Job Discussion Forums

[thelmadatter]

Reading Joshua 2004's thread I was wondering how many of you long-timers here have started and/or invested in a business here. We all know about low pay and all (tho Im lucky enough to be happy enough with my job). If Im going to be here for the long haul - and right now I dont see why not now - Im thinking I need more going than I have now. Im not looking to replace my job - just add to it.

What I got out of it was that to do this you must hook up with a Mexican citizen, which I think I need anyway(not the best salesperson in the world here. Id rather do something OTHER than teaching English (dont want to teach here all day than do it again later). I have heard some horror stories about gringos (esp women) getting shafted by folks. How does one go about educating oneself as to what the possibilities are? I know its risky - I just want to take an educated, rather than an uneducated risk

[moonraven]

A heap of potential aggravation is looming right around the corner, IMHO, if you decide to start/invest in a business here. I have had people in my ears about doing that for about 12 years now, and only once did I even get to the sit down and talk about it stage.

I have too many creative projects going to consider something like that (much as I love teaching and training teachers, working eats into activties I like even more.) But if I didn't have that set of priorities, and actually found myself wanting to go back into the entrepeneurial lifestyle that I had in the US, I would figure it was time to head back there--where one can make a heck of a lot more money, invest much less time and energy doing so, and not have to worry about the inclinations of one's "socios".

[Ben Round de Bloc]

[joshua2004]

I was hoping a thread like this would happen. I am willing to share any insights on opening your own school so as to get ideas to improve my own.

As far as the problem of a visa, you should partner with me! I have dual citizenship and my partner is a Mexican citizen as well.

I would like to start a dialogue now about how we could do this. We have a very intriguing, thematic method and are developing the materials currently. What I propose is for you to run your own school, with us as a partner to make it legit. What do you think?

Josh
Cooperative Learning de la Laguna

[Wouter]

I started a year ago my own business in Guadalajara, Mexico. We have a language school for spanish, english, frensh and german. For me it wasnt that dificult but I must say that I coudnt have done it without my mexican girlfriend. Speaking spanish is more or less a must. In Guadalajara I never found an official government company where they spoke english. Not even at the imigration office.

If you need some information about starting a business I can give you the following tips.

There are four things that I did first when i started the business.

First get your working visa. There are two types. FM3 and FM2. The last one almost nobody knows about. The good thing from a FM2 is that after 5 years your not paying any money anymore. With a FM3 you keep paying every year. Inform about which one you want.

Second thing is get your RFC. This is a registration for taxes. You probably going to buy some stuff and if you want to deduct the IVA (taxes) you pay over your stuff you have to have a bill with this number on it.

Third get your permit for your business. It depends for what business you start but for some you need more then one permit. For my school I needed a general permit and a special permit for teaching.

Fourth open a bank account. This you need for the taxes. My accountant adviced me to pay every with checks that you get from the bank where you have your account. This makes it easier to deduct the money that you pay when you buy stuff.

This is a list that you have to do quickly because everything can take here a long time. In some places your working visa can take a month to get it.

Hope this is usefull information. If you need any other info just ask.

Wouter

[guera]

I've just become a "socio" with my Mexican fiance and our Mexican friend in a "non English teaching" business venture. Actually, it is our friend who up until now has put up most of the capital. The business has been doing relatively well considering it only has been in operation one year, I have only recently become more officially involved, so I don't have years of experience from which to draw on.

I believe that considering entry into a business venture in Mexico in many respects is the same as considering options in the U.S. ( I didn't say all respects ). What I mean by this is that you should believe in the concept and in your potential socios. I'm not too sure how one would handle potential meddling family members and metiches, I thankfully haven't had that happen, but I am aware of all of the financial transactions that occur within the business and I would think drawing up legal documentation would offer some modicum of protection.


As for other sources of information, AMCHAM can be helpful for some things> Also, soyentrepreneur. com offers up information on franchise opportunities.

I don't believe that becoming involved in a business in Mexico is an all bad idea, and there are risks even in becoming an entrepreneur in the US

After all Adolf Horn did alright with Helados Bing in Guadalajara.

Good Luck.

[guera]

Whoops..One more point, a huge disadvantage to Mexican businesses is that financing in Mexico is much much harder to obtain than in the US and collections on Accounts Receivables can last much longer thus making cash flow management more difficult.

I've heard these comments from numerous business folks in Mexico and have seen some of the collections issues..

[richtx1]

[Guy Courchesne]

Not sure what it's like out there in 'la Provincia' but in DF there is much easier access to financing. Since 99% of banks here are now foreign owned, heavy competition is driving down interest rates, mostly in the auto and mortgage areas, but small business loans are coming down too. Scotiabank is a leader in this area. It is EXTREMELY reare for me to proud of a Canadian bank, much less any bank, but they are doing some good work here.

[MixtecaMike]