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deitleman
10-09-2009, 01:59 PM
I have an uncle who owns a very successful Construction and Landscaping business (well established, since 1986). My brother and I both worked for him for years, me in landscaping, my brother as a carpenter. We both went on to other jobs, and both have done our own very small side businesses in the forementioned fields since.

In recent months I have been gathering info, with hopes of growing and going full-time as soon as I'm able. My intention was to do it alone, but my brother has recently pitched the idea of a partnership, modeled after our uncle's business. Naturally I have my reservations about working with family, particularly co-owning a business.

On the plus side, we're very close and get along well. We both own our own equipment, no loans, etc. If we were to continue exploring this idea, is there a way to operate as one company, both handling our separate divisions, and sharing overall profits? Is there a way to simplify the arrangement to make it work? My only concern is the obvious, as I wouldn't want hard feelings or worse... Any thoughts? Thanks

steelie man
10-09-2009, 02:29 PM
I have an uncle who owns a very successful Construction and Landscaping business (well established, since 1986). My brother and I both worked for him for years, me in landscaping, my brother as a carpenter. We both went on to other jobs, and both have done our own very small side businesses in the forementioned fields since.

In recent months I have been gathering info, with hopes of growing and going full-time as soon as I'm able. My intention was to do it alone, but my brother has recently pitched the idea of a partnership, modeled after our uncle's business. Naturally I have my reservations about working with family, particularly co-owning a business.

On the plus side, we're very close and get along well. We both own our own equipment, no loans, etc. If we were to continue exploring this idea, is there a way to operate as one company, both handling our separate divisions, and sharing overall profits? Is there a way to simplify the arrangement to make it work? My only concern is the obvious, as I wouldn't want hard feelings or worse... Any thoughts? Thanks

Have an attorney draw papers stating that all monies get put into the same account and all expenses(including payroll) comes out of that account. Everything must get split 50/50 regardless which division makes more money. Also if the partnership ever dissolves all profit and debt must be handled 50/50 regardless who has more of each.

Trust me it will be the best $1500.00 you will ever spend!

BTW, do NOT go into business with friends or family, ex specially if you like them!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

deitleman
10-12-2009, 11:06 PM
Thanks for the last reply, it was helpful. Anyone else with suggestions, or first hand experience in a partnership?

GXL2008
10-12-2009, 11:36 PM
I'm a contractor but me and my younger brother took over my fathers landscape biz we didn't draw up any papers we just really talk alot wouldn't do it alone after working with him. its great to have some one to be able to work with you like.

LouisianaLawnboy
10-13-2009, 12:02 AM
If you want ti stay close don't do it.
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THEGOLDPRO
10-13-2009, 12:11 AM
i dunno, my brother and i both own our landscaping business, all the profits go into our business account, and we both have atm cards linked to the account, if your both like minded, and as close as you say it might work out, my brother and i are very close and hardly ever argue about anything, we both have very similer goals, and are both on the same page as far as the business goes.

The key to making it work is communication, if you dont talk it will all go to ****, you guys needs to be able to talk things out, and make rational decisions about the company. and ONLY go into business with each other if you have the same goals.

CkLandscapingOrlando
10-13-2009, 07:05 AM
Your problem will come from the fact that your working 2 industries. If his booms this year but you just stay busy. Or the other way. If you both shared all the work it would be one thing. But if one of you starts proping up the other, I see trouble.

Jay Ray
10-13-2009, 12:26 PM
Did your uncle have a partner?

deitleman
10-13-2009, 07:49 PM
Did your uncle have a partner?

No, my uncle is incorporated, and the sole owner. I appreciate everyone's advice. It's a tough decision, and I agree that good communication and the same set of goals will be 100% necessary for success. I'm concerned about the two separate divisions, and one doing more than the other too. It complicates things, and I'm still unsure how to arrange it financially. 50-50 sounds good in theory, and might just work. I guess the possibility of one side doing much better than the other needs to be discussed, with an upfront agreement/understanding. I'm still muddling through this, so keep the good advice coming guys. I really appreciate it.

SangerLawn
10-14-2009, 12:19 AM
I recommend never working with or for family and friends. This leads to disaster.

Jay Ray
10-14-2009, 12:27 AM
It will put your uncle in a tough position, but I'd ask why he didn't use a partnership, what he thinks about partnerships in general, and for his thoughts about what you guys are planning.