Both times, they acknowledged the mistake and quickly gave us the correct change, but I am wondering if this is happening to others?

Has anybody else experienced this recently?

As always, keep an eye on the tickets going into your bin. Don’t be shy to take them out of the cup and look at them every so often. Be aware of what you give them, and even get confirmation from them on what you are handing them, and then of course check your change. Common sense, but sometimes hard to do when smashed, which I’m sure they are counting on.

Maybe they were just mistakes, but given that both bars were not that busy, and that it happened twice in the same night, it has me wondering. Anyway, this is just more awareness to keep an eye on things I guess.

This page will be the central source on the blog where you can find things related to running a business in Thailand. We will link to relevant content, posts specific to business in Thailand and any other thing we think might help you make a decision. We are not experts but we have built ourselves a Thai company, have bought one bar, and have built another bar. We may not be right, but we do have experience running a business in Thailand.

Stay tuned and we will add to this as we go.

Blog Posts for BIZ 101 Series:

Post # 1 – So U Wanna Live In Thailand?

• Reader Contribution by A Guy who did live in Bangkok
• Reader Contribution by Werewolf

Post #2 – Biz 101 :: The Books

Post #3 – Treaty Of Amity Info

Post #4 – Intro to IdeaCon

Post #5 – Build or Buy?

—————————————————————————————
Any questions, comments or suggestions – please email.

Useful Links:

• 2006 Thailand Legal Guide from Bangkok Internation Associates
  • Chapter 9 – On Labor from the Legal Guide
  • Overview of Thailand Labor Regulations

Links to companies we know and have used:

• http://www.sutletgroup.com/
  • No matter what you end up doing you will need an accountant. You also will need someone to help you with the various licenses you may need and other administrative type things. Even if you are using a business agent – do not assume that this agent is a substitute for a good accountant.

The Inspection (Interior) – A quick look of the inside of the premises is a crucial part of the inspection process and is very helpful in making a proper decision. There are many clues to the well-trained eye that will give you a glimpse into what type of massage you will be receiving. The best way to do this is to simply ask if you can take a look at the room, as the staff should be more than happy to honor your request without any questions asked. Upon looking at the massage room, there are several important indicators. If you see any of the following there is a good chance not even your ego will receive a good stroking:

• Oil massages done in the relatively open room, with basic, modest, or see-through curtains separating the customers.
• Open windows with no curtains.
• Bright lighting without the availability of dimmers.
• Customers receiving oil massages in full or partial view of others. (Remember these are not “Thai Massages” which are done often fully clothed)
• A lack of the ability to conceal the massage from other customers or staff, or just a general lack of privacy for their customers.

There are even more hints that knob polishings are taking place if you pay attention to the details on your inspection. If you see any of the following, there is a good chance you will be leaving without your daily drippings:

• Clothespins- The inventor of these little items should receive a prize, and trust me, they are not for hanging your wet laundry. The use of these little gems cannot be understated, as they are used to keep prying eyes out of your private sanctuary during your massage. If you see clothespins, hair clips, or any other type of fasteners anywhere around the massage area or on the curtains themselves, this is a great sign that things may get wet and you will not be left hung out to dry.
• Music to my ears- There is nothing better than the sound of music playing in a massage room. While most places will have some sort of soothing background music playing, the existing of a more modern, and sometimes slightly louder music in these rooms is also a good sign. This higher volume is used to drown out the sounds that emanate from the individual cubicles when massages take a turn for the better. When I find places like these it’s always music to my ears as I know there is a good chance of having my skin flute tuned.
• Toilet Paper- By far one of the most significant clues of a complete massage is the existence of a roll of toilet paper, either in or around the area where oil massages are taking place, and it’s not for wiping your ass. These spooge sponges play a pivotal role in cleaning up the mess you will leaving, and by storing them in close proximity to the massage area tells customers; “We know you will be leaving your sticky sauce behind, and we are prepared to clean it up.”

The Massage- Before even beginning the massage pay attention that you don’t get thrown the old “bait and switch”. Although it is not too common, it happened to me several times when I was a newbie. This is when a generally very attractive staff member, often wearing sexier clothes than the other staff, will call you over for a massage, and explain prices and options to you. Then, at some point after you agree to a session, she will they then point to the 4 hideous looking ladies behind her and ask “Which One?” I have actually been caught in one of these situations where I was already de-clothed and they pulled a switcharoo on me and I end up getting a thorough body bashing from what could only be described as a 100 Kilo leather-faced great grandmother with an ax to grind. You can easily learn from my mistakes here by simply asking, “Will you do the massage?” or “Who will do the massage”. Always make sure you know who will be doing the massage if they assign you someone, or clearly state “Can you do the massage?” while gesturing towards the mistress of your choice.

Many of these places will have showers available for their customers. Often being on foot in the hot sun will bring on many less then desirable body conditions, so whenever possible I try to take a shower before the massage, as I know the artist of my choice will prefer and appreciate a clean slate to start her masterpiece on.

One of my favorite things is the Quick Change. This happens when your masseur, leads you to your massage area then excuses herself to go change into something “more comfortable” for the massage. This is a good reason why you should not solely make a decision based on the uniform alone. Their uniforms are often long pants and or satin Thai-style dresses, and something they may not want to get oil, or bodily fluids on, so a change of clothes is always a nice sign. They will often change into shorts and T- shirts, which works just fine for me. I remember being initially disappointed in one instance as my lady returned back in full long pants, without any change at all, just as she removed pants entirely in the cubicle and completed the entire massage, and extras, in (and out) of her underwear. If on your initial inspection you see some staff that are out of their uniforms, then this is probably the case, and it’s always a plus.

A good way to let your 1-hour girlfriend know that you ready, willing, and able right from the start is to toss the towel. When you are led to your mat or table, you will be given instructions to remove your clothes and often handed a towel. I simply throw the towel aside and never use it to cover myself. You will start on your stomach initially, so if you are not too shy, this is a great way to send an initial message that says, ï¹’You will be seeing a whole lot of me for the next hour.‧ Many times they will go ahead and put the towel over your ass, but I try to find a way to “get it off”. I will often state that it is hot, or that I am not shy, or that its simply unnecessary. Every once in a while this will result in what I have termed as a “Towel Fight”. This is when a masseur consistently attempts to cover you up, while you systematically try to reveal yourself. When this happens, it’s never a good sign, and you might as well fall asleep and dream of your next encounter, as the chances of this one going anywhere are slim.

After just 15 minutes you should already have an idea of which way things will turn, so when you do turn around, don’t be shy. Your nonchalant and matter-of-fact attitudes will help out a great deal on later. When you turn around, you may already be telling your therapist “I’m up for it” without saying a word. This is a good thing, so don’t get shy now. As the massage continues, there are many forks in the road here, and it can go in several directions. Obviously they are in it for the money, so more times than not, they will want to do what they can, within reason, to earn bigger tips. One of the easiest ways is the simple Hand Job. Their methods of getting you to this point will vary, however some will simply go ahead and just take the bull by the horns, no questions asked and hope for a nice tip. Others may ask in various ways which is often, but not always, followed by the annoying negotiation part. This is clearly one of the hardest parts because more times than not she will have you by the balls, literally. While your soldier may be saluting her, it does not mean you have to follow her orders. I agree, it’s probably one of the more difficult negotiating situations, but I can give you a few tips that will not only help you get past the awkward stage, but possibly save you a little cash in the long run.

What you tip your specialized sperm extractor is entirely up to you, as there are ton of variables that go into this decision. For a basic rub-n- tug tipping should probably not be less than 200 and anything over 500 – 700 Baht is a bit much, but still tip whatever you feel like it, as there are no rules in this. While your body may be demonstrating something completely different, to get the best price, your attitude should remain nonchalant. When they 1st ask you if you would like have your pipe cleared, simply tell them “Up to you” This well let them know right away you are good to go either way. If they ask you, “How much you pay?” try not to give them a straight answer, and as in most negotiations, let them mention price 1st. After that, the back and forth can begin. I rarely partake in this anymore, as I find it a real “downer”. If they don’t come down to a decent price and quick, I just take my stick and balls and play somewhere else.

The last bit of advice, which is also good for many situations, is to have small denominations of Thai Baht and to know exactly what and how much you are carrying at all times. I remember early on in my Thai endeavors feverishly negotiating for some special services, stating I only had 500 baht on me, only to stupidly pull out a 1000 Baht bill on completion. This was a very embarrassing situation indeed, and a clear loss of face on my part. Sometimes, if there was no price negotiation, and large bills are handed over, getting all your change back can sometimes require a bit of work on your part as well, so the small bills will come in handy when paying for the massage and tip.

Thailand is well-known globally for its massages and with air-fare prices dwindling there is no reason why you should not hop on a plane, and see for yourself why people just keep cumming back over and over. Nothing in your home country will prepare you for, or compare with, a proper massage in Thailand. Your experiences here will not only blow your wad but your mind as well so go ahead and enjoy your oil massage with a very happy ending.

After living here in Thailand for the past 3+ years, and getting a massage at least once a day for the 1st
year, then a few per week over the next two and half in over 15 cities throughout the Land of Smiles, I have had my fair share. In Thailand, especially Bangkok, there are some well know shops that are clearly anything but massage shops and offer everything and anything under the sun. Many of which are listed here in the Wicked Traveler. This article is not about those types of shops, but the thousands of other shops spilling over throughout the country that may offer these special services, particularly Hand Jobs, but would look like any other shop to the untrained eye.

So why would someone even bother to go to one of these “regular” massage shops if they can get everything they want from a well-known Pay 4 Play (P4P) shop? Well, several reasons:

Discretion – If you are a single male coming here alone to indulge in Thailand’s finer assets, you might just want to head straight to a full- service shop and skip the B.S., however if you happen to be here with a significant other there is a good chance you might need to keep the “it’s just a massage, darling” mantra, and these clean-looking massage shops will aid in that, albeit weak, argument. (NOTE: Don’t try this with a Thai girl, as I learned that the hard way)

Massage- The fact is you may very well want a legitimate massage right along with your busted nut, and these are just the places to get these two tasks completed in a timely & efficient manner. Often these ladies are experts at not only relaxing your tense muscles but tensing up your relaxed muscle, before expertly relieving you of that stored load of baby batter.

Cost- If money is tight, and you want the most out of your hour (or two) then these shops are the way to go. Most oil massages will run 250 – 400 Baht per hour. This includes the oil massage without any extras. Because the staff in these places caters to all types of customers including women, families, elderly, etc., their expectations of tips can be lower than the straight P4P shops. (More on that later)

NOTE: Costs can vary depending upon what area of the country, or even the city you might be in. Your full service, anything-but massage shops, will generally range from 500 – 1000 Baht Per hour for the room alone. These types of places generally have private rooms with showers resulting in the higher costs. (Prices can vary widely here as well). So if you are looking for a simple massage and HJ, these everyday massage outfits may be just what the nurse ordered.

The Unknown- One of my favorite reasons for partaking in these types of rubdowns is the gamble. As her well-oiled hands glide up my thigh how far will she go? Does she avoid the bait and tackle like the plague, or does she dive in like an excited 5-year-old on Christmas morning? This is what I find the most fun, as every new girl, or new venue is a new hand and a fresh deal. Do I walk away with a full smile and a pair of empty nuts, or do I leave as blue as my balls? For me, the true excitement lies in the
unknown.

So how do you go about finding these fine establishments, and with a limited budget and time, how can you make the right choice? Phuket alone has hundreds, if not thousands of shops, with more opening every day, and probably 10 – 20 girls in each shop, so your options are virtually limitless. To help you navigate this confusion I have put together the following guidelines, based on my own experiences that will help you get the most out of your massages here in Thailand and keep you cumming back for years to come.

1st Rule- There are No Rules- The fact is that on any given day, in any given place, you can have an experience that goes beyond any possible explanation. Anyone who has been living here for any length of time can certainly confirm this. I have been in the raunchiest, sleaziest, run-down dirty, massage hole in the wall place and received nothing more than a coat baby oil splattered on my back, while I have also been pleasantly surprised by a hot and sweaty table-top session with a beautiful massage therapist at one of Thailand¡¯s most high-end and prestigious spas. With that said, the following paragraphs are simply guides that will help you in your quest to rid yourself of that pent up protein paste, and remember this is Thailand, there are no guarantees.

The Inspection (Exterior) – From the outside many shops appear nearly the same, however there are sometimes subtle and important differences that can help you make the right decision. The best way to see these shops is on foot. Leave the rented motorbike at the hotel, and complete your inspections on foot. Not only will you be able to see more, but there are enough obstacles just walking with your head turned, let alone driving. As you walk up to these massage shops, most will have signs with Foot Massage, Thai Massage, and Oil Massage along with the prices for these services as well. Foot Massages are generally given towards the front of the shop in a lazy-boy rocking chair, while Thai Massage are more of a stretching and pulling of your body, and both are done with your clothes on often in the open, full view of others. Both good massages, but that is clearly not what we are after in this article. What you want is the Oil Massage. Although this is Thailand, extra services are not always included or offered, and in fact in many tourist areas, some shop owners have been known to forbid their staff from offering or partaking in these extracurricular activities.

Unless you know the place well, it is always best to be discreet about your special needs, so don’t walk in and say “How come I don’t see Hand Jobs on the outside sign?”. This brings me to another important point. If you are looking for a lower price on your massage don’t ask. “Do you have a special?”. The word “special” here is never associated with a lower price, and is only used when discussing “special services”. I recommend using the word “Discount” as most will understand this word, and you will receive a lot fewer wide eyes and flush faces. (Trust me on this one, as I learned the hard way)

One of the easiest and most obvious ways to determine if this shop is offering rub and tugs is by the uniforms, or lack thereof. Almost all of these shops will have a group of ladies out in front calling the now famous “Helloooo Masaaaage”. If these “therapists” are dressed in small shorts, skirts, and/or tight shirts, or any type of revealing clothes, this is often one of the best indicators that, at the very least, a sausage soaking is on the menu.

Another clue is the existence of Japanese writing on the outside windows or sign boards. What, you say you don’t know what Japanese writing looks like? Well neither do I, but it’s not English and it’s not Thai, so if you see anything that looks like this:  マッサージ That’s Japanese. The Japanese are well known to drop a great deal of money for P4P, and they are also kinky SOB’s, so any massage joint that specifically calls out to these customers types, is always a good choice.

The last and probably most important sign from outside the shop that a proper flogging is on the horizon, is the existence of a bar, either directly outside of the massage shop, or in close proximity. Somehow the Thais have magically combined drinking, massages and P4P all within the same surroundings. They have intelligently figured out that the more intoxicated we are the more likely we are to part with our hard-earned cash.

to be continued…

Here goes it…

First off – buying is just easier for most people, especially if you are new to Thailand. Buying takes the fear out of getting up and running since one should be acquiring a running business that is licensed, has employees, customers and hopefully a decent stream of revenue. Sounds simple enough but the devil is always in the details.

• Why is the person selling the business?
• Are there some negative events looming forcing a sale?
• Are you inheriting anything that could cause problems down the road?

Buying a business can sometimes be harder than it looks since it can carry some baggage not seen when starting a new business. There may be some tax issues, problems with customers, problems with employees and so on. The best advice here is to not move too quickly. When I hear stories of people buying Thai business sight unseen I just cringe.

My advice is to only buy something you have seen, have been able to observe running and are not rushed into. The simple way to explain this may sound a little sarcastic but if the business is doing well then why is someone selling it? Granted – they could just be wanting to cash out and move on. Fair enough but keep in mind that means you will be paying for the person to cash out and move on which means that buying a business is generally more expensive than building a new business.

That is not to say that buying revenue or profits is a bad thing but just keep in mind that buying is generally more expensive than building. The other issue is what I call the Thailand effect. Many times people are selling businesses that are not doing well and view selling as a way out. One needs to be sure that if this is they case that the buyer is not overpaying for a bad business. There are other Thai issues that come up that can also force a sale and raise the potential of getting a good deal.

Husbands and wives divorcing and needing to divest of the business. Boyfriends and girlfriends breaking up with similar outcomes possible. Sometimes people just decide they cannot live in Thailand and want to sell. These fire sales as I call them happen all the time in Thailand but sometimes they are used to purport that the business is making money and the owner only wants to sell because he split with his Thai girlfriend/business partner. Although that is very likely many times you will find the revenues are not what they seem and the real reason is they want out of a bad business and are using the breakup as an excuse. Keep your eyes open.

Many times the businesses people are buying and selling in Thailand are cash businesses. We all know the merits of a cash business and I won’t be discussing those here but that means it is easy to cook the books. So make sure you understand how this works, get some real sense of the business and create your valuations on the potential of it all – not the cooked books. Here is why patience is important and why coming to Thailand to actually look at the business is equally important. Like any important transaction, it may be prudent to have your own lawyer or local business consultant not associated with the agency that is listing the business or working with the seller.

Building – I am a big fan of it because I believe the returns are greater but so is the risk. I am sure we would not have chosen to build the second bar had we not had the experience of buying the first bar. Meaning, for our first time out, I don’t think I would have tried to build a business but with our past experience I feel strongly that going forward I will build versus buy.

Building means getting licenses from scratch, negotiating your own lease, dealing with the police, branding, marketing, finding staff, managing construction and so on. All hard stuff with the potential of blowing up and forcing you to open later than expected or potentially destroying the whole project. I know stories of people never getting open due to running out of money or being unable to complete the project due to unforeseen circumstances. It can happen. Many times you also hear of people who run out of money after they open because they did not realize that they may have to run at a loss for some period of months and did not budget this in. Shit happens and in Thailand it happens when you least expect it. Remember it is their country – not yours.

Obviously this is my opinion based on our experiences in the bar and restaurant business. Other areas of business could be completely different and may carry circumstances that make evaluating buying or building as a decision totally different. Hard to say really but either way the Thai factor is present and may be one of the overriding reasons for buying or building.

Much more to talk about on this subject but hopefully this will kick off some comments and relevant discussion.

http://www.ideacon.biz/

This is NOT a paid advertisement nor was I contacted by the company but rather I came across the site and thought it might be of interest to people who are considering setting up shop in Thailand. Usually people end up working with brokers and buying an existing business. Or people come here and try to build a business from scratch – which is not easy but can be done. Ideacon is a new company focusing on helping people research ideas with a goal towards starting a new company based on a new idea. It is a new concept and there are no success stories but I think it something worth noting. I also think it is important to support business in this space to encourage the overall expat/entrepreneurial landscape. I have encouraged the owner of Ideacon to share any future success stories here and I invite anyone who has experience with Ideacon to share as well. Following is a letter from the founder of Ideacon.

My name is Kristian Olsen. My native country is Denmark. I have lived and worked 9 years in Thailand of which 5 years was spent in Pattaya and 4 years in Phuket. So I’ve gathered quite a lot of experience doing business and setting up businesses here.

Most foreigners who fall in love with wonderful Thailand don’t realize that starting a business requires a lot of hard work – it’s not only about hanging out with your customers and having fun….

I found out by myself the hard way! It cost me a lot of time, worries and money!

I have been in many trades in my 9 years in Thailand, and all of them I have set up from scratch by myself using my own ideas. As a business broker I have also sold them myself when they were profitable. It cost me blood, sweat and tears!

I soon found out that there is no such business or company in Thailand that actually concerns itself with assisting foreigners by offering advice and ideas on how to set up their own business from scratch. All of the business brokers are only selling other people’s businesses….and that’s it!

So one day it came to me, why not assist setting up other people’s businesses from scratch and earn a living from that? Instead of using my own ideas setting up my own businesses I could use my ideas by setting up other people’s businesses.

Actually I have too many ideas to realize them all…so why not earn a living of it? Let other people use my ideas and take advantage of my experience!

So I decided to establish IdeaCon.

Much appreciated!

When it comes to setting up a company in Thailand, Americans are afforded a special way to form a Thai company. These companies are called Treat of Amity companies and are a huge benefit for Americans. The Treaty was suppose to expire in February 2006 but did not. Further to that the Free Trade Agreement between US and Thailand was suppose to be signed sometime in 2006 thus effectively ending the Treaty but the FTA has not been signed so the Treaty still lives. Under the FTA laws enforced by the WTO – no one country is to have specific benefits over and above any other country. So the Treaty should die but given the lack of a solid government in either the US or Thailand – the loophole lives on. Also keep in mind that if the Treaty were to stop, it should not have an affect on already approved or established Treaty companies. It also appears that Treaty companies are immune, for the moment, to the current changes in the Foreign Business Act that is currently shaking up Thailand.

There is another theory as to why the Treaty will continue and why Treaty companies tend to be immune from the changes in the FBA that I will espouse here – like it or not. The US military presence in Thailand is the largest of any foreign country and the US funds training exercises like Cobra Gold along with selling military equipment to the Thai military. Bottom line is there is too much at stake diplomatically for Thailand to eradicate the Treaty and if they did my guess is they would not mess with already established Treaty companies. So my take is get one while u can.

Below is some basic overview information about Treaty of Amity companies and how they get created. I will try to get some cost estimates soon for creating an Treaty of Amity company.

Basic Facts regarding the Treaty of Amity:

- Signed at Bangkok on May 29, 1966 by His Excellency Thanat Khoman, Thai Minister of Foreign Affairs, and The Honorable Graham Martin, United States Ambassador. – Provides equality of benefits to both sides.

- Grants Thai firms the right to operate in the United States under the same conditions as U.S. domestic firms (‒national treatment”). Grants U.S. firms reciprocal rights in Thailand.

- Provides international law protection (and recourse to the International Court of Justice) for Thai firms in the United States. Under the treaty the U.S. Congress may not on act discriminatory laws against Thai firms. Their assets may not be expropriated. Their profits may be freely remitted to Thailand. Grants U.S. firms reciprocal rights in Thailand.

- Provides for special ‒treaty trader” and ‒treaty investor” visas for Thai businessmen working in the United States. Such visas are available with minimum application formalities. The number of Thai applicants for such visas has grown each year with increasing Thai participation in the U.S. economy -an increasing Thai participation in the U.S. economy – an estimated 230 Thai businessmen will receive them this year.

- Creates a hospitable climate for investment in the two countries. As a result, U.S. firms have been major traders and investors in Thailand for over thirty years. In recent years, with growing Thai economic success, more Thai companies are trading and investing in the United States. They are enjoying the treaty’s benefits. Abrogation of the treaty would end these benefits, and could raise obstacles to increased flows of U.S. investment to Thailand.

How to Register for Treaty of Amity Benefits for American Companies:

The Treaty of Amity and Economic Relations between the United States of America and the Kingdom of Thailand – commonly known as the Treaty of Amity – was signed on May 29, 1966. There are two major benefits of the treaty:

- The Treaty allows American companies to maintain a majority shareholding or to wholly own its company, branch office or representative office located in Thailand,

- American companies receive national treatment. That is, they may engage in business on the same basis as Thai companies, and are exempt from most of the restrictions on foreign investment imposed by the Alien Business Law of 1972.

Some restrictions on American investment still exist. They include:

1. Owning land;
2. Engaging in the business of inland communication;
3. Engaging in inland transportation and communication industries;
4. Engaging in fiduciary functions;
5. Engaging in banking involving depository functions;
6. Engaging in domestic trade in indigenous agricultural products;
7. Exploiting land or other natural resources

Some US businesses still choose to form joint ventures with Thai partners and allow them to hold the majority stake because of their familiarity with the Thai economy and local regulations.

Application for certification of a Treaty company is generally done in conjunction with or after establishment of a company. Completion of the entire Treaty certification process typically takes about five weeks. It normally takes less than one week for certification from the U.S. Commercial Service office. It may be advisable to consult with a Thai legal or tax expert to be assured of successful registration.

This is by no means an exhausting list of all the business books out there but these tend to be the main ones you will find at the local bookstores and on Amazon. Hopefully readers will post their own comments about these books or even suggest other books they have read or find useful. Most of these books get updated every few years or so but I think it is fine to find one in a used bookstore if u r looking to save some baht.

The first book is Doyle’s Guide to Business Law in Thailand. Don’t let the title scare you since it is a pretty easy read and I found it very helpful. Doyle is a local lawyer, speaker and author. This book is not a how to per say but provides insights into employee law, the Thai VAT system and other legal issues. Given it is such a quick read I highly suggest picking up this book. Thailand’s labour laws are overly slanted to protecting the employees and this book provides a thorough overview of Thailand’s labor laws. Thailand’s labor laws tend to overprotect employees – I would go so far as to say overprotecting with a heavy unfair bias to employers. If you come from an economy with VAT then no big deal but as an American it was new to me so this book gave me some helpful insight into how a VAT based economy works. The writing can be a little tied up in legalese language but I think this book is very helpful if you are planning to do biz in Thailand. The 3rd edition is now out with some new chapters.

Start Up and Stay Up in Thailand by Roy Tomizawa. This was the second book I read and found it helpful but once again it is not a how to book. Nothing in here about how to structure things or where to go to get things done. It is stories and insights from other business men, expats and lawyers in Thailand. I think it is a good read and might even help you decide if you are really up for trying to run a business in Thailand. In some sense dealing with any business in another country or any business managing low wage employees has similarities but this book talks about them and shares a range of experiences from running businesses in Thailand. Nothing in here relates to running bars, restaurants or being in the hospitality business. There is a fairly new edition of this book out with new chapters.

Thais mean Business by Robert Cooper. When I was hunting for books before I never saw this one. The title does not appeal to me much(for obvious reasons) but Robert Cooper is also the author of Culture Shock! Thailand so he is already well known. The culture shock books don’t grab me since they make it sound like all these places are like living on Mars with the only way to survive being to learn about their culture. Anyway. I did flip through it and it looks somewhat helpful but I have not read it. Anyone else read it and care to comment?

Working with Thais by Henry Holmes, Suchada Tangtongtavy and Roy Tomizawa. Since I like Roy’s other book I figured this one should be on the list but I also have not read it. When I flip through the book it seems more about office type work and getting along with Thais in the workplace. This might be helpful to some but once again it is not a how to nor does it cover anything in the bar or restaurant world. It does look like it has some interesting chapters though. Anyone care to comment?

This is just a quick round up. I don’t think the definitive how to book is written and part of the reason is that doing business in Thailand is like chasing a moving target. I do think a nice Biz for Dummies Thailand book written from an angle of running a small business as an entrepreneur would be useful since this is the general make up of the majority of foreign owned businesses in Thailand. Hopefully with reader input this section of the blog will morph into what people find useful.

For me, three months of teaching morphed into a sales job, then a managment role.

A bad vibe from the business owner made me look for an alternative and I found it in the form of being a virtual worker. I am excercising my ability to do technical writing by working for a company in the US. My only requirement is my laptop & internet connection.

Working for someone else made the business of work permit easy ~ the business paid for the work permit & visa, prepared the paperwork, and had a young Thai woman do all the administrative work to keep me here.

WHAT FOLLOWS ARE SOME NOTES THAT DRAW ON MY EXPERIENCE TO EXPLAIN SOME OF THE CONSIDERATIONS OF BEING A ‒VIRTUAL WORKER” IN THAILAND.

As a virtual worker, having a visa/work permit to stay in Thailand is more problematic. There are a few options, but I stay away from the shadier ones. The most sensible answer for me seemed to be to set up a company and run my income through it. If you’re gonna run a bar, this is almost a necessity, but as a ‘virtual worker’ its basically just added trouble and expense.

Because I have a US passport, I can set up an ‒Amity” company (a company that iss allowed under the Treaty of Amity between US & Thailand). This allows me to have a company that I can own 100% – indeed, it requires at least 51% US citizen ownership.

The problem with Amity company is that:

1. It takes 3 to 6 months to set it up
2. The cost (using a service provider) runs to about 100,000 baht (almost US$3,000)
3. The paperwork involved in the setup is daunting.

The alternative is to set up a Thai Limited Company. The biggest problem with a Thai Limited Company is that the majority of shares need to be owned by a Thai citizen. If your Thai citizen owns at least 61% of the company, no justifcation of means is necessary (in other words, your bar girl buddy could be the owner if you REALLY thought that was a good idea).

If the Thai citizen owns between 51% and 60%, they have to supply paperwork to show that they have the financial means to have purchased those shares.

When I worked in Australia, that would have been funny – we set up a company with two shares @ $1 each.

But to qualify for a WORK PERMIT, you need THB 2 million (about US$59,000) paid up capital for each work permit issued. So your Thai shareholder needs to be able to demonstrate that they have at least 1 million baht available for investment.

(For those currently counting on their fingers and toes, you need 4mil for 2 work permits, and 6mil for three).

Obviously, control of your Thai Limited Company would be a concern. There are ways to deal with it, but I’ll leave that to someone else to discuss.

For setting up a Thai Limited Company:

1. It takes 10 to 21 days to process
2. The cost is about 60,000 baht (including work permit appllication, government fees, etc… about 60% the cost of an ‘amity’ company)
3. You need at least 7 shareholders. If you have (say) two… you and a Thai friend, the Accounting/Legal Services company will supply the other 5 at no extra charge.

If you don’t have 2million baht to put into your company, one option is to put in the cash that you have available, (for example, 250,000 baht, and create a loan account for the balance (1.75m baht) from the company to you as a shareholder. This is obviously skirting both the letter and the spirit of the law, and may cause you a problem in an audit. A reasonable solution is to use your income (initally) as paid-in-capital to repay the loan.

For people who don’t understand accounting, I am probably already getting confusing. Those who understand will realize I am oversimplifying, so I’ll stop there.

I strongly suggest you hire an Accounting/Legal Services firm to help you set up your business if you aren’t intimately familiar with Thai business law. The cost is reasonable and it will help you (a) stay out of trouble; and (b) cross the inevitable language barrier.

As an example: if you plan to work from your home (as I do) and you want to use it as your registered business adress, and you are in an apartment building/condo, you will need written permission from the building manager/owner. A fairly arcane type of law, and an issue fraught with language difficulties. The Service will help you avoid all the sandtraps – or at least get through them.

So, if you are a ‘virtual’ worker, you now have a company, a stream of income and (presumeably) a work permit. So far you’ve invested between 60,000 and 150,000 baht to get set up. There’s still a couple of minor points.

First is your visa. You have a work permit, so you won’t have any trouble getting a non-immigrant B visa, but you have to leave the country and return to get it (or get it in your home country before you move here).

If your company has no Thai employees, and you travel to another SE Asian country for your visa, you will probably only get a 90-day visa. You will need to leave Thailand every 90-days to renew it. Added cost.

If you go to Australia, NZ, UK, US you may well get a 1-year visa.

The only way I know to avoid this hassle of the 90-day visa is to have at least 4 Thai employees. When you take bar girls into account, this may be easier and cheaper than it sounds at first, but when you really ponder it, you’ll find its not a great option.

First, and surprisingly to me, workers in Thailand have rights. When you start paying them, you have to pay tax and provide benefits. Also, if you teminate employment without cause, you have to give notice or pay in lieu of. As an example, if somone works between 12 and 24 months, you need to pay 3 months notice.

If you don’t pay it, and they file a complaint, you will lose.

So, unless you legitimately need the staff, don’t go this route. Travel to a neighboring country every 3 months. Learn some new culture, like the difference between hookers in Phnom Phen and Macau.

Also, you will now have to charge Value Added Tax (VAT). It is currently 7%, but tipped to rise to 10% in the near future (subject to the political stability of the governement). Either you or your customer has to wear this tax.

Of course, you will need to pay income tax. If you think you’ll avoid this by running your business at a loss, you’ll find your work permit revoked.

Smitty has used the blog before to moan about how difficult Thai banks can be. Setting up a bank account in Thailand can be an adventure.

Whether its banks, immigration, or the cable TV company, Thais want lots and lots of photocopies to prove lots and lots of things. I had to supply more paper to get a telephone in my apartment than I did to get a mortgage when I lived in Australia. Again, an Accounting/Legal Services firm can reduce the Admin burden for you.

All in all, the costs of set up and operation, VAT, personal income tax, and travelling out of the country every 90 days mean that a virtual business in Thailand are significant. I don’t think I’d undertake it for much less than US$40,000 per year in income. Hopefully you’d be aiming at a whole lot more.

My teacher was recommended by a friend who I met when I first visited Thailand in 1989. He reached a level of Thai fluency where he was translating documents for a high-level Bangkok firm-he was the only farang employee. The teacher was a middle-aged woman I have deep respect for: she was part Mon (hilltribe) and used to teach in the Thai school system-still had ties with a school in Mae Hong Son, up north. If any of her students gave her attitude she had a simple suggestion: come with me up to MHS, you can sleep on the bare floor for a few nights and help me with my work. See how you feel after that. She claimed she cured one student’s back problems this way (she also taught the UK ambassador in the 80s and when his Thai writing was ‒mai suai” (not beautiful) she whacked him on the wrist with a ruler, the woman has NO FEAR).

But you don’t care about all that. As my friend used to say: ‒Yeah, I know about the PUSSY” cuz that’s the main focus for just about everyone who wants to live in Thailand (or the few urban centers they view as ‒Thailand”). Now, I have nothing against Thai pussy. Unless it’s my face. It is one of the great benefits of life in Bangkok, and as that’s where I lived for about a year, and that’s likely where yr planning on locating yr home/biz/dick then let’s talk about that, shall we?

Bangkok is the urban center not only of Thailand, but of about four countries in the region. It is vastly different from most places in the country, and while you might not care, you should understand that a lot of Bangkok residents come from parts of Thailand where Bangkok (also Pattaya, Patong Beach, Koh Samui) at first does not compute. Imagine you travel to a city in your own country where people three-meters-tall walk around, and these people will happily pay one hundred euros for a ham sandwich. Would you not move there and set up a sandwich shop? While this may not be a perfect analogy, it serves the purpose. OK, the 3-meterons are jerks. They scream and yell, get plastered on rubbing alcohol and fall down in the street. They call you names. They cause all kinds of problems. But at the end of the day you sold ten sandwiches and pocketed a thousand euros. Ergo, fuck ‘em.

And if you DO fuck them…well, imagine if they pay a thousand euros for that. And the 2.5-meterons from specific planets pay SIX thousand euros. Now whaddaya do?

I’m specifically NOT addressing crap like visas/work permits/finding an apartment because I want to take you by your ankles and turn you upside down and shake you until your pocket change and keys fall clanging to the sidewalk, while I yell ‒WHY do you want to live in Bangkok??” Well, as long as you’re upside-down and I have your attention, let’s look at some possible reasons.

You can get great street food for extremely low prices. The city’s exotic but with enough touch-points so you don’t feel completely alienated. There’s a farang community, and email helps you to keep in touch with folks ‒back home.” Competent medical and dental care is much cheaper than in Western countries. And you will never ever need to knock the icicles off your roof.

Long story short: I lived and worked in Hong Kong about 5 years, then someone I used to work with there who’d relocated to BKK offered me a gig there, with a Thai company. I spent a year in BKK waiting for said company to get their act together before another HK company offered me a job, I moved back to HK, where actual business is conducted in a competent fashion. And this is a strong point: if you expect to live and WORK in Thailand, work is rather different from the West (or Hong Kong/Singapore/Taiwan/Korea/Japan).

Fundamental competency in a Western-sense is a big problem for farang living in Bangkok, because it’s not to be expected. Sure you can get a great flat for relatively low rent, but learn what the term ‒fai dap” means. Be well aware that the security guards who salute you when you arrive with your evening’s date are not there to serve you, no matter how much you tip them. In Bangkok, Things Don’t Work and it is expected and understood that everyone knows they Don’t Work. Farangs who pound on tables, yell and turn red when Things Don’t Work cause loss of face for everyone and are a real pain in the ass (far better to smile no matter HOW much it hurts). People laugh and joke when things fuck up in Thailand, and they WILL fuck up. The most successful farang in Thai-life are those who can partition their brains (like a hard disk drive) and keep their core competencies intact, then shift to the ‒mai pen rai” operating-system when necessary.

But let’s get back to the PUSSY, because if it ain’t on your mind, you’re not reading this and I am wasting my time. Towards the end of my stay in BKK I had acquired three ‒girlfriends” who would come over on a rotating basis, plus freelancers (pinch-hitters) when I felt like it. THAT part of Bangkok works well, but I reiterate the advice several more experienced gentlemen told me early on: tell ‘em upfront: ‒I’m a butterfly.” Right at the beginning, let them know you’re gonna be banging other Thai girls because that is YOUR NATURE. This does not absolve you from certain other conventions (it’s best practice to avoid causing ANY Thai to lose face). If you’re banging bargirls, try not to take another girl from the same bar while yr main gal is still in their employ (freelancers aren’t as concerned, hell, they may well suggest they BRING their pals). But, if it is in your nature to be a butterfly, and you state this upfront (politely of course)-they can’t very well change your nature now can they? This will help deflect attempts towards guilt-trips, wee-hour drunken poundings on your door, demands to go home and meet the family in Nakhon Eastjesus, and a lot of the stuff that farangs seem to get into. It is NOT a Judeo-Christian environment you’re dealing with here. But don’t think that Thai women (who I adore for several highly different reasons) don’t know where your guilt-buttons are, or won’t push them to suit their purposes.

I could go on, but I suggest no one make the decision to ‒move to Thailand” lightly. I did move to Bangkok, and I thought I knew what I was doing after spending months traveling through all parts of the country and visiting at least 3-4 times a year during my years in Hong Kong (and the year I lived in Tokyo, but that’s another story). But I failed in my attempt to become a working Bangkok resident. I tried, I had a great time, I failed, I survived, I’m lucky.

I’m glad I lived there, and indeed, may do so again in the future. The number of farang living in Bangkok (and other cities) has increased steadily since I first visited and so has the number of tourists. I believe this exposure to increasing numbers of farang has helped spark much recent Thai nationalism, conflicting and bizarre laws against farang investment, farang residency visas, farang ownership of property. MacArthur famously described Japan as a ‒nation of twelve-year olds”-sometimes I think Thailand is a nation run by nine-year-olds.

Farang can and do move there and have a great, successful time. Other farang move there and fall into one or more yawning pitfalls: the ‒girlfriend” who WILL fuck you over royally, alcohol and/or drugs leading to misery/insanity/jail/hospital/accident/death (not necessarily in that order), or an increasing rage at the non-functioning areas of government and society that drive them over the edge. A good book to read is ‒Thailand: Culture Shock.” But, prepare for surprises.

Some pointers:
1) If you do move to BKK, have a backup plan. What happens if it doesn’t work out for whatever reason? I was lucky because my backup plan happened organically, but don’t count on luck. Give it a timeframe-say, a year. What happens after that? Have a plan.

2) Learn as much of the language as you can. If at ALL possible, go to a language school where they teach you proper, polite Thai. Of course you can learn bargirl-patois. And when you use it, every Thai will know this. Proper, polite Thai is a powerful weapon in Thailand: if you can address anyone, from a street tout to an immigration officer, correctly and politely, you give them face and gain advantage. If you bark at them using slang you learned from Noi at Pussy Galore, you give a different impression.

3) In dealing with officials, dress politely. I don’t care if it’s the hot season-look around the streets of Bangkok, how many THAI people do you see wearing shorts? It’s not proper to show your legs. Yet I’ve seen farang go into immigration offices (or, the mind boggles, Buddhist temples) wearing tank tops and shorts. If you’re at the beach on Samui, fine, but improper dress really annoys Thai people. Of course the neon-lit streets of Pattaya are a different story-how could they not be?

4) If you go into Thai life with the firm belief that the Western way of doing things is Always Right and the Thai way is often inferior, incompetent, and Just Plain Wrong, you will suffer. I’m not saying that this belief doesn’t have some truth to it. I’m saying that if you’re not willing to be flexible you will experience aggro that may not be necessary. Thais are flexible people, and I’m not just talking about Oi who you met at the Biergarten on Soi 7.

5) Remember that Thailand is a developing country which is fundamentally agricultural and ruled by a corrupt elite whose positions are dependent on a military elite. I’ve told people this for years, but somehow, after the coup last September, I’ve found more receptive ears. However, that coup was bloodless-in the coup of May 1992, the military gunned people down in the street. A horrified journalist at that time told the Bangkok Post: ‒I never thought I would see Thai people kill each other like that.” (background: http://en.wikipedia.org/wiki/Black_May_%281992%29)

Thais are generally gentle and sweet people, but when they snap…be aware that violence can and does happen in Bangkok, often in the wee hours when people are drunk and/or messed up on yaabaa. People go ballistic if a condom breaks, but those same people may well get batfaced and go stumbling down Sukhumvit straight towards a group of katoey-pickpockets, football-hooligans or Songkran revelers who’ve been pickling their livers since noon. Which is more dangerous? Accurate risk-assessment is a virtue in Thailand. And getting physically violent with a Thai (male or female) in public, is best avoided.

All this is just my unedited thoughts on a Sunday afternoon. But I have known people who’ve done very well in Thailand, others (like myself) whose business plans have not worked out and have relocated and are doing well, and some for whom moving to Thailand was a slow slide into impoverishment, misery, forced relocation, you name it. How far can you slide?

A couple of years ago, the US and UK embassies pooled their figures and found that a total of 600 of their combined nationals had been reported dead in Bangkok during a calendar year. They decided to liaise with the police, and compare figures.

The cops reckoned that over that same period of time, about a hundred farang deaths (of all nationalities) had been reported.

Mai pen rai.