Report

Looking for an investor/silent partner and advice on starting up in Thailand.

Business Partners

Jenny Thompson started this discussion 6 years 4 months ago

Hello,

I am right at the very initial stages and still have so much research to do. I have found an opportunity in Patong, Thailand and it rents out for $8,000.00 CAD/month, including a private 3 bedroom house. The facilities have 20 large bedrooms suitable for 6 per room with a bar, 10 private rooms and 6 two bedroom suites. There is also a pool and outdoor area. They have said that rent is negotiable, how do I assess fair value? They are willing to offer 2 months free to give me time to get established and get bookings. They are requesting 3 months security deposit.

Right now I am trying to figure out all of the following:

- is it feasible and would it be profitable?

- do I need a partner or an investor?

- how many staff are required?

- how to figure out start up costs? It is furnished but I would need to purchase linens, duvets and towels and other things will come up.

- how can I estimate income and all expenses? What would all of the exprenses be? I am sure that I am forgetting some: rent, staff, breakfast costs, laundry and cleaning supplies, wifi, utilities, water and sewage, a booking system, fees for the booking sites, fees for debit and credit payments, taxes, equipment and supplies replenishment fund, (maintanence will be the landlord), computer and software...

Looking forward to hearing from you!

Cheers! Jenny

Comments

Report

firashebili

6 years

Hello Jenny,

My name is Firas, I live in Belgium, but traveling is my passion, have been doing it all my life, I'm also thinking seriously to take the step in opening a hostel/backpackers, that's why I find myself here.

Here are some remarks to what you have mentioned:

You mentioned that the rent is 8000 CAD, which translates to a little bit less than 5300 EU. I have never yet been to Thailand, but the rent seems to me disproportianately high. It is true on the one hand that you have many rooms to rent, but you have to take into consideration the load of work and therefore the people you will have to employ and the costs of charges that the property will take, including buying the materials for setting up the hostel....

I get the image that the property is very large for only you, even more than two, like four partners to run a hostel that big? I don't know I'm trying to analyse I might be mistaken.

Here is my email, I'm happy to hear you suggestions and updates. [email protected]

all the best

Report

Bay

6 years

8000CAD = 200,000 Baht

- is it feasible and would it be profitable?
Try to stay around there for a month and do the research before investment
In my opinion very high risk and rent for a month

- do I need a partner or an investor?
Yes, 51% for Thai and 49% Foreigner or Norminee will be better ( Freehold on company name and let lawyer do this 100000 Baht)

- how many staff are required?
3-5 peoples will enough to run the business

- how can I estimate income and all expenses?

Do some accounting before buy and sell

What would all of the exprenses be?

I am sure that I am forgetting some: rent, staff, breakfast costs, laundry and cleaning supplies, wifi, utilities, water and sewage, a booking system, fees for the booking sites, fees for debit and credit payments, taxes, equipment and supplies replenishment fund, (maintanence will be the landlord), computer and software...
Rent - ????
Staff - 10000-12000 Baht / person
Breakfast DIY 50-100 Baht
laundry and cleaning supplies Beach 5kg 150 Baht
High speed internet 100MBps 1000 Baht/Month
Water 4 liters 1 Baht
Computer thing forget it you can buy second hand shop around 3000-5000 Baht

Report

Marco-Millione

6 years

i like that they give u 60 days try. but even before that u need to be ready financialy to start. owners in thailand dont wait for u. they just look for somone who will give money. for u is better to run a way from such people. not just in thai, works everywhere. when ever u meet somone who is asking u money or waiting u to pay everthing u are in trouble. that is my bigest advice for u. those type people are like animals. they just eat what is yours untill u stop giving them. human think for tommorow and will not ask u for pay.

i think 5000 eur is to much for such busines. max 1000 eur.

u can mail me if u need partner. i am free now to april and i have experiance

Report

Marco-Millione

6 years

oh sorry i see there is 20 rooms and bar. 2 to 3000 eur. 5 no way. u need start budget too. i think u will drain your budget to fast. maybe better enjoy your budget not going into busines.

investment is always double than planed. making money is always double less for business where u know what u will get.

Search form

Report 'Looking for an investor/silent partner and advice on starting up in Thailand.'?

Report 'Hello Jenny,'?

Report '8000CAD = 200,000 Baht'?

Report 'i like that they give u 60'?

Report 'oh sorry i see there is 20'?

Join the world's largest community of hostel professionals.

Check Your Email