Business Opportunities In Thailand

[rabelson]

I apologize up front if this topic has been explored in previous detail but I just found this site and my excitment has the best of me right now.

My present job situation has me thinking real hard about making a career change. I've been an employee all my life but I have an entrepreneural spirt I'd like to explore. At 50, I think I have about 10 motivated years left. Bottom line, I'm seeking some advice from those of you that know the Thai businees scene far better than I. I'm not a stranger to Thailand - been a guest about a dozen times over a 25 year period. I'm seeking advice primarily to know if investing in a business is likely to produce an income stream for me. I would not plan to live in Thailand so I would guess that such an investment would be very difficult if I were not there. Still, there is always the chance of falling in with a partner. I'm not tied to any particular type of business but certainly something under $100,000 initial investment would be good. Please let me know if I'm crazy or if there might be a future in this idea...

Many thanks in advance, Bob

[monty]

The way you describe it, I would say your chances are very low...

Some golden rules on doing business in Thailand (just my opinion...):

For a small business (<100,000 US$), if you have the cash, try to do it without a partner. Conflicts between partners are much more common then excellent relationships between them. The partners would have to be on the exact same wavelength to make it work! This is not to say that succesfull partnerships do not exist, there's just not to many of them around...

You'll have to be here, with your business, to guide it, run it and generally make everything go as smooth as possible. Thai workers in general do not have the same pride and responsibility in their job as Westerners are used to. Which is absolutely necesary to keep a business going strong without the owner present.

One thing in your post is a bit confusing, first you state you have some 10 motivated, entrepeneurial spirited years to come, and then you state you'd just need an investment giving you a steady income stream without even having to be with your business over here

Unfortunatly, the chances for you to make some good money by just putting a couple of 10 thousands of dollars in some business and then sit back and watch the cash flow in is quite remote, anywhere in the world I would say!

[Thaiquila]

Yeah, sounds like better odds to buy stocks with the money.

[SunbeltAsia]

I apologize up front if this topic has been explored in previous detail but I just found this site and my excitment has the best of me right now.

My present job situation has me thinking real hard about making a career change. I've been an employee all my life but I have an entrepreneural spirt I'd like to explore. At 50, I think I have about 10 motivated years left. Bottom line, I'm seeking some advice from those of you that know the Thai businees scene far better than I. I'm not a stranger to Thailand - been a guest about a dozen times over a 25 year period. I'm seeking advice primarily to know if investing in a business is likely to produce an income stream for me. I would not plan to live in Thailand so I would guess that such an investment would be very difficult if I were not there. Still, there is always the chance of falling in with a partner. I'm not tied to any particular type of business but certainly something under $100,000 initial investment would be good. Please let me know if I'm crazy or if there might be a future in this idea...

Many thanks in advance, Bob

Bob,

For most people your post sounds very confusing but being in the business of mergers and acquisitions for almost 25 years, it is not at all. I know that 90% of the people that I met 24 years ago, felt the same and 90% of the people I meet today feel the same.

It is normal that you want to be your own boss and call your own shots. However it is also normal to have second thoughts, five seconds later " is this the right thing to do as you are used to the job security?"

You are scared.

Owning your own business is not for everyone. Many people can't handle getting a check almost their entire adult life and now all of a sudden, having the responsibility giving those checks out plus all the other upkeep.

Being a partner with someone else in business, is not for everyone as well. In fact 78% of all partnerships don't work, many for the basic reason, no communication on having a agreement beforehand( what about the profit...pay dividends or expand, hours to be worked, responsibilities, etc)

Yes you should be scared.

If you can know that people that did overcome that fear, that 80% of all millionaires in the World, became rich from owning a business and it was not from working for someone else. A number of the millionaires became one from being partners as well and even some billionaires with a small investment.

If you have risk capital, money that won't change your lifestyle because owning a business does have risk. Then you may want to look at our website www.sunbeltasia.com

This will not be magic where you point and click and you own a business. This is going to take work on your part to do due diligence.

As for being a partner and you are not around the location. It certainly happens in business, more than most people would ever think it does. I know easily quite a few partners like this. You of course should get a monthly PL, balance sheet. Fly in from time to time to just check in.

IMHO, look at opportunities for a partnership where the business can't keep up with the demand. They need to grow but don't have the cash because of the 90 day-180 day turn around. Of course you need to due diligence and everything has to check out.

If you want to swing for the fences for a home run, look at something new and innovative. Invest in a partner that has a clear goal and vision who is incredibly focused and driven to make it in the business world. Look for someone that is “Hungry” Cash flow and not ringing the cash register right away, will be big concerns. A start up always has high odds of failure and you would probably have a 90% chance of losing your money. The reason people play this game is to hit the gusher, Microsoft, Subway, Dell, Yahoo, Mrs. Fields cookies all had partners that hit it big. It has very high risk but high rewards.

The partnership that I would stay away from is one where the business has used up the cash flow and needs more and is raising capital by selling shares. High risk and I feel the probability of hitting the home run, is not high.

The last advice is to have someone in your corner that is making sure all your rights are protected from a legal sense. Make sure you get the shares you are buying and your rights are protected.

One more thing, in any partnership, you need to like the guy and vise a versa. You have to be able to trust them but protect yourself. That will not come from one or two meetings but over time.

If you follow this advice and do your due diligence, the odds go from you flushing your money down the toilet, to good odds you will have excellent returns.

Take your time and go slow.

www.sunbeltasia.com

[listenup]

If you think you have entrepreneural skills, you are better to have an active part in making the company a success.

Another important factor is making sure you are enjoying what you are doing.

[SunbeltAsia]

Another important factor is making sure you are enjoying what you are doing.

Print out this and put it in your wallet. Those 13 words are priceless. You have to have the passion. If you do, the money will come.

Every successful person in business had this, the passion and enjoyment. No matter how much you are making, if you don't enjoy getting up at 4 a.m. in the morning to make donuts. You are going to hate it. If you like to make donuts, you can't wait for that alarm bell to ring. In fact you are already up at 3:30 a.m. and eaten when the alarm has gone off.

If you don't enjoy dry-cleaning, you are going to hate it even more when you are stuck in the back doing this job and its 110 degrees outside. You enjoy the business, the hotter the better. You'll be smiling, cause those shirts look sharp.

If your business is sewage removal and you enjoy this type of work. Your motto is " The smellier the better. You are happy and will not having any problems telling people what you do at cocktail parties.

You have pride in what you do, the money takes care of itself.

If you are a silent partner then it doesn’t matter, unless you are in say... the sewage removal. You are not comfortable telling the hot blonde your Porsche came from sewage.

[cclub75]

The way you describe it, I would say your chances are very low...

I don't think it's good to demotivate people, up front like that.

I mean : create a business is difficult everywhere.

I can compare with Old Europe for instance : well, thailand for some points appears easier : we could speak about social costs that prevent to hire people, taxes etc. In France, as soon as you have signed the papers, and even before you print your first invoice, the State starts to ask you money.

And then : if you manage to survive this first "assault", and your business starts to make profit, then the State is coming back with income taxes, controls, and finally, when you want to sell your company, State achieves its lethal work (capital gain taxes, taxes on "fortune" etc.).

Plus regulations etc.

So, I would definitly not make such definitive statement like "creating a business in Thailand is impossible go back to your dream box".

Then I would simply give an general advice : you'll get the best leverage, and you will maximize your chances, by buying/producing in Thailand and selling in western countries. I believe that it's the best model.

It's not new, not revolutionnary. Many people use it. There are reasons.

[DeDanan]

Hi All,

This topic reminded me of a quote in the book “ No Money No Honey” (I think)

How to make a small fortune in Pattaya! ….. Start with a big one.

Have a happy…

DeDanan