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Doing business in Bangkok
Starting up in Thailand is fraught with pitfalls. Here are a few
suggestions on how to avoid the most obvious.
Doing business in Thailand, with the Thai, can be a rewarding and
profitable experience. In fact, if you really know your business,
have done your homework, and have "the readies", there is no earthly
reason why your business project should not be successful.
For the most part, you will find the Thai, regardless of origin,
are honest and reliable. That at least has been my experience, and
that
of many friends and associates. However, there are cultural and
legal obstacles that may lead to frustration and failure.
Contracts, whether written or verbal, do not have the same force
that they have in the west. In fact, in some cases, they are not
worth the proverbial "diddley squat". SO watch it, I suggest a lawer driven
document for any worthy project.
More than one hot shot from Hanover, or whiz kid from Wisconsin
has gone home with tail firmly implanted between legs, and pockets
well and truly laundered. More often than not, even the most basic
of understanding of the culture and way of business life could have
paved the road to profits.
Alas, more often than not, those who fail have reached these shores
with an "I'll teach these bumpkins how business is done" attitude
that, through their own superior attitude, leaves them vulnerable
to all and any cultural differences. And, as anywhere else in the
world, an arrogant, smug bastard and his money are soon parted.
All too often, Hans returns to Hanover and Nigel to Newcastle, sadder,
poorer and wiser men. What's more, your troubles and potential pitfalls
do not begin or end with the Thai community, not by a long shot.
There are countless Farang, or foreign business people, who love
to see "newbies" arriving with their smug attitudes and fat chequebooks.
All kinds of deals and "investment" opportunities will be proffered,
some viable, others laughable. Never more has the term "let the
buyer beware" been more appropriate.
There is a huge expat, or foreign community living and working in
The Kingdom. They mostly fall into two categories ( I am referring
to the majority here, the honest ones) , those who fend for themselves
with their own business ventures, and those who fend for themselves
with the safety net on a multinational company.
Not surprisingly, it is our opinion that the latter has the smoother
road. He, or she, will be sheltered from the cultural storm by a
small army of Thai secretaries, advisors, workers, and others who
can translate, understand, advise, and carry our orders.
Work permits and visas are most often prearranged, and the frustrations
of dealing with a bureaucracy that seems to move the goal posts
frequently are, for the most part, minimized.
They often carry with them a brand name, an established foothold
in Thailand, that often includes a fat salary, and a "hardship"
living allowance. If they are really lucky, they sport a family
structure that gives them safe haven after the day is over and they
return to their homeland. That's not to say that theirs is a care-
free existence though.
They often represent bosses in some far off head office who have
no idea of the cultural differences encountered here, how few actual
sales calls can be made in a day, how different approaches must
be when one does have a head-on meeting, how discounts are part
of the culture, and how great an effect the culture shock really
does have. And this is just scratching the surface. Still, they
do have advantages.
The real high flyer though is the unsung hero of this little saga.
This person, most often male, has been to Thailand before, usually
on holiday, and has some cash to invest or develop. Or he has arrived
on these shores as one of the executives mentioned in the previous
chapter and, frustrated with trying to appease head office honchos,
has decided to strike out on his own.
This is the guy that is either going to keep butting his head against
brick walls until they fall. Or, until his head gets flat and so
does his wallet. End of options. The person at the greatest risk
here is the one who came opn holiday and falls in love with the
place or the people, or one of the people anyway. Wow is he in for
a rude awakening. Hell, being here on holiday gives an absolutely
zero true picture of what it is like to do business in the Kingdom.
Working and relaxing are different worlds, everywhere.
As we stated in our opening paragraph, it helps if you are good
at something; it helps if you have a business plan; and it helps
if you can afford to hire a Thai National immediately to at least
cut down on the huge potential for misunderstanding.
It also helps if you have some idea of how expensive this town really
is,
some idea of how hard it is to find qualified staff, and how much
you should
pay them.
You will also have an advantage if you get legal advice on visas,
work permits, company formations, and the like. And a word to the
wise. You will be treading on thin ice these days if you try to
do business without the appropriate documents.
Not only are the authorities becoming ever more vigilant, many tax
paying, paper carrying, legal and established business persons are
getting tired of unencumbered carpetbaggers undercutting the prices
of their goods and services too. They are not too bothered about
making a discreet telephone call to immigration or the labor department.
Trespassers beware.
You will get neither help, nor concessions nor even a thank you
from any governmental department. You will get little of value from
fellow expats either. You are on your own, bud.
That's the way it is, and it's not a pretty picture. But you know
what? I think it is worth it. There are opportunities in Thailand
for those who can operate without a safety net.
There are delights to living in this country, and it is a different
way of life - many would say better - than what some of us have
nudged to the back burner. The whole operation will take time, money
and patience, so we sincerely hope you are long on all three.
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