Seeking mentor advice business in ba

i think the advise you are geting here is spot on.
Its refreshing to see a 20something so motivated to cross a continent and endeavour in an adventure such as yours.
This land is somewhat different. a good approach on evaluating your project is to perhaps enumerate the factors that would IMPEDE your endeavor. This is a place that is full of minefields.
Sometimes you win an astounding victory here by choosing NOT to play .
All the best to you
 
citygirl said:
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.
I think this sums up a few of the many challenges you would face if you chose to go forward with this plan. However the most recent news that I was referring to is that all imports must now undergo even more scrutiny than ever. In other words this would be the worst possible moment to open any business here which depends on imports in any way.

From The Wall Street Journal:
"Argentina this week said that beginning in February it will require all importers to file an online affidavit with its tax agency, Afip, before importing goods, providing the Argentine government an instrument to delay imports or determine what goods enter the country."
Full article here:http://online.wsj.com/article/BT-CO-20120113-706800.html

I also agree that Chile or Uruguay would be a better option for your venture. Sorry that I can't give you better news.
 
This thread is just the tip of the iceberg of the problems a company like this would face, but reading the advice here, and especially Citygirl's, a Jon Bon Jovi song kept running through my head. And particularly this line:

"SHOT!!! Doooowwwwwnnnnnn in a blaze of glory!!"

If you're not family with the song, here's the video. I'm kind of like JBJ in the video, only with less hair and more clothes.

http://www.youtube.com/watch?v=wGQOMS-W6QI
 
Agree with citygirl.

Chile is doling out money to entrepreneurs. Read up on startup Chile, next round of applications is in March. Definitely worth investigating.

Uruguay is probably the easiest country to set up in, has a more flexible banking system and less stringent import rules.

And Brazil - well, thats where the money is. Problem is, you'll need a lot of it to enter the market.

Why have you chosen Argentina? I love living here, but I have a good reason to live here. If you don't have a good reason to be here, I'm not sure it should be your first choice.
 
jp said:
Agree with citygirl.

Chile is doling out money to entrepreneurs. Read up on startup Chile, next round of applications is in March. Definitely worth investigating.

Uruguay is probably the easiest country to set up in, has a more flexible banking system and less stringent import rules.

And Brazil - well, thats where the money is. Problem is, you'll need a lot of it to enter the market.

Why have you chosen Argentina? I love living here, but I have a good reason to live here. If you don't have a good reason to be here, I'm not sure it should be your first choice.

JP-

Your post was too rational, even-tempered, and helpful. If you keep this up, you're going to start getting censored.
 
Dear all-

I can't thank you enough for all your advice knowledge and recommendations each of your contributions represents an invaluable resource.

I am Defenitely going to evaluate the business plan and microtest if the products would be commercialy profitable in both chile and Uruguay.

Why did i choose Argentina? Well I had my bag packed and wanted to go south America. At two in the morning checking for flights after copious amounts of tequila my only first class seat options were bogota or buenos aires. Easier to explain argentina than colombia to my parents and grandparents so here i am. Since I've been here I've identified the nutritional supplement industry as extremely underdeveloped and saw an opportunity to exploit.
 
Although I have no direct experience, from what I have heard City Girl could not be more on target--including about Chile. I think Uruguay is pretty good also. My theory is that Argentina is a fascist country (we'll see how much of a storm I stir up with that statement) with a certain number of families benefiting and they don't want any competition so they have enough red tape and interference to discourage any new upstart. I have had several Argentines tell me not to try it and then tell me their bad experience and how much money they lost because they did. But . . . . perhaps I could be wrong. it happened before. :)

On this subject, if you have vitamins sent in for your own use, is there a problem? I will be grateful if there is someone here with experience who can answer that for me.
 
City girl- you seem well versed and exceptionally knowledgeable in this field. I'm new to this whole forum thing and have no idea how to contact individual users.

If you have the time id love to buy you lunch and talk about this in further detail. If email is more desirable that can also work.

Mine is grantbunnage at gmail dot come

Mil de gracias
 
I looked into importing beer a few years ago; it would have been a nightmare (and now things would are worse, as others have said).

Regardless of this particular exp, after 11 years here I can tell you you DO NOT want to open a business here. Just save yourself the disappointment on top of frustration on top of more frustration. Really.
 
JoeBlow said:
I looked into importing beer a few years ago; it would have been a nightmare (and now things would are worse, as others have said).
People can't even import beer to Buenos Aires from Ushuaia & Bariloche, I can't imagine what trying to obtain a license to import beer from out of the country would be like.
 
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