Thailand Property Report/News
Shipping Household & Clearing agent
English/Thai Law Office
BUYING YOUR BUSINESS:
NOW YOU CAN EVEN POST YOUR OWN HOUSES ON THE NEW THAILAND CLASSIFIED / AUCTION WEBSITE to buy or sell. Open to all businesses and private sales & buying advertise here. Check out the Thaivideotube and law service. The website is in Thai/Eng language and its totally FREE.
The hottest Thai Classifieds in Thailand
When a foreigner comes to Thailand they forget that they must have income over and above all the "slow period" which is April thru to November. Its not easy now when you think of say Pattaya with over 1200 bars and ChiangMai with around 700 plus bars & restaurants all competing for the same baht & the prices for beer, food & services increasing. If you have 500,000 baht then you can run a shoe box in a Bar centre with 50 others blaring out separate music for maybe 1 year before your money runs out or your brain dries up. You need twice this amount or even more just to survive the off season and the girlfriend?? To have a business in Thailand now you need money, real money? not just dreams AS ITS ALL CHANGED NOW AS AT 2009. To survive you also need your own money rolling in from abraod as you will find it hard living in Thailand on a business with work permits etc for a 1m baht investment --just forget it. Those days have since gone in Thailand and its a lot harder now. More rules are enfirced and you cannot work here unless you have a work permit and that mean audited books each year to maintain your work permit. Need help then remember this address: www.thaiexpatlaw.com
MOST IMPORTANT THING BUSINESS ASPECT:
1/. Yes one would say location but no its management. If you are not running your business yourself be prepared to get ripped off. Management is the key to success in Thailand. Only those with charisma & a flare for the business they run, succeed and then thats hard work. If you have a good front person who speaks English, can interact with foreigners and government departments then you are half way home but this is hard to find especially someone whom you have little faith & trust in.
2/. Location is second. Good parking & lots of foot traffic are important and prime but rents can be as high as 50,000 baht a month or more WITH key money added for each year paid in lump sum. This is a rip off as the landlords check to see if your business runs well and if so levy a yearly fee min 100,000 baht for the first year then it goes up each year as they now think they have a prime spot??? when really its your business thats the key. They don't see it that way so don't spend too much money on doing the place up if key money---but this may defeat the purpose as well??. Justify your committment but formulate your biz plan.
3/. Your business: Theme: what do you want to do? will it make money? Decore: have you got the money to make your business comfortable & successful without over expenditure. Will you be able to afford the running costs in the low season and will you have enough money to survive.Double your estimated cots to start as you will be surprised the hidden costs for starting your business.
4/. If you have an attitude problem then don't even start here. You need hospitality skills essential here & theme but watch out if you do good the landlord may increase the rent or even want to be a partner in your business. Even more so to find and buy land and building in the first place as rents increase after every term and you will kick yourself when you should have bought the building in the first place..
5/. Ability to service your never ending bills. Remember having a company you must pay monthly taxes around 7500 baht a month, social welfare tax, withholding tax, accountant fees and other expenses plus but you are far safer than a partnership. Just to keep staff etc 50-70,000 baht per month
6/. Your girlfriend & if you have met in a bar then expect to look after her every day payments and those of her extended family including medical & tea payments. Add 10,000 baht for peace of mind.DO NOT have joint bank account.
7/. Never think for any reason coming to Thailand spending 1m baht on a bar and succeeding. Chances are you will last a year and not have any more customers than the previous owner. So many single guys come here expecting to make a fortune but there are no free rides; no welfare, so when your money runs out its time to go home.
8/. Analyse the business for your competition and check them out and whats happening in town as against 5 years previous. Everyone pads up a sale but its up to you and your skills. Remember we have seen success stories and yours could make the difference but to be a success you need the right thems lots of money and good staff that won't rup you off.Having a good manager that will look after you----well if you can find theyre out there---if not you are already on a decline..
9/. Remember bars, restaurants and guest houses are 7 day events 30 hours a day??. If you want to work 7 days then OK but believe me after a year you will get a clear message in your brain: "why did I buy this"??????????????headache. We new a Kiwi couple who bought a Guesthouse: after one year they realized the rent was too high; all the staff ripped them off and guests stole their towels etc. They thought they could have it easy but ended up costing them and working 18 hours every day. Another UK friend had the same issue & he was glad to sell out as all the staff ripped him off from the takings to the laundry--- you hear sad stpries in Thailand so remember this: " it is easy to give out money hard to get back"? & if " someone tells you an idea to make money but cannot match his money with yours, it just an idea"?? so leave it to him and don't get involved. 2009 there are now many desperate foreigners with no income looking for easy targets---theres even more Thais on the unemployment list also around..
10/. But done well and properly you can win eg Mikes Burgers are a total success in Chiangmai and now theres a few outlets. Money spent well.
2009: Buying into a Business in Thailand: If you want to work in Thailand then you need a work permit, Office & staff. This means you need a Thai company. To set up you need to show 2m baht for share capital and have enough money for your business setup and 4 Thai employees ---- not nominees; wages, tax including VAT, Office, social welfare and withholding tax etc. Be aware this will cost around 1-1..5m baht the first year of business so buying into a new or existent business expecting a work permit take this into consideration on the asking price. Being a partner in a business with a work permit will cost min 3m baht if there is goodwill in the business and the books are sound. This includes 2m baht for the company change and 1m baht goodwill costs. For each work permit you must have 4 Thai employees on your books and they will be interviewed by the labour office so make sure you have proper workers not nominee workers given to you by a friend or the business that forms your company---it is you that will get the blame if you are caught.!
If you have the money and plan worked out then buy the land with a company & build or buy existing property and renovate. This way you eliminate any problems with landlords and you have full control of your business and land via a Thai Company. We will help those with excellent advice on locations to even obtaining the right manager for you if you use our services. Having your own property will also provide you with a better resale value should you decide to sell later or even lease and the fact you will sleep at night. We do assist all buyers of property and we have our own builders, architects and staff on hand to help you. Check out www.thaiexpatlaw.com.
READ MORE PAGES BELOW ON BUSINESS IN THAILAND
email@example.com Copyright © 2001