Pitfalls When Doing Business Abroad

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Jan Wuethrich
The company name is only visible to registered members.

Pitfall in Thailand
Hello Anders,
Thanks for Your massage.
Our biggest Pitfall in Thailand was in the beginning when we started
our own Company in Thailand.
A Client from my previous Company promised us to give us a nice Job.
This Job should last at least 1 Year and we thought that we can make
a good Money with it. So I resigned from my old Company and I founded
a new one.
After 2 Month of Work preparation the Client dicided to take another
Supplier for that Job.
Undertable Money was the reason why the other Company got the Job and
we not.
The problem was that we had allredy our Company but not enough Money
to carry the expenses. 1 Year it was unbelieavable hard for us. We
had no Project and no Money to continue.
Small Projects came in but not enough Money. Some Clients didnt pay
our Money. We were working allmost Day and Night for Nothing. The
officials also wanted their Money for the Tax and things like that.
Well now we are ok. But if You ask me what was our biggest Pitfall in
Thailand then I say to You:
1) Money ! Never do Business in a foreign Country without enough Cash
in Your Back.
2)Never trust people doesnt matter how trustfully and respectable
they might be.
Regards,
Jan
Hi Jan,
Thanks for your introduction. Maybe you would like to share some of
the pitfalls you encountered in Thailand. I think many people with me
would be interested in this.
Hope to see you there.
Regards,
Anders
- 08 Feb 2006, 05:17 am
Jan Wuethrich wrote: > Hello Anders, > Thanks for Your massage. > Our biggest Pitfall in Thailand was in the beginning when we started > our own Company in Thailand. > A Client from my previous Company promised us to give us a nice Job. > This Job should last at least 1 Year and we thought that we can make > a good Money with it. So I resigned from my old Company and I founded > a new one. > After 2 Month of Work preparation the Client dicided to take another > Supplier for that Job. > Undertable Money was the reason why the other Company got the Job and > we not. > The problem was that we had allredy our Company but not enough Money > to carry the expenses. 1 Year it was unbelieavable hard for us. We > had no Project and no Money to continue. > Small Projects came in but not enough Money. Some Clients didnt pay > our Money. We were working allmost Day and Night for Nothing. The > officials also wanted their Money for the Tax and things like that. > Well now we are ok. But if You ask me what was our biggest Pitfall in > Thailand then I say to You: > 1) Money ! Never do Business in a foreign Country without enough Cash > in Your Back. > 2)Never trust people doesnt matter how trustfully and respectable > they might be. > Regards, > Jan > Hi Jan, > Thanks for your introduction. Maybe you would like to share some of > the pitfalls you encountered in Thailand. I think many people with me > would be interested in this. > Hope to see you there. > Regards, > Anders
Gurudatt Prabhu
The company name is only visible to registered members.

Re: Pitfall in Thailand
Jan:
It is sad to know that you had problems.But there willbe problems in doing business every where even in one's own country.MNC 's are doing great and facing all kinds of odd situation because they are prepared for it,do risk analisys.May be we should anticipate all god and bad things and plan accordingly
Guru
Jan Wuethrich wrote:
Hello Anders, Thanks for Your massage. Our biggest Pitfall in Thailand was in the beginning when we started our own Company in Thailand. A Client from my previous Company promised us to give us a nice Job. This Job should last at least 1 Year and we thought that we can make a good Money with it. So I resigned from my old Company and I founded a new one. After 2 Month of Work preparation the Client dicided to take another Supplier for that Job. Undertable Money was the reason why the other Company got the Job and we not. The problem was that we had allredy our Company but not enough Money to carry the expenses. 1 Year it was unbelieavable hard for us. We had no Project and no Money to continue. Small Projects came in but not enough Money. Some Clients didnt pay our Money. We were working allmost Day and Night for Nothing. The officials also wanted their Money for the Tax and things like that. Well now we are ok. But if You ask me what was our biggest Pitfall in Thailand then I say to You: 1) Money ! Never do Business in a foreign Country without enough Cash in Your Back. 2)Never trust people doesnt matter how trustfully and respectable they might be. Regards, Jan Hi Jan, Thanks for your introduction. Maybe you would like to share some of the pitfalls you encountered in Thailand. I think many people with me would be interested in this. Hope to see you there. Regards, Anders
- 08 Feb 2006, 06:32 am
Gurudatt Prabhu wrote: > Jan: > It is sad to know that you had problems.But there willbe problems in > doing business every where even in one's own country.MNC 's are doing > great and facing all kinds of odd situation because they are prepared > for it,do risk analisys.May be we should anticipate all god and bad > things and plan accordingly > Guru > Jan Wuethrich wrote: > > Hello Anders, Thanks for Your massage. Our biggest Pitfall in > > Thailand was in the beginning when we started our own Company in > > Thailand. A Client from my previous Company promised us to give us a > > nice Job. This Job should last at least 1 Year and we thought that we > > can make a good Money with it. So I resigned from my old Company and > > I founded a new one. After 2 Month of Work preparation the Client > > dicided to take another Supplier for that Job. Undertable Money was > > the reason why the other Company got the Job and we not. The problem > > was that we had allredy our Company but not enough Money to carry the > > expenses. 1 Year it was unbelieavable hard for us. We had no Project > > and no Money to continue. Small Projects came in but not enough > > Money. Some Clients didnt pay our Money. We were working allmost Day > > and Night for Nothing. The officials also wanted their Money for the > > Tax and things like that. Well now we are ok. But if You ask me what > > was our biggest Pitfall in Thailand then I say to You: 1) Money ! > > Never do Business in a foreign Country without enough Cash in Your > > Back. 2)Never trust people doesnt matter how trustfully and > > respectable they might be. Regards, Jan Hi Jan, Thanks for your > > introduction. Maybe you would like to share some of the pitfalls you > > encountered in Thailand. I think many people with me would be > > interested in this. Hope to see you there. Regards, Anders
Jan Wuethrich
The company name is only visible to registered members.

Re^2: Pitfall in Thailand
Hello Guru,
Thanks for Your interest to read my article.
Yes You are absolutely right, we were not really prepared for a situation like that.
We learned our lesson and as I wrote are we ok now.

Regards,
Jan
- 14 Feb 2006, 06:02 am
Jan Wuethrich wrote: > Hello Guru, > Thanks for Your interest to read my article. > Yes You are absolutely right, we were not really prepared for a > situation like that. > We learned our lesson and as I wrote are we ok now. > > Regards, > Jan
Johannes H. Schmiedt
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Re^3: Pitfall in Thailand
Hello Jan,

welcome in the group! Thank you for your interesting story. It is good to hear that you have recovered from your pitfall.

However, I would thing that a similar situation can occur almost anywhere in the world. "A deal is only final after all signatures are on the contract" is something I heard quite some time ago, yet it still holds true. But even that is only part of the truth. There is much more to it, but whom am I telling.

With best wishes for your continued success in Thailand,

Hannes
- 14 Feb 2006, 10:55 am
Johannes H. Schmiedt wrote: > Hello Jan, > > welcome in the group! Thank you for your interesting story. It is > good to hear that you have recovered from your pitfall. > > However, I would thing that a similar situation can occur almost > anywhere in the world. "A deal is only final after all signatures are > on the contract" is something I heard quite some time ago, yet it > still holds true. But even that is only part of the truth. There is > much more to it, but whom am I telling. > > With best wishes for your continued success in Thailand, > > Hannes
Jan Wuethrich
The company name is only visible to registered members.

Re^4: Pitfall in Thailand
Hello Hannes,

Thanks for Your massage,
Absolutely , never do something without a contract.

Regards,

Jan
- 15 Feb 2006, 05:29 am
Jan Wuethrich wrote: > Hello Hannes, > > Thanks for Your massage, > Absolutely , never do something without a contract. > > Regards, > > Jan
Heng Ong Ang
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Re^5: Pitfall in Thailand
Hi Jan,

This is definitely not a new story that I've heard across South East Asia. Most of the suppliers or contract manufacturers are willing to move together to a new place (Set up new plant) with customer for new project and new opportunity. In most of cases like this, customers don't guarantee you something or anything, even there is a binding contract. Doing business is practically a taking risk thing and your luck. Proper planning would be very fundamental & helpful, however it doesn't not guarrantee you anything since there are a lot of unknown parameters out there. Planning can't always catch with the changes, we all should learn from this.

Anyway, I am sorry to read about what you guys had been through. But this experience is indeed worth.

Regards
Heng Ong
- 15 Feb 2006, 06:30 am
Heng Ong Ang wrote: > Hi Jan, > > This is definitely not a new story that I've heard across South East > Asia. Most of the suppliers or contract manufacturers are willing to > move together to a new place (Set up new plant) with customer for new > project and new opportunity. In most of cases like this, customers > don't guarantee you something or anything, even there is a binding > contract. Doing business is practically a taking risk thing and your > luck. Proper planning would be very fundamental & helpful, however it > doesn't not guarrantee you anything since there are a lot of unknown > parameters out there. Planning can't always catch with the changes, > we all should learn from this. > > Anyway, I am sorry to read about what you guys had been through. But > this experience is indeed worth. > > Regards > Heng Ong
Jan Wuethrich
The company name is only visible to registered members.

Re^6: Pitfall in Thailand
Hi Heng Ong,

Its in fact true that even if there is a contract existing nothing is guaranteed.
The Law in South-East Asia is very strechable and in many cases the wrong will be right.
Thats how it is here and we had to get used to it.

Good Luck and thanks for Your Interest to read my article.

Jan
- 16 Feb 2006, 05:40 am
Jan Wuethrich wrote: > Hi Heng Ong, > > Its in fact true that even if there is a contract existing nothing is > guaranteed. > The Law in South-East Asia is very strechable and in many cases the > wrong will be right. > Thats how it is here and we had to get used to it. > > Good Luck and thanks for Your Interest to read my article. > > Jan
Anders Moller
(not a XING member)

Re^7: Pitfall in Thailand
An extreme at the other end is in some countries (e.g. Sweden) an oral contract is legally binding as much as a written one.

Many Swedish business people have made big mistakes using this custom abroad. Not exactly in contracts, but in informal business discussions, they would take the oral information as a promise.

I wrote a case on the "Q&A" board under "What are the Pitfalls?"

Sorry, I strayed from the subect somewhat.
- 18 Feb 2006, 4:14 pm
Anders Moller wrote: > An extreme at the other end is in some countries (e.g. Sweden) an > oral contract is legally binding as much as a written one. > > Many Swedish business people have made big mistakes using this custom > abroad. Not exactly in contracts, but in informal business > discussions, they would take the oral information as a promise. > > I wrote a case on the "Q&A" board under "What are the Pitfalls?" > > Sorry, I strayed from the subect somewhat.
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Jan Wuethrich
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Re^6: Pitfall in Thailand
Hello Mr. Pilawa,

Thats exactly what we did after our Pitfall. We continued step by step with small jobs.

Regards,

Jan
- 20 Feb 2006, 10:04 am
Jan Wuethrich wrote: > Hello Mr. Pilawa, > > Thats exactly what we did after our Pitfall. We continued step by > step with small jobs. > > Regards, > > Jan

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