Major life decision...PPOT Brain Trust, opinions and advice

[SlowToady]

I got an interesting phone call the other day, and haven't really been able to put it out of my mind. It involves major life changes, and has the (quite likely) potential to be quite profitable. Without getting in to too many specifics, let me say.....

The father of a friend of my owns a business in a (slowly...) developing 3rd world country that is doing quite well (think cash flow) due to it being a large tourist attraction, and a sort of haven for locals. He also owns large pieces of desirable real estate in what many would consider to be "paradise." I've known the family for a pretty good amount of time, and his son and I are very close. My friend and I used to talk all the time about "taking over the family business" when we got older, with much encouragement from his father. Fast forward to the phone call I got. Dad's father is looking to retire, and the day to day stress of running (multiple) businesses is no longer as attractive as it was --afterall, he's rich, by almost anyones standards, lives in paradise and basically has fulfilled every goal he's had. He's set. He's decided to retire to his property on the island, and wants to keep the businesses in the family; he offered the restaurant, house, and other business to my friend (the son). All he has to do is go down there and run things, with dad showing him the ropes. Now comes my phone call. Friend calls me, says "our time" has come, and tells me about the offer...and then says he wants me there with him, as his business partner.

Now, some background on me...I'm young (21), should be graduating from University next year with a degree in Mathematics and Computer Science, and quite ambitious. I've also known since a young age I want to work for myself, and sort of..how would you say...break out of the "average" mold. I don't want to work in a cubicle, making some other guy rich. The thought of being another nameless, faceless, cog in the anonymous American corporate machine is pretty depressing. I want to do something different. I want to carve out a different path. Like I said, I'll be graduating pretty soon, and am either thinking about Law School or grad. school. But now this offer has come along, to move thousands of miles away with a very good friend, hitting the ground running in a profitable business that is more or less limited only by our talent and ambition.

Basically, this is one of those once in a life time chances. A chance to do something different. A chance at living a life that I probably couldn't duplicate in the states, and certainly not at such a young age. A chance at an education that school could never give. Of course, there is also the chance of dismal failure, but then again, there's also the chance I could get hit by a car on my way to class tomorrow.

How do you make decisions like this? Obviously I realize I'd be leaving behind just about everything I know, for something completely foreign (in more ways than one). But then I think about the kids that come here from abroad. Like the father that came here from the same country I'd be going to, at age 16. And, like I said, this is a big opportunity. Hit the ground running in a profitable business? Live in paradise? If I go, I would definitely wait until I finished college, in case Something Bad Happens I'll have something to fall back on.

Any advice PPOT?

[9dreizig]

You're young, worst case you fail and start over again.. or even worse you don't and wonder all your life "what if?".. Go for it!!!

[Hugh R]

At 21 with such an opportunity, I hope I'd have had the sense to go for it. Protect yourself in terms of any cash buy ins, or sweat equity. You don't want to work there for a few years and then get booted out of the son's business without a dime. What does "Business Partner" mean to him or you? You actually own part of it, or you think you'll get something? I've never had a business partner, but look to Rob911 in British Columbia for some sage advice.

[pwd72s]

Originally Posted by 9dreizig

You're young, worst case you fail and start over again.. or even worse you don't and wonder all your life "what if?".. Go for it!!!

I agree...just set yourself a firm bail date if it doesn't work out...

[Wickd89]

Always try to grow by meeting challenges and growing from everything you do. Failure typically is not final, so take a chance.

For some reason, I think you will do this for a while and then move on; then again you might love it and stay with it... Either way, you will grow as a human being.

Biggest issue: What country, what island? Is it politically stable and how stable is the currency and exchange rate. Why have a billion pesos that are worth $50 bucks! ;-)

[artplumber]

Math & Computer Science and you want to run service businesses? Please tell me you have some idea what you're getting into...

[nostatic]

do it. You'll have your degree...you can go to law school or whatever later. Now is the time to take chances and see the world.

[the]

Absolute no brainer. Do it, even if it means deferring finishing school. School will always be there. Really great opportunities, much harder to find.

There is really no downside risk to you. You only have downside risk when you have something to lose. At 21, you have nothing. Which is good! Because there's nothing to lose.

[Hugh R]

Art, if the leverage is right, he could do very well. Me personally, I would do very poorly with a service business (I'm not very people friendly, believe it or not).

[pwd72s]

Ahhh...but to be 21 again? With the opportunity to make good or bad decisions, and the time to learn the difference? Priceless!

[slodave]

Go for it. I wish I could go back in time a bit and take that type of a plunge.

[Evans, Marv]

Another thought is that if you are going to a place that is hungry/needy for a tech type and tech expertise that can bring new efficiency to something in the way of business & services, you might do well there also. You could take on your adventure and start or look around for something on the side that would suit your technical expertise. If the adventure partnership didn't work out, you'd have something to fall back on. If it did, you could choose to keep & build your side business, stay in the partnership, or switch to your own business.
I'd go for it, but after finishing school - like you say.

[gprsh924]

Do it...my friends and I are constantly trying to figure out what the next big thing is or what business we could start that would make us rich....as long as you can protect yourself financially, why not. Even if something goes bad, you just start over. As many of the super wealthy guys that I caddy for tell me, business isn't about the biggest brains, it about the biggest balls.

[stuartj]

Herman Melville lived the first half of his life at sea, on whalers, living with head hunting tribes, being fixed up the cheif's daughter, being ship wrecked, marooned on islands, being kidnapped...read Moby Dick, thats about half of it.

Then he lived the quiet life of an innocuous, inconspicous shipping clerk, and died quietly and almost unknown.

I always wonder how he reconciled those two lives.

Do it. The world is an amazing place.

[RANDY P]

sounds like fun.

The only thing is, remember that right now it sounds like a great deal, but it can also turn into something very ugly and expensive and ultimately you will be the loser out of this deal.

I'd level with your buddy, perhaps agree to work "for" him for a year or so, earning modest pay with a contract of some sort that gives you a share of the business after that time. Maybe start some sort of corporation between you, so if you invest your time and put your trust in his beliefs and promises you won't get hurt. Tell him that you want to make sure it's a working fit between both of you. It will give you a chance to see if you are really cut out for this, and it will establish some good ground rules so no one will get bent out of shape.

You set the ground rules and it will eliminate a lot of confusion earlier.

It's a bad deal to be entered into a partnership with someone you've never worked with before, and it can ruin a friendship and cost you a bunch of headache and money in the process. Anything can change his outlook on your partnership, a new GF, a disagreement him or with his family, so on and so on, any one of those instances can and will cause you to be ousted from your deal.

rjp

[WI wide body]

I would say go for it!

At 21 you have little to lose except maybe some time even if it goes bad.

I was scared *****less the first time I agreed to go to a foreign country and I was quite a bit older than you. To a Midwest guy who could not speak Spanish Madrid might as well have been on the moon and I was expected to direct a local Spanish crew to rebuild a complex manufacturing machine!

It turned out to be a great 6 weeks. I never got rich but over the years it led to a bunch of foreign jobs that are among my priceless memories.

I doubt that you will ever regret giving it a shot even if this particular deal doesn't work out.

Good luck.

[aigel]

Don't listen tot he mid life or late life dudes here that wish they would have taken a chance when they were younger!

You are leaving out some details here:

- How do you become a partner if you are not family?
- Are you expected to bring $?
- Do you speak the language?
- Are you accustomed to any of the culture there?
- Do you have experience in service industry (even waiting tables would count)?
- How stable is this country?
- How would you solve visa, ownership and work permit?
- Is it really paradise, or is it a humid, malaria infested 3rd world place that happens to have a nice beach and palm trees?

Cudos for at least planning on finishing school. However, I think you may be approaching the rest of this naively. You are trying to do too many things at once, IMHO. Business owner, relocation to 3rd world country PLUS starting in an unknown to you industry. I would pick only one of those things at a time.

I have had a reasonably exciting life and career path but I never bit of more than I could chew. I did all of the things you plan, but one step at a time. I.e. how about going to grad school in the country of choice? Then start a business (truly on your own) if you like the place and have gotten accustomed to it ...

Just my two (more conservative) cents,

Cheers, George

[MFAFF]

There is only one answer...

Do it.

Set aside all the 'financial deals'... 'what sort of equity' etc...questions (they are issues to resolve once you know its what you want to do..)

You are 21... its a f##k of a long time 'til you die (hopefully) and having to face yourself in the mirror every morning knowing you were offered a great chance and turned it down.

If is does all go pear shaped you are young enough to have a go in another direction, or start something new...

There is nothing worse than knowing, deep inside that you turned away a real chance. I could not look myself in the eye now had I not, over 12 years ago taken a massive 'life' choice in order to make sure that after years of training and school I was able to run with the 'biggest dogs' on the planet in my field...I had to set aside future which promised a lot of financial ease and security, an 'easy' life in order to do so (plus a super hot lady) in order to do so.. but I know now that had I not done so that knowledge I had turned down the chance, had prefered a 'safe' life than taken a chance...

When you're 40 who do you want to see in the mirror when you shave? A financially poor wise man, with a sack of experience to draw on, safe in the knowledge that you have grasped life to the full? Or a shallow, rich one.. superficially secure but knowing deep down he was unable to face the challenges...?

[livi]

Donīt pass on such an opportunity and life experience. Do it.

[the]

You should, however, get an equity stake in it. Focus carefully on the up front details and agreements. Not saying to kill the deal over it, but don't ignore it, and do the best you can on the front end, esp. re: an equity position.