Partnership not really working out - Advice please

[Ryall Landscaping]

Me and a friend started up a landscaping business with my/my families truck, trailor, mower, etc. etc. He has no car or drivers license, but we're best friends so I looked past that. Now, he has done great w/ the physical part of the work, but I've been doing all of the behind the scenes work (bidding, estimates, etc. etc.). We have done advertising together, and split all expenses and income 50/50. I feel like I'm doing way more work than he is.

We've decided that it isn't working..We came up with these 3 options, but I wanted to ask you guys for your .02 first.

A) Cut it off now. Pay him hourly (~$12/hr) or a percentage on each job (not sure on how much to do for a % rate)

B) Work it out. Try to factor some more work over to him (have him take the phone calls or something)

C) Work it out, but in a different way. Instead of 50/50, perhaps a different ratio - 60/40? 65/35? etc. This would IMO cover the extra time spent in other areas besides labor.

What would you guys do? We're great friends but I don't think it's working out and I've read constant horror stories about partnerships not working out.

Thanks.

[Stingray63]

How much money does your friend have invested in the business? From reading your thread I'm guessing none. If I was in your shoes I'd give him more things to do.

Stingray

[Az Gardener]

If he is doing everything you ask of him then he is up holding his part. He can't read your mind. Do the estimating and bidding during regular business hours or come in later if you will be doing the other stuff later. A good partner that is doing the physical stuff and handling the field is good to have as the business grows.

[richallseasons]

It sounds to me like you are the business man with the drive to grow and he is in it for the ride, call him an employee and pay him hourly.

[Az Gardener]

It sounds to me like you are the business man with the drive to grow and he is in it for the ride, call him an employee and pay him hourly.

That's a kinda shitty thing to do to your best friend who entered a partnership and has done everything you asked of him. I will agree it is the smart business move but there is more to running a business than the bottom line. You have to stand behind your commitments.

[HOOLIE]

I'd go with "C", settle on a split that is fair and agreeable for both of you.

[Ryall Landscaping]

How much money does your friend have invested in the business? From reading your thread I'm guessing none. If I was in your shoes I'd give him more things to do.

Stingray
Yeah. He has next to none into it. He just is helped to pay for the usual expenses..Fuel, insurance if we get it (don't make this an insurance thread please..), etc.

If he is doing everything you ask of him then he is up holding his part. He can't read your mind. Do the estimating and bidding during regular business hours or come in later if you will be doing the other stuff later. A good partner that is doing the physical stuff and handling the field is good to have as the business grows.
Yeah, I know. Which is why I don't want to treat him like crap. He is a very hard worker, helps me advertise for hours, and does everything I ask of him basically. But, for instance, he doesn't have a car/insurance, so he can't do that. I am more of a people person by far and so I like to handle the estimates and phone calls and that, but it ends up being a lot of work. I don't know.

It sounds to me like you are the business man with the drive to grow and he is in it for the ride, call him an employee and pay him hourly.
Well, he has said that he'd like to do it more than just this summer, and he is generally a very committed person, so I would rather work it out some other way if possible.0

That's a kinda shitty thing to do to your best friend who entered a partnership and has done everything you asked of him. I will agree it is the smart business move but there is more to running a business than the bottom line. You have to stand behind your commitments.
Right.
I'd go with "C", settle on a split that is fair and agreeable for both of you.

This is the option I'm thinking is best. I don't mind, honestly, doing the phone calls/estimates/bids/etc., but I would prefer to get paid fairly for it as well.

If we were to go down this route, what do you guys think is a fair ratio? If you had a partnership, and your partner did the labor WITH you (50/50) however, you did ALL other paperwork/etc., what would you think is a fair split?

Thanks for the responses guys..I appreciate it =]

[yardco]

Don't break it off. Pay him a good wage but end the partnership. He can be your foreman when you've got 3 crews working for you. It sounds like he's a pretty good worker and you are a motivated businessman. Each play your part.

[Ryall Landscaping]

Don't break it off. Pay him a good wage but end the partnership. He can be your foreman when you've got 3 crews working for you. It sounds like he's a pretty good worker and you are a motivated businessman. Each play your part.

So..go down the A) option? Split the partnership and pay him per job? or per hour? what do you think is fair?

I never even thought of completely splitting up. I like him too much :laugh:. I like working w/ him, just want it to be fair/honest.

[yardco]

I'd pay him a good wage per hour and make it a corporation or LLC.

[tradeyouraccounts]

A: Option sounds like a plan if you can figure out the figures. It’s always best to lay your cards on the table and be up front in a partnership especially with good friends and family members.

[Ryall Landscaping]

I'd pay him a good wage per hour and make it a corporation or LLC.
I'm only 17 years old..I can't legally make it an LLC, can I? I don't think I can get insurance either..correct me if I'm wrong.

A: Option sounds like a plan if you can figure out the figures. It’s always best to lay your cards on the table and be up front in a partnership especially with good friends and family members.

OK. Well just in case that's the route we go, I'll play with some numbers =].

[Az Gardener]

I don't think he will be too happy being the paid help when in his mind, and rightfully so, he started this with you and put in countless unpaid hours to get it up and rolling.

Which is easier to hire a sales/estimator or a working foreman? You may get the work but if he doesn't produce it you are toast. Both jobs are important, don't be greedy, its lonely at the top.

You should suggest to him he get his **** together in regards to the drivers license and start reading up on leadership since that is the role he will be fulfilling as your company grows.

There is much more to running a crew than barking orders and hoping everyone follows along. Give him some homework so you can see his level of commitment as the business grows but it sounds like he is committed.

Homework would be some horticultural classes or conferences, chemical or soils education, small engine maint and repair, leadership, human resources, systems development. Just documenting your field systems could be a full time job and will be invaluable when you are training new people.

If you lose him you will regret it and unless he is a unic he will resent being cut out, maybe not at first but eventually.

[THC]

Get rid of him and go solo.