Curious about everyone’s opinion on...

[GringoRubio]

it would not work. colmados are neighborhood things. they work on credit. the owners know the clients..they have these little books in which they note how much Don Chanchi and Rosa owe. foreigners could not do that...

It's possible, but you'd need some help from a close family member. An esposa/o, tio/a that won't skim the till. It's definitely a cultural feature.

There's strong laws around skipping out on your bill. Most people won't go there, and your colmado becomes almost an extension of your house.

It originally drove me nuts when just to make breakfast you had to run to the colmado or colmados to round up the ingredients. Here in Fort Lauderdale, I could probably go a month eating out of my stash without missing a meal, but in Puerto Plata, the wolf of hunger would start scratching at the door by sundown without a trip or two to the colmado. Of course, my German heritage comes from people that had to store up food to survive the winter. It took me 2 years to get use to the "extended larder".

 

[GringoRubio]

I think I mentioned this before, but I ran into a guy that started a discotheque in Puerto Plata. The dominicans ate him alive.

He didn't speak Spanish nor had an abogado to help him. Employee problems first. Then the owner decided that he did such a good job fixing up the place that they doubled the rent which made the business unvia. On the home front, he was robbed. He bought some dogs to guard the house, but they loved the poison surprise and he was robbed again. The next set of dogs, he taught not to take food from strangers, and I met that lot. I thought they were going to take a part of my backside, but walked away without buying anything. He said that he lost about 100k Euros.

He gave up. Sold everything at a deep discount and disappeared from whence he came. It's a sad story because I think he really had his heart into it and didn't expect to make a lot of money. I think it would have been completely different if he had gotten use to the locals first and found a good bi-lingual abogado and manager.

 

[CristoRey]

What are the things you miss most? If any?

Boiled crawfish in the spring time would be nice.

 

[RDKNIGHT]

Sad story but very true.... best thing to do down here is stay low key.....any signs of money the animals gather...

 

[Ecoman1949]

McDonald's, Wendy's, Taco Bell.

Good suggestions. Also a Tim Hortons and a reliable postal service.

 

[cobraboy]

I've posted this before, but deserves to be reposted:

[Wet Blanket Alert]

• Do not take advice from anyone who has never been in business successfully whether the DR or elsewhere. Their advice is worthless.
  
• Do not take advice from anyone who has never started a business in the DR, successful or not. I am referring to formal, tax-registered businesses, not some freelancer doing something for petty cash.
  
• Do not start a business that can be duplicated with modest capital or effort by a local. They WILL compete with you and grind you into a pulp on price, and they *will* outhustle you.
  
• Only start a business with significant barriers to entry, whether capital, specific and rare expertise or cultural.
  
• Do not start a business that depends on revenues coming from the local economy, whether tourists, expats or Dominicans, unless the product is extremely rare or you have great expertise.
  
• To think there is some niche that locals have not figured out is to be woefully naive.
  
• Do not invest a peso into any business run by someone else without a verifiable track record of both success and honesty.
  
• Never start a business because some local says it would work.
  
• Never start a business that has significant debt that you cannot personally afford.
  
• Never start a business that is seasonal unless you can pull the plug on all costs during the off-season.
  
• Never start a business without 3 x the expected start-up costs in the bank, and do not touch that stash for personal needs.
  
• Never start a business that depends on a "Key Man" for success.
  
• Never start a business without sole signature authority on the bank account.
  
• Never start a business in the DR if you have any addiction issues, whether women, drugs or alcohol. You need clear thinking 24/7/365 without distractions.

If you look around at businesses started by expats that fail they violate one or more of the above. If you look at businesses started by expats that succeed they violate none of the above.

 

[Africaida]

If I may add

I've posted this before, but deserves to be reposted:

[Wet Blanket Alert]

• Do not take advice from anyone who has never been in business successfully whether the DR or elsewhere. Their advice is worthless.
  
• Do not take advice from anyone who has never started a business in the DR, successful or not. I am referring to formal, tax-registered businesses, not some freelancer doing something for petty cash.
  
• Do not start a business that can be duplicated with modest capital or effort by a local. They WILL compete with you and grind you into a pulp on price, and they *will* outhustle you.
  
• Only start a business with significant barriers to entry, whether capital, specific and rare expertise or cultural.
  
• Do not start a business that depends on revenues coming from the local economy, whether tourists, expats or Dominicans, unless the product is extremely rare or you have great expertise.
  
• To think there is some niche that locals have not figured out is to be woefully naive.
  
• Do not invest a peso into any business run by someone else without a verifiable track record of both success and honesty.
  
• Never start a business because some local says it would work.
  
• Never start a business that has significant debt that you cannot personally afford.
  
• Never start a business that is seasonal unless you can pull the plug on all costs during the off-season.
  
• Never start a business without 3 x the expected start-up costs in the bank, and do not touch that stash for personal needs.
  
• Never start a business that depends on a "Key Man" for success.
  
• Never start a business without sole signature authority on the bank account.
  
• Never start a business in the DR if you have any addiction issues, whether women, drugs or alcohol. You need clear thinking 24/7/365 without distractions.

If you look around at businesses started by expats that fail they violate one or more of the above. If you look at businesses started by expats that succeed they violate none of the above.

Love it, applicable in DR and beyond imho

* Never start a business because some Expat says it would work.

Witness it as well, by expat trying to get rid of their failing businesses to the unsuspecting newbie (but i guess it falls in other of your categories).

 

[JD Jones]

And for what it's worth: I run a free zone based business.

When we set it up, we were the only ones offering the service.

Needless to say, it takes a whole lot of money, time and effort to set up a successful business in a free zone environment. Much more than a non free zone environment.

Now there are dozens of them, many who have come here from other countries. They have done the same thing as us, only much bigger and much more $$$$ spent.

Deep pockets willing to offer services for less to eliminate the competition.

So, even if you have a good idea nobody else has thought about, be prepared for somebody to do it for less and run you into the ground.

 

[cobraboy]

So, even if you have a good idea nobody else has thought about, be prepared for somebody to do it for less and run you into the ground.

So far, after 11 years, I have survived.

 

[thomasj]

Piracy on the sea has been transferred to piracy on land. The average European or North American is no match to natives trying to separate you from your money. After living here for 21 years I still get "taken" occasionally. Personal security is tentative at best if you are a pensioner with most of your assets abroad, live in a gated community and keep a low profile you may survive relatively unharmed.

 

[LindseyKaufman]

I don't run a business, but a non-profit. There are many do-gooders around the North Coast. Maybe this will help them and I believe some concepts also apply to the discussion above about business.

I made many mistakes and learned along the way. School of hard knocks. Was not dealing with money, but human lives - high stakes.

Began behind Montellano in the Haitian communities. We gave food and medicine to the very poor.

I learned that giving things develops a dependence and over time, an unwillingness for the receiver to help himself.

We moved to Sosua. Ran a very successful learning center there. Had no parental support. Had no political support. And eventually was ripped off by the building owner.

Moved to Jamao. Now use a space that is rent free. There are no other foundations in Jamao. (no competition.) We give education, not material items. Children and parents must come to us and ask to receive services. We hold extremely strict rules of behavior and attendance. If one does not follow the rules, they are removed from the program. We provide a higher quality education than schools in the mountain area, so children come from far away at a great sacrifice to attend classes.

The town is small. We use church space. There is little or no crime. Who would rob a church? We have had disagreements with a church official and 2 politicians. The community members side with the foundation - even preparing a huelga to fight for us.

It took me years to get to this point. For 3 years I lived in a tin roof Dominican house in Jamao, just like the townspeople to gain acceptance. No one knew what resources I had behind me.

I have only superficial friendships with the locals. I realize that although I received an official recognition as "an adopted child of Jamao" in reality, I am not one of them. I will always be the gringa.

The point is, just like in business. You need to learn the culture and how to live in the culture. You will make mistakes and pay your dues. Learn from them, make changes, and move forward.

Unlike the advice above, I always ask opinions of those who do similar things - some on a larger scale - and I ask (have an advisory committee of) locals. I don't always take their opinion and they know that I have the ultimate say, but I always listen, because they may see some aspect that I don't consider.

In the end, time is the best teacher. Anyone who arrives on DR soil and thinks they can be successful immediately is taking a huge gamble and only fooling him/herself.

Lindsey

 

[windeguy]

I've posted this before, but deserves to be reposted:

[Wet Blanket Alert]

• Do not take advice from anyone who has never been in business successfully whether the DR or elsewhere. Their advice is worthless.
  
• Do not take advice from anyone who has never started a business in the DR, successful or not. I am referring to formal, tax-registered businesses, not some freelancer doing something for petty cash.
  
• Do not start a business that can be duplicated with modest capital or effort by a local. They WILL compete with you and grind you into a pulp on price, and they *will* outhustle you.
  
• Only start a business with significant barriers to entry, whether capital, specific and rare expertise or cultural.
  
• Do not start a business that depends on revenues coming from the local economy, whether tourists, expats or Dominicans, unless the product is extremely rare or you have great expertise.
  
• To think there is some niche that locals have not figured out is to be woefully naive.
  
• Do not invest a peso into any business run by someone else without a verifiable track record of both success and honesty.
  
• Never start a business because some local says it would work.
  
• Never start a business that has significant debt that you cannot personally afford.
  
• Never start a business that is seasonal unless you can pull the plug on all costs during the off-season.
  
• Never start a business without 3 x the expected start-up costs in the bank, and do not touch that stash for personal needs.
  
• Never start a business that depends on a "Key Man" for success.
  
• Never start a business without sole signature authority on the bank account.
  
• Never start a business in the DR if you have any addiction issues, whether women, drugs or alcohol. You need clear thinking 24/7/365 without distractions.

If you look around at businesses started by expats that fail they violate one or more of the above. If you look at businesses started by expats that succeed they violate none of the above.

I would summarize this as: "Never start a business here."
And leave it at that. Imagine what Lindsey as gone through just trying to do charitable work.

 

[bob saunders]

I don't run a business, but a non-profit. There are many do-gooders around the North Coast. Maybe this will help them and I believe some concepts also apply to the discussion above about business.

I made many mistakes and learned along the way. School of hard knocks. Was not dealing with money, but human lives - high stakes.

Began behind Montellano in the Haitian communities. We gave food and medicine to the very poor.

I learned that giving things develops a dependence and over time, an unwillingness for the receiver to help himself.

We moved to Sosua. Ran a very successful learning center there. Had no parental support. Had no political support. And eventually was ripped off by the building owner.

Moved to Jamao. Now use a space that is rent free. There are no other foundations in Jamao. (no competition.) We give education, not material items. Children and parents must come to us and ask to receive services. We hold extremely strict rules of behavior and attendance. If one does not follow the rules, they are removed from the program. We provide a higher quality education than schools in the mountain area, so children come from far away at a great sacrifice to attend classes.

The town is small. We use church space. There is little or no crime. Who would rob a church? We have had disagreements with a church official and 2 politicians. The community members side with the foundation - even preparing a huelga to fight for us.

It took me years to get to this point. For 3 years I lived in a tin roof Dominican house in Jamao, just like the townspeople to gain acceptance. No one knew what resources I had behind me.

I have only superficial friendships with the locals. I realize that although I received an official recognition as "an adopted child of Jamao" in reality, I am not one of them. I will always be the gringa.

The point is, just like in business. You need to learn the culture and how to live in the culture. You will make mistakes and pay your dues. Learn from them, make changes, and move forward.

Unlike the advice above, I always ask opinions of those who do similar things - some on a larger scale - and I ask (have an advisory committee of) locals. I don't always take their opinion and they know that I have the ultimate say, but I always listen, because they may see some aspect that I don't consider.

In the end, time is the best teacher. Anyone who arrives on DR soil and thinks they can be successful immediately is taking a huge gamble and only fooling him/herself.

Lindsey

Reminds me of my old boss in the Military. Always a round table at the end of meetings where everyone had five minutes to have their say/opinion/concerns but ultimately her decision. If you couldn't say it in five minutes you needed to make an appointment with her. I think you have a great understanding of the culture you are dealing with. I have been married to a Dominicana for 19 years and live and work daily with Dominicans but there are still aspects of their culture that I learn about daily. Patience, observation, and keeping your cards close to your chest are all needed when operating any kind of business or organization in the DR. Both you and CB have great approaches for success in your types of businesses.

 

[cjewell]

I’ll be the wet blanket......... if you’re considering moving to DR, anywhere in DR, and opening a restaurant or business, forget it. If by some miracle you are successful, 5 other identical places will open near you and put you out of business.

I disliked by accident. I totally agree - DO NOT go down the restaurant road. Take it from me it is really really difficult and there isn't enough space on this thread for me to list for the OP everything to consider on that. Take AE's advice.

 

[cjewell]

The sandwich of the day here in Santiago, Santo Domingo, and Punta Cana are 160 pesos with tax included.. That's about 3.25 .. obviously those items have less profit margins than others but it definitely gets people in the door.. The restaurants are booming in the 3 areas I mentioned earlier. You bring customers in with those specials and then sell them 60 peso sodas that cost 5-6 pesos (cost).

The reason this business will work is that you can make exclusivity contracts with the franchise and nobody else can open within a certain area.. I have no doubts a Subway would work and the only reason I haven't taken initiative is that I'm already involved in too many ventures.

Whoever does it is going to be successful.. not become a millionaire, but have a thriving business in the area (considering they want to live there in the first place).

But that assumes a sandwich concept will work in Sosua and at Subway prices. Speaking as someone who had a healthy concept, sandwich/sub themed place in Sosua: you go through a hell of a lot of perishable food if you don't sell, people in a fast food format are cheap - they want to pay 200RD or less, if they are prepared to pay more they tend to hit full restaurants. Our biggest days ended up being BBQ's - definitely sold way more pork chops then subs LOL. Subways pricing in the DR is 300RD+ for a sub. I don't think it would work. If it made money it wouldn't make much after expenses.

 

[windeguy]

La Costera is available yet again. The latest attempt there lasted a month or so.

And there is a new Sandwhich/Sub shop just opened in Sosua calle Panmiga, so expect two or three more of those if it does well so they all fail.

 

[cjewell]

You know La Costera was my favourite restaurant. I remember when Franklin opened it. Early 2000's claim to fame was breakfast and his burgers. I thought best burgers and breakfast in town for the price.

He was literally that little window and 1 table.

Watching over the past 18 years as he built his business, expanded the menu, kept prices great, built out his little patio - I was proud of him and his wife and really sad to see them go. Food was so good because he was a chef to the president of Germany - a true chef.

Even sadder is what subsequent business owners did to that great little place. Maybe the next owner will get back to the original model that was how he built up.

La Costera is available yet again. The latest attempt there lasted a month or so.

And there is a new Sandwhich/Sub shop just opened in Sosua calle Panmiga, so expect two or three more of those if it does well so they all fail.

 

[dh9547]

better quality coffee shops and bread products however the reason is that there are not enough repeat customers that can provide the stability of repeat business. We can dream though.

 

[windeguy]

You know La Costera was my favourite restaurant. I remember when Franklin opened it. Early 2000's claim to fame was breakfast and his burgers. I thought best burgers and breakfast in town for the price.

He was literally that little window and 1 table.

Watching over the past 18 years as he built his business, expanded the menu, kept prices great, built out his little patio - I was proud of him and his wife and really sad to see them go. Food was so good because he was a chef to the president of Germany - a true chef.

Even sadder is what subsequent business owners did to that great little place. Maybe the next owner will get back to the original model that was how he built up.

I agree completely.

 

[cobraboy]

I don't run a business, but a non-profit. There are many do-gooders around the North Coast. Maybe this will help them and I believe some concepts also apply to the discussion above about business.

I made many mistakes and learned along the way. School of hard knocks. Was not dealing with money, but human lives - high stakes.

Began behind Montellano in the Haitian communities. We gave food and medicine to the very poor.

I learned that giving things develops a dependence and over time, an unwillingness for the receiver to help himself.

We moved to Sosua. Ran a very successful learning center there. Had no parental support. Had no political support. And eventually was ripped off by the building owner.

Moved to Jamao. Now use a space that is rent free. There are no other foundations in Jamao. (no competition.) We give education, not material items. Children and parents must come to us and ask to receive services. We hold extremely strict rules of behavior and attendance. If one does not follow the rules, they are removed from the program. We provide a higher quality education than schools in the mountain area, so children come from far away at a great sacrifice to attend classes.

The town is small. We use church space. There is little or no crime. Who would rob a church? We have had disagreements with a church official and 2 politicians. The community members side with the foundation - even preparing a huelga to fight for us.

It took me years to get to this point. For 3 years I lived in a tin roof Dominican house in Jamao, just like the townspeople to gain acceptance. No one knew what resources I had behind me.

I have only superficial friendships with the locals. I realize that although I received an official recognition as "an adopted child of Jamao" in reality, I am not one of them. I will always be the gringa.

The point is, just like in business. You need to learn the culture and how to live in the culture. You will make mistakes and pay your dues. Learn from them, make changes, and move forward.

Unlike the advice above, I always ask opinions of those who do similar things - some on a larger scale - and I ask (have an advisory committee of) locals. I don't always take their opinion and they know that I have the ultimate say, but I always listen, because they may see some aspect that I don't consider.

In the end, time is the best teacher. Anyone who arrives on DR soil and thinks they can be successful immediately is taking a huge gamble and only fooling him/herself.

Lindsey

Fantastic post.

I officially nominate this as DR1 Post of the Year.

Lindsey "gets it."

And this paragraph:

I have only superficial friendships with the locals. I realize that although I received an official recognition as "an adopted child of Jamao" in reality, I am not one of them. I will always be the gringa.

BOOM! ^THIS^^^ is it. I have had my business in Jarabacoa for 11 years and know many people here and around the country. But no matter what, I will always be the gringo and don't pretend otherwise. I don't think MotoCaribe could have survived and prospered without Alida being the cultural bridge.

But being the gringo offers another opportunity: to bring foreign ethics to life in a culture of petty corruption. I have found that Dominicans gravitate toward doing business with "the gringo" not only for money, but because that money comes with *zero* questionable ethics, behaviors or drama, AND I always leave an extra nickel on the table for the other party. Of course that reputation could be trashed by my behaviors, then I'd be one of "those" gringos that Dominicans detest.

That said, Lindsey does good work in Jamao. If you have a few spare sheckles or usable goods, she can put both to very good use.