Picking a place to live and start a business

dbogdan83

New member
Jun 20, 2011
60
0
0
Hello all,

I have been to the DR 3 times by now and like most people I fell in love with the country?.. I will be arriving in November for a 1 month trial period.. My goal is to meet as many people as possible and to find out where the best place would be to relocate and start a business.. I would prefer an excursion business.. I am originally from Europe but have been in the US for the past 15 years? I would like to relocate sometime next year.. I will be arriving in SDQ and slowly making my way down to the Bavaro area.. I was thinking of staying at different parts of the country for 3-5 days at a time.. my goal is to pick an area by the end of the trip.. So far I have been to SD, La Romana, Bavaro and Punta Cana.. None of those 4 places have really caught my eye.. I mean the places are great but after following the DR1 forums for a while now it looks like there are much nicer places to live and start a business.. any recommendations are highly appreciated.. what places should I visit Is basically my questions.. I would like to meet people that were in my shoes 10 yrs ago and now are living a comfortable lifestyle in the DR.. thank you very much!!
 

belmont

Bronze
Oct 9, 2009
1,536
10
0
Hello all,

.. My goal is to meet as many people as possible and to find out where the best place would be to relocate and start a business.. I would prefer an excursion business.. !
The question to ask yourself: "What excursion can I offer that is not already offered in the DR?" Unless you can come up with somrthing unique, you are probably doomed to failure as just about everything on land, sea or in the air has been tried. Some have been sucessful and thrived, but the majority have failed.
 

KateP

Silver
May 28, 2004
2,845
6
38
If you're looking at excursions, then obviously you'll want to be close to the tourist areas and these pretty much amount to Punta Cana/Bavaro, Puerto Plata, Samana, Boca Chica/Juan Dolio and the south (somewhat, not too developed yet). Santo Domingo would be your center to get paperwork done and buy supplies but you would definately have to be on-site and working hands-on for you to have a chance of making a profit. Do you have any idea what type of excursion you'd like to run? I live in Punta Cana and there are many, many options of excursions. You'd really have to think up/develope something totally new and innovative to be able to even get a foot into the business.
 

PICHARDO

One Dominican at a time, please!
May 15, 2003
13,280
893
113
Santiago de Los 30 Caballeros
Hello all,

I have been to the DR 3 times by now and like most people I fell in love with the country?.. I will be arriving in November for a 1 month trial period.. My goal is to meet as many people as possible and to find out where the best place would be to relocate and start a business.. I would prefer an excursion business.. I am originally from Europe but have been in the US for the past 15 years? I would like to relocate sometime next year.. I will be arriving in SDQ and slowly making my way down to the Bavaro area.. I was thinking of staying at different parts of the country for 3-5 days at a time.. my goal is to pick an area by the end of the trip.. So far I have been to SD, La Romana, Bavaro and Punta Cana.. None of those 4 places have really caught my eye.. I mean the places are great but after following the DR1 forums for a while now it looks like there are much nicer places to live and start a business.. any recommendations are highly appreciated.. what places should I visit Is basically my questions.. I would like to meet people that were in my shoes 10 yrs ago and now are living a comfortable lifestyle in the DR.. thank you very much!!

There are plenty of opportunities that can be exploited all around the Dominican Republic. Even when the biz itself seems to be already ongoing where you happen to see it, odds are that it's being run just about to acceptable or "barely" there levels. The biz that are properly run and planned in the DR are by far the exception rather than the rule.

Again parting from a first hand experience of DR1 members, you don't need to plant your biz in what might look like the logical spot for the type you expressed above. We have several DR1 members running their biz from areas that share little or none with their intended targeted client base. Cobraboy here runs a MotoCaribe biz that caters to international riders, out of his base in Jarabacoa. Itself well known to locals but very little to the common tourist that visits the DR and the vacationing poles.

The keys are a well planned and funded biz strategy, which will be able to carry your biz model for the first two years or so. In the DR, it's the norm rather than not, to start and run your biz from a home office until you gather enough of a client base to establish the same formally *this means having a shop other than your home to run and present the biz to the clients.

Another key aspect is advertising and creating handshake relations with already running tour operators that could benefit your biz alike. One hand washes the other... You'll find that most biz here are based on people to people interaction rather than the common shared commercial interests which rule elsewhere.

The most important rule to be in biz in the DR is to trust your biz interactions but rely NOT on a single one of them! That's to say the "Ma?ana" attitude that permeates the biz and personal interactions alike. Your biz must be run as a self contained and auto-sufficient outfit.

As for location? Pick a place that YOU would like to live at, pay less attention to how the biz will operate much from there, as I explained you can run it from the top of the Pico Duarte and still have the same ROI as if it was in the middle of SD...

You should spend more time in creating the person to person links that will enable your biz to operate with success in the DR first and foremost. There are plenty of opportunities to meet and create those relations during meetings and activities from that sector as well as membership on the tour operator associations in the country.

How do you find out what's there already and how can you compete for a piece of that action by doing it better? Spend some time and cash taking the tours that already service the sector and see in first person what's right and works, what's wrong and overkill... At the same time you'll be able to see which of those operators would benefit from creating a cross client partnership that's beneficial to both of you.

In the DR money is king and key, no doors will open for you unless there's a profit to be made from that biz relationship.

Location in the DR follows another type of rule unlike abroad, you make the location worth the value to your biz not the reverse as you're used to elsewhere.

The only advice I can offer you is that you must learn to tap into the local market in order to create an operating fund source for your biz to rely when those tourists get far and in between seasons.
 

Contango

Banned
Dec 27, 2010
2,196
5
0
I have a great idea PM me if you are looking to partner financially. Need you to sign an NDA first via fax.
 

Hillbilly

Moderator
Jan 1, 2002
18,948
514
113
The only thing I can contribute is to change directions. Go North.

Do places like Cotu? (major mining center with the gold mine and a nickel mine); Bonao, major nickel mine; La Vega, major agricultural hum; Moca, an old agricultural hub; San Francisco, large ag center (All of these cities also have industrial free zones that are more or less in operation)

Then Santiago. This is a large metropolitan area with industries, cultural and entertainment as well as agricultural interests. It is the second largest city in the DR, connected to Florida, NY, Atlanta, Panama and Haiti by air.

Then POP, a port and tourism center (it was at one time); Sos?a, and Cabarete (tourism centers)

That should wear you out...but you get a better feel for the real DR, not the "green house" variety out East.

HB
 

Conchman

Silver
Jul 3, 2002
4,586
160
63
57
www.oceanworld.net
Keep in mind that the excursion business is controlled by the tour operators, who don't allow hotels or excursion providers to sell tours directly to "their" clients. These tour operators expect 40 to 60% commission if they sell your product. Its a tough market.
 

Arenque

New member
Oct 10, 2011
1
0
0
I have a fabulous idea for a restaurant in Sousa,---- nobody has done as far as I know, It is a minimal investment because the menu will be small and ingredients will be accessible, I do not think we would have to import anything-- We have the labor, we have experience working competitive tourist markets that have dealt with the locals and the Government, We have Tri-Lingual personal, We have an On-Line Marketing team to help promote the Bar/restaurant , All we need is the right location
 

DRob

Gold
Aug 15, 2007
8,234
594
113
First, live in the area. Get to know the locals, including the suppliers, the politicians, the biz owners, the police (there are several flavors of each).

Then, get to know the people who are really in charge of the town. From your posts, it's clear that hasn't happened yet.

Be there long enough to witness (NOT participate in an ownership capacity) at least one tourist season.

Pay close attention. Your market may not be comprised of who or what you think it is, as Sosua is experiencing some significant changes right now.

Then, maybe, consider venturing out. But DR ain't Grand Cayman, and Sosua ain't Santo Domingo, so be careful.
 

Tamborista

hasta la tambora
Apr 4, 2005
11,747
1,343
113
I have a fabulous idea for a restaurant in Sousa,---- nobody has done as far as I know, It is a minimal investment because the menu will be small and ingredients will be accessible, I do not think we would have to import anything-- We have the labor, we have experience working competitive tourist markets that have dealt with the locals and the Government, We have Tri-Lingual personal, We have an On-Line Marketing team to help promote the Bar/restaurant , All we need is the right location

You might start off by spelling the town correctly, it is Sosua, sorry could not resist! You could always rent out a fully equipped kitchen in a bar a few nights a week to test market your menu.
 
Feb 7, 2007
8,005
625
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Keep in mind that the excursion business is controlled by the tour operators, who don't allow hotels or excursion providers to sell tours directly to "their" clients. These tour operators expect 40 to 60% commission if they sell your product. Its a tough market.

You've got this absolutely wrong. The excursion business is not controlled by tour operators, it is, actually, completely controlled by the local DMC (destination management companies). The fact that they are, in major part, affiliated to big international tour operators, is another thing. (e.g. Hotelbeds and Blue, major DMC's, are part of TUI, which groups Tui, Arke, Jetair, First Choice, Thomson etc.). Gocaribic is working for REWE (Jahn, Meiers, etc.), Holatours works for FTI and Ferien and Amstar works for Apple Vacations. Then you've got some smaller DMC's like Turissimo, Caribissimo, Turinter etc. But all in all, MOST excursions are managed by DMC. They act as wholesalers. Tour operators "buy" from DMC's, even though may be one holding. Many times DMC's offer free ground handling to big tour ops, and even pay them per passenger fee, in exchange for access for selling excursions --- yes big tour ops get FREE ground handling for their passengers, free reps at hotels for their passengers, get paid a FEE per passenger for each and every one of them, many times over $10 they buy excursion or not, and SOMETIMES even get a 5% commission form excursions sold - it's that big of a money machine this excursion business. The independent excursion operators sell via these DMC's. They take about 30 to 40% commission (so no 60% as stated), out of which they pay 10 to 20% to the reps who are at the counters in the hotels. The DMC keeps about 20%. Now if you can come up with interesting excursions, the tour ops WILL buy it. But be aware that they pay at like 90 days AFTER the excursion, also you must be licensed excursion provider. The DMC's organize very few of their own excursions, I know a wholesaler that deals in about 50% of Saona biz and people form Tui, Hotelbeds, etc buy from them. However, it's kind of private-label excursion, because it is officially sold as Tui/Hotelbeds excersion.
 
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Feb 7, 2007
8,005
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That should be a deal killer in the DR...

While they pay, it's still OK. Most hotels in Bavaro/PUJ pay at 90 days to their suppliers. Heck, foreign tour operators pay DR partners (DMC's, hotels, etc.) at 90 or 120 days. 90 days is not "unusual" in the DR, especially in anything that has to do with tourism. However, you have to be "big" and "respectable" to get 90 day terms. Try a small tiny tour-op (like you or me) requesting 90 days terms from hotels or ground handlers and he will be laughed at. The best he can get is day-of-arrival payment (guess that's what you and I are getting). And several DR based tour ops (considered quite big in the DR) get that. No DR tour op/travelagency gets 90 days, if they are lucky they get day-of-departure payment. Foreign ones like TUI, etc. for them it's 90 to 120 days sometimes more.

DMC companies get money for excursions from the clients on the spot (the rep tables) but they do this cash flow thingy with their suppliers. They are "buena paga" but "tarde". Anyway there are ways to do some factoring of invoices payable by well-off DR companies. All in all, the excursion operators are quite well off, even with these terms. i know a French guy who started Saona lancha business couple of years back, came with nothing, now has several boats and drives BMW sporty car. And that is with customers (foreign tour operators and local DMC's) paying like at 90 to 120 days. But there's so much $$$ involved in excursions that he was able to create a huge cash cushion so now can pay his invoices "prepaid" or "paid as rendered" while his customers pay him at 90 days.

In my business (media) I once had a 180-day invoice paid ... I knew it would be paid, the question was when. This agency (OMD central de medios) usually does 90-day to anybody and they have always done 90 day payment terms to me, but that one invoice. Anyway, unless you give them like 15 to 20% disco**** for "pronto pago" you're stuck at 90 days, and even the pronto page is still like 30 day terms anyway. It's cheaper to finance it at 20 to 25% p.a. through banks or factorers.
 
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MikeFisher

The Fisherman/Weather Mod
Feb 28, 2006
13,766
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Punta Cana/DR
www.mikefisher.fun
Keep in mind that the excursion business is controlled by the tour operators, who don't allow hotels or excursion providers to sell tours directly to "their" clients. These tour operators expect 40 to 60% commission if they sell your product. Its a tough market.

correct on the 40-60% of Commisions asked for by the Touroperators,
but their times to control the Market is since long Gone, as there is for example here on the East a growing Bunch of Touroutfitters who developed their own Market and do not even try to contract with Touroperators, as You could never be fair to a Customer by Price/Product Value when paying 60% of a simple Sales Commision.
a Customer Pays $1.000.- for a Fishing Charter for example, the Tourop get's 60% of Commision, leaves the Touroutfitter who has all Costs as paying Taxes and Employees and Transportations and maintaining his fleet with $400.- of the Cake, so what Service that Outfitter finally will be able to provide to a $1.000.- Customer???
Yes, a simple max $400.- Service for $1.000.- paid by the Customer.
such Devils Circle been darned to fail one day soon since long, and that Failure already started some years ago and growing like a cancer in the Tourop's ole fashioned Mafia System.
Today's Clients know how to research their Vaca Destins by Internet and how to get in touch with the Outfitters directly, and the Clients know due that who is seriously and real service providing in Business at a Destin since years for specific Products.
I am myself since a very long Time running a Biz on the East denying any such Customers Unfriendly contracts with Tourops, and it runs very fine, as it also does for a number of friends of mine running similar Biz Types here on the East.
with the Tourops You make some Bucks quickly within a short Timeperiod(IF they really Pay You the lil agreed on Share), and then you find out that you will not get much returning Customers due the leaking Price/Product Value and then those Biz go Downhill, latest example here on the East been the very well known and daily filled Tours of the Tropical Storm Catamaran Excursions, always looked like the perfect Goldmine, but finally been a Failure as so many others.
to run a Biz successful You need Time and the money to pass that Time without troubles, make Your connections within the community where you wanna run a Biz, cut out the High Commision Salescrap, and most importantly, Build Your Customers Base by providing a steady and reliable Service Your Customers trust on, because Your Customers are the Ones who bring with Time the next Customers to Your, in what ever kinda Biz You may plan on.

good luck

Mike
 

MikeFisher

The Fisherman/Weather Mod
Feb 28, 2006
13,766
2,195
113
Punta Cana/DR
www.mikefisher.fun
While they pay, it's still OK. Most hotels in Bavaro/PUJ pay at 90 days to their suppliers. Heck, foreign tour operators pay DR partners (DMC's, hotels, etc.) at 90 or 120 days. 90 days is not "unusual" in the DR, especially in anything that has to do with tourism. However, you have to be "big" and "respectable" to get 90 day terms. Try a small tiny tour-op (like you or me) requesting 90 days terms from hotels or ground handlers and he will be laughed at. The best he can get is day-of-arrival payment (guess that's what you and I are getting). And several DR based tour ops (considered quite big in the DR) get that. No DR tour op/travelagency gets 90 days, if they are lucky they get day-of-departure payment. Foreign ones like TUI, etc. for them it's 90 to 120 days sometimes more.

DMC companies get money for excursions from the clients on the spot (the rep tables) but they do this cash flow thingy with their suppliers. They are "buena paga" but "tarde". Anyway there are ways to do some factoring of invoices payable by well-off DR companies. All in all, the excursion operators are quite well off, even with these terms. i know a French guy who started Saona lancha business couple of years back, came with nothing, now has several boats and drives BMW sporty car. And that is with customers (foreign tour operators and local DMC's) paying like at 90 to 120 days. But there's so much $$$ involved in excursions that he was able to create a huge cash cushion so now can pay his invoices "prepaid" or "paid as rendered" while his customers pay him at 90 days.

In my business (media) I once had a 180-day invoice paid ... I knew it would be paid, the question was when. This agency (OMD central de medios) usually does 90-day to anybody and they have always done 90 day payment terms to me, but that one invoice. Anyway, unless you give them like 15 to 20% disco**** for "pronto pago" you're stuck at 90 days, and even the pronto page is still like 30 day terms anyway. It's cheaper to finance it at 20 to 25% p.a. through banks or factorers.[/QUOTE

Sum that Up with the Sales Commisions, add Your costs for waiting for the Money, don't forget to calculate the Bad Exchange Rate You get paid on da Dominican Pesos Cheque(Yes, the Clients are priced and Pay in US$ Currency, but You don't), George, do You still wanna say that there is not a at least 40-60% of Money GONE for the Outfitter compared to the Rate paid for the Product by the Customer??
It IS!.
and of what You receive You still have to Pay Your Taxes to the Gubmint, and You still have to pay all Your Biz Expenses like maintaining Vehicles/Secretary/Contable/Employees/Liquidations etc etc etc.
You can not build a long lasting Biz on such Terms, as You could not provide Your Customer with a Product not even close to the Value of the Money the Customer Paid for it, and thatb way there will not be a high percentage of returning Customers/recommending Customers, and that way a Biz is just a short Time Moneymaker and then darned to Fail the Hard Way.

Mike