Does anyone have a success story of running a business in the DR. especially with a Dominican Partner. I like everyone else was seeking the 'Dream in the Sun'. Got into the Guard Dog Business with a Dominican VET partner...the usual..Minus 20 dogs later, some of which either.. ran away, died, were kidnapped, dissappeared, etc. etc.... Winner..not me!!!!!!!!!!!.....Any such experiences...M.
- Thread starter mikeyone
- Start date
Broken Dreams Anyone.
I am happy with the 2nd small business I am running now, but of course my number one golden rule is : "Never ever partner with a dominican !!!"
I love and respect dominicans, and I want to continue feeling like this, That is precisely the reason I don't want to work with them !
I love and respect dominicans, and I want to continue feeling like this, That is precisely the reason I don't want to work with them !
My Experience
Some time back when I posted my plans for a start-up business in SD I was told don't come back for a minimun of 3 years (one expert said 5 years) with your success story because you are going to fail. So as not to disappoint all of those nay-sayers I am NOT going to tell them how great I'm doing.
Robert's post says it all which is no different than other partnership one could make----there, here, anywhere.
JOHN
P.S. meant to say advised by posters on this board and the "expert" a member of this board. Armchair advisers with a lot of negative advise. (IMHO)
Some time back when I posted my plans for a start-up business in SD I was told don't come back for a minimun of 3 years (one expert said 5 years) with your success story because you are going to fail. So as not to disappoint all of those nay-sayers I am NOT going to tell them how great I'm doing.
Robert's post says it all which is no different than other partnership one could make----there, here, anywhere.
JOHN
P.S. meant to say advised by posters on this board and the "expert" a member of this board. Armchair advisers with a lot of negative advise. (IMHO)
Beware , beware
I have had my ups and downs in the DR...But surprisingly, I have had a good experience so far with not one, but two Dominicans partners....
I would like to think that doing business in the DR is like doing business any where else, it isn?t easy! At the end of day, we are the one responsible for our failures. One of the Dominicans mentioned above, I am still doing business with, he as had numerous opportunities to cheat me, and believe me, I have put him to the test. Turns out he is quite honest and a family man. Don?t get me wrong, this guy is no saint, but he respects me and his grateful for the opportunity that I have gave him to earn a descent leaving and provide for his kids.
Beware of the comments you will receive on this board, some of those guys will scare the sh*** out of you! But this is a good test for you to find out how determine you really are! Every now and them you will get some encouragements.
Don't let there ignorance stop you, persevere, work hard and you will succeed.
Good luck with your dreams...
I have had my ups and downs in the DR...But surprisingly, I have had a good experience so far with not one, but two Dominicans partners....
I would like to think that doing business in the DR is like doing business any where else, it isn?t easy! At the end of day, we are the one responsible for our failures. One of the Dominicans mentioned above, I am still doing business with, he as had numerous opportunities to cheat me, and believe me, I have put him to the test. Turns out he is quite honest and a family man. Don?t get me wrong, this guy is no saint, but he respects me and his grateful for the opportunity that I have gave him to earn a descent leaving and provide for his kids.
Beware of the comments you will receive on this board, some of those guys will scare the sh*** out of you! But this is a good test for you to find out how determine you really are! Every now and them you will get some encouragements.
Don't let there ignorance stop you, persevere, work hard and you will succeed.
Good luck with your dreams...
Dreaming
Of course you know by now that "dreaming" is for the nightime or "dreaming of a plan" All other aspects of business is "management" not dreaming. I don't think that Dominicans per se should be painted with such a broard brush as shame on you if you are not manageing but dreaming of the good life in the sun.
Another poster to this tread has already said that any advise given here will be not to deal with dominicans as partners.I disagree for all the same reasons that you should not deal with partners of ANY kind unless you have done your due diligence.And, even then things can go sour ,but in order to do business one must move forward with their "dreams" and make sure it happens before you have a "nightmare"
JOHN
mikeyone said:
Of course you know by now that "dreaming" is for the nightime or "dreaming of a plan" All other aspects of business is "management" not dreaming. I don't think that Dominicans per se should be painted with such a broard brush as shame on you if you are not manageing but dreaming of the good life in the sun.
Another poster to this tread has already said that any advise given here will be not to deal with dominicans as partners.I disagree for all the same reasons that you should not deal with partners of ANY kind unless you have done your due diligence.And, even then things can go sour ,but in order to do business one must move forward with their "dreams" and make sure it happens before you have a "nightmare"
JOHN
My first Dominican business venture went great at first, but was horribly doomed form the beginning and none of us knew it.
There were 4 partners involved,
1) Myself, (the technical talent)
2) my brother, the instigator basically the one who talked us all into it,
3) a friend from work who was wonderfully hooked up with a local powerful family by being married into it (and about to be divorced from it and totally disowned in a not in the least bit amicable breakup)
4) and a hassidic rabbi from Cypress who put up a little more than half of the cash and was under almost complete control of a local Dominican policeman who was the one who originally brought him into the deal.
Things started off with a bang, we opened up an internet cafe/bar in front of a huge university (UTESA) that was the best anyone in the country had ever seen. It quickly became the most popular internet place in the country and is still something of a local legend among internet cafe's. (though it has been closed for over 2 years) We went all out to make the best possible place, we were the first to offer our customers:
*17" monitors (not standard at the time)
*current generation computers (only 800mhz at the time, but at least twice as fast as any competitor)
*CD burners (many didn't even know what these were then)
*Voip headsets with mics
*webcams
*Completely inrestricted use of the machines for the customers (we had to restore from backup image sometimes several times a day, but it still worked well)
Aside from all of this we had excellent atmosphere, adequate air conditioning, a 32" TV with a playstation and a dreamcast customers could kill time on in our lounge area (but mostly was used to catch the latest sports match)
We served an average of 200 customers per day, invoiced 100+ hours of internet time daily and ordered over 25 cases of Presidente per week.
The business itself was great and could have continued to be so but fighting between partners brought it to its knees and it died a slow, shameful death after one good year, one break-even (almost) year and one horrible losing year of deterioration.
There are alot of other factors besides the partnership going sour that actually caused the decline and fall, but all of them could have been managed and overcome if as partners we had been working as a team with the goal in mind rather than bitchng at each other. We had the talent and the brains to stay on top of the situation, but we used them to constantly torpedo each other instead, and since there were 4 of us I do not think there is any way it could have been avoided.
Quite possibly any 1 of us could have had a successful business, maybe even any two, but what none of us had at the time was the balls to go it alone, we all wanted to lean on each other to split the anxiety 4 ways so to speak, and what it came out to in the end was "no guts, no glory".
Partners = Bad. (usually)
There were 4 partners involved,
1) Myself, (the technical talent)
2) my brother, the instigator basically the one who talked us all into it,
3) a friend from work who was wonderfully hooked up with a local powerful family by being married into it (and about to be divorced from it and totally disowned in a not in the least bit amicable breakup)
4) and a hassidic rabbi from Cypress who put up a little more than half of the cash and was under almost complete control of a local Dominican policeman who was the one who originally brought him into the deal.
Things started off with a bang, we opened up an internet cafe/bar in front of a huge university (UTESA) that was the best anyone in the country had ever seen. It quickly became the most popular internet place in the country and is still something of a local legend among internet cafe's. (though it has been closed for over 2 years) We went all out to make the best possible place, we were the first to offer our customers:
*17" monitors (not standard at the time)
*current generation computers (only 800mhz at the time, but at least twice as fast as any competitor)
*CD burners (many didn't even know what these were then)
*Voip headsets with mics
*webcams
*Completely inrestricted use of the machines for the customers (we had to restore from backup image sometimes several times a day, but it still worked well)
Aside from all of this we had excellent atmosphere, adequate air conditioning, a 32" TV with a playstation and a dreamcast customers could kill time on in our lounge area (but mostly was used to catch the latest sports match)
We served an average of 200 customers per day, invoiced 100+ hours of internet time daily and ordered over 25 cases of Presidente per week.
The business itself was great and could have continued to be so but fighting between partners brought it to its knees and it died a slow, shameful death after one good year, one break-even (almost) year and one horrible losing year of deterioration.
There are alot of other factors besides the partnership going sour that actually caused the decline and fall, but all of them could have been managed and overcome if as partners we had been working as a team with the goal in mind rather than bitchng at each other. We had the talent and the brains to stay on top of the situation, but we used them to constantly torpedo each other instead, and since there were 4 of us I do not think there is any way it could have been avoided.
Quite possibly any 1 of us could have had a successful business, maybe even any two, but what none of us had at the time was the balls to go it alone, we all wanted to lean on each other to split the anxiety 4 ways so to speak, and what it came out to in the end was "no guts, no glory".
Partners = Bad. (usually)
One business successful going on #2
Just outside of Sosua Abajo there is a furniture and electronics store that is owned and run by a Dominican and myself. Several years after starting we are still growing! Since we started we have relocated, bought the building, expanded our inventory into electronics with a warehouse planned to be added next to existing shop soon.
Secured loans is next on our agenda, purchasing real estate is later and it is only looking up from here on out.
I am not saying it is easy and I am not saying it will happen for everyone. However I have known my Dominican business partner for over 11 years. On the other hand I have been involved with others (Meaning non Dominicans) and I must say that the outcome fell far short then of what had been projected. For anyone to come down here or anywhere else for that matter without establishing a trusting relationship with a Dominican or anyone else you are destined to fail.
When we launched our business we both understood the risks and we both understood what it takes to make the business work. Many people that go into business do not work out a good contract. Know what is expected from each other, who is the financer and who is the manager. Understand what each other's responsibilities are and make certain it is in the contract. Sacrifice, meaning you cannot start stripping the business of its capital and stuffing your pockets. You do this you are doomed!
I've seen so many gringo suckers come down here, set up a business with someone (ex pat/other gringo/Dominican) that they just met and then walk away. Not a clue as to what is going on and what is happening with their investment. You have to know what is going on every minute of the day and you must know your business partner as you know yourself!
I know, in the begining that sucker was me. I am not one to judge others without first using myself as an example.
Just outside of Sosua Abajo there is a furniture and electronics store that is owned and run by a Dominican and myself. Several years after starting we are still growing! Since we started we have relocated, bought the building, expanded our inventory into electronics with a warehouse planned to be added next to existing shop soon.
Secured loans is next on our agenda, purchasing real estate is later and it is only looking up from here on out.
I am not saying it is easy and I am not saying it will happen for everyone. However I have known my Dominican business partner for over 11 years. On the other hand I have been involved with others (Meaning non Dominicans) and I must say that the outcome fell far short then of what had been projected. For anyone to come down here or anywhere else for that matter without establishing a trusting relationship with a Dominican or anyone else you are destined to fail.
When we launched our business we both understood the risks and we both understood what it takes to make the business work. Many people that go into business do not work out a good contract. Know what is expected from each other, who is the financer and who is the manager. Understand what each other's responsibilities are and make certain it is in the contract. Sacrifice, meaning you cannot start stripping the business of its capital and stuffing your pockets. You do this you are doomed!
I've seen so many gringo suckers come down here, set up a business with someone (ex pat/other gringo/Dominican) that they just met and then walk away. Not a clue as to what is going on and what is happening with their investment. You have to know what is going on every minute of the day and you must know your business partner as you know yourself!
I know, in the begining that sucker was me. I am not one to judge others without first using myself as an example.
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Sad story...
This is a sad story and a real shame. Success was all there for you all. However that nasty monster reared it's ugly head GREED and the monster brought his girlfriend along with him MISTRUST.
Sorry to hear about this but please don't stop. Go out and get it right this time. Remember these four letters K.I.S.S. means "KEEP IT SIMPLE STUPID"
Good luck next time!
MrMike said:
This is a sad story and a real shame. Success was all there for you all. However that nasty monster reared it's ugly head GREED and the monster brought his girlfriend along with him MISTRUST.
Sorry to hear about this but please don't stop. Go out and get it right this time. Remember these four letters K.I.S.S. means "KEEP IT SIMPLE STUPID"
Good luck next time!
Estafa......
For those of you that do not know what this is can PM me. it is very very common in the Dominican Republic.
For those of you that do not know what this is can PM me. it is very very common in the Dominican Republic.
All is not sunshine!
I just went though this thread and thought I would stick in my 2 pesos!
Being in a business with partners is difficult to begin with. Having four to me would seem impossible! and family? I was in a family business for thirty years, and every day was a different problem. I spent more time with my partner than I spent with my wife and kids! Don't forget, four parners is really eight! Someone brought out the point that each thinks the other is not doing his share, include the wives. They are ususally the biggest instigators! Everone spends money differently, one b uys a car, the other takes a vacation......b ut each questions on whose money?
One strong point, is that if you want a business down here, you had better be here to run it. But that's true in any business......whether here or in the states. It reminds me of the old story where a hardware store owner hires young kid to work. First week the kid takes in $20 and puts the whole thing in the register.......he thinks, good he's honest! Few weeks later, the kid takes in $20 and this time puts $10 in his pocket, and ten in the drawer....Atleast my expenses and costs are covered! Few more weeks go by, this time he sees the kid take in $20 and put the whole thing in his pocket........"What's the matter? Aren't we partners anymore?"
Next I have to ask, what is your main reason for opening a business in the DR? So you can have an easier life, play more golf, take more tiime off? Go to the beach? Can't have a successful business if you don't put the time in....ask those here that have successful businesses and ask them how much time they put in. It's just different geography.
I have three businesses here, a primary business ( mortgages) that depends on the US, not here. Get paid in from the US, not here. (my partner in that business is in the US) A second that everything is place once CAFTA-DR goes through that will depend on Dominicans and their income. Either way, I am enjoying the sun, but still put in the hours. Those that know me will tell you!
JRR
I just went though this thread and thought I would stick in my 2 pesos!
Being in a business with partners is difficult to begin with. Having four to me would seem impossible! and family? I was in a family business for thirty years, and every day was a different problem. I spent more time with my partner than I spent with my wife and kids! Don't forget, four parners is really eight! Someone brought out the point that each thinks the other is not doing his share, include the wives. They are ususally the biggest instigators! Everone spends money differently, one b uys a car, the other takes a vacation......b ut each questions on whose money?
One strong point, is that if you want a business down here, you had better be here to run it. But that's true in any business......whether here or in the states. It reminds me of the old story where a hardware store owner hires young kid to work. First week the kid takes in $20 and puts the whole thing in the register.......he thinks, good he's honest! Few weeks later, the kid takes in $20 and this time puts $10 in his pocket, and ten in the drawer....Atleast my expenses and costs are covered! Few more weeks go by, this time he sees the kid take in $20 and put the whole thing in his pocket........"What's the matter? Aren't we partners anymore?"
Next I have to ask, what is your main reason for opening a business in the DR? So you can have an easier life, play more golf, take more tiime off? Go to the beach? Can't have a successful business if you don't put the time in....ask those here that have successful businesses and ask them how much time they put in. It's just different geography.
I have three businesses here, a primary business ( mortgages) that depends on the US, not here. Get paid in from the US, not here. (my partner in that business is in the US) A second that everything is place once CAFTA-DR goes through that will depend on Dominicans and their income. Either way, I am enjoying the sun, but still put in the hours. Those that know me will tell you!
JRR
Dominican Scotty, loved reading your post, full of solid info and honest evaluation. I particularly liked what you had to say about staying on top of things, knowing what is going on every moment of the day. It seems to me the essence of good management but I bet that is where a lot of people trip up. Plus everything you said in the preceding paragraph about everyone clearly understanding one's role and having that in the contract. Lots of very sound advice. It jives with what JRR is saying above: "it's just different geography."
I am no business man really, just a freelancer (so in a sense I am in fact a businessman, I run my business which is "me" but that is a simpler thing than overseeing a business like the one you describe), but I am putting together the plan for my first venture down here, so I am grateful when I get to read these kinds of posts. I may PM you some day seeking advice!
Mr Mike your story sounds very similar to one I am privy to here in the Colonial zone regarding a bar that is now very much in fashion: but the falling out between the partners occurred before the bar itself launched so when the dust settled there was only one person left, who assumed control of the entire venture, and though it was a struggle, everything turned out just great. In fact, it is all working out much along the same lines as Dominican Scotty is describing: expansion, purchase of the building, etc.
One thing about having a dominican partner, is that Dominicans know their culture, know their people, know what works and what doesnt, and know how to negotiate all the little cultural twists and turns. So if they are honest and the two of you work well together, it seems to be the makings of an ideal partnership. And they can certainly benefit from new ideas you bring from outside.
PS: I still want to hear more about the dogs and the vet. That has got to be a good story.
I am no business man really, just a freelancer (so in a sense I am in fact a businessman, I run my business which is "me" but that is a simpler thing than overseeing a business like the one you describe), but I am putting together the plan for my first venture down here, so I am grateful when I get to read these kinds of posts. I may PM you some day seeking advice!
Mr Mike your story sounds very similar to one I am privy to here in the Colonial zone regarding a bar that is now very much in fashion: but the falling out between the partners occurred before the bar itself launched so when the dust settled there was only one person left, who assumed control of the entire venture, and though it was a struggle, everything turned out just great. In fact, it is all working out much along the same lines as Dominican Scotty is describing: expansion, purchase of the building, etc.
One thing about having a dominican partner, is that Dominicans know their culture, know their people, know what works and what doesnt, and know how to negotiate all the little cultural twists and turns. So if they are honest and the two of you work well together, it seems to be the makings of an ideal partnership. And they can certainly benefit from new ideas you bring from outside.
PS: I still want to hear more about the dogs and the vet. That has got to be a good story.
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Excellent....
Mortgages with the money and partner in the US. Very good!
As for myself? I am retiring and simply want something to keep my mind going while here in the DR. I buy and sell real estate "flip" houses in the US with my brother (not his wife, it is in the contract). Sure, sure, his wife might interfere on his end but it doesn't mean a daggone thing to me on my end. I am the financer and he runs the office. It's in the contract. I know the business he expedites it! It's in the contract. If I do not make money, the business closes PERIOD! It's in the contract.
He is my brother and I love him dearly. He is a highly intelligent man and I also trust him. However, to save our brother to brother relationship from a business failure every single detail from who does what, to who pays for what is written out in the contract. As silly as it may seem, every now and then my brother and I will go out for a cup of coffee. We bring our briefcases and in those briefcases are copies of our contract. We are not afraid of our agreements and we are not ashamed to bring them out and go over them again and again and again.
People that are either afraid of a contract by saying "ahhhhhhhh we are friends we don't need to do that" or ashamed to even speak about one are the ones you MUST stay away from. Your interests are not being considered in the least! Contracts are not bad things, they are how this world does good business and keeps friendships as frienships and business as business!!!
JRR said:
Mortgages with the money and partner in the US. Very good!
As for myself? I am retiring and simply want something to keep my mind going while here in the DR. I buy and sell real estate "flip" houses in the US with my brother (not his wife, it is in the contract). Sure, sure, his wife might interfere on his end but it doesn't mean a daggone thing to me on my end. I am the financer and he runs the office. It's in the contract. I know the business he expedites it! It's in the contract. If I do not make money, the business closes PERIOD! It's in the contract.
He is my brother and I love him dearly. He is a highly intelligent man and I also trust him. However, to save our brother to brother relationship from a business failure every single detail from who does what, to who pays for what is written out in the contract. As silly as it may seem, every now and then my brother and I will go out for a cup of coffee. We bring our briefcases and in those briefcases are copies of our contract. We are not afraid of our agreements and we are not ashamed to bring them out and go over them again and again and again.
People that are either afraid of a contract by saying "ahhhhhhhh we are friends we don't need to do that" or ashamed to even speak about one are the ones you MUST stay away from. Your interests are not being considered in the least! Contracts are not bad things, they are how this world does good business and keeps friendships as frienships and business as business!!!
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You are right on.....
Excellent post my friend, excellent indeed!
To fail to understand is not a reason to mistrust a Dominican. Ex pats and gringos alike have tons of horror stories to share with everyone. They create a fantastic script and a great list of characters. The demons, the monsters, the bad guys, the good guys and the victims. One thing that they did not claim is that it is very much fiction. Why is it that the Dominican is always the bad guy, the demon, the monster and themself is the good guy, the victim???
Failure to understand a culture, it's people, it's laws and how they negotiate business is NOT a reason to curse them. Learn the culture, the laws and how Dominicans do business. Then and only then will you understand which Dominican to do business with and which one to NOT do business with. Keep in mind that numerous Ex pats and gringos are the villians here and they are preying un unknowing Ex pats and gringos, (I edited this) and sometimes Dominicans. If you are dumb enough to offer a Dominican or anyone else for that matter a business partnership where he doesn't have to do anything but show up and you do not show up at all??? What would you do if that happened to you? The answer is NO DAGGONE DIFFERENT!!!
You decided to go to a foreign country? Then learn the culture (their culture), the way its people do things and their laws. Something that you will not learn in the Dominican Republic is not all the crooks are brown skinned, Spanish speaking Dominicans. They are the white skinned, smooth talking people that look just like yourself. If you cannot or will not understand these basic comon sense rules then go back to the resort, the beach or the damn airplane and leave!
macocael said:
Excellent post my friend, excellent indeed!
To fail to understand is not a reason to mistrust a Dominican. Ex pats and gringos alike have tons of horror stories to share with everyone. They create a fantastic script and a great list of characters. The demons, the monsters, the bad guys, the good guys and the victims. One thing that they did not claim is that it is very much fiction. Why is it that the Dominican is always the bad guy, the demon, the monster and themself is the good guy, the victim???
Failure to understand a culture, it's people, it's laws and how they negotiate business is NOT a reason to curse them. Learn the culture, the laws and how Dominicans do business. Then and only then will you understand which Dominican to do business with and which one to NOT do business with. Keep in mind that numerous Ex pats and gringos are the villians here and they are preying un unknowing Ex pats and gringos, (I edited this) and sometimes Dominicans. If you are dumb enough to offer a Dominican or anyone else for that matter a business partnership where he doesn't have to do anything but show up and you do not show up at all??? What would you do if that happened to you? The answer is NO DAGGONE DIFFERENT!!!
You decided to go to a foreign country? Then learn the culture (their culture), the way its people do things and their laws. Something that you will not learn in the Dominican Republic is not all the crooks are brown skinned, Spanish speaking Dominicans. They are the white skinned, smooth talking people that look just like yourself. If you cannot or will not understand these basic comon sense rules then go back to the resort, the beach or the damn airplane and leave!
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The contract thing you stress, Dominican Scotty is advice I need to hear, since in fact my MO as a photog is to go on verbal agreements (but that is not business: that is just arranging things on the ground so I can shoot). Pix are licensed strictly according to contract. But arranging the partner relation just as strictly by contract -- for me that is salutary advice. Basically the venture i am beginning is still verbal (which is OK, nothing concrete has been done yet), but obviously we will have to nail things down. I need to hear this, keep it coming!.
And JRR, like D Scotty here I am also impressed: mortgages with money in the US. I am not sure just what all that means when it comes down to the nitty gritty, but I would love to know more, and may just end up one of your clients some day!
And JRR, like D Scotty here I am also impressed: mortgages with money in the US. I am not sure just what all that means when it comes down to the nitty gritty, but I would love to know more, and may just end up one of your clients some day!
If it is not in the contract it isn't....
"The contract". Signed by all parties in a "non biased" attorney's office meaning not his and not yours and notarized!
macocael said:
"The contract". Signed by all parties in a "non biased" attorney's office meaning not his and not yours and notarized!