Top 5 Small Business Ideas in Turkey
Are you looking for the best small business ideas in Turkey? In this article, I’ll share business opportunities for foreigners – both those that can be run remotely and those that require living in Turkey.
All information in this article and more is also included in my YouTube video:
Overview small business ideas in Turkey
When it comes to starting a small business in Turkey, some sectors offer foreigners a higher chance of success.
Before I list the top five small business ideas in Turkey, I want to highlight three important points.
- Firstly, Turkey is a business-friendly country, but it is also a very competitive market, especially in Istanbul. Since many jobs only offer low wages and tough working conditions, a large number of employees aspire to start their own business.
- Second, do not focus on selling to Turkish customers unless you are offering products from your home country. Foreigners who compete directly with Turkish businesses for local Turkish customers are unlikely to succeed.
- Thus my recommendation to foreigners who want to start a profitable business in Turkey is: Sell strengths of Turkey to foreigners in Turkey or abroad.
Let’s now start the list of business ideas which do not require moving to Turkey.
1) Exporting Turkish goods to other countries
The first small business idea is exporting Turkish goods to other countries. This can involve either reselling existing products or manufacturing goods to your specifications.
Turkey has a strong manufacturing industry. For small businesses, some of the most suitable products include textiles, accessories, beauty products, tiles and furniture.
For example, Turkey is a major hub for textiles. There is vast selection of wedding dresses, evening dresses, modest fashion, baby clothing and much more. The furniture industry is also very strong in Turkey. You can sell through a physical store, an online shop, Amazon FBA or even drop shipping.
2) Property Investment
The next business idea is property investment. This is something I have personally been doing in Istanbul for the past eight years.
Rental yields for unfurnished apartments in Istanbul range between 3% and 5%. For medium term rentals of furnished apartments in prime investment locations, yields can go up to 6% or even 7%.
However, the property market in Istanbul is quite complex. The city is like a country of its own and achieving yields on the higher end requires quite some experience.
Another benefit of property investment is the opportunity to obtain Turkish citizenship. If property investments in one or multiple properties exceed $400.000, foreigners can apply for Turkish citizenship for themselves, their spouse and their children.
3) Renting out villa properties / boutique hotel
The third business idea is renting out villa properties along the Aegean and Mediterranean regions.
Foreigners can use the villa property personally and also do short-term Airbnb renting during the high season.
Many service providers handle Airbnb operations such as check-ins, check-outs and cleaning. Short-term rentals require a license, but the application process is much easier for villas than for apartments.
In fact, obtaining a short-term rental license for apartments has become quite difficult. That’s why another business idea is running a boutique hotel in a touristic area in Turkey.
4) Restaurant or café in Istanbul
The fourth small business idea for foreigners is opening a restaurant or café in Istanbul.
Istanbul is a huge consumption market with over 16 million residents, more than 18 million international tourists per year and millions of domestic visitors from all over Turkey.
This is the only sector I know, where foreign business owners focus mainly on Turkish customers and some are very successful. That being said, this market is very competitive and Turks are experts in the restaurant business. If foreigners want to succeed in this sector, they need to offer something unique or high quality.
Also, keep in mind, for every foreign employee in a Turkish company, there must be at least five Turkish employees.
Another option is franchising. There are many brands which offer franchise licenses.
5) Trusted advisor for foreigners
The fifth business idea is to be a trusted advisor to other foreigners. This involves supporting with renting or buying properties, assisting with medical tourism or providing relocation support in Turkey. This actually applies to all areas where foreigners need assistance in Turkey.
You can explore other articles about Istanbul by clicking on one of the following categories: