The Green Industry's Resource Center

jg244888 · #11 02-19-2009, 03:40 PM

just a tip if you do decide to go into a partnership ALWAYS have the majority!!!!!

hondarancher4435 · #12 02-20-2009, 06:21 AM

i think it's quite clear if it's with a freind don't do it you will only have problems

Valk · #13 02-21-2009, 11:41 AM

Manage '20' lawns yourself OR '40' with your partner...(essentially) it's the same $$$$.

Yup, there are exceptions - and I hope all who have partners and are reading this are among them.

escient · #14 02-27-2009, 12:46 AM

I started my business with a friend as well. While in the end, it didn't work out as partners (it's common for partnerships to fail), we have remained friends. We simply split customers, equipment, etc and moved on.

Now I will say that in the beginning, it was the ONLY way to go. We partnered because we each had a niche. He knew everyone in the community, had tons of contacts, and I had the business sense. It cost us each substantially less money to get serious and buy a lot of equipment, advertising, etc, so the risk was much more subdued as a partnership. Obviously the drawback was splitting income 50/50.

We lucked out by taking out a full page ad in the phonebook and drawing tons of business off that, which meant it didn't sting as much sharing profits, because we actually had a phenomenal first year.

It wasn't until year 4 that we split up, having netted just over $40K each for the year. Not a lavish income by any means, but to net $80K as a business in 4 years in the service industry where "everyone can do it" (or so they think) isn't so bad.

Now, after 2 full years of going it alone, I've completely replaced my business partner's share and then some.

My advice is this; If you can afford a lesser income, try the partnership first if your gut tells you to.

If you can't afford the lesser income, a partner really isn't an option, because the income simply isn't going to be what you'd like.

Just make sure you go into it with an exit strategy - preferably in writing.

hvphotog · #15 02-27-2009, 08:59 AM

Partnering is not a bad thing by any means or standards.. make sure you have the following

who owns 51% of the business controls the business when push comes to shove, of course this is if you are a corp with shares.

a written partnership agreement by a lawyer

who controls purchasing and the check book

Duties of each partner

Spelling out what is expected and what each of you expect from the other will save alot of headaches in the end and a friendship if there is one there in the first place.

I have partnered many times and have had very good experiences with it and one bad one. Remember you’re running a business so treat it like Wal-Mart would handshakes will do no one any good.. If it is not in writing than it does not exist period.

mow2nd · #16 02-27-2009, 09:28 PM

yea don't do it, I just seprated from my partner first of the year and all i have to say is "don't do it." we were friends for like 10 years and i never thought we'd have issues but we did..........so again my advice, DON"T DO IT!!!

hvphotog · #17 02-27-2009, 10:53 PM

Quote:

Originally Posted by mow2nd

yea don't do it, I just seprated from my partner first of the year and all i have to say is "don't do it." we were friends for like 10 years and i never thought we'd have issues but we did..........so again my advice, DON"T DO IT!!!

What were the underlying issuse that brought down your partnership? giving some background on a flat do not do it will be helpful to not make the same mistakes and along with how you see it how would your x partner see it.. Care to give details?

hvphotog · #18 02-27-2009, 10:54 PM

I think most importantly is how you are determining if you do need a partner.. what is he or she bringing to the table you do not have or you can not do?

mow2nd · #19 02-27-2009, 11:54 PM

Quote:

Originally Posted by hvphotog

What were the underlying issuse that brought down your partnership? giving some background on a flat do not do it will be helpful to not make the same mistakes and along with how you see it how would your x partner see it.. Care to give details?

I guess "Trust" In all honesty I trusted my partner, but I don't think he trusted me. I'm actually the one who decided to part ways, mainly because I didn't like feeling like I wasn't trusted. Kind of like having a girlfriend who is always on your case about cheating on her. You eventually get sick and tired of hearing it. After a while I got to wondering why he was so untrusting, maybe he was the one that shouldn't be trusted. Kind of hard to explain, but something just didn't feel right.