Thinking to start a business in Ecuador, possible partnership.

Hello, this is my first post as I just joined the forum.
I`m a Canadian male in my early 30s.

I`ve traveled in Argentina, Chile, Peru, Ecuador and Costa Rica looking for a future place I could possibly relocate to and start a business. For me I feel that Ecuador is the better place, cost wise as well as the safer feeling than in San Jose and Lima.

My business ideas are to open a small backpacker hostel. But I also have experience in restaurants. I have thought of opening a small bar, I know there is a good sum of money to be made of that but dealing with drunk idiots is a headache I`d like to avoid.

A hostel sounds like a good option because I could also live there, cutting the cost of renting. Any problem that happens, I`d be there to take care of it myself. I wouldn`t mind doing the cleaning, dirty work ect. And hiring a local hand would be appealing as well.
I`m aware that there is a high and low tourism season and am prepared to deal with this. Also it`s a competitive market.
Not sure if I would want to do this in Quito or Cuenca.

what I am sure of is that I would like to share this opportunity with another expat in Ecuador and split the costs.


So I am seeking advice, pros and cons, issues to consider, legalities, ect. And if I can find a partner that shares similar interests, please feel free to message me with any ideas.

thanks in advance.

Hello burntumber.

Welcome to Expat.com! :)

Wish you all the best in your project and your research.

Thank you,
Aurélie

Burn, the hostel business in Quito is low margin, extremely competitive and with high startup costs. I suggest you get a job managing an existing operation to better understand the local market and keys to success.

Bars can be profitable if it develops a reputation for being the "hot" spot which is fleeting. You would need a local partner to be the "face" to generate interest.

Thanks for the replies.

I have done some hostel work before. Night Audit, reception, and also the cleaning. I`ve also stayed in a great number of hostels throughout Latin America, North America, Europe and Australia.

Of course the business is a big start up, which is why I`m looking for a partner with similar interests. I willing to put in the hard work.


Another idea I had was to rent a place with 3 or 4 bedrooms. Furnish the rooms and house and sublet to longer term travelers.

This is something I`ve done in the past. In Quito, Lima and San Jose. Renting a private room from the person with the lease.
In Quito in particular, I rented a room near U central. $250 per month. He was renting out 3 rooms at $250 each. But paying $300 for the entire 7 bedroom house.

Hi,

I am not yet an expat but i share similar thought of doing  business in Ecudor.

May be we can discuss further.

Regards,

ksraj :

Hi,

I am not yet an expat but i share similar thought of doing  business in Ecudor.

May be we can discuss further.

Regards,

Send me a PM, I`m open to ideas.

Hi I am looking to open a bar/hostel in a coastal city in Ecuador. I am very serious and have went down for 2 months to check it out. I really like it and am now in the process of getting all my stuff in order to make this move. I am interested in finding a possible partner to team up with. Any questions please contact me. I'm looking to find a spot and fully make this happen within 18 months to 2 years.

B-Umber,
   Renting the 4-BR casa seems like a doable and reasonable place to get your feet wet, pun intended, on the Coast.
   Consider this:  live in one BR, rent out two BR to longer-term travelers, and rent out the fourth BR to shorter-term visitors at a higher (nightly or weekly) rate.
   Then, over time, you might find it manageable and more profitable to rent two or all  three of the guest BR as weeklies.
   Starting this way could be doable without involving a money partner whom you do not yet know-trust, and makes for easier transitioning to higher profits while you learn the market...and possibly find a suitable place for the hostel concept.
   Another way to expand would be to rent a second 4-BR casa in the same vecindario and rent out those rooms too.

do we need a local ID:cedula to start a business here?

First of all, let me say my son is from China. Secondly my gut reaction is yes, you need a cedula.

I'm on about the same page. I've been dreaming of starting a hostel for years now. I bought a beach house and started converting it, but my wife hated the north coast climate so we moved back to Quito. If you're not dead set on Quito we could discuss a partnership with you managing and part owning the beach house hostel. Or, perhaps we could partner on something near Quito. I've been kicking around some ideas about starting something in Guayllabamba or one of the other vallies next to Quito. Close enough to bus into town but a little warmer and cleaner air, maybe with an art hostel twist. Build studio space and sell art supplies. Sort of a cross between an artist residency and a hostel, where some guests are just typical hostel guest, but others are there to spend a month working in the studio, writing a novel, or throwing some clay.

jessekimmerling :

I'm on about the same page. I've been dreaming of starting a hostel for years now. I bought a beach house and started converting it, but my wife hated the north coast climate so we moved back to Quito.

Thanks for the update. I had been wondering what was going on with that project.

jessekimmerling :

I'm on about the same page. I've been dreaming of starting a hostel for years now. I bought a beach house and started converting it, but my wife hated the north coast climate so we moved back to Quito.

We're wondering what happened to the beach house and were you able to sell it....

Nards,

It's not just for the weather that the North Coast is a concern for businesses.  Consider the report by an expat hotel owner that 15 hotels in the area were robbed by a pandilla that crossed over from Colombia.

I'll be interested in your ideas as to how to control the Colombian gangs in the North Coast area.

cccmedia, Quito campaign mgr., Nards Barley for Presidente 2017

cccmedia :
jessekimmerling :

I'm on about the same page. I've been dreaming of starting a hostel for years now. I bought a beach house and started converting it, but my wife hated the north coast climate so we moved back to Quito.

We're wondering what happened to the beach house and were you able to sell it....

Nope, I still have it. I had a couple half serious offers, but I've been travelling to much to follow through on anything.

The Ecuadorian Navy have a little base in the town, so Columbian gangs are not a problem anymore. They were a few years ago, which is why the nave was posted here.

jessekimmerling :

I'm on about the same page. I've been dreaming of starting a hostel for years now. I bought a beach house and started converting it, but my wife hated the north coast climate so we moved back to Quito.

That's ashame. Know you were pretty excited about starting a little hostel, and business on your beach property. If recall correctly, think you got that place for pretty cheap? As long as your not desperate to sell, would think you should probably at least make your money back, and probably make a nice little profit if you hold onto the land for a few years.

Thanks, carlmiller. I am waiting for the resident visa.

Recently I am traveling from Andes to the coast, then come back, to find where is a good place to do some business.

http://pic.qyer.com/album/user/854/83/SUxRShkFZQ/index/670

j600rr :
jessekimmerling :

I'm on about the same page. I've been dreaming of starting a hostel for years now. I bought a beach house and started converting it, but my wife hated the north coast climate so we moved back to Quito.

That's ashame. Know you were pretty excited about starting a little hostel, and business on your beach property. If recall correctly, think you got that place for pretty cheap? As long as your not desperate to sell, would think you should probably at least make your money back, and probably make a nice little profit if you hold onto the land for a few years.

Yeah, I had a 50k offer which would have been a reasonable profit for my investment, but I was in north dakota at the time and by the time I was back in town the buyer had moved on.

I am thinking about start a hostel in Guayaquil, If interested in it, please contact.

Business partner(s) wanted. Ready to leave Ontario Canada. Lets talk about your ideas. I'm open to all avenues. Bio, aspirations, and personal details available upon request. Lets talk.

chrisrandall3333 :

Business partner(s) wanted. Ready to leave Ontario Canada....Bio, aspirations, and personal details available upon request.

You can start by posting your bio and aspirations.  Consider this a friendly request.

cccmedia in Quito

I am Interested to Join & Be your Partner if you would like send me or via whatsapp My Number is +201228707043 )
thanks in Advance

I am thinking of starting a hostel with my family somewhere in Ecuador once my house sells. I am open to partnerships as well!

Hi everybody,

This is to inform you that this thread is very old (2012), therefore i invite you to post your respective ad in the Business partners classifieds in Quito as it is more appropriate.

Thanks

Priscilla  :cheers:

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