| This is probably a typical excerpt from an initial | | | | area. We were attracted to this area by 2 things; |
| conversation between a would-be E2 visa applicant | | | | family had lived there for many years so we knew the |
| and a visa expert: | | | | area well. Also, a few years ago in the process of |
| Applicant: “Do I really have to spend xxxxxx on a | | | | falling in love with the place, we had purchased a |
| business? Can’t I just make a goodwill gesture and | | | | vacation home as a base for our visits. We’d been |
| buy a small franchise for a nominal fee and see how it | | | | successfully renting it out for a few years now; so |
| goes? I have savings so can support myself once I | | | | much so that we were sending enquiries we could not |
| arrive.” | | | | fill to neighbors. By running our own vacation home we |
| Visa Specialist: “No you cannot, the Embassy | | | | had been given an insight into what it takes to run a |
| wants to see a firm commitment and wants to see a | | | | successful vacation business and what good property |
| full business plan on how you’re going to grow and | | | | management looks like. We had had our own fair |
| provide more employment.” | | | | share of nightmares owning the home, being |
| So when being faced with having to spend near on | | | | thousands of miles away, leaving the home in the |
| $100,000+ as part of the visa package you need to | | | | hands of others, only to find the job not being done in a |
| choose how to spend your money wisely. There is no | | | | professional and conscientious manner. If no one in the |
| other way forward. As much as you may wish to try | | | | area we planned to settle was doing a decent job, |
| and work around the system, the plain fact of the | | | | why couldn’t we? |
| matter is the US Government demands a substantial | | | | So our decision was made. We knew enough about |
| investment in order to review and approve your | | | | this type of business that we were not going into it |
| application. | | | | totally blind. We knew where the market was currently |
| The best way to tackle how to make the decision on | | | | in terms of local competition and we had a clear idea |
| what to buy is to consider the following questions: | | | | on what kind of service needed to be provided to |
| * What are my current skills and what am I good at? | | | | ensure we stood out from the rest. |
| * What do I enjoy doing? | | | | The next part was relatively easy. We were put in |
| * What is my realistic budget for purchase | | | | contact with a recommended business broker who |
| * What kind of worker am I? | | | | worked in the area we wanted to be. We told them |
| Sounds simple enough and by being brutally honest | | | | what type of business we wanted and how much we |
| with yourself on what you can achieve and what you | | | | were prepared to spend. They had a business on the |
| want for the future, it should guide you in the right | | | | books that was suitable and the deal was written, |
| direction for making a sound business purchase. It’s | | | | contingent on us securing an E2 visa. Therefore, the |
| all very well fantasizing about owning a bustling coffee | | | | purchase of the business could be legitimately included |
| shop but if you’ve never worked in a food supply | | | | in the visa application but the monies would not |
| environment except for making sandwiches for Auntie | | | | transfer to the seller until we had been formally |
| Joan’s 80th birthday bash, it’s probably not a | | | | approved by the Embassy. This is an excellent |
| good idea to purchase this type of business as you | | | | safeguard to the buyer and something we would |
| have no real experience to help you succeed. You | | | | recommend writing into the contract of purchase for |
| may enjoy holding dinner parties for friends and family, | | | | your selected business. |
| but doing it 6 or 7 days a week is an entirely different | | | | Something to consider when setting your budget; |
| thing. Whenever you talk to anyone who runs their | | | | don’t spend all your savings on the business |
| own business they’ll tell you the same thing; you | | | | purchase. You are definitely going to need a cushion of |
| work 7 days a week and you never switch off. This is | | | | monies for at least the first 2 years to help support |
| especially true of investors on E2 visa status as you | | | | you. You may find you need to purchase vehicles, put |
| have very strict monetary and employment targets to | | | | a substantial security deposit on a property, do a |
| adhere to which means you can never take your foot | | | | heavy marketing campaign to promote your |
| of the gas. Remember, failure to reach the pre-set | | | | ownership. This all requires money and lots of it. The |
| goals will probably mean revocation of your visa at the | | | | local bank is not going to lend you anything to start off |
| renewal stage. | | | | with unless you have a substantial asset to use as |
| Faced with this kind of pressure, you really need as | | | | collateral, such as a property with equity. You are a |
| much of an advantage as possible. Not only do you | | | | foreign national and an unknown quantity. You’ll |
| have hard targets to hit, you’ll be battling local red | | | | need to be in business for probably 2 years plus and |
| tape, cultural differences on how business is done, | | | | posted 2 business tax returns before you can get any |
| managing employees and adjusting to life in a different | | | | financial help in the form of credit. So a reserve fund |
| country. The last thing you need is a brand new | | | | to help you when those unforeseen expenses land on |
| business you’ve never had any experience of | | | | you is vital. |
| before which leaves you scratching your head on how | | | | We now had a business purchase in our sights and a |
| best to run it and grow it. | | | | plan on how we were going to run it. In our next |
| We decided to stick with what we knew and had | | | | installment we’ll tell you what else was required to |
| done, as part of our research, a lot of reviewing of the | | | | complete the E2 application. |
| local marketplace. We planned to live in a vacation | | | | |