Ways to Earn a Living Abroad Part 2

In the second part of our working abroad series we look at buying or starting a business abroad as a means to escape the UK and start a new life overseas

In part 1 of ways to make a living overseas we looked at finding employment abroad with international and overseas companies and also teaching English as a foreign language as two methods of earning a wage whilst living in a foreign country.

Other ways of funding your new life overseas if you can’t wait to leave until you retire involve setting up a business for example.  The most popular businesses expats set up overseas are in the tourism and hospitality sectors.  It’s not all fish and chips on the Costa del Sol though, some people make a living overseas with guest houses, others offer tours to locations near their new home, or set up specialist holidays for tourists like bird watching, fishing holidays or motorcycle tours. 

So, how do you go about finding or setting up a business that’s going to make you a living overseas in the tourism and hospitality industry?

Well, there are basically two ways to go about making a living abroad in the hospitality and tourism sector.  You can either buy an existing business, or you can set your own business up. 

Both methods are going to require a lot of research and footwork to make sure you make a success out of your proposed venture.  If you are buying a business abroad it is going to be very important to find out why the sellers wish to sell their business, and if you are setting your business up from scratch you need to ensure there is a market for your product or service.

Starting a business up from scratch is difficult anywhere, and if you’re considering doing it in a foreign country our advice is to take your time and carry out your research well.  It is usually something that is done after being in country for some time as you need time to get to know local customs and business practices, have a local support network and also have a handle on local prices.  There is nothing nicer to a lot of locals than a naïve Gringo, it can be a very quick way to lose your business capital! 

Whilst your idea may be relatively simple, such as offering tours over the internet to foreigners, you will still need to ensure that your itineraries are well planned, that locations can be reached at all times of the year, and that if people are coming to whale watch, the whales will actually be there when they arrive!

Setting up a new business overseas is riskier than buying a turnkey operation, but it can be a more rewarding way to make a living abroad too.

Buying an existing business abroad such as a guesthouse or bar does have its benefits though.  For starters you can go and check the books and verify turnover in order to see if your new business will enable you to live overseas in the manner you wish to.  But the prime benefit of buying an existing business is that it will enable you to make a living overseas from day 1.  However, buyer beware!  In a lot of countries you may find two sets of books operating, one for the local tax office and another for the owner, judging which one is nearer the truth can be a tricky business.  If possible you need to get independent advice to evaluate the business before you buy. 

Publications such as Daltons Weekly always have a list of businesses for sale overseas, and there are plenty of internet web sites offering overseas businesses and business brokerage services.  There are advantages and disadvantages to using business brokers when buying a business abroad.  Whilst their services while you are looking are generally free, their fee is usually built into the sale price.  Also, while they may assist you with your research, their duty of care is to the seller so they may not be too forthcoming or accurate on the financial representations perhaps.

If you are going into business abroad, speak to as many other expats who have done something similar as you can.  Look on forums, get out and about in the local community – and begin networking, you really need to get all the feedback and advice you can before you commit.  And finally, have enough capital behind you to survive at least the first two years with very little profit being realized from your business, that way you take the pressure off yourself to make the business a success – and ironically, the business is then more likely to be successful.

These links may be of use to you: -

Sunbelt Network - worldwide businesses for sale.

UK Trading Post - businesses for sale abroad.