One of the most sought after vacation spots in the world today is the lovely paradise of Koh Samui in the Kingdom of Thailand. The tropical island has everything a tourist could wish for, beautiful beaches with clear azure waters, lush rainforests complete with teeming wildlife, good and authentic Thai cuisine, and lots of great activities including a jungle safari adventure. According to official data, the number of tourist arrivals in Koh Samui by plane alone as of last year is 1,507,365. That alone is equivalent to the population of a major city in many countries around the world. Take note that this figure does not even include the number of tourists who arrive by ferry and those who have their own yachts or other forms of transportation. It comes as no surprise, therefore, that businesses and like-minded individuals flock to Koh Samui and look for investment opportunities in the island.
What are the business opportunities in Koh Samui?
Business opportunities that relate to two of the basic human needs thrive in Koh Samui, and these are restaurant and accommodation businesses. Authentic and delicious Thai cuisines are obviously in demand in this lovely paradise. This is why a lot of restaurants and even food stalls thrive in the island of Koh Samui. Another thriving business opportunity lie in the commercial real estate market. The huge influx of tourists every year required the establishment of more accommodation areas like hotels and vacation villas. In the case of the latter, it is more preferred by tourists because of its privacy and many other features. Although this huge business opportunity exists, only a few businesses, let alone individuals, are able to handle the task because of the required capitalization. This is where crowdfunding can help a lot.
What is crowdfunding?
It is a way of raising capital through the combined effort of individual investors, family, friends and at times, customers. Using primarily the Internet as the platform for such method, it allows you to tap the combined effort of a huge pool of individuals and leverage their network for bigger reach and exposure. This practice also lets small investors participate in funding a business project and in return, own a piece of the pie of that project. In the case of Koh Samui villas, crowdfunding can help acquire a villa that will be open to tourists for rent or long term lease and in return, individual investors get to earn from the profits of the villa.
Why is crowdfunding different and more attractive?
The traditional way of raising capital for a business venture or product launch is through the issuance of equity shares to select individuals or institutions, including venture capitalists, banks, and angel investors. You just don’t go to them, however, and pitch your proposed project. You have to prepare a business plan backed by market research and prototypes. At times, you even need to consult experts to solidify your research. All of these entail costs on your part. After this, you would need to approach wealthy individuals, financial institutions, venture capital firms or angel investors and pitch your idea to them. When you really look at it, you have a limited pool of players who might be willing to fund your project. Think of this type of effort as a funnel with your idea at the wide end and your audience at the narrow end. If you fail to direct this funnel at the right venture capital firm or investor and you will find yourself losing a lot of time and money. With crowdfunding, the traditional process is reversed. Your business idea, along with your pitch, is there for everyone to see and they can immediately put their money to your idea until it reaches your desired benchmark. Using this approach would greatly streamline the traditional model and open the door to a greater pool of investors.
With Koh Samui swiftly becoming one of the most preferred destinations of tourists from major countries around the globe, the time is ripe for you to invest in a commercial real estate like Koh Samui villas. If you find the capital requirement is too huge for you to handle alone, then you can join or even start crowdfunding efforts geared towards purchasing villas in Koh Samui. This is the least painful way of owning a villa for rent in the lovely island of Koh Samui.