Buying A Business In Los - I Really Don't Know Now..

[robpetterson]

Hi,

My French girlfriend and I want to buy a small guest house in Chang Mai.

The thing is, we are getting so many conflicting stories about whether it's a good idea or a bad one to invest anything into Thailand.

The most recent bit of advice I got said:

"We don't recommend investing in the kingdom, for a business or even property. Even if you form a corporation, you can only be a minor shareholder, and there are strict Thai regulations against setting up "dummy" partners.

Too many things can go wrong with a farang business in Thailand, and we have seen relationships and partnerships turn sour, even fatal, because of it.

Far better to invest your hard-earned cash back home or in a reputable off-shore portfolio, where you know the rules and have consumer protection."

I'm sure that there are some truths to the above, but it paints a pretty bleak picture and to be honest has put a real dampener on our goals.

When we came over at Christmas, we were talking with one guy who said that he knew of a guy who was killed by a jealous competitor(bar owner) just because the other one was doing well.

Another guy I spoke to said he'd never had any trouble dealing with his local Thai business owners/competition in the 7 years that he’s lived there.

At the end of the day we just want a small business that helps with a bit of income and gives us something to do. We won't be relying on just this to get by. We will have a small amount of money coming in from a couple of other things back in the UK (not a lot, but enough).

So basically what I'd like to know from all you savvy expats who are in Thailand now is your views on running a business in Thailand. Sorry this is a bit general, but you got to start somewhere!

Thanks,

Rob

[englishoak]

I spent 4 years living in thailand...... looking, watching, learning, after a while I tested the water a bit ....... I came to my own conclusion that it was better for ME to make the money in the UK where I know how everything operates...... No surprises.

When I return to Thaialnd I want to engage in a business but again it will be after a period of time ........... plenty or research and hard thinking.

I should also mention the money I will invest will be an amount that will not compomise my lifestyle should the venture fail.......

Rule no 1. Never invest more in Thailand than you can afford to lose.

Good luck with whatever you decide to do....

[rishi]

You are both foreigners, right? - That makes it at least twice as difficulty to make a living out of a small business as for a single foreigner and at least 5 times as difficulty as if one of you were a Thai spouse.

Do you have experience in running a guesthouse elsewhere?

Do you speak Thai?

Do you have experience in managing a Thai staff?

If not - you have all odds against you, meaning you have no odds with you.

[EVO]

Ive found, doing business in Thailand that if you are doing ok, and you get to know, and more importantly support the other small businesses around you then you will be just fine.

If you arrive as the farangs, who are very standoffish and keep yourself to yourself, then you may well fall victim the who knows what.

After my small first investment to test the waters worked out well, im investing a much larger amount, albeit with the backing of 2 or 3 of Thailands buggest media stars. Wish me luck and we will see how it goes, as this time i really cannot afford to lose my investment.