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Three Worst Things About Owning a Biz in Mexico

Is it easy to own a biz in Mexico?



Not really.

Is it worth it?


My hubby and I have been icecream-preneurs in Puerto Vallarta since January 2017 and we LOOOOVE it!

Of course it's not all bubble gum and roses - but that's life.

three worst things about owning a biz in mexico


What's a factura?

You don't want to know!

It's your worst nightmare on elm street.

It's how the Mexican government tracks business expenses, and every business MUST use facturas for expenses.

Here's "a typical” process (there's no standard, so this process will vary):

- Purchase an item and receive a receipt.

- Go to another counter to get a factura receipt.

- File the paper factura & receipt in the "waiting" folder.

- Receive an email of the electronic factura (pdf and xml), and file them electronically.

- If you don't receive an electronic factura, you or your accountant will have to check in the government system to see if an electronic file was received.

- If you paid with cash, take the paper factura, and write a petty check cash from you bank account.

- File the paper factura.

- Go to the bank and cash the check.

Still want to own a biz in Mexico?

Kathleen Naomi's character Larleen


Supplies in Mexico (at least in Puerto Vallarta, Mexico)

are T . O . U . G . H .

As a small business owner, most of our supplies are fresh products and we don't receive discounts. In fact, we pay a premium price for premium quality ingredients.

If you read my last article about pets in Mexico, you may remember the TNA syndrome.


There are several significant items that aren't available in Puerto Vallarta, Mexico.

Or if they are available, sometimes they run out, and who knows when it will be available again.

For the local fresh supplies that we buy in Puerto Vallarta, it’s not uncommon for us to go to 2, 3, or 4 stores just to find a single item. One day the store will have it, the next day they won't.

Sometimes the smaller suppliers have a siesta in the middle of the day from 1 to 3pm. And when a store's hours are 10-4, they may not open right at 10am, maybe not even at 10:15.

Remember the big life lesson...

"accept what is and go with the flow", "accept what is and go with the flow", "accept what is and go with the flow".


The third worst factor about owning a business.

You can buy anything in Mexico for cheap cheap cheap, right?

Wrong wrong wrong.

While that may be true in some parts of Mexico, it's not true for Puerto Vallarta. Puerto Vallarta is a popular tourist town, therefore, prices are not always inexpensive for consumers or business owners.

Many supplies we buy for our products are higher than in the U.S. because of import fees. For instance we use belgian chocolate in all our chocolate ice cream and toppings, and covering bananas - huge import fees. Gasoline and electricity are definitely higher than the U.S.

You may have heard that labor is cheap in Mexico: well, yes... and no. Minimum wage in certain parts of Mexico is very low compared to the U.S. minimum wage. But if you want good employees, you'd better pay more than minimum wage.

What you may not know is that employees get crazy good benefits. Whether they work full time or part time, they all get the same benefits. Employers pay around 40% extra of a worker’s pay for social security, healthcare, housing allowance, every six days they work you pay for their seventh day off, double and triple pay for overtime work, fifteen days for christmas vacation, minimum 12 days for vacation each year, plus a premium due for vacation, and they receive yearly profits.

There you have it, the three worst things about owning a business in Mexico.

What does Larleen think is the worst thing about owning a biz in Mexico?

Any of this surprising?


Kathleen Naomi


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