How to win before you begin when starting a business in Ecuador

This week I found myself helping an Ecuadorian friend start a business.

And boy did it ring clear to me something I’ve been thinking about for a long time.

In business, especially small business, you win before you begin.

It starts with the lease, man.  (And of course the location).

If the lease is reasonable, and the location good, you can be in business a long time.

And the product, I would ONLY start a business if your product is like throwing bloody meat in a pool of piranhas.  As soon as you offer it it’s gone.

You get the picture.

If not, I would focus on something else that does sell like that.

Trust me, in a new market with a new product you’ll know quickly.

Hasta pronto, if you liked this sign up for my Ecuador Insider’s newsletter so you can check out my latest posts(not available online) on living and investing in Ecuador:

Fill in below to sign up now (you can unsubscribe at any time):

Hitting it big with the wedding business in Ecuador

If you’ve spent any time at all in Ecuador, you probably know, Ecuadorians like to party.  (And make noise in general.)

Yet at the same time I’ve had friends start businesses and complain that the rich in Ecuador are really stingy.  

It’s not that.  Ecuadorians rich and poor DO spend, probably at a higher rate per their income than North Americans.  But the key is on what?

Ecuadorians spend big on parties and special events.  

So why not profit off it?

This week I was chatting with a good friend of mine already in the business in Quito.  

In Quito, most like to hold gatherings of all types including weddings at fincas (or small farms) near Quito.  As for folks from the other big city in Ecuador, Guayaquil, they tend to prefer holding events in hotels or on the beach.  

He said the property he manages near Quito has events every week all year.  (No winters in Ecuador.)

And he said his property charges $45/person for events and that includes just the use of the premise, no food.  With a meal, often a buffet, included he charges $70/person. Liquor is separate and usually brought by the guests.

The only responsibilities of the property owner he continued is to put the tents and seats required for the event as well as a basic sound system and one employee per every 20 guests.  The employees charge around $25/day.  

He said the average event (mostly birthdays and quinceneras) has around 40-60 people.  

Weddings he hosts can often have around 300 guests.  

That’s $13,500 income in just 1 day!

He also said that all a property needs is to be well-manicured, at least an acre large, have ample parking and a gazebo or party hall along with some public bathrooms.  

The decorations and everything else the guests bring themselves.  

Definitely something I plan on checking more into 2018!

Hasta pronto, if you liked this sign up for my Ecuador Insider’s newsletter so you can check out my latest posts(not available online) on living and investing in Ecuador:

Fill in below to sign up now (you can unsubscribe at any time):

Where I’d invest $30k in Ecuador to start 2018

What would I do with $30k in Ecuador right now entering 2018?

I’d put it in a CD with the JEP credit union in Ecuador.They offer 1 year certificates of deposit earning a yearly interest of 9%.  And you can even opt to get paid the interest monthly.  

Hard to beat that.  Even countries that historically pay good interest rates are paying low now on their CD’s, Russia is paying around 4%APY and Brazil only around 3%APY.  I know, I’m invested there as well.

Anyone can open an account with them with just a passport, it’s not as strict as the normal banks.  

But I think you’d have to be stupid to invest more than $32k with them because that is the amount what deposits are insured to per depositor.  

Now I did lose money a few years back when that other credit union closed in Ecuador, the Coopera, but there is a big difference between the JEP and Coopera, the JEP is insured by the government of Ecuador, Coopera wasn’t.  

$30,000 deposited at 9%APY generates a nice income of $225 monthly.  Not a bad way to start 2018.  

And if you have more money you’d like to invest I’d consider inexpensive beach property in Ecuador.

Hasta pronto, if you liked this sign up for my Ecuador Insider’s newsletter so you can check out my latest posts(not available online) on living and investing in Ecuador:

Fill in below to sign up now (you can unsubscribe at any time):