How to save money running a start up in Thailand : 21 Tips

Calacanis has wrote a post about how start up’s in America can save money – the article created a bit of a storm.

Obviously starting an internet based business in Thailand is very different compapred to the US, or any other western country in fact, especially in terms of costs needed from the outset. As I’ve set up 2 companies here in Thailand over the last 3 years, I thought I’d put some tips together on how a start up in Thailand could spend their money wisely in their early days.

1. Buy your computers from Pant Tip Plaza – Pan Tip plaza on Petchaburi Road is the biggest computer plaza I’ve ever visited – A few hundred PC shops under one roof means high competition, and stiff pricing.
2. Know what PC you want and visit Pan Tip alone to get quotes, then ask for a Thai national who is okay with bargaining to get quotes for you – 9 times out of 10 your Thai buddy will get a better price.
3. Buy 2^nd monitors for more productivity.
4. Get an office outside the central business area, but make sure it’s along the BTS (skytrain) line so everyone can reach you easily.
5. Before you order your internet connection, ask your neighbors what provider they are with and get feedback. From what I make out different ISP’s seem to deliver different speeds depending on your area, not what they promise. For the same cost, it’s a wise move to check before hand if you rely high speed net.
6. Luckily desks and chairs in Thailand are very cheap: Office Center, although have different prices in different stores, have a great selection of office furniture at very reasonable rates.
7. Hire people fresh out of uni – they are not only the cheapest, but you can also mold them into your way of thinking. Elder Thai’s are generally “set in their ways” which can be a good or bad thing depending on what position they need to fill.
8. Hire a Thai operated accountant for your company books and work permit/visa issues and get help from one of your staff with translating. You can easily save up to 500% compared to using a foreign owned company.
9. Don’t buy legal copies of software – 100b copies from Pan Tip will do the trick.
10. Ask a Thai to check out Thai Second Hand for anything super expensive.
11. Pay travel expenses – Travel is likely to cost less than $2 per day, offering to pay your staff’s travel expenses goes along way in term of them giving back that “extra” bit of effort. I’ve never heard of a Thai company do this: so be different, treat your staff well and they will likely do the same.
12. Use Google’s hosted email instead of a mail server
13. Stock a fridge full of sodas and what ever else your staff like to drink – Saves time people running down to 7-11 once or twice per day.
14. Be flexible when staff can’t work – If the staff live out of the city center and can’t use the train to get to work, it’s far more sensible to let them start early or finish later on during the day – This also saves people having excuses for being late.
15. Always start new employees on a 3 month probation period – this gives both parties an easy exit strategy if things don’t work out.
16. Don’t waste money on recruitment companies – Jobdb.com is the only site you’ll need for the technology/IT sector.
17. Only hire Thai nationals – Why pay the minimum foreign salaries when you can get an experienced Thai on nice bonuses for less. You’ll be doing Thailand a favor supporting highly skilled Thai personal.
18. Consider outsourcing some projects to India and the Philippines – We do this all the time, and have a Thai managing them.
19. Use Wordpress as your CMS for your company sites – This will save on added functionality later as there’s a good chance someone has already written a plugin for your needs.
20. Depending on your team size – Consider making a Thai an Office Manager. The rest of the staff will find it easier discussing work related issues with another Thai – This can speed up resolving any problems.
21. Set some simple instructions for the job application process: like asking them to submit a covering letter or send you examples of their work. You’ll be surprised how many can’t follow simple instructions – you can quickly add them to your delete file while dedicating more time to people who can follow and understand simple instructions.

If you have started a business in Thailand, I’d love to hear any tips you have!