Seeking mentor advice business in ba

[GrantBun21]

HI ALL!!

I hope all is well and you are enjoying Buenos Aires as much as I am.

About ME- I am a recent graduate from Claremont McKenna College in Los Angeles where I received a double major in Pre-Law and Economics. I am fortunate to have lived in Barcelona, Australia, New Zealand Madrid and Paris throughout the years. I am an avid sports enthusiast having played both American Football and Basketball at University.

Instead of accepting lucrative job offers from respectable companies in the States I did what any intelligent twenty something year old would do; sell my motorcycle (last time I cried) along with all my other belongings and moved to Buenos Aires.

I know you all place tremendous value on your time so I’all be brief.

I am in the process of starting a sports nutrition business and am looking for a expat business owner to share advice on their personal experiences.

I understand if you’re too busy to answer in depth or would prefer not to discuss the topic given our lack of interactions in the past.

However, if the mentor in you has any pearls of wisdom or specific thoughts, they would be greatly appreciated. I would love to take you out to lunch, coffee, or even a beer. I am available anytime and can meet at your convenience.

Thanks in advance and I hope we can connect.


Best


Grant


GrantBunnage (at) gmail dot com

 

[Davidglen77]

Hi Grant, a question for you. Are you starting a retail business?

 

[GrantBun21]

The business is sports nutrition company. Specifically pre workout and postworkout nutritional supplements with products to promote muscle gain, fat lose, or increase energy.

 

[Davidglen77]

So you plan to manufacture these products here, or were you going to import them?

 

[GrantBun21]

I have contacted manufactures from Brazil China the United States and Germany. I intend to import the products unless there is a finacially viable regional option without compromising quality.

 

[surfing]

I have contacted manufactures from Brazil China the United States and Germany. I intend to import the products unless there is a finacially viable regional option without compromising quality.

What do you want first: the bad news or the really bad news?

Have you read the local papers in the past couple of weeks?

 

[GrantBun21]

I am well aware of the current economic enviornment here in Arg. That being said please share the really bad worst of the worst news. I love the challenge and when faced with problems I see solutions and opportunities. Thanks

 

[HeyBA]

Hey GrantBun21, as far as I understand, the really bad news is that companies that import something have to export the same value of goods. So there are stories of Honda exporting wine, elevator repair companies not being able to get parts from abroad, etc.

One of the entrepreneurs on the board could most likely go into more detail.

 

[ghost]

I have contacted manufactures from Brazil China the United States and Germany. I intend to import the products unless there is a finacially viable regional option without compromising quality.

You will have to submit all of the nutritional papers and formulas to SENASA [think FDA from hell]. Along with formal translations and scientific testing and samples. Once you submit it will take about 5 years to clear. After it clears the rules will change.
I've been down this road before be prepared for the most bizarre journey of your life. [and expensive beyond your dreams]
This is the short version.

 

[citygirl]

SENASA is a nightmare!

To the OP

While I absolutely applaud your enthusiasm, I think you are faced with several challenges. As Ghost said, getting anything approved for human consumption that you can sell, esp if you are claiming it has health benefits, would seem to me INCREDIBLY challenging.

If your business is dependent upon anything imported, you just hit a full stop. Seriously. You can't depend on anything clearing customs nor can you build a production around it when delivery times will vary from really long until never.

If you can do it with locally produced goods, you are in *slightly* better shape but will need to be vigilant about quality control and also again, expect that there will be delays in getting things done here and your suppliers will arbitrarily raise their prices.

I assume you have residency here. If not, you will need to get it or you will need a local partner as the director of your company needs to be a resident of Argentina.

You will need to set up a company - I would recommend an SRL. I would highly recommend you engage the services of an accounting firm as the tax laws here are subject to change frequently and *very* intensive on paper filings. You will spend more time paying the gov't than anything else. I assume you are aware the corp tax rate is 35% on any profits you have in addition to all the other standard taxes.

I also assume you will have employees. jajajajajaja - buckle up and prepare for a bumpy ride. Assuming you put them in blanco, you will need to arrange a medical exam for anyone prior to hiring. 13th month of salary is mandatory (payable in 2 installments, June & Dec). You will need to provide at a minimum obra social but most employees will want/expect private health insurance in any type of corp setting. 10 days of vacation is required after 1 year plus all the feriados here (I believe there are 15 this year?). Your employees are entitled to unlimited sick time. When they quit or you have to dismiss someone, it's a long process that i don't have time to explain in full but just know it's a nightmare. Your employees will expect 20% raises annually just for showing up.

If you do it en negro, you can save some but know that you will get sued sooner rather than later and you will pay out huge amounts in fines.

What else.....? Honestly, I opened a business here and the work quality was great but the paperwork, headaches, gov't interference, high taxes, inflation, etc made it impossible to grow it.

If I were you, and I'm not, I would be looking at Chile (the Chilean gov't is actually paying entrepenurs to open businesses there), Uruguay (much better banking system) or Brasil (better and more stable market albeit expensive). Argentina wouldn't even be on my radar.