Business Startup?

[Stevieboy]

This, I'm sure, has been played many times:
 It looks like most people here are in management or business ownership positions. It also appears several of you caught the bug and decided to stay. Others keep rent there and go back and forth. Since nothing happens without money; putting inheritance, accumulated wealth, or living off investments. Have you opened up shop there? I'm not asking what your secrets are, nor want to steal your ideas. Just wondering if there's red tape and large cash investment to do it. Do it small. I mean something like a taco stand or cell phone kiosk.   
 

[justmike]

Gotta admit been thinkin along those lines myself. Lookin forward to see what kinda answers you get.

[benjio]

Are you speaking of starting a business in Colombia or Latin America in general?
 
I guess generally speaking they are all equal. I do business here quite often...for myself and for my company. In Colombia and Brazil mostly. You need 5 things.
 
1. A boat load of capital (even if you are considering something small to start off)
 
2. A local you can trust implicitly (the hardest thing to find)
 
3. Patience
 
4. Patience
 
5. More Patience
 
If this is something you are seriously considering I would do as much research as possible on the market you're thinking of breaking into. Unions can be very intimidating depending on the country. There's a union for absolutely everything in Brazil. Even personal maids. I'm all for worker's rights but they have taken it to an entirely different level. I'm not one to discourage but I think you should concentrate on the dating thing first. Don't even think about business until you know the right people in the country you'd like start up in. When it comes down to it in Latin America it's usually a question of how much money you're willing to slide under the table to get things done.
 
Just my opinion. Others may disagree.

[Stevieboy]

Are you speaking of starting a business in Colombia or Latin America in general?
 
I guess generally speaking they are all equal. I do business here quite often...for myself and for my company. In Colombia and Brazil mostly. You need 5 things.
 
1. A boat load of capital (even if you are considering something small to start off)
 
2. A local you can trust implicitly (the hardest thing to find)
 
3. Patience
 
4. Patience
 
5. More Patience
 
If this is something you are seriously considering I would do as much research as possible on the market you're thinking of breaking into. Unions can be very intimidating depending on the country. There's a union for absolutely everything in Brazil. Even personal maids. I'm all for worker's rights but they have taken it to an entirely different level. I'm not one to discourage but I think you should concentrate on the dating thing first. Don't even think about business until you know the right people in the country you'd like start up in. When it comes down to it in Latin America it's usually a question of how much money you're willing to slide under the table to get things done.
 
Just my opinion. Others may disagree.

   
A boat load of capital for a kiosk at a mall? Unions? I'm talking about Colombia. Not looking to open up a 7-11. 

[benjio]

   
A boat load of capital for a kiosk at a mall? Unions? I'm talking about Colombia. Not looking to open up a 7-11.

I would fill up three pages of thread trying to explain all this to you. I'll PM you my number. I'll be back in the states mid-July. Give me a call then.

[Stevieboy]

Cool

[Jeff S]

Yes. The concept of opening a brick and mortar business in Colombia has been discussed many times here. Do a search and you'll find tons. Everyone agrees if you can work up an online based business of some sort, you're miles ahead.

[Stevieboy]

Yes. The concept of opening a brick and mortar business in Colombia has been discussed many times here. Do a search and you'll find tons. Everyone agrees if you can work up an online based business of some sort, you're miles ahead.

Reading that, it just occured to me; I occassionaly sell firearms and ship here online. I get this weird idea that there might be vintage firearms floating around there the natives might give up for cheap. Knowing the laws there are strict on firearms, would selling person to person, be illegal? 

[Fuzzyone]

Reading that, it just occured to me; I occassionaly sell firearms and ship here online. I get this weird idea that there might be vintage firearms floating around there the natives might give up for cheap. Knowing the laws there are strict on firearms, would selling person to person, be illegal?

  I would forget that idea big time, vintage weapons? by the time you get done with all the paper work to get it here you would die from old age!


    A idea I had was to bring several different high end leather bags down there and get them copied. You wold not be able to put the brand name on them but if you could produce them for cheap you might be able to sell them on line.

[Stevieboy]

The reason I ask is because of the posts I read from the veterans here on PL. It appears the lifestyle can be addicting which leads to frequent visits or even expatriotism. People fall in love with the women and country and want to keep feeding their addiction. So, if it happens to me, I want to create a cashflow to feed it. What I say, I'm sure is not unique, like the phase I'm going thru now, whereas I daydream about it constantly and even look at women at bars or clubs and don't even find them attractive anymore. It's like I'm not even here anymore. If it wasn't for my daughter I probably would have been gone a long time ago. My dream place was Costa Rica, up until a colleague showed me a latin marriage magazine about Colombian girls. Then I also stumbled across this site few years back, and it was downhill from there.     

[Jeff S]

Since the US and Colombia signed a free trade agreement recently, if I were interested in setting up a business where I'd want to be in Colombia on a regular basis, I'd consider importing various Colombian products to the US and selling them in the US - something like ColombiaDirect.com. Not sure what products, but they should be niche consumer products where it should be easy to score high on the search engines with, and that's why you'd need to be there regularly. Internet marketing is where it's at. You can't be robbed, your storefronts are virtual, near zero employees, near insignificant advertising costs (Ebay, craigslist and Amazon.)

[benjio]

Since the US and Colombia signed a free trade agreement recently, if I were interested in setting up a business where I'd want to be in Colombia on a regular basis, I'd consider importing various Colombian products to the US and selling them in the US - something like ColombiaDirect.com. Not sure what products, but they should be niche consumer products where it should be easy to score high on the search engines with, and that's why you'd need to be there regularly. Internet marketing is where it's at. You can't be robbed, your storefronts are virtual, near zero employees, near insignificant advertising costs (Ebay, craigslist and Amazon.)

Jeff,
 
It's crazy that I sent Stevie a PM telling him exactly the same thing a couple of days ago. One of my really good hustles is selling Mochila Bags. I've talked about this on other forums. American Women absolutely love them. They sell for about $15,000 - $45,000 COP (depending on how many you buy at once) in La Guajira but here in the states you can very easily sell them for $100 a piece. I actually spent two entire days during my most recent stint in Barranquilla searching for more bags because I will have a vendor stand at the Colombia and Venezuela Festival in Houston on July 22nd. I've gone the last two years and amazingly no one there sells these bags. I doubt it will take me more than 4 - 6 hours to get rid of them all. Come by and see me if you're in Houston during that weekend!
 
http://www.colombianfest.com/
 
I've gathered around 100 bags from different cities along the coast (these bags are sold all over Colombia but the further you get from La Guajira the more expensive they are) that I spent exactly $3,525,000 COP on. I don't plan on selling any single bag at the festival for less than $80 USD. I usually sell them on eBay for more than that but auction competition has gotten substantial there. I don't mind sharing this information because it is one of many little business ventures I have taken advantage of by traveling back and fourth to Colombia so often. Brazil has also given me a few ideas but I have yet to confirm if there's a market for the things I want to sell in the states. It's actually much more profitable to buy things like high end watches and sunglasses in the states and sell them in Brazil. A Guess Watch that cost $115 USD in a Macy's here sells for $525 Reais in a Rio De Janeiro Mall. A $100 pair of Rayban Sunglasses sell for $300 Reais in Sao Paulo. Do the math.

[Jeff S]

I'd think there are dozens and dozens of potential products depending on your interests. I know a guy who imports beautiful teak entry doors from Malaysia. In Asia, entry - ways are very important from a feng shui viewpoint and $80 there can easily sell for $1000 here. A container load turns $1600 into two hundred grand! It doesn't need to be anything earth shattering or mainstream. The nice thing is that with things like ebay, you can test market things easily and almost free before investing heavily. 

[benjio]

I'd think there are dozens and dozens of potential products depending on your interests. I know a guy who imports beautiful teak entry doors from Malaysia. In Asia, entry - ways are very important from a feng shui viewpoint and $80 there can easily sell for $1000 here. A container load turns $1600 into two hundred grand! It doesn't need to be anything earth shattering or mainstream. The nice thing is that with things like ebay, you can test market things easily and almost free before investing heavily.

I've been doing research on importing coffee from micro-plantations in the Coffee Triangle of Colombia. I've tried a lot of local brands from small farms around Pereira that have very unique flavors. I definitley think the market is there, but building up inventory, warehousing the product and Marketing it would involve substantial capital investments and that's not a risk I'm willing to take now. Perhaps when I retire there if someone is not already doing it.

[Kiltboy1]

Most of the guys living in Colombia or other LA countries are Pensionarios. They are ex Military, Postal Workers, Police  or Government in general. Not too many have a business. I know a guy who does not post here that has like 15 rental homes in my state and lives off the rental money in Ecuador. I am a great chef and might indeed start a BBQ shack/bar some day in Ecuador, but I will live in my /wife's home that is already paid for or build on our beachfront land  on the coast of Ecuador and have it paid for. Trying to make a living  that will make enough to pay rent/mortgage, car, insurance, food, ect would be tough .

[whitey]

Jeff,
 
It's crazy that I sent Stevie a PM telling him exactly the same thing a couple of days ago. One of my really good hustles is selling Mochila Bags. I've talked about this on other forums. American Women absolutely love them. They sell for about $15,000 - $45,000 COP (depending on how many you buy at once) in La Guajira but here in the states you can very easily sell them for $100 a piece. I actually spent two entire days during my most recent stint in Barranquilla searching for more bags because I will have a vendor stand at the Colombia and Venezuela Festival in Houston on July 22nd. I've gone the last two years and amazingly no one there sells these bags. I doubt it will take me more than 4 - 6 hours to get rid of them all. Come by and see me if you're in Houston during that weekend!
 
http://www.colombianfest.com/
 
I've gathered around 100 bags from different cities along the coast (these bags are sold all over Colombia but the further you get from La Guajira the more expensive they are) that I spent exactly $3,525,000 COP on. I don't plan on selling any single bag at the festival for less than $80 USD. I usually sell them on eBay for more than that but auction competition has gotten substantial there. I don't mind sharing this information because it is one of many little business ventures I have taken advantage of by traveling back and fourth to Colombia so often. Brazil has also given me a few ideas but I have yet to confirm if there's a market for the things I want to sell in the states. It's actually much more profitable to buy things like high end watches and sunglasses in the states and sell them in Brazil. A Guess Watch that cost $115 USD in a Macy's here sells for $525 Reais in a Rio De Janeiro Mall. A $100 pair of Rayban Sunglasses sell for $300 Reais in Sao Paulo. Do the math.

Excellent and generous tip Benjio ... don't know why I didn't think of that before.  I think we'll gauge the market here over the summer, then bring some mochilas back from our next trip.  Should be easy to unload a few, and could turn into a little side business for Nazly.


They also make really beautiful scarves in and around Bogota - a buddy brought back a couple for me.  I always thought they would sell well here.  They are also much lighter and smaller to carry in suitcases.


Good luck at the festival - wish I could see you there!

[utopiacowboy]

Jeff,
 
It's crazy that I sent Stevie a PM telling him exactly the same thing a couple of days ago. One of my really good hustles is selling Mochila Bags. I've talked about this on other forums. American Women absolutely love them. They sell for about $15,000 - $45,000 COP (depending on how many you buy at once) in La Guajira but here in the states you can very easily sell them for $100 a piece. I actually spent two entire days during my most recent stint in Barranquilla searching for more bags because I will have a vendor stand at the Colombia and Venezuela Festival in Houston on July 22nd. I've gone the last two years and amazingly no one there sells these bags. I doubt it will take me more than 4 - 6 hours to get rid of them all. Come by and see me if you're in Houston during that weekend!

My wife has one of these bags that she uses. It's amazing how many women comment on that bag. I have no doubt at all that you can sell as many as you can handle.

[htown]

This a good discussion going on in this thread.


One business Colombians I've met here in the states mention frequently is importing american name-brand clothing to Colombia.


I know a guy who works in the granite business, selling slabs of granite to homebuilders and remodelers.  He said he knows a guy who brings the granite directly from Brazil and makes a killing.  Of course the guy bringing it in is from Brazil, but I figure if he can do it why can't I?


A language school is something that if done right could do well.  I figure as the world becomes more globalized that the demand for second language instruction  will only increase.


I know there's alot of red tape that comes with going into business in Colombia as a foreigner, but once you're married to a Colombiana wouldn't that wipe out most of that red tape, since you'd basically then be doing business as a Colombian?

[Gato4Astrid]

Some of the 5 reasons why businesses fail



1. Focusing on short term profit
It is important to be profitable, but focusing on short term gain rather than long term growth will hinder your ability to grow. Businesses that focus on gaining profit over delivering good quality products and services will fail to get return business and as a result struggle to grow.
2. Ego Vs Business Reality
Entrepreneurs often create a business through an interest of theirs but this may not really fill a need in the market. Failure to research exactly where the gap is in the market and going full pelt into something blindly will usually end in a big bump on the head.
3. Distractions
Business owners often lose focus and get distracted by family, illness, children or death. The people around you need to know what you are doing and exactly why it is important. Everyone gets distracted sometime but keep your eyes on the prize.
4. Friends and Family
There are many family run businesses which do not work because honest and objective advice is not given. Many people find it difficult to give out constructive advice and avoid feelings being hurt. If you are going to work with friends or family make sure they are honest.
5. Safety Net
Most entrepreneurs starting on do so by starting the business on a side line to their current full time work. They often do not give up the day job in case the business fails. By thinking like this, it is possible the business will fail. Secondly if there is a safety net in place paying the bills then not as much effort is going to be put into the business. There is a huge difference in the businesses that survive and those that don’t when your life is dependent on it being a success.


Most people who have thought of starting up business in Colombia falls for this  "Ego Vs Business Reality"

-Inadequate funding-Bad location-Lack of a well thought-out business plan-Poor execution-Bad management-Expanding too quickly-Insufficient marketing or promotion-Inability to adapt to a changing marketplace-Failure to keep overhead costs low-Underestimating competitors

[htown]

Whenever I get down there I'll be looking for an existing business.  Something simple.  A hotel or mechanic shop.  Cell phone stores sound good too.  A good established bar and/or restaurant might also work.

[Calipro]

Whenever I get down there I'll be looking for an existing business.  Something simple.  A hotel or mechanic shop.  Cell phone stores sound good too.  A good established bar and/or restaurant might also work.

There is nothing simple about having a business in Colombia with a store front that is for sure.


Renting furnishing and subletting apartments to gringos is a consistent money maker but you won't get rich doing it.


Webcam studios were the rage a couple of years ago....better money than subletting and no chance of employees stealing your money but you still have to keep an eye on them or they'll log in to their own private accounts while working from your studio.


Bars, clubs and restaurants are a really tuff business here in Colombia. Know a gringo that just sold his share in Bourbon Street (one of the most profitable bars in Cali)....and is looking to open another bar somewhere in Colombia. But you have to have at least 50 grand before he would be interested in taking you on as a partner.


Also know a guy that imports used blackberrys in large quantities and sells them in "el centro" and makes a killing doing it. Far from the best working environment but the money makes up for it.

[Calipro]

http://www.portalhouses.com/pages/buscador/MotorBuscarRef.php


REFERENCIA: 6738


Type in 6738 to go to the property listing.


This is a money maker....20 grand  for furnishings and you will clear over two thousand a month easy.... subletting this place.


another one is

6911

But you would have to get them down to 4 million a month on rent to make it work. And a little out of the way as far as nightlife and dining options.

[MariaJBueno]

Love all the comments on this thread..
I can only add this: anything that involves great service, you know the kind that you are sitting at bar and your waiter is putting another beer on your table without blinking as he spots you are almost done or how about giving out the right information once? if you see the way things move around here.. you would agree with me.
I have to say that something that does not involve a load of cash and saves you having to deal with a lazy overhead.. Also you must not trust your company to anyone!! I work for a multiniatianal place and the place has a great vision and great policy and sounds good on paper.. but it is ran by  bunch of mediocare people who only chose people they know and step all over people who are good.. so you need to be on top of it.. and make sure you can trust the person who runs it while you are gone.. plus make sure the anythig related to cash is only delt by you..

[Montrealer]

I've looked into business down here these past few years and I've even attempted some things so that the wife can keep herself occupied.  Here are some of the problems you'll find.


Red tape and bureaucratic paperwork.
Lazy employees.
Malls are generally out of the question unless you buy a franchise.
Extremely low profit margins (basically there's always someone who will do it for less).


One business that I have noticed that is taking off right now and if you have the capital and the know how to get started, yesterday would have been a great day to start, is the call center business.  As colombia is expanding into the world market more and more, most companies are not able to handle there own customer service, so they are hiring call centers to this job.  As well, other latin american countries are looking to Colombia for there call center solutions because of the low wages.


My 2 cents worth.

[MariaJBueno]

Yeah call centers are good deal...  it does require a load of cash...  But here in Barranquilla I would do a lot of background check on the people I would hire.. there are a lot of people working in these call centers that were at some point in their lives deported from the USA and are involved in drugs and stuff.. Also some of these companies have given power to a lot of losers that have no work ethics at all and simply sit there run operations based on favoritism .. anyway you always need to know who you do deal with ... not many reliable people around..