How do guys support themselves in Argentina?
Hey guys, Borat69 here, senior member from ISG. I am thinking of moving from the UK over to BA. For me this is a huge move - it means leaving my proper career and instead maybe becoming an 'entrepreneur' of some sort.
I have NO idea what I'm going to do for money at this stage, but I do have some friends over there who seem to be doing well with their internet businesses. I wonder if there are any other opportunities though. I would love any thoughts / advice since for me this is a big difference from where I'm at right now.
Thanks.
B
Borat69 Follow the advice offered.
[QUOTE=Borat69]Hey guys, Borat69 here, senior member from ISG. I am thinking of moving from the UK over to BA. For me this is a huge move - it means leaving my proper career and instead maybe becoming an 'entrepreneur' of some sort.
Running a business in Argentina that is dependent on local labour and other imput costs is really only for the very brave or locals that are so adaptable, quick off the mark and absolutely unprincipled. The brave become the sacrificial lambs. Almost all the multi-nationals that have survived here make money by being very, very conservative in their business planning. Many have failed and retreated. And most that have survived, most times wish they were not here.
Remember these very pertinent points.
There is no rule of law. Sure it exists but as Charles Darwin observed when he was here, the judiciary are available to the highest bidder. It hasn't changed.
Circumstances change rapidly. And I mean rapidly. Impossible to have a business plan further out than a few months. In construction for example, labour costs have doubled in 12 months and sand has tripled. I am not familiar with other construction imputs but feel confident that they have increased markedly since I last costed them. So how can you do a 3 year property development and profit? Normally the developers play 'pass the parcel' with the financial risk, but in the end, someone gets burnt bigtime and in the past this has usually been foreign lenders attracted by the margins and their own cleverness. And this applies to all the businesses that I have been associated with over 18 years. Argentinos are extremely adept at not committing themselves or their money to a business deal. Period. Sure they want a big slice of the upside, but never, none of the down.
Exporting is a nightmare. I buy second-hand goods and export them. At present I have not been able to ship a container since June. Export rules are not transparent and the Argentine Customs / Aduana are adept at finding ways to fuck up shipments. Such ways can sometimes disappear on the receipt of a quoima and sometimes not, but since there are many links in the export chain, all asking for grease, who do you pay? I don't have an easy answer and in the absence of a guaranteed outcome, generally try to adhere to the rules. At the moment it is not working.
Inefficiency! In everything. So either be prepared to accept that is the way it is or don't try and set up a business.
My business works because there is only a market price for my goods, not a production cost. In effect I am in many ways isolated from the cost of production. I am affected by cost of living but since this is a relatively minor imput, I don't really worry about it.
So Borat69, endeth my imput.