Are there any "Success Stories"in the Dominican Republic???????

Criss Colon

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Jan 2, 2002
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Over the years I have known many foreigners who came to the DR and started a business.I can not tell you of a single "Success Story",only of many many "Horror Stories"!!Sometimes it was because of their poorly planned,and underfinanced "Ideas"! But most commonly it was due to being "Taken" by a dominican partner,or forced out by corrupt government,or even military officials.Anyone who was at first successful enough to draw some attention,was soon out of business.The business was still successful,just that he was no longer the owner!Has anyone "Out There" started a business and you are making money?You may not want to answer,could be a dominican waiting to steal your business,or at least your ideas! CRISCO
 

andy a

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Feb 23, 2002
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A few days ago, two posters were very vociferous as they ridiculed caution against moving sight unseen to the DR. Perhaps they can enlighten us all.
 

Robert

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A few off the top of my head...

M. Benson - Apple computer dealer
S. Gaulding - Ink and film importer
Dbebe - Rainbow Farms (Melons)
Jetta - Organic Banana Farms
AZB - Chiropractor
Tim Hall - Caf? Cito
Eddy - Eddy's Sosua
Me - 50% of DR1 :)

Plus all those Europeans that have successful restaurants, hotels etc.
The DR has plenty of foreign owned businesses that are doing well.
Take Edesur, they sent back US$600 million in profits to Spain recently :)

I would say that it's most often down to bad planning and not truly understanding the market and culture.

I honestly don't know of one business that is now Dominican owned, because the Dominican took the business. That's not to say it doesn't happen, I just don't know of any.
 

Cleef

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Feb 24, 2002
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IMHO - and keep in mind I'm not complaining, just sharing my thoughts.

I KNOW there are some success stories, but I doubt we'd ever hear about them in this forum.

Regardless of success, there is a premium price to be paid for running a business in the DR. For all that is wonderful about the people, the culture, the weather and on and on, the reciprocal headaches are immense.

Hurdles and obstacles galore; just doing the right thing and paying the bills on time (codetel, centenial, edesur [sp?], water, etc.) is often an exercise in futility. I couldn't even begin to calculate the amount of time "we" spend in line, talking to mis-informed people who send "us" to more mis-informed people, and without exception it's due to an error on the part of the service; billing, fat-fingering a key, incorrect readings etc.

"We" have a saying when it comes to these realities of business in a developing nation...."It's always something."

But, I digress, and we keep pushing on.

"If you can find a path with no obstacles, it probably doesn't lead anywhere."
Frank A. Clark
 
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Pib

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In my line of business the normal thing is that companies belong to either Dutch or German citizens (and assorted foreigners). Why? I don't know.

Maybe you don't hear of many successful businessmen on DR1 cause they are actually busy doing something instead of just maybe spending time posting on DR1? Hmm... gotta go write a note to myself.
 

Pib

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I don't know what you guys are talking about. Don't you read the business pages in the DR? It is FULL of foreign names.

A few examples that I can type in 30 seconds:

Induca, J. Frankenberg, B&R, Frederic Schad, E. T. Heinsen, Codetel...
 

Escott

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Truly amazing

Pib said:
Maybe you don't hear of many successful businessmen on DR1 cause they are actually busy doing something instead of just maybe spending time posting on DR1? Hmm... gotta go write a note to myself.

Well I just logged in from a different computer in the DR in an Internet Cafe, amazing, isn't it? I didn't even have to use another handle or name... Wonder why?

I will stop posting here as soon as I become successful here. I wouldn't want anyone to think I wasn't a sucessful person:)

There are many people making a ton of money in the DR. If you have it you probably don't have the urge or the need to discuss it. When you don't it is always someone elses fault of course anyway and you should broadcast it here not because it helps but because it may help someone else not be as poor a business man as you were.

Have a nice day all.
 

Jim Hinsch

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Robert said:
I honestly don't know of one business that is now Dominican owned, because the Dominican took the business. That's not to say it doesn't happen, I just don't know of any.

That's because they sell it. After the owners are deported. The story of many Boca Chica businesses. A German acquaintance of mine was deported about two years ago. He lost about half his businesses up on the north coast. He was partners in the Copa Cabana disco, a car rental, a mortgage company, various properties, etc. must he also lost many personal assets. What he didn't lose was what he was able to "sign over" to his wife before his deportation, working with a new attorney from his jail cell. He was guilty I guess, but his partners did him in, including his lawyers and some long time connections that were "friends". I never got the details of what exactly he did but he's back again.

This is the reason for the warnings on the department of state page for the USA.

From http://travel.state.gov/dominican_republic.html:

Real estate investments by U.S. citizens have been the subject of both legal and physical take-over attempts. Squatters, sometimes supported by governmental or non-governmental organizations, have invaded properties belonging to U.S. citizens, threatening violence and blocking the owners from entering their property. Several U.S. citizens with long standing expropriation disputes with the Dominican Government have not received compensation.

If you operate a successful business, especially to the detriment of your competition, you better have your ducks in a row and a connection or two. I think the days of just taking a business or over but I've witnessed furniture confiscation, padlocking of businesses, and your classic "shakedown" by various government entities. It doesn't take much to shut a restaurant down - just a bad inspection report. You may suddenly find that you don't have a "license" to operate, or I've even seen established businesses of 10 years or more be told they don't have "permission" to operate. Connections saved these people, others sold and moved on.

As you can figure, a quick sell-out and go is rarely profitable. One guy got shaken down by a couple motorcycles that rammed into his parked van, and then he had to pay. You will pay now or pay later. Better keep those connections if you are going to get rich off the sweat and toil of the locals.

I think Andy B. once mentioned how a takeover attempt went as far as having the owner locked up via a drug possession frame-up and it took many months to get him out.

I've heard story after story how a couple owners have just squeaked out of some crap via a phone call to their connection. My own friend got shaken down and he was Dominican and got out when someone from Hipolito's group called on down and said, leave him alone, he's one of ours.

Visit, spend, go home, or live here and blend well. Make friends. Be an island and you will soon find yourself off the island if you make people envious or just **** off the wrong person.

Many of the methods are actually legal. We all know that to be competitive, you practically have to operate in a gray area because that is how your competition is operating. All they have to do is pick you to have the law enforced and you can be sunk. What, you've over stayed your residency? What, you didn't pay your tax? What, you didn't get a permit? What, you allowed minors in a place where alcohol is sold? You my friend are out of here.

I cannot stress enough the importance of a brick and mortar type business to be aligned with the local authorities and yes, that means unofficially this and that and don't make anybody spell it out for you. Like the cop pulling you over. 10 pesos and you are on your way. 20 pesos if you make them ask to see your papers. 50 pesos or a jail threat for a violation if you continue to play stupid. Or be macho or principled and hope it works. Which do you think is the path of least resisitence.

Did you ever notice anybody who is anybody carries some kind of card showing they have a connection? Really.
 
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Hillbilly

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I don't think some of the examples given here should count. They are mainly the local agents for a multi-national enterprise....But there are several, I am sure. There are lots of Cuban owned businesses, or doesn't that count??

Sure, there are horror stories, but there are also success stories...

POP, however, is notorious for ousting foreigners...especially in the tourist area....

HB
 

Pib

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Except for Codetel none of the examples I mentioned are "local agents for a multi-national enterprise", they are local companies owned by foreigners. And I cannot agree more with Jim, but those same rules apply to local bussinesmen too.
 

MommC

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Jim has the card bit right too........

and when the politics change or the "local" constabulary (thought Rob might like that word) you better have a card or a phone # to the "right" connection or you're SOL!
I too have seen many businesses come and go over the years. Even the ones I know that are "successful" are just making a living and not much else. Once they start to get profitable they're "gone"!
 

JanZ

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Apr 10, 2002
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Of course there will be examples of businesses which went wrong.
But as a management consultant in Holland I also meet people who think starting a business in Holland is easy.
Let me say it might be but also it might be not.
If you do not need anybody to start it is easy (of course) in any country.
But if you need finances, a shop or a warehouse etc it takes time and of course this is part of the preparation.
Normally it takes 1 year to accomplish all the preparations and than 3 months or more to get the wright location and the finances you need, to araange things with suppliers and all. And of course a lot of perseverance.
So what is the difference.
I have spoken lots of people in love with the RD and they think it is easy to start a hotel, a bar or start business whereas the goal of the business is not yet clear to them etc. But they do not have the money. They do not have any concrete idea. They do not know ther culture. They do not really know what it is to be an entrepreneur (or in DR or in Holland or another country in the world) and in this cases they often choose the wrong people as help.
So they will never succeed in my opinion and it is not important in which country.
So be critical, do a lot of things your own, calculate 1 year ore more as preparation, know what you want, know what it means to run a business and you will succeed in any part of the world.
 

Hillbilly

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Jan 1, 2002
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Excellent post, JanZ. Thank you.

Uhhh, PIB: E.T. Heinsen? and others were freight forwarders or ship chandlers weren't they? Johansen was the rep for Dunlop.
It seems to me, at least, that they had a solid foreign "connection" that was supporting them.
For example-our eco-banana farm. there are $RD 50,000,000 in assistance somewhere., either as a partner, backer or future client. This makes a huge difference. I think?

HB :)
 

Pib

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To HB

E.T. Heinsen and the rest of the maritime agents are only that, agents. All the investment is "local". And if I remember correctly both B&R (president is Dutch) and Mar?tima Dominicana (president is German, although the Tavarez family hold a big chunk of it, if not the biggest) go all the way back to when DR had a fleet of its own. Only the Danish Maersk and the American Sealand (now owned by Maersk) had their own office in the DR. The rest are local companies.
 

Drake

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The owner's of B&R (the Rannicks)are not dutch. They are from some Baltic country. I guess that makes them foriegn anyway.
 
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bryan

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Hello,

Is everybody talking about large companies or just somebody you owns 1 or 2 small stores?
From reading the stories it sounds like a nightmare to try to open a business in the DR.
I own a couple of small stores in NYC and was thinking about opening up a store in Puerto Plata. I know what I want to do with the store and the type of service I want to provide and have the people in the DR to run the store.
Having said that, I am a little concerned after reading the posts on this topic.
Is it possible to open a business make it profitable and not run into the nightmares I am reading about.

Thanks,
Bryan
 

Escott

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Operating a business is a tough thing in the DR. I have just returned and have both heard and seen first hand misuse of power.

A restaurant that was open for only 6 months was emptied or "Embargoed" because of a complaint of a worker. They took everything that wasn't nailed down. They took every table, every chair, and even the old wooden wine rack out of the store.

I wouldn't get involved without really knowing what goes on if I were you.
 

MikeKO

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Apr 12, 2002
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I find this thread interesting. Particularly with regard to another thread about how business in the DR is going to boom because of the many airports and college grads. It won't happen until some very basic things take place.. minimizing (notice I didn't say eliminate!!!) government corruption, and providing a stable political environment where success (or failure) is not a function of which political party you have bribed!!!

Mike