Hello everyone!

Id like some advise... from people that are likely to tell me the truth - pitfalls - and "gotch's" that I may run into...


OK - about me.

Im an IT professional of nearly 20 years. Have always worked in IT... and it has usually paid me well.

However the area of IT I specialize in is a very narrow field - and it's collapsing. Last year I lost my job - and since then Iv been unable to find satisfactory work.

So... things are getting serious now. Going to have to sell the house to pay off debtors. That cant be helped. Even if I found a new well paid job today - that would still likely happen.


So...

After the sale of the house - and repayment to my debtors... I will still have a tidy sum of money left.

I could use this to purchase/lease a bar in Tenerife.

I am focusing on Tenerife as it is more of an all year round destination than other holiday locations - and I think I have identified a niche in the market that I could exploit.

Think: Internet bar with a difference. It would be popular with young people... and Id have no difficulty in setting up the internet service and server myself that would be needed.


Anyway... lets not get bogged down in the details of WHAT Im thinking of doing... Im much more interested in advise relating how best to do this.

Iv seen agencies offering businesses for sale in Tenerife... but have no idea how reputable they are. Any advise there is welcome...

What legal processes would I need to go through?

I assume Id need an accountant for the business - any rough guesses on costs and my liability?

What is a "reasonable" price to pay for a business in Tenerife? I realize that current business throughput will have a huge impact on that one...

Eligilabity to work... Tenerife isnt in the EU. Does this affect me? I also might be setting this up with a partner from the USA. Is that a problem? Are non-EU residents allowed to live and work there?

I have no health issues... but who knows. One day something may happen... If I am living and working in Tenerife - and contributing to their tax - I assume I will be entitled to health care. Is this correct?

Supply chain. Am I likely to be ripped off from suppliers and distributors? How would I know? Other bar operators are unlikely to tell me what they pay bottom line for consumables (drinks and food). How should I go about this?


And...

Any other concerns or suggestions you guys think I should look into.. or be aware of... will be gratefully received!


Thanks to you all in advance

You know... Im a dolt sometimes.

I should also mention that I am a UK national and (currently) resident here.


One of my questions kind of depends on that...

Keep your cash in your pocket or, if you really want to throw it away, throw it my way.
Running a bar is long hours and little reward, i know !!
Youngsters don't have big bucks to spend.
People use wifi on their phones.
Sorry, you did want honesty.

Tenerife isnt in the EU?!

Must have exiled them when we were asleep

Ah - OK I see.

It is in fact in the EU... but with various opt-out clauses.

http://forums.moneysavingexpert.com/...61&postcount=5


That explains why (for example) I could go to the Spanish mainland and bring back a suitcase of cigarettes... but am limited to 200 in Tenerife.

I was always "told" by shopkeepers and such in the island that its due to them not being in the EU.


Seems I was given a lazy explanation.

Running a bar is indeed long hours. It's been MANY years since I did it (my student days...) - but I have done it.

Youngsters DONT have big bucks to spend - thats true. Im not looking to get rich off them... just a way/reason to attract people into a bar. Lets face it.. near any beach in Tenerife - there are 100's of bars to choose from. Most have zero or half a dozen customers during the day. They are better at night - but many are still lightly used.

All I would seek to do is to give people a reason to use my bar as opposed to the seventyninequadrillion that litter the area. If you offer something unique... and "free" (for the cost of a drink ) then they have that reason.

PPL go to Tenerife to holiday. Having a drink is compulsory to most young holidaymakers... they are going to do that anyway. Im just giving them a reason to do it at my establishment...


WiFi on a phone... Hmmm. Iv got to disagree with you there. A Brit/German/Norwegian... whatever... holidaying in Tenerife is NOT likely to use a smart phones 4G internet connection. The costs are massive for internet browsing out of your country of residence. Now.. there are moves afoot to lessen the costs of this - but I expect it to remain expensive for some time to come. And even if it's not expensive... hell... even if the mobile operators went mad and made it free - I'd still expect to have a market.

You cant upload many photo's of yourself and friends having a "great time by the pool" to your facebook account on a mobile phone. The upstream service is too slow. A typical photo would take 2 minutes to load - at a guess. Providing you could bear the cost... and the 4G service was of sufficient quality in Tenerife to make the connection (it isnt... or wasnt last time I was there).

And what if you wanted to upload a video of yourself to youtube? FORGET THAT. I tried that here in the UK - with a HTC Desire (the worlds most advanced phone) - on a "strong" wireless 4G connection. It took 8 hours to upload a 2 minute video I shot...


But if I were to offer that service to people that "walked in" ... the cost being "free" to customers having a drink or light meal... (and they'd want to stay there anyway during that period - noone leaves a £400 phone just "laying around"...) ... perhaps watching the sports or even doing a little surfing...


The 20-something's Iv spoken to that I know... have all said "great idea!"... and they all come back from holiday moaning that they "couldn't get a signal" ... or some other related gripe.


If you have specialist knowledge of the entertainment/bar scene in Spain - Im all ears. I want to know.

But I do understand "new media" and [current] mobile technology and restrictions. There is a market here... Im sure of it. It's just a question on how to extract the most out of it.


Thanks

For me, eating, drinking and computers dont mix, at all. And loads of bars have free Wi-Fi now anyway, so people get out their iPads and laptops and do the things you are talking about.

But if you've done your investigating then sure go for it.

Ihave some knowledge of the bars situation in Spain, due to business connections.

Things are tough out there, the older established places who seemed to escape the downturn are now taking a bit of a beating.
They still have customers but with the spending power of many customers going down, so are the profits, and quite a few are just hanging on.

It is very expensive to employ people, so if you cannot afford staff, the hours will be long and tiring.

Most bars that have wifi give it for the price of a dring, but someone sitting with a coffee for ages while they us the tinterweb would not be a big enough earner.

I am talking about Spain not the islands, but I suppose it is the same-

you're right about the wifi - every chiringuito on our seafront has wifi - & they are temporary, just there max 5 months of the year

of course, most of the permanent bars do too

I havent been to Tenerife for some time now - a couple of years.

So no.. I havent done my research But the service was unsatisfactory when I was... and the service offered by hotels and bars was diabolical.


Once the house is sold tho... I intend taking a bargain basement 5 day... week... "holiday" over there to see "whats what". If things have improved alot - then I have no market. But I wont know for myself until I do get there and have a look

Thats good info - thankyou.

So your guarded advise would be... "this isnt a good idea"...

god man, youve got me to agree with u ..

there's nothing worse than going to a bar or restaurant and everyone around you is tapping away on a plastic box.

take a girl out for a drink\lunch\evening meal - ask yourself if you want to see her again before dragging out the plastic box, and she might get hers out and its better than yours !!

as I think everyone is trying to say to you - forget it, you stand more chance of selling ice cream to eskimo's.

more worrying is you are going to be paying your debtors - they usually owe you money, so perhaps you should be looking at your creditors

rgds

I agree with much of the advice given.
Even just getting set up with all the necessary documentation and permissions can be a nightmare as well as expensive and for what ?
Little more than legalised slavery when you consider the long hours and hassle involved.

I helped one close friend with a business down there who was glad to get out after less than two years after just about breaking even and that was with a captive clientele on a complex.
Another good friend who I occasionally helped, lost money, but later got involved in a successful Indian restaurant.
One guy who I knew well from the UK did exceptionally well, starting off providing good entertainment from a popular irish singer plus bingo, moved on to a much bigger bar which was packed solid every night and in no time at all he was doing little more than supervise while the money poured in.
He had lots of pub experience in the UK and knew exactly what was required, but guys like him were very much the exception, with by far the majority of bars folding up in less than a year from opening.

Another lesson there I would say. Without a fair bit of previous experience I would say a big no,no.
Newcomers to the business seem to be the ones who suffer the most as might be expected.
You'd probably have a better chance of making money sitting on your backside all day and backing the gee gees.