Thailand Expats

Lukez · #1 23-07-2007, 10:01

Hi,

I am in a process of buying an internet cafe from Phuket.

The cafe is under sole proprietorship at the moment, but would like to change that at the time of changing the ownership to either partnership or Co limited.

I am not planning to work there for the next 2 years but my Gf will handle daily business. I will be the decicion maker meaning that i should have the only right to sign etc. papers.

Does anybody have an idea how can the change be done and what are the benefits of Co limited and Partnership? What kind of costs are involved etc.

I dont need a work permit in the beginning, currently working as an expat in Kuala Lumpur, but after 2 years planning to relocate to Thailand if all goes well...

Thanks in advance

- Lukez

LivinLOS · #2 23-07-2007, 10:22

My buddy has one for sale..

Location Location Location.. Tho IMO they all make beans and shiny beads and are not worth the investment.

1 baht per minute !! think about that for a second !! Minus your equipment costs, minus your upgrade fees (everyones gonna want vista now, it has to be legal software !! want to upgrade 10 machines operating system AND hardware to run it ??), minus your startup, minus your annual company tax and fees, minus your accountant costs, minus your high speed cafe quality internet feed.. Plus now so many bars and hotels are offering free wireless, and many even have a laptop in bar or customers have thier own, your competing with free !!! Its a tough nut to make any money from this biz.

I could see a cafe / bar done out a bit high tech, multiple computers, comfy chairs maybe even a hidef LCD screen and some next gen gaming.. Chilled music.. No ones doing that style of cafe / net cafe hangout spot and then you have the additional income streams of bar and cafe drinks, you have the longer staying hangout potential. Beach house bar on Nanai has made a bar with this relaxed type vibe and it does well, I could see a combo lounge bar with these perks appealing to the gen X and Y set.

Lukez · #3 23-07-2007, 10:41

Quote:

Originally Posted by LivinLOS

My buddy has one for sale..

Location Location Location.. Tho IMO they all make beans and shiny beads and are not worth the investment.

1 baht per minute !! think about that for a second !! Minus your equipment costs, minus your upgrade fees (everyones gonna want vista now, it has to be legal software !! want to upgrade 10 machines operating system AND hardware to run it ??), minus your startup, minus your annual company tax and fees, minus your accountant costs, minus your high speed cafe quality internet feed.. Plus now so many bars and hotels are offering free wireless, and many even have a laptop in bar or customers have thier own, your competing with free !!! Its a tough nut to make any money from this biz.

I could see a cafe / bar done out a bit high tech, multiple computers, comfy chairs maybe even a hidef LCD screen and some next gen gaming.. Chilled music.. No ones doing that style of cafe / net cafe hangout spot and then you have the additional income streams of bar and cafe drinks, you have the longer staying hangout potential. Beach house bar on Nanai has made a bar with this relaxed type vibe and it does well, I could see a combo lounge bar with these perks appealing to the gen X and Y set.

"My buddy has one for sale.. "

- Really? Which one?

Anyway i know that the Inet cafe business is not the most profitable business there is so naturally it needs some sidebusiness to be well profitable. I will include Food, Drinks and possibly motorbike rentals to this business so it will bring some more money in.

I basically know all the expenses that the cafe i am looking at has and it will end up profitable no doubt about that, thus not keeping me alive if only doing that. Anyway it is not my expectation in the beginning....

The investment i will have to do is not high, in fact we are talking ard 9keur for the whole business, so at least i dont have "all egs in this basket" ;-)

- Lukez

LivinLOS · #4 23-07-2007, 10:54

My buddies name is Paul.. I saw he was advertising lately so its even possible you are speaking with him.

As I say the market has changed from a few years ago.. So many people are giving away what your selling that competing against free isnt a market I would touch.. Also consider we now have already have wireless broadband (CDMA 3G) for longer staying visitors and may have WiMAX for the same soon. I sort of feel very often this kind of business is done 'to give the GF a job' when in fact all it does is lose the startup costs and pay some lawyers filing fees.

Anyway good luck with it..

Lukez · #5 23-07-2007, 11:00

Quote:

Originally Posted by LivinLOS

My buddies name is Paul.. I saw he was advertising lately so its even possible you are speaking with him.

As I say the market has changed from a few years ago.. So many people are giving away what your selling that competing against free isnt a market I would touch.. Also consider we now have already have wireless broadband (CDMA 3G) for longer staying visitors and may have WiMAX for the same soon. I sort of feel very often this kind of business is done 'to give the GF a job' when in fact all it does is lose the startup costs and pay some lawyers filing fees.

Anyway good luck with it..

Agree, things are changing, it means that the business gotta change at the same time to survive. Wireless is a must for sure, Internet is used mostly local chicks sending emails to boyfriends and 1-2 week tourists + backpackers. So it is very imortant to knw what they actually need.

LivinLOS · #6 23-07-2007, 11:25

I mean wireless broadband in the extent that you no longer need go anywhere, open laptop and island wide have a broadband connection..

If your after the Thai bar girl market they go to the 20 - 30 baht / hour places.. Hardly covers your net and electic bill.. As to the 2 weekers, here I agree there are people who dont want to carry a laptop, and do need occasional connections. But they have no repeat custom and no shop loyalty. Then its all down to location location location to pick up random trade. Theres an empty net cafe every 50m along Nanai rd.

Anyway you seem keen to proceed, so I will stop, but theres plenty of other markets I would try first.

Lukez · #7 23-07-2007, 12:38

Quote:

Originally Posted by LivinLOS

I mean wireless broadband in the extent that you no longer need go anywhere, open laptop and island wide have a broadband connection..

If your after the Thai bar girl market they go to the 20 - 30 baht / hour places.. Hardly covers your net and electic bill.. As to the 2 weekers, here I agree there are people who dont want to carry a laptop, and do need occasional connections. But they have no repeat custom and no shop loyalty. Then its all down to location location location to pick up random trade. Theres an empty net cafe every 50m along Nanai rd.

Anyway you seem keen to proceed, so I will stop, but theres plenty of other markets I would try first.

Thanks for the comments, you seem to know a lot of stuff...

The Thaibargal market can be attracted with a "under the table pricelist" for thais, i think a lots of cafes do such things to give a different rates for locals.

Yea i am gonna try this out, unsure if it is a success, but still looking for advices ;-)

- Lukez

Sir Burr · #8 30-07-2007, 08:55

Hmmm....I get the idea that you are buying this business to keep the girl-friend busy and to give her face.
I think after the novelty has worn off, she will get bored sitting in a mostly empty shop all day. I agree with LivinLOS that you won't make any great amount of money and will probably lose money.

Why don't you start a "girly" business for your girlfriend. Something she would enjoy?
How about renting a stall, maybe in the market in front of Paradise and have her sell clothes or costume jewellery. She'll get a kick going up to Bangkok to buy the stuff during the week and she can hang-out at the stall where her mates can visit. Very low start up costs and no expensive premises to worry about.

LivinLOS · #9 30-07-2007, 09:12

My mates missus started doing that.. And also silver stuff.. Turned out surprisingly good for her and she ended up having 3 stalls / shops in a year.. In the end tho she sold off a couple (keeping the suppliers so staying the middleman) as she couldnt run them all and finding reliable staff and mooching family hangers on made it a problem.

I would never have guessed it but i think what was helpful was some type of backpacking farangs try to buy silver stuff and resell in Europe.. But they are not informed or too lazy to hunt for proper sources, so she would be selling large amounts of silver to people attempting to subsidize holidays.

You can also point out its totally cash based, no company accounts, no VAT, no accountants, no corp taxes.. Thai style.

Lukez · #10 30-07-2007, 09:27

Quote:

Originally Posted by Sir Burr

Hmmm....I get the idea that you are buying this business to keep the girl-friend busy and to give her face.
I think after the novelty has worn off, she will get bored sitting in a mostly empty shop all day. I agree with LivinLOS that you won't make any great amount of money and will probably lose money.

Why don't you start a "girly" business for your girlfriend. Something she would enjoy?
How about renting a stall, maybe in the market in front of Paradise and have her sell clothes or costume jewellery. She'll get a kick going up to Bangkok to buy the stuff during the week and she can hang-out at the stall where her mates can visit. Very low start up costs and no expensive premises to worry about.

This is simply because i am buying the cafe for myself not for her ;-) If she dont want to work there or gets bored, it is fine, then she can jz chill out heh. Anyway my plans are not really to do only Cybercafe stuff, as it is not that profitable, but willl keep somekind of cashflow coming in regardless of the season... This is the way to open a low cost business in thailand and then start working on the "perfect business idea"

- Lukez

LivinLOS · #11 30-07-2007, 09:32

It would be interesting if you post the ups and downs..

Lots of this forum is nightlife based but theres longer stay people and guys looking to make the jump.. Perhaps you can start to list out what works, what doesnt, who you use for the company, what pitfalls come up..

Happens to everyone but usually your blindsided by them.. Just have to overcome (and pay). Also dont underestimate the power of good promotion. This board provides a good customer base and guys tend to 'go with what they know'.. Doesnt hurt Nickes biz model and hes tolerant of BM's that interact but DONT SPAM or oversell yourself.

Again, good luck.

Lukez · #12 30-07-2007, 09:40

Quote:

Originally Posted by LivinLOS

It would be interesting if you post the ups and downs..

Lots of this forum is nightlife based but theres longer stay people and guys looking to make the jump.. Perhaps you can start to list out what works, what doesnt, who you use for the company, what pitfalls come up..

Happens to everyone but usually your blindsided by them.. Just have to overcome (and pay). Also dont underestimate the power of good promotion. This board provides a good customer base and guys tend to 'go with what they know'.. Doesnt hurt Nickes biz model and hes tolerant of BM's that interact but DONT SPAM or oversell yourself.

Again, good luck.

Thanks, good idea :-) I'll start a thread after all is set up n ready to "rock"

Good day!

- Lukez