What small businesses make a lot of money in Thailand?

[Tmymaimee]

I'm considering opening a small business in Pattaya and would like to generate 20 - 25% margins on annual revenues of 40 million baht or so. All in investment not over 30 million baht.

The most profitable company I analyzed years ago in Canada was an asphalt contractor at around 50% margins. I was thinking of a McDonalds franchise as they are uncomplicated but I would likely have to buy out an existing owner.

Having worked at Lafarge cement before, I would be interested in something along the lines of owning and managing a cement batch plant but I'm not sure if there are any independents left in the Chonburi area.

Any other ideas someone knows of that have worked well?

[simple1]

OP: As a starting point have a look at the URL below, as well as arranging a meeting with the Commercial Attache at your Embassy for a SWOT analysis of investing in Thailand. Might be a good idea to meet a representative of the local Chamber of Commerce for your nationality, for Canadians the URL is below. Unless you are US or an Australian citizen I understand that any business will require 51% shareholder ownership by Thais.

http://www.boi.go.th

http://www.tccc.or.th/

[worgeordie]

With a 51% interest held by Thai partners,you could most likely

end up with nothing.

regards Worgeordie

[i claudius]

my consultancy buisness can guarantee to give you a very large turnover, for a small 1 million baht fee i will arrange a home visit to explainit all to you.

[Naam]

I would be interested in something along the lines of owning and managing a cement batch plant...

not possible with only THB 30mm investment.

[givenall]

Save your money and live well for more than 40 years with 40 mm bath

[Tmymaimee]

With a 51% interest held by Thai partners,you could most likely

end up with nothing.

regards Worgeordie

Could you elaborate further? Was that based on your personal experience? How were your shares structured that allowed your 49% ownership to be removed from the registry without your knowledge? Sorry, but I just don't understand how this could knowingly happen to you.

Is this case still before the courts?

[Tmymaimee]

Save your money and live well for more than 40 years with 40 mm bath

Obviously dividends from 40 million could generate 200,000 baht a month forever but for most successful business owners, its not about the money; more the challenge of the growth.

To simply collect your monthly dividends and not have a challenge in life would become a dreary existence.

Only those who struggle everyday at a dead-end job with little savings look at wining the lottery like a dream; for those that are successful, there would be little change in their lifestyle as they enjoy working.

[Tmymaimee]

I would be interested in something along the lines of owning and managing a cement batch plant...

not possible with only THB 30mm investment.

Do you have any price ranges and profit margins on these plants? Obviously my contribution could be 30 million but my Thai partner would have to invest his 51% so 65 million or so might be somewhere in the ballpark? Sorry, I just don't have knowledge of industrial materials margins in the Pattaya area, but it sounds like you know more about this.

[kennedy]

It's a NO GO PERIOD !!

[Tmymaimee]

It's a NO GO PERIOD !!

Could you elaborate further? Did you try and were unsuccessful? Why did you fail? Were you successful at your own business in another country prior to coming here? Is it something specific to Thailand or to the business itself?

You do realize 90% of small businesses fail within the first 5 years in most countries? So perhaps its not unique to Thailand. Just look around at the pathetic attempts at free enterprise all over the Chonburi area and you see businesses started with people of limited capital, lack of vision and absence of basic business understandings ( I mean both Thai and farang ownerships).

It's a "NO GO PERIOD" to make an offer for an existing McDonald's in Pattaya? Maybe the owner wishes to move on or retire? I'm just not sure why "its a NO GO PERIOD!!"

[davejones]

Save your money and live well for more than 40 years with 40 mm bath

You would be broke long before 40 years are up with that little money. Even with zero inflation it's only 83,000 baht per month. How much do you think inflation will be over next 10-40 years. Your money would be wiped out very quickly if inflation took off, as it is bound to do some time over the next 40 years.

[kennedy]

It's a NO GO PERIOD !!

Could you elaborate further? Did you try and were unsuccessful? Why did you fail? Were you successful at your own business in another country prior to coming here? Is it something specific to Thailand or to the business itself?

You do realize 90% of small businesses fail within the first 5 years in most countries? So perhaps its not unique to Thailand. Just look around at the pathetic attempts at free enterprise all over the Chonburi area and you see businesses started with people of limited capital, lack of vision and absence of basic business understandings ( I mean both Thai and farang ownerships).

It's a "NO GO PERIOD" to make an offer for an existing McDonald's in Pattaya? Maybe the owner wishes to move on or retire? I'm just not sure why "its a NO GO PERIOD!!"

tc

Kneejerk reaction to your Cement Batch Plant small business plan?

Edited January 2, 2014 by kennedy

[Tmymaimee]

It's a NO GO PERIOD !!

Could you elaborate further? Did you try and were unsuccessful? Why did you fail? Were you successful at your own business in another country prior to coming here? Is it something specific to Thailand or to the business itself?

You do realize 90% of small businesses fail within the first 5 years in most countries? So perhaps its not unique to Thailand. Just look around at the pathetic attempts at free enterprise all over the Chonburi area and you see businesses started with people of limited capital, lack of vision and absence of basic business understandings ( I mean both Thai and farang ownerships).

It's a "NO GO PERIOD" to make an offer for an existing McDonald's in Pattaya? Maybe the owner wishes to move on or retire? I'm just not sure why "its a NO GO PERIOD!!"

tc

Kneejerk reaction to your Cement Batch Plant small business plan?

Oh, sorry….I thought you had operated a small business here and had actual advice to offer. Yes, the knee jerk responses….borderline useless, basically bar banter? I posted here for actual first hand experiences, not your kneejerk response. Feel free to refrain from being helpful if nothing worthwhile to contribute? mung kaow jai mai???

[noikrit]

Sooo many negative comments !!!! ....and RIGHTLY SO !!! .. ..30-. 40 Mil Baht ??? .... I just heard of an Ex Red Shirt Poly looking for a start up in a new Airlines Company .. ... Seriously ...... How much Income you want per year ??? ... Work that out and then ... Keep the rest safe... very safe !!! ... CHOKDEE !!!

[Tmymaimee]

Save your money and live well for more than 40 years with 40 mm bath

You would be broke long before 40 years are up with that little money. Even with zero inflation it's only 83,000 baht per month. How much do you think inflation will be over next 10-40 years. Your money would be wiped out very quickly if inflation took off, as it is bound to do some time over the next 40 years.

Yes, for some (maybe yourself), that could be true. However, a diversified portfolio would be hedged against inflationary pressures with convertible bonds, forex hedging and growth stocks that experience growth during inflationary periods (inflation is a by-product of growth).

40 million baht hedged to $USD futures, assuming an average annual 10% rate of return and spending of 83,000 baht per month (assuming house and vehicle paid for) and average annual inflation at 2.5% would only leave you with 1.17 billion baht in the bank in 40 years while living on 270,000 baht per month.

Did I miss something in my calculations? I'm just not sure how your calculations came out so different than mine unless your investment strategy involved buying gold or putting your money under your mattress.

[Naam]

Did I miss something in my calculations?

you missed the (highly likely) probability not achieving 10% yield per annum

[Tmymaimee]

Did I miss something in my calculations?

you missed the (highly likely) probability not achieving 10% yield per annum

Not unlikely at all. Many great dividend paying stocks yielding 4% annually. A further 6% growth is easily achieved. PM me if you need some reccomendations. I'm referring to carefully chosen individual securities, not mutual funds or exchange indexes.

[Naam]

I would be interested in something along the lines of owning and managing a cement batch plant...

not possible with only THB 30mm investment.

Do you have any price ranges and profit margins on these plants? Obviously my contribution could be 30 million but my Thai partner would have to invest his 51% so 65 million or so might be somewhere in the ballpark? Sorry, I just don't have knowledge of industrial materials margins in the Pattaya area, but it sounds like you know more about this.

your Thai partner did not exist when i raised my objections and if 65mm represent 51% of the company's capital the remaining share percentage would amount ~62.45mm, i.e. total capital is THB 127.45mm, you want to invest 30mm = you are short by 32.45mm.

of course you might pull magically an additional partner out of your hat or sleeve who will invest the missing capital... but even then i won't bite and go into details.

[Tmymaimee]

I would be interested in something along the lines of owning and managing a cement batch plant...

not possible with only THB 30mm investment.

Do you have any price ranges and profit margins on these plants? Obviously my contribution could be 30 million but my Thai partner would have to invest his 51% so 65 million or so might be somewhere in the ballpark? Sorry, I just don't have knowledge of industrial materials margins in the Pattaya area, but it sounds like you know more about this.

your Thai partner did not exist when i raised my objections and if 65mm represent 51% of the company's capital the remaining share percentage would amount ~62.45mm, i.e. total capital is THB 127.45mm, you want to invest 30mm = you are short by 32.45mm.

of course you might pull magically an additional partner out of your hat or sleeve who will invest the missing capital... but even then i won't bite and go into details.

Sorry, I meant total 65 million. I have no idea on the price anyways. Why you can't go into details? Is it confidential information? I'm not looking for specifics but rather ideas. When you say you won't bite, are you implying I'm not serious? Why would I take the time to post this request if I wasn't serious?

What businesses have you owned in the past or is that confidential as well? I just don't understand all the innuendos and failure for people to reply with their actual experiences. Its like some kind of private member's club?

[Loles]

If you invest this money to Pattaya my sincere condolences

And who is your Thai partner with 51% ? Please don't tell me: my trustable Thai "wife" cause this makes me jump to the wall.

So take a fellow's advise and live here around 30 yrs with this money with out any problem. If you still miss problem, take home a "wife" from isaan, she and her pretty lovely and nice family can help to spend everything during the 3-6 months period.

[apiwan]

mung k aow jai mai???

You come on here for advice, then slag off the people you asked for advice, with shitty romanisation of the thai language ,

Because if you talk like this to thai people or us who speak thai fluently,you will get knocked out,for sure.

Take the advice most are offering,don't be the next mug,

Or with your attitude invest all of your money

[nidieunimaitre]

I would be interested in something along the lines of owning and managing a cement batch plant...

not possible with only THB 30mm investment.

Naam, now you realy disappoint me.

You of all people, answering this OP.

I thought you were a man of the world - well, not this world, but still...

Just because there are no trolls on Klingon, does not mean that you should assume there are no trolls on Earth.

Perhaps you should buy an updated edition of The Hitchhikers Guide To The Galaxy?

[umbanda]

This is for the people saying that Thai people, Thai wives, Thai partners, etc, etc, are the ones that will take advantage of you and/or your money.

I have a Thai friend. A middle age Thai teacher that married a German older guy. She was 38, single, no children, and he 58 at that time. They lived in her small countryside house. He opened a company with her, and invested 400,000 THB of their money together to start a a factory of purified coconut oil for export in Prachuap Kiri Khan. They had a boy together. Just 5 years later, he divorced her and married his younger secretary.

Now, 10 years later, he sold his company for 1 million US, and owns a mansion in Hua HIn. My friend still teaching in Prachuap and she is living alone in her countryside house. Her only son lives in Hua Hin, with his father and his new mother and younger brothers, mainly because with them he can have the kind of life his mother cannot provide......meaning..all the expensive "toys" and expensive schools that spoiled 10 years boys likes.

No fair at all. Sincerely...I will love if this guy is reading this at this moment, just to make him to think about.....

Anyway....If you are reading this ..Coconut Oil King....Happy New Year to you and Leo.

[Tmymaimee]

mung k aow jai mai???

You come on here for advice, then slag off the people you asked for advice, with shitty romanisation of the thai language , Because if you talk like this to thai people or us who speak thai fluently,you will get knocked out,for sure. Take the advice most are offering,don't be the next mug, Or with your attitude invest all of your money

Exactly what advice are you referring to? I asked for ideas; not short quips and innuendoes. Other than a great link to the Canadian Chamber of Commerce, it was a bunch of uninformed, ignorant responses and hopefully not reflective of the average intelligence of most posters on TV.

How much capital I invest would be relative to the underlying risks and margins; and nothing to do with my attitude. A big reason businesses fail is exactly for that reason - the owner's attitude.

[Tmymaimee]

If you invest this money to Pattaya my sincere condolences

And who is your Thai partner with 51% ? Please don't tell me: my trustable Thai "wife" cause this makes me jump to the wall.

So take a fellow's advise and live here around 30 yrs with this money with out any problem. If you still miss problem, take home a "wife" from isaan, she and her pretty lovely and nice family can help to spend everything during the 3-6 months period.

Sorry, you take me for an idiot? A partner implies someone with education, experience and resources that together form a partnership greater than an individual's contribution. I'm not even married nor plan to as I don't see what a Thai wife can contribute to a partnership any more than a girlfriend can.

And what is wrong with investing money in Pattaya? It receives millions of visitors a year and has the confidence of Hilton Hotels, Holiday Inn, Starbucks, McDonalds and many other great foreign companies. Maybe your personal failures in your life are not necessarily reflective of those with a better ability at making money.

And why would I take on someone else's responsibilities, if you are implying a mother with children. They have a dad and its his responsibility, not mine to look after his own offspring. Should I choose to have children, I will look after mine. And I would think an educated, hard working woman who can contribute her equal share financially would not cause all money to be spent in 3 - 6 months.

Edited January 2, 2014 by Whereustay

[Tmymaimee]

I would be interested in something along the lines of owning and managing a cement batch plant...

not possible with only THB 30mm investment.

Naam, now you realy disappoint me.

You of all people, answering this OP.

I thought you were a man of the world - well, not this world, but still...

Just because there are no trolls on Klingon, does not mean that you should assume there are no trolls on Earth.

Perhaps you should buy an updated edition of The Hitchhikers Guide To The Galaxy?

Its not a troll. Why don't you PM me with your phone and we can talk specifics, otherwise just shut the hell up please. Pardon for the language but I'm starting to see why I see the human farang garbage everywhere I go in Thailand. Nothing worthwhile to contribute and now you know why you have 554 posts. I asked for ideas; not your stupid reply!

[nidieunimaitre]

OP, I just love your attitude!

PS. You mention my 500 or so posts.

They are NOT the result of starting treads such as "why is everybody always looking at me" or "when I look at everybody, why do they seem unhappy".

You deny being a troll.

OK.

Can we compromise on arrogant, argumentative & trollish?

[thrilled]

Ya can live with no problem with a million baht A year in Bangkok.Issan probably 25-35% cheaper if not more?It's your money dude but Thailand is A little unstable right now.Ya sure ya wouldn't want to invest in the stock market around the globe ,Getting dividends with A 4-6% yield?You might want to think about diversifying your income.Remember the saying,Don't put all your eggs in 1 basket.Good luck to ya.

[PeterSmiles]

With a 51% interest held by Thai partners,you could most likely

end up with nothing.

regards Worgeordie

Could you elaborate further? Was that based on your personal experience? How were your shares structured that allowed your 49% ownership to be removed from the registry without your knowledge? Sorry, but I just don't understand how this could knowingly happen to you.

Is this case still before the courts?

Who said that you wouldn't be informed that your 49% ownership would be removed from the registry ?