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turbo5560
03-30-2008, 05:28 PM
for those of you that are in partnerships, how do you work things out as far as pay goes. Lets say one may work a little more then the other at times and vice versa. Do you pay each other hourly or how do you do it?

Turf Commando
03-30-2008, 05:33 PM
I wouldn't like being partnered up maybe I'm greedy but friends can become enemies is business...

lawnpro724
03-30-2008, 05:35 PM
More trouble than there worth IMO.

turbo5560
03-30-2008, 05:36 PM
well it's too late for that. I know there are pro and cons for both.... but besides that those that are partners how do you pay each other?

americanlawn
03-30-2008, 05:40 PM
Ditto with above posts. It's best to keep it in the family if you can. I had a partner years ago, but I was lucky..........he was and still is a good friend, but the partnership lasted just under one year.

M&MLawn
03-30-2008, 05:41 PM
Well did you both go in equal on any and all equipment? In the end, do you both work similar amounts of hours per say month?

nosparkplugs
03-30-2008, 05:44 PM
I hope a partnership works for you; However you must realize someone will always do more work in the other partners opinion, I held more than 65% of the business, and in my "failed" 2 partnership attempts. I always did the most work, and the Partnership paid 50/50 profit/loss. Is your partner fully vested?

Daily Lawn/Landscape
03-30-2008, 05:49 PM
If your already in it together you should have already written those details out and agreed on them together. If you have not, it will be a short lived partnership.

Good Luck with it!

James

turbo5560
03-30-2008, 06:07 PM
this will be the start of our 4th year. last couple years we have both put in about the same amount of time. This year is the first year that we will going into it full time. Last couple years we have both worked other jobs. The problem is this year we don't have a 100% full schedule so i will be doing some part-time work while my partner will be mowing grass because he doesn't have the option of a part-time job that is as flexible as mine. So lets say i work 40 hours a week and he works 50 hour, but the only reason i am working 40 is so that he doesn't have to have another partime job. Make sense?

nosparkplugs
03-30-2008, 06:21 PM
If you keep track of hours worked your 40hrs, will pay less than his 50hrs. If you do it 50/50 salary, your getting the better deal. If this is your 4th year, of partnership something is working. I would be honest up front, My EX partnership sounds like yours, and I was the guy working the extra hours, my partner slowly kept cutting his hours back while getting that 50/50 salary, I finally snapped, gave him the ultimatum: either pull your weight, or your the @#&$!@ out. Good luck sounds like it could go either way.

Grott
03-30-2008, 06:41 PM
Well if you haven't agreed to a plan yet and you are the one working fewer hours it's your chance to put a plan in place that is fair and keeps the business going.

1st Pay a fair hourly wage

2nd Then pay the bills, all of them fuel insurance etc.

3rd Reinvest in the business(agree on advertising, cash reserves etc.)

4th Pay out profits based on hours worked. Figure out the percentage for each.

You will make less this way but you will keep the partnership alive.

Work on filling up the schedule so you both can work full time.

Dean of Green
03-30-2008, 07:21 PM
Communication and equity is key with a good partnership. Talk it out with your partner and the both of you can hammer out the details. The main thing is that you both come to an agreement about pay, profits, reinvesting, etc. All of these things will come up from time to time and it will be beneficial to have a good plan in writing that deals with such topics. When situations change you two can amend your agreements. But it is always good to have a starting point on paper when new challenges come up.

Howard Roark
03-30-2008, 09:58 PM
The one Ship in the fleet that never stays afloat....


PartnerSHIP.

Way too late to be asking these questions. Get out of your half somehow (hopefully with some cash) and start your own gig.

Seriously.

turbo5560
03-30-2008, 10:05 PM
the more people that say get out of a partnership the more i want to stay in it to prove to myself and others that I can make a partnership work.

M&MLawn
03-30-2008, 10:24 PM
Hey you have been in it for four years and its working well for you. Hammer out these details and I am sure you will both do great.

davink
03-30-2008, 10:46 PM
You can make it work, Just be sure to WRITE OUT EVERYTHING... you need every little detail on paper no matter how small. Many people that fail at this do so because one recalled that something else was said, the rule up front, if it is not on paper, it does not mean anything. You both need to agree on that, and update the contract between you regularly. The issue is not trust, it is the way that different people can perseve, or recall what may or may not have been said... Ever hear the expression that you hear what you want to hear. Smae thong for memory.. I have other businesses, and one I am partners with my Brother. Istill have written contracts. He was insulted at first, but after a few years I asked him some of the small details if it, and he could not remember, and was glad that we had the contract.

Also figure a way that each of you get paid fairly. Even if your partner says that he is okay with 50/50, but you not doing all of the work, he will get pissed eventually, and the little things will become issues. Also make sure that you have regular conversations, and make sure that communication stays open. It is much easier to deal with a small problem rather than one that has festered for three months and really gotten to someone.

Best of luck with it!

Howard Roark
03-30-2008, 11:03 PM
the more people that say get out of a partnership the more i want to stay in it to prove to myself and others that I can make a partnership work.

While I certainly wouldn't let THAT be my main motivator.....

Go for it. Just remember....

We told you so.

Seriously.

mowing grass 1111
03-31-2008, 12:20 AM
if everything falls into place within the next 2 days i plan on partnering up with my brother inlaw again it will be a 60/40 deal . i am waiting to hear back on a huge contract . we teamed up the summer of 2003 and all of 2004 and it worked out well . there were times we got on each others nerves but we worked very good together , the guy that works for me now can't get on the same page as me if his life depended on it.
It was nice to know that if something happened to either one of us that things would not slow down.
those 2 years were also my best years... money wise in this business

brentcausey
03-31-2008, 12:26 AM
Yeah - I had a paternership and one time and there were lots of ups and downs. I've been on my own for the past 4 years now but still keep a full time job. I have a friend who wants to get into the business with me. I'm thinking about setting up a deal where he can use my equipment on his yards and pay me 30% but if he mows a yard of mine with my equipment he gets 30%. So If he mows one of his yards for $100 he'll get 60 and if he mows one of mine for $100 I'll still get $30. This would enable me to expand from my current point because I can't add any more yards due to time restraints. Any advice? 'preciate it.

brent

mowing grass 1111
03-31-2008, 12:38 AM
Yeah - I had a paternership and one time and there were lots of ups and downs. I've been on my own for the past 4 years now but still keep a full time job. I have a friend who wants to get into the business with me. I'm thinking about setting up a deal where he can use my equipment on his yards and pay me 30% but if he mows a yard of mine with my equipment he gets 30%. So If he mows one of his yards for $100 he'll get 60 and if he mows one of mine for $100 I'll still get $30. This would enable me to expand from my current point because I can't add any more yards due to time restraints. Any advice? 'preciate it.

brent

i would want a business partner to have a little more invested then just labor... whats to keep him from walking when things get tough. my brother inlaw will have his own ztr and wb w/c ins and power tools . we will use my truck and trailers . not saying that what you have planned will not work... good luck:)

YoungGun
03-31-2008, 01:12 AM
I started as a partnership... First of dont do it!!!

we both kept books here and there but when he picks up a new job and tells you its 30 a lawn and its 35 so u get 15 and he gets 20 for 25 weeks and for 5 lawns thats a extra 650.00 he basicly stole!

and it will happen in every partner ship there has to be one person who owns 51 or more percent

brentcausey
03-31-2008, 03:58 AM
Good Points. Anything else ya got? I've been friends with him for years and know that he wouldn't do that. We're going to start off like this and eventually get him where he's big enough to do his own thing. I just want to grow but time is my only restraint. I've turned down 10-15 clients in the past 2 weeks due to time restraints. Any other guys in similair situations or paternships?