Has anyone opened a guesthouse/restaurant??

Irish Mike

Hi

Irish guy going to India to spend some time researching the above. Spent a month there earlier this year and really looking forward to spending some proper time in India.

Would love to hear of anyone's experience or that of someone they might know. Thinking of Kerala. A lease on a property may be the way to start??

Would love to hear from vdvoort, a poster on this site with some experience.

I have a registered company in Ireland, is this an advantage?

Some of this info might be on the site somewhere (had a look but didn't really find relevant threads) but if anyone wants to point me in the right direction feel free.

Thanks guys

Irish Mike

ananda2193

Many folks from other lands simply rent out a place for the season or longer and set up a restaurant or bar or hotel. Many people do this in Goa and other places like Pushkar or Manali area. And they do it on a tourist visa. Don't really know the legality of it all, but they seem to get away with it. I personally have been offered to rent places in Goa.

Irish Mike

Thanks Ananda,

I just came across an interesting thread on it

Setting up a business partnership in Kerala

not exactly what I had in mind myself, but a cautionary tale nonetheless

I plan on spending at least three months there, starting soon, during the season to get an idea of what's involved (though I know I could realistically spend three years doing this!!), with a view to starting something at the beginning of next year's season.

Speaking to a good Indian lawyer while there is obviously something I intend to do.

Any other thoughts from people?? I'd be grateful to learn of any experiences,

thanks

Irish Mike

Haylo

None. De Nada. Zilch.

There have been many threads about setting up businesses, from reading these I know that it is a complete nightmare for a foreigner, it won't even give you the right to have a visa, and it is best to do it in conjunction with an Indian business partner.

Other than that, I don't recall the detail, but you definitely want to be looking for old threads about this.

__________________
The world is mud-luscious and puddle-wonderful - E.E. Cummings, poet (1894-1962)

Irish Mike

Cheers Haylo,

A reliable Indian business partner is certainly the way to go it would seem.

But I'm really looking to hear of any personal (or close to) experience - there's plenty of conjecture out there!!

Irish Mike

Nick-H

Hmmm...

This might sound awfully silly to someone who is new to the site (and welcome, by the way ) but...

We have an absolute rule that we do not accept travel-trade members. Those who join and show, directly or indirectly, that they are, get chucked out immediately.

We do this because the site is the perpetual target of touts and underhand andvertisers, and we insist on keeping the site as free of commercial interest as is possible.

Now... that rule has been strictly applied since about a year or two ago. That did not mean that we threw out existing members who. technically, broke the rule, so long as they were prepared to post purely as individuals, and to be so discrete about any business interest they might have as to just never even think about it when on the site.

This means that, unfortunately, those of our members that do run guesthouses would have to be banned if they answered your question.

It's a bit like, I could tell you that, but then I'd have kill you.

Sorry.

Oh, and, of course, should you start a guesthouse, you mustn't mention it here either!

ananda2193

Agree that the people that I met who run seasonal places probably do it illegally. I never really inquired. Maybe they pay baksheesh to do it or they just aren't noticed. But they do it, none the less so far.


And as far as going into buissness with an Indian partner, I would be very sure that you trust the person 100% as I've heard a few stories of people being fleeced once they give over their money. And make sure that it's legally bound in stone, if that's possible in India.

Irish Mike

Thanks for the welcome Nick!

Didn't mean to be breaking rules on arrival obviously!! Sorry about that . . .

As I was saying though, I'm not part of the travel industry or otherwise, just a person with a love of India who intends going back to see if it's somewhere viable to live. It's people like yourself and others on the site I'd love to be able to talk to about it!

If you have any suggestions about how I might gather some information, or contacts outside the site that might be worth getting in touch with, I'd be delighted to hear them. There doesn't seem to be a PM facility on the site?

Totally understand the shysters' policy, a good move in keeping the site as independent as possible imo.

Well, if anyone as any 'covert' suggestions or stories I'm all ears!

Cheers,

Irish Mike

edwardseco

I know of one person who has done this for several years understanding the risk. However, that person is not a member and whether they would be willing to respond is up for grabs. They are currently in India (and didn't take me in their luggage). I get the impression its very much on the basis of #7..

Irish Mike

Hi Edwardseco,

Do you mean by 'understanding the risk' that they just went ahead and did it without a work/business visa??

Irish Mike

Nick-H

Hey, No problems... you haven't broken the rules yet .

I can go so far as admitting that a guest house is the very last thing I should like to set up, as I would expect it to be a great deal of hassle and stress, with the profitability being somewhat in doubt. Of course, if you already have experience in the catering/hospitality industry, that's a different matter altogether!

Irish Mike

Stayed in a few over the years!! But limited experience really. Pretty full-on job, I realise that!

trustindia

Opening a business in India is full of pitfalls, and a guesthouse or restuarant are probably the most difficult businesses to make a success, even if you've got experience in catering.

The logistics are sometime hard to overcome, like sourcing good produce from a consistant supplier, constant powercuts which make refridgerators next to useless in the warmth of India, vermin control, like rats and stray dogs.

The bigger problems are usually of copycat ventures, been shaken down for more rent if the place becomes a success, jealousy spilling over into actual violence, corrupt landlords, who will simply move you out when they see a earner in front of their eyes.

Then there's the legalitiy of the whole thing, it's pretty difficult to get a business visa for a small venture like a guesthouse or restuarant, not impossible but difficult.
Running a business illegally just makes no sense (though many many Indians do so) it leaves you open to all the local problems I mentioned above, and open to investigation should your venture come to the attention of the wrong people. It will almost certainly make your business non viable, as you will constantly be greasing palms, to continue trading and when they've finally had enough of you, they will just throw you out, disregarding the baksheesh arrangement you thought you had.

A partner is the way to go, but even here you have to be very very careful, a friend thought a guy he had known for some years was a good business partner, he was subsequently ripped off for a substantial amount of money, when he protested the extended family showed up gang handed and beat him up with sticks, another woman I know was taken for 20,000 GBP for a now very succesful camp in Palolem Goa, she gets a free meal a day for her trouble (no kidding) she's never seen a penny back from her investment, Another was run out of town when the restaurant he co owned, mushroomed into a money machine.
Add to this the fact you will likely pay a lot more for a lease/ rental if your non local (despite you having a local partner) and you can see starting a business after only one months time in India, is a big big step and there will be any number of hurdles in your way.

So after all the cautionary tales, you'll be relieved to hear some have done this and made a decent living out of their respective businesses. The point of my writings above was to help you approach this with eyes wide open.

I wish you well.

Irish Mike

Points taken mate, thanks.

libertycanyon

I actually do know a westerner who has "invested" in a guest house operation here in India. (No names, no locations, nothing! I hope this obeys the rules Nick )

BUT. HUGE BUT! This was after YEARS of staying in the place half the year on a tourist visa, getting to know the Indians who run it and figuring out the best arrangement for all of them. I do not know the legalities of the situation or the details of the arrangement. I don't actually know if he has given them investment money, and I actually think that they have some kind of work in exchange for room and board arrangement more than a financial one. He holds his own money and uses it for his own supplies, etc. This kind of informal arrangement, where no money really exchanges hands, sounds like the safest bet for this kind of thing.

I think most people have sort of warned you away from pursuing this independently and I would have to confer with that. Trustindia mentioned some horror stories that actually sound realistic based on my Indian family's stories and experiences. What you have to understand about India is that even if you are doing things "legally" it can be very difficult to prove that or enforce that there. I have an insane number of lawyers for in-laws in India now and they always laugh long and loud when I ask about enforcing contracts, suing people for restitution, or all the other things we totally take for granted in Western countries. These things are really hard to do in India even if you have the law on your side, and they are impossible to do if you have broken the laws already.

Everything I've heard from my Indian friends makes it sound like the other big key to any business venture is being a native from the place where the business is located. It sounded to me like this is the ONLY way to turn a profit at the thing and make it work. Indians will happily rip off other Indians who are not from the local area just as quick as they will rip-off a foreigner. Being native to the area means you can negotiate in the local dialect and you probably already know who does what and how it gets done around there. This makes a huge difference in costs and getting things done within a time frame of less than a lifetime! Imagine if my American self went to Ireland to open a guest house... then double, actually triple, and now quadruple the problems I'd face there and you see what I'm getting at.

That said, I think there must be other existing guest houses in India who would appreciate a long-term guest to offer them advice and perhaps work informally with them on the guest house operations. This is the arrangement my friend has here and everyone involved in it is really happy. This would take serious time and a no-financial-returns kind of investment on your part. I'd be VERY, VERY hesitant to give any money at all to anyone in India who you have not known for at least a few years. And even then I'd be hesitant. Western money is too much of the golden goose for many Indians to resist and as I said, the laws here are tough to enforce even under the best circumstances. Staying in a place with people you like and have learned to trust and investing your time in it seems safe and could lead to a wonderful life. Either way, you'll have an awesome time exploring India!