Going into Business for Yourself

Some foreign retirees, with whom I talked, have the impression that running a business in Costa Rica is considerably more difficult than in the United States. The general reasons include a perception of labour relations complexities, corruption in the import / export areas and schedule / quality unreliability. This is probably true. An important cost of doing business in Costa Rica is the monthly payment to be made to the Social Security System for healthcare insurance for the employee and his family. To obviate this, some businessmen who have few employees, especially high-earning commission salesmen, don't include them in their social security reports. Instead, they consider them to be independent contractors who must make their own monthly payment to the System.

Before establishing your own business you should know that about 60% of small businesses fail within five years, many times because of poor planning or lack of funds. Before you embark on what could be a financially and emotionally sad experience, ask yourself the following questions:

Do I have a product or service that's really needed?

If you have an idea for a new product or service, try to find out whether there will be demand for it. You won't be successful by offering a product or service that you believe others will like just because you like it. People have different tastes. They may not be the same as yours. Find out what those needs are and see how you can fill them for everyone's benefit.

Do I have financial backing or money of my own that I can afford to lose?

How much money can I afford to risk without disrupting my existing regular income? That's the question. Don't risk what you can't afford to. Make sure you can satisfy your current financial needs and don't get into debt unless you're sure you can make payments on the money lent to you.

Am I happy working alone?

Many persons are loners-they prefer to work by themselves and not have too many people around them. They seem to be able to concentrate better. Others are more gregarious and feel lonely if not surrounded by other persons. Go into the type of business that fills your need to work alone or the type that requires the presence of others.