tim40
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Invest 150K in Baja Business?
Not wanting to hi-jack JZ's 100K investment post, I thought I would start a new thread asking the following somewhat related question.
1. What business would you start in Baja with a first year investment of invest 150K?
2. What location/city would establish it in?
3. What would make it financially successful over time? How much time?
4. Greatest challenge for success?
When searching for the end of your rainbow you only have until dusk....
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bajamigo
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In my opinion, the answer to point 4 is the labyrinthine tangle of rules, regulations and laws in this country, which, once untangled, permit numerous
other interpretations. This makes the other three questions moot. In other words, if you had $150k to invest, you might find most of it consumed by
legal services; I guess that's one kind of investment.
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capt. mike
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importing and selling durable goods.
believe it or not Mexico's consumable goods economy is growing, many are gaining "middle class" status and their disposable incomes are rising
proportionally. Familes in many places are gaining ground over the past subsistance levels and need/want nicer things.
i see it all the time even in small town mulege, i bring in a lot of stuff for my mexican working class friends that they cannot get locally, like
consumer electronics and small appliances.
everyone things these mexiacns are loor, guess what? - they aren't anymore. not rico, but they do quite well , have money and want vto buy nice
things!
formerly Ordained in Rev. Ewing\'s Church by Mail - busted on tax fraud.......
Now joined L. Ron Hoover\'s church of Appliantology
\"Remember there is a big difference between kneeling down and bending over....\"
www.facebook.com/michael.l.goering |
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tim40
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Bajamigo: We have certainly experienced some of this...but in our limited practical experience/opinion the 'rules and regs' can be
negoitiated....simply too many gringos making it work with varying degrees of success.
Cpt Mike: We see this everywhere (to include the mainland where we travel quite a bit). Not sure what the 'smaller business' solution would be to
make a viable business out of it.
So says me, FRYS is perfect for a number of cities. Possibly mega stores in Ensenda, Tijuana, Cabo and La Paz and small satellites in Mulege,
Loreto, San Felipe....etc..
When searching for the end of your rainbow you only have until dusk....
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toneart
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Tim40,
Quality of life...your life...is the important thing. I would settle into the area and community that you would want to live. Then live there for a
year before deciding to go into any kind of business. Are you married....have kids....in school? They are major considerations.
Get to know people, locals and also gringos who are in business. How's your Spanish? Work on it. Things will open up for you if you are known and
liked over a period of time.
What are you good at? It is not impossible to learn a new field, but doing what you know gives you a leg up.
Research the government laws, rules and regulations. Ask questions. You will be confused by the varied answers you get from bureaucrats and small
officials with a little bit of personal power. Sort through it. Find out what works from people in the know. You will not be able to anticipate
everything that can go wrong. Be sure to have cash set aside to grease your way through. That's the way it works.
Of course, be careful. There are many people who can expertly part you and your $150K. That advice is not exclusive to Baja.
If you are smart and lucky, you can carve an excellent life being in business in Baja. It is still a frontier with a positive future outlook. 
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tim40
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Excellent input Toneart. I (we) are very well versed in Mexico...the questions, more than anything, were to illicit ideas about what is missing (from
the eyes of all of us on Bajanomad) and, in essence, why?
Kind of like traveling any place in the world (to include the US)...when you look at an area with fresh eyes, you see opportunities differently.
When searching for the end of your rainbow you only have until dusk....
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bajaguy
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I'm thinking a "Trader-Joes" type of store in Ensenada would work just fine!!!!
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Diver
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OK then, how about mobile sewer pump trucks to empty RV's at campgrounds and on the beach ? 
Maybe a combination water, sewer, propane, fresh fish and veggie truck !! 
Or set up a wifi system in an unserviced area(s). There is a guy in La Ventana/El Sargenta that now has about 5 or 6 antenna locations and a few
hundred subscribers at $25-$30 per month. He started with a single antenna just a few years ago.
.
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bajamigo
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Bajaguy, there is a store in Ensenada that sells not only Trader Joe's-type stuff, but also Trader Joe's branded items. It's located along side the
Santo Tomas winery in town, and there's some parking.
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toneart
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This is probably smaller than a $150K investment, but I had an impossible search for foam rubber and tasteful fabric for recovering chairs. This was
in Mulege and Santa Rosalia. Also, fabric for tablelcoths, curtains and whatever else. The fabric store here leaves a lot to be desired. I also
couldn't find foam rubber to put on top of a hard mattress...not even the pads that are made for this, with the egg crate effect on one side. None to
be found in La Paz or Cabo either.
Boat accessories: lights, water separators, bilge pumps, good life preservers. There is a good used market for kayaks but try and find paddles. I had
to bring all of the above mentioned things from the U.S on my next trip.
Bicycle tires. Motorcycle tires.
Maybe you can find these things in Ensenada but that was too far away for me to come in search of these items.
Again, it depends on where you want to settle. Down here there are so many things you can't find. It just has never occurred to the locals that they
are needed. Go figure this: Mulege just got its first fish market this spring. 
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bajajudy
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Lotsa options
BUT forget about a book distributorship in Los Cabos
Doing business here is different. The rules are different. The entire government thing is baffling(a good accountant is a must!)
As I have told many people, we dont have any bad debts but we sure have some slow payers.
As an example or por ejemplo:
We had left some books at a local restaurant which was featured in the recipe book. We were in the restaurant on several occasions but never really
followed up on the payment. Finally, after 2 years I told one of the owners that it had been two years and that it was probably time for them to pay
us for the books. She laughed and said.....that is why we Mexicans have so many friends.....we all owe each other money. Now that was an eye opening
comment. We(gringos) generally avoid anyone we owe money to, right? And if someone owes you money, they are not still our friends after two years of
non payment.
SO I went by the next week and got the money for the 10 books and did what..............you guessed it, left them 10 more. We all laughed about
seeing each other in 2 years and that was that.
I relate this story because it is a very good example of how different our cultures are and if you are going into business here, be prepared to be
dumbfounded by some things that happen. Once again, with patience(probably the most important asset you can have if you live and/or work here) it all
works out.
I have always thought that shocks or a/c would be a good businesses here.
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flyfishinPam
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150K won't buy a lot of inventory. Then you need to think of a place to set up, marketing, setting up the business legally, etc. I think the best
idea is to buy an established business that's going for around that price. Importing/exporting is a bad idea, as 150K is not enough of an investment.
About the only thing I can think of would be something in the service industry. Perhaps helping newcomers get FM3's, information service and such.
I just had another idea, the construction industry is booming in Loreto and there's a definate need for a person who can coordinate and communicate
with homeowners who are building. If your spanish is good you would be a shoe in.
[Edited on 6-18-2007 by flyfishinPam]
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osoflojo
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If you want to leave Mexico with 1 million dollars, bring 2 million with you........
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kellychapman
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UV retardent screens or fabric.....I have run myself crazy looking for the stuff.....finally got some in the US...along with the water Mister that
gives you that wonderful spray outdoors.....just a thought...
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tim40
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Love the Trader Joes idea and even a whole food type store.
When searching for the end of your rainbow you only have until dusk....
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