Thai wife wants to open a shop

[longstebe]

Am I wrong please tell me so? When the ops speaks of stock my impression he is not talking about financial trading in the stock market etc. he is talking about buying material, supplies and renting out a location for the business? If this is the case first we or I need to know what business she wants to open then I can respond from there?

It has nothing to do with the stock market.

I am talking about renting a location to begin with and selling supplies.

[dean008]

a nice reply, is this a first? this website is really full of <deleted> up people

My wife has a village shop as long ad its clean turns over stock regularly if will earn her a reasonable living once set up properly negatives don't give credit under any circumstances be careful of attracting the local lo cal (whiskey) heads sitting outside it actually puts of nice Thai customers good luck in your new venture any advice or help I can give you pls ask

[jacksam]

Are you nuts.... The business won't make money and its just another way to milk the cash cow. That code name is YOU.

why are farang so dumb

Oh buy a house and put it in her name.

Let's kill two posts at same time.

Geez will they ever learn

[thailand49]

Am I wrong please tell me so? When the ops speaks of stock my impression he is not talking about financial trading in the stock market etc. he is talking about buying material, supplies and renting out a location for the business? If this is the case first we or I need to know what business she wants to open then I can respond from there?

It has nothing to do with the stock market.

I am talking about renting a location to begin with and selling supplies.

That is what I thought, what type of shop does you wife want to open? What type of supplies are she selling?

[flyingsaucersarereal]

I have heard it so many times from my ex girlfriend. I want shop but they have no idea how to make it profitable it seems like it is all for show.

I wish you luck but don't throw to much money at it because most new businesses fail.

[ericthai]

no worry about taxes...............lol. Doesnt look like your wifes venture will make much.

One person shopgirl operation is just a waste of time IF your obj is to make money. Only good to kill time .. Or maybe launder bad money.............lol.

You really think all of these one person shops are not making money and people are just wasting their time? If you really believe that then it shows you

have no idea about these things.

My wife has a shop selling ladies clothes. She has had the shop for about 5 years now.

she started with a small shop and then moved into a bigger shop. She only has one person working for her 2 days a week so she can take a day to go purchase more inventory and one day holiday. She makes decent money about 100-130K per month gross. she nets about 50K per month. She works hard, opens her shop around 9-9:30 each morning and stays open until 8-9pm. Her location is good and is in a known area for shopping for clothing for working in an office.

She has a mixed inventory of working clothes and younger girls clothes for going out.

To the OP, location is very important along with what type of shop. my wife started out in one location and did ok but only had enough sales to cover expenses

and net about 10-15K which was the same as she was making when working in an office. she did some research and found a better location. When she moved

her sales almost tripled. Make sure your girlfriend is investing some money too so she has something to lose if the business fails. my wife wanted to open the shop on her own but would have had to wait another year if i did not help her. she paid me back within 6 months. As for registering the shop talk to her she should be able to find this out on her own. When my wife opened her shop she didn't not register and nobody else was registered, i told her she better make it all legal so she has no problems in the future. All the other shop owners told her don't need to. She listened to me and registered. i don't know the details as she did that on her own, but she said it was easy and no big deal. Wish your girlfriend good luck!

[RigPig]

What you have to be careful of IMO, is that they don't seem to comprehend how much it has cost to take that 100B over the counter, they seem to think it is all profit or at least they made their 20B. They don't seem to be able to factor in rent, power etc, then at the end of the month they can't understand why they are short. Not all of course there are some VERY rich Thais but on average unless they own the property and are living there it doesn't seem to last long...

Good luck all the same

You, and a few others, seem to be talking about a person who has no business sense. If that were the case with my wife, I would have her take a bookkeeping course at a local university. That way, at least, she would know that expenses are deducted from revenue and be, at least, able to keep the books.

I apologise, but your OP was a bit vague as far as that is concerned, if she has enough business acumen then why the post? Yes we (I) am assuming, and we all know what that does (makes an ASS out of U and Me).

Good luck with it all the same...

[BKKdreaming]

Are you in the city or out in the country ?

I think its a great idea as long as it does not hurt you to much money wise

Just make sure they do not "Eat"" the profits , the money for the business needs to be separate from pocket / lunch money

and always correct them when they say they made 1000 baht today when they really sold 1000 baht , have them right down expenses and cost of goods so they have a better idea what the made in profit ,

I get this all the time at home , people saying they made $1000 at the Sunday flea market and not considering what they paid for the stall or the goods they sold !

OHHH one important thing , get rid of old inventory if it does not sell , discount it to cost and use the money for fresh stuff ,

Every shop in town has a corner where all the profit is hiding and thats the stuff that has not sold !

[KK-Mike]

OP, no disrespect, but its probably just a good intention, a toy to show off to others,One man band, you are funding it, when reality bites, day in day out,no big profits, its all about show, hope i am wrong and you/she makes a success of it and it doesnt go the way of so many others, usually hairdressers and beauty shops.

Usually maybe, but not always. When I met my wife ten years ago she had a beauty shop with 2 staff.

Her shop was open from 8 am to 8 pm, 365 days a year for over 12 years. She was out of the shop for

one week during that time because of a car wreck. She raised two sons on her own, had some money in the bank and a few pieces of gold. There are plenty of good Thai ladies..

[RigPig]

Nomad97 and Chao Lao Beach gave you the best information. Much of the rest, as you well know, is just fluff and gripes.

Here in the sticks, I watched a local girl open a shop with the help and support of her farang 'husband'. As in your own situation, they wanted to do everything right and did the research. One of the important starting points I remember is when they were registering the business, they went for the top level (whatever it's called) licence. That's a shop where you can sell food, cigarettes and alcohol. They said that it was only a little more expensive than the 'regular' licence but well worth the added investment.

Hubby purchased the original stock for the shop (less than a thousand dollar's worth) but specified that future restocking had to be done with the money earned from the sales of the stock. Profit was to be used for purchasing additional items and for improving the business.

The original 'shop' was opened in the spare front room of their house. No frills and no airconditioning. Since that time, several additional bamboo structures have been built around the front of the shop which now house eating and drinking areas. These were built from the profits of the shop, not from a hand in anyone's pocket.

Contrary to the idea of chasing away the locals that hang out there, people are encouraged to come, sit, pass the time, chat and basically give the place atmosphere. Even it they're not purchasing anything. You see, a busy shop/bar/restaurant attracts customers who will spend money.

Some of the successful ideas I see in their business are the friendliness of the girl and her family (yes, most of the family do help around the shop). They do not look down on anyone, are always polite and do not act like they are better than anyone. As much as is possible in an open-air shop and in this area, the shop is always clean, the shelves are tidy, well presented and well stocked. I have never known them to run out of anything as they purchase new stock BEFORE the old stock runs out.

The other successful component to this business is their pricing. They are only a few baht cheaper than elsewhere around but they are still making around 10% on each sale. And, due to their slightly lower prices, they attract customers from a wider area who don't realise that they are probably spending the savings in that shop on using more petrol to get there.

Oh, and because they always keep their beer and softdrinks on ice, even overnight, they have the coldest beers around. This is not the few token ice blocks in the bottom of the cooler/esky/chilly bin. These are fully iced up drinks bins. They do not sell the ice from the drink bins (a dirty habit I see in many establishments). They have a separate ice bin and a higher end ice supplier for 'consumable' ice (cheap ice is purchased for the coolers, more expensive ice is used solely for sales).

Due to their cleanliness and organisation, they have also become the local distributors for an ice-cream company and a dairy. The dairy fridges (milk drinks and yoghurt) and ice cream freezers were supplied to them, free of charge and are cleaned, organised and re-stocked daily by the respective companies. All the girl has to do is pay the power bill and sell the stock.

Sure, it's just nickel and dime stuff but, in just over 12 months, they are now laying a concrete foundation for a more permanent shop. They told me that it will probably take around 2 years to build this new shop (purely on profits earned in the existing shop, no loans are being taken) but they're not in any hurry as they are very happy with their business.

Don't think that the shop is all beer and skittles. It's hard work and takes a lot of dedication. The business is a 7 day per week concern. Starting at 4am, when they go to the market to buy the freshest produce and closing at 8 or 9pm when the last customers go home. They do also have people knocking on the door at odd hours (after closing) usually to buy beer, whisky or cigarettes. Rather than chasing them off, one of the family always makes the sale. Again, it's about keeping customers happy and keeping them returning.

As far as I have been told, they were raided once by the local equivalent of the ATF (alcohol, tobacco and firearms) who were accusing them of selling alcohol imported from Cambodia. The girl replied that she was infact selling spirits which were purchased in a Cambodian market. She also produced the receipts for the purchases and showed them her licence stating that she could, in fact, sell imported alcohol. After much posturing and the demanding of bribes, they finally hit her with a fine of 200B for failing to display a copy of the licence in a prominent place. The fine was paid at the local 'council' offices and a receipt was obtained. The licence is now laminated and hung on the wall out the front of the house.

They also get visits from various 'people' offering loans for improving the business. They see a successful business and want to help the proprietors part with some of their wealth under the guise of assistance. The only 'loan' that was ever considered was the initial money that hubby put into the purchase of the first batch of stock. He claims that he still wants it back. She says she'll 'work off the loan' by giving him a free, cold beer, from time-to-time. She'll even open the bottle for him so that he doesn't strain himself.

Hubby does still work but he is no longer complaining about having to fork money over to a lazy wife and useless family (his words). His wife now has a certain degree of financial independance and, as a successful business operator, a higher standing in the local community.

The one thing that does have the locals wondering is why this girl has bothered to open a shop and work hard at building a business. Afterall, she has a farang husband and should be like all the other farang wives in the area. Living in a new mansion, dripping with gold and driving around in a new SUV.

This, to me, is a success story and I wish you and your family every luck in pursuing your own goals. It's not easy but, if you are doing something for a living that you are enjoying and not answering to a boss, can it really be considered working?

This is great, and I have no doubt that this "business model" works, it does for most Thai businesses. However you did say and I quote "The original 'shop' was opened in the spare front room of their house."

Which meas there was no electricity, water or rent costs, was this factored in? The OP said they were going to rent a shop, this is a BIG cut into the overheads, and is not visible so, would it have worked with a potential extra 30% overhead or was the profit because the overheads were kept to a minimum and probably "subsidised"?

[RigPig]

Nomad97 and Chao Lao Beach gave you the best information. Much of the rest, as you well know, is just fluff and gripes.

Here in the sticks, I watched a local girl open a shop with the help and support of her farang 'husband'. As in your own situation, they wanted to do everything right and did the research. One of the important starting points I remember is when they were registering the business, they went for the top level (whatever it's called) licence. That's a shop where you can sell food, cigarettes and alcohol. They said that it was only a little more expensive than the 'regular' licence but well worth the added investment.

Hubby purchased the original stock for the shop (less than a thousand dollar's worth) but specified that future restocking had to be done with the money earned from the sales of the stock. Profit was to be used for purchasing additional items and for improving the business.

The original 'shop' was opened in the spare front room of their house. No frills and no airconditioning. Since that time, several additional bamboo structures have been built around the front of the shop which now house eating and drinking areas. These were built from the profits of the shop, not from a hand in anyone's pocket.

Contrary to the idea of chasing away the locals that hang out there, people are encouraged to come, sit, pass the time, chat and basically give the place atmosphere. Even it they're not purchasing anything. You see, a busy shop/bar/restaurant attracts customers who will spend money.

Some of the successful ideas I see in their business are the friendliness of the girl and her family (yes, most of the family do help around the shop). They do not look down on anyone, are always polite and do not act like they are better than anyone. As much as is possible in an open-air shop and in this area, the shop is always clean, the shelves are tidy, well presented and well stocked. I have never known them to run out of anything as they purchase new stock BEFORE the old stock runs out.

The other successful component to this business is their pricing. They are only a few baht cheaper than elsewhere around but they are still making around 10% on each sale. And, due to their slightly lower prices, they attract customers from a wider area who don't realise that they are probably spending the savings in that shop on using more petrol to get there.

Oh, and because they always keep their beer and softdrinks on ice, even overnight, they have the coldest beers around. This is not the few token ice blocks in the bottom of the cooler/esky/chilly bin. These are fully iced up drinks bins. They do not sell the ice from the drink bins (a dirty habit I see in many establishments). They have a separate ice bin and a higher end ice supplier for 'consumable' ice (cheap ice is purchased for the coolers, more expensive ice is used solely for sales).

Due to their cleanliness and organisation, they have also become the local distributors for an ice-cream company and a dairy. The dairy fridges (milk drinks and yoghurt) and ice cream freezers were supplied to them, free of charge and are cleaned, organised and re-stocked daily by the respective companies. All the girl has to do is pay the power bill and sell the stock.

Sure, it's just nickel and dime stuff but, in just over 12 months, they are now laying a concrete foundation for a more permanent shop. They told me that it will probably take around 2 years to build this new shop (purely on profits earned in the existing shop, no loans are being taken) but they're not in any hurry as they are very happy with their business.

Don't think that the shop is all beer and skittles. It's hard work and takes a lot of dedication. The business is a 7 day per week concern. Starting at 4am, when they go to the market to buy the freshest produce and closing at 8 or 9pm when the last customers go home. They do also have people knocking on the door at odd hours (after closing) usually to buy beer, whisky or cigarettes. Rather than chasing them off, one of the family always makes the sale. Again, it's about keeping customers happy and keeping them returning.

As far as I have been told, they were raided once by the local equivalent of the ATF (alcohol, tobacco and firearms) who were accusing them of selling alcohol imported from Cambodia. The girl replied that she was infact selling spirits which were purchased in a Cambodian market. She also produced the receipts for the purchases and showed them her licence stating that she could, in fact, sell imported alcohol. After much posturing and the demanding of bribes, they finally hit her with a fine of 200B for failing to display a copy of the licence in a prominent place. The fine was paid at the local 'council' offices and a receipt was obtained. The licence is now laminated and hung on the wall out the front of the house.

They also get visits from various 'people' offering loans for improving the business. They see a successful business and want to help the proprietors part with some of their wealth under the guise of assistance. The only 'loan' that was ever considered was the initial money that hubby put into the purchase of the first batch of stock. He claims that he still wants it back. She says she'll 'work off the loan' by giving him a free, cold beer, from time-to-time. She'll even open the bottle for him so that he doesn't strain himself.

Hubby does still work but he is no longer complaining about having to fork money over to a lazy wife and useless family (his words). His wife now has a certain degree of financial independance and, as a successful business operator, a higher standing in the local community.

The one thing that does have the locals wondering is why this girl has bothered to open a shop and work hard at building a business. Afterall, she has a farang husband and should be like all the other farang wives in the area. Living in a new mansion, dripping with gold and driving around in a new SUV.

This, to me, is a success story and I wish you and your family every luck in pursuing your own goals. It's not easy but, if you are doing something for a living that you are enjoying and not answering to a boss, can it really be considered working?

its not fair to compare an operation conducted from a familys home.

you have to judge success as if the business were paying for rent,etc. otherwise its just delusion.

Why is that so choochoo?

The family have already worked hard (rice, rubber, tapioca and sugar) in order to purchase land and build a house. The fact that they have done that already shows that they can build a successful business, from scratch. They were renting their first property and eventually purchased it. So, in your view, does that count?

But, I still need to know why the only way to judge a successful business is one that is run from a rental property?

Are you saying that all the people who own 'shop-houses' (those rows and rows of buildings that are springing up on the ourskirts of any large village and town) can not be considered as a successful business as some do not rent the premises?

I don't know anything about economics but can someone please ratify what choochoo is saying? I may be a little air-headed but I always thought the way to running a successful business was to get incoming high and outgoing low. A great way to get your outgoing low is to buy, and own, the premises.

Something that kills many businesses? Taking on too many loans when starting up and then trying to expand too quickly while still trying to pay off the principal.

Please don't lead me to believe that you are just bringing in skewed logic to perpetuate the belief system you hold when discussing the success of others.

Simply because that is not the ACTUAL cost of the business, you are combining electricity, water costs and (as the OP stated) rental costs as part of the business!!

That's great but it is not a true reflection of the ACTUAL cost of the business is. Electricity for runnin 4 refrigerators which becomes par of your monthly power bill is actually a business cost, therefore you are "subsidising" the business from your personal income. Go the other way, you have a sandwich shop and you eat for free, where did the money for the sandwich come from.

Tis is the problem, you may have more money at the end of the day but not as much as you think, at the end of the month you have to settle up, if you are "disguasing" it then you will NEVER know how much you are ACTUALLY making...

[kurtramsbottom]

I know the OP personally ,he's an intelligent fella that wouldn't go into something like this without doing his homework first,I also know that his Wife is a smart cookie too, who has studied hard over the years to allow herself to be in a position to run her own business.

Some really good advice on here Stebe (& some crass comments from bellends ,but that's normal ) .Good luck to you both mate I know that you can make it work.

[wooloomooloo]

Good thread.

My wife will acquire her British passport within the next few months and I've long been keen on the idea of her returning to Thailand to set up a business. I know she'd make a success of whatever she turns her hand to.

She's clever, learns fast and educated. She's also extremely tight with money. MIL will also get her hands dirty in the blink of an eye. No time for an entourage with them both at the helm.

Unfortunately, my wife has a hang-up about leaving me on my own for extended periods of time.

Anyway, I'm working on it and it's certainly not a dead idea by any means. She's free to come and go as she pleases soon enough.

Better to have tried and failed...

[longstebe]

Cheers fellas, like I say, all advice is welcomed.

One thing that does strike me, most people automatically think its a food store with the usual snacks, beer and whiskey etc....

This is a genuine question, does it really matter what I'm selling?

It could be roof tiles or even water filters.

[BKKdreaming]

one other thing , never believe a Thai...........ahhh got you on that one.....

But the saving face that is important with Thais also goes with business , they are not going to tell you the truth of how the business is really doing,

they are not going to admit they made a mistake ,

and they are going to brag about how good they are doing , even when they are not

this is Thai to Thai........when they are talking with us it can be either way depending which way will hit the button that will make us help them

its not just Thais that do this , but the face saving just makes it worse.

But like the other guy observing at a local market , there is a lot of small money being spent everyday which adds up to decent money at the end of a long day

[Ace of Pop]

Cheers fellas, like I say, all advice is welcomed.

One thing that does strike me, most people automatically think its a food store with the usual snacks, beer and whiskey etc....

This is a genuine question, does it really matter what I'm selling?

It could be roof tiles or even water filters.

Yes Sir, it realy does matter what your selling.For example take Farm Chemicals and any product store the Big Boys run, should you tread on their toes , you will get a warning, shut down ,leave town.

[jacko45k]

In the next village in the space of one year three nicely built and about three shabbily built shops have been set up, all apparently selling the same things. They all want to open a shop or a 'restaurant' because that's the only thing they can do to earn money. Apart from going to Pattaya.

Good luck anyway

Sent from my GT-S7500 using Thaivisa Connect Thailand mobile app

Yes lots of shops in Pattaya!

I hope the OP has thought about this particularly if he is financing it. It is a common dream and plan, sit there playing on the phone as money walks through the door. But many ladies lose interest after some months, fed up of having to get up early and be there.

[kurtramsbottom]

Cheers fellas, like I say, all advice is welcomed.

One thing that does strike me, most people automatically think its a food store with the usual snacks, beer and whiskey etc....

This is a genuine question, does it really matter what I'm selling?

It could be roof tiles or even water filters.

Yes Sir, it realy does matter what your selling.For example take Farm Chemicals and any product store the Big Boys run, should you tread on their toes , you will get a warning, shut down ,leave town.

What else should they not sell so they can stay away from bother from the 'Big Boys'?

[thailand49]

Cheers fellas, like I say, all advice is welcomed.

One thing that does strike me, most people automatically think its a food store with the usual snacks, beer and whiskey etc....

This is a genuine question, does it really matter what I'm selling?

It could be roof tiles or even water filters.

Yes, it does make a big difference what you are selling? There is a thing called competition?

My only and final advice for you. Do not think for a moment being in Thailand that Business 101 does not matter. The hardest thing is saying no to your wife even in your heart when you hear the idea it does not seem to be a winner. If you are able to put your bias aside these are the things you should think about?

Prior to you coming into her life why hasn't she proceeded with her idea? If she took her idea to a Bank for a loan would the Bank give her a loan to open this business? If you weren't footing the bill would she be able to start making a profit after six month to start paying the loan on her own.? Basically do you or her even have a business plan in place? The rule of thumb as far as I'm concern if the Bank is willing to give her the loan then I would foot the bill for the operation.

Like I said it does make a difference what you are selling.. because the beauty about Thailand most Thais do not pay VAT, etc.. for a very small business. And if it is a business like selling curtains you don't even have to worry about the BIB coming in for their tea money!

Here is a example... in Pattaya in a area called the Darkside (Soi Nernpludwan ) you see lots of hair salon at one time Why? It seem every lady that has a little money or especially a Falang sponsor want to open one up because this is all they know what they hear. The one's that stay open is because they have a sponsor ( deep pockets ) the one's that don't close after a few months! This goes on and on with small beer bars too! The mini mart is the biggest loser idea of all. Thais pay for a bottle of beer for example 45 baht, they sell it for 47 baht, this is the same for chips buy 4 baht and sell for 5 baht, Crazy! Some purchased a display unit to chill the drinks, the electric bill cost 1,000 baht a month to run the unit digging a bigger hole to make a profit. It goes on and on..

If you basically do the math majority of the time it is a lost cause but the wife or girlfriend do not see it because it is not their money that they are losing! In the heart it is a loser but she says she is bored of the good life you are providing so she has a idea and after she actually has to sit and work all day she is too tired now to take care of you? 555

Do the numbers and you will have your answer! I would not worry too much about the VAT etc... unless you are selling Cigs and liquor! The biggest problem you have is not opening!

Edited October 30, 2014 by thailand49

[Stray]

Here in the sticks. . .

The original 'shop' was opened in the spare front room of their house. No frills and no airconditioning. Since that time, several additional bamboo structures have been built around the front of the shop which now house eating and drinking areas. These were built from the profits of the shop, not from a hand in anyone's pocket.

This, to me, is a success story and I wish you and your family every luck in pursuing your own goals. It's not easy but, if you are doing something for a living that you are enjoying and not answering to a boss, can it really be considered working?

This is great, and I have no doubt that this "business model" works, it does for most Thai businesses. However you did say and I quote "The original 'shop' was opened in the spare front room of their house."

Which meas there was no electricity, water or rent costs, was this factored in? The OP said they were going to rent a shop, this is a BIG cut into the overheads, and is not visible so, would it have worked with a potential extra 30% overhead or was the profit because the overheads were kept to a minimum and probably "subsidised"?

The original shop is still being run from the spare front room of the house. The shop pays the electricity bill for the entire household (1200B/month).

There are no water costs as there is no running water in this area (in the sticks). Water is pumped from a wells on the property.

There are no rental costs as their previous farming successes meant that they could purchase land and build a house. The shop is their next venture and, from what I see and hear, it is doing very well.

The only 'subsidy' was the outlay of 25 000B, by the girl's husband, to purchase the original stock. All additional items (shelving etc.) have been purchased gradually as money (profit) from the business permitted. Refridgerators and freezers have been supplied by companies that wish to sell their merchandise in her shop. It has gotten to the point where some suppliers are even giving free samples and merchandise to the shop to see how it will sell in this area.

Getting back to the OP, this is a success story I see in the countryside and some ideas on how a Thai and foreigner are making it work. Rather than ending in tears, the girl is happy as she has her own business to keep her busy, make a living and make her happy. Hubby is happy as he is not financially supporting a girl who is doing nothing, as is a very common thing in this part of the world.

[Ace of Pop]

Cheers fellas, like I say, all advice is welcomed.

One thing that does strike me, most people automatically think its a food store with the usual snacks, beer and whiskey etc....

This is a genuine question, does it really matter what I'm selling?

It could be roof tiles or even water filters.

Yes Sir, it realy does matter what your selling.For example take Farm Chemicals and any product store the Big Boys run, should you tread on their toes , you will get a warning, shut down ,leave town.

What else should they not sell so they can stay away from bother from the 'Big Boys'?

If the O/P sticks to the usual stuff Ferangs get involved in No Prob.If he said what he intended to vend i could comment.

[choochoo]

Here in the sticks. . .

The original 'shop' was opened in the spare front room of their house. No frills and no airconditioning. Since that time, several additional bamboo structures have been built around the front of the shop which now house eating and drinking areas. These were built from the profits of the shop, not from a hand in anyone's pocket.

This, to me, is a success story and I wish you and your family every luck in pursuing your own goals. It's not easy but, if you are doing something for a living that you are enjoying and not answering to a boss, can it really be considered working?

This is great, and I have no doubt that this "business model" works, it does for most Thai businesses. However you did say and I quote "The original 'shop' was opened in the spare front room of their house."

Which meas there was no electricity, water or rent costs, was this factored in? The OP said they were going to rent a shop, this is a BIG cut into the overheads, and is not visible so, would it have worked with a potential extra 30% overhead or was the profit because the overheads were kept to a minimum and probably "subsidised"?

The original shop is still being run from the spare front room of the house. The shop pays the electricity bill for the entire household (1200B/month).

There are no water costs as there is no running water in this area (in the sticks). Water is pumped from a wells on the property.

There are no rental costs as their previous farming successes meant that they could purchase land and build a house. The shop is their next venture and, from what I see and hear, it is doing very well.

The only 'subsidy' was the outlay of 25 000B, by the girl's husband, to purchase the original stock. All additional items (shelving etc.) have been purchased gradually as money (profit) from the business permitted. Refridgerators and freezers have been supplied by companies that wish to sell their merchandise in her shop. It has gotten to the point where some suppliers are even giving free samples and merchandise to the shop to see how it will sell in this area.

Getting back to the OP, this is a success story I see in the countryside and some ideas on how a Thai and foreigner are making it work. Rather than ending in tears, the girl is happy as she has her own business to keep her busy, make a living and make her happy. Hubby is happy as he is not financially supporting a girl who is doing nothing, as is a very common thing in this part of the world.

there are costs involved in running every business. Perhaps you just dont want to acknowledge them as it takes away from your sucess story.

If a girl can use her house to incremntally increase revenue to the family- thats great. But it doesnt mean she is legitimately running a sucessful business.

If familly ran a profitable farming operation. Why are they now selling peanuts and cold beer? i smell fe c e s somewhere?

Edited October 30, 2014 by choochoo

[Stray]

This, to me, is a success story and I wish you and your family every luck in pursuing your own goals. It's not easy but, if you are doing something for a living that you are enjoying and not answering to a boss, can it really be considered working?

its not fair to compare an operation conducted from a familys home.

you have to judge success as if the business were paying for rent,etc. otherwise its just delusion.

Why is that so choochoo?

The family have already worked hard (rice, rubber, tapioca and sugar) in order to purchase land and build a house. The fact that they have done that already shows that they can build a successful business, from scratch. They were renting their first property and eventually purchased it. So, in your view, does that count?

But, I still need to know why the only way to judge a successful business is one that is run from a rental property?

Are you saying that all the people who own 'shop-houses' (those rows and rows of buildings that are springing up on the ourskirts of any large village and town) can not be considered as a successful business as some do not rent the premises?

I don't know anything about economics but can someone please ratify what choochoo is saying? I may be a little air-headed but I always thought the way to running a successful business was to get incoming high and outgoing low. A great way to get your outgoing low is to buy, and own, the premises.

Something that kills many businesses? Taking on too many loans when starting up and then trying to expand too quickly while still trying to pay off the principal.

Please don't lead me to believe that you are just bringing in skewed logic to perpetuate the belief system you hold when discussing the success of others.

Simply because that is not the ACTUAL cost of the business, you are combining electricity, water costs and (as the OP stated) rental costs as part of the business!!

That's great but it is not a true reflection of the ACTUAL cost of the business is. Electricity for runnin 4 refrigerators which becomes par of your monthly power bill is actually a business cost, therefore you are "subsidising" the business from your personal income. Go the other way, you have a sandwich shop and you eat for free, where did the money for the sandwich come from.

Tis is the problem, you may have more money at the end of the day but not as much as you think, at the end of the month you have to settle up, if you are "disguasing" it then you will NEVER know how much you are ACTUALLY making...

Let me make the assumption that you work for a living. Your wage/salary/remuneration pays for your costs of living (accommodation, food, entertainment, luxuries). What you have left, at the end of each month, is what you call savings.

Let's go to the little shop down the highway. At the end of each month, after all expenses are taken into consideration, the money left over is called profit. Now, as the shop is supporting the household expenses (electricitiy, in this case), the shop is subsidising the household so the shop's profit margin is lower than it would normally be. After expenses, the remaining profit from the shop is used to improve the shop, used for the usual costs of living and, what is left over, goes into savings.

So, no, there are no free sandwiches. If anyone wants a sandwich (the girl, her husband, her family, or a customer) they have to pay for it.

Their 'business model' is based on the fact that they are not borrowing money to purchase anything so they have no outstanding loans sucking the business dry. They are also not rushing into expanding the business until the business has produced enough money to support any expansion. That is why they estimate it will take them around 2 years to build the new shop premises.

The OP wanted to know if it was feasible to go ahead with his girl's idea to open a shop. Yes, it is feasible and these are some ideas they can take into consideration.

Now, going to choochoo's assumption, and the one that you followed up on, can a successful business only be judged on one that is run from a rental property? If the answer is yes, I'd like to take you guys up on a game of Monopoly any day.

A business can start out in a rental property but, a truly successful business, is the one that has advanced to the stage where it is buying the property.

[choochoo]

its really simple.

OP wants to open a simple one person one shop operation. There isnt all kinds of extenuating circumstances. He will prolly fail........................................lol. we just dont want him too......................lol. ok -we really dont care.

[longstebe]

Cheers fellas, like I say, all advice is welcomed.

One thing that does strike me, most people automatically think its a food store with the usual snacks, beer and whiskey etc....

This is a genuine question, does it really matter what I'm selling?

It could be roof tiles or even water filters.

Yes Sir, it realy does matter what your selling.For example take Farm Chemicals and any product store the Big Boys run, should you tread on their toes , you will get a warning, shut down ,leave town.

Fair comment mate, my point is, it shouldn't matter what I'm selling as long as you do your homework. Location and competition are the two most important things IMO.

Cost is obviously important but the business surely needs a bit of time to establish itself. The most important thing down the line is to know when to pull the plug if its not working.

[choochoo]

give us a pro forma business plan. all businesses should have one.

[BKKdreaming]

Pride of ownership is a GOOD thing......

Helping them fend for themselves so they can be proud of what they have done (yes with some help) is GOOD

being negative about everyone and everything is NOT good

Even if you lose some money but learn what you did wrong it is worth the lesson , we have all made mistakes in business ,

but the help you give them is something they can never do themselves ( having 25k baht front money) and hopefully will make them a Thai style living and hopefully a little more ,

and its all better than doing nothing and watching Thai soap operas and sleeping all day.......

and yes I have made lots of mistakes and learned from most of them , and I do keep trying and thank my friends for the support they give me......

if you do not make mistakes you are not trying hard enough to push the borders of what you are doing........

[Stray]

Here in the sticks. . .

The original 'shop' was opened in the spare front room of their house. No frills and no airconditioning. Since that time, several additional bamboo structures have been built around the front of the shop which now house eating and drinking areas. These were built from the profits of the shop, not from a hand in anyone's pocket.

This, to me, is a success story and I wish you and your family every luck in pursuing your own goals. It's not easy but, if you are doing something for a living that you are enjoying and not answering to a boss, can it really be considered working?

This is great, and I have no doubt that this "business model" works, it does for most Thai businesses. However you did say and I quote "The original 'shop' was opened in the spare front room of their house."

Which meas there was no electricity, water or rent costs, was this factored in? The OP said they were going to rent a shop, this is a BIG cut into the overheads, and is not visible so, would it have worked with a potential extra 30% overhead or was the profit because the overheads were kept to a minimum and probably "subsidised"?

The original shop is still being run from the spare front room of the house. The shop pays the electricity bill for the entire household (1200B/month).

There are no water costs as there is no running water in this area (in the sticks). Water is pumped from a wells on the property.

There are no rental costs as their previous farming successes meant that they could purchase land and build a house. The shop is their next venture and, from what I see and hear, it is doing very well.

The only 'subsidy' was the outlay of 25 000B, by the girl's husband, to purchase the original stock. All additional items (shelving etc.) have been purchased gradually as money (profit) from the business permitted. Refridgerators and freezers have been supplied by companies that wish to sell their merchandise in her shop. It has gotten to the point where some suppliers are even giving free samples and merchandise to the shop to see how it will sell in this area.

Getting back to the OP, this is a success story I see in the countryside and some ideas on how a Thai and foreigner are making it work. Rather than ending in tears, the girl is happy as she has her own business to keep her busy, make a living and make her happy. Hubby is happy as he is not financially supporting a girl who is doing nothing, as is a very common thing in this part of the world.

there are costs involved in running every business. Perhaps you just dont want to acknowledge them as it takes away from your sucess story.

If a girl can use her house to incremntally increase revenue to the family- thats great. But it doesnt mean she is legitimately running a sucessful business.

If familly ran a profitable farming operation. Why are they now selling peanuts and cold beer? i smell fe c e s somewhere?

The family are still running a successful farming business and are in the process of buying more land for other family members to expand on it.

The shop is the girl's business and would not have gone ahead if the money was not readily available. The fact that the girls husband pitched in with the initial stock purchase only made the business open earlier than intended.

But, getting back to what creates and maintains a successful business. They have done their homework on what would work in this area. They have started small on the money they had available to them, at the time. They are expanding as they can, when they can with money earned, not loans.

Is the business making money? Yes. Is the business supporting those involved? Yes. Can the business expand under it's own merit without further cash input? Yes. Are there any savings made from profits? Yes.

All successful businesses have to start somewhere. Just because they don't have a franchise on every corner and an outlet in every shopping mall, does not mean that it is not successful.

[Ace of Pop]

That could be youre first Learning Curve. It Shouldn't Matter, but in Fact it matters very much. The opposition wont say a thing, let you invest a packet, run a few years then "Bang" they go to work on you. Seen it happen many times being here 25 Years. Crafty lot, when the ferang pulls the plug they have made sure hes lost big time..Cause one can make it here, but easy it aint.

[RigPig]

its not fair to compare an operation conducted from a familys home.

you have to judge success as if the business were paying for rent,etc. otherwise its just delusion.

Why is that so choochoo?

The family have already worked hard (rice, rubber, tapioca and sugar) in order to purchase land and build a house. The fact that they have done that already shows that they can build a successful business, from scratch. They were renting their first property and eventually purchased it. So, in your view, does that count?

But, I still need to know why the only way to judge a successful business is one that is run from a rental property?

Are you saying that all the people who own 'shop-houses' (those rows and rows of buildings that are springing up on the ourskirts of any large village and town) can not be considered as a successful business as some do not rent the premises?

I don't know anything about economics but can someone please ratify what choochoo is saying? I may be a little air-headed but I always thought the way to running a successful business was to get incoming high and outgoing low. A great way to get your outgoing low is to buy, and own, the premises.

Something that kills many businesses? Taking on too many loans when starting up and then trying to expand too quickly while still trying to pay off the principal.

Please don't lead me to believe that you are just bringing in skewed logic to perpetuate the belief system you hold when discussing the success of others.

Simply because that is not the ACTUAL cost of the business, you are combining electricity, water costs and (as the OP stated) rental costs as part of the business!!

That's great but it is not a true reflection of the ACTUAL cost of the business is. Electricity for runnin 4 refrigerators which becomes par of your monthly power bill is actually a business cost, therefore you are "subsidising" the business from your personal income. Go the other way, you have a sandwich shop and you eat for free, where did the money for the sandwich come from.

Tis is the problem, you may have more money at the end of the day but not as much as you think, at the end of the month you have to settle up, if you are "disguasing" it then you will NEVER know how much you are ACTUALLY making...

Let me make the assumption that you work for a living. Your wage/salary/remuneration pays for your costs of living (accommodation, food, entertainment, luxuries). What you have left, at the end of each month, is what you call savings.

Let's go to the little shop down the highway. At the end of each month, after all expenses are taken into consideration, the money left over is called profit. Now, as the shop is supporting the household expenses (electricitiy, in this case), the shop is subsidising the household so the shop's profit margin is lower than it would normally be. After expenses, the remaining profit from the shop is used to improve the shop, used for the usual costs of living and, what is left over, goes into savings.

So, no, there are no free sandwiches. If anyone wants a sandwich (the girl, her husband, her family, or a customer) they have to pay for it.

Their 'business model' is based on the fact that they are not borrowing money to purchase anything so they have no outstanding loans sucking the business dry. They are also not rushing into expanding the business until the business has produced enough money to support any expansion. That is why they estimate it will take them around 2 years to build the new shop premises.

The OP wanted to know if it was feasible to go ahead with his girl's idea to open a shop. Yes, it is feasible and these are some ideas they can take into consideration.

Now, going to choochoo's assumption, and the one that you followed up on, can a successful business only be judged on one that is run from a rental property? If the answer is yes, I'd like to take you guys up on a game of Monopoly any day.

A business can start out in a rental property but, a truly successful business, is the one that has advanced to the stage where it is buying the property.

No one is saying it can't be done!

We (I) am just trying to assist the OP by pointing out some of the potential pitfalls.

You say "Let's go to the little shop down the highway. At the end of each month, after all expenses are taken into consideration, the money left over is called profit."

I agree, but the highlighted section is the key.

And

"Now, as the shop is supporting the household expenses (electricitiy, in this case), the shop is subsidising the household so the shop's profit margin is lower than it would normally be."

Usually I think this is the other way around where the shop expenses are being subsidised from the household, thus giving a false perception the business is more profitable than it really is.

Also

"So, no, there are no free sandwiches. If anyone wants a sandwich (the girl, her husband, her family, or a customer) they have to pay for it."

Also agree but this is a common mistake people make in business, they don't realise they will have to sell 5 "sandwiches" to pay for the free one they just had.

But yes you have to try in order to succeed, however outlaying 100,000 Baht that would take 3 years to get back and spending 60 hours a week to make 3000 Baht hardly seems worth it except for it's keeping you off the street.

I am not saying this is the case as we still have no idea what the OP intends or where, however, he asked for opinions and advise, so that he can make an educated decision, and that's what this is, not criticism....