Starting a business in Bali sounds like a dream. The stunning beaches, buzzing tourism, and growing digital nomad culture make it seem like the perfect place to launch a café, a boutique, or even a co-working space. But here’s the hard truth: many businesses in Bali don’t survive past their first year.
Why is that? And more importantly, what can you do to avoid becoming another statistic? Let’s dive in and talk about the real reasons behind these early failures — and how to beat the odds.
The Allure of Paradise — And the Reality Behind It
At first glance, Bali feels like a goldmine for entrepreneurs. Every corner is filled with opportunity, and the relaxed island lifestyle feels like a great place to “work to live.” But that’s exactly where some problems begin.
Transitioning from dream to execution is harder than it seems. Many newcomers underestimate the complexity of starting a business in Indonesia. There are legal hurdles, cultural nuances, and an ever-changing market heavily influenced by tourism seasons.
Another issue? Many expats start businesses without proper local research. Just because a smoothie bar worked in Canggu doesn’t mean it will thrive in Ubud. Trends move fast, and what’s “hot” today may be overdone by the time you open your doors.
Lesson #1: Do your homework. Spend time on the ground. Talk to locals and seasoned expats. Learn the rhythms of the area and what’s already saturated.
Common Pitfalls That Sink Startups in Bali
So, what are the most frequent mistakes entrepreneurs make? Here are a few that come up again and again:
1. Ignoring Local Laws and Permits
Indonesia’s business regulations can be tricky, especially for foreigners. If you’re not setting up your business legally — with the right permits, licenses, and local partners — you could get shut down or fined. This isn’t something you can “wing.”
Solution: Work with a local consultant or business advisor who knows the ropes. A small investment up front can save you from massive problems later.
2. Poor Financial Planning
Many people come to Bali with savings and a dream — but without a clear financial plan. They overspend on décor, branding, or location without considering long-term sustainability.
Solution: Create a conservative budget with at least 6–12 months of operational costs set aside. Plan for low seasons when tourism dips.
3. Not Understanding the Market
What works in your home country might not click in Bali. A business targeting digital nomads, for example, may flop in a village where Wi-Fi is unreliable or the vibe is too traditional.
Solution: Narrow down your target market. Are you catering to locals, expats, or tourists? Each group has different needs and spending habits.
Strategies to Thrive in Bali’s Business Scene
Now for the good news: you can succeed in Bali. Plenty of entrepreneurs are doing it — but they’re doing it right. Here’s how you can set yourself up for long-term success.
1. Start Small and Scale Gradually
Instead of going all-in from day one, consider starting small. Test your idea as a pop-up or an online service before committing to a full-scale operation.
This gives you a chance to see what works, collect feedback, and make adjustments — without burning through your resources.
2. Build Real Relationships with the Local Community
Whether it’s your staff, your suppliers, or your neighbors, investing in local relationships builds trust and credibility. Many successful businesses in Bali are the ones that respect the culture and actively give back to the community.
3. Adapt and Stay Flexible
Bali’s market is fluid. Trends change fast, tourism patterns shift, and global events (like pandemics or volcano eruptions) can impact everything. Your ability to adapt is critical.
Have a Plan B. Offer delivery, partner with influencers, or create seasonal menus. Businesses that evolve with the environment tend to last longer.
Final Thoughts: Turning Challenge into Opportunity
It’s true — many businesses in Bali don’t make it past year one. But that doesn’t mean yours has to fail. With the right planning, cultural awareness, and financial strategy, you can not only survive — you can thrive.
Remember, Bali isn’t just a place to escape — it’s a place to grow. If you treat it with respect, patience, and a solid business mindset, your dream business on the island could very well become a success story others look up to.