Affordable city to start bar business ?

Whether you're a working stiff or a business owner yourself, this is the place to discuss all aspects of financing your drinking habit ;-)

NO BUSINESS SALES HERE PLEASE, WE HAVE A SECTION FOR THAT IN THE CLASSIFIEDS.
User avatar
truffledog
Expatriate
Posts: 1662
Joined: Sat Mar 07, 2020 4:54 am
Reputation: 1030
Italy

Re: Affordable city to start bar business ?

Post by truffledog »

My vote goes for Kratie. There isnt a lot of barang business yet, small expat comunity, a few tourists.
work is for people who cant find truffles
User avatar
AE86
Expatriate
Posts: 954
Joined: Mon Oct 06, 2014 8:36 am
Reputation: 139
Japan

Re: Affordable city to start bar business ?

Post by AE86 »

Frankly in my view, it's much better to focus on making the business successful rather than focusing on being a pioneer or what have you.

If you have a potential client base, then market saturation is much less relevant if you're the best in town.
-insert signature here
User avatar
phuketrichard
Expatriate
Posts: 16888
Joined: Wed May 14, 2014 5:17 pm
Reputation: 5785
Location: Atlantis
Aruba

Re: Affordable city to start bar business ?

Post by phuketrichard »

if ur going to start a business anywhere in asia, se asia , ( or for that fact anywhere) target the locals
NOT TOURIST>
the past 2 years confirms this
In a nation run by swine, all pigs are upward-mobile and the rest of us are fucked until we can put our acts together: not necessarily to win, but mainly to keep from losing completely. HST
User avatar
AE86
Expatriate
Posts: 954
Joined: Mon Oct 06, 2014 8:36 am
Reputation: 139
Japan

Re: Affordable city to start bar business ?

Post by AE86 »

^^I'd actually argue for the opposite at the moment. Now would be a great time to start a business aimed at tourists due to all those wanting to get out and travel.
-insert signature here
User avatar
AndyKK
Expatriate
Posts: 6448
Joined: Tue Jun 13, 2017 7:32 am
Reputation: 2248
Great Britain

Re: Affordable city to start bar business ?

Post by AndyKK »

How much are you prepared to lose?
The OP was talking about supporting his retirement funds, many of you will have different ideas about that aspect.

Firstly, I suppose is to make sure that thought is to maintain a strong supportive cash source for when the day comes. If we were all that lucky life would be easier when that day arrives, when the full-time working life comes to the end, and now it's time to live on the private/company/government pension that we may have contributed to over so many of our working years. In today's reality the monies you thought you could get by on, just may not be enough, or if you like myself and many others just aren't ready yet to give up work, more because you want something to occupy your body and mind.

"But a bar?" Are you sure that is the right choice of business for you? Are you sure that will pay you a living, or even part living, does running or owning a bar fit in with your lifestyle? There are so many questions to ask yourself.
Hence the members of the forum and expats with the sayings of "How much are you prepared to lose?" Also, please, all the (very few on the whole it maybe said) expats who do run successful bars don't jump on my back in your defense! I tip my hat too you whom have made this type of business a successful enterprise, more so if it funds your lifestyle, and I agree there are a few of you who have made it.
Some years ago, I rented a small place that run off the main street of Koh Kong, prime locations will always be the main street, but that’s where all the Cambodian businesses will be, and if you're lucky to locate on the main street you will pay the premium price, you may also think that would also give you a premium return on your investment, but don’t forget you are living and working in the Land of Wonder, and the landlord is the one with the most successful business outlook. Even if you secured a rented property at a fair price in such a location, you will have one month's rent in advance (minimum) it would be more likely a year’s contract needed to secure what may be considered as a prime location.
My rented little place, and I mean little 4x6mtr. Typical concrete Khmer one level building with one main room with aircon, very small backroom and western toilet and shower. Outside on the street was 4x2mtr space where I could put a little seating. I originally had the idea of opening, that of small clothes shop mainly for western expats, but my longtime friend, and clothes buyer over the border in Bangkok Thailand was to move suddenly to Europe, she was well experienced in the clothes industry, with a good client base around Thailand and overseas. Also, there was the cost of import taxes too to be considered, that would be unavoidable to do if you were opening a business, so you would have to deal and negotiate with the authority of the borders.
Anyhow, this was still early days, and I was more occupying myself with what part of my life’s trade had been, and decorating the place. Also, it was to be my new home has where I was living at the time, the landlord was based in Phnom Penh and would not register me with the local Sangkat.
So, I spent a little money on paint and decorating materials to start with. Previously the shop was a hairdresser’s and I could not live in a pink room. Yeah, there was the word “bar!” It was suggested to me by a few expats, who lived in the area over a few years, thinking a new venue choice would be nice for them and an income for myself for my troubles. So, I invested in a freestanding sink for the backroom and had the local metal works make me some shelving and worktops, also the bar, and a canopy out front to keep the sun and rain off the customers outside seating. To furnish the place I had a trip down to Sihanoukville, Koh Kong was very sparse to say the least on buying furniture at the time. I also bought a new fridge freezer, ice box and bottle cooler, plates, glasses and cutlery. I installed an LCD TV and music system, not forgetting the all most important Wi-Fi paying in advance for the year.
The next challenge was to open the business legally, that is where I found Cambodia to be a country full of red tape, duplicate paperwork, and so-called authorized people of the relevant government departments saying to me “sorry Sir I do not know”. You may find your time is running about in the mid-day sun trying to get somewhere. It will come right in the end. One thing also to consider is the most important business license, the price will, or at my time of applying would vary from place to place, such was the cost, in Phnom Penh a license may cost $1000+ in Koh Kong the equivalent would be $30 per year.
Anchor beer called by and provided the bar signage, and put it up for free, providing I bought their beer.
So, you’re up and running.

Image

Being the owner or running a bar is not for everyone, a saying in English, possibly slang “its not my cup of tea”.
Location they say is everything, and so are your customers. Without either you have nothing.
But firstly, this was my new home, the extra expenditure being added seating and extra glasses and cutlery, bottle cooler providing cool beers for the customers, and the most important paperwork to legally run a business in the Kingdom.
Like the OP is suggesting in opening this new thread, he is in hope of making a little money to support his own venture. Keep an open mind, and do not think of relying on a steady income from your efforts and new customer base. You have to put a lot of effort into getting a bit of a small return.
50 cent beers will not pay the bills unfortunately, so like it is suggested food will also be provided in the bar, so now you have a bar restaurant, well that is after you make the menu, and can you cook yourself, or are you going to employ someone.
I myself am not a professional cook, but I can cook food for myself and family, so how difficult can it be to cook meals for a few paying customers.
Firstly, the customer must enjoy the food, that is if you expect payment from, he or she. I am also having that of a firm belief for the value for money.

Image
Pork marinated in whisky overnight

Image
Pasta

Image
Fish

Image
Chocolate cake with a whisky or rum drizzled dressing

Then it was later another bar owner was telling me how he was missing the Indian curries he would have, before the large exodus of Sihanoukville.
Now there was a new idea! And soon I was needing help in the bar/restaurant if I was to cook Indian dishes, I needed someone to serve them and drinks, that’s when I first met Nak and offered her the job in working with me.

Image
So, the doors we’re widely open on the new food line

Image

Image

Image

Image
Homemade samosa

Image
Pomegranate and potato curry, I found this to be one of my favorite dishes when spending time in Rajasthan India. Once again with homemade chapati

Image
Potato

Image
Hot pork with pickles

Image
Chicken curry

Image
Hot chicken curry

It was suggested to me also to have a curry night once a week, I took that idea on board, and it worked well, having a good handful of local expat business owners coming round on Monday nights for a meal of chicken curry, samosas, chapatti and popedom, accompany sauce and a free beer or soft drink for a price of $5 per head.
I was also surrounded by 5 massage shop’s and some of the girls would be regular visitors when not busy with their work, joining in with conversation with customers and receiving a drink or two for their company.
Now you will be wondering why it didn’t last? It was not the cost, because even though I never had a wage. Nak was paid every month for her work.
The business paid for itself, so I had free rent and bills and food, plus stock.
But what brought me and the business to an end was the expats themselves, the ones that first suggested about opening a bar, they wanted things, such has beers and food for free, you could very easily say that some we’re just vindictive, wanting to make troubles just for something to do. Sad people overall.

I offered the opportunity to anyone who wanted the business, lock stock and barrel, all the fittings and stock, also help with gaining paperwork needed and assistance running the place for one month free of charge, with the landlord who was the chief of police in the town offering 5 years rent, granted by a small increase in rent monies with a total cost now of $120 per month. My offer of $600 for the business was not taken up by anyone. So, the doors closed after 3 years of business.

The place became another message shop.
Always "hope" but never "expect".
User avatar
AE86
Expatriate
Posts: 954
Joined: Mon Oct 06, 2014 8:36 am
Reputation: 139
Japan

Re: Affordable city to start bar business ?

Post by AE86 »

^^Nice post, and now you know, there is no limit to what customer's want.

There is however, a limit to what they will pay for.
-insert signature here
User avatar
AndyKK
Expatriate
Posts: 6448
Joined: Tue Jun 13, 2017 7:32 am
Reputation: 2248
Great Britain

Re: Affordable city to start bar business ?

Post by AndyKK »

phuketrichard wrote: Sat Feb 19, 2022 7:24 am if ur going to start a business anywhere in asia, se asia , ( or for that fact anywhere) target the locals
NOT TOURIST>
the past 2 years confirms this
Could not agree with you more Richard, why would anyone in their right mind travel half way around the world to cater for their own people. There are answers to the questions, one it is surly the best idea to target the most people possible, that being the people of the country, also it may be that of a language barrier, making it more difficult to deal with Cambodian people. Or like you already know Richard; the fact of the matter is that Khmer people in general don't want to spend their monies with you. Even if your wife, girlfriend fronts the business, the Khmer in general won't buy from her because they know she is supported by a barang.
It's as simple has that.
Always "hope" but never "expect".
User avatar
AE86
Expatriate
Posts: 954
Joined: Mon Oct 06, 2014 8:36 am
Reputation: 139
Japan

Re: Affordable city to start bar business ?

Post by AE86 »

^^^Actually in my experience (having worked almost solely with Khmer customers for the past 12 years) it's actually been less to do with Khmer girls being supported by barang, and more to do with the product being "worth it". No one ever seemed to care about the "husband" barang on my end (or many of my other "barang business buddies with Khmer wives/girlfriends), in fact it was a good conversation starter most of the time.

At the risk of upsetting a lot of expat business owners here, I think the main reason most expat ventures here don't do well is because their product simply isn't that good. I'd say 19 out of 20 expat joints that are open for business here only get customers because they cater to the low hanging fruit (those who have no other choice) which is usually the worst customer to have. Not pointing fingers at you AndyKK, your food actually looks alright and you appear to have put some time and effort into your creations.

Now sometimes people rather focus on the more relaxed lifestyle, and I'm all for that (it's largely why I'm not working and touring the country now), but there is a minimum quality that needs to be reached in order to get customers in order to support cash flow, and often times expats don't bring their standards up to that minimum level for any "normal" paying customer. So...that's why little/no income.

Hate to break reality to some people but there's no substitute for minimum standards, and there's no shortcut to any greater rewards.

:|


***I should also add the distinction, there is a big difference between aiming your business at expats vs. tourists. Completely different demographic, so when I say tourists, I don't mean the expat community.
-insert signature here
Post Reply Previous topicNext topic
  • Similar Topics
    Replies
    Views
    Last post

Who is online

Users browsing this forum: No registered users and 275 guests