Celinne Da Costa , CONTRIBUTOR – FORBES

How A New York Expat Gave Up Corporate To Become An Entrepreneur In The Tropics

Da Costa: What are the key lessons you’ve learned from creating a wellness retreat in Panama?

Mogensen: Doing the research first is paramount. This means knowing your market, identifying your competitors, what are they offering, and what you can offer that will set you apart. I didn’t want to cannibalize business from other established retreats here in Panama – I wanted to attract a different clientele. My target was city dwellers that, like I was, are stuck in the daily grind and crave time off to leave everything behind and reset. I offered just that: nature, sun, surf, yoga, and fresh food in an environment designed to nurture the mind and body.

Secondly, since I wanted to build a business that would serve the community, I made sure to partner with other Santa Catalina businesses to service our retreats. I began with selecting Hotel Santa Catalina as an accommodation partner and focused on building strong relationships with the staff. My goal was to create a relaxed, welcoming vibe in a beautiful place nestled in nature, which would serve as a refuge from the hustle and bustle of the city. I also partnered with local village restaurants, boat captains, horse-riding guides and surf instructors (who also happen to be world-class pro surfers!).

I love this business model because it serves the Santa Catalina community, while also offering our retreat guests an intimate and authentic experience.

Da Costa: What challenges have you faced with the business?

Mogensen: My biggest hurdle was underestimating the lead-time guests and yoga teachers needed to plan and book a retreat. I was initially running on my own experience: I am a last minute person, and would often book myself a vacation at a moment’s notice! For example, I incorrectly anticipated that I could advertise a retreat three months out and generate sufficient numbers of guests per retreat. I learned the hard way that most people need a much longer notice to book their vacation: a lot of people plan time off work six months to a year out. I encountered a similar issue with yoga teachers enquiring about planning a retreat with their students.

As a result of this oversight, many of the retreats I was initially running were only able to secure a handful of guests and our start-up phase was slow. I lost money in the beginning since the income earned from a small group did not cover the costs of running the retreat. Thankfully, I maintained a great relationship with my manager from my job back in New York City, so I was able to take on some freelance work to keep me afloat during those times.

Da Costa: How is your business performing now, and how many clients do you get?

Mogensen: We are now into the third year of business. We host between 10-25 guests per retreat. Since I don’t have a great deal to invest in paid media, my strongest marketing tactics are word-of-mouth and organic Google search. While leveraging these tactics takes time, I believe it’s the right approach for our small business.

It is also important to note that our business is seasonal, which means the income I earn from each retreat in our high-season needs to stretch that much further. Luckily, I no longer have the high costs of living in the city: I lead a simpler lifestyle, I’m cooking more, and my rent and utilities are only 10% of what I was paying in New York. These cost savings help stretch my income further, which helps since the business is still in its startup phase.