your head down, obey the laws, pay your taxes, and don't upset the status quo.

[WarpSpeed]

I have successfully been doing business in Phuket for 9 years, and do not recognise your picture at all. What threats?

Good for you...As for what threats? Read the paper or turn on the TV since you to seem to have been lucky enough to dodge them for the moment.. Even my boys pediatrician was going to help set up his son in business down there but the key money and influence was enough to make him reconsider and eventually move back to the states instead and help his son begin a business there..

I personally ran into it myself as well but I'm certainly not going to specify it on here.

Well, sometimes key money has to be paid, but what has that to do with mafia or tea money?

I'm with KBB on this one, have been running a business here long time, and never paid anything to mafia or police.

You can side with whomever you want, the threat exists and the OP (whom I'm answering) is asking for advice so I gave it to him. It's not up for debate it's up to him whether or not to heed or consider someone else's advice and personal experiences which may be and apparently are very much different from yours..

[ludditeman]

How about a hairdressers?

A shopfront store in CM can be had for 8kbht a month (or cheaper in CR) with a 2 bed apt upstairs, 50kbht for setup costs.

Hire a couple of cute girls, monitor the staff and customers, to stop potential stealing.

At least you get somewhere nice to live, streams of eye candy, and almost certainly one of the staff will suggest living with you.

You might not make any money, but the losses are controllable and you get a good place to live for no extra charge.

Easier than a bar!

Edited December 27, 2011 by ludditeman

[katabeachbum]

Well, sometimes key money has to be paid, but what has that to do with mafia or tea money?

I'm with KBB on this one, have been running a business here long time, and never paid anything to mafia or police.

And I also agree with that. The trick is top stay clear of people offering to help you out with 'high level influential' contacts. Just keep your head down, obey the laws, pay your taxes, and don't upset the status quo.

I aslo know quiet a few unseccessfull business owners here. Mostly in the entertainment business, and they shut down cause of threats. Threats they never recieved.

but of course if you want to run a bar open after closing hours, no taxes paid, no staff emplyed/taxed for, and have barfees for girls, you need to connect. Wouldnt call that legit business tho

[LiveSteam]

My advice to you would be to buy a little gold and mostly silver and sit on it. You will work here forever and have nothing but problems. Buy bullion not stocks here and keep it in a bank deposit box and insure it.

LiveSteam

[PattayaPhom]

3 Million Baht wont get a lot...especialy in Phuket!!!.......as its Thailand, a business targeting the local population of 65 Million is better than a few million tourists.....its not exciting but a small Thai restaurant with 40 Baht food, they always seem to be busy and make a profit...cheap land with cheap Thai rooms, they are always full......if you want a bar down Bangla or hotel on Na Noi, you will need a lot more money and wont make a penny from your three year lease.