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Richie1971

Building A Small Village Shop - Cost

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Op, how about we take a different tact on the subject, How much do you want your in laws to generate [profit ] from the business. How much are you willing to give, money wise.

Thailand is not some sort of magic utopia, where everything is cheap and when you sell you make a fortune. Businesses here run the same as in the west. 10% is a good return, here or anywhere.

Just like in the west most small unprepared businesses fail, if there is an opportunity Thais with money are not slow to take it.

So if we say you want them to earn say 300,000 a year, you are looking at an investment of 3 mil. ball park numbers.

Before anyone jumps up and says you can do it on less, yes Bill Gates started with nothing and a few others, but most have to pay for the job.

OP have a look a bahtandsold. People would not be paying that kind of money if they could just set up on the cheap and make the same profits.

If you find an opening that makes money in a village please tell me.

On the fertilizer side, I have a factory and was approached by a fertilizer company about setting up a sales point. The amount of money I would have needed for trucks forklifts, warehouse etc was not that much different than it would have cost [owing the land ] in the west and no local store could compete on cost. Jim

Cheers Jim - been here since i was 34 and know the ropes regarding business - something that could turn over 4-5k Baht profit per month would be ideal - just pocket money or enough to contribute to their costs - Forklifts? I don't live there, I'm in Hua Hin - How you guys can actually live up there is amazing - I might have been a bad bloke and I might deserve to got to hell but I sure don't deserve village life in Issan - More comfortable and not so hot in hell!wacko.png

Edited by Richie1971

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<<My fridges where free one from Pepsi and 1 from coca cola >>

OK - Just HOW do you get that? I have tried and failed, would be good to know.

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If you can earn anything over 20.000 baht a month you are doing very well.

did you mean 2000 baht? lol at making 20 000 baht a month with a little village shop selling veggies. do these "veggies" make you see funny colors?

Maybe 20.000 Baht turnover?giggle.gif

Working? Doing anything without a workpermit.

The involvement with a sometime helping hand in a small Thai village, in the country side, is,

as far as I see and saw it, not so dangerous and must not be in steady fear to be soon facing legal proceedings. (Different in cities and Tourist towns)

My German neighbor in a Chayaphum rural village, tried all kind of different farming, with and without animals and did even the heavy labor himself.

Over years, no problem.

Another buddy from the Netherlands, in a Udon Thani rural village, modified his Pick Up and drives with 2 dozens of school children to and from school,

for a small amount of money, paid from the school children, since long time. Sometimes he and his Pick Up, is also rented out as a Taxi.

No official complains! He is part of the community, but lives alone, his Ex GF is in Sweden with the 'new' guy from the Internet.wink.png

All what he invested in land and the house he built and lives in, is in his Ex GF name.

Until now that is accepted.rolleyes.gif

To the -OP-

-Skyanimal- and some others said it well and all already.

Our turnover on the Thai food.... Noodles,Somtam and rice dishes(3 tables and takeaway)we sell is around 20.000 a month on its own wink.png my there are a lot of jealous farangs on here also i see wai.gif

The fridges where free years ago CTO and they also supplied around 200 free bottles of coke to start you off with! i don't know if they do it now?

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Op, how about we take a different tact on the subject, How much do you want your in laws to generate [profit ] from the business. How much are you willing to give, money wise.

Thailand is not some sort of magic utopia, where everything is cheap and when you sell you make a fortune. Businesses here run the same as in the west. 10% is a good return, here or anywhere.

Just like in the west most small unprepared businesses fail, if there is an opportunity Thais with money are not slow to take it.

So if we say you want them to earn say 300,000 a year, you are looking at an investment of 3 mil. ball park numbers.

Before anyone jumps up and says you can do it on less, yes Bill Gates started with nothing and a few others, but most have to pay for the job.

OP have a look a bahtandsold. People would not be paying that kind of money if they could just set up on the cheap and make the same profits.

If you find an opening that makes money in a village please tell me.

On the fertilizer side, I have a factory and was approached by a fertilizer company about setting up a sales point. The amount of money I would have needed for trucks forklifts, warehouse etc was not that much different than it would have cost [owing the land ] in the west and no local store could compete on cost. Jim

Cheers Jim - been here since i was 34 and know the ropes regarding business - something that could turn over 4-5k Baht profit per month would be ideal - just pocket money or enough to contribute to their costs - Forklifts? I don't live there, I'm in Hua Hin - How you guys can actually live up there is amazing - I might have been a bad bloke and I might deserve to got to hell but I sure don't deserve village life in Issan - More comfortable and not so hot in hell!wacko.png

On that I can speak from experience, wife was bored and kids were off school, so she set up a milk shake shop in front of the house. Now we have little stalls that sell ice drinks etc around, now wife has lived in OZ for awhile and brought back a big solid blender, sunbeam I think. Anyway she set up using powder milk and powdered cream, sprinkles. jelly and chocolate sticks. Not just some flavoring mixed with crushed ice. Drinks wre 10, 15, and 20 Baht. Kids were coming from miles around to get these starnge milk shakes. On a good day she would turn a 1000 Baht, 500 profit.

When the kids returned to school turn over dropped off, but weekends were good. At a guess she made 4,000 Baht a month profit while it was going.

That's not how we make our money and she got bored with it and it interfered with going shopping. None of the family could be bothered and it was closed up, no doubt to be resurrected again next school hols, when my kids are stuck at home.

Total cost except for the blender was 3000 Baht.

Thailand is a land of free enterprise and if you are willing to put the effort in and have something a bit different you can succeed or at least make a living. JIm

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"Thailand is a land of free enterprise and if you are willing to put the effort in and have something a bit different you can succeed or at least make a living. JIm

You are so right. You'd be arrested for selling drinks outside your home back in the UK. No licence, no health certificate, no planning permission - deep shit time. Here as long as it tastes good then never mind smile.png

That's way I live here in the out-lands. freedom, there is no one to tell me I can't do this or that. YET, but it is coming. Jim

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Secret recipe Jim?

Nothing secret, just frothy milk shakes with a different taste and all the kids thought they were farang drinks. If it is west it must be best. Jim

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To me appearances can make a big difference to how many customers you have and therefore the profit you make.

A shop underneath the house would not be as appealing (though initial outlay much less) than a stand alone shop with decent frontage and decor. Think you need to stand out from the rest. Also a shop underneath the house would mean people coming all hours especially the local drunks who feel can just bang on the door for more beer.

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Some good replies - However the family are neither drinkers or layabouts - I have a feeling some of the posters have had bad experiences in the past (or more likely living the dream nightmare with a Leo and a keyboard for company) and are feeling bitter - I merely asked about the set up costs for a shop in a village, nothing more nothing less

I understand your question but let's be honest it is an impossible question to answer as there are so many things to take into account.

Such as how much floor space you have, What new structures you need to put in place to make it a 'shop'.and what the cost is to make it secure when one goes to sleep. What fittings you need to buy and their cost.What you plan on selling, how easy and how far you have to travel for stock and build in that cost foe each thing you sell. How much stock can you hold as the more bulk purchases the cheaper you can buy therefore more profit you make. That is only a few things to consider.

I had my own business in UK for 22 years so have some understanding of what is required to have a profitable business. Believe me it is hard work and as I said in previous posts looked into the same thing in my wife's village but after a lot of though decided it was a no brainer.

Anyway if you decide in the end to go for it, the best of luck. (keep the paracetamol handy)

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My question is 'what do the inlaws want?' Was this their idea? Any small business will be hard work and will fail if they are not prepared to put in the effort. 2nd question what businesses are there already and are there enough customers. you want to set up something (independend of of you are there or not) for which there are enough customers. So no 3rd small village shop, but its ok if there is none and now people have to go to town to buy basics.

I set up a pig feed shop on an area with a lot of pig-farmers which had to get their feed from 10km away an pay 10bath a bag for transportation. We buy wholesale and deliver and in the end we make a profit and the farmers are not paying more then before but get the feed delivered free.

Regarding helping to set something up while you are away:

I also helped some family and friends set up some things when I still lived in the netherlands.

I always asked for some kind of business plan (verbal) and guarantee. They would give me their deeds to land or owmership documents from their car as colleteral. I would give it back as soon as they had paid me back.

I loaned an uncle the money to buy a cheap 2nd hand truck and convert it to a bus to drive kids to school. the kids pay him once a semester. He paid me back in two years and has now been driving the schoolbus for 7 years.

Loaned money to another uncle to buy pump and irrigation equipment. Resulting in much better yields from farming. Money returned after the first crops.

I loaned some friendsthe money for setting up a noodle shop (first one in the village, 10years ago). Money returned in a year.

Other examples include lending money to raise a couple of cows, pigs, and chicken.

All this I did while not being present and only on one occasion did I have trouble with getting my money back.

I never give money, only loan it out (first time to family without interest). And always ask for some collateral so you have a leaver if they don't want to work and just lay around and drink.

Btw all this was sequential. We had some money reserved to help our thai family/friends and when it was paid back we loaned it to the next one.

When me and my wife finaly moved to live in our village permanently after 12years in the netherlands this stopped of course. Here we have a 'thai' income from shop and our pigfarm so money is tight.

But as a result of these 12 years we are well liked and respected and if i am a bit short I can buy/ eat/drink on credit if I need , people sometimes work for free to help out or I pay them when I have money and friends/family haved loaned me money on occasion.

So it works both ways.

So help your inlaws if THEY are serious about setting something up. Since they were farmers they are used to hard work and don't need that much income. Helping them with a loan (may be a 50 year one) will be more effective then a gift. It will also save them face(they are businessmen not beggars) and you will be seen as a farang who wants to help the family instead of a dumb farang to be fleeced.

Sent from my GT-S6102 using Thaivisa Connect App

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Thanks Revar, but been in Thailand 8 years and quite aware of the 'village scene' just asked how much to build a shop

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Also I have never been asked for any type of loan from anyone, I am simply researching options that may or may not be able to turn 4/5k baht per month profit. It really is as simple as that. What people send back from overseas for whatever reason is simply not relevant to my question.

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Richie, I understand. I just wanted to react to all those comments which say that an enterprise will fail if there is no farang to oversee it. Simply not true.

Regarding village shop costs. Since you have been here so long you probably know that costs would be the costs for walling up the area underneath the house, some kind of gate/door, some shelves a.d the stuff to sell. Easy to calculate if you get some quotes from a builder in the village and building material shops. And if it should fail you have build a nice new ground floor which you/they can use for other purposes.

But in my opinion you will only make your sales target if its the first shop in the village. So look whats lacking.

Sent from my GT-S6102 using Thaivisa Connect App

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