Can´t you just spend the money? Why make youself suffer and risk your sanity on top of that?

Ahh.. I wish we had statistics on how many people ask about opening a business, how many actually do, and how many close within a year. Yeah yeah, I know the "world" stats are somewhere around 90% close within the first year. But it never ceases to amaze me how so many gringos look at Brazil with rosey-colored glasses and think everything is just brilliant in Brazil.

But from my own personal experience, a business in Brazil (and probably anywhere) is a royal pain-in-the-a$$. When you start up, you will get visits from the fire department and santitation departments that will give you a really hard time and create extra work for you to do. They may hint at money, but no one ever asked me for money. They just wanted to push their weight around. Problem is, you need them to get your permits to issue nota fiscais. They know this, and this is why they make it difficult.

In the beginning, there are a lot of "hidden costs" that will put your cost projections at a conservation 120% more than expected and probably blow-out your checking account. If you really want to pay more than you think you'll pay, BUY an established business. I can almost guarantee that you'll end up paying A LOT of money to "settle" with the employees because you can bet 99,9% of previous owners ARE'NT going to pay to settle. I really hate to say it, but that previous owner has been waiting for years to find a sucker/loser so he can pass the problems onto. As sickening as it sounds to me to even type this, this culture looks favorably on people who screw other people out of money.

Then you have to deal with lazy employees who never do anything 100% correct-- never -- even if it is as simple as closing windows correctly before closing or sending you an email reminder.

These same employees will always think that you are trying to take advantage of them, even though you are probably the only person in town that would not take advantage of them because you are a foreigner. These employees will also think nothing of making you pay twice for something. For example, you pay by the hour, but employee finishes early and you want them to do another task, they have the gall to expect to be paid twice. I have also heard of employees that think it's their "right" to take stocks, or whatever they think they are entitled to.

Opening a business in Brazil -- not worth it.
Buying an established business -- even worse!

If you open or buy a business in Brazil and you DON'T experience these problems, then you should sell the business and start playing the lottery because you are VERY lucky.

Bleeeh, give it a try and let´s have a chat 6 months from now. Just to re-iterate the point, in Brazil things are different then elsewhere.

Planning, preparation, experience (places othen then Brazil), even what is usually perceived as sufficient capital are not enough.

Many an astute and successful elsewhere gringo businessman crashed and burned here for reasons peculiar to Brazil. Hope that you manage to limit your losses and keep your sanity at the end of the trial period. Keep us posted.

Originally posted by BorisG Many an astute and successful elsewhere gringo businessman crashed and burned here for reasons peculiar to Brazil. Hope that you manage to limit your losses and keep your sanity at the end of the trial period. Keep us posted.

I totally agree with Boris, but closer to home, look at the number of Brazilian-owned businesses that open every day and close a short time later. They know the system, but they still go belly up.

Ahh.. and then you have the employee headaches. I've seen some good Brazilian employees, but the vast majority are lazy slackers who do EVERYTHING in a half-ass manner-- a real mix of laziness,  carelessness, and stupidity at the same time. I've seen employees that are too retarded to close a freaking window correctly!! I HAD an employee (by way of buying a business, I didn't hire that person) that couldn't even add 20 numbers on a piece of paper using a calculator! There were always errors. So if you're a gringo, expecting "people to be people" because we are all the same, right? WRONG! The sheer amount of stupid mistakes makes me wonder HOW these people haven't already killed themselves by accident or HOW the whole country hasn't imploded due to a major mistake.

Blee, I would give you the same recommendation that I would give anyone else: find something where you don't need business permits or employees, and your life will be a lot easier.

My 2 cents on your choice of location. Natal has a very big property market, the real estate companies and individuals who represent real estate will be alien to you. Having just bought property there it was a real shock to the system based on the european model of how to sell a house. As was said its all a bit half assed.

As for starting any sort of business where you would expect local employees to be of value, you need to think again. A Brazilian friend of ours in Natal warned us heavily against against starting a business in the NE due to the sheer lack of any shred of work ethic in the people. This can witnessed by just walking around Natal, its a nordeste thing (and i will never get it). They would grind your business plan into the ground, protected by the crazy labor laws, within a year.

Natal is well over subscribed with gyms, they are everywhere, its a difficult marketplace to try to start, unless you are offering something different, and even then most people in NE would find it too much hassle to change gyms.

My advice would be try Rio, better in every way even if its a tad more expensive, but at least the population are a bit more switched on.