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Joint Venture with a friend of mine. - Any risks I haven't thought about?



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Joint Venture with a friend of mine. - Any risks I haven't thought about?

Joint Venture with a friend of mine. - Any risks I haven


Hello everyone,
If you've read previous posts of mine, you might be aware of a few things by now..

For instance, that one of my friends more or less scammed me, (although it was due to my own stupidity), and I haven't heard from him since.

You might also be aware of the fact that I've always been interested in investing money in small/medium sized projects of all sorts.. - And I've been doing that with and without success. Also due to my own stupidity.

That being said, with all the things I've experienced, I'm now standing with one foot in the door for something I truly believe could be super lucrative. - The thing is, that one of my friends contacted me, because he knew I was a freelancer.. - And here's where the "tricky parts" begin.

What he basically wants, is to do a 50/50 split.. For his idea. - I need to invest some money and we'll be using my sources & my freelancing skills & experience to launch this thing. - If and when we've launched, this shouldn't take more than just a few hours per week to maintain. - The work will also be a 50/50 split between the two of us.

However, I can't go into any major details, but he want to split all the incoming money, and not just the profits. - And I'm positive of the fact that he'll just use his cash for whatever things he might find interesting, so he'll literally spend every single cent.. No taxes, no nothing.

But where does that leave me? - I've been thinking of basically hundreds of things already, but I'd love to hear thoughts and ideas from others, which is the reason I'm here.

What would you do? - Would you take the leap or stay away?


Cheers,
hitmeasap

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Lynne
I would stay away and my reasons are:
  • You are the one investing money
  • You are the one with the skills, the contacts and the experience
  • You will re-invest your money into your business while you seem to believe he won't, meaning you will continue to build the business while he does nothing.

Seriously if it is a case of wanting someone else to do some work, hire someone to do all the work he would have done and pay them an hourly rate if you want to start a business, don't go in with a friend.

Just my instincts based on what you have said here. I don't trust easily and many a friendship has been trashed this way. He has an idea... and that is all.... but you are going to put in everything else. Let him pull off his ideas on his own, you have had plenty of your own that you can work on.



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hitmeasap
Thank you Lynne, I appreciate it. I do understand that I would be the one to invest more than him, as I would have to invest both time, money, skills, contacts and experience.. But I love the idea.. That's why it's tricky. - I've been in the same situation a few times before too, and I always end up thinking about "what if". - I often have a hard time moving on so to speak.



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Corzhens
Don’t fret because being scammed by a friend is not a rare case. My husband was also scammed by his high school pal. To think that they have been friends for a very long time, we didn’t expect that he will do that to us. Upon that friend’s suggestion, we put up a partnership business. And when the business was doing great, that scammer friend had put up a competing company and was stealing our major customers. That was a neat lesson for us not to be over trusting with a person.



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