FRANCHISING

• Full format stores house a market, café, and Tapping ’s restaurant, and offer catering and delivery services. Estimated investment: $130,000 • Express stores carry fewer products than New Consumer Trend full format outlets, but feature restaurants, By Michael Evans cafes, and bakeries. Estimated investment: $75,000 hanging nutritional preferences and the original outlet is the largest in the portfolio and restructuring of society are leading to houses a full-scale produce market, restaurant, • Corner stores are the perfect size for malls Cnew consumer trends in Colombia—and and coffee shop. As Alex had expected, and universities, offering organic coffees creating opportunities for expat entrepreneurs BioPlaza filled a need that bogotanos were and bakery products. Estimated investment: in the health-food market. looking for, so he decided to offer franchises. $40,000 BioPlaza is a chain of four outlets in “We recently sold our third franchise to Once the store opens, owners pay the —three of them franchised—that is three young ladies who are opening a store in parent company 4% of monthly net sales, plus seeking to exploit this demand and is now Bogotá’s Chapinero neighborhood,” Alex says. another 2% to a promotion budget, which pays for branding and market positioning. looking for franchisees. The man behind it is Alex hopes to open as many as 30 Alex von Loebell, 49, who came to Colombia franchises by 2020, and he’s set his sights Initial licenses run for a five-year period from Germany, where he had studied marketing on markets with at least 200,000 residents, and automatically renew if both parties agree and advertising, and worked in the media. including Bogotá, Cali, Medellin, Cartagena, to continue. Franchise buyers receive training He initially worked on a farm in Tenjo, just Santa Marta, and . in BioPlaza products and operating procedures, and a support team is available to help with outside Bogotá. It was a far cry from the fast- Besides selling organic fruits, vegetables, issues that arise after opening the store. paced, conference-room life he’d enjoyed for so grains, chicken, and fish, BioPlaza also long. But while selling the farm produce to a carries a large selection of packaged foods, BioPlaza has a vetting process for all handful of vegetarian restaurants, a few health supplements, and household cleaners. You’ll products—both manufactured goods and food stores, and a cooperative market, Alex saw find well-known brands such as Stash Tea organic produce—and franchisees can only sell a growing demand for organic products…and Company, Eden Foods, and Silk. approved products. “We have an investigation the need for more points of sale. department. We do not accept products that The BioPlaza restaurants serve organic include harmful substances, like Aspartame,” Increases in obesity, diabetes, and heart vegetable, fish, and chicken dishes, which Alex says. “We also have to make sure that disease have prompted many Colombians to customers can eat on-site or take home. You’ll the producer of the product meets all the abandon traditional fatty, high-carbohydrate also find a selection of homemade desserts like legal requirements to launch a product on the foods in favor of healthier meals. On-the-go carrot cake, apple pie, and chocolate cake. professionals need healthy lunch alternatives market. So, we determine the legality of the and want the convenience of prepared meals to Small neighborhood markets outsell product, and whether it fits with our organic take home for dinner. And elderly Colombians Colombia’s major supermarkets, even in urban standards.” areas. BioPlaza has met changing consumer who want to enjoy long lives are committing to BioPlaza negotiates prices and arranges needs by offering prepared meals, organic exercise regimens and nutritional foods. contracts with local producers (fruit, vegetable, produce, environmentally-friendly cleaning poultry, etc.), collects product payments from For decades, Colombians have been products, and baked goods in one convenient franchisees, and handles payments to suppliers. migrating out of rural areas and into cities. neighborhood location. Urban dwellers now make up nearly 80% For example, if you opened a BioPlaza of Colombia’s population. Dual-income Current BioPlaza stores are in some of franchise in Libano, the parent company would households are on the rise, and the middle class Bogotá’s most fashionable neighborhoods, but find local producers to supply the organic are eager to improve their lifestyles. Working Alex wants BioPlaza to reach a broader market. products you would need. Fruits and vegetables women, who want healthier food choices for “We’re employing a typical product launch come from local farms, with whom BioPlaza themselves and their families, have been the strategy. We start with a high-end clientele, has negotiated prices. It has also negotiated driving force behind the growing demand which will create more demand on the farmers. prices for packaged goods, which come from for organic products. The first BioPlaza store Then they’ll have the incentive to produce more national and international manufacturers. opened more than a decade ago in Bogotá. The and will have more products to sell,” he says. Alex estimates that most franchisees can “It starts with upper income clients, and then see a return on their investment within three will expand to middle class clients, then to years, but some owners have managed to students. We don’t want to be like Whole Foods break even faster. “The owners of the Usaquen Market, because they are very expensive. We store in Bogotá came to the break-even point want to be somewhere in the middle, between in about one year,” he says. “So now they’re Whole Foods and the neighborhood market.” starting to see a profit. In terms of time, BioPlaza offers three franchise formats. BioPlaza franchises have a good ROI.” Franchisees pay a one-time 20M peso To start earning an income right away, (approximately $10,000) franchise fee— you can opt to manage the store yourself and regardless of format—and the initial investment draw a salary. Store managers usually start out on equipment, uniforms, construction, training, at around $600 to $800 per month. The other rent, stock will vary from store to store. Each option is to keep the store as an investment, You can open a BioPlaza franchise format requires a different amount of space and letting your asset’s value grow over time. for around $50,000 number of staff.

14 International Living’s Incomes Abroad | October 2013 ThE LAST WORD By Michael Evans Finding Your Niche Business in Latin America

n 2008 I moved to Cusco, Peru, delicious regional dishes but not much opportunities in most Latin American the gateway to the spectacular else. I’ve started a garden on my patio, but countries. Incan ruins of Machu Picchu. there’s no garden center here, so I have to Staying abreast of factors like real- For 25 years, I had dreamed of start plants from seed and get soil from a estate development, foreign investments, living abroad, exploring ancient friend’s backyard. and currency rates can help you gauge cultures,I and possibly opening a business in This lack of products and services may the economic outlook of a country, but tourism. With the U.S. economy crashing sound like a big turnoff, but it doesn’t empirical data will help you understand what down around my ears, and my job on shaky have to be, especially if you want to type of business to start. It takes time to get ground, there seemed no better time to pack start a business. Recognizing business to know a new place, so it’s best to start a my bags and head out—to see if I could opportunities is as easy as looking for what’s business after you’ve lived there for a while. turn my dream into a reality. missing in your life and supplying it for Small communities, especially tourist Running a business wouldn’t just be a yourself and the community. towns, often rely on expats to help bring way to earn an income. It would also be a If you miss U.S. fashions, import clothes out their full potential. Locals often don’t great way to enrich my life abroad: a chance and open a boutique. If you can’t find a know how to cater to foreigners, or aren’t to meet other expats, chat with tourists, and good plate of spaghetti, open an Italian familiar with the latest products or services. get acquainted with natives. restaurant. And if no business sells potting Native business owners will sometimes help Cusco was a good place to start. The city soil, start a plant nursery. you get started, because they know that new operates like a well-oiled tourism machine. In Cusco, I noticed that the city has a types of enterprises will improve the entire Hotels, restaurants, and travel agencies are bevy of tours that focus on historical sites, community, including their businesses. packed into the city center. Legions of eager but nobody offered outings If you live in a tourists walk the cobbled streets. that show tourists everyday place with a large expat At least once a week, I met up with other Peruvian life. So I decided “That’s how community or loads of expats over dinner and drinks. We loved to change that. I created tourists, you probably living abroad, but, inevitably, we would a walking tour of typical it works. You have a ready-made market wind up talking about what Cusco lacked Cusco, taking visitors to see for whatever product and what types of businesses we could start the local farmers’ market, see a gap and or service you decide to fill in the gaps. an indigenous fortune to offer. But relying on There were a few pizzerias, but no place teller, and a store that sold you fill it.” foreign customers may to buy pizza by the slice. We could get a live chickens and guinea not be enough to keep a good hamburger, but only at one of the pigs. business afloat, particularly during economic party hostels. One store sold good-quality Peruvians in the travel industry downturns. clothing, but the selection wasn’t great. We eagerly promoted my tours, because they Latin Americans have more products and could find good Chilean or Argentine wines, appreciated how I had embraced their services than ever before, but many people but only at expensive tourist shops. Stalls culture. Tourists had a blast, because the will never have the money or opportunity sold DVDs, but Cusco had no cinema. tour opened a window into a world they to travel abroad. So when an expat brings And it wasn’t just Cusco. On my first would have otherwise missed. something new to a community, locals tend trip to Otavalo, Ecuador, I spent an hour Since Cusco doesn’t have a movie to jump onboard. one morning trying to find a cup of coffee. theater, a disco started showing films Almost any type of new business will Although Ecuador produces some of the every afternoon. One expat opened a deli garner locals’ interest. You could open a best coffee in the world, Ecuadorians don’t that served New York-style sandwiches— Texas-style barbeque restaurant, offer spa drink it. something locals had never had before— services, or start a cultural festival. I’ve Today I live in the small town of Líbano, and another foreigner started a newspaper met expats who’ve opened gymnasiums, in the middle of the Colombian coffee geared toward tourists. developed real estate, owned farms, and region, where I can always find a great cup That’s how it works. You see a gap rented bicycles. of java. However, I can’t find paprika or and you fill it. While laws governing So don’t be afraid to roll up your sleeves, pickles for my potato salad, and boxed wine business ownership vary by country, you hang out a shingle, and share your unique is the only option around. Restaurants serve can apply the same philosophy to identify talents, services, or products. n

44 INTERNATIONAL LIVING SEPTEMBER 2013

PG44 Last Word.indd 44 01/08/2013 10:36 INCOME OVERSEAS Riding the Tourism Wave in Popayán, Colombia By michael Evans There’s growth and opporunity in Popayán thanks to its colonial heritage.

f you’ve ever dreamed of escaping was a five-bedroom house. We lived in one caters to families and older couples. to an exotic place and opening bedroom and rented out the other rooms,” Occupying a colonial house in one of a small hotel in your retirement says Tony. “We had no staff for two years. It Popayán’s oldest neighborhoods, Hostel years, you’re not alone. But many was quite a romantic notion at the start.” Caracol radiates charm, with high ceilings, folks never get past the thought. The building was new and didn’t need classic wooden doors, and shuttered IExpats Kim Macphee and Tony Clark much renovation, so their initial cash outlay windows. Guest rooms feature hand- made the dream a reality; they got started was low. “Rent was about $400 per month, painted wall designs and beautiful original after their employer laid them off in 2006. and then we bought a few sofas, things photographs taken by Tony. Antiques, green They used their free time and severance pay for the kitchen, and about 10 beds. So we plants, and fresh flowers adorn community to map out a strategy for the future, a plan probably spent about $6,000 or $7,000. areas, and a café offers fresh pastries and that has blossomed into new enterprises and But today the hostel has 15 rooms, so we’ve coffee throughout the day. a new way of life in Popayán, Colombia. obviously invested more as the business has Tony and Kim’s entrepreneurial spirits For the first phase of their dream, they grown,” he explains. hit the bull’s-eye with two successful started a travel website, HostelTrail.com. The The process of opening a business was hotels, but they’re still striking out in new website focuses on South America and offers easier than they’d anticipated. And local directions. They recently bought a rickshaw, information about destinations, hotels, residents and business owners were eager to which guests hire for romantic tours of restaurants, and tours. The couple traveled help them figure out the process. the historic district, and they are starting a to South America to find a home base from bicycle-rental business. which to run their business. “It’s easy for The couple pays a nominal tourism tax, “We saw opportunities everywhere, assessed quarterly, but the primary business especially in Colombia, along its Caribbean foreigners to start tax is the IVA—a value-added tax—that coast and in the big cities. But the most runs 16%. Insurance costs about $250 per obvious opportunity was here in the south a business.” hostel per year and covers fire, earthquake, of the country,” Tony says. “And we got a and flood damage. good reception from the Colombians and “You really have to get started on your Kim and Tony rent the buildings that foreigners living here.” tourist visa, and then register your business house both hotels. They don’t recommend Like most expats, Tony and Kim with the Chamber of Commerce. From buying commercial property, because it can imagined living in a place that offered there, you can present your documents take 10 years or longer to sell a building in romance, not just cheap living and good to the Ministry of Exterior Relations, the historic district. Even so, commercial business opportunities. The city of Popayán and based on that, you can get a business rent is reasonable. It increases only about offered everything they were looking for, visa,” says Tony. “They make it quite 5% a year, plus the inflation rate. and more (see sidebar). easy for foreigners to start businesses. It’s Outside of work, Kim and Tony enjoy The HostelTrails.com website took off getting easier, because the government is a high quality of life without spending a like a rocket, becoming one of the top encouraging foreign investment and foreign- fortune. They recently built a home in a travel sites for Colombia, so Kim and Tony owned businesses.” gated community on the outskirts of town. decided it was time for a bricks-and-mortar Today, Hostel Trail is one of the best- The house sits on 14,000 square feet of known budget hotels in Popayán, popular

business. They opened their budget hotel land and is the first of its kind in Popayán, .c Om and named it after their website. with both Colombian and foreign travelers. because it’s completely off the grid. They chose a building at the edge of the With one successful business under their “We aren’t hippies by any stretch historic district, within walking distance of belt, Kim and Tony felt confident about of the imagination,” Tony comments. the bus terminal and airport, and steps away starting another, so in 2011 they opened But they were interested in exploring Hostel Caracol. While Hostel Trail fills a ANNER/DREAmsTI mE

from Popayán’s best restaurants. “It was green technologies. “We wanted to build LI D niche for young travelers, Hostel Caracol U a very small hostel when we opened it. It something that would look traditional—a ©

30 INTERNATIONAL LIVING JUNE 2013

PG30-31 Income Overseas.indd 30 07/05/2013 12:56 nice Spanish colonial-style house—with identification cards available to anyone with charm,” Tony says. modern conveniences, a modern oven, but a visa that extends past three months—Kim Around 30 expats live in Popayán and using alternative energies.” and Tony were able to open a bank account most own businesses. A few foreigners With the exception of a few small items, and get health insurance. The price of health operate hotels and restaurants in the historic they were able to buy all the equipment coverage varies, depending on your income district, but others have branched out into they needed—for harvesting and purifying level, but it starts at around $40 a month for traditional businesses. One man owns a chain rainwater and generating solar electricity— a policy that can cover a couple (married or of business supply stores, a Swiss woman from building-supply stores in Colombia. living together). operates a coffee farm, and a Florida retiree Today they enjoy a fully-functional house In their leisure time, Tony and Kim develops real estate. with standard appliances and fixtures, but enjoy Popayán’s thriving café culture. They After spending only a few days in they don’t have to worry about electricity or like to shop for produce in the indigenous Popayán, you can easily see how much water bills. market in the Silvia neighborhood. At opportunity exists. Stores in the shopping You can buy or build a traditional two- night, they head out for a meal at one of the mall offer name-brand clothing, but you bedroom, two-bathroom house in Popayán city’s great restaurants or enjoy a musical won’t find many small boutiques selling for $65,000 to $70,000. An unfurnished or theater performance, followed by a walk unique European and American fashions. two-bedroom, two-bathroom apartment through downtown to soak in the ambience. While the city has wonderful restaurants, rents for around $400 a month. Water, “The charm of the colonial center is what it could use more. The historic district gas, and electricity run about $80 a month keeps us here. Parque Caldas, the main has room for more hotels and gift shops, combined, and you can get high-speed square, is one of the nicest main squares and some things don’t exist at all, such as Internet service for around $40 a month. in the country. Even at night, it has such a inner-city sporting-goods stores and garden After obtaining cédulas—Colombian nice glow and vibe, with a classic colonial centers. n

A Newcomer’s Guide To coloNiAl PoPAyáN

he clopping sound of horses’ hooves still echoes through contemporary culture. You can always find a concert, recital, or art the streets of Popayán, but today the equines pull delivery opening hosted by a university department or cultural organization. T carts instead of Spanish cannons. Teatro Municipal Guillermo Valencia, housed in a Republican-era Colombians call Popayán—a city located 400 miles southwest building off the main plaza, presents year-round dance, theatrical, of Bogotá—the “white city,” because of the whitewashed colonial and music productions. It also hosts an annual gourmet food buildings that dominate its downtown. It is home to about 260,000 conference. people. You can’t help but notice large groups of young people, You’ll find plenty of consumer culture at the Campanario mall, many of whom are students at the Universidad del Cauca, founded where you can shop for name-brand fashions and electronics, grab nearly 200 years ago. a bite to eat at the food court, or see a flick at the multiscreen The university helps define the city’s atmosphere. It has a cinema. But if an afternoon in the sun sounds like a better plan, you thriving modern campus, but it also holds classes in buildings in the can throw a picnic at one of more than 40 municipal parks. historic district. Over the centuries, the school has transformed To relax and unwind, visit the thermal baths in the indigenous Popayán into an intellectual center, spawning writers, poets, and village of Coconuco, located within Parque Natural Puracé—about numerous Colombian presidents. a 30-minutes’ drive from the city. The park encompasses a vast area International tourism is a relatively new development in of wilderness peppered with volcanoes and lakes. The diversity of Popayán; most foreign tourists come to see the city’s historic homes landscapes is amazing, ranging from rainforests to deserts, and you and churches. Iglesia de San Francisco, completed in the late 18th can enjoy all types of outdoor activities, from hiking to bird watching century, is Popayán’s largest church and home to a few mummies, to volcano climbing. who hang out in the attic. The Catedral Basílica Nuestra Señora de In 2005, UNESCO named Popayán a City of Gastronomy—one la Asunción, situated in the main plaza, welcomes worshippers and of only four cities in the world to earn the distinction—so you won’t sightseers daily. Iglesia de Belén, a small chapel that sits high on a have trouble finding a delicious meal. For lunch, consider La Semilla hilltop overlooking the city, has beautiful gardens, with sculptures Escondida, where you can choose from an à la carte menu of French depicting the Stations of the Cross. dishes or a “menú del día” selection for under $4. Restaurante During Easter Holy Week, Colombian tourists descend on Tequila serves authentic Mexican tacos, burritos, and quesadillas, Popayán to enjoy its extravagant religious events. The children’s and you’re sure to relish the pastas, pizzas, and wines at El Italiano. procession is always a crowd pleaser, and music lovers enjoy the Regardless of why you visit Popayán, its distinctive charm and religious music festival, which attracts top performers from around infectious atmosphere are bound to capture your heart. Take it the world. from one who dropped in and never left. “It’s a city that’s alive, it But you don’t have to wait for Holy Week to enjoy Popayán’s lives, it’s not a museum,” says Tony Clark.

JUNE 2013 INTERNATIONAL LIVING 31

PG30-31 Income Overseas.indd 31 07/05/2013 12:57 Finance Your Business in Ireland. See Opportunity Digest on page 16. INTERNATIONAL Chile—Land of July 2014 Volume 2, No. 5 LIVING’S Opportunity for Expats By David Hammond

isit the Chilean capital, Santiago, and you’ll see college students texting on COVER STORY Incomes Vsmartphones and sipping $3 coffee drinks…restaurants that are busy every night of the week…and street traffic generously speckled with German luxury cars. Abroad After a decade of strong economic growth, a large middle class population has FUND YOUR LIFE OVERSEAS emerged, with money to spend. Many expat entrepreneurs in Chile will tell you there are more unfilled niches and less competition Create a Portfolio of than in North America or Western Europe. Edward Shelton loves life in You’ll also find start-up and operating costs Chile and runs successful for many businesses are lower in Chile. hospitality businesses there Profitable Incomes “The opportunity is taking what works in Europe and the U.S. and By Barbara Winter then adapting it to the local culture,” says Nathan Lustig, an entrepreneur n our recent trip to France, my family and I rented a from Wisconsin who now lives in Chile. “The opportunities can be in more charming house in the countryside near St. Rémy. When we efficient technologies and processes that haven’t been introduced yet. But moved on to Paris, we settled into an apartment owned by it doesn’t have to be technological. It could be as simple as providing a O quality product consistently and good customer service. In the U.S. those an American expat currently working on a project in Seattle. are the stakes for getting in the game. In Chile, that alone can make a After my siblings returned home, I went on to London where business a huge success.” I was teaching a seminar. My U.K. visit included a stay with the enterprising Debbie Cave, who runs her own public relations And if that’s not enough to get you packing your bags for Chile, company and has two permanent lodgers in her lovely home, as consider this: Expats starting businesses in Chile describe feeling well as two other bedrooms she rents out to temporary visitors. It appreciated for their efforts—as opposed to being viewed as interlopers was a return visit since I’d stayed with Debbie on a previous trip taking opportunities away from locals. The Chilean government even funds and admired her creative spirit. a grant program to encourage entrepreneurs from anywhere in the world to start their business in Chile. Continued on page 2 Continued on page 6

GOOD LOCATION FOR… Cashing in on Adventure Sports Also in This Issue… Page 3 How one online business Tourism in Santander, Colombia moved easily to Europe By Michael Evans Page 4 Spotting the business ucaramanga is one of Colombia’s most beautiful cities. Colombians potential in Sihanoukville, refer to it as the “City of Parks” because of its many green spaces. Cambodia But when tourists come to the Santander department—of which B Page 10 The American advantage Bucamaranga is the capital—they typically have one thing in mind: adventure. for owning a business in The landscape of Santander is a treasure trove of mountains, rivers, lakes, Thailand caves, and forests. Hang gliders flock to Santander to take a leap at Tumba del Alemán and soar over the . And mountain climbers drop Page 11 So many opportunities to by to go climbing and rappelling. choose from in Cotacachi, Tourist numbers to Colombia are rising. The industry has grown by about Ecuador 10% annually since 2000. And Santander ranks among Colombia’s top nine Page 14 Using your expat know-how tourist destinations. Cheap domestic airfares—as low as $30 one way between to create a business in ©Russell Agnew Bogotá and Bucaramanga—have given Colombian and foreign tourists more Costa Rica Colombia’s climate and incentive to visit Santander. Bucaramanga’s Palonegro International Airport topography make it an ideal Page 15 Keeping up with global place to set up your offers direct flights to most major Colombian cities, as well as Panama City, adventure sports business opportunities Panama. Continued on page 12 www.InternationalLiving.com GOOD LOCATION FOR…

rock climbing, rappelling, white water rafting, Cashing in on Adventure Sports kayaking, caving, horseback riding, and much more. Australian Shaun Clohesy, 36, arrived Tourism in Santander, Colombia in more than a decade ago, with Continued from page 1 the intention of spending a few months volunteering at an orphanage. He is still there Although Santander encompasses an area Colombia Paragliding offers rates their and has no plans to leave. of nearly 12,000 square miles, fewer than 20 North American competitors can’t match. viable adventure sports companies operate “Our course costs 2.5 million pesos (about Shaun played an active role in making in the department. Since many foreign $1,300),” Russell says. “You would probably San Gil the adventure sports destination it travelers prefer to do business with expat- pay about $3,000 for it elsewhere.” The cost is today. He co-founded a company called owned businesses, the door remains open for of doing business in Colombia is much lower Colombia Rafting Expeditions, which still experienced entrepreneurs in the adventure than in many paragliding hotspots, such as operates today. “I started rafting on Rio sports sector. the San Francisco Bay area. Suarez. I probably led the first 300 groups on the river. Originally, my business partner Bucaramanga is one of the world’s best Escaping Alaska and I were doing the rafting together, and I paragliding spots…not least because of its had the accommodation on the side. Then Former Alaska resident Russell Agnew, climate. “In other places, where the climate we split, and I decided to concentrate on the 43, doesn’t wait for the weekend to indulge is variable, it can take three months to finish accommodation.” his passion for paragliding. He flies almost training,” explains Russell. “We can get every day, gazing down at Bucaramanga, one someone trained here much faster because the In 2004, Shaun opened a hostel. “I started of Colombia’s most attractive cities. He’s climate is good every day.” the business with about $1,000. I rented a turned his dream into a reality…and he’s house and bought two beds and mattresses,” To attract customers, Russell and making a living at it, too. Shaun says. “Ten years ago, backpackers were Richi tapped into an established network of not looking for much. They were just happy “Before all of this, my profession was as paragliders, of which they, too, are members. to find someone who spoke English that could a graphic designer. I was making way more “Paragliding communities get closer together help them in each town. It was a rarity back money then and had great benefits, but I lived by sharing their fly sites, or their couches, then for a hostel to even exist.” in a cubical,” Russell says. “So I moved to a so to speak. ‘You try my site, and I’ll try ski town, Girdwood, Alaska, where I learned yours,’” Russell says. “Communities grow But after two years in business, things to paraglide. I was able to start a new career that way.” started to change for Shaun. “In 2006 tourism in paragliding and support myself that way.” changed in Colombia. That’s when the Russell trains 100 to 200 students from boom started. That’s when my business went In 2003, Russell met Richi Mantilla, around the world each year. “From Christmas from being just a home, with a few beds for a Colombian-born paragliding instructor, until the end of February we turn people backpackers, to a proper hostel with a staff. who was leading a group of San Francisco away because we have so much business,” Pre-2006 I had nights without any people. But Bay paragliding pilots on a tour of Alaska. Russell says. After returning to Colombia in 2005, since 2006, I haven’t had a night without at Colombia Paragliding doesn’t spend a Richi opened a flight school and hostel— least two to four people.” fortune to advertise their services. Instead, Colombia Paragliding—in his hometown of Today, Shaun’s establishment, Hostel they take advantage of free services, such Bucaramanga. And two years later, Russell Macondo, can accommodate 32 guests. Dorm as Facebook and TripAdvisor. They also moved there to manage the school. beds start at a little more than $5 a night, and place ads in Cross Country magazine, which private rooms range in price from $25-$34. “Richi needed an English-speaking costs about $450 every three months. And, instructor, someone who had been taught Russell applies his graphic design skills to Shaun continues to send his guests to in the United States method of flying,” the business, creating materials that attract Colombia Rafting Expeditions and receives Russell says. “Most of our clients do not tourists. a commission for referrals. He estimates that speak Spanish, so we need a fluent English- 85% of Macondo’s income is from hotel Bucaramanga is a cheap place for him to speaking instructor.” services and 15% from commissions from live and fly. “You do have to take a drop in various adventure tour sales. pay working here, but you have to consider the lower cost of living. The benefit is that Although more tourists come to San the living conditions are nice, the weather is Gil than in 2004, operating costs still run great, and you meet good people,” Russell relatively low. Macondo’s rent runs around says. “I’ve never paid more than $200 a $1,200 a month, a fraction of the cost hostel month for rent. Here, I spend just $400-$500 owners pay in other Colombian tourist a month, total. I’m able to save money living hotspots, such as Medellín and Cartagena, here. I live comfortably and buy whatever I where properties can cost $2,600 or more. He want.” employes four full-time and two part-time employees and pays them more than the Adventure Hub Colombian minimum wage, approximately San Gil, located two hours south of $315 a month. However, by paying more, Shaun is able to instill loyalty in his Russell Agnew has created a new life in Colombia Bucaramanga, is a town of 40,000 people with an income from paragliding where tourists enjoy mountain biking, hiking, employees, which helps solidify his success.

12 International Living’s Incomes Abroad | July 2014 GOOD LOCATION FOR…

that’s why I moved to San Gil.” Other Great Paragliding Kat agreed to fund Sites in Colombia a new mountain biking Bogotá: Close to Bogotá are the sites venture, Colombian Bike of Sopo and Guasca, both of which lie Junkies, investing $80,000 about 30 miles north of the city, attracting to get started. They pulled Bogotanos and foreign tourists, who visit out all the stops, making for day flights. their adventure bike business the best in the Valle del Cauca: This site between country. “We catered the the western and central Andes lies food from our restaurant near Palmira, the location of Cali’s and we used $3,000, international airport, which offers direct ©Shaun Clohesy flights to Miami, Madrid, Spain, and Colombia’s rivers, mountains, and canyons attract adventure full-suspension mountain sports enthusiasts from all over the world bikes. It was probably the several Latin American capital cities. highest end service in Latin Medellín: The hill of Matasanos near And the cost of living remains low in America, and we were only charging $80 or Medellín gives paragliders a bird’s San Gil, too. You can rent a nice two- or $90 for a full day,” Mike says. eye view of the city and surrounding three-bedroom apartment for less than $400 Bike Junkies took off like a rocket, with mountains. With warm weather year- a month. A couple can comfortably live on sales of $7,000 to $10,000 per month and a round, novices and experienced flyers $1,000 per month. 50% profit margin. “Eventually, I had teams always have a fly site within reach. Like most of us, Shaun wants to make of people who came from all over the world,” more money from his venture, but he earns says Mike. “I had professional mountain a decent income and, most importantly, is bikers working for me. We subsidized their faced challenges along the way. “We didn’t content in San Gil. Since arriving more than living expenses, so they could stay for free, even speak Spanish when we opened our a decade ago, Shaun has bought a house and eat for free in our restaurant, and get paid. So businesses,” Mike says, with a laugh. “And car and soon will marry. we offered first class service, even for people there are a lot of hidden costs. You need on a backpacker budget. It got really popular, to do your due diligence and make sure The adventure sports industry very fast.” you understand the tax and employment encompasses a large portion of Santander, structures here. We’re paying pension, health leaving room for more growth. For instance, But while the bike business grew, the care, all these different things. One of the the village of , located about 30 popularity of the restaurant grew even faster. most challenging things for me was to find a minutes away from San Gil, offers great Mike started seeing opportunities to expand good accountant, who could articulate what I caving and mountain biking adventures. “In in the restaurant industry, but felt saddled needed to know and give me the best advice.” this area of Santander, the adventure sport with the labor-intensive daily duties of sites are really spread out, but San Gil is like the bike business. This year, they decided The experience of moving to another the hub,” says Shaun. to sell Bike Junkies to help fund a new country and starting two new businesses has restaurant project. They sold the business to changed Mike forever, in a very positive way. “If I were going to give advice to an Ecuadorian tours company. Kat was able “Once you do it, you realize that anything is someone who is actually looking to open a to recoup her initial investment and she and possible. You can let your ideas run wild in business overseas, you have to enjoy living in Mike earned enough profit to fund their new Colombia and you can do really well. After the place,” Shaun says. “You have to like the venture. living in San Gil for a few years, and opening day-to-day parts of life. Go have a beer on the a couple of businesses, I’m not afraid to go main square and see if you like the town.” Mike and Kat’s hard work has paid off with two businesses, but they have anywhere.” Biking Success Former Seattle real estate agent Mike Anderson, 32, took a beating during the An Abundance of Adventure in Santander economic crisis. Figuring he had nothing Santander generously offers up opportunities for a variety of adventure sports…and else to lose, he sold his belongings, donned business opportunities for adventure entrepreneurs. a backpack, and headed to South America Rafting: River rafting is one of Santander’s most popular activities. Novice and to explore new cultures and business experienced rafters have a choice of three rivers, trips ranging from one-and-a-half hours opportunities. to five days, and rapids rated at levels 1-4+. Landing in San Gil in 2010, Mike and Caving: Just minutes away from San Gil, veteran spelunkers and newbie cavers his girlfriend, Kat Hiby, decided to open can explore numerous caverns, the most popular of which include Antigua Cave and a restaurant, which they named Gringo Indian Cave. Guided tours take adventurous travelers to underwater waterfalls, into bat Mike’s. Although the eatery rapidly gained chambers, and through veritable gardens of stalactite and stalagmite formations. popularity, Mike felt stuck. “My whole dream was this mountain biking thing, not working Mountain Biking: Mountain bike beginners and enthusiasts flock to San Gil to explore in a restaurant,” Mike says. “Even though the Chicamocha Canyon, one of Colombia’s most breathtaking natural wonders. Numerous restaurant was popular, I didn’t really care. I routes, at various skill levels, pass through plantations, alongside rivers, through charming just want to go out and do what I want to do, colonial towns, and past swimming holes.

International Living’s Incomes Abroad | July 2014 13 GOOD LOCATION FOR… Wanted: English-language Publishers in Colombia By Michael Evans f you dream of becoming a publishing Before leaving home, Adriaan called The Colombia Reports website receives a magnate, you should probably marry upon a few of his tech friends to help set up steady flow of traffic—up to 150,000 unique Ia Hearst rather than start an English- the website that would become Colombia visitors per month—a testament to the need language newspaper in Colombia. But find Reports (ColombiaReports.com), an online for English-language news about Colombia. the right niche for a publication and you newspaper. When he arrived in Medellín, Adriaan started Colombia Reports as an could create a profitable new business, while Adriaan and a friend went to work gathering outlet to express his passion for news, with no delivering essential information to news- information from Colombian news sources, intention of making it a commercial venture. hungry expats, travelers, and locals. translating it to English, and posting it on the Nonetheless, Colombia Reports has become Things are changing fast in Colombia. Colombia Reports site. an international source for on-the-ground During the first quarter of 2013, the number But he wasn’t always satisfied with the reporting on Colombia. of foreign visitors increased by more than accuracy of the information he found. “Many Adriaan is able to pay most Colombia 4.5% compared to Q1 2012. International of the sources are barely reliable,” Adriaan Reports expenditures from advertising sales. investors from Canada and the United States says. “So you really need to call people to With a steadily increasing readership and are bringing jobs (and foreign executives); verify facts.” growing demand for information about Colombia, Adriaan has set his sights on a newly minted trade agreement with the Today, Colombia Reports still uses a making the newspaper a profitable business. European Union promises to increase exports; few Colombian news agencies as sources, and peace talks to end the country’s conflict but it produces original news and opinion Colombia Reports has a firm foothold have already produced agreements on some articles. Adriaan writes some stories and uses in the news market, but Adriaan sees plenty critical issues. unpaid interns—young English-speaking of room for more English-language media Revitalization programs have created new writers pursuing journalism, creative writing, outlets. “There should be much more parks, museums, and transportation systems, or Latin American studies—to produce competition than there is now. I don’t find it turning “no-go” cities into cosmopolitan additional content. a healthy situation that so many people read Colombia Reports and don’t verify what we centers. Just ask the growing number of “I’m a journalist and for the first time in Medellín expats, who are witnessing an write compared to other media. There is no my life I can do journalism the way I like it, other media to verify the information with.” urban transformation that has captured not the way a boss tells me to do it,” he says. the international spotlight. Middle-class His enthusiasm has been the driving force Colombians are on the hunt for new ways to Finding a Niche that has transformed a personal project into American David Lee caught the travel improve their lives, and many are hungry to the foundation for a viable business. learn English—often through the written word. bug in 1998 while backpacking through But despite economic growth and political progress some services lag behind Five Tips for Getting Started in the demand. All these foreign tourists, expats, and business executives need information English-Language Media Business they can understand. And the country’s 1. Publish information that interests you—The level of passion you have for the new entrepreneurs and business owners are content you publish can mean the difference between success and failure. Publishing looking for ways to advertise to them. That’s requires a long-term commitment, so it’s important to sustain a positive attitude about where English-language media outlets—both what you are producing. print and online—come in. A handful of 2. Tap into your experience—Publishing or journalism experience can help you get forward-thinking expats have already jumped started in English-language media, but other skills are equally important. Marketing, on this publishing bandwagon, and they say sales, public relations, and management skills all play important roles in launching and there has never been a better time to get operating a media outlet. Apply all of your skills, personal and professional, to your started. publishing endeavor. 3. Use the talent around you—Talent abounds in places with large expat communities. Following a Passion You can usually find experienced writers, editors, graphic designers, and web When Adriaan Alsema started planning engineers eager to help you get your project off the ground, as well as young travelers a move from the Netherlands to Medellín willing to accept an internship to gain experience. in 2008, he ran into a wall of frustration 4. Seek out loyal advertisers—Small companies competing for expat business need searching for useful information. “I wanted to you as much as you need them. An advertiser willing to take a chance on a new know about the place I was going to,” Alsema publication often will continue to buy ads as readership grows. says. The news wires offered stories about 5. Listen to your readers—Feedback from readers can guide your editorial decisions macroeconomics and crime, but Alsema in the early stages, and keep you on track after your paper becomes successful. couldn’t find the material he needed to Audience input can also point you in new directions for expansion, so pay close acquaint him with his future home. attention to the way people respond to the content you produce.

12 International Living’s Incomes Abroad | July 2013 GOOD LOCATION FOR…

Europe. His lust for adventure morphed into $50,000. Since more than a desire to share his experiences with aspiring half of David’s income globetrotters, so he started a travel blog. comes from advertising More than a decade later, at the tail end sales, he’s able to spend a of an around-the-world journey, David landed lot of time doing what he in Medellín for the first time. “When I got loves most, traveling. to Medellín in 2009, I knew I wanted to stay Since David arrived there and start a blog, because I could see the in Medellín, the city has potential of the city,” David says. “I wanted found a new place on the to be associated with the city as quickly world stage. This March, as possible, so I started Medellín Living Medellín won the Urban (MedellinLiving.com) in February 2009.” Land Institute’s City of the David’s instincts were on target, because Year competition, boosting Medellín’s tourism industry grew by more the city’s image, attracting than 30% in 2009. The tourist boom has a new wave of foreigners, María Claudia Peña and Richard Emblin found that Bogotá, Colombia led to new direct flights between Fort and expanding Medellín was ripe for an English-language newspaper Lauderdale and Medellín, new mid-range and Living’s audience. “One of boutique hotels, and new restaurants offering the things that has really surprised me is the international cuisines. In short, Medellín’s influx of entrepreneurs coming to Medellin. Maria and Richard keep expenditures low tourism industry is sizzling hot. One of them has dubbed it the ‘Silicon Valley’ by outsourcing production and distribution of Latin America,” David says. and hiring freelancers for graphics and web Medellín Living focuses on stories work. Some writers get consulting fees, but that help acquaint expats with Medellín Be Your Own Boss Richard also enlists young bloggers who are and offers information visitors won’t find Canadian photojournalist Richard Emblin willing to work without pay in order to beef in travel guidebooks. Tourists can peruse arrived in Colombia in the early 1990s to up their portfolios. hotel, restaurant, and nightlife reviews, and cover the Colombian conflict. After nearly a transplants can find information about visas, The City Paper prints 12,000 copies per decade of capturing momentous images, he neighborhoods, and transportation. Feature month, but Richard and Maria estimate they accepted an offer to serve as photo director stories provide behind-the-scenes views of have at least 18,000 monthly readers. “The for El Tiempo, Colombia’s most-read daily cultural festivals, explore nearby national paper shows up in the most unusual places, newspaper. parks, and offer information about new because travelers pick it up and take it with businesses. When Richard left El Tiempo in 2006, them,” Richard says. “It has a way of moving he faced a dilemma. “I wasn’t sure what around the country.” David writes many of the articles that to do with my life,” he says. “I wasn’t very appear on Medellín Living, invites guest Starting an English-language newspaper employable on a local level, given the low bloggers to share their experiences, and had its risks back in 2006, but Richard and salaries here. So, do I go back to seeing if pays a writer $120 per month for additional Maria could see Bogotá changing in ways someone will buy a picture from me for content. Since web-hosting fees run just $15, that would attract foreign investors, expats, $400?” Medellín Living operates for less than $150 and tourists. “We understood that we were per month. After exploring job opportunities in the at least 10 years ahead of the market—we’re United States, Richard decided it was time Medellín Living earns revenue through entrepreneurs,” says Maria. for a change. He and his wife, María Claudia partnerships with other travel websites. Peña, noticed that Bogotá had a growing The City Paper makes a profit through David also still runs his travel blog and runs expat community, but no English-language advertising sales and distributes copies free a subscription website that offers travel media outlet. at hotels, restaurants, and museums. As the blogging courses and he picks up freelance expat population has grown, the need for an writing jobs. In 2012, he earned over “We saw a need and identified a English-language advertising platform has niche,” Richard says. “We decided that expanded. “There are close to 600,000 people we were more than capable of bringing who need services—not just information, but out our own publication.” So, the couple services like cell phone services, real estate launched The City Paper—a monthly print services, banking services,” Maria says. “It’s newspaper that also has an online presence all still untouched, because people still don’t (TheCityPaperBogota.com). understand that the country has changed They have built their paper into dramatically.” Colombia’s largest English-language news Although the paper has the type of publication. Based in Bogotá, The City look, feel, and content you might find in a Paper produces all original content that newspaper produced by a large publishing includes news, business, travel, sports, and house, Richard and Maria continue to operate lifestyles stories—photo-rich, as you might the business from home. The City Paper has © Eoin Bassett © Eoin expect. Maria serves as general manager— been profitable since the third issue and has dealing with business, public relations, and Expats are moving to Colombian cities like Medellín afforded its publishers the type of lifestyle and they will need English-language media to read advertising issues—while Richard holds they enjoy. down the editorial side of the paper.

International Living’s Incomes Abroad | July 2013 13 Buy into an Ecuadorian Beach Bar. See Opportunity Digest on page 17. INTERNATIONAL Medical Tourism Offers November 2014 Volume 2, No. 9 LIVING’S Overseas Opportunities By the Staff of Incomes Abroad

few decades ago, COVER STORY Incomes going abroad for Amedical or dental care, especially surgical procedures, was practically unknown. Abroad But today, fueled in part by the rising cost of health FUND YOUR LIFE OVERSEAS care in the developed world, medical tourism (including dental care) is growing by leaps and bounds…and by Persistence Pays Off: some estimates it’s already a $100-billion business Pursue Your Dreams worldwide. Kirsten and Mark Raccuia saw opportunity in making Malaysia’s excellent—and inexpensive— By Barbara Winter Expats in Latin America and Asia—where costs are medical care available to worldwide clients tories abound about books that became bestsellers after their low and health care quality authors endured multiple rejections. The early disinterest often high—have launched businesses that cater to the growing demand for Sin Harry Potter is well-known, but other favorites also medical tourism. Others—often those with medical-related training—have encountered unenthusiastic receptions from publishers. found different ways to earn a living abroad in this industry. The Tale of Peter Rabbit by Beatrix Potter was rejected so You can set up the business as something that will provide you with a many times she decided to self-publish 250 copies. It has now sold complete income…or just do enough to supplement your pension or other 45 million. Margaret Mitchell received 38 rejections before finding income source. Either way you can make a profit from your efforts, and you a publisher for Gone With the Wind. don’t need any medical tourism experience to get started. Non-fiction isn’t immune, either. Laurence Peter had 22 When Chicago residents Mark and Kirsten Raccuia moved to Penang, rejections for The Peter Principle, a book still being read and Malaysia last year, they quickly had the chance to compare Penang’s health discussed since it finally was printed in 1968. care costs with those back home. Mark had a leg injury which was causing Continued on page 2 problems. Continued on page 6

GOOD LOCATION FOR… Cutting the Cost of a Technology Also in This Issue… Page 3 From desk-bound to travel Start-up in Medellín, Colombia hound in Europe By Michael Evans Page 4 Meeting the demand hen you think of Colombian industries, you might envision for English classes in a coffee farms, textile mills, and emerald mines. But you booming Cambodian will not likely imagine gleaming high-rise office buildings W beach town filled with mobile application and computer software developers. You should…because Colombia is making its mark in the technology Page 10 Bank-roll your overseas world, and foreign companies, expat techies, and investors are goals with “crowdfunding” jumping on the bandwagon. Most expats in the tech industry are succeeding in Colombia Page 11 Beef-jerky hobby evolves in one of three ways: as owners of technology start-ups, as owners into income in Costa Rica of companies that support the tech industry, or as investors in technology businesses. Page 14 How to live rent-free

©Dreamstime.com/Carlos Mora/Spphoto ©Dreamstime.com/Carlos as you travel the globe American Conrad Egusa, 26, has found success in Colombia Medellín, Colombia’s second city, is supporting start-up companies and operating his own technology- gaining a reputation as a good place Page 16 Keeping up with global based business. “I think Medellín is, for me, about the best place in for technology with a skilled workforce opportunities the world to start a business,” he says. Continued on page 12 and low development costs www.InternationalLiving.com GOOD LOCATION FOR…

America. Most major cities have technology Cutting the Cost of a Technology malls: three- to five-story buildings packed with electronics, computer, and cellphone retailers where you can buy the latest gadgets Start-up in Medellín, Colombia and gizmos for work or play. Continued from page 1 Colombia’s Internet boom is more than a consumer trend; it is part of a government- Since arriving in Colombia, he has Medellín, home to nearly four million backed initiative—called the Live Digital become the co-owner of Colombia Reports, people, is Colombia’s second largest city. Its Plan—designed to decrease poverty by a major online English-language newspaper, valley location gives it a lovely year-round introducing technology to low-income and co-founder of ESPACIO, a Medellín- climate. And it has both colonial history and a citizens. based meeting place for entrepreneurs and bustling, business-like attitude today. In fact, co-working space. in 2012 it was named “Innovative City of the Last year, President Juan Manuel Year” by the Urban Land Institute. It is now Santos vowed to make Colombia the first “I wanted it to be like an entrepreneurial Latin American country to offer Internet center. We have two or three events a week attracting thousands of new expats who enjoy a sophisticated lifestyle, complete with fine connectivity to 100% of the population. here,” explains Conrad. “We have classes and And Colombia currently is installing new visits by venture capitalists. We try to help dining, designer boutiques, and a rich arts scene. cellphone towers and upgrading its Internet these guys as much as we can. We are a co- network with state-of-the-art fiber optic working space, but we’re kind of a hybrid.” “I see Medellín as the ultimate confluence infrastructure. His fellow American Michael Puscar, of a great place to live and a great place to invest. I call living here life on easy mode. In But what does this explosive interest 42, sees high-tech investment opportunities in technology mean for foreign entities and everywhere he turns in Colombia. the States, everything was so complicated, so difficult. Here, it’s so much easier.” individual expat business owners? Before moving in 2011, Michael founded For starters, it greatly expands existing and operated numerous tech companies, “I get access to government officials. I had lunch with the mayor; I know all the hardware and software markets. But it including Yuxi Pacific, which provides has also expanded Colombia’s knowledge content management solutions for publishers. top people in various organizations. If I have a problem, I get immediate attention. base, creating a new workforce of skilled After selling Yuxi to Blue Loop Capital in technicians and developers. 2013, he was able to focus all his attention on People treat me special. If I lived in Miami or his passion for helping young entrepreneurs Philadelphia or New York, I’d be just another And the cost of hiring them is much realize their dreams. guy on the street,” he says. lower than it would be in the U.S. Some Michael first came to Colombia at the Colombian tech companies pay engineers as “I was an entrepreneur for so many years. little as $1,000-$1,200 per month for working I worked crazy hours, slept on the couch, request of Proexport Colombia and the Agency for Cooperation and Investment of 48 hours per week. By comparison, software had sleepless nights. I think that is over,” he engineers in the United States earn an average says. “I live down here in Colombia, and I’m Medellín (ACI Medellín), an organization that seeks out investors and entrepreneurs. salary of $85,000. So establishing a business enjoying my life. So I’m much more focused in or relocating a business to Medellín can on the investment side.” Immediately, he could see the investment substantially reduce costs and increase profit Both Michael and Conrad have settled in opportunities Medellín had to offer, so he margins. Medellín, a city rising in prominence within opened GITP, an angel investment firm. It is common to find founders of start-ups who are “Think about it, if I want to hire a the tech world. Foreign and Colombian full-time developer in the States, it’s going developers operating in the city have already passionate about their products and services, but Michael has the same passion for helping to cost me $80,000, $90,000 a year,” says successfully developed and launched Michael. “If I want to hire one here, we’re products. young business owners and witnessing how their creations can change the world. talking about $20,000 a year. The difference A passion for technology and successful is profound.” “I just invested in a company that helps investing is not the only reason Michael chose His investment company, GITP works to live and do business in Medellín. “When Colombians connect with loans,” Michael says. “In the U.S., we can go look for a car with start-ups in their infancy and typically I first came to Colombia, I was supposed invests between $50,000 and $100,000. to stay a week in Bogotá and a week in and apply for a loan at the dealership. That Medellín. I landed in Medellín, and it was type of thing doesn’t exist here. You need to Expats operating technology companies almost like love at first sight,” he says. go to a bank. The company I invested in will in Colombia face many of the same cost allow you to apply for a loan online and get issues as their North American counterparts. responses from multiple banks. We’re finding Overhead costs such as rent and utilities can a lot of really interesting businesses. A lot of cost as much in major Colombian cities as in them are companies that are solving problems U.S. metropolises. that we take for granted in the States.” However, because of the low staff Technology Explosion costs, your money goes farther in Medellín, according to Conrad. In the past few years, the availability and “If you have $15,000 or $20,000 saved use of all types of technology has skyrocketed up to start a business, that will only last you in Colombia. Free trade agreements have a couple of months in a city such as San brought new technology to the market, Investor Michael Puscar has found great Francisco,” he says. “But that amount of bringing down prices to levels found in North opportunities in tech start-ups in Colombia money will last a long time here in Medellín.”

12 International Living’s Incomes Abroad | November 2014 GOOD LOCATION FOR…

The 1,900-square-foot office for for months. So if you calculate all the social Conrad’s ESPACIO has space for around 35 benefits that employees have here, the cost is people, with rents of $125 to $200 per month. higher,” he says. It’s located in the heart of the Parque Lleras, one of Medellín’s nicest neighborhoods, Nonetheless, Michael has found an and offers conference facilities, marketing abundance of reasons that make Medellín and public relations counseling, multiple a great place to do business. “While the phone lines, high-speed Internet connections, average software developer in the United investor presentations, and technical classes. States with three years of experience makes $80,000 per year plus benefits,

“The majority of the people here are ©Dreamstime.com/Noamfein that same developer in Medellín is paid developers. In general, most of the teams The modern city of Medellín is a center for about $21,000—nearly one fourth the cost. average two to three people,” Conrad says. technology development, which is a far cry from the Colombians also work a mandatory 45- more traditional industries associated with Colombia Development costs are important to hour workweek,” he says. “You do need to Conrad, too, because he has started his own calculate the costs of social welfare, which offers a suite of data tools for researchers. Internet-based public relations firm, called on average is an overhead of about 50%. They also backed Linkapedia, a unique Publicize, which he operates from ESPACIO. So you can expect the real cost to be about online encyclopedia for young learners, as By operating in Colombia, Publicize well as Míguelo Romano, a fashion line that $31,500. However, even with those costs, the can offer substantially reduced rate public manufactures high-tech clothing. benefits are clear.” relations services to start-up companies. Conrad and Michael represent the first “Traditionally, start-ups in New York and This is not the first time Michael has wave of tech pioneers to discover Medellín. Silicon Valley have to pay PR firms $10,000 established a business in a foreign country. In their wake, a flood of experienced and a month, with a six-month retainer. That’s not Colombia has its advantages, but it also has would-be investors and developers have feasible for many start-ups,” Conrad says. disadvantages, which all entrepreneurs need “But we got the price down from $10,000 a to know about in advance. “I had businesses moved into the so-called “Silicon Valley month to $399 a month.” open in China and Colombia at the same of Latin America” to make their mark in time. The salaries are basically the same,” the technology world. Michael and Conrad In just three years, Conrad has founded Michael says. have thrived professionally in their new two successful tech-related businesses in South American home, but they’ve also Medellín—and they are both turning a profit. But he warns that Colombia has a minimum three-week vacation for employees found something even more important… Opportunity in Support and the second highest number of national personal fulfillment. While the word is out holidays of any country in Latin America. about Medellín, there is still room for techies In just three years, GITP has helped seeking a low-cost labor pool to man their numerous companies enter the market, “If somebody gets sick, you have to start-ups. including Plum Analytics, a website that continue paying them, even if they’re out

Start-up Funding Options in Medellín Colombia’s lust for technology still relatively small, making it entrepreneurial development. to companies that have been has spurred the creation of easy to work your way into the Priority is given to small and operating at least one year. many start-up funding sources. network of business owners and medium enterprises. Venture Capital Firms Although many sources only offer investors. They are a friendly • iNNpulsa MiPyme—Offers A growing number of venture funding to Colombian nationals, bunch who like to help others up to $207,000 in funding capital firms are investing in start- some entrepreneurs have succeed. to businesses owned by ups in Colombia—among them circumvented the restrictions by Here is a look at a few of the Colombian nationals. Wayra Colombia, Axon Capital, partnering with a Colombian. many funding sources available in Banks and Velum Capital. Unlike private Other sources, such as venture Medellín: equity firms, venture capital capital and angel investment • Bancolombia—Provides lines Government Funding investors offer funds to help you firms, often do not discriminate of credit up to $129,000 to grow a business from the ground based on nationality. • SENA (National Service of buy equipment, raw materials, Learning—Enterprise Fund) inventory, and to make up. Oftentimes, these investors Colombia’s banking system is finances business initiatives payments to suppliers. The also allow you to use funds to sound but very conservative. that integrate entrepreneurial program extends credit to cover a wide range of costs, Many banks offer lines of credit knowledge and new business Colombian national business including salaries. from $5,000 to $130,000 to cover development. The fund owners and foreign entities Angel Investors expenses such as raw materials provides access to seed capital that have 10 employees or less and equipment, but most do not Angel investment firms, such as for resources needed for new and annual sales of at least allow borrowers to use funds to GITP or Laspartes, offer funding production units. $129,000. pay salaries. from $25,000 to $500,000. Bancoldex (Bank for Foreign BBVA—Offers lines of credit to Criteria vary. For instance, Finding funding can seem • • Trade of Colombia) is a state- purchase raw materials, buy some angel investors only offer daunting, but it gets easier owned commercial bank that equipment, or fund research. funding to Colombian citizens and once you establish yourself serves as Colombia’s export- permanent residents, while others in Colombia. Medellín’s tech • Banco de Bogotá—Provides import bank with emphasis on have no such restriction. community is growing. But it is lines of credit up to $13,000

International Living’s Incomes Abroad | November 2014 13