Small Business Opportunities in Cambodia
Small Business Opportunities in Cambodia – What’s available for you?
Cambodia is a country of opportunities. With its easy registration processes, welcoming attitude towards foreigners, lax business laws, and spending power of the young Cambodian professionals – it is no wonder that many choose to take advantage of the vast small business opportunities available in the country today.
Perhaps one of the more popular and profitable small business opportunity in most of Cambodia belongs in the Food and Beverage industry. Food is a staple commodity among locals and foreigners. There is no shortage of customers in any area of the country. As most of you know, the income potential of food is twice your capital investment. With a good location and available market, it can prove to be highly profitable for you. If you are one of those who are thinking of investing in one, here’s a list of the available businesses in the Kingdom.
Cambodians love coffee. You may think that the city is saturated with coffee shops, but most of these stores still earn decently. People like to hang out at coffee shops because it’s a cool thing to do. Some take advantage of the free WIFI (which is very cheap in the Kingdom), the power outlets inside the shop, the fresh air conditioning when it’s hot outside, or the space to meet friends or clients.
Coffee shops serve as an easy venue where people can meet, enjoy a cup of coffee, and talk. It can also be a comfortable place where you can just grab a bite and read a good book in peace. The atmosphere is relaxing, and the coffee perks you up. These are the main attractions in coffee shops.
In Phnom Penh and Siem Reap, coffee shops are abundant. You can buy a franchise from any one of the international brands, or open a small one with your own brand. Brand new coffee machines are available for as low $1,000-$2,000 for 1-cup machines, and from $3,000-$20,000 for 2-cup machines.
Additionally, you can buy second-hand machines for ¼ or ½ of the original price. Ultimately, the success of your business will depend on the taste of your coffee, your business location, and the ambiance inside your shop.
Like coffee shops, Phnom Penh and Siem Reap are saturated with restaurants catering to locals and foreigners alike. There is specialty resto catering to a specific clientele – and this proves to be more successful than generic restaurants. Offering a unique menu captures attention. Generally, people don’t mind traveling far just to get a taste of that famous greek hummus, or those delicious dumplings.
In a restaurant business, you need to get a loyal following to be successful. Word of mouth and repeat customers can make or break you. Rental prices for space is cheaper than most countries, and your resto doesn’t need to be in commercial spaces.
You can rent a small shophouse and use the space for a resto at the ground level, and your own residential space on the upper floor. The important thing in a restaurant business is a prominent location, the taste, and uniqueness of your food, and aggressive marketing strategies.
As for the ease in opening a restaurant business, IPS Commercial offers a wide range of restaurant business listings that already comes with complete furnishings and trained staff. You only need enough liquid capital, and a reputable real estate agency to do the due diligence and negotiate for you.
Bars and Clubs
Phnom Penh and Siem Reap are party places, and bars are splattered around these cities. However, there are many other provinces in the Kingdom that have high-income potential. Like coffee shops and restaurants, you can opt to buy an already existing business with an already fitted out space, an existing staff, and a customer following. Similarly, you can also rent your own space, design and put furnishings mirroring your own tastes, and train your own staff.
Keep in mind that when opening a bar or club, you need to choose a location that is a bit far from the residential areas, or risk neighbors complaining to the Ministry of Commerce.
Hotels /Boutique Hotels
About 6 Million tourists visited Cambodia in 2018, and that figure goes up by roughly 10% yearly. Hotels reported almost 73% occupancy rates, with an average 7 days length of stay. With those figures, the demand for additional hotels is still high.
In most countries, the capital of a hotel business is high. But that is not the case in Cambodia. Investors develop land near tourist areas, build hotels, design and furnish the properties, and resell them as turnkey businesses. Hotel Business for Sale range from as low as $20,000 to as high as $500,000, some with long term leases already incorporated in the sale.
Hostels / Guesthouses
Like hotels, there are available guest houses that you can acquire if you’re interested to take advantage of the booming tourism industry. These properties generally have lesser rooms and provide a more personalized service to guests.
Hostels and inns are easier to manage because they can only accept fewer clients. Overhead is cheaper, and staff service has a more homey and friendly approach. Nowadays, you can use Airbnb, Booking.com, Agoda, and many other booking platforms that can help you ensure year-round occupancy. With a good marketing strategy and efficient management, this can prove to be very beneficial for you.
Other than the items listed here, there are many other small business opportunities available in the market. Your disposable capital doesn’t have to be too high. All you need is a good business sense, an ideal location, a good staff, and enough courage to brave the Cambodia economy. You may browse our listings to find businesses for sale in all of Cambodia or contact us and our property specialists will be happy to help you.