I am about to start a business initiative and have been weighing the options of taking on an initial partnership with a firm run by some family members.
Before I get into this.. I did a little brainstorming on it and came up with the following "ideas".
Would appreciate that those who have ,are and know the business model, and specifically have had experience with or seen family business partnerships give a look.. even if a glance, and see if I missed anything before getting into the pool of sharks.
Possible issues working with Khandan(name changed of company):
1. Relatives: Undue expectations from their side and possibly from ours would cause friction and possible misunderstandings in the future which will affect personal relationships.
2. Intentions?? Our intentions are to break into this market and capture at least 10% if not more of it. The sales profit from this endeavor go to companyusa and we receive the commissions for the sales.Khandans intentions would be similar to ours albeit a little more ambitious, they wish to use our contacts and perhaps assert their experience in this trade to initially provide a stable rolling business platform and then take a chunk of the market. If the products are sold at companyusa s prices then the commission received from those sales will be divided..and by virtue of their larger investment in the process Khandan may claim a greater portion of the commission. Which negates the very purpose of our idea. Which is to be able to earn enough so that it supplements and eventually replaces a career as our primary cash cow. Will such a share of profits be acceptable?
3. The co-ordination between Khandan and us is important; will that be possible considering the existing interpersonal relationships? Any other company would be treating us as business partners , can the same be expected of Khandan? Can I as a representative of companyusa expect the same level of respect and communication.. or should I expect to be treated on the same level as their nephew. In a business relationship, it could be disastrous.
4. Expansion: If and when the opportunity to expand presents itself, and there are venues available beyond what Khandan has cultivated. Do we expand solo or do we take them onboard.. if we have the ability to make solo progress and no longer wish to be part of Khandans plans. How much problems with that cause, assuming orders and maintenance will continue to flow for existing clients and since I will still be the sole representative of companyusa it can be expected as such that I will remain so. What issues, complaints can Khandan bring up?
5. It is plausible that due to (or not) unforeseen misunderstandings.. Khandan may try to circumvent us and approach companyusa directly. What will be the consequences of such a move?
a. if companyusa decides that its relationship with us is important, then Khandan is forced to look for alternatives and we are forced to treat them as competitors, therby moving any and all resources available to us to try and eject them from our market. Unless we are prudent enough to set up a infrastructure close to home that is under our control which can take over the operations for the clients of companyusa ; there will chaos in trying to handle the existing clients without the proper paperwork, transport, storage and interpersonal relationships with the people involved in the process.
b. Expotech values business and decides to engage karsaz, in which case we will be at a losing end, even if we try to engage other orders based on our status as companyusa s representatives; the ease with which Khandan can provide the resources as middlemen between clients and companyusa is important. The only alternative to this is that we cultivate a mirror infrastructure that allows us to offer similar services at less cost to the client with less profit to us.
Is this feasible?
Possible advantages working with Khandan:
1. Existing contacts, infrastructure and procedures: Khandan has been acting as middlemen for multiple companies for a few years now. Which gives them the experience in dealing with all the problems and procedures associated with the paperwork, movement and storage of imported bulk. This allows us to concentrate solely on co-ordinating and receiving orders from corporations and forwarding the RFPs to companyusa . As long as the communique on the status of orders etc from companyusa comes solely to me it will ensure that I stay in the loop and continue to be a necessity for Khandan and never a liability.
2. Whilst privately assuming a solely business orientated trust it may be possible to use the resources of Khandan for expanding the sphere of operations from oil & gas to other fields.
3. Using existing storage facilities of Khandan , it will be possible to avoid expenditures incurred for storage and possibly transportation. Moreover the advantages due to the relationship with companyusa need not be forwarded to Khandan and using myself as the sole conduit for companyusa I may be able to treat Khandan as a customer and as a facilitator in Pakistan.
OVERALL Khandan MUST BE TREATED AS ANOTHER BUSINESS ENITITY, ITS CEO, CFO,CAO, CSO AS BUSINESS PARTNERS IN ALL TRANSATIONS WITHOUT ANY EXCEPTIONS TO THE RULE.
EVERY MOTIVE MUST BE QUESTIONED, EVERY CORRESPONDANCE/RECIEPT/MISC PAPERWORK DOCUMENTED AND EXAMINED.
WE WILL ACT, AND PURSUE ANY RELATIONSHIP WITH Khandan OR ANY OTHER COMPANY AS REPRESENTATIVES OF companyusa AND AS SUCH WILL NOT ENGAGE IN ANY ENDEAVOR WITHOUT THE CONSENT OF companyusa .
WE WILL NOT ENGAGE IN ANY ACTIVITY OR PARTAKE IN ANY DEAL WITH ANY PARTY THAT IS DETRIMENTAL TO companyusa S INTERESTS EVEN IF REFUSAL TO DO SO EFFECTS OUR INTERPERSONAL RELATIONSHIPS WITH THE PEOPLE IN THE AFOREMENTIONED PARTY.
Before I get into this.. I did a little brainstorming on it and came up with the following "ideas".
Would appreciate that those who have ,are and know the business model, and specifically have had experience with or seen family business partnerships give a look.. even if a glance, and see if I missed anything before getting into the pool of sharks.
Possible issues working with Khandan(name changed of company):
1. Relatives: Undue expectations from their side and possibly from ours would cause friction and possible misunderstandings in the future which will affect personal relationships.
2. Intentions?? Our intentions are to break into this market and capture at least 10% if not more of it. The sales profit from this endeavor go to companyusa and we receive the commissions for the sales.Khandans intentions would be similar to ours albeit a little more ambitious, they wish to use our contacts and perhaps assert their experience in this trade to initially provide a stable rolling business platform and then take a chunk of the market. If the products are sold at companyusa s prices then the commission received from those sales will be divided..and by virtue of their larger investment in the process Khandan may claim a greater portion of the commission. Which negates the very purpose of our idea. Which is to be able to earn enough so that it supplements and eventually replaces a career as our primary cash cow. Will such a share of profits be acceptable?
3. The co-ordination between Khandan and us is important; will that be possible considering the existing interpersonal relationships? Any other company would be treating us as business partners , can the same be expected of Khandan? Can I as a representative of companyusa expect the same level of respect and communication.. or should I expect to be treated on the same level as their nephew. In a business relationship, it could be disastrous.
4. Expansion: If and when the opportunity to expand presents itself, and there are venues available beyond what Khandan has cultivated. Do we expand solo or do we take them onboard.. if we have the ability to make solo progress and no longer wish to be part of Khandans plans. How much problems with that cause, assuming orders and maintenance will continue to flow for existing clients and since I will still be the sole representative of companyusa it can be expected as such that I will remain so. What issues, complaints can Khandan bring up?
5. It is plausible that due to (or not) unforeseen misunderstandings.. Khandan may try to circumvent us and approach companyusa directly. What will be the consequences of such a move?
a. if companyusa decides that its relationship with us is important, then Khandan is forced to look for alternatives and we are forced to treat them as competitors, therby moving any and all resources available to us to try and eject them from our market. Unless we are prudent enough to set up a infrastructure close to home that is under our control which can take over the operations for the clients of companyusa ; there will chaos in trying to handle the existing clients without the proper paperwork, transport, storage and interpersonal relationships with the people involved in the process.
b. Expotech values business and decides to engage karsaz, in which case we will be at a losing end, even if we try to engage other orders based on our status as companyusa s representatives; the ease with which Khandan can provide the resources as middlemen between clients and companyusa is important. The only alternative to this is that we cultivate a mirror infrastructure that allows us to offer similar services at less cost to the client with less profit to us.
Is this feasible?
Possible advantages working with Khandan:
1. Existing contacts, infrastructure and procedures: Khandan has been acting as middlemen for multiple companies for a few years now. Which gives them the experience in dealing with all the problems and procedures associated with the paperwork, movement and storage of imported bulk. This allows us to concentrate solely on co-ordinating and receiving orders from corporations and forwarding the RFPs to companyusa . As long as the communique on the status of orders etc from companyusa comes solely to me it will ensure that I stay in the loop and continue to be a necessity for Khandan and never a liability.
2. Whilst privately assuming a solely business orientated trust it may be possible to use the resources of Khandan for expanding the sphere of operations from oil & gas to other fields.
3. Using existing storage facilities of Khandan , it will be possible to avoid expenditures incurred for storage and possibly transportation. Moreover the advantages due to the relationship with companyusa need not be forwarded to Khandan and using myself as the sole conduit for companyusa I may be able to treat Khandan as a customer and as a facilitator in Pakistan.
OVERALL Khandan MUST BE TREATED AS ANOTHER BUSINESS ENITITY, ITS CEO, CFO,CAO, CSO AS BUSINESS PARTNERS IN ALL TRANSATIONS WITHOUT ANY EXCEPTIONS TO THE RULE.
EVERY MOTIVE MUST BE QUESTIONED, EVERY CORRESPONDANCE/RECIEPT/MISC PAPERWORK DOCUMENTED AND EXAMINED.
WE WILL ACT, AND PURSUE ANY RELATIONSHIP WITH Khandan OR ANY OTHER COMPANY AS REPRESENTATIVES OF companyusa AND AS SUCH WILL NOT ENGAGE IN ANY ENDEAVOR WITHOUT THE CONSENT OF companyusa .
WE WILL NOT ENGAGE IN ANY ACTIVITY OR PARTAKE IN ANY DEAL WITH ANY PARTY THAT IS DETRIMENTAL TO companyusa S INTERESTS EVEN IF REFUSAL TO DO SO EFFECTS OUR INTERPERSONAL RELATIONSHIPS WITH THE PEOPLE IN THE AFOREMENTIONED PARTY.
