Starting a Business with a Solid Foundation
Many expats here fall in love with the place and eventually decide to put up a local business of their own, many with retirement in mind. It is only natural and expected, as Thailand is indeed a wonderful place and there is a lot of potential here for a business. However, many are unfamiliar with the territory and usually require advice from people who are more versed with the local requirements for starting a business, with the former only supplying the capital and dictating the general direction of the business.
.
That is all good and well, except that there are instances where people who put up a business are taken advantage of by their partners / helpers. You need to take steps to ensure that your trust is not misplaced and that your funds are in good and capable hands.
.
One of the things you can do is to have a background check done on a prospective partner or partners. Not only do you know his / her trustworthiness, but also know whether he or she is indeed qualified for the job. It always helps so that you know whether or not someone has at least the financial capacity to be a partner, and not just be a bag of hot air. Some might lead you on but really have nothing but their words and their charisma. Always beware of sweet talk.
.
It’s important in every start up business that there is a legal framework and base so that everything is in order. Having everything documented, with certain strategic entries overlapping, can serve as a safeguard so that proper records can be kept and less opportunities for some to take advantage over the other. Always consult legal counsel when dealing with such matters, so that any lapses or loopholes can be properly addressed and changed accordingly.
.
Another important thing to look out for is proper record keeping and inspection of your business. Many businessmen (and women) make the mistake of just leaving things to the one who manages operations. Try to take the time to visit the office or the business premises every so often. This way, you establish a productive routine while being unpredictable at the same time. Of course, it goes without saying that you should which particular sections of record you should look through thoroughly. Many small cheating techniques involve setting up a separate account to funnel in stolen money, and misdeclaring expenses. Check and double check always. If you don’t have time, then have someone reputable, like an auditing or accounting firm, do it for you. Or better yet, if you can afford it, hire an accounting firm to do the numbers for you.
.
It’s not easy to put up a business, much less run it, but if you start things on the right foundation, you’ll have less problems in the long run, and you can focus more on what your business is really about instead of just running around dealing with side issues.
July 17th, 2010 at 23:23
This is good sound basic advice! I’m sure that business consultants and lawyers can even offer more tips, but this is a step in the right direction. I take it that many clients in your profession failed to do these things simply because they were not familiar with the territory. Who can blame them, right? They only know what they’re told and if the person they trust happens to be unscrupulous, then they will always be fed false and misleading information. Having some reference like this will help them think and pursue additional ways to secure their investment. The money one shells out here is not a joke.
July 18th, 2010 at 11:17
It is so sad to hear when an expat who wants to do business here in Thailand to be swindled by some smooth talking fraud. Thailand is a wonderful country, and having lived here for fourteen years now and counting, I can say that even though I am from Europe, retiring here is one of the best decisions I have made in my life. I also have a small business venture of my own, and I can relate to people who have had difficulties setting up a business here. But they key is all in the article – seek professional help instead of just relying on heresay.
July 20th, 2010 at 09:35
Businessman: You name seems to indicate that you are a real businessman here in Thailand, so thank you for offering some of your thoughts here. Yes, I really agree that there are other people more qualified to consult on a business start up – we here are just sharing some of the common things a number of our previous clients failed to do.
Expatthaifan: Indeed, Thailand is a wonderful country filled with great people and a rich cultural heritage. Very few countries in the world can say that about themselves. But like every place in the world, it has more than its share of unscrupulous people, so everyone should always be on their guard. Thank you for visiting!