Guest Posted August 11, 2002 Report Share Posted August 11, 2002 Dear All, I have the chance to picth a ( really good...) concept for a big Thai company. Doing this as an individuell, I'm not sure if I will get "ripped off" or not. I can get a guy who's well established here to go with me and act as a partner. And also a lady that works for another big company here has recommended me for the person I'm going to meet. So my questions is, how safe is it to present ideas for a "respectable" Thai company?. I have asked around, and based on that their is a 50/50 chance that they will remodel the idea and launch it as their own idea. I have a business plan, marketing plan, customers, special equipment required for this, logos and all the graphics etc etc. Appreciate comments on this one and how to proceed. Rgs Salle Link to comment Share on other sites More sharing options...
BelgianBoy Posted August 11, 2002 Report Share Posted August 11, 2002 Salle, I've been doing business in Thailand and the whole far-east for the last 22 years and find they are no better or worse than their counterparts in the West....... It really depends on trust and how much you need them and how much they need you...... If it is really something all can do, and you are not indispensable on the job, better watch out, but same warning all over the world. Maybe also consult a reliable laywer to draw up a good contract ? Cheers ! Link to comment Share on other sites More sharing options...
StoneSoup Posted August 11, 2002 Report Share Posted August 11, 2002 Create your own company here, pre-sign initial customers to your firm, register your own web-site domain, and put up your own web site using your logos. Then approach the Thai company to market your idea. Pre-signing the customers is the key point. What makes sense to you as an outsider may not make sense to a Thai company. If you can actually do this (pre-sign customers), then you know you have an idea that can "fly" here in Thailand. Many farang think they have unique ideas that break fresh ground in Thailand, and will prosper. Some actually pull it off. Most learn from "the school of hard knocks" that they failed to grasp local patterns adequately. Good luck! Stone Soup Link to comment Share on other sites More sharing options...
gummigut Posted August 12, 2002 Report Share Posted August 12, 2002 Salle: Unfortunately, being listed doesn't mean having more scruples Really like StoneSoup's suggestion of tying up customers ahead of time with a contract. That's the smart way to go. Unfortunately, approaching the Thai company with an ironclad confidentiality agreement (least as much as you can get here) tends to scare people and set things off on the right foot. I've modified a solid confidentiality agreement that I've used twice here and both times things fell through. Much of the business done here is by word as everything seems to be relationship based. You have two contacts that's recommending you. Place this question on their doorstep. Thus if the big Company takes your idea it's egg on their face. They may be able to take steps to prevent this. Course, they could also rip your idea off Lot of this is conjecture. Much of it depends on what type of business plan it is. What I mean by this is the maturity of the market you are entering, barrier's to entry, ramp up time for rollout... What you need to have in place is alternatives if things go TITs up. Know their competitors ahead of time. If this is a great idea, and you've done your homework, you should be able to pitch this to a competitor. Since you've had more time to research this you should have a leg up. Even if you start your project behind theirs, you should be able to execute quicker. Especially since you already have the manufacturing equipment. If Company A is ripping your idea, the pitch to Company B becomes doubling enticing. They know you have motivation and they are screwing the competition. Also wouldn't worry to much about it too because Thai companies have a problem with execution. The one's who do have their act together are generally more ethical and wouldn't screw you to begin with as they truly understand the value added you bring. Again, all this is conjecture. Good luck! <<burp>> Link to comment Share on other sites More sharing options...
Guest Posted August 12, 2002 Report Share Posted August 12, 2002 Also, avoid revealing the identities of your existing customers as long as possible, even if you are able to pre-sign them. This is where you are probably most vulnerable. J22J Link to comment Share on other sites More sharing options...
Guest Posted August 12, 2002 Report Share Posted August 12, 2002 Thanks guys! For all the inputs and comments. Good for me is that the market is tough ( but is one of the fastest growing industry in the region) and based on my research, the compnay that "listen" to my idea can gain some valuable market shares and also get new distribution channels. My next question is, if company A says we are interested, and asks me how to proceed... What's the procedure ( stupid Q maybe, but this is out of my leauge) joint venture, sell the idea or... Thanks in advance. Salle Link to comment Share on other sites More sharing options...
gummigut Posted August 12, 2002 Report Share Posted August 12, 2002 Salle: Can't really answer that question without getting into more specifics which I'm sure you are pretty hesitant to post here lol. If you believe in the idea then selling it ain't really the way to go. They'd just rip the idea off to begin with and not give you a cut. This is not something that should even be offered up or suggested by you. If they bring it up, then they have to bring up a price tag. Under no circumstances should you bring it up. You say you have a busienss plan, if so then you know the additional capital costs it's going to take to bring this to fruition. I don't know what you bring to the table. Assuming you just bring knowledge and know-how (I know you've got more as you say you have equipment. But not knowing what equipment, cost of said equipment, additional capital costs needed, there is no way I can make a suggestion) you would setup a new company or some sort of joint venture and you'd end up with something like 20% if you meet agreed upon benchmarks or something like 10% if you are just successful. This is all based on western VC. Sure things are a bit different over here. Always pitch for more, but in the west this is what we are talking about. Course things are different on a case by case basis. Wide generalizations here. All depends on what you bring to the table in terms of contacts, capital, and management abilities versus the market to be broken into or made. Okay, back again. You have a business plan, then I'm assuming you have an implementation and ramp up plan. So you know what the next step is. The question I think you are asking is organizational structure. Can't really be answered without knowing who you are approaching and the market you will be entering. Again stuff you won't want to divulge here. Ahhh, asks your two contacts if they have the appropriate business background. Gah, repeating myself. Time to go. If you want we can get together and talk. I do this over meals, and warning, foods on you (but you can choose the venue I'm also not afraid of signing confidentiality agreements <<burp>> Link to comment Share on other sites More sharing options...
buffalo_bill Posted August 12, 2002 Report Share Posted August 12, 2002 Salle, need to know more about your approach than you might probably willing to release here , but please consider this : people who easily buy and sell fake watches , pens, shirts as a nationwide accepted way of doing business might have no hesitation to copy also your ideas. The ones with the Rolex do mostly not even have a bad conscience , " Just sell imitation " . Business ethics here are different from what you probably expect. It is the local style. Based an my own experience I would never give any real secrets away to a Thai partner; this is because I clearly say that Thais become very greedy once easy money is in sight. And one more : if you need a public funboard like this to evaluate your business plans I have my doubts about your comercial future .In case your idea is really worth something better be cautious and seek professional advice . Reading your post again you might have indeed an idea which is worth gold and you have to take that chance, I had the same with a Taiwanese company years ago. If it is like this, take a coin and let it decide. bbill you don't want to open a gogo bar ? Link to comment Share on other sites More sharing options...
BelgianBoy Posted August 14, 2002 Report Share Posted August 14, 2002 And one more : if you need a public funboard like this to evaluate your business plans I have my doubts about your comercial future .In case your idea is really worth something better be cautious and seek professional advice BBill, I resent that ! It is a funboard, but the whole spectre of human kind is represented here, including lots of us in farangland or in LOS doing business WITH Thais ......... Lots of experience to tap from ! Cheers ! Link to comment Share on other sites More sharing options...
gummigut Posted August 15, 2002 Report Share Posted August 15, 2002 YAH!!!! I resent that too. Who says we don't have professional advice. I've even got 5-baht once!!! You can get lots of professional advice!!! Though we are top weighted on solving your remedial STD's but hey! <<burp>> Link to comment Share on other sites More sharing options...
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