Key insights on building business partnerships

But behind these successes are not just the sweat and tears of myself and Pichet Vipavasuphakorn, the founding partners of AP, or the company’s employees, it was also sheer luck that some people chose to stay by our side during difficult times. They are loyal business partners who have grown with us during good times, and bad.
Through their drive and support, these partners have played an important role in helping AP grow by leaps and bounds to become a leader in the real-estate industry.
Many people see building a business partnership as a simple process. But the hard part is how to make the relationship last. First, you have to appreciate the goodwill of your allies and partners. Never make them feel that they should feel honoured at being handed a partnership.
Many people don’t know that although Pichet and I founded AP, the truth is that we did not know each other before we embarked on our partnership. At first, I was asked if I was at all concerned that problems might arise by having a stranger for a partner.
But the fact that Pichet and I did not know each other before we decided on working together has proved to be good rather than bad.
One word gets lost when you do business with friends. That word is “considerate”. Friends tend to talk straight, and when friends become business partners, they don’t hold back when they don’t see eye to eye. Thus the first insight on being a partner in business is to be considerate. It does not matter if the business relationship is between friends or strangers.
Another insight that my founding business partner and I have upheld to maintain our good long-term alliance throughout the past 25 years is that both parties are OK with getting slightly less than their fair share. To elaborate, it means friendships and relationships can only last if both parties accept some disadvantage.
For Pichet and myself, a little disadvantage is fine, because we are satisfied with what we have. For example, Pichet may be at a disadvantage at certain instances but I myself am also at a disadvantage. But neither of us cares. What matters is that we are OK with what we get in the end.
For some, being taken advantage of is unthinkable because they are completely selfish. To illustrate this, one partner may expend labour by tending to the shop every day while the other invests money and gets people to dine at the shop. But when it’s time to divide the benefits, the one who works every day wants a bigger chunk, and this angers the other partner, who also wants a bigger share.
This can only spell doom for the business. My advice to those who are thinking of operating a start-up is that a little disadvantage is fair. 
A partnership cannot last if everyone seeks only fairness. Believe me, it won’t last long.
Another must is to define clearly the role of each partner. You should take time to identify the strengths of the people involved and their working style. After operating the business for a while, you will discover the role that suits the work style of each partner.
Pichet, for example, is a risk taker. He doesn’t hold back on his investment decisions. Whatever he does, he thinks of Step 1, Step 2, and then he goes all out for it. He is good at identifying prime locations. I have to give him credit for that. As for me, I’m the academic type. I love systems and processes. I think a lot before I make a decision. I love art and design. So I’m in charge of planning work processes and building efficient management systems. And I also built AP Academy to develop the potential of our people. For this Pichet has to give me credit, and he has. These are my thoughts on making a partnership last.
Choosing a partner in business is like looking for a brother-in-arms. Bear in mind that today’s consumers have a more dynamic lifestyle than past generations. They embrace change and change fast. At AP, we try to differentiate properties under our development umbrella. Our brothers-in-arms or partners have to share the same passion to create ideas.
Take our decision to enter a joint venture to develop condominiums in Thailand with Mitsubishi Estate Group, the No 1 real-estate company of Japan. Together, we work to elevate Thailand’s real-estate sector to international standards. What comes with the partnership is know-how in the process of real-estate development – every step of the way. We also learn about space design, that is, to make excellent use of space. We have to admit that the Japanese are the real experts in efficient space utilisation.
In the past, our product-design team worked with designers at Mitsubishi Jisho Sekkei, an architectural firm under the Mitsubishi Estate Group, to blend Japanese design know-how with Thai lifestyles through new design innovations that optimise functional interior areas at AP condominium projects. Now, they are working with AP Academy in the development of an AP Checklist, which we consider an important tool to control the quality of construction at every step of AP property-development process.
That Mitsubishi Estate Group is willing to pass on all its knowledge to the AP team is a clear sign of sincerity of a business partner.
I am confident that we can bring our partnership to greater heights that will allow the Thai people to realise their dream to own a place they can call home.