The Philippine Online Chronicles

It is not easy to find a business partner. We found that out first hand.  A hard leason learned the hard way. 

When we decided to leave Germany to start a business venture in the Philippines, we thought it would be easy.

Although we didn’t really advertise our intention, aside from letting our family, relative and close friends know that we are relocating to Manila -- business proposals poured per e-mail, by word of mouth and even by snail mail.

Family have suggestions. Relatives shared ideas. Close friends offered recommendations. First-time acquaintances gave advices. Books on business were presented to us.

We almost drowned in the deluge of possibilities thrown to us. There are enough business partners out there. There are enough business investments. There are enough business investors. There are enough people to meet. There are enough companies to look into. There are enough information to use for researches.

There are more than enough to make everything simple or complicated, depending on how one looks at it. My husband took the simple view and I took the complicated one. Does this mean we were careful?

I should think so. First, my husband and I talked about our plan. We explored what we can, what we already did and what we could do; including our finances. Then we decided on what our business investment will be and where it would go and how we will start. My husband plotted our business plan. At this time, we accepted the help of competent friends with knowledge in accounting, legal, human resources and government services.

One thing we agreed upon is that we would need business partners. I have been out of the country for more than 15 years and my husband is a foreigner; although we have an idea of what we want. We don’t really know where we should start. Though we started with all the legalities of having a foreign partner in the firm.

First thing we did was ask a legal consultant to check out possible business opportunities for us. We also did our own research -- talked to people directly involved in the business area we wanted to enter; talked to customers; talked to suppliers; talked to some government and service officials. We received positive responses; therefore, we pushed forward. The intension is to work on it ourselves and at the same time, look out for available business partners.

We talked to close friends with the particular business know-how first. We read books. We searched the Net.

Then a family member introduced his boss. His boss knows people, the right people. His boss knows the business we wanted to go into. His boss has enough experience about the business. His boss is knowledgeable about the legal processes. His boss has clout with the government. His boss is a professional. His boss is a pastor, a doctor, a philanthropist. His boss is the perfect business partner for us.

We met. We talked. We explored. Everything seemed okay. The business partner offered us a partnership. He offered us a wide range of foreign partners, too, saying he has already talked to several foreign investors. He even showed us photos of supposed to be business lunches with his foreign partners. Even brought along thick folders of documented business deals he closed; deals that are still awaiting his consultancy; deals that are specially arranged for us.

My family knows our business partner; and seemed to have been enjoying a very close relation with his family, too. That is supposed to be a good sign, right?

I attempted to search about the man in the internet. There was nothing about him. Nothing good, nothing bad. That should be good, right? After all, my family knows him; my brother-in-law has been in various business deals with him. There is nothing to worry about. We signed a contract with him as a business partner. We were bound to a good start.

That was what we thought.

When we took the steps to begin the business foundation, we realized it was all air. He did not even know the documents needed to apply with the Securities and Exchange Commission. He could not deliver on time. He delegated responsibilities. He went his own merry way. He arranged secret meetings, excluding other potential partners. He suggested cancellation of contracts with people we trust. He asked us to sign blank contracts!!!

And then he negotiated alone with the supposed company executives. His reason? My husband was a foreigner, whose presence will jack the prices up.

He was all over but did nothing. The man is a poser, a scammer – I cannot believe we ended up with the nightmare of a business partner.

Therefore, nothing came out of the business partnership. Time wasted, effort blasted, money squandered – a real nightmare! (Be careful because the man is still out there creating fantasy business deals. Unfortunately, the justice system in our country makes it easy for people like him to thrive.)

There are indeed hazards in finding a business partner.

For us, we have not even started and yet the problems came fast. Others are already deep into the business partnership before stumbling into challenges that destroys the relationship.

The next business partnership we entered into?

It went smoothly because of lessons learned:

Do background checks. Inform the possible business partner about it, and tell them they are free to do background checks on you, too. Meet some of their business associates if possible.

Take time to sit down and talk intensely about your business goal. This means spending quality time discussing each others’ expectations, finances, weaknesses and strengths, future plans, priorities, etc.

Believe and respect each other. Honesty, trustworthiness, dependability really counts.

Complement each other. Two great minds are better than one.

Best of all, trust yourself. Your instinct. Not a very practical advice, I know, but it helps a lot. After all, it is your future that is involved.

And take note that friends are friends, family are family but that does not mean they are good business partners for you, too. Therefore, learn about their business experiences and explore everything with them before entering into an agreement with them.