Building And Starting A New Resort ...

[FlyingDutchman]

Dear readers,

I am a foreigner with a foreign business partner.

Suppose we would like to start a resort from '0'.

The idea would be to locate it south of Jomtien (Pattaya area).

It's also in the planning to become Thai residents.

There would be no (Thai) bank-loans or Thai investors involved.

The land must be secure, so buying seems the best way (?).

Building the resort would be done by Thai (foreign investment).

And 'all' of the staff would be Thai (local employment).

The resort must be a "class A place" to stay in, so well set up.

It is out of the question, that our profits should leave the country.

We suggest to be staying there for a long time.

We both know that foreigners are a pray for locals and rather discriminated by law.

Though, this is in a nutshell our plan ...

For good order : We develop software and are due to locate some business to Asia.

Further more, we would like to exploit our software overthere, managed by locals.

The resort must make money, but it's more that we have a nice place to stay overthere.

For we would like to become residents there. So we need not become rich from the resort.

That also counts for the software, we are modest guy's and need not to become wealthy.

Investing our efforts and becoming a part of Thai life, is our main goal.

Why ? ... Because we live in a very cold country and we both dislike the cold. Simple, nai ?

Naturally, we will get 'negative' reactions, but when founded well, we are thankful.

So, if you know something about this matter, have tips or other advise, please react.

[GuestHouse]

What is your core business, running resorts of software?

If you are already running a software business I would suggest that you put your effort there.

The resort idea seems good but is a high user of two vital resources – Money and Time.

Something I do think might make money is ‘Service Offices’ for people who want to have a go at running a business but either do not have sufficient or do not want to make the commitment of moving funds to Thailand.

I start any business with a lot of reading to get a grip of the big issues, start with ‘Starting Up and Staying Up in Thailand’. Then buy a big bag of salt to go with all the other advice you will be given.

[FlyingDutchman]

What is your core business, running resorts of software?

If you are already running a software business I would suggest that you put your effort there.

The resort idea seems good but is a high user of two vital resources – Money and Time.

Something I do think might make money is ‘Service Offices’ for people who want to have a go at running a business but either do not have sufficient or do not want to make the commitment of moving funds to Thailand.

I start any business with a lot of reading to get a grip of the big issues, start with ‘Starting Up and Staying Up in Thailand’. Then buy a big bag of salt to go with all the other advice you will be given.

THX for your reply GuestHouse.

The core business is software and I used to be into the Dutch Legal Advise business (this means I had to read well). It's always like this : you have to interpret the law; the judges also do. "Keep what can save you. Throw away that can hurt you ..." Know how they catch a monkey ? They put food in a case, which he can pick through a hole; if he takes it in his hands he cannot get his fist out because of the too little hole and they run upto it. Being unable to get away, the monkey won't let go of the price he holds in his hand because of his greed and he'll be captured.

Maybe it's a good advise to get into 'services' ...

[~G~]

Something I do think might make money is ‘Service Offices’ for people who want to have a go at running a business but either do not have sufficient or do not want to make the commitment of moving funds to Thailand.

Serviced Offices seem to be a good business. Such a good business that moving out of a serviced office into a proper office was one of the best decisions I did here... Once you turn Space into a Service you are no longer competing in the "baht per square meter" category, can add more and more services, usage of meeting rooms by the hour, outgoing faxes, extra internet connections, etc. There is pratically no limit to the revenues. Tax-wise, the whole charge can be defined as a service rather than rent, therefore allowing you to suffer only 3% witholding tax deduction at source rather than 5%.

[FlyingDutchman]

Serviced Offices seem to be a good business. Such a good business that moving out of a serviced office into a proper office was one of the best decisions I did here... Once you turn Space into a Service you are no longer competing in the "baht per square meter" category, can add more and more services, usage of meeting rooms by the hour, outgoing faxes, extra internet connections, etc. There is pratically no limit to the revenues. Tax-wise, the whole charge can be defined as a service rather than rent, therefore allowing you to suffer only 3% witholding tax deduction at source rather than 5%.

I see ... it didn't work for Holland (a friend of mine had about 14 'service offices' spread through Holland, especially for starting businesses), but I guess it could work overthere ?

[~G~]

Serviced Offices seem to be a good business. Such a good business that moving out of a serviced office into a proper office was one of the best decisions I did here... Once you turn Space into a Service you are no longer competing in the "baht per square meter" category, can add more and more services, usage of meeting rooms by the hour, outgoing faxes, extra internet connections, etc. There is pratically no limit to the revenues. Tax-wise, the whole charge can be defined as a service rather than rent, therefore allowing you to suffer only 3% witholding tax deduction at source rather than 5%.

I see ... it didn't work for Holland (a friend of mine had about 14 'service offices' spread through Holland, especially for starting businesses), but I guess it could work overthere ?

My post is merely an observation as a former client of serviced offices. My impression was that their margins are quite high, I imagine there are pitfuls there as in other businesses.. Personally I'd advice you to stick to an area of business you are most experienced in. If it is software, software it should stay. Legally, I assume that any business which involves owning a lot of land will be more tricky for you as a foreigner to set up.

[FlyingDutchman]

My post is merely an observation as a former client of serviced offices. My impression was that their margins are quite high, I imagine there are pitfuls there as in other businesses.. Personally I'd advice you to stick to an area of business you are most experienced in. If it is software, software it should stay. Legally, I assume that any business which involves owning a lot of land will be more tricky for you as a foreigner to set up.

"My post is merely an observation as a former client of serviced offices ..." I already guessed so, ~G~. I know this 'land-stuff' is a problem, but tourist will always be there and there are legal constructions to maintain the land (as far you've got the bath's to deal with it). But what when the service offices, like internet-café's, will be "growing out of their cotes" [too many] ? Then you have nothing but old computers left ... and rent you've gotto pay ... or, when privately owned, an empty office, which nobody wants to rent, because there are too much service offices cause then and a blind horse can see you shouldn't rent an office.

It's not that easy to make a long distance choise .

[Khun Jean]

Your last remark should be:

"It is impossible to make a long distance choice"

Go to Thailand, stay there for at least a year. Holiday doesn't count. See what is happening around you, study your possibilities and then go start a business if that is what you still want.

Especially in Thailand you need to learn up close how it is to start, own and maintain a profitable business. Preferably by studying others without spending too much money yourself.

If you know how the systems works here, and frankly you have no idea yet, a profitable or at least a break even business is possible.

....tourist will always be there...

Yes they will. And so will be your competitors and others who prey on you. Competitors are already happy when they make 500 baht a day profit (for a whole family). And if your business is succesful, wait until you get a visit!, or multiple copies of your concept starting around you.

It happened to me, my neighbour and several others i know.

Is that a dark picure, yes. It is also a reality. Especially in tourist areas.

Forget about the resort. What good does it to you. It will cause a lot of headache with employees, customers, maintenance,etc... If you have software you want to sell here, 100% of your focus should be on that. If not then you are dreaming.

If you want to live here, rent a nice place, keep your money in your homecountry and enjoy live. You will never become 'thai'. Thai people will make sure of that.

Even if you don't want to become wealthy (why not?) you should have enoug to be able to pay your hospital bill. Find out how much you need first.

Don't burn any bridges.