Should I get out before I start?

[redbelt]

I have built (but not 'launched') an e-commerce store in the sports marketplace, the idea behind which was to go into partnership with a local company and person I know to utilise their stock and fulfilment. We've had positive discussions since last year about this and wanted to get things running quickly. Since I already work full time I'm not able to dedicate time to the shipping and stocking side of things, and they don't have the online experience to build a store to the quality needed, with SEO, PPC, CRO all sorted to the level I can do it.

However, now I've got to the point that the ltd company needs to be setup, they just seem to be very distant and hesitant to the whole thing. E-mails and face to face conversations are positive but the delay in getting information to do the required is painful, and I'm wondering if it is a sign of things to come if it's this bad before it starts?

The thing is, I really think the partnership can work (mind you, who on here doesn't think their idea will work!), and I don't want to let it go when I've got to this point, but without hassling and being around I'm now concerned about the long term viability.

Any tips on how this can be brought round or if I just need to call it quits?

 

[Moneyman]

Why not just ask them if you can do all the online side if you get a discount on all products. That way they dont have to do any work or sign anything. getting into a joint venture is too much hassle. they get something for nothing.

 

[Jacob F]

How much time (or money) have you put in to this so far RedBelt? I think only you can answer your own question, you need to evaluate what you can get out of it even if you don't pursue it further (i.e. just passing the site on to them for a fee- no idea if that is possible?). If you have suspicions about a potential partnership before it has even really took off then maybe trust your gut instinct as things never seem to get better just worse with time. I've had bad experiences in business with a "friend" before so I'd be super cautious before doing any joint venture these days.

 

[sla3]

1. Do you know why they have suddenly 'gone cold'? If you are to be partners an open honest and trusting relationship is essential, so maybe you could ask them? "You know, things have gone so well so far, but just recently I've been getting the feeling that you're maybe not as keen to go forward as I am? Is there anything that's troubling you?"

2. I certainly don't think you need to call it quits, certainly not if you have a working solution. Maybe they are just experiencing uncertainty or 'fear of commitment' to operating in a completely new channel. Perhaps, if you identify this as the case, you could call on a trusted third party (business link?) to work with you both to come to a satisfactory conclusion: a bit like a marriage guidance counsellor, but before you've started smashing crockery!

3. Even if you can't quite seal the deal with these folks, is your solution sufficiently generic to be used by other businesses? Have you created something that has value in and of itself, regardless of the willingness of these folks to use it?

Don't give up: the way you wrote your post says to me you have justifiable confidence in your solution and the business. Good Luck.

 

[redbelt]

Thanks everyone for the messages, particularly sla3 - I like your point 1 and will approach this weekend face to face with such a question, to see what/if there is a sticking point that seems to be holding things back.

I haven't put a significant amount of money into this yet, but the potential rewards for us in the long term can be good. In the short term they will be smaller but its a low risk addition to both of our lives.

If things don't come out of it how I expected the store will work in other areas, but this is just one I know well so was more chance of making it the best type of store available in the UK (Yes, really!).

Would still be interested if anyone else experienced similar issues whilst trying to start up Joint Ventures or anything similar like this.

 

[TotallySport]

Is the other company also a retailer? If they are, the formation of a limited company may have woken them up to not needing you.

Like anything building an ecommerce presence is a steep learning curve but its not rocket science.

Depending on their range they hold all the cards, as they have the stock and connections and you have an ecommerce site they could replicate with some work.

If they are a supplier, they would be mad to team up with someone else as if other retailers found out, there would be up roar, and their core business could suffer as a result.

 

[jamhot]

doesn't sound like a good start to me. You don't want to be left lumbered with all the work. I have been in situations like this and some people find it easy to exploit other. Beware!

 

[internetspaceships]

As Smo and others said. I'd actually express yourself face to face with them. Until you know it's a misunderstanding it's not one!