Starting a French business bars, shops and gites in France
An increasing number of overseas buyers are turning to France with dreams of setting up a French business and being their own boss. Typically they choose to buy bars, shops and gites in France. Whichever type of business in France you opt for make sure you do not jump into things and make expensive mistakes you quickly come to regret.
Starting a French business gites in France
Gites in France are small, rural, self-catering units, possibly barn conversions or the like, and are popular both with French and British holidaymakers. This has meant the demand for gites in France has grown dramatically over the past few years, with purchase prices rising accordingly. Gites in France are improving in quality with modern furnishings and amenities such as swimming pools increasingly being demanded.
Any owner of gites in France who has less than six rooms is not required to register with the chamber of commerce or pay social security contributions. Owning gites in France has become incredibly popular with UK buyers but they should not expect to live off their rental income unless situated in an area where there is year-round demand.
Starting a French business bars and restaurants
The catering industry in France is another popular option, not least because no formal training is required to run a bar or restaurant. It can turn into a very profitable French business although this largely depends on location and other factors.
Remember that French food and drink habits are very different to the UK and this needs to be accommodated for if you have any hope of succeeding. Also have the premises inspected by the French equivalent of Health and Safety before agreeing to anything.
Starting a French business property development
With France enjoying a property boom over the past few decades many overseas buyers, developers and builders have decided to get in on the action. Not speaking French may count against you when dealing with locals but there is a burgeoning market for new-builds amongst British ex-pats, holiday home buyers and investors.
Starting a French business shops
Providing it is situated in the right location with a high enough number of potential customers living locally, a shop in France can be a tremendous investment. It is essential to make sure there is a market for your products and non-French speakers might be better concentrating on areas popular with holidaymakers and ex-pats.
What to watch out for when buying a business in France
Whilst many overseas buyers have seen their French business prosper there are others who have been left floundering. Do your market research before setting up a business in France. Make sure there is a market for whatever service you are offering in a particular area and exercise caution when signing anything.
Before starting a business in France you will need an accountant and to register with the French Camber of Commerce. Most French businesses must also make social security payments and 6000 - 9000 per annum would be a realistic estimation for a small business in France. This, and other upfront costs, means it is vital to have a years capital to tide you over when you start a French business.
A common mistake many UK buyers make when setting up a French business is to think that, except for the language, France is the same as back home. A market for goods might exist in the UK but that does not necessarily mean there is one for that type of business in France.
This is not intended to put people off the idea of buying a French business but rather urge them to take their time, do their homework and ensure their business in France is a success. Whether you plan on renovating cottages, opening a bar or leasing gites in France the prospects are good provided you avoid the traps highlighted here.
