One of the biggest reasons that Pattaya Businesses fail/implode is because of partnerships.
Most partnerships fail in Pattaya, that’s not a researched fact, but just an observation and that doesn’t mean that a business needs to fail for it to be a failure as a partnership. The partnership can break down, destroy the business, stop it from growing, you cannot always see what you have missed out on by having bad partners.
Here are some reasons why partnerships can cause issues, but a lot of these problems can be prevented by seeking professional advice and getting all the contracts, expectations, job roles, salaries and go through any possible scenarios.
- Dishonest partners, this is an obvious one but we all have different ethics, is borrowing money and not telling anyone dishonest? is giving yourself bonuses dishonest? is giving your mates drinks and not telling people ok? Is making things in your favour acceptable? (but there are many arguments of what can or can’t be in your favour) You might be saying no to these items, but not everyone thinks the same, there are even partners out there not paying bills or cheating other people, which gives all other partners and the business a bad reputation. Some people think that spending at other peoples bars is work and ring the bell and put it down as company public relations expense.
- Lazy partners – some partners may agree to do certain roles but never do them, some may not turn up for meetings, some may expect other partners to help them. If people aren’t pulling their weight and they are getting equal payments, then either the payment needs to change or they need to step up
- Risk-averse/negative partners, there are always pessimistic people, scared of risk, putting the breaks on. Its good to have a pull at each end, but the business needs to take risks to grow, adapt and thrive.
- Partners taking the glory, steering the ship in the wrong way, killing off opportunities, causing conflicts with other business owners/staff/customers.
- Some partners not having the same funding available or a lack of ability to stop taking profits for expansion.Different ethics, morals can be a problem when dealing with staff issues and policies. And how are conflicts between partners sorted?
- The conflicts I have witnessed is mostly unequal partners across several establishments and the bills not being divided fairly, running costs not distributed fairly, and certain locations may get preferential treatment to suit the people with the highest percent in that location, distributing good staff fairly and events is even more of a challenge, its difficult to keep everyone happy, so rules need to be put into place. I have also heard of people agreeing to take out what money they need, but we all have different definitions of what we need! Salaries and percents should be agreed upon before any deal is made.
- The trick here is to manage expectations, to make sure rules and get some structure in place. You can email Grant at [email protected] for professional help setting up a structured partnership with all the other contracts and due diligence required in Thailand.