Almost all Nepalis who have lived in the US for couple of years have thought of owning their own business. After few drinks, one of the favorite topics is running one's own business be it a Fast food Momo, Nepali Restaurant and Bar, Nepali Night Club, IT Company, Recruiting Company, Import export company, Immigration Services, or any other business under the sun.

We see many Indian businessmen proliferating in the restaurant business hiring a large number of Nepalis, and we see many Indian recruitment companies hiring many Nepalis. So we know that it is not something that is impossible, but there is a very few Nepalese entry into the business world compared to others. Although, in recent years the numbers have increased.

The number of Nepalis residing in the US has increased dramatically following a large exodus of students and DV winners from Nepal, yet there seems to be some hesitation in starting a new business.

So what are the major barriers to entry into the business world for Nepalis? In my opinion it is mostly lack of correct information. Granted, few things like capital and /or good credit history are basic requirements, but I feel that it is the general lack of information about starting a new business that is stopping many able and aspiring Nepali businessmen from taking the initial step.

Even the hard core street smart business person coming from Nepal feels overwhelmed at the enormity of the US marketplace and the processes that make it so. Many people feel discouraged to even start looking for information since the whole process seems so overwhelming, you just don't know where to begin.

In my opinion what is lacking is an information exchange tool which is dedicated to answer such questions to make it easy for a business minded Nepali to navigate the complex maze of business startup in the US.. So, if we start this information exchange forum for sharing such ideas, then it would help out many prospective business men and women to work towards their dream business, and instead of talking about it in parties year in year out, the next time we can hear the good news that so and so has actually started their new business!

Please use this forum to share what you know so other Nepalis can also start their own businesses. If there is any professional who is knowledgeable about the legal aspects, please share what you know!

I want to start this forum with a link from the US Government website which is dedicated to helping people aspiring to start their own business http://www.sba.gov/category/navigation-structure/starting-managing-business/starting-business

this is really though provoking thread . its weired that me too think about starting about starting business pretty much each and every time i drink alcohol with my relatives and freind . i think nothing is stopping  us to start business if you think in macro way because i mean bank and loan giving company are dying to give loan to us to do something like to buy car buy house start new business  the only think that is stopping us from doing small or big business is courage,lack of risk taking behaviour, fear of being unsuccessful  ,lack of knowledge about business. i mean family man or women can't risk of being failure in anything because they have to pay the price of being bankcrupt if business fail but ya loan giving bank and company are dying to give loan to do business , to buy house to people its just individual ability to take risk is stopping i think which is normal i guess. for some reason indian are really good in doing business i have meet few indian who are really good in brain about doing business like buying stuff from toronto in cheap and selling in small country and they have huge huge amount of connection  which we don't have yet or may be we will never have . 

This is one way.

From America from various banks,
$44,000 *Rs 90 = approx Rs 40,00,000 (चालिस लाख)- paid one time 3% charge and 0% APR for 12 or 18 months(monthly interest दस हजार at 3% annual)


In Nepal,
Give loan at 36% annual interest for Rs 40,00,000 (चालिस लाख)  you get monthly interest of Rs. 1,20,000 (एक लाख बीस हजार) minus Rs 10,000. You get monthly Rs. 1,10,000. 

That interest again invest.


I have been doing this for quite a time. At the end of 12 or 18 months, I pay all the credits and get new one with 0% APR. 
 This is how I earn extra money by staying in america without doing business. I am giving loan with secure collateral.  

 ...San daai ... euta sathi le bhaneko thiyo..... "amrika ma harek sukrabaar saanjha euta business khada huncha ... shanibaar ra aitabaar failancha , maulaaucha ra sombaar dhalcha..... ani feri sukrabaar sanjha euta naya business khada huncha...." and cycle goes on.....     sayed thaha nabhayera nai kunai naya investment huna nasakeko hola.... ya sayed mathi bhaney jastai risk lina dar lagra hola.... yaha invest garna dherai tayar chan tara mehenat garna ya afu khatina kohi tayar chainan...... sayed hami alik badhi alchi bhayau? ....... sayed yaha hami maa "MA" badhi chau ra "Hami" kam cham so we donot trust each other....  sayed hamro network kam cha ra bhaako pani yeh falano le testo garecha bhanera dakarne dherai chau ra kaam garera khana banaune kam cham.... katti dherai shayed baa...... tesaile garo bhaako hola hae....

 Kudos San Ji,
Great thread and I appreciate your effort to bring this up. Few things that I've noticed the difference between Indians and Nepali.
Indians have a support network, whether it is money, knowledge or information. They are a tightly bonded group with each ethinicity helping the "fresh off the boat" like Gujarati and the Punjabis. Giving a startup ideas and loaning money is the key. Once they get their feet wet, they in return help the other. I think that sort of commitment makes them stronger than us. We are on our own type of nationality. We like to receive but not "give". If you don't believe this, then let's see how many of the successful Nepali business men/women will contribute to this thread. We know for sure, Sajha is still popular among all Nepali overseas and many of them visit this site and keep a low profile that includes successful ones.
Folks, let us hear your success story. You'll be helping fellow Nepali.

I already gave one idea of earning money when dollar is high. Please share yours too.

नेपालीहरुमा आफ्नो idea अरुले चोरला भन्ने ठुलो डर छ
Idea दिदैमा अरुले  राम्रो गर्ने नगर्ने उनीहरुको हातमा हुन्छ
like professorले पढाउदै मा सबै बिद्यार्थी first हुदैन |

नेपालीको गोर्खे बुद्धि

 San Dai,

You raised an interesting and relevant topic.  I am really interested to open a startup company here. Lately I have been doing some readings about this. Based on my findings, there are two important points: a) networking and b) resources.  I do strongly encourage to read the book  (the startup of you) written by the CEO of LinkedIn.

There are available resources out there, but we are not aware of them. We can use this sajha forum to share such information. I am  pretty impressed by Dil Fund initiative, and in the same spirit we can motiviate ourself to provide useful info/tips about opening a startup company.  If we have a dedicated thread like this, I am willing to put useful info that I come across in the future.  United we stand, divided we fall.

MNO dude,

What is the legality of your idea? How are you sending money to Nepal, where are you investing 36 % return and how you getting back to US. I don't see much legal ground to do so . If you can provide strong legal ground for doing this, I will be more than happy to collect much more from US market and invest out there. What you are doing sounds like money laundering. Please share us, how you doing it?

More light needed for Nepalese entrepreneurs

http://www.myrepublica.com/portal/index.php?action=news_details&news_id=40914

I am sending money via bank paying $40 one time . Regarding returning that money. I am not returning it back to USA. I am doing business in Nepal.
I pay monthly payment from my salary.


 

Let me know yo bank haru le loan kun basis ma pass garcha? I mean k k huna parcha loan pauna, i wanna do something on my own but lack of capital is my problem....

Talking of legit in America, USA को most banks डुबेको के ले होला कुन्नि ? where the top notch graduates work.   So, people working in wal street, please don't think that you are smart. I think oversmart to ruin the economy. They don't know who is ruling the bank.

If bank offers you loan at 3% one time, why not use that opportunity to make more money by using our brain. US gov is only interested in getting back their money. So as far as you are paying their money, who cares.

In Nepal, if you have a very good connection with good people, (who wants money immediately for their business and don't want to go through bank for few lakhs), you will definitely be carodpati in few years. There are quite a number of good people out there. Not all are Mr. Karki of Texas.

Mno bro, i am serious on this matter...yo bank le 3% ma loan kasari dincha, k ko basis ma? Tyo loan pauna k garnu parcha... Could you please spread some light on it....

credit card loan . Business is taking risk. If you take no risk, be satisfied with your salary.

 1. Business requires strong commitment and first few year, very hard work

2. If you are average / above average in education and do not have any asset, continue your education and get a good job.
3. If you are not that good in education and have some asset you can start business, it is better than working for a desi in grocery/gas/convenient store.
4. To take loan from bank you must have a good credit score. To those who want to start a small business, observe economic discipline. You need to have good credit score.
5. Decide what type of business you want to start. You must be certain of it before approaching the bank for loan.
6. Easy business for Nepalese Restaurants, gas station, grocery store and convenient store.
7. Lots of Nepalese are operating Indian type restaurant these days, this can be one approach, but think about running Chinese type restaurant (more business than Indian restaurant.)

Start from the scratch or buy an already running business

Starting from the scratch:

Starting from scratch requires some investment and don’t expect profit for first 6 months. You must have arrangement so that even if everything goes wrong, you can manage. It may take at least 6 months before starting a business if everything goes as planned.

1. What type of business you want to start. Find pro and cons of that business. Make your mind.

2. Where you want to start a business? Location is very important choose location.

3. Register a company: may cost you up to 500$, do that online or through a lawyer.

You need to rent a place. Rent a place (rental place can be found for commercial real estate through commercial realtor. They have website. Before renting a place make sure that the place has permission to run that type of business. You can ask the realtor, what type of zone is that. Some plaza allows only few specific type of business. Some business owners already have exclusive right for some type of business in some area.

1. Hire a contractor to decorate the place as per the requirement of the business.

Example of small start up, restaurants/grocery, convenient stores/dry cleaners for this type of business choice of location and ability with withstand  without any profit for first 6 months is very important.

Buying already running business

If you have some asset you can start already running business. You have to be very careful and do you own DD before buying it.

Before buying running business you have to ask yourself a question why someone wants to sell a profitable business? 

There are several reason someone wants to sell a profitable business like 
Good side ( for buyer, you)
1) The profit generated  by the business is not enough anymore ( but may be enough for you)
2) The guy ran the business for 10 years, he  have saved enough money, now wants to move to bigger one.
3) Health problem, can not commit 12 hrs in business (but you can). He want something smaller so that he can spend time with his family
4) Guy ran the business for 15 years, he is old, now wants to retire.
5) Financial problem, he is running 3 different business need to pay loan ASAp so, he wants to sell less profitable business.
6) Relocation

Bad side (for buyer, you)

1. Money losing business
2. Business is not in loss but also do of generate enough money to survive.
3. Environmental problem (if gas station)
4. Local complain 
5. Big business coming nearby in near future (guy wants to sell the business 44-5 years before)

How to avoid buying money losing business 

In order to avoid buying bad business you must do following 

1. Check the book, use the service of an registered accountant ( book can be cooked though). This will create paper work for legal action in future if necessary (you can sue the business owner for cheating you by cooking book, and also to the accountant.). You need to check at least last three years book.
2. Some business owner will say, come and stay in the shop, then you will see yourself. Never fall in this trap. They will generate all pseudo buyers who buy things from their shop just to give you wrong impression that it is making lots of transaction/profit. In the evening everything will be returned. 
To check the transaction, you need to stay outside the shop, without informing anybody, even before approaching the business seller, and count the flow of people. Calculate the average spending per person. Then calculate the profit (average 30%). You need to do this for entire opening hours of the shop. Some shops are busy in evening some are afternoon and some are in the evening. Some are busy during the weekend only but generating enough revenue.
3. If the businesses have some problem with community it can be found out from city hall or police station of the area. Your layer who will close the business on behalf of you will do this.
4. Some business owner plan things ahead. They plan, ok, I am going to sell this business in three years time I am going to cook book. They buy theirs, their relatives grocery needs from their store so that lost of revenue will be generated. Tax will be paid accordingly (so that they can show this as a evidence of store doing good business). Once they sell the business they and their relative will not shop in your store. So your revenue is down by 10%, which matters a lot))

Advantage of buying grocery store.

1. You can put all your household grocery needs in companies name so the expenses will be for company, profit will be less, you will pay less tax ( all grocery store owners do that).
2. You can generate paper work to show that you had to through away lots of things because of expiry date. So that you could not make lots of profit. You stay within the tax ceiling.
There are many things which people do but these two are very common.



Buying small gas station

Problems

Why someone wants to sell a profit making business? (See above)
gas stations have extra problems. Leaking underground tanks etc, 
Before buying gas station you must make sure that there was inspection and environmental report as required by local and federal law.

Make sure that gas tanks are of latest technology, if not guaranteed for so many years and so many years of guarantee still remaining otherwise what will happen is you buy the gas station after 5 years govt says you need to change the underground tanks, Even if the owner agreed to change you will lose some business.
These days the suppliers make fake gas delivery paper works. Seller will show you these papers works supplied by the big supplier. You have to be aware of that.
Even for gas station before approaching the commercial realtor, you need confirm the vehicle flow in and out of gas station without informing anybody.

Remember your money is yours until it is with you. If it is not with you money is not yours. So before buying any running business make sure that it is not plagued with problems. It is possible to manage even if the profit is low but it it is very difficult to survive a money losing business.

Make sure that the seller is not a fraud.

Sometime ppl play buy and sell game. They buy the business do "golmal" with it and sell the business. Your lawyer have to make sure of this the guy from which you are buying the business is not a fraud. Company history and the credit history will be helpful in this regards. Lawyers know this. But you have to ask the lawyer to make sure about this.

Sometime business owner sell their profitable business and after 6 months they open similar business nearby to you so the traffic will be diverted towards them. This is true especially for restaurants and spa/salon. This situation can be avoided by putting a Claus in the buying agreement that the seller and his immediate family (wife/daughter/son ) will not start /manage similar business within a radius of 2 miles etc). 

Never think that you can be richer overnight from business. 99% of businesses need time to make you richer.

Taking loan from bank
For a starter banks give up to 75% total capital required to bye/operate loan. Once you have business you can get business credit line with low interest rate. 
To get the loan from bank you need to have four things. So before approaching banks for loan make sure that you have all four things

1) Commitment. Because you are a start-up, banks wants to make sure that you are a serious guy.
2) Business plan: this includes which business you are going to buy, what are its revenue generation for last three years. How much are the expenses, who will be running the business. How much you will make the profit (this is the way by which banks make sure that their money will not be lost)
3. Proof of your assets
4. Buying agreement. with the seller.(You must also have your legal status in US)

If you have collateral, banks may not ask for all these things. Just a buying agreement.
So if you have 20K cash in bank. With business plan, buying agreement etc, bank may give you loan up to 13K . your total fund will be 33K

If you have 100K, you can get 65K

If you have a house, worth 200K, of which 100K is already paid. Depending upon the location and market banks may loan you up to 80K. You can use this money to buy business. Good thing about this type of business is you can keep on paying interest only as long as you want, so if the interest rate is low you can use this type of loan.
But you must have good credit score. Don’t mess with your credit score until it is absolutely necessary. Not for fun or luxury .

Buying agreement.

When you decide which business you want to buy, contact the realtor or you may hire your own realtor if the commission is from seller.

What you can get from the realtor?

Buying selling history of the business you want to buy.

1. So that you will know when was the business sold last time and for how much?

2. Or is it the original owner who is selling the business? After how many years of establishment?

3. You can ask thorough realtor why he/she is selling the business. I know answer cannot be trusted but at least you can check whether the reason is logical or not.

Beware if the guy bought the business 3(or 2 or 5) years back and wants to sell it now, 3 years is not a breakeven period. There might be some other reason.

4. Rent includes tax, maintenance /fee and insurance or not. Some time the rent is 1000$ per month, then property tax, maintenance cost/maintenance fee and insurance etc may make it 2500.Plus utilities. Check all these small details.

If you start a business after analysing all these, there is no way you can be unsuccessful .

 timi_mero_sathi

Thank you. Very informative. I'm thinking about Gas Station in the future. The inspection of gas tank was very important, never though about it. Few questions :
1. I have heard about "buying on lease" frequently used. What is all that?
2. "Rent" can be multi-layer. You pay the rent to the seller and the seller pay the rent to the previous seller. How does this work?
3. I heard the miniscule profit from selling the actual "gas" can cover basic rent and utility. How true is this? Most of the profit comes from candy, drinks and cigarette.
4. Profit from cigarett is getting low these days and is a very tighly regulated by the manufacturer. True?

Thanks again

 I heard there is a lot of money in the recruitment business. Does anyone have any idea on what you need to do to start one?

1st :Business k ho bhanne idea (interest n research )

2nd: business ko idea(What is an Idea, and How Much is it Worth?)

3rd : Ideal business !! ( vision)

"Run the business dont let it run ya! "

Jay Nepal !

 Vhotee,

For gas station 

1. Usually if the gas sale is approximately one million gallon /year, that will cover rent and utilities. you are safe. ( depends on gas price if the gas becomes  expensive you will make less money, if the gas becomes cheap you will make more money not the other way arround). Also how expensive is the rent and utilties)
2. Minimum is approx 800, 000 gallon. If a gas station can sell that much gas in a year that must be able to cobver the rent and utilities (this is for small gas station). If it cant then the either the rent is expensive or there is somehting wrong.
3. Yes money you make is by selling lotto, icecreams, sodas, water ice, propane
4. While renting a gas station there must be clear in lease aggrement  that who is responsible for what? like maintenance, environmental protection etc. If the rent is triple net everything is your responsibility. 
5. Subleasing:  lets say you rented a gas station from a origional owner. In that gas station you were making 10,000/month after working 15 hrs ( usally non 24 hrs gas stations are open that long) 10,000/month is very good money but you dont want to work that long eveyday. you have two options hire a person who will work day 7 hrs a day( you work 8 hrs a day) then you need to pay salary to that guy, the guy can steal money. after sometime you might wnna weekend break then again you need to hire a guy for that time so on and so on so you have to pay minimum 2000 a month to your staff. so your income willl be 8000/month. 
second option: Instead you decide to sublease that gas station to another guy for 5000$ /month. you dont have to work at all and you are making 5000$ a month. 
Lots of peopls are doing it, even companies are doing that.

you will be luckey if you find a gas station which gives you good profit so that you can sublease.

6. Lease to buy: it works very similar to "lease to buy" in case of a car. danger here is gas station will be in your name only in the end
7. Inspection of gas tank is done by specilised agency. If you are  renting a gas station you pay attention to who is responsible for what? how long was the inspection of gas tank. If somehting goes wrong in gas tank who will be responsible for maintenance.To whom gas tank belongs? etc.

If you are buying gs station with property(that means you own the property too) then you need environemntal inspection not older than 5 years or the requirement set by local/federal authorities.

before buying any gas station you must personally wait at some distance from gas station and count the number of traffic inside the gas station. and calculate the number of gallons sold.also how many ppl enter the stor to buy cigeratte/lotto/soda/water/propane etc. otherwise those numbers can very easily be cooked.You have to do this for at least 4 days- friday to monday.This will give you hint. And you have to make note of it. This verification will be usefull while buying and renting a gas station.

If 100 people entered the store that means approximately sale of 1000, if it is not for the payment of gas.

Timi_Mero_Sathi Ji
Thanks again.

1. So "subleasing" is the most popular method. Right? which I assume is cheaper than buying the building which probably will cost a fortune. Basically, this system works with few layers of ownership, everybody paying the previous owner. How many owners usually are associated with one station.

2. Do all the merchandise come from a single supplier?
3. How much freedom do you have to set the gas price? (I assume none) Do you get calls when they want you to change it?
4. How much do you pay your employee? (I assume it is all under the table pay)
5. Assume, I did all the research and bought one (a small one), what is the average expected net profit? I know it is very vague, but               somewhere in the ball park. What is a small anyway, doesn't it depend on the state? Some states are cheaper than others. Will I             get a small one for less than 200,000 in the Mid-West.
6. Also what is the difference between buying a franchise Vs Independent gas station. I'm assuming the cost.

Thanks