You Need Money To Make Money...

[Jim's_a_Thai_Fox]

Hi,

I'm thinking about going into business with a guy who has some great ideas to make money in LOS. Naturally, like every business in the world, we need start up capital to get us up and running.

He's the 'creative genius', I'm the 'other part'...

He's married to a Thai living on the correct visa.

I've just come off the back of working here (legit, with WP and non-imm B visa) for 2.5 years as a teacher (previous mgt exp in UK).

Combined Personal Assets:

1.5 million bhat cash

house with 1.1 million bhat paid upfront, remaining 600k financed (current estimated value 2.5 million)

His business's current asset:

880,000 bhat worth of land owned 'free and clear'

Any idea as to what type of organisation/business would be willing/able to lend us some money or to invest in our plans?

We'd like at least 10 million bhat. Budgets and business plans are being drawn up for potential investors/lenders.

Thanks for any help,

James

[dashf trader]

go to www.sunbeltasia.com or you can find some rich guys here to join venture with you

[Heng]

Combined Personal Assets:

1.5 million bhat cash

house with 1.1 million bhat paid upfront, remaining 600k financed (current estimated value 2.5 million)

His business's current asset:

880,000 bhat worth of land owned 'free and clear'

Any idea as to what type of organisation/business would be willing/able to lend us some money or to invest in our plans?

We'd like at least 10 million bhat. Budgets and business plans are being drawn up for potential investors/lenders.

Thanks for any help,

James

You can probably get about a million Baht for the house and about 300-400 thousand Baht from land @ 1-2% per month from just about any pawn shop, loan contract endorsed by the land department.

Or you can just go to the bank, although the review procedure will be a lot slower and likely they'll want to see that you've actually started running some kind of business as well.

[skippybangkok]

He's the 'creative genius'.

His business's current asset:

880,000 bhat worth of land owned 'free and clear'

Maybe leave out the "genius" part for the time being until his creativity earns some hard earned cash. Add a few zeros behind the amount to eanr the title "genius" . Seen tons of waco's with all kinds of idea's, but bringing them to a sucessful conclusion is a different thing.

Exercise caution, dont rush into anything. See if there are other business models in other parts of the world which has proven this to work.

[bendix]

Sounds like just what I'm looking for. To whom do I make the cheque payable?

[Rinrada]

I am always getting offers of hundreds of millions of dollars $ from friendly guys in Africa..mostly Nigeria.....seems all they need is your bank account details...easy..... and they will deposit it in your.....

[Cyberstar]

Looks like a catch 22. If you've got a good business idea, you don't want someone else to steal it ... But if you need financing - beyond what you can get without revealing each and every detail of your ideas - well, the one(s) you reveal your ideas to, might want them - but they might neither want you nor need you ...

Are you sure you need all 10 M in the start up fase?... It might be easier to find investors once you have some "products" to show - and it might be easier to get the money without exposing all secrets and "blueprints".

Edited November 2, 2006 by Cyberstar

[teej]

Hang out in front of a Benz dealership and tell the potential S-Class buyer to buy the S280 instead of the S500 and save 8.5 million baht in the process (make sure you reccommend replacing his lowly "S280" badge with the almighty "S500" badge on the boot).

Maybe he will be so impressed by your frugality that he will just give you the difference. Add that easy 8.5 to your 1.5 and boom, 10million!

Given that Merc sells a few of these babies a week, forget your business plan -- this IS your business plan!

Kidding aside Jim, I'm just highlighting how much money there is out here in the hands of Bangkokians... I would recommend that you get your business plan sorted out and make all financial calculations down to the satang (Thais, even insanely rich ones, are still inclined to be cheap deep down inside, so get your numbers straight and pretty). In addition, my advice would be to get your project off the ground with your money if possible (and your partner's) following Heng's advice re: re-financing your house/land... start small and prove that money can be made -- this is the ultimate proof to the potential investor -- that you've put your own ass on the line with your own money and you can deliver results. Anything else is just fluff, and Thais do not part with their baht on the basis of fluff unless it is status-raising fluff...

That said, If you actually need 10million to get off the ground, hmm... well there's a Benz dealer on Thonglor 18...

Teej

Edited November 2, 2006 by teej

[DaveBKK]

Talk to a lawyer and put together a non-compete / non-disclosure agreement to sign with any potential investors. Any investor worth his salt will want to have all the nitty gritty details of your business idea, and this should all be in the business plan.

Also, for other funding possibilities, check out http://www.prosper.com

[Heng]

Nothing wrong with starting small either. IMO not having any downward financing pressure from debt is a very valuable (although intangible) positive asset in itself as well.

[JimsKnight]

Hi,

I'm thinking about going into business with a guy who has some great ideas to make money in LOS. Naturally, like every business in the world, we need start up capital to get us up and running.

He's the 'creative genius', I'm the 'other part'...

He's married to a Thai living on the correct visa.

I've just come off the back of working here (legit, with WP and non-imm B visa) for 2.5 years as a teacher (previous mgt exp in UK).

Combined Personal Assets:

1.5 million bhat cash

house with 1.1 million bhat paid upfront, remaining 600k financed (current estimated value 2.5 million)

His business's current asset:

880,000 bhat worth of land owned 'free and clear'

Any idea as to what type of organisation/business would be willing/able to lend us some money or to invest in our plans?

We'd like at least 10 million bhat. Budgets and business plans are being drawn up for potential investors/lenders.

Thanks for any help,

James

Before you ask what type of organisation would be willing, what exactly is it your going to have in mind as a business venture?

If you don't know this then forget it, cause without a goal your on shaky ground for all the other pieces to fall into place.

That said the banks would be a good start.

How well do you know this 'Creative Genius' Can he be trusted? Would you do the same thing venture in your home country with a guy you know as well as this one??

Do some digging and see what comes out the other end. Speak to neutral friends to get a gauge about him.

"You're the 'Other Guy.' Are you fronting the cash or something?

You seem too trusting to me, so I'd council a bit of shrewdness and guile. In business you'll need it!

First off risk no more than half your cash. If it fails at least you'll have enough to try and rebuild again.

I've heard more get rich quick schemes than I care to remember and the 'invest' into XXXXX type of company is the riskiest.

I've met too many unlucky falang whose come to THailand with big dreams and bright eyes get sucked into the vampires lair!

The "Invest in my 'friends' wifes business name" approach is very shady and borderline. As your an outsider you haven't any legal recourse if his wife and partner suddenly does a runner.

And I have seen this happen to guys like you. At the very least get a contract drawn up by a trusted lawyer so you've some umbrella against the worst case senario.

Sorry for sounding so cynical but it sounds very vague what this guys feeding you.

All the best,

Good luck in your enterprise!

[HowardJohnson]

Is there a Thai version of the TV programme "Dragons Den"? (UK Boardies will know this)

It would be an interesting pitch......

[LoveDaBlues]

If your buddy is such a 'creative genius' he should be able to 'create' a biz here on small money and expand as the profits roll in. That's what I did in starting a biz for the wife's family. We've expanded 1300% in around 8 months.

[eljeque]

The creative genius should create some creative financing.

How old is this guy? If he is in his mid-thirties, and he has only 880,000 baht, then he hasn't got much for a genius.

Thais and foreigners start all sorts of small businesses here for a few hundred thousand baht.

The reason that banks and people are not so ready to lend money to otehrs who have none is because they believe that it is quite possible that in the near future, the borrower will still be in the same position, but this time, he will have none of the lender;'s money left over as well.

It is possible that this creative genius is trying to get you to guarantee loans that he may run off with.

It is in your best interest to find an alternate plan.

Good luck

[Gary A]

I was the OTHER guy in a Thai business venture. It wasn't too bad, all it ended up costing me was about $8,000 US. The business failed BUT the guy is going to pay me back as soon as he gets on his feet. YEAH, RIGHT.

What's the old TV commercial, the one that says "We do it the old fashioned way, we earn our money".