My Gf wants to go into business with 2 other thai's

[ChrisKC]

It would be my suggestion, that the three of them draw up a basic business plan that includes a preliminary budget. Known fixed expenses and operating expenses against anticipated income. Do they have a lot of equipment to buy? Are they sure there is a market for their services?

I think also it would be useful for each of them to know and agree on what their particular responsibilities and duties might be.

Assuming everybody's intentions are honourable, it is still crucial to prepare and plan before starting the business. Even intelligent Thais don't realise the importance of this! As an experienced business owner myself, I know!

[elzach]

"The other 2 are ladies and all 3 girls are aged in their late 20's."

Considering that the "Dr." degree took them till at least mid-20's to get, then they have practically zero business experience. Have you thought about that?

I'm not gonna comment on the ramifications of that, I think you get the point.

[jimmym40]

Keep her existing job, work for the clinic as well.

Many Thai doctors run 2 or 3 jobs at the same time.

No need for her to take risks.

Don't invest your money, no need for you to take risks either.

I would agree with above post. She's willing to give up a good government job? What about all the benefits she gets at the moment. Don't government employees have a great retirement pension?

Take it slowly, make everything legal and binding.

I'd suggest she start her "own" clinic. No partners, no headaches...

[davidst01]

Keep her existing job, work for the clinic as well.

Many Thai doctors run 2 or 3 jobs at the same time.

No need for her to take risks.

Don't invest your money, no need for you to take risks either.

I would agree with above post. She's willing to give up a good government job? What about all the benefits she gets at the moment. Don't government employees have a great retirement pension?

Take it slowly, make everything legal and binding.

I'd suggest she start her "own" clinic. No partners, no headaches...

OP report here... I concur with a lot of the opinions above and can report that I have no intention of ever opening my wallet for this venture. If I were to be serious on my gf and if we were to be having a kids etc I might then consider opening up a business with her and I as the sole owners.

A member above correctly made the assumption that they will all have little or no business experience. I worry for my gf as she is so kind and has a good heart. One of the other ladies is a lot more stronger in the personality department.

The biggest crock of s###t in this country is the losing face concept / greenge jai. I think that my gf would not be strong enough to insist on an attorney drawing up a legal agreement.

I can only suggest so much and then will stay out of it as its not my money.

I appreciate all the opinions

cheers

[BlackJack]

Been through this

Suggest 30% comes off the top of all revenue to pay for rents, maintenance, elect, water, etc etc

the 70% left will be divided by the 3 investors

draw up a contract Co., Ltd

Have disclaimers and waivers

The tighter you make the legal agreements to better

however from experience you may see some of the investors not coming on board as the will be legally bound and responsible

PM if you need more info

Thai888

[harrry]

Not your money, now or in the future failure, not your problem.

Is his problem if it goes bust. Husbands are responsible for debts of wife.

[cracker1]

They need some business management training. If they have been working in a Government hospital they will have no knowledge of how to manage a business and I fore see the end of a wonderful friendship.

[rct99q]

Good for your girlfriend. Go for it. Remember this is Thailand. Not the West. No need for a lot of the <deleted> posters are presenting here. Business plans/management. Here you open the doors, let the customers come in and bank the money.

Nearly every block has at least one private clinic of some sort or another. I live in a small town in NE Thailand and there must be 100's of these types of clinics. You telling me they all have business degrees....bah!

Let her and her colleagues work it out. One of the best pieces of advice was the poster who mentioned your girlfriend should work part time around her regular job in the clinic. This is how to do it.

Good luck for her, it will not be as complicated as you are making it out to be.........stop thinking western.

[Guitar God]

Rule number one: Don't have partners.

Rule number two: See rule number one.

[rayongchelsea]

Good for your girlfriend. Go for it. Remember this is Thailand. Not the West. No need for a lot of the <deleted> posters are presenting here. Business plans/management. Here you open the doors, let the customers come in and bank the money.

Nearly every block has at least one private clinic of some sort or another. I live in a small town in NE Thailand and there must be 100's of these types of clinics. You telling me they all have business degrees....bah!

Let her and her colleagues work it out. One of the best pieces of advice was the poster who mentioned your girlfriend should work part time around her regular job in the clinic. This is how to do it.

Good luck for her, it will not be as complicated as you are making it out to be.........stop thinking western.

They hardly understand that money in is not money to be spent. Have no idea of p/l, balances, cash management, vat returns etc..stock control...

It isn't western thinking.it's universal.its common sense.

Western thinking in the main is way superior to most non western thinking ways..

NE thailand ain't Bangkok..where you require much more capital, they are leaving their good jobs etc..it's not the same..little to start with, little is made, little is lost up there.

Agree..do both.

Business plans etc are not complicated, but business partnerships are..

Sent from my iPad using Thaivisa Connect Thailand mobile app

[northengr]

Having been half of two partnership in the US, Land of only honest people of course. and now running another business with pseudo partners in a professional business (Architecture and Engineering) I am pretty qualified to comment on you and gf plans for business. I also was and am in business relationships here with Thais.

In amongst all the sniping and negative comments there was a lot of real good comments here on TV. I hope you suffer through reading them all. I got burned out part way, but then i am not the one asking for advice.

Most new businesses seem good idea (elst why do it?) but the problems come later. How to break up (think divorce and separation agreement)? how to resolve differing values, like re-invest or take out money to spend? How cheap to be on the operation and facilities?

You should not need to invest YOUR money if the women are competent, and if they are not competent, then you should DEFINITELY not invest.

The advice on separate businesses sharing a space and some support staff, is the best answer here. DEFINITELY spot on. It is sort of the way my current NY business is running. Either that or let the dykes set up a business and contract in to use space and support and have gf run her biz enough on her own she could move it or close it as she sees fit after some contractual set time. So either three businesses sharing a space or two businesses sharing or with one dominant and the others provide startup monies and operate as separate businesses.

Me fears the "setting up business" is as much about status as about making money and when the newness wears off, what business and what friendship will they have and what differences.

M

[Faranguy]

Here is the best advice for anyone going into a partnership. The first thing you do is determine how you will eventially break up the business.

There is 113 years of experience in my family with this concept. It filters out people you do not want to deal with. If they do not agree, don't get involved. It is not a matter of trust, it is a matter of due diligence.

[Ianatlarge]

Don't get involved. D.o.n.'.t.

[Goat Roper]

The only thing worse than a partner................is two partners, full stop.

[steven100]

I would suggest don't go into this with partners or especially friends, it will fail . If she goes it alone and hires the others then that's fine .. she has all the control then.

Sent from my TR736 using Thaivisa Connect Thailand mobile app

[SOTIRIOS]

...as long as you don't put up any money yourself...or sign as a guarantor....

[Ulic]

You have an incredible amount of good advice here. Don't be involved financially in any way, is my only input.

Best of luck to your GF. A mine field of possibilities.

[Travelman868]

My advice, let your g/f do what she wants with HER OWN money, do not get invloved.

Your g/f will always be the nong in the pee/nong status of her colleagues.

If they havent even agreed on how profits should be split dont get invloved, is your g/f leaving herself open to being exploited by being the "juniour" partner?

Thais know better than we farangs on how these things work.

Junior partner paying for 33.3% of set up Hmmmmm The 2 other partners are a couple Hmmmmmmmmm

The problem in Thailand is that any of the people involved can steal the money and the remaining "partner" is left responsible.

There is no protection as everyone has to have access to the money.

I helped a friend start a restaurant, I only put in about 10,000 baht. It was started because the house where we lived used to be a restaurant.

As we lived there the rent was free. All went well for about 3 months they earned some money and replaced the drink stock that was used.

THEN they went on a spend up using most of the spare cash and could not afford to buy the drink. It lasted about another 2 months and

then closed.

They took no notice of my advice until they realised I was not going to give them more money.

If I had been able to control the money, by now they could have had a business giving them a good living.

[kerrysum]

It seems if you can't open a business here by yourself don't do it with your friends. My wife learned this the hard way. It was a sad lesson with her money because I refused to be part of the "business" she did not listen to common sense because it was her friend. Lets just say that is the last time she listens to her friends. Thais crap on Thais more than Thais crap on Farangs everyone thinks they are out to ripoff Farang you should see what they do to each other. The greatest moment of this whole disaster for my wife was calling in a favor and these asshats and making them return everything she purchased. Their big fish was not the same as her big fish great sh*t watching them taken to the police station playing big shot to be put in their place. Now that being said if you are not Thai do not get involved with your funds. If its someone you care about try and protect that person legally as much as possible. There are no friends in business only people willing to put their interests first in Thailand.

Good sound advice in my opinion... there needs to be a basis of common sense,,, in fact it doesn't even matter, if it is friends or even family.....

My wife is learning the same lesson, Business is business......... Just my opinion.....

[kinmaew]

When I worked in Thailand one of the long time teachers once said to me "Don't have anything to do with Thais setting up a business"

Let your GF and their friends sort this out themselves, as doctors they should know what they are doing if they don't, then they should not be in business. Anyone embarking on this type of venture should have a business plan and the one KEY thing for you to remember is that your money should not be involved at all if it does, I can 100% guarantee that you as a foreigner with absolutely no legal rights or recourse will be facing a world of pain my friend. Take heed.

[Farma]

I believe the OP's girlfriend would have studied business management as part of her doctorate.

This is a breakdown of how my wife and a group of her medical professional friends (doctors, dentists, pharmacists) operate in various locations (Bangkok, Pattaya and upcountry) to give an idea.

1 x family partnership share patients, clinic and staff.

2 x husband and wife couples. Each couple operate husband and wife clinics.

2 x dentists own and operate their own dental clinic employing additional dentists.

The other 5 all operate their own clinics.

Maybe it's just them or it could be they operate either on their own or in family groups this way to avoid business partnership hassles.

Edit clarity.

Edited February 20, 2014 by Farma

[Farma]

In addition to my earlier post.

Over half of the people mentioned continue to work in their govt jobs during the day.

Most clinics start in leased premises until established with a regular customer base. It also frees up capitol to assist with start up costs like building renovation, medical equipment etc.

[taipan1949]

Sorry but I have been here in Thailand and I have seen people from all walks of life screwed by the Thais. It took some of them 17 years in one case, including a daugher from the Thai/Farang and another just now after more than 20 years. YOU WILL LOSE. THAIS WILL ALWAYS WIN.

[Pinot]

It seems if you can't open a business here by yourself don't do it with your friends. My wife learned this the hard way. It was a sad lesson with her money because I refused to be part of the "business" she did not listen to common sense because it was her friend. Lets just say that is the last time she listens to her friends. Thais crap on Thais more than Thais crap on Farangs everyone thinks they are out to ripoff Farang you should see what they do to each other. The greatest moment of this whole disaster for my wife was calling in a favor and these asshats and making them return everything she purchased. Their big fish was not the same as her big fish great sh*t watching them taken to the police station playing big shot to be put in their place. Now that being said if you are not Thai do not get involved with your funds. If its someone you care about try and protect that person legally as much as possible. There are no friends in business only people willing to put their interests first in Thailand.

Thais crap on Thais. What we see as Thais crap on farangs is just the tip of the iceberg. This is what makes doing business in LOS virtually impossible. In the end, you're going to have to do business with Thais and they're terrible at business. There are only short term goals. Normal business practices don't apply here.

Never own a business in Thailand. Avoid doing any business here. Formal business agreements and contracts are worthless. The court system is useless.

Starting a new business anywhere is always difficult. In Thailand....forgedaboutit.

[louse1953]

My gf has Dr in front of her first name and currently works in a government hospital. She has been in discussion with 2 of her work colleagues at the hospital regarding the possibility of opening up a new clinic- on the basis of quitting their jobs and running the business together. They have found a good location that has 4 rooms (at the street frontage level) and a residence above (3 levels).

The other 2 are ladies and all 3 girls are aged in their late 20's. The other 2 are in a relationship with each other and live together. One of the colleagues is currently the 'Senior' to my gf- i.e. she is currently ranked higher than my gf but there is a lot of respect between the 3 of them and all have high integrity. My gf really trusts the other 2 ladies.

I wanted to see if any of tv.com members can offer advice as to how to proceed. I told my gf that she must insist on the following:

- 33.3% share of company set up between the 3 of them

- get a legal agreement drawn up by an attorney

- they all liable for 33.3% of expenses

- knowledge sharing and training is expected

- the new clinic must be high spec to western standard.

Can you think of anything else. Can you suggest any items that should be in an agreement written by the attorney. Should my gf get her own attorney to seek advice on this? One of the big issues is to agree how the profits are split up - when sometimes they all work different number of hours doing different treatments at different costings.

Thanks so much if your able to offer any useful opinions on this

Congratulations !

You've found yourself a nice young doctor.

Hopefully you are wealthy enough so that this investment of 10 million baht or so (YOUR share only, is a mere flutter at the tables)

Are YOU a physician as well ?

Skin clinic, by any chance ? Weight loss ? Dental ? Eyes ?

You are not a businessman, are you?

Now, will this "investment" you are about to get front-ended on be collateralized ?

How will the books be done ?

Profit after salaries ?

Where is your leverage ?

What are your liabilities ?

Company cars can also be Benzes.

Share profits ? Really ?

The mind simply reels, david01

Simply forking reels ;-))))

"Sometimes, 'fuggedabowdit' just means fuggedabowdit."

Don't know where you have been lately,but people can borrow from banks these days,except YS.

[louse1953]

It seems if you can't open a business here by yourself don't do it with your friends. My wife learned this the hard way. It was a sad lesson with her money because I refused to be part of the "business" she did not listen to common sense because it was her friend. Lets just say that is the last time she listens to her friends. Thais crap on Thais more than Thais crap on Farangs everyone thinks they are out to ripoff Farang you should see what they do to each other. The greatest moment of this whole disaster for my wife was calling in a favor and these asshats and making them return everything she purchased. Their big fish was not the same as her big fish great sh*t watching them taken to the police station playing big shot to be put in their place. Now that being said if you are not Thai do not get involved with your funds. If its someone you care about try and protect that person legally as much as possible. There are no friends in business only people willing to put their interests first in Thailand.

Spot on Rick,there are no friends in business,anywhere.

[louse1953]

Good for your girlfriend. Go for it. Remember this is Thailand. Not the West. No need for a lot of the <deleted> posters are presenting here. Business plans/management. Here you open the doors, let the customers come in and bank the money.

Nearly every block has at least one private clinic of some sort or another. I live in a small town in NE Thailand and there must be 100's of these types of clinics. You telling me they all have business degrees....bah!

Let her and her colleagues work it out. One of the best pieces of advice was the poster who mentioned your girlfriend should work part time around her regular job in the clinic. This is how to do it.

Good luck for her, it will not be as complicated as you are making it out to be.........stop thinking western.

100's!!!55555