Jobs & Money Detail
Work for yourself in America
Starting up or buying your own small business in America requires money, time and energy, says Kate Baddeley
But there are plenty of reasurring success stories of those who have persevered and are now reaping the rewards to make exploring the idea of owning your own business very appealing indeed.
It is vital to realise that few businesses require a small amount of work on your behalf, you may need to be on call 24 hours a day, seven days a week and you must be prepared to roll up your sleeves and fill in when an employer is absent. If you think you've got what it takes, then you should consider applying for an E-2 Investor Treaty visa. But how do you go about the process of starting up your own business and what do you need to know?
Amanda-Jo Nicholson, managing director of Govoni International an overseas business investment specialist, explains the first step, "I would say that the very best thing a person can do is research all they can before they make the move."
"Research is key in terms of individuals being very honest with themselves on what type of business they are going to be able to run. It's not necessary to have been self-employed before the move – but people should be honest with themselves in terms of their own strengths and weaknesses – and also in what they are hoping to achieve." Nicholson is keen to emphasise how important it is to get professional advice, "They need to work with established companies that will not only guide them on the initial stages of the visa and business purchase but will be there to work with them on an on-going basis for business planning, visa renewal planning and applications, and who are able to help them re-sell their business if they choose to change the business they own."
This is important partly because the wording of the E-2 visa regulations are somewhat vague and their interpretation often requires specialist advice. "Many people don't know that you do not have to stick with the business you originally buy – you can sell that and buy another if you do not feel you made the right choice initially," says Nicholson. Motivation is a key factor for the success of any business, which is why it is a good idea to pick a business that you are passionate about. It is also important to remember that an E-2 visa doesn't gives you permanent residency – although you can renew it indefinitely, but this is reliant on your business being successful. "Once out in the US it's vital to remember that your visa is an E-2 (or L-1A) and so renewable. From day one you need to be working towards that renewal."
Bare in mind that you will need to plan some time when you initially arrive to address matters such as finding a place to live, as you may not have time to deal with such matters once your new business is in your hands. Nicholson has a great tip for success and a cheap way to grow your business and contacts, "They should aim to make contact with and attend local organisations related to their location and/or business type – such as Chambers of Commerce and Business Associations – as these can be both valuable sources of business and also provide advice from others in your local area," she says "These meetings will grow your business contacts and often lead directly to actual business". Nicholson also adds that this offers an opportunity to find new friends and help you settle in to the community. Once your business is up and running, and if the demand for your goods or service is strong enough you may be looking to expand your business.
There are two main ways this can be done as Nicholson identifies, "You can stay with one type of business and look to gain as many clients drive up sales as high as you can or you can expand in to other areas and businesses". One of the main advantages of the E-2 and L-1A visa is that the spouse can apply for an Employment Authorisation Card. Once granted they have many options: they can work in the main (visa related business), or they can set up on their own in the same or totally different field. They still have the option to simply get a job working for another company. "Many Brits have used this route to add to the services their businesses provide, for example, clients who have a Property Management Company where the spouse has then become a realtor and set up an 'affiliate' company specialising in Real Estate sales," explains Nicholson. "Of course in nearly all industries and occupations there are examinations and licensing issues to adhere to but again with good research and planning most can be set up and achieved."
Some typical businesses that Brits have started or brought include: retail gift shops, hair salons, garden and landscaping businesses and bed and breakfast inns. Paul and Gill Redman run RPM Highlands, a property management company concentrating on the care of vacation villas, pools and gardens. They have been living and working in Central Florida for two and half years and were keen to tell me their story. "We originally came to Florida to purchase a holiday home with a view to spend extended periods here in the future," says Gill "By chance we were offered the opportunity to purchase a franchise to manage 25 vacation homes on behalf of a large vacation rental company in the area of Highlands Reserve, where we had decided we wished to buy a home. This business was E2 qualifying." They purchased these 'rights' to the business with the proviso that they were granted a work visa to be able to live and work here in Florida.
The Redman's point out: "The visa process is very frustrating and the best advise we could give to anybody thinking of making a move of this type is to find a visa specialist that you are comfortable working with and stick with them, it is no use seeking advice from numerous sources as they all have their preferred way to achieve that visa on your behalf." Although on paper there is no minimum investment on an E-2 visa, in reality most people invest US$100–150,000, and a decent amount of financial security is definitely required. "Setting up, that takes a lot of patience, first of all you don't have any credit scoring and therefore don't really exist. You cannot get credit and you cannot obtain finance for vehicles or equipment to get started in business, these types of moves cannot be done on a shoestring. You will fail," explain the Redmans.
There are numerous pros and cons of running our own business say the Redmans. "We are the boss, we can make all the decisions, but the biggest con of this type of job is if you are going to do it right and give a top rate service and therefore be respected and build a sound business is it is a 365 days a year commitment. You or somebody has to be available to guest and owners 24/7 to ensure that all runs smoothly." "The best pro of the job is the people you meet. We have met and shared happy times over the last couple of years with many guests and owners, who have now become good friends, and enjoy life in the sunshine and have a good quality of life, which is what we set out to achieve."
Competition is high in the Redman's industry, but they emphasise that there are also thousands of other properties that need caring for. "We have set a limit on our company of 40 properties, that will give us and our two members of staff, and our sub-contractors a good living, but it also means that we keep control of the business. We don't want to become huge, we will never be millionaires, but we can have a good standard of living."
The Redmans certainly think they made the right decision, "We have absolutely no regrets, we just wished we had done it sooner." Tourist industries will always be big business in Central Florida and the Gulf Coast, but that is by no means your only option. Many other businesses are out there for those determined to become success stories.
For further information:
Govoni International
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