Building a startup overseas. An acquisition and 100's of employees later.
blog.tripfab.com
blog.tripfab.com
Crime: Most westerners will not be ready for this. There is a much greater divide between the haves and have nots. Most people get disturbed by child beggars.
Kidnappings: Since we're on the subject of crime, this is a good topic. Kidnappings were a common occurrence where I'm from. It's bad enough where you can't even trust police officers at times. You or your family members will be in danger of this, and it can cost either a lot of money, a life, or even both depending on the country. Luckily where I'm from it was well known that elements in the military were carrying them out, so as long as you paid no one was harmed or touched; hence the professionalism. Sadly this isn't the case in most countries (especially in the Americas), where the kidnappers fail to think about the long term 'repeat business' that comes when you're smart enough to keep your 'customers' alive.
Food Cleanliness: Hygiene especially around food prep isn't all that great in the 3rd world. You definitely want to get your shots, but even that's not enough in some cases. My friend got e-coli from a 4 star hotel. Tip: don't eat street food unless you like gambling with your health.
Bribes: This is also a way of life. Not going with it can make business much harder.
I agree with others who feel the article is a bit naive sounding.
* I've lived in the US & in South America for over 20 years..
There are 3rd world countries outside of the Americas.
> Get real! Crime?
One of my really good friends was killed in an open market in Columbia. I've had two family members who were kidnapped, as well as family friends and friends who were as well. These are things I don't have to worry about as much in the US if at all.
That doesn't even count the 'mundane' crime where people just rip out necklaces from someone you know as they're stepping out of a cab... These are not things most people, who don't have some connection to a 3rd world country, are familiar with or in some cases even remotely aware of.
There's also a reason many houses of The Haves in 3rd world countries resemble fortresses.
It also doesn't help my viewpoint when we go out about town, whenever I go back home, we need several heavily tinted cars (all with drivers), of which we only ride in one, while the others serve as decoys.
Given the economy, even places that used to be alright in the 3rd world, are now becoming dangerous.
> have you dinned at you typical college campus cafeteria??
It may be dirty, but normally you won't end up in the hospital, nor are you throwing up for a weekend after one meal.
There are many subtle things that people in 1st world countries take for granted.
I am not sure what your 3rd world experiences have been, but sounds like you where on either of those two extremes and had some sort of traumatic experience.
http://en.wikipedia.org/wiki/List_of_countries_by_intentiona...
I rest my case.
Lived 20 so years in the US, 20 so years in South America, and traveled to Asia & Europe. In my whole life I been mugged a whooping 3 times, most scary one in south Dallas in plain daylight.
My points are simple: 1. Following simple common sense safety rules it is not terribly dangerous to live in a third world country. 2. You won't get sick from eating in a decent places in a 3rd world country any more than getting sick from eating at your regular cafeteria.
Have you "really" lived in Argentina?? The article is not about a developer going to a shanty town in Johanneseburg or a favella in Brazil! it is about a developer going to a nice area of Argentina where kids who can afford computers can be developers but still work for less as they have a lower cost of living.
I would argue two points though:
- If you're really adventurous and willing to take the plunge, I say you can do your research, then hop on a plane within two months at the earliest. Of course it'll be tough, but it'll be tough no matter if you did it later rather than sooner.
- While you can build a company for less overseas, one big thing you'll miss if you decide to really take your business overseas is the nice, large, homogenous U.S. market. Of course depending on the type of startup, your target market may not be geographically locked. In Singapore, you'll hear the phrase "but Singapore's market is so small!" muttered repeatedly. You could still have a startup that primarily targets the U.S. market, but you can definitely feel a disconnect that may or may not eventually impact how your product is marketed.
In the end though, I think what's really great about it is the efficiency of the experience. Immersing yourself in a new culture while building a startup will probably be one of the most life experience packed times of your life where you can grow in so many different ways in such a short amount of time. Depending on your philosophy on life, there may be nothing more appealing than this.
And maybe it's just me, but I get a sense of a very patronizing attitude towards both his employees and other cultures in general. I strongly suspect the lack of loyalty he experienced isn't just a local cultural thing.
Call me anything but patronizing towards my employees and other cultures please.
I love my employees more than anything else. They are the heart and soul of a company. My employees love to work with me, love the environment we have, and truly appreciate the type of company we are and were previously.
And about firing someone - I hire slow and fire fast. That is how I do things. Firing someone after a month in a place like Argentina can open you up for lawsuits. And like most Latin American companies the government truly favors employee rights (which is great) more than I would say the US does. You can fire someone in Latin America and it isn't uncommon for a pissed off employee to make up a fake lawsuit, state they made double then they did, say they worked for you for a year, and be strung along in court.
It's an example. Hasn't happened to me. But I was just stating that fact, as it is something I wanted to know when I came here or like any business owner would want to know.
Many countries have strong labour laws. It's the USA that's odd with it's lack of paid holiday time, "at will employment", etc. Your way might be to fire fast, but you must work within the law. You can no more ignore that law in Argentina, than you can ignore a tax law that you dislike in the USA.
In stark contrast to the US, where pretty much everything else can open you up for lawsuits.
Ugh, what a turnoff... please keep this (mostly) American silliness from other countries!
Also, if someone in your company is doing it and is being condoned, it's no longer a choice for others not to put in at least a little bit over 40 hours.
That still sounds very subjective and working environment may not be what drives people. Also, what is an American-style working environment as compared to, say, a British or French working environment? I can understand differences between low/middle/high-income working cultures, but it's tough to paint all American workers with the same brush.
- it is very lonely. How do you find like-minded people? How do you find good co-founders or team members? These things are theoretically possible, but it's already hard enough in your own country - imagine in a far-flung country where you don't know anybody.
- marketing to your own country is tough (because of the distance), marketing to your country of adoption is tougher. I was thinking of marketing to the US market because it's simply the biggest and wealthiest, but now I've decided to target my national market, as I have easier access to people here. Being able to meet your potential customers is important.
None of these things is impossible, it must be a hell of an experience, and developers are cheaper, but building a startup is already extremely hard, building a startup overseas makes it even harder.
It all depends. The only generalization that you can make is that it will be different. In the other words everywhere has advantages and disadvantages. As a start up "pilot" you have to maximise the advantages and minimise the disadvantages.
Another limiting factor is traffic. As an american, you probably love driving, but here in Brazil (again excepting São Paulo and maybe parts of the south) long drives should be avoided if at all possible, as highways are full of potholes or randomly dangerous. Also, most of the economy (and hence good employees) will be in the big cities, and these have horrible traffic in the level of London or Manhattan for nothing close to the economic output.
I would imagine stronger labour laws would be the biggest difference for an American business owner.
In that amount of time, you could take a product to market, iterate a few times, and gain considerable traction. I wouldn't trade that for cheap labor. As an entrepreneur my most precious asset is time; I can't give up a week much less 9 months without advancing the company.
It's about being on the ground, not spending every waking moment in research.
(I spent 2 months in Istanbul last year, and am spending next year there with potential long term relocation in the future. I'm currently building my reserves and doing my research.)
He doesn't say you can't start working on your idea. He's just saying you shouldn't start filling out paperwork or start building out office space. You can certainly use that time to start working on your idea, especially if the lower cost of living in another country buys you more time.
Just my 2 cent's whatever it is worth.
— d