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Author Topic: Starting and Running a Business in the Republic of Georgia, Batumi  (Read 3364 times)

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Online Maxx2

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Still the process of starting a Mexican restaurant business in the Republic of Georgia.
Here is some of the costs and rules of doing so.


Government Regulations and Business License:
Bring the rental documents of a business rental to the government center. Then give them a email address where they can contact me. There are two fees to be paid. One for 20 GEL ($6.92). The other 55 GEL ($18.64) and I will get a business license in 4 days. Pay 200 GEL ($67.79) and will get same day service. I will become a  "entrepreneur individual" as they call it. I was told that the tax rate is one percent on all cash flow up to 100,000 GEL ($33,898). If we succeed that I will have to become a LLC and face higher taxes. My next step is to pay a visit to the Revenue Department and get the low down from them. They have a process set up online through a bank to pay them.   


Labor Costs:
The average wage for a food preparer (cook) is 450 GEL a month ($150.00). Yes, a month. I pay Ilona the woman who works for me as a scout, interpreter and helper 1,260 GEL ($427.11) a month. This enough for her to support herself and her two children. I also get her gym membership (80 GEL $27.11) at my gym. She is rather happy about that. She makes sure I get to the gym 3 days a week. So Ilona is rather motivated to make this work. No, we are not involved and never will be. The 40 year, 5 month and 4 day age difference prevents that. 


Rent, the real cost:
The number one expense to be dealt with is rent. More businesses go out of business because of rent.  Tourist season when the streets are packed with tourists starts May 1st.  After August 31st the streets really empty out of tourists. September and October is still pretty good though.


Food Service delivery:
About check that out. The customer pays 2 GEL ($0.67) to one of three delivery services to have his food delivered by scooter. Glovo, Menu.ge and Wolt.


Below is what I can get for $500 a month in rent. It is in the city center the upscale place in Batumi
















Online Maxx2

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Re: Starting and Running a Business in the Republic of Georgia, Batumi
« Reply #1 on: January 18, 2020, 03:56:52 AM »



I also am dealing with this much money to get this place going:


$1,297.50 (3,828 GEL)in Social Security
 $6000.00 in savings for set up costs. I do however got much of the items already but not the big stuff like refrigerators, stoves and furniture. These we will get used.


With rent and labor costs I am on the edge monthly income wise. The rent $500 a month is for a year. The business does not need to make much money to stay in the black. 











I got a dandy food processor that makes preparation of the doe for the tortillas really easy. We have perfected our salsa. I seem to remembered GQ saying how important that is.





Also the tortillas come out well especially after getting our tortilla press. Ilona's children love them! They ask for them by name as they have been taught the word "tortilla." We make them out of quality butter instead of lard.


We make good Mexican browned rice, Mexican potatoes (potato wedges with skin on) and Mexican beans. I got a kilo of cumin seeds, a kilo of Mexican oregano and a kilo of dried Chipotle jalapenos. We make an adobo sauce to marinate the meats and the beans. I've found the Mexican oregano really gives the salsa a real good taste.


.


.
« Last Edit: January 18, 2020, 04:59:22 AM by Maxx2 »

Online Maxx2

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Re: Starting and Running a Business in the Republic of Georgia, Batumi
« Reply #2 on: January 18, 2020, 04:07:35 AM »
Almost every restaurant here serves Mexican potatoes. I have even seen Mexican hot dogs. It is a hot dog wrapped in Lasha. Lasha is the flour wrap that shaurmas are made of. Sharma shops everywhere. They really have no Mexican food here. There is a large restaurant on the way out of town called the 'Old West'. It is decorated in a Western theme with wagon wheels and large cactus out front. But they have not much in a way of Mexican food. I ordered a chicken fajita the only Mexican food item on the menu besides the potatoes. It came without a tortilla. They just don't know how to make good Mexican food here.
« Last Edit: January 18, 2020, 05:02:25 AM by Maxx2 »

Online Maxx2

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Re: Starting and Running a Business in the Republic of Georgia, Batumi
« Reply #3 on: January 18, 2020, 04:11:30 AM »



If we rent the place pictured above I will convert the loft into a lounge. I leave the place I am living at now and save $300 a month in rent. I'll crash on the couch up in the lounge until I see if this business takes off. I'm not fancy.

Online Maxx2

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Re: Starting and Running a Business in the Republic of Georgia, Batumi
« Reply #4 on: January 18, 2020, 04:22:25 AM »



And I am down 7 more kilos. 77 kilos, 169 pounds lost so far. My goal is to lose another 29 kilos. I sure don't eat much of my food I make!





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Re: Starting and Running a Business in the Republic of Georgia, Batumi
« Reply #5 on: January 18, 2020, 04:29:50 AM »



Another food that is not know here is cornbread. Ilona has learned to make very good cornbread. She made some Friday to bring to her friends this weekend. I suggested putting something red and green into it to give it some color. Then call it Mexican cornbread. Ilona doesn't like that so she leaves it out. I told her I was the boss and she is only the decision maker. She thought that was funny.  :D 





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Re: Starting and Running a Business in the Republic of Georgia, Batumi
« Reply #6 on: January 18, 2020, 04:42:43 AM »



Not shown the photos is a wall that can be painted on. It is opposite of the brick and stone wall. The landlady said we can't touch the brick and stone wall and we wouldn't want to. Ilona knows a mural artist. I've seen her work and she is very, very good! We might have her paint some murals for us. Something like in the style of the painting below.





And we'll get some sombreros and cactuses. Maybe get a chainsaw artist to carve up some Mexican theme carving to catch the eye of passerbys. Tables can be set up on the sidewalk. Lots to do!






.

Online jone

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Re: Starting and Running a Business in the Republic of Georgia, Batumi
« Reply #7 on: January 18, 2020, 10:07:27 AM »
Maxx,

Fun news.   However, it is time to actually start your business.   Unless this is an elegant hobby, making money is the ultimate objective of any business activity.   You can't do that unless your doors are open.

Good luck.
Kissing girls is a goodness.  It beats the hell out of card games.  - Robert Heinlein

Offline fathertime

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Re: Starting and Running a Business in the Republic of Georgia, Batumi
« Reply #8 on: January 18, 2020, 06:50:25 PM »


I also am dealing with this much money to get this place going:


$1,297.50 (3,828 GEL)in Social Security
 $6000.00 in savings for set up costs. I do however got much of the items already but not the big stuff like refrigerators, stoves and furniture. These we will get used.


.
 

Damn I didn't realize that you were living on $1,297 a month SS.  I'm really pleasantly surprised you are able to have a little extra after expenses.  That really is a tight budget.   

Fathertime! 
I just happened to be browsing about the internet....

Online Maxx2

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Re: Starting and Running a Business in the Republic of Georgia, Batumi
« Reply #9 on: January 19, 2020, 01:06:37 AM »
Maxx,

Fun news.  However, it is time to actually start your business.   Unless this is an elegant hobby, making money is the ultimate objective of any business activity.   You can't do that unless your doors are open.

Good luck.


Worse comes to worse I lose $6000 (Money I set aside from savings) and go back to being the retired guy. I've got a lot to do before I open my doors for business. Things get busy here starting in May.

Offline JayH

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Re: Starting and Running a Business in the Republic of Georgia, Batumi
« Reply #10 on: January 19, 2020, 02:01:01 AM »
Maxx -- I wish you all the best and success in your venture /

Even more plaudits for  (as Australians say)  --having a go ! :clapping:

Good luck ! ;D
SLAVA UKRAYINI  ! HEROYAM SLAVA!!!!
Слава Украине! Слава героям слава!Слава Україні! Слава героям!
 translated as: Glory to Ukraine! Glory to the heroes!!!  is a Ukrainian greeting slogan being used now all over Ukraine to signify support for a free independent Ukraine

Online Maxx2

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Re: Starting and Running a Business in the Republic of Georgia, Batumi
« Reply #11 on: January 19, 2020, 02:20:46 AM »
Maxx -- I wish you all the best and success in your venture /

Even more plaudits for  (as Australians say)  --having a go ! :clapping:

Good luck ! ;D


Thanks JayH! It is fun but a little stressful plotting all of this. Tomorrow I pick up Ilona and we will go to the gym and do our workouts. Monday is chest and triceps day. The push muscles. I keep a detailed notebook of my progress in regard to weights and repetitions. It is Sunday early afternoon now. I've been fasting since Friday night. I'll break my fast after my workout session at the gym tomorrow (early afternoon). Ilona wants to make tacos afterwards. I have some Chipotle chicken with their adobo sauce in the refrigerator. She thought it was too strong but the tortillas, lettuce and tomato tend to soften the spiciness of it. Tuesday will be the Revenue Service visit for getting the instructions on taxes.

Online Maxx2

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Re: Starting and Running a Business in the Republic of Georgia, Batumi
« Reply #12 on: January 19, 2020, 05:28:23 AM »
 

Damn I didn't realize that you were living on $1,297 a month SS.  I'm really pleasantly surprised you are able to have a little extra after expenses.  That really is a tight budget.   

Fathertime!


Thanks Fathertime for being pleasantly surprised I can make it on $1297 a month. It is considered big money over here. I am the only guy I know who is paying lifetime spousal support out of his SS to his American ex-wife of 20 years. I should be getting about $600 more. And I'll will need to report my income to the IRS. And my bank account to the Department of Treasury if more than $10,000 runs through it. I was restricted to starting a business outside the US until I reached full retirement age (66). If I did my my SS would be cut off. Americans are the least free people in the world! When I step back and look at the big picture I am hesitant about getting involved with any of this. My government is my biggest enemy! Such stress thinking about all the ways that bad can happen to me! Maybe GQ is right? Yet, I have to push forward. Why? Out of all of this I hope to find a good woman.

Online Maxx2

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Re: Starting and Running a Business in the Republic of Georgia, Batumi
« Reply #13 on: January 19, 2020, 05:32:34 AM »
Yet, I have to push forward. Why? Out of all of this I hope to find a good woman.


Interestedly recently I've had three women taking an interest in me.

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Re: Starting and Running a Business in the Republic of Georgia, Batumi
« Reply #14 on: January 19, 2020, 02:38:21 PM »
Out of all of this I hope to find a good woman.


The way to a woman's heart is through her stomach! Get that restaurant opened!
There are people that will pass info about you and your family. Do not share info about yourself or share photos as they can search for you on the internet and distribute what they found since they are allowed to participate here.

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Re: Starting and Running a Business in the Republic of Georgia, Batumi
« Reply #15 on: January 20, 2020, 01:50:29 AM »
At a time when flights from the biggest tourist supply ( Russia) are banned and I see how some of the busiest restaurant qtrs of Tblisi are DEAD in winter...I wonder at your plan but kudos for trying.

We'll be back, EU ..and as a certain 'gentleman' couldn't accept my offer to 'bury the hatchet' .. Don't trust a clueless Californian 'business owner' who cannot even quote me, honestly ..

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Re: Starting and Running a Business in the Republic of Georgia, Batumi
« Reply #16 on: January 20, 2020, 06:35:31 AM »

Thanks Fathertime for being pleasantly surprised I can make it on $1297 a month. It is considered big money over here. I am the only guy I know who is paying lifetime spousal support out of his SS to his American ex-wife of 20 years. I should be getting about $600 more. And I'll will need to report my income to the IRS. And my bank account to the Department of Treasury if more than $10,000 runs through it. I was restricted to starting a business outside the US until I reached full retirement age (66). If I did my my SS would be cut off. Americans are the least free people in the world! When I step back and look at the big picture I am hesitant about getting involved with any of this. My government is my biggest enemy! Such stress thinking about all the ways that bad can happen to me! Maybe GQ is right? Yet, I have to push forward. Why? Out of all of this I hope to find a good woman.

 
High five Maxx for your new project, 
Nice idea,
Wish you the best for the incoming season.
 
I couldn't believe that you are still paying to your ex wife spousal support, disgusting western states who consider men as slaves !
Read : "Operation white panther"
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Offline GQBlues

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Re: Starting and Running a Business in the Republic of Georgia, Batumi
« Reply #17 on: January 20, 2020, 09:49:48 AM »
.. Such stress thinking about all the ways that bad can happen to me! Maybe GQ is right?

I don't give a rat's arse where my sentiment lies in everyone's mind, maxx. Just based on your posted situation, I personally feel the prospect is not a very good one, much less promising. But whatever you do, I wish you the very best of all possibilities you embark upon.

For one...

Yet, I have to push forward. Why? Out of all of this I hope to find a good woman.

That, in of itself, tells me you're doing this for all the wrong reason. If nothing else, your priorities are backwards at best, if not downright destructive.

If finding a good woman is your ultimate goal, then put all your honest energy in that instead. What's wrong with that approach?
~1. Because of 'man', global warming is causing desert and arid areas to suffer long, dry spell.
2. The 2018 Camp Fire and Woolsey California wildfires are forests burning because of global warming
~

msmob  (Yes, he really said these)

Online Maxx2

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Re: Starting and Running a Business in the Republic of Georgia, Batumi
« Reply #18 on: January 20, 2020, 10:47:41 AM »
But whatever you do, I wish you the very best of all possibilities you embark upon.


Thanks!


Whether I succeed in this or fail in it, it is not the end of the world for me. Interestedly for me, is you are on the same side as Moby!  :D  Except an important difference... you wish me well... he doesn't.

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Re: Starting and Running a Business in the Republic of Georgia, Batumi
« Reply #19 on: January 20, 2020, 02:04:01 PM »

Thanks!


Whether I succeed in this or fail in it, it is not the end of the world for me. Interestedly for me, is you are on the same side as Moby!  :D  Except an important difference... you wish me well... he doesn't.

Maxx,

As ever, you aren't reading people well.. I'd be MORE than happy to be proven wrong .. I said KUDOS  to you for trying
We'll be back, EU ..and as a certain 'gentleman' couldn't accept my offer to 'bury the hatchet' .. Don't trust a clueless Californian 'business owner' who cannot even quote me, honestly ..

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Re: Starting and Running a Business in the Republic of Georgia, Batumi
« Reply #20 on: January 20, 2020, 03:13:08 PM »
Whether I succeed in this or fail in it, it is not the end of the world for me.


You're right. Most businesses fail and if this restaurant doesn't succeed, you still have guaranteed money coming from the pension you get. You will be able to save up again and open up another Tex Mex restaurant. It took Edison 10,000 attempts to get the light bulb working right and he proved to everybody he could get it done. Edison wasn't too bright(no pun intended). You're smarter than Edison and should be able to open a successful Tex Mex restaurant in half the attempts!
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Re: Starting and Running a Business in the Republic of Georgia, Batumi
« Reply #21 on: January 20, 2020, 03:15:22 PM »
I couldn't believe that you are still paying to your ex wife spousal support, disgusting western states who consider men as slaves !


It's quite common to split pension rights in the West.  Men can get out of that by paying a lump sum at the time of settlement, if the woman agrees.  Factors which ameliorate the payment are the wife's pension income (if she had one, he would be entitled to a share of her pension), length of marriage, and whether or not the wife worked.


Good luck, Maxx.  I assume you will need to purchase a lot more kitchen equipment.  If you can restrict your lease to one year, do so.  In your shoes, I'd probably try for a fast food type model, or a stand, rather than a sit down location.


This post was composed without the aid of google.
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Offline ML

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Re: Starting and Running a Business in the Republic of Georgia, Batumi
« Reply #22 on: January 21, 2020, 09:50:36 AM »
I think Maxx is talking about having to pay his wife some of his Social Security income, not from any private pension plan.

Actually, former spouses can draw some Social Security income directly from SS based on marriage to a person without any directive from a divorce proceeding.

So I suspect his ex wife is getting that income.

However, in addition to that money which every former spouse can get directly from SS (there are some qualifications related to age, length of marriage, etc.) . . .

It seems that, in this case, Maxx's divorce settlement requires him to pay ex wife some additional money out of his own Social Security income.

Maxx can clarify.

- - - - - - -

More on Social Security payments.

The SS plan is quite liberal as to who can get some payments and from what relationship.

For instance:  (I will use wife getting from husband's account because that is the most common, but applies the other way around also.)

Wife and husband divorce.  Wife remarries and at some point, starts drawing SS based on her second husband's SS record.  Wife has never worked.
Second husband dies, wife still gets SS based on his record.  However, she can switch and get SS from first husband if that amount would be greater.  This can happen even if first husband has a second wife who is also getting SS based on his record.
Or wife can divorce second husband, and start drawing SS based on first husband's record.

Again, there are some requirements regarding age, length of marriages, etc.
And, the rules have been modified over the years, and will be modified again in the future.

Also, if wife has worked, she can draw from husband's account for a period of time, and then switch to drawing from her own account at some point.  This is sometimes advantageous because one's own SS amount goes up significantly if they wait until full retirement age rather than start drawing at minimum age of 62.
Winston Churchill.  “The best argument against democracy is a five-minute conversation with the average voter.”

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Starting and Running a Business in the Republic of Georgia, Batumi
« Reply #23 on: January 21, 2020, 10:31:16 AM »

It's quite common to split pension rights in the West.  Men can get out of that by paying a lump sum at the time of settlement, if the woman agrees.  Factors which ameliorate the payment are the wife's pension income (if she had one, he would be entitled to a share of her pension), length of marriage, and whether or not the wife worked.

What if he made $200 in income per month, an exwife
would be entitled to half of that? In my mind there should
be a threshold that he doesn't have to go below.

FSUW are not for entry level daters
FSUW don't do vague
FSUW like a man of action. Be a man of action 
If you find a promising girl, get your butt on a plane.
There are a hundred ways to be successful and a thousand ways to f#ck it up
Kiss the girl, don't ask her first.

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Starting and Running a Business in the Republic of Georgia, Batumi
« Reply #24 on: January 21, 2020, 10:37:15 AM »
Maxx,

Restaurants are a tough business. They require nearly constant
attention especially on holidays, weekends and evenings.

In the beginning the problems are overhead and cashflow and
there is always watching whoever touches the money and then
the next problem is building a reserve for the ups and downs.
I hope for your continued success. I appreciate you coming here
and blogging about your experience. If I were single and 7 years
older, I would be jealous!

Udachi! ts’armat’ebebi!

Bill   

« Last Edit: January 21, 2020, 10:44:13 AM by 2tallbill »
FSUW are not for entry level daters
FSUW don't do vague
FSUW like a man of action. Be a man of action 
If you find a promising girl, get your butt on a plane.
There are a hundred ways to be successful and a thousand ways to f#ck it up
Kiss the girl, don't ask her first.

 

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