Business advice for GF wanted.

[ThaiWai]

My GF has owned her own salon and worked in a top salon in Bangkok. She knows the business in and out. She is working at a Phuket salon that was for put up for sale in November 2014 for 550,000 baht. The property also has 2 rooms for rent and is in a prime location. It is now reduced to 350,000. It is a seasonal location but GF claims she will have a Thai customer annual base. The owner seems hot to sell and pursue another venture and has now offered to rent the salon to the GF for 30,000 monthly. The actual property rent with the building owner is 25,000 meaning the GF would have to come up with 55,000 before all other operating expenses. Seems like a very tight margin to me. The idea of renting appeals to me because there is no risk, but renting does not build equity. Also, if the GF builds a successful business there is nothing stopping the owner from taking it back. I told her offer the same 30,000 a month but do it for 1 year as a purchase agreement or agree to the rent option but at 15,000 only. Any thoughts and quality advice would be appreciated but before responding know that this is advice for her not me. I have no intention of donating my hard earned cash to the venture so I don't need to hear the sad stories about lost funds to the GF. Also, I was blue collar and never owned a business so the concept scares the crap out of me but again I am not an investor. So fire away and have a nice day.

[PattayaPhom]

With other associated running costs to break even a PROFIT of THB 2,000 per day so any income plus that also...at 80 Baht a wash, that's a lot of heads needed everyday....Unless she has daily customers for the more expensive treatments such as hair staigtning etc the figures just don't make sense. Sit outside for 3 days, see how many clients visit and what they pay. You said your GF owned her own salon befor...what happened there, did it succeed, why did she sell, and she sold it there must be a profit so as to invest in this one. On top of that a 1 year lease...have you discussed how much of the initial layout she will pay you back each month?Looks like a sure fire way to loose 350K and more.

[worgeordie]

You mean the owner of the salon wants to rent the equipment for 30.000 THB p.m.?

then she has to pay 25000 THB p.m. in rent? thats not going to work.

Why not (if you really want to do it,and can afford to loose your investment),just find

a suitable shop to rent,and buy the equipment,start small and build it up using any

profits,really the equipment you would need should not be that expensive.

Or what about starting a mobile hairdressing business,much better than paying

30K p.m. for rent of equipment you would never own.

regards worgeordie

[ThaiWai]

Well first of all I stand to loose nothing as I will not be investing. The GF lost her first salon to her exBF after their breakup. No profit gained as he took everything. Also, there is no need to surveil the salon because she currently works in the salon that is for sale so she knows exactly what comes through the door. Also, she does not just do washes. She does everything you would expect from a top salon, extensions, color, Brazilian karatin, bonding, waxing, permanent makeup etc etc. The reason for not doing a startup new is because a small amount of research shows that it is almost always cost effective to buy a functioning operation. Also as I mentioned the location is already optimal. Worgeordie hit it on the head though. It is basically renting the location and equipment for 30k which I agree does not work. Which is why I recommended 15k. Keeping in mind the "equipment" includes all the salon equipment and all the furniture and electronics in the 3 rental units. And she is also buying the luxury of being able to walk away if it fails leaving the current owner with the lease with the building owner.

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[Swiss1960]

Well first of all I stand to loose nothing as I will not be investing. The GF lost her first salon to her exBF after their breakup. No profit gained as he took everything. Also, there is no need to surveil the salon because she currently works in the salon that is for sale so she knows exactly what comes through the door. Also, she does not just do washes. She does everything you would expect from a top salon, extensions, color, Brazilian karatin, bonding, waxing, permanent makeup etc etc. The reason for not doing a startup new is because a small amount of research shows that it is almost always cost effective to buy a functioning operation. Also as I mentioned the location is already optimal. Worgeordie hit it on the head though. It is basically renting the location and equipment for 30k which I agree does not work. Which is why I recommended 15k. Keeping in mind the "equipment" includes all the salon equipment and all the furniture and electronics in the 3 rental units. And she is also buying the luxury of being able to walk away if it fails leaving the current owner with the lease with the building owner.

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Well, she could wake away if it does not work... but she could also be SENT away if the business owner later decides NOT to sell... that is the other side of the "rent" coin...

But I think you / your GF are the only ones to answer the questions and make the decision:

• why does the current owner want to sell and why did he go down with the price? that in itself is suspicious..
• you say she works there... so she should be in a unique position to have knowledge of the books and know turnover and net profit of the shop...
• she should therefore know prices for products and add-on's like electricity etc and see what the margin would be
• she should be talking with the building owner and see what the lease contract says and for how long she would get a lease contract and for what price increase (if any)...

and with the answers to above questions, it will be easy to decide whether she should go for the shop, no matter whether rent, rent for buy or buy directly.

[ThaiWai]

Yes Swiss, I think you make good points. She is in a position to see the books and has looked. The shop is pulling in about 60K monthly not including the 3 room rentals which are full. They bring in 15000 monthly. My concern about the revenue is that these are high season earnings. I think that ends next month. The reason for selling from what I can see is that the current owner is in a situation that I refuse to get into. Specifically, farang BF bought the place for his Thai wife hoping to keep her busy (locked down). She now is bored with it. She wants to party every night not manage a business. The BF is paying the staff salaries from his pocket and she empties the register into hers. So basically he is just filling her pockets, emptying his own and has not achieved the desired control factor so he wants to dump it. They have not payed electric or water for 2 months now and, while money is coming in, it's being spent at the local club not on the bills. So that brings me to the landlord like you mentioned. I told the GF to sit and wait. When the landlord stops getting payed she will change the locks. Thats the time to take over the location and deal with the landlord directly and bypass the current owner who no one would would want to business with any way. Thanks for helping me think it out.

[losworld]

Don't waste your time the Thai economy as well as the political situation is very unstable. Wait a year or two and see what happens. Tell her to go get another job at a good salon until then.

[PattayaPhom]

Yes Swiss, I think you make good points. She is in a position to see the books and has looked. The shop is pulling in about 60K monthly not including the 3 room rentals which are full. They bring in 15000 monthly. My concern about the revenue is that these are high season earnings. I think that ends next month. The reason for selling from what I can see is that the current owner is in a situation that I refuse to get into. Specifically, farang BF bought the place for his Thai wife hoping to keep her busy (locked down). She now is bored with it. She wants to party every night not manage a business. The BF is paying the staff salaries from his pocket and she empties the register into hers. So basically he is just filling her pockets, emptying his own and has not achieved the desired control factor so he wants to dump it. They have not payed electric or water for 2 months now and, while money is coming in, it's being spent at the local club not on the bills. So that brings me to the landlord like you mentioned. I told the GF to sit and wait. When the landlord stops getting payed she will change the locks. Thats the time to take over the location and deal with the landlord directly and bypass the current owner who no one would would want to business with any way. Thanks for helping me think it out.

60K and 15k Rent 3 rooms equals 75K month. You mentioned there are staff. So from 75K, salaries, rent, utilities, even if you go direct to owner it still dosnt add up to making a profit

[ThaiWai]

Yes Swiss, I think you make good points. She is in a position to see the books and has looked. The shop is pulling in about 60K monthly not including the 3 room rentals which are full. They bring in 15000 monthly. My concern about the revenue is that these are high season earnings. I think that ends next month. The reason for selling from what I can see is that the current owner is in a situation that I refuse to get into. Specifically, farang BF bought the place for his Thai wife hoping to keep her busy (locked down). She now is bored with it. She wants to party every night not manage a business. The BF is paying the staff salaries from his pocket and she empties the register into hers. So basically he is just filling her pockets, emptying his own and has not achieved the desired control factor so he wants to dump it. They have not payed electric or water for 2 months now and, while money is coming in, it's being spent at the local club not on the bills. So that brings me to the landlord like you mentioned. I told the GF to sit and wait. When the landlord stops getting payed she will change the locks. Thats the time to take over the location and deal with the landlord directly and bypass the current owner who no one would would want to business with any way. Thanks for helping me think it out.

60K and 15k Rent 3 rooms equals 75K month. You mentioned there are staff. So from 75K, salaries, rent, utilities, even if you go direct to owner it still dosnt add up to making a profit

Rooms are 15k each so 15x3+60=105. Rent 25k, Staff 20k, utilities 3k. 105-48=57k. This is on a good month, full occupancy, not accounting for materials (color, extensions yadyada could be 27k??) Figure 30k monthly income. Her salary now is 10k. There is also 2 massage beds which if staff is subcontracted for that would be gravy.

[ThaiWai]

Don't waste your time the Thai economy as well as the political situation is very unstable. Wait a year or two and see what happens. Tell her to go get another job at a good salon until then.

Potentially good advice but there is more to the story in that having her own business would allow her to reunite with her family. Too much to detail but it is relevant. Another job is not great advice either as salons in Phuket pay these girls peanuts. I can tell you she and another staff member worked on a farang customer for 2 hours including an hour after closing hours and after a 3000 bill the customer walked out without throwing the girls a nickel tip. It's quite sad to see a girl work on her feet all day for 350 baht and not a penny more because of these people are so tight. Mind you thats 7 days a week with 2 days off all month. And she never stops smiling.

[Rajhulmaheesh]

All one needs to know is its a Thai Girlfriend Dont do it...............................................................

To add insult this guy is talking quite big numbers..................................Double run fast.

[Rajhulmaheesh]

You mean the owner of the salon wants to rent the equipment for 30.000 THB p.m.?

then she has to pay 25000 THB p.m. in rent? thats not going to work.

Why not (if you really want to do it,and can afford to loose your investment),just find

a suitable shop to rent,and buy the equipment,start small and build it up using any

profits,really the equipment you would need should not be that expensive.

Or what about starting a mobile hairdressing business,much better than paying

30K p.m. for rent of equipment you would never own.

regards worgeordie

Better to just have no connection to the girls career................................hahaha. Just see her at night-business owners work very hard and dont have time for foreign boyfriends..........................hahaha.

I love Thai GFs and business. Do these guys really except a success?

[2fishin2]

Pm me. My girl has a hair shop in patong. Ill tell you like it is. Send me a google map of where the shop is first.

[Rajhulmaheesh]

Yes Swiss, I think you make good points. She is in a position to see the books and has looked. The shop is pulling in about 60K monthly not including the 3 room rentals which are full. They bring in 15000 monthly. My concern about the revenue is that these are high season earnings. I think that ends next month. The reason for selling from what I can see is that the current owner is in a situation that I refuse to get into. Specifically, farang BF bought the place for his Thai wife hoping to keep her busy (locked down). She now is bored with it. She wants to party every night not manage a business. The BF is paying the staff salaries from his pocket and she empties the register into hers. So basically he is just filling her pockets, emptying his own and has not achieved the desired control factor so he wants to dump it. They have not payed electric or water for 2 months now and, while money is coming in, it's being spent at the local club not on the bills. So that brings me to the landlord like you mentioned. I told the GF to sit and wait. When the landlord stops getting payed she will change the locks. Thats the time to take over the location and deal with the landlord directly and bypass the current owner who no one would would want to business with any way. Thanks for helping me think it out.

You know all this and yet you interested.........................................HAHAHAHAHAHAHAHAHAHAHA! One franag after another after another buy shop.................................................................

[Rajhulmaheesh]

Yes Swiss, I think you make good points. She is in a position to see the books and has looked. The shop is pulling in about 60K monthly not including the 3 room rentals which are full. They bring in 15000 monthly. My concern about the revenue is that these are high season earnings. I think that ends next month. The reason for selling from what I can see is that the current owner is in a situation that I refuse to get into. Specifically, farang BF bought the place for his Thai wife hoping to keep her busy (locked down). She now is bored with it. She wants to party every night not manage a business. The BF is paying the staff salaries from his pocket and she empties the register into hers. So basically he is just filling her pockets, emptying his own and has not achieved the desired control factor so he wants to dump it. They have not payed electric or water for 2 months now and, while money is coming in, it's being spent at the local club not on the bills. So that brings me to the landlord like you mentioned. I told the GF to sit and wait. When the landlord stops getting payed she will change the locks. Thats the time to take over the location and deal with the landlord directly and bypass the current owner who no one would would want to business with any way. Thanks for helping me think it out.

60K and 15k Rent 3 rooms equals 75K month. You mentioned there are staff. So from 75K, salaries, rent, utilities, even if you go direct to owner it still dosnt add up to making a profit

Rooms are 15k each so 15x3+60=105. Rent 25k, Staff 20k, utilities 3k. 105-48=57k. This is on a good month, full occupancy, not accounting for materials (color, extensions yadyada could be 27k??) Figure 30k monthly income. Her salary now is 10k. There is also 2 massage beds which if staff is subcontracted for that would be gravy.

You want your gf giving SpEcIaLs?

[Rajhulmaheesh]

Pm me. My girl has a hair shop in patong. Ill tell you like it is. Send me a google map of where the shop is first.

Sorry for your disaster. How bad is it?

[ThaiWai]

All one needs to know is its a Thai Girlfriend Dont do it...............................................................

To add insult this guy is talking quite big numbers..................................Double run fast.

I know many hardworking Thai people many of whom are girlfriends. Sorry you have not experienced the same perharps you should be careful when generalizing a gender of entire countries population. Also, none of this involves any financing from me so I risk nothing.

Edited February 24, 2015 by ThaiWai

[ThaiWai]

Yes Swiss, I think you make good points. She is in a position to see the books and has looked. The shop is pulling in about 60K monthly not including the 3 room rentals which are full. They bring in 15000 monthly. My concern about the revenue is that these are high season earnings. I think that ends next month. The reason for selling from what I can see is that the current owner is in a situation that I refuse to get into. Specifically, farang BF bought the place for his Thai wife hoping to keep her busy (locked down). She now is bored with it. She wants to party every night not manage a business. The BF is paying the staff salaries from his pocket and she empties the register into hers. So basically he is just filling her pockets, emptying his own and has not achieved the desired control factor so he wants to dump it. They have not payed electric or water for 2 months now and, while money is coming in, it's being spent at the local club not on the bills. So that brings me to the landlord like you mentioned. I told the GF to sit and wait. When the landlord stops getting payed she will change the locks. Thats the time to take over the location and deal with the landlord directly and bypass the current owner who no one would would want to business with any way. Thanks for helping me think it out.

You know all this and yet you interested.........................................HAHAHAHAHAHAHAHAHAHAHA! One franag after another after another buy shop.................................................................

Perhaps you should read and then re-read the OP before posting based on inaccurate belief again.

[Rajhulmaheesh]

A top salon worker makes 10,000 a month? No wonder my girl gave it up and went back to Soi Cowboy..........................hahaha. God bless her, she went to school and even tried it for awhile but the cashflow just wasnt enough for the mother.

[ThaiWai]

A top salon worker makes 10,000 a month? No wonder my girl gave it up and went back to Soi Cowboy..........................hahaha. God bless her, she went to school and even tried it for awhile but the cashflow just wasnt enough for the mother.

Never said a top salon in Phuket. I said a top salon in BKK. Salaries in Phuket and BKK are very different. You answered my question. Your GF's are bar girls. Thats the difference between you and I. That and reading comprehension.

[2fishin2]

A top salon worker makes 10,000 a month? No wonder my girl gave it up and went back to Soi Cowboy..........................hahaha. God bless her, she went to school and even tried it for awhile but the cashflow just wasnt enough for the mother.

Never said a top salon in Phuket. I said a top salon in BKK. Salaries in Phuket and BKK are very different. You answered my question. Your GF's are bar girls. Thats the difference between you and I. That and reading comprehension.

Guy dont listen to that scumbag hes just baiting you. Now send me a google earth snapshot of her location in a pm. Ill tell you like it is for my girl.

[AlexRRR]

I know 2 hairdressers, one works solo in Thonglor pretty much mangers herself and the shop she's on 10,000 the second has her own business in Chaing Mai her turn over is around 21,000 she rents shop front no bedroom but she does sleep there half the week.

Lots and lots of hairdressers in Thailand, if the TGF is keen on the business she's working in and the owner wants out negotiate an agreement that she pays x amount a month like the 15,000 you think is fair TGF picks up rental, if the projected turn over materialise in 12 months she will buy the business out right for agreed sum, id be looking to have that 15,000 x 12 months as a down payment if TGF takes up the option to buy, of course TGF would beed a lawyer to draw up a contract with the agreement negotiated.

Its possible she could get a loan from a bank to buy the business at the end of the 12 months provided she can show financials to support the application for a loan which means basic bookwork needs to be kept on income and expenses....good luck.

Edited February 24, 2015 by AlexRRR

[Rajhulmaheesh]

Only way these businesses works is if the space dubbles as their home.

Its not possible this girl will get a loan from a bank in a year given the info we have. I doubt banks loan on these type of deals. The boyfriends would save themeselves a lot if they took note of this.