www.CostaRicaTicas.com

Good luck???? Sounds like you are trying to kick me in the side.

Why am i posting? I'm bitching plain and simple. And, trying to give others some real-life experience about starting a business in CR. Isn't that what a forum is for? Free thought and expression. I thought that was what this section was for??? No, I am still not looking for general business advice. This is not a business consulting web site. LOL.

There are a few members on the board that have similar experiences and constructive criticism. I AM LISTENING TO THEM. But, most who have commented have ZERO experience and are only arrogantly throwing out their opinions - or worse - trying to kick someone when they are down.

So, now your advice is to do more market research and take heed to the age old fact that most businesses fail in the first year??? Thanks for your two colones. I've been doing research. I also am not failed. I still have prospects and nowhere near bankrupt. I'm just missing my numbers horribly. In my opinion, missing sales forecasts is equivalent to not succeeding and yes failing in that area.

Finally, who are you to tell me when, where and what I can post about? If you don't like this thread or my reaction, then you can choose to ignore it.

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http://TipsCostaRica.com for pratical advice on living in Costa Rica.
In order to write about life, first you must live it! - E. Hemingway.

OK, you've convinced me.

I was sincere when I said good luck. The more I read from you the more I can see you're going to need it.

Finally something constructive... your experience with law isn't a pure tico thing. It is an experience with the latino civil system handed down by Spain. I don't think it would be different anywhere else whether its Mexico, Nicaragua, Argentina or Spain itself. The problem is - we come from an Anglo system, where I believe the law is much more fair and flexible. As Americans, our weakness isnt' that we are just doomed in front of the law in CR. We don't understand it. We don't understand who, when or how to pay "gratis" (bribes) to the right people to get anything done. Bribes are essentially for success in the latin legal system. The business strategy book I'm studying right now, has a whole chapter on how to handle "gratis." If you need to get anything done legally in CR for your business, volumes of paper and stamps and what have you are required. You can't even buy a car here without a lawyer to get it properly registered and notarized.

There is also a section on what they call "fijadoros" or fixers. These are people (strong hands) you need to hire to push shit through the system or just make sure things happen on time. This all exists in America, but is the exception, rather than the rule (I would hope).

FYI... here is experience for those interested. The fiscal cycle is not changeable. It starts on Jan 1. So, you can't modify your fiscal cycle (as far as I know) to close your year in June or Sept or March like in the states. What is the effect? December is a completely dead month for business. No one has any budget and everyone is waiting for January for new budgets. This only coincides with the tourism cycle (unless your business is in tourism) by chance. However, everyone should note that December is essentially a Siesta. You have to also pay your employees twice, so everyone is basically screwed.

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http://TipsCostaRica.com for pratical advice on living in Costa Rica.
In order to write about life, first you must live it! - E. Hemingway.

Paco - I will give you three examples of gringos trying to make a go in CR - for added perspective. You likely made a wise decision. First, if you don't have a big savings cushion. Don't try it. Inflation is crazy here. So, if you've done some kind of budget and think you can live X amount of dollars per month, it is likely already outdated. Give yourself a big, big cushion. I, fortunately, busted my ass off in the corporate world for 15 years and was able to arrive with a big cushion.

I have some time. Here are some of the more unlucrative business models I've seen gringos bring to CR:


1. Making money off sports betting. Case in point - a young guy arrived several years back with the idea of making money off sports betting. He used to hang at the SL and frequently talked to people in the fold and ALWAYS TOUTED that he had an unbeatable system. One sunday morning, I arrived to get a good seat for NFL and he was already there. He usually arrived with notebooks and newspapers and talked about parlays and other crap that is foreign to me. This day, he was wreck. He had been up all night doing BLOW and drinking and nearly had lost everything. One week later - he got mugged by the dealers he was buying drugs. They stripped him naked and took everything. He then disappeared. I will assume he called daddy in the states and got a "bailout" and a ticket home.

2. An old neighbor of mine. Came down to live with his russian mail order bride (another story). They were trying to get her visa from CR, because it would be next to impossible from Russia. Whatever!!! Anyway, this guy claimed to be FREE LANCE WEB DESIGNER. He bragged like crazy about this skills. The problem is - he was a con artist and used to walk around the neighborhood begging for money to help him get off the ground. "I just need $100 to buy software or $300 for this or $7 for that". I tested him once by saying that I had a little JAVA project for which I could pay $6 per hour. He claimed to be a pro. However, every time I got into the details of JAVA and my requirements, he would waffle. He wanted to be payed a fixed price. A percent upfront and then a percent on completion. I told him to buzz off.

He worked the entire neighborhood and even the plaza across the street for handouts. One day, he was frantically ringing my bell. I answered reluctantly. He claimed his debit card literally broke in half (it was in two pieces in his hand and likely an old expired credit card) and needed 7,000 colones to pay his electric bill. His wife was with him crying. That entire day, he wouldn't leave me alone. So, I finally gave him 10K not to pay off his bill, but TO STAY THE PHUCK AWAY FROM MY HOUSE.

He couldn't pay his rent and had some elaborate scheme setup with PayPal whereby he was paying his Tico landlord through a PayPal card (which never worked). He borrowed $300 from my brazilian neighbor who is a black belt in karate. He couldn't pay and my neighbor applied pressure. Finally, this guy gave him his Playstation 3 in lieu of payment. The wife of my neighbor (an American) was livid when she found out and took it back to the states and sold it. This guy was PISSED OFF THAT SHE SOLD IT. Claimed all of his critical business files were on it. I mean - who stores business data on a PS 3.

Anyway, this guy lived on scratch. If he ate one meal a day, he was lucky. He used to come over with 20 colones to buy a couple of bananas to tide him over.

He eventually moved because he got forced out. Before he moved he had another gringo roomate move in. He charged him $400 and after a week said - we need to get the phuck out. Yes - we are being evicted. He moved to Belen. I learned later that he used the $400 to pay his first month in his new place.

3. Make money off importing cars. This is the biggest money loser of them all. The guy I'm thinking of was able to successfully import one car. He had two lined-up but the other buyer bailed out. When the first car arrived, the second buyer bailed-out. Guess what car he is driving? The one and only car he was able to get into the country.

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http://TipsCostaRica.com for pratical advice on living in Costa Rica.
In order to write about life, first you must live it! - E. Hemingway.

[quote="Chi_trekker" Good luck???? Sounds like you are trying to kick me in the side.

Why am i posting? I'm bitching plain and simple. And, trying to give others some real-life experience about starting a business in CR. Isn't that what a forum is for? Free thought and expression. I thought that was what this section was for??? [/quote]

EXACTLY, but in a second thread now you are slamming anyone who questions your logic or actions

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But mama, that's where the fun is

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I feel very fortunate to have started and built 2 very successful business operations in CR. It wasn't easy at the beginning, and it took a lot of time, a lot of homework and a good chunk of change. But at this point (4 years into it) - I'm happy with the results.

I have a tico business partner who runs the day-to-day operations of one company. And I have a property management company (owners are from England) who take care of my real estate rentals. To date - both are doing very good. There's an occasional bump in the road, but nothing major.

Chi - I wish you much luck in any/all of your future endeavours. Business is business, the world over. It can be very trying at times, no matter where you are. But when things work out, it can be very fruitful. Sorry for your misfortune(s).

Respectfully,
MG

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You ALWAYS have an option ....... "NEXT" !!!

MG,

Thanks for the post. You are correct that business is business. I'm not being patient and the world is in a recession. I'm using the holiday time as a quarterly break to re-vamp the plan.

Best of success... sounds like you made-out. You have found a way to do business with foreigners, which i think is key in Costa Rica. The locals simply don't care about it much.

_________________
http://TipsCostaRica.com for pratical advice on living in Costa Rica.
In order to write about life, first you must live it! - E. Hemingway.

OK,,, Read the whole post,,,HAHA.. I have been in business 26 years in the US and 95% of my business is over seas.. Business plans, marketing plans,, etc.. are all good on paper..
I started 26 years ago and there was over 50 other manufactures of the same type equipment.. Everyone said it will not work, you are underfunded.. They was right I was underfunded.. They said (Banks) your business plan is not good enough, and does not match what is the norm.. They where right...

But 26 years later, there are 4 manufactures in the whole world like me,, and 3 others.. The other 3 are barely surviving, while I am turning away orders...

The difference.... I was too stupid to quit..... Worked around the clock, sometimes just me... You have to ask why 75% of business fail in the first year..?? Because 95% of the people running them, said I am not meeting my projections, I am not making the money I am suppose to...etc...
There where times when I would have made more at McDonalds, if you figured in the total number of hours I worked...
If you want to succeed you can..... You can have anything in this world... IF you are willing to pay the price....

Great advice Stillwandering3 and I get the point...but at some point someone else had to act.

You could have continued to make McDonalds wages forever, until:

1-Someone began looking for the product and chose you.
2-Someone switched their orders to you.
3-Someone increased their orders from you.

Someone had to make an order(s) for your product or you're hard work would have not mattered.

Do you know the reason the person(s) decided to begin ordering or increasing orders from you?

Johnarizon..

Yes you make good points.. Who acted was me.. I pushed as hard I could, did the best I could in the salesman job, went to shows, and always produced a good product, but more important, if there was a probelm always stood behind it and made the customer happy.. Sucked at times, but you need the customer.. My business is very different from the post subject.. But if you are willing to make calls, keep pushing and digging, you will succeed.. 99% of the time.
Why the orders have increased, is the competion, did not care about the customer and only quick cash.. I cared about the good name..
I am not a business expert, but succeed in spite of my many mistakes, just because of hard work.

Well congratulations.

Sounds like the customers finally noticed your efforts and adjusted their orders accordingly.

I hope you are reaping the benefits of all that hard work by enjoying life today!

& Maybe some of the CR gals will heed your advice and work hard toward giving us better product yea, maybe

Greengo,

Nice quote from Thomas Wolfe, from his book "Look Homeward Angel." Haven't remembered that for a while. It does kind of date me though.

3P

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CR LOS or PI Come horny, Leave Happy
Being 'over the hill' is damn sure better than being under it!
I was always taught to respect my elders, but it keeps getting harder to find one.

Chi_trekker clearly recognizes the significant differences between Spanish based legal system and the English based legal system. While critically important, I think it goes beyond just the legal system.

This may be an unpopular thing to say particularly if you are a recovering Roman Catholic, but I believe the culture of Costa Rica, including the business culture, is based on the historical corruption, exploitation and arrogance of the cast system within the Roman church and its number one advocate of colonial exploitation, the Spanish Crown.

It created a culture throughout Latin American where the “chorizo” or “gratis” is not thought of as wrong -- it is a way of life. It also created a culture of duplicity: prositution is okay but abortions are a mortal sin. The culture is remarkably similar in any country where the Roman church dominated.

There are some keys to creating an healthy and productive economy which supports and sustains small enterprises:

. 1. Countries which observe the rule of LAW;
. 2. Protection of private property rights and intellectual property rights;
. 3. Available and reasonable credit; and,
. 4. An educated work force which has a work ethic as written about by Max Weber over 100 years ago.

The U.S. has less than five percent of the world’s population yet produces 28 percent of the world’s economic output; Latin America has almost nine percent of the world’s population yet produces less than six percent of the world’s GDP. I don't think anyone would argue that Latin America is primarily Roman Catholic.

Indeed all of Great Britain’s larger off spring (Australia, Canada, New Zealand and the U.S.) are prosperous and highly productive. Many of the former enclaves of the British Crown such as Hong Kong and Singapore are economic beacons. There are some notable exceptions such as Belize. While not super poor it is not a standout either.

Puerto Rico, at the risk of getting into a debate over the minutiae and nuances of the unique role PR holds in national governance, is an independent commonwealth freely attached to the United States of America.

Under the influence of U.S. laws, rights, banking and educational systems, Puerto Rico has flourished. There are several other factors including its tax structure, military protection, etc. Nevertheless it has been a standout. The GDP of Puerto Rica is $25,000 per capita (see above: the rest of Latin America has almost nine percent of the world’s population yet produces less than six percent of the world’s GDP).

Just some thoughts. I brought this up with a professor of economic at UCR and he advised me not to write or say these things in public. It would be heresy in this nation.