Buying a Company in TWN targeting TWNese - your thoughts?

As a serial entrepreneur … I’m curious what companies YOU think are consistent earners in Taiwan.

I’ve run & sold several companies in disparate industries … and while I lived here in the mid 90’s, I just got back.

I’m not looking to jump into anything, but would love the opinion of those of you who’ve been here more recently.

Additionally, are there any TWN focused (English OR Mandarin) media outlets which Taiwanese use to post their business for sale… For example this is a decent one for the USA.

38 degree C
More popular than Starbucks in Taiwan

That would be 85 degrees C.

A franchise may be a good idea, however 85c is putting them closer and closer, we have 2 in Yangmei already.

Whatever kind of retail store you open, make sure it has very intense naked lightbulbs hanging over the items.

Get into the umbrella business. Oh and fortune telling, that’s going to get bigger and bigger with people losing their jobs and investments all round.

Inevitably whatever you pick, focus on TWNese, most western focused companies either give up, or change to focus on TWNese… just not enough foreigners for a lot of business, and TWNese are very focused on their own cultural preferences.

I have friends in the F&B business, with quite a variety of establishments trying to bring western flair, who even now are rethinking their strategy to bring in the TWNese business.

Whatever you decide, make sure it is a cash business. In other words, don’t get into a business were you have to extend 30, 60, or 90 day credit. (In my case, wholesale lighting, to tradesman.)
SOP with Taiwanese, run up a big tab, and then offer 50 cents on a dollar. Fuckers!!

True, it is not all of your customers that pull this shit, but if your profit margin is 20-40%, it only takes a few to fuck up the bottom line.

Bobl, I have worked in a company that used to pull this trick on our clients, lets put it down to experience. Build up big sales but on credit, then come back to the supplier to negotiate. It works both ways sometimes as the discount may be passed on to the end user, or may not.

I am not the world’s best businessman by any means, but I suggest you look at your operation as the 20-40% profit margin you are talking about are too small to cover your credit risks. Think about trying to include some upscale stuff, up and coming or limited availability stuff in your catalogue. Try and lock down on something very nice even if it is only 20% of your sales. When they try to play the game with you they will risk future revenue and pissing you off. I have worked as both a supplier and distributor and I think that is one way to handle this situation for the smaller fish.

Also have a bottom line and don’t extend credit beyond a certain amount or certain time period, even if the deal is supposedly lucrative, if you risk losing everything on one deal. Taiwan can be unstable, some people have an exit plan where they screw all their supplier for credit (after two or three years timely payments) and then f%^k off to China with all their suppliers owed monies.

Head, Good advice! Thanks. :beer: