Hello
My name is joseph, an American living in Southern California.
I am considering moving to and opening a business in Ecuador.
I would be in your debt if you'd advise on few questions I have below – thank you in advance.
I would first like to tell you something about myself, so that your response would be more tailored.
I've not yet reached the “official” retirement age, thus no pension of any kind, but as of this year (2013) I have retired from my life long vocation in the field of software engineering. Having traveled several dozen countries in the past, I am convinced that in order for me to stay retired with the funds I posses, I've a better chance elsewhere than within the bounds of United States. Since my retirement – rather decision to do something different than working with abstract concept of trying to apply logic where it doesn't belong, namely human psyche - I've been employed as a scuba instructor and a professional photographer in Maldives by the likes of Conrad-Hilton and Viceroy resorts (I hold professional certifications/background for those disciplines).
I am a long-time divorced man with grown kids living their own productive lives and unencumbered financially (no debts, no mortgage – house recently sold and no aging parents). I do have some funds, which I would like to use to establish my retirement dream (buying work, I guess), but I fear that I do not have enough. I have recently returned to the U.S. from traveling and working abroad for the past several months and I'm temporarily staying with a friend until I find a suitable destination to explore. If I stay too long in the States, I will need to dig into my saving, or worse yet, return to my former vocation due to cost of living here in Southern California. So, the bottom line is, I am prepared and ready to get on a plane and see for myself whether or not a do-able opportunity exists.
What I wish to do is as follows…
A small bar & grill serving primarily beer, few mixed drinks and simple food. I don't know if liquor license or Health Inspection certification are required to run such a business or even if there is a such a thing in Ecuador.
While it sounds ludicrous, I would like to invest no more than 10-15k initially to buy-in on an existing business for sale (if there are any) or rent a vacant commercial property under lease and invest about the same to open the business. These numbers are not a hard and fast rule and I am flexible to a degree, but I have no delusions that I will be wildly successful the first time out, and therefore I am cautious with funds.
My questions are:
1. Do you know or have contacts at your disposal who can tell me if such a venture is possible with the amounts I've proposed? Perhaps a Realtor you would care to recommend?
2. Is there a town or village near you with a steady traffic from visitors, tourists and/or backpackers? Of course, with the understanding of diminished traffic in off-season.
3. One of the reasons why I am considering Ecuador is, as I understand, foreigners are allowed to buy property in country. I do not wish to buy any property at the moment nor do I wish to invest a great deal of funds, but that may change in the future should my ventures unfold in my favor. Having said above, one of your posts suggested that one should get the “necessary documents to obtain residency”. Would you enlighten me as to what documents are necessary and how best to prepare myself while in the U.S. so that I do not go back and forth unnecessarily?
Thank you, your answers would be much appreciated.
joseph
Possibly Ecuador?
Joseph your retirement points are common among most ex pats. I think you're on the right track but from what you describe as your funds I'd have to say they're limited.
Yes there are criteria's to meet in opening a bar & grill and they include a fairly long laundry list of officials "stopping by" to see if you're open and up to compliance whether they're actaul requirements or otherwise.there will be other details to look into as well with the local government offices. You'll need to find and speak with others who've come before you and have done this. If you get into Cuenca find the Inca Room along the river. It is owned by and Americn who bought in 5-7 years ago. I don't think he started it from scratch but I maybe wrong on that point. He's a chatty guy and if you're not competiting with him I'm certain he'll give you some pointers to avoid the pain to come your way.
Good luh amigo
As for passerby traffic, again your funds limit you here and competition for buildings with the right demographics and traffic patterns are costly. Recently, I saw what I'd consider to be an upscale bar/restaurant for sale by owner with a price tag exceeding $300k!!! After seeing it and discussing terms it became quite evident this fella was trying to cash in on incoming ex pats. Most Ecuadorian folks see us as ultra rich and by their standards we are. Home is another standard for us monetarily speaking.
If you pursue this dream for lack of a better word you may need to look well into the interior and smaller towns so the question begs are you very fluent in Spanish? if not better jump on that problem. Without it you'll suffer from frustration and anxiety.
Point being, having owned bars up north, under your conditions as you've explained them you are truly up against it based on your must have requirements. And, you are grossly underfunded.
Maybe 10 years ago you could've pulled this off with your budget but now????
Good luck amigo
Thank you Timo,
It is as I thought. Obviously where there are enough traffic to support a business, I am too late for a bar/restaurant start-up business.
In addition, having read much of the visa requirement posts, it seems that time is not on my side. While I can stay up to 180 days, if that is not enough time to develop a small business to where I feel stable, I will be faced with either leaving for a year or applying for residency just to stay in the country and hope for the best. Unlike other countries, I do not have the luxury of visa runs to the neighboring state.
So, while many have touted Ecuador as the place to be, I do not think Ecuador is for me just yet. Perhaps when I am of age to retire and do not need to generate income to supplement my expenses…
Thank you for your help.
Hey Dusty, i thought i'd just chime in to this thread, as i've been in business all my life, and in a few different countries, Costa Rica included. Also because there might be some others reading and thinking the same way as you (i.e. start-up business on a shoe-string). This idea is very difficult to pull off. Even if you went to Ecuador with 100K and decided to 'try it', your odds of success are low. The odds of succeeding in business of any kind are low, period, no matter where you are. The failure rate is high. For every seven that fail, one might make it into the third year.
As a software eng, you should be able to get enough telecommuting work bidding off Elance or Odesk to live a good life in any 3rd world country. The devil you know, is always preferred to the devil you don't know. Just my 2-cents.
Have to agree 100% with the points Timo, and James made.
Seems like you're in a pretty decent position in that you have at least some funds, and no major expenses. Plus not boggled down by family, or any of those things. Don't know exactly what options you have, but is it viable to work 3-4 months a year at software engineering? Know you really don't want to do that, but in all honesty would probably make much more money in that time frame than you would in a year in some thirld world country. Then you would still have 8-9 months out of the year to live elsewhere and relax.
I have pretty much been living that exact life since my young 20's. Not software engineering of course, but you get the point.
Joseph,
Hello. I sent you a private message regarding this post. There is opportunity here in Ecuador. Please read my message and respond via email.
Mike.
To everyone responded, Thank You - i sincerely appreciate your comments.
I realize that whatever endeavor I chose to engage in the future, I will first have to experience the country and get the feel for the community at large. So while I do wish to start some sort of business, be it a bar & grill, IT repair shop, etc., as it is necessary to subsidize my living in the long run, it is secondary to finding a place that is both welcoming and within reasonable range of my preferences. Therefore my first task is to find a suitable location where I'd want to live, which I cannot do without experiencing the day to day life on location. Hence in reality, I need to travel to the likes of Ecuador (or any other place), rent a house, make friends, spend money (probably not earning any at this point) and fight boredom until either opportunity presents itself or the visa runs out. In the case of Ecuador, the visa will run out in 90 days (without extension), at which point, I have to ask myself – “ do I want to stay longer?”. If I like my surroundings and new friends, chances are that I'd want to stay longer, which means I'll definitely have to start thinking about some kind of income source. Once decided to stay, I will have to extend my visa another 90 days, then start the residency visa process, which will require my travel back to the States for the necessary documentation, etc. (undoubtedly there will be some snafu(s) along the way, which may require additional trips back to the States). Also, due to the uncertainty of the residency visa outcome it wouldn't be prudent to start any business or investment in the country. If all goes well with the residency application, I'll receive the residency visa and the actual “life” abroad commences. On the other hand, if Murphy's law strikes, I must leave the country for a year, at which point I'm fairly certain that I would have had enough and will not return. Both of these scenarios are due to one specific aspect of Ecuador's visiting rules, the regulation that requires departure after 180 days (max) and must stay out of the country for a calendar year. This makes it very difficult for people like me, who haven't had the time to experience the country enough to know to make the decision to relocate on the first go, which translates to more expense (there was a post from “bbrjhn” who expressed a similar view).
So, unless I am mistaken – and I am often wrong so please correct me – I essentially have to make up my mind to become a Ecuador resident before I leave the States, get all my necessary documents ahead of time as if I am going to apply for residency in Ecuador, bounce around the country until I find my slice of nexus within the first 90-180 days or so and hope I will be able to find some way of making a living. Alternative is to travel back & forth, without a permanent residence in either place (no house, since it's been either rented out or sold), and donate what savings initially earmarked for living abroad to the airline companies. Is that about right?
If Ecuador were to allow people like me to travel to the neighboring country and re-enter (say 72 hour rule like Nicaragua), then I can stay a year or two without the pressure of overstaying the visa, which would facilitate an easier transition, as it would provide more time in the country to explore various cities, coasts and towns. It's true that I will still have to travel back to the States when the time comes to jump ship, but I would have the luxury of time, which I believe would make a world of difference in making an informed decision.
I hear Ecuador is great place to live and I do have some means to support myself even if I do not find work, also I don't often shy away due to risks involved, but I feel tightly squeezed on this one. Too many players and unknown variables to make the decision and indecision means additional expense. Unless you kind gentlemen/ladies tell me I'm way off mark, I think I'll pass on Ecuador.
All my best
Joseph
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