Anyone out there Looking to move upcountry and own/run a nice little business?

[marstons]

Typical of this forum, all the business 'experts' have arrived slating the proposal, not one positive post. A truly cynical bunch.

The OP probably regrets starting this now.

maybe starting a thread in Pattaya forum about selling a business in Nong Kai not best place really, more sensible answers maybe gained in another formum or classifieds. You got to be of a certain mind set to live in a place like Nong Kai i live near by and it aint for me after Pattaya, Offered free i would not have it and yes rent with that in going will have few takers its hammering down with rain season now and that means no customers.

[marstons]

only one thing it needs to be a success and that's customers and in Nong Kai really is not the place for a booming Pizza business unless he does deliveries with a 100km radius, south of the river that is. work out how many meals have to serve to get back investment, then add to that the high rent, then add to that a living income. One hell of a lot of meals and a high occupancy rate needed to even break even.

Could be somebody will come out of it with a small fortune after going into it with a big fortune.

Seen the books and who by chance made the books??? present owner ?

so many expat in Udon North Isaan area Pattaya forum nearly 700 kms away not best choice. Nong Kai girl moving back means moving back to her Nong Kai family on the doorstep. big drain on the business.

Edited July 9, 2013 by marstons

[bigbamboo]

If the business is such a good deal my only question is why hasn't it sold already?

There must be people in his location looking to buy up good businesses.

Personal reasons, we'll never get the full truth anyway.

I do not understand what is the difference why its not sold, why he is selling why this and why that.

If one is a businessman and has the money, one can see the potential and make the best out of it.

Clearly its not a booming business otherwise it would not be 250K, as i have already said, kitchen alone would cost 100K

Rent is NOT high, considering one can live there and rent out rooms as well.

Make pizza, make a bar , sky is the limit.

If i was married or planning to move that way, i would be very interested.

When i opened my first hotel, the building was a dump and everyone could not understand why i would be interested as 2 previous owners were out of business in the first year.

Well its the 4th for me there now and its getting stronger by the year.

I had four hotels once then some idiot knocked the Monopoly board over and that was the end of that.

[ThaiBob]

Good advice. Another question is about key money. The shophouses by VT7 remain empty not because the rents are that high but because Mrs. View Talay wants over 300k baht every three years, that is the original 3 year lease and then again upon renewal.

Why are we prattling about VT6's astronomical key money?

There is NO key money with the business in the OP's post. For around £5300 down and less than £500 a month that includes a roof over your head, someone could have a cracking little business going. Bung in a moderate coffee maker (if not there already) and with the decent wi-fi and a modest pastry case (think cheap as dirt Thai-style khanoms), one could develop a reasonable customer flow outside of the mainstay pizzas. Maybe it could benefit from a license to sell cold beer (if not in place already)?

I mean it's only 5300 quid???!!! If one has to debate a business plan and long term investment strategy for a piddling amount like that, maybe you don't have enough money in the first place.

I was simply suggesting that it is something that should be reviewed as part of any sale contract because it was NOT mentioned by the OP. As others suggested the entire lease contract needs to be reviewed with the landlord. It's called due diligence.

[lemoncake]

If the business is such a good deal my only question is why hasn't it sold already?

There must be people in his location looking to buy up good businesses.

Personal reasons, we'll never get the full truth anyway.

I do not understand what is the difference why its not sold, why he is selling why this and why that.

If one is a businessman and has the money, one can see the potential and make the best out of it.

Clearly its not a booming business otherwise it would not be 250K, as i have already said, kitchen alone would cost 100K

Rent is NOT high, considering one can live there and rent out rooms as well.

Make pizza, make a bar , sky is the limit.

If i was married or planning to move that way, i would be very interested.

When i opened my first hotel, the building was a dump and everyone could not understand why i would be interested as 2 previous owners were out of business in the first year.

Well its the 4th for me there now and its getting stronger by the year.

I had four hotels once then some idiot knocked the Monopoly board over and that was the end of that.

You too funny to be a comedian, do not give up your pension

[Cnxforever]

23k rent in where, nong khai nowhere, he's getting hosed. If he hasn't already, put him in touch of Greg at Sun Belt, he'll get it sold for him.

I absolutly agree with you - 23k rent in Nong Khai is insane! I am sure he has done a great job building it up but he was ill advised to accept such a high rent. To just pay the rent he needs to turnover at least around 46.000 not including employees and overhead. As mostly in Thailand people like him working hard all month to just make ends meet and provide the landlord with an insane income for doing nothing!

[Mobi]

No matter how attractive this business appears, prospective buyers should simultaneously be asking the following questions :-

1. is there a firm lease in place between the existing business owner and the landlord of the premises and does it specifically allow for assignment of the lease to be transferred to another party without any additional charges or penalty?
2. If there is a lease , how many years is there remaining ?
3. How long would the building owner guarantee that the rent will not be increased above 23K
4. if the rent is eventually increased how would such rent increase be assessed and If both parties cannot agree how would any potential dispute be resolved?

The guy is selling up for personal reasons, and the above questions can all be answered. (I have met the landlord)

I think I have posted enough info here to attract anyone who may be seriously interested, so I think the best plan is for such persons to send me a PM and I will advise further, to the best of my knowledge.

As I said in my opening post, I am only trying to help out the guy out, (his English is not great and he doesn't have good English writing skills), and it did occur to me that there may be someone in Pattaya who was looking for a change of pace and livelihood.

If not, never mind, at least I tried.

Mobi

I appreciate that but the questions I raised should be part of any regular due diligence

before buying any business situated in rented premises.

During the days I was working I saw so many small business people eventually “do their dough “ because they had concentrated all their efforts on negotiating with the business proprietor but at the same time made all sorts of assumptions regarding their ongoing relationship with the landlord which later turned out to be grossly inaccurate.

The prospects for making money in a business of this nature is only as good as the terms of the lease you are able to negotiate with the building owner. If he or she has devious motives unlike in the West where there are laws protecting tenants against predatory landlords, here you would probably have no other recall than to ultimately walk away.

Yes, you are correct your comments and questions are very reasonable. All I am saying is that I will respond to a seriously interested buyer via a PM, not here on open forum.

There is more than enough info here for anyone who is seriously interested to send me a PM

[NanLaew]

23k rent in where, nong khai nowhere, he's getting hosed. If he hasn't already, put him in touch of Greg at Sun Belt, he'll get it sold for him.

I absolutly agree with you - 23k rent in Nong Khai is insane! I am sure he has done a great job building it up but he was ill advised to accept such a high rent. To just pay the rent he needs to turnover at least around 46.000 not including employees and overhead. As mostly in Thailand people like him working hard all month to just make ends meet and provide the landlord with an insane income for doing nothing!

What would be a realistic rent for a Nong Khai shophouse in a prime location, done out as a pizza restaurant, complete with fitted out kitchen PLUS three large, airconditioned and furnished rooms with TV and fridge? Any guesses?

A guy started a pizza place in Ban Chang a few years back just as a sideline and to mitigate the boredom. Admittedly, the walk-in/dine-in customers were sparse but he did quite well with delivery to the bars on a certain street as well as local expats living in the area doing phone-in orders and picking up on the way home.

If anyone is interested in doing the same with this Nong Khai business, PM me as I know a supplier of really excellent pizza boxes in Udon Thani city.

Edited July 10, 2013 by NanLaew

[Mobi]

Good advice. Another question is about key money. The shophouses by VT7 remain empty not because the rents are that high but because Mrs. View Talay wants over 300k baht every three years, that is the original 3 year lease and then again upon renewal.

Why are we prattling about VT6's astronomical key money?

There is NO key money with the business in the OP's post. For around £5300 down and less than £500 a month that includes a roof over your head, someone could have a cracking little business going. Bung in a moderate coffee maker (if not there already) and with the decent wi-fi and a modest pastry case (think cheap as dirt Thai-style khanoms), one could develop a reasonable customer flow outside of the mainstay pizzas. Maybe it could benefit from a license to sell cold beer (if not in place already)?

I mean it's only 5300 quid???!!! If one has to debate a business plan and long term investment strategy for a piddling amount like that, maybe you don't have enough money in the first place.

Thank you NL, you are absolutely right.

The 250K sale price will not begin to cover the cost of the large very impressive commercial Pizza oven, (where he also makes his own bread), and all the other kitchen equipment, furniture etc. The place is not a bar, but he does sell beer and wine. He has all the legal documents even has a work permit.

I used to be a CFO with major responsibilities for mergers and acquisitions, so I do know a thing or two about looking at books and asking the right questions. I also know a thing or two about Thai businesses, having previously worked here for over 8 years and having been coming here, on and off since 1974.

Like you, I believe this could be a great little opportunity for the right guy with a bit of cash to spare. There are some things that I would personally do which I believe would improve the business, but any further discussions will have to be by PM.

To those who believe the rent is too high, I suggest you take a trip to the riverfront area in downtown Nong Khai before you spout off further. Not exactly 'Walking Street', but busy with tourists and locals at any time - particularly high season. If I had a property there I know that I'd be charging at least as much.

Anyone who wants to know more, please contact me by PM.

[breadbin]

I tell you the OP seems to have some sort of personal interest in this business I think as he's getting very agitated with the replies.

If he was just doing a favour and letting people know about the business his first post and answering questions would be all that was needed but now he's so upset he's spouting off about his prior business credentials to try to offer interested parties his view in why its a good deal.

Come on op, spill the beans. If you don't have an interest, calm down and shut up.

[Mobi]

I tell you the OP seems to have some sort of personal interest in this business I think as he's getting very agitated with the replies.

If he was just doing a favour and letting people know about the business his first post and answering questions would be all that was needed but now he's so upset he's spouting off about his prior business credentials to try to offer interested parties his view in why its a good deal.

Come on op, spill the beans. If you don't have an interest, calm down and shut up.

I was not het up or angry, but was merely responding to a few silly comments made in this thread. I expected as much, but that doesn't mean I should remain silent, so please don't tell me to 'shut up'. I have not been rude to anyone, and I expect the same in return.

As for your suggestions that I have some ulterior motive - well I guess that's about par for the course in an open forum.

I ask you? What on earth could I possibly get out of this? - there's barely anything in it for the owner, let alone anyone else.

I was simply trying to help someone, who seems to be genuinely nice person and who needs to move in a hurry.

I guess that's unheard of amongst farangs in LOS

Believe what you like, but those who know me understand what I am about.

In view of your unkind insinuations, I request that this thread is now closed.

Edited July 10, 2013 by Mobi

[NanLaew]

I tell you the OP seems to have some sort of personal interest in this business I think as he's getting very agitated with the replies.

If he was just doing a favour and letting people know about the business his first post and answering questions would be all that was needed but now he's so upset he's spouting off about his prior business credentials to try to offer interested parties his view in why its a good deal.

Come on op, spill the beans. If you don't have an interest, calm down and shut up.

The OP has been badgered by people who appear have no real interest.

Like the OP, I have no personal interest but he was kind enough to share information via PM when requested. For a minimal outlay, it looks like quite a fine opportunity for someone with a real interest, local experience and some business knowledge.

Unfortunately, most contributors to the thread are being typically clueless, jaded, spiteful and ignorant. Why did some comment on the rent being high when they obviously don't know the property or the area?

If you have any real interest, PM the OP. If you are just a tad bored before beer time, then shut up.

[Rimmer]

Too much bickering and bad feeling is being generated here, Topic closed