Bootstrapping Abroad: why we do it and why it's awesome

ok, here's what i like and dislike about living in argentina and starting up a consulting business and building a product on the side.

first, yes, it's cheaper, and yes, the wine i buy is better 100 fold than the states, and yes, i would say i've cut costs by about 40%. my kids didn't belong to a private club and take swimming and tennis lessons in seattle... so we're not taking advantage of the cost savings we could.

but it's still hard: hiring is hard. getting a good cultural fit is hard. building a business that works within the legal framework is impossible. i'm deathly afraid of hiring local talent because it's VERY easy to be sued due to the employment laws of the country.

but it's great: you get a lot of time back in ways i can't explain. it's like you get to ignore a lot of the BS that working in seattle or SF can overwhelm you. explaining the details of why that is would be a longer post, but every tech expat i know in argentina talks about the same thing - somehow you feel more in control of your schedule and your life.

do it when you can hire foreigners, keep your team small, keep your relationships and contacts with people back in the states or europe, and get paid in dollars or euros (or build a product that makes dollars or euros), and can come back once in a while - anything else and it's not such a great deal.

I've done a similar thing as this guy, living in a number of countries for half a year or so, usually in connection with language study (doing remote contract work to pay my way). I've also observed American expats in those places, and in my home country (Poland).

I think it is laudable to live abroad, and in our field we're fortunate enough to be able to choose where to live. But with that choice I think comes a certain responsibility. You can live very well in a place like Thailand or China without engaging with the country past the minimum needed to get your needs met. Basically treating it as your private hotel resort. I've seen many people who choose this route, and I find it pretty repugnant.

If you are going to bootstrap abroad, be careful to remember that the country you choose does not just exist for your convenience. Be respectful of the place, and try to go beyond the role of a self-satisfied expat, which is very easy to fall into.

This sounds like a bad idea for exactly the same reasons as starting up in a startup hub sounds like a good idea.

1) Easy to find and hire good people from your own network

2) Easy to raise money from connections in your own network

3) Easy to find accountants, lawyers, office space from your own network

Starting a successful business is a fairly complicated and risky thing to do, why would you want to go live somewhere that makes it even harder? (Note: This does not apply if you're the only one building a product and just need a change to focus and get it out.)

Perhaps, starting and selling a business in the valley and then going on your world tour/vision quest is a better idea, no? :-)

Doing this now, and also living in Budapest.

One of the biggest benefits of bootstrapping abroad is that you don't have the social obligations that you do back home. No friends calling to grab dinner, go to a movie, go for drinks, etc (this is also a drawback, of course). You truly are able to control your own time. I spend 10-12h a day working, and when I get off my computer, I'm somewhere cool (like Budapest, or Buenos Aires!)

Having social contact is important when you're not working, but meeting people on sites like couchsurfing is pretty easy.

I wonder if you would end up with tax issues when doing this? As a US citizen would I pay tax abroad, or in the US, how difficult would it be to get the requisite visa, and most importantly, how many idea spots have fiber internet?

It does sound intriguing though.