Need advice on starting a business
Hi, I am planning to start a business in Doha in the field of my expertise, I am currently preparing business plan, I already found a sponsor for my start up who is willing to help in all the stage from CR to investment, Until I see some income I donot have idea to bring much resources other than a driver..
As there are much competitors in the same field, either business can be successful or failure (50% success , 50% failure), now my question is , what if business failed and what would be the problem I would face from the investor , , (as he is the one going to invest), before start up the business I have clearly explained about these to my investor, in case a failure of business Can he force me to return all investment with taking legal action,
and I need an advice on how to think about my earning , what are the options available to think about my earning, can I go for fixed salary based or profit sharing base.., Please give me some advice on this who are expertise on such startups..
this might be a silly question but please help me without insulting.. and might be there are lots of grammer mistake, I am fluent only in arabic , not english.. so please donot mind such mistakes
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English in the main Forum only please so we can all understand. Thanks (Moderator)
Thanks a lot acchabacch for a nice reply.., yes as u mentioned i will make a initial agreement with the partner and detailed about the responsibilites on each side has to take on an unsuccessful case, because I am only expert on my field but has no enough money to invest, this business is not a new product, (but ofcourse i will be introducing a new product in the ,market soon after started,), but one promise I will give him about my hard work,... hope everything will go fine...
If you go into partnership with anyone, it would involve taking responsibilities of both the success or the failure of the business. It all depends on the type of agreement you make with your partner. I doubt very much if your partner would be willing to take the full losses should the business collapse but you can have everything clarified at the beginning. It is always better have a written agreement with your partner right at the very beginning where each terms and conditions have been clearly spelled out and no ambiguity is left. If you are introducing a new idea into the market and are sure of its success, then you can work out the terms with your partner.
There should be an agreement between you and your partner before starting a business. The agreement clearly mention the percentage , profit , loss, liquidity. A part from that agreement he cannot produce any valid dovument for obtaining loss amount. He can move according to the agreement. You have to know very well Companies Commercial Law before signing the business agreement. Here i know some people they do very good business in qatar and when money flows the Qatari partner will abscond other partner and grab the full business. Thats the season now. You can find so many innocent business person are in deportation jail because of fake abscond filed by partners and grab full business to avoid profit share. So while making agreement make him only as a stake holder and not to be a decision Maker in Management. So that he cannot abscond you even it goea loss and he will have right to get his share only. Read CCL companies commercial law you should know everything
is it normal making such agreement on a start-up..., Molten Metal, I expected more advice from you , whom you are popular user in QLs
Thanks all for your best advice, I need more advice on how to talk about profit sharing, Can I talk on fixed salary base, or I must go on profit sharing base, if so how much percentage each party will get, I am not going to put any money investment , But I hoped to work hard to generate the expected revenue and guide the team ( 1 salesman only initially) too work hard..., I am not rich but still an expert in my field, on this startup I donot want to waste much money, but still I prefer not to take any risk on a failure business.,, so can I make an agreement like my partner has to take full risk and also the business success, failure can be measured on a sucessfull run for atleast 3 - 4 months...
Good morning Fathima,
Let me start off by saying it will not be easy !!!
Starting a business will take time,effort,commitment and passion.
You will feel like quitting but don't keep heading strong and work hard.
In order to Succeed and beat your competitors you really need to market and advertise your business by Online and offline. In today's world we use Facebook,twitter,Instagram and lets not forget Qatar Living use these as your platform and sell your business.
In Addition, remember to have a good brand identity. Brand identity is what people will judge you on before even knowing about your service or product, If your brand Identity does not look aesthetically pleasing to the client they will not be motivated to invest in it ( CONTACT ME I CAN HELP YOU IN THIS PART AS I AM A FREE LANCE GRAPHIC DESIGNER)
Lastly, GOOOD LUCCKK :D
Good luck , Fathima ..........................
Running a business here requires guile and the patience to listen to complaints and ignore them - just ask Rizks
1. The success rate for any new small business is less than 20%.
2. The operating costs like rent and salaries are very high that would not allow you to make any surplus for you or the other partner. You will have to struggle to pay for the rentals and salaries.
3. The competition is again very high because the market is small and shops are more and more.
4. The sponsor should not charge any fee in the first six months.
5. Yes, you would be responsible for the failure and the business loss.
6. And lastly if you want a peace of mind, then better pick up a job that is far far better than starting a small business at present in Qatar. Save some money and invest in the shares on long term basis like vodafone.