Going Into Partnership/Small Business

[longstebe]

I've been approached by a guy (classic opening) with whom I'm currently working with overseas about opening a small business in Thailand.

Now being a member on this forum for quite sometime I've read some horror stories about being ripped off, seldom hearing any successful ones.

I'm asking the guys who have found themselves on both sides of the coin to point me in the right direction, things that I should be doing before commiting

to something. This is at a very early stage so any advice would be helpful, and it didn't come about after drinking a few beers together.

Thanks in advance

[bunta71]

A wee bit more info may perk someone up.So many variables...is your friend Thai? Former experience? etc.. What do each of you bring to the table? Thousands of unknowns here.

[longstebe]

We are both Europeans and the other guy has experience with running a small business in Thailand.

What do we bring to the table? Good question, I can sit here telling you guys I am this and I am that, all I can say is I think we both have a good head on our shoulders

and I'm willing to listen to other members opinions.

[sbk]

Are you looking for business specifics (ie company formation etc) or simply other members experiences doing business with foreigners in Thailand?

[Travel2003]

We are both Europeans and the other guy has experience with running a small business in Thailand.

What do we bring to the table? Good question, I can sit here telling you guys I am this and I am that, all I can say is I think we both have a good head on our shoulders

and I'm willing to listen to other members opinions.

Based upon what you just said, I think you should go ahead and do it.

[longstebe]

Are you looking for business specifics (ie company formation etc) or simply other members experiences doing business with foreigners in Thailand?

A bit of both.

Would the business have to be in a Thai name as we are both married to Thai Nationals, would this be easier?

Any suggestions regarding lawyers (separate ones), legal matters etc...

[rick75]

Any advice.......

Yeh don't do it.......... partnerships rarely work, one works harder than the other, one puts in more money so thinks He rules the roost, plenty of issues will raise there head and thats just if your partner is honest and enters the deal with good faith, if they are not, then you really are on a hiding to nothing.

My advice comes if the partnership is entered into on level terms, god only knows what it would be like here with so much corruption and so many grey areas in the law.

My Dad gave me good advice ........don't ever get into partnerships in business it has served me well.

[Razzler1973]

It really depends what you do and with whom. I have worked with a good friend of mine for many years with our business and we've never had any such problems. I don't see how going into business with someone automatically means 'trouble'.

You have to work at whatever it is you do, of course but that's the same for everything you do really

[mario299]

We are both Europeans and the other guy has experience with running a small business in Thailand.

What do we bring to the table? Good question, I can sit here telling you guys I am this and I am that, all I can say is I think we both have a good head on our shoulders

and I'm willing to listen to other members opinions.

You need to get some good legal advice first of all, to see how your idea should be put into a proper business category. I was Sole Proprietor of my own business for over 20 years in the USA, so I didn't have any disagreements with partners. I entered into an "S-Corp" with a friend for a couple of years in a separate project, it didn't work out and I bailed with no financial loss or set-back. Another option could be a "limited-liability corporation" (LLC). I personally have no idea of how partnerships, corporations or business entities are set up in Thailand, but I suggest you get good legal advice before you commit to anything, with anyone, for anything.

Best of luck

mario299 :jap:

Edited June 13, 2011 by mario299

[WebBangkok]

I say you do a business plan and see how it looks.

Look at the competition, why you are better than the others, compare your price your charging with others etc etc.

Also you should get into networking, find your niche and make sure you go and talk to people and make sure you really know what business your into.

If it looks good for you then go into it, don't always listen to others saying no don't do it for this or that reason.

You only succeed when trying, if you don't try you fail anyway,

[Mirth]

Don't even bother. Either go into it yourself or don't bother at all.

I've been approached by a guy (classic opening) with whom I'm currently working with overseas about opening a small business in Thailand.

Now being a member on this forum for quite sometime I've read some horror stories about being ripped off, seldom hearing any successful ones.

I'm asking the guys who have found themselves on both sides of the coin to point me in the right direction, things that I should be doing before commiting

to something. This is at a very early stage so any advice would be helpful, and it didn't come about after drinking a few beers together.

Thanks in advance

[kerryk]

Buy low and sell high and pick a business that no one would want to compete with in Thailand.

There is an Aussie guy who makes cotton whips here for export. I think that is probably a good example. I am sure the Thai people have no idea what he is doing.

Putting your business in a Thai persons name or having a partner is an interesting thought. I can't type when I am laughing so I won't respond to that.

Good luck.

[slapout]

As mentioned a partnership business can work if approached properly. I have been involved with one such company (3 partners). Each of us contributed our expertise to the operation, 3 requirements, 3 different contributions. We all learned from each other and it was quite profitable. It helped that we knew each other very well, knew what to expect from each other and we were honest with each other. You need to be a people person to make this work.

I also had my own company, completely separate from the partnership and non competitive. This requires self confidence, experience, and total time commitment. This works if you do not want to depend on others (internal company wise), work at your own pace, and can handle the profit/loss contributing factors yourself.

I always looked at any business proposal/deal, from a worst possible case scenario. If you make plans to protect yourself and your investment, then you will, 99% of the time, have a profit and you should not be disappointed with the outcome. I call this 'my realist approach to human involvement'.