Questions about small business

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Questions about small business


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Old 24th June 2011, 06:31 PM
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Default Questions about small business

Hello.. forgive my naivness.. I am asking this on behalf of a friend...

Him and his neighbour are going to set up a small business... both are Mexicans. The neighbour has knowledge of business having set up small business before. Both are putting in $500 (US).... for a small truck and then around a further $100 (US) for other things.

My friend want to draft a contract to protect the money and his interests etc... cos of the money he putting in... is ALL he has.

He has no reason to not trust the neighbour but he feels at a disadvantage not having the business knowledge the neighbour has.

I am sure there is much much more to business etc etc.. but from listening to whats going on etc.. the nieghbour seems to know what he is talking about and a hand written/drafted contract seems to be errrrr ok and will protect him and his interests.

My questions are as follows;

Will my freind be ok with a hand written contract?

Should he get it signed and witnessed by other people?

Is there anything or any advice you kind people could offer him so as to protect his interests and the little bit of $ he is putting in to this??

As I said forgive me and my freinds lack of knowledge...

Thanks

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Old 24th June 2011, 10:19 PM
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Disclaimer: I am no lawyer and not very knowledgeable about Mexican law.

If it were me, I would get a lawyer to read it and advise me. And I would want a typed document signed, dated, and witnessed. It might not be cost effective to get a lawyer for the small amount of money involved. Doesn't he know someone whose cousin is a lawyer that could read the agreement for him? In English, it is easy to find draft agreements that can be used as a format. I don't know if the same exists in Spanish.

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Old 25th June 2011, 04:40 PM
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He is Spanish and so the language etc is not a problem... he is happy with what the guy has put in "HIS" contract but he wants his own contract...

I know the law is complex etc I wonder if his own handwritten thing if typed and worded well and witnessed - would it hold any weight over here in Mexico?

Thanks :0)

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Old 25th June 2011, 10:56 PM
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If they are starting a business, they should use a lawyer & must have an accountant. If, at this point, he has doubts, It might be wise to forget the idea.

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Old 25th June 2011, 11:22 PM
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For a 6000 peso investment a lawyer or accountant are not what he can afford, him or the other guy. They should go to the local city hall and ask for help. There are people there or in the county seat that can help them.
Like RV said, if the 6000 peso investment is a problem and his total savings AND he feels uneasy about it...he should just back out of the deal. Gut feelings are usually right, proven by science I think.

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Old 26th June 2011, 01:48 AM
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Quote:
Originally Posted by tepetapan View Post
For a 6000 peso investment a lawyer or accountant are not what he can afford, him or the other guy. They should go to the local city hall and ask for help. There are people there or in the county seat that can help them.
Like RV said, if the 6000 peso investment is a problem and his total savings AND he feels uneasy about it...he should just back out of the deal. Gut feelings are usually right, proven by science I think.
I agree, intuition has saved me every time.

Can the guy not go into business for himself, by himself. Or start smaller selling something else and working from there...

those are my thoughts - even with a contract, there are no guarantees in life - especially with a business in Mexico.

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Old 26th June 2011, 11:00 PM
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Yes I hear what you are all saying... and my friend is all for the idea... IT is me who is wary about it and suggesting ways to safeguard his money etc. The thing is at the same time - my friend is having problems finding work... despite walking the streets and submitting application after application.... So although I am wary and dont want his $500 to be a waste... it may well be his only chance to make a living...

So even though I am wary... I feel like why the hell not he might not get a job and it could work out for him and give him an income...

So for me... I am a little torn. My friend is all for the idea...

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Old 28th June 2011, 05:50 AM
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Quote:
Originally Posted by edenmayne View Post
Yes I hear what you are all saying... and my friend is all for the idea... IT is me who is wary about it and suggesting ways to safeguard his money etc. The thing is at the same time - my friend is having problems finding work... despite walking the streets and submitting application after application.... So although I am wary and dont want his $500 to be a waste... it may well be his only chance to make a living...

So even though I am wary... I feel like why the hell not he might not get a job and it could work out for him and give him an income...

So for me... I am a little torn. My friend is all for the idea...
If you dont mind me asking... what city is your friend in.

I ask that because I guess every area of Mexico has different opportunity these days. His trade or technical or background skills are often irrelevent if one has a sense of what they want and are determined to get it... $500 is a lot for a Mexican who doesnt have $500 to start with. Maybe he can invest $100 into something and turn it into $300 and reinvest and so on.

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