Own boss in Thailand
Well, the holiday in Thailand it's over, you go back home to work again for a few months or maybe even a year. You daydream at the desk in the office or you talk to friends and colleagues at work about that beautiful time in Thailand, the beautiful country, the beaches, the exuberant nightlife and of course about your great love, whom you met there.
Slowly but surely and sometimes it suddenly happens in a brain flash: Gosh, how nice it would be if I could live in Thailand to be constantly with that oh so sweet Thai woman and lead an easy life in a nice climate. Money? Well, what if I take over a business, a beer bar or something, your partner at the cash register, some pretty girls at the bar and the money pours in. Behold the birth of a disastrous plan.
Grand plans
So it was with Mark, an Englishman in his mid-30s, a construction worker by trade. A craftsman, you might say, who had worked his way up to foreman in the new building without any qualifications. Married, good salary, own house and car, now and then (no, often) in the pub with his friends and also the occasional gamble on the horse races. However, his wife falls ill (multiple sclerosis) and Mark cannot – or rather does not want to – deal with it mentally. They get divorced, the house and car are sold and so Mark comes to Thailand with a nice capital with grand plans. That little capital is not only the proceeds from the sale of properties. Mark was also not averse to a little crack here and there with his mates, just like his father and brothers used to do.
Mark is going to start a beer bar. No, not an ordinary beer bar like there are hundreds in Pattaya, but different, better, nicer, the customers will come and come back, they all become regulars. It also starts well, he rents a space in a bar complex and builds the bar himself and furnishes it further with mirrors on the wall, a large screen television and a pool table. Now a few more beautiful girls at the bar and the party can begin. In the meantime, he and his Thai love have taken care of all the necessary papers and police protection is also well arranged.
The opening party is a great success, Mark is an excellent host and has already made many friends in Pattaya, all of whom attend. Things also go well in the weeks that follow, he organizes a weekly pool tournament, which is well attended, in short, the money does indeed flow in.
Succes
Overconfident with his success, Mark buys a house, buys a big truck, buys a new pool table and buys more things to make the bar even more attractive. Over time, the atmosphere in the bar changes a bit, when Mark is there, it goes well, a party can be built spontaneously, but when he is not there, the guests stay away. That's where the problem starts for Mark, because a big deal for him is that he can't keep his fly closed. A few days a week you can (not) find him in one of the countless beer bars or A Go Go's. He happily butterflys, which always costs him handfuls of money, because he is certainly not stingy.
Mark realizes that the income in the bar is decreasing, but the costs are not. The staff and especially the landlord must be paid monthly and other costs also continue. He makes a decision, he sells the bar for a reasonable price, sells his house and truck and a new plan can take shape. He has found a partner who is willing to put money into his plan to start an A Go Go bar. With some borrowed money, a nice amount is available to transform an empty space into one of the most beautiful A Go Go's in Pattaya. A beautiful bar, a great dance floor with chrome poles, two pool tables and a can of beautiful girls is opened.
Large debts
Unfortunately, the location is completely wrong and you have to climb an outside staircase to enter. Despite an advertising campaign, customers come in dribs and drabs, so that the reserves to pay the considerable rent, the salaries of more than 20 employees and other fixed costs are quickly dwindling. Of course disagreements arise with his partner, because with two captains on a ship you can see the quarrel coming from afar. Mark borrows money left and right to survive, but after about three quarters of a year the curtain falls. Long enough, by the way, for Mark to be pampered by practically all the dancers on an upper floor.
Mark had to give up, left behind with huge debts, “fleeed” to England, penniless and without a job. A beautiful dream has completely shattered.
Unique story? Well, over the years I've seen dozens of adventurers come and go. Come up with the plan to make it in Thailand with some saved or borrowed money, but without business experience and without knowledge of Thai (catering) life, have no chance of succeeding. Sooner or later they will return to their homeland with their tails between their legs, one experience richer and one illusion poorer.
I can name quite a few examples of beer bars that (regularly) change hands, A Go Go bars in the wrong locations, as well as a French, an Italian and an English restaurant. A miniature golf course, a darts center, a stainless steel processing plant, a fitness equipment store, all started by Farangs with great enthusiasm and great expectations for the future. All gone now!
Become rich?
Is it impossible to become your own boss in Thailand? No, not that either, because there are many foreign entrepreneurs in Thailand, not all of which fail. I know entrepreneurs in Pattaya who, for example, can make ends meet with a restaurant and guest house and there is also quite a bit of money to be made in other areas. You will certainly not get rich in Thailand, because that is reserved for Thais.
Finally: I make a rough estimate based on my own observations: only 5% of all foreign small entrepreneurs make a profit, 40-45% can manage reasonably well on the earnings of their business and the rest must sooner or later give up their vain hopes .
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About this blogger
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Bert Gringhuis (1945), born and raised in Almelo in the beautiful Twente. Later lived for many years in Amsterdam and Alkmaar, working in export for various companies. I first came to Thailand in 1980 and immediately fell in love with the country. Been back many times since then and moved to Thailand after my (early) retirement as a widower. I have been living there for 22 years now with my somewhat younger Thai lady Poopae.
My first experiences in Thailand as a kind of newsletter sent to family, friends and acquaintances, which later appeared under the name Gringo on Thailandblog. Many, many articles followed those first stories and that has grown into an almost daily hobby.
In the Netherlands still an avid footballer and football referee, but the years are starting to tell and in Thailand still avid, but the pool billiards is really of inferior quality, ha ha!
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Most people who start their own business in a country like Thailand are not entrepreneurs to begin with, which is where the first problem is born. Secondly, people here in the hospitality industry often start a business as an extension of their genitals. One of these two things is enough to have a high probability of failure, both almost a guarantee. Something that also happens in NL, by the way. The existence of these kinds of people is a bizz for other kinds of people (foreigners incl.)
And you can get rich here as a foreigner, but the Thai way. Despite this, Thailand remains a country better suited for R&R than making money (at least as a foreigner or as an unconnected Thai)
Beats. I know many farangs who do have business success in Thailand (not one of them has a beer bar by the way) and they are often people who focus on business first, and not just on booze and sex. Many also have extensive international experience. The main problem with people who want to 'work' here is that they often want to come to Thailand for the wrong reasons. Work is then at the bottom of the list. And so that doesn't work. And even if you do have good intentions… you also have to realize that if you work here you will encounter a lot of obstacles in your way. In addition, you can arrange all matters such as pension and (health) insurance yourself (not always easy, see other blogs) and you really do not have to count on your 5 weeks or more holiday as employees in the Netherlands are used to.
Going to Thailand with the intention of getting "rich" is probably the 1st mistake that starts the misery.
If it is not possible to get rich in the home country, then why in Thailand, if it were that easy then "everyone" was in Thailand with a big fat bank account.
Who doesn't want that, an easy life of booze, sex, warm climate, favorable tax climate and then get rich too. For those who daydream about that I would say dream on but leave it at that.
It is probably more sensible when you have worked out and have a reasonably good pension or other benefit to live in Thailand, rent a house or apartment (not buy it) and live a "normal" life there and enjoy what Thailand has to offer and I certainly don't mean Thai women in the first place, Thailand has so much more to offer.
When you have obligations in the Netherlands (work, etc.) and you have the financial possibilities, go to Thailand 1 or 2 times or for some more often a year, then it will always be an outing and something to look forward to again and again.
I myself still have to work for another 4 years (obligations) and now I go to Thailand at least 2x a year, so it is a real holiday for me in the meantime, I think very carefully about what I will do in 4 years, or stay in the Netherlands living and staying in Thailand for a longer period of time per year or going to live there permanently, but in the latter case I will certainly not start a business in Thailand with all the associated risks, after all, I will have worked in the Netherlands long enough to be able to (in Thailand) enjoy without risk.
Agree in part, but keep in mind that deregistering from the Netherlands gives the major tax benefit. You can only stay in the Netherlands for 120 days (2 x 60 per half year) without having to register. If you do that, you will have to deal with the tax authorities again. And be honest twice 2 months in the Netherlands, who wants more? For most, it is still the case that your disposable income will increase by 100% and you live in a country where the price level is 50% lower than in the Netherlands. 1 liter of petrol, just to name something, 60 euro cents, a villa for 200k Euro, maid for 200 euro/month, so God in France 🙂
Never understand why people always talk about renting a house or apartment and then set (not buy) renting means paying the rent every month or year,while a house bought or built no longer requires any costs,even if my wife remains alone she has a roof over her head, now married to a Thai woman for 19 years so thought this was the solution.
Jacob.
You reason very easily. There are just as many reasons not to buy as there are to buy. You talk about buying a house without a mortgage because you state that you no longer have any costs. Many cannot.
Indeed, like so many others, I also came to Pattaya for the first time in 1990.
Of course after being single for 12 years, also the first day in love, and after a month of vacation busy writing and faxing. After a few months, my love came to the Netherlands (it was a bit easier then than now) but was immediately a lot less more willingly than at the time when I was with her in Pattaya. We still managed to make it through the 3 months. But that Thailand of course continued to attract and then I went to Thailand twice a year to party and play with the girls. In 2 I met a woman who had the same ideas as me, so hoppakee to the Netherlands as soon as possible, this was a completely different kind of woman and it hurt me that she had to go back after 1998 months.
But after just under 2 months she was happily back on the doorstep. She lived in the Netherlands for almost 10 years and at the beginning of 2008, after selling everything, we left together for Thailand. Her idea was never to start a bar or something like that. in Pattaya. We had a house built in Chonburi, directly on the highway7, with 24 Thai apartments. We have a good life together and a super fun activity. We also have 4 gazebos here where the Thais celebrate something almost every day. I also have to come and drink a beer or a laaw kaaw, which is consistent. I do drink 2 bottles of Leo when it is quiet outside and I behind the computer to call my Dutch kids or friends.
This is just my own story with which I want to say that there is indeed a good life here if you act normal and don't spend the whole day chasing girls or alcohol. We've been running for almost 2 years now and still have 90% occupancy \
So highly recommended if you are looking for work here in Thailand.
I have been on leave in Thailand twice, and I recently met a German in Isaan.
he had a simple pension, and told me that the business was entirely in his wife's name, for the simple reason that he had to pay much less taxes and taxes.
in thailand as a foreigner you are milked empty.
the road to success
1 Put the business fully in your partner's name
2 only start a business in Thailand if you have been together for a number of years and you have already shared joys and sorrows together in your home country, by which I mean that you have a harmonious marriage
3 Make sure you are not financially dependent on your company
4 make sure you have an income through your home country, pension capital, etc..
5 try to limit your investment, and try to live off the business, this is quite doable.
6 invest a maximum of 10 percent of your assets
7 Don't see it too big in the beginning and try to grow slowly, and see your business as a way to live in Thailand for free and possibly pay for your flight tickets
Yes that's good! All risks are covered, yes, apart from the first curious recommendation…but even if your Thai partner throws you out (you won't be the first one to do it) it will only cost you 10% of your wealth.
Investing only 10% of your wealth in a Thai business, ensuring that you have another income, making sure that you are not dependent on your business… people who can meet all these conditions do not need a business in Thailand at all! In that case, they are better off investing 70-80% of their assets in much less risky ways and then get a lot more return!
@jansen Ludo ::
1 ::be careful if you only put everything on your partner's name that you will also lose that if there is a hitch,
if you invest a maximum of 10% of your assets in a company, I wonder how many millions of euros you must have to make the switch.
Of course I am not aware of the taxes in Pattaya, but here in Chonburi I go to the town hall with my wife for the tax return.
For the entire complex, including the turnover of 24 apartments, we pay 15000 Thai Baths, so I don't think that's too much of a deal.
Wonderful all those stories of failure or success! I think failure is mostly due to ignorance!
First make sure you have a “degree” in economics or something! How can a construction worker with a little money but no brains make a business successful? If you are also going to finance the bars, this shows your mental way of life!
I myself am not a holy saint, but I know well that every success brings a tidal wave of jealousy, which all kinds of bloodsuckers use!
People, without any economic knowledge and common sense you are lost in advance!
I don't have a business in THAILAND yet, but I've been working on it for two years! Do you really think that a business is already profitable after one week? Yes money is coming in but this is not yet a profit!
A thorough knowledge of taxation is certainly necessary. You can hire a good accountant, but you have to understand it yourself!
Both feet on the ground!! If everyone in Thailand starts a business immediately successful then why not with us in EUROPE??
Good luck and greetings to future self-employed candidates!
Business is business, all over the world. If you have not eaten any "Dutch" cheese from it, the chance of failure is very high. I see a lot of possibilities here, more than in the Netherlands at the moment. Thailand is a country that is developing economically with all the opportunities that entails. We ourselves have 2 bars in Chiangmai and that is just going well. I have also started an export company that is slowly taking shape and body.
A bar means hard work, but with a little ingenuity it is quite possible to distinguish yourself and collect a nice group of regular clientele. If you arrange things normally, try to live as healthy as possible, it is very possible to have a very nice life here. I myself am one with a straight back as they say here, run regularly, make my hours in the muay thai gym. But also drink a beer regularly in the evening. Eat tasty and healthy and enjoy the beautiful life, the Thai people, culture, etc. We now intend to sell 1 of the bars and buy a house for ourselves. Step by step and with common sense everything is possible. But to be fair, I have to say that without a Thai partner it will be a difficult story. They know the way, know the local "customs" from police protection to the good drink suppliers etc.
Very interesting article. I have been living in Spain for 30 years and yes, I have seen many come and go. I also went bankrupt in Spain, 2 x even but I stayed and won and have been earning good money for the last 10 years without being rich and I am now 63 years old. I still had to survive about 10 years on courage , willpower, persevere, get back up. Today I leave for the first time to Thailand, Pattaya and am very curious to meet paradise. I have 2 friends who live there who speak in superlatives about Thailand. Will I start a business there… gee, no, but yes, you never know with me. . . and if it must be so, I do so with a limited capital.
If I may give some advice to people who want to start a business 'on the outside'.
1. Don't go all out. Keep a spare.
2. Make a real effort to speak the language. Really really necessary. I regularly meet foreigners in Spain who don't speak a word of Spanish. . . .this is retarded.
3. Stay off the booze. . . . this was kind of my fault but not THE fault,
4. Stay off the women. . . .ttz. a friend of mine who is now in Thaliand is crazy about women. This is his bankruptcy because three quarters of his energy goes to women and if you look at his like that. . . . his whole life has been devoted to women.
5. Surround yourself with good people and not wakos, dreamers.
6. Respect the population and their mentality and adapt.
7. Work and work and work until you have some success and can slow down a bit.
8. If you have local staff, respect them. Be kind and above all correct.
Greetings,
Norbert
Alias Mister MAGic
Well written and certainly no moral talk, just think of the story of the three friends that was published here a few months ago.
But Gringo, there are also success stories. What to say about that pool bar in soi Diana. Or am I seeing that wrong?
I will soon make a separate article about the success of Megabreak pool hall in Soi Diana.
Hope to be able to tell my story in about 10 years when I'm 50. I am an entrepreneur in the Netherlands and I know how to handle money very well. For the money, catering might be nice as an extra in Thailand on top of your other income. But I know people who have stepped into it as an extra in addition to their normal income (renting real estate) and are now very successful with a bistro. In my opinion hard work can be well rewarded everywhere. I will never do anything in the hospitality industry myself. But plenty of opportunities.
How strange that a criminal who can't keep his fly closed doesn't make it.
Not really representative, such guys don't make it anywhere or they are poured into the concrete if they go crazy.
I do not mean to say that it is not easy to get something off the ground in Thailand.
Old story, but still current and it remains true; the bar is "easy" to open just like a restaurant, but unfortunately the construction worker, bookkeeper...etc. think to host here
Shoemaker stick to your reading especially in Thailand.
Strangely enough, many old catering establishments here, no bar or anything. but in other matters
People misjudge the season. In December a madhouse but all summer (April to October) no customer in sight. Buy your og and make sure that the company is well crafted and actually yours, Yes, really, you can !! The business whatever you start is on your Thai partner. Does she want to get angry? then she goes out. If she wants to pay well, you pay a very small amount of tax, so do not show yourself at the tax office and with a few thousand per year this is paid. Do you have a crazy money wolf? Take a fresh one. There are 30.000.000 in Thailand alone. women who still feel like it so don't grieve too long. Don't get married so never debts by the family on your sandwich. So just all the og and your savings. Don't tell anyone what you own and keep a low profile. I've been here for 15 years and despite the recession my capital is still growing. Even when there's not a customer in sight I'm still laughing because super low costs due to no staff and everything has been paid for a long time. Stay insured in NL for medical expenses or take out good insurance in Thailand. People who have never been sick for 1 day can also get their turn. I got cancer and sugar and dengue fever and after losing 1 kidney the momentum was over. 40 kg. arrived but don't panic because everything has been paid SUCCESS !!
There are also those who are successful and not so much.
What about a former employee of tires and exhausts and battery service branches Quick Fit in the Netherlands, who brought the formula to Thailand.
And now have many branches all over Thailand under the name BeQuick.
But yes, not in the Thai catering industry.
You can only make something here with a new idea.
Jan Beute.