Business Opportunities in Panama

Introduction – We often get asked by clients about what is a good business to start in Panama. Generally with a residency you can operate your own business or work for yourself. Working for another entity is generally not allowed. We are not investment advisors but we do live here and have some ideas as to what is good and not good so we thought we would share them with you for whatever it’s worth. Hopefully this advice is worth more than what you paid for it.

Services – Panama is filling up with people from all over the world. Most of the folks coming to Panama City are investing in real estate that is not cheap. While all are not rich, quite a few are affluent. As the condos complete and people move in these folks are going to be in the market for services. Depending on how good you and your services are you might do well. Think of what these new residents that are affluent, not necessarily rich, might want. Think in terms of you coming to them. Parking and traffic is becoming a problem here as we go through our growing pains so delivery of the service to the client is going to be well received.

Service Businesses

Maid/Cleaning Services – Many people coming here do not like the idea of having a live in maid. They never had one before and they see it as an invasion of privacy. If you lived in Central America you know this is not the case but some are unwilling to try it. Now these people need to have their homes cleaned and many are not into washing their marble or time floors themselves and other household chores that were probably not in their minds when they thought about retiring in Panama. We think a service that supplies maids for the day or half day would work. You would need to investigate the maids with simple background checks, building a file on them, talking to references etc. It would be even better if you could run a classroom for them for a week or so to teach them simple maid English that is commonly spoken in Los Angeles and Miami. You teach them some simple words relating to the job so the can communicate with the homeowner in English. Think simple, broken, choppy three word sentences. These maids will need to be paid during training and will be paid more than regular maids also commanding a higher price from the homeowner. Most will want the maid for two to three half days per week. You may want to send them out in pairs. Getting bonded maid even better and raise cost accordingly.

Outcall Therapeutic Massage – There are such massage people here but the newcomer is very unlikely to find them or be able to communicate with them. If you know what you are doing train your own – this is currently an unlicensed vocation. Rates are $20 to $30 for a house call massage for one hour and you generally have to have a massage table. The higher priced ones sometimes have their own portable table. So you supply portable tables, and translation like the client is called on the cell phone when massage person arrives, you hear the problems areas in English and have it told to the massage person in Spanish. Other option is run them through a one–week language course.

Outcall Nail and Hair Waxing Services – Get into the nail and waxing business. Do it on an outcall basis taking advantage of the cheap labor. Unlicensed vocations. Train your own if capable. Run them through a one–week English course. You can do the same with hair and makeup services for women going out to a big event.

Security Locksmith, Safes – All these new condos opening up. Almost every unit will have a safe of some sort. Many will buy high security locks and doors. Build safe rooms too. Should be a big business.

Computer Repair – Make house calls, bring replacement loaners and get busy. Speak English and Spanish Technicians. Geek Squad. Easy to do well.

Cooking School – Most living here will have a live–in maid within six months or so. They will soon get sick and tired of eggs and chicken with rice, good as it may be variety is nice. Run a Cooking School in Spanish and teach them the English for the dishes. If she can cook 12 main courses, several side dishes you are going to make the client happy. Train them a few hours a day, few days a week. The homeowner pays, and then the maid gets a raise if she completes the school and passes the tests. We have a maid that makes excellent sushi and lots of other foods that a maid generally knows nothing about.

Brick and Mortar Businesses

Panama City Hotels – There is a shortage. The shortage will grow worse as the condos complete and occupy. The residents will have visitors. The Canal Expansion will also create more demand. It seems that there is a demand for plain simple and comfortable hotels. Clean, safe, secure, with just basic amenities all for a reasonable price. No one comes here to sit in the hotel.

Restaurants – We see them come and go all the time. People have a theft problem with the help – money, food, supplies, and cookware. Do not get into this unless you have extensive restaurant experience in Central or South America and even then the odds are against you.

Limousine Service – Forget it, not right for Panama at this time.

Web Hosting – If you know what you are doing with Panama's privacy laws you should do well.

Beach Hotels – Good market but expensive. Land on the beach is way up there these days.

Country Club – Think about an exclusive membership country club that caters to North Americans and Western Europeans. The staff all speaks English. The food is good and North American Style. Think tennis, volleyball, Olympic pool, Jacuzzis, spa, etc.

Heath Care

Health Food Supplement Store – Needed and the demand is there and growing. You will be high priced since you will be importing and being taxed on top of freight costs.

Alternative Heath Care – For licensure just hire yourself a Panama MD and put everyone under the MD as assistants. Get into any sort of therapy you want then. Only citizens are given licenses to practice health care of any sort. Acupuncturists, Homeopaths, Naturopaths and Herbalists are not licensed but it is advised to work under an MD to avoid practicing medicine without a license charges. Panama has four Chiropractors.

Discount Medical Services – You might be able to make it offering Plastic Surgery, Expensive Dentistry and so forth but you will need to keep your prices on a level with Columbia and Mexico or it is doomed for failure. The market is bargain basement shoppers using the Internet and you are dreaming if you think you can up sell them because you are in Panama. If they could afford the procedures they want in the first place they would have it done in their hometown. If you can get a Dentist to understand discounting you can make a fortune doing basics like crowns, fillings and even root canals. This is only going to work on a high volume discount basis, nothing else.

Bottled Water – The bottled water in Panama that delivers to the house is cheap and lousy. Do it better and you have the market. Appeal to the health conscious.

Health Clubs – Forget it, too many now.

Health Food Restaurant – Clean food, organic or organic type here. This can be a hit. Restaurants here are good but they do not cook clean. They do not use all clean, fresh fruits and veggies. There is a market now and it is growing. Think about delivering too.

Martial Arts – Limited here, just basic instruction mostly for the kids. If you have a better mousetrap should be a hit too.

Retail

It is probably already here, somewhere. If you have a good concept it will be copied. Make sure you really know what you are doing.