Thread: Biz Partners?
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Old 05-26-2014, 02:41 PM
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TPendagast TPendagast is online now
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Join Date: May 2008
Location: Wasilla, AK
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Business minded entrepreneurs are seldom excellent production managers.

Sometimes a good production specialist is so hard to find and too costly to just simply hire, especially when just growing.

I have never seen a 50/50 partnership work.

But lets say the COO has a 50% ownership of his company.
His maintenance division manager has a 20% ownership, His Hardscape Division Manager has 20% ownership and special projects and gardening has 10% ownership.

All the production chiefs have a vested interest in profitability and long term growth and don't simply collect paycheck, they are 'owners' so can get perks like company cell, truck for personal and business use, etc etc.
So they don't need to pull as big of a paycheck either.
I have seen these situations work as well, because it also lends its self to your key people staying n place for the long haul.

The Entrepreneur a majority control, but if he's doing something stupid for all of the divisions, the three others come together on an equal share of ownership, so although its still 50/50…its' three agreeing against one.
These situations usually come to light quickly and are resolved easily.

Daily decisions made by the 50% owner, Long term directions decided by all the owners, production guys get to focus on their staff and jobs on a daily basis without being burdened by office drib drab.

The start up situation like being expressed "I need a partner to get a truck, so you will do" Lol Ive never seen that get past year one, if ever off the ground.

Ive been pitched that offer many times in the last several years.
"hey you have stuff and I have ideas"
Also lots of people trying to hire me "together we can be bigger"
You mean you don't want to pay for experience, knowledge or consultation and want to ride someone's back while you raid the piggy bank?

ahhh no.
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