another look at "partners"

Discussion in 'Lawn Mowing' started by bobbygedd, Feb 24, 2005.

  1. bobbygedd

    bobbygedd LawnSite Fanatic
    from NJ
    Posts: 10,178

    we all know what happens when u become partners in business. it's usually with a friend, relative, or aquaintence, and it's usually a new venture for which you both arent ready . it always ends in disaster, there are arguments over the proper way to do things, the dividing of funds, and there is always a trust issue. LET'S JUST SAY, you had the oportunity to become a partner with a seasoned veteren from this site, say mac, rod, jimlewis or one of the other seasoned vets who have been succesful in this business for many years. taking into consideration your new partner has knowledge, years of experience, and is on the same level as you as far as how things should be done, would a partnership work out like this?
     
  2. wbw

    wbw LawnSite Fanatic
    Posts: 5,516

    Being partners is like being married, but without sex (I hope). It can be very rewarding if you compliment each other and even harder if you don't. Now who would get married knowing they weren't going to have sex?
     
  3. The Dude

    The Dude LawnSite Member
    Posts: 221

    Personally I can't see possibly how it could work. When people partner up it is because both parties feel that the things they are lacking, be it knowledge or money, the other person has.
    Those guys have become successful without a partners help so I can't see why they would need you around, thereby creating animosity from the start.
    Now if two highly successful companies were to come together as one to create a huge company, that may work.
     
  4. LB1234

    LB1234 LawnSite Gold Member
    Posts: 3,210

    I think the best thing for a partnership of any kind is too make sure everything is placed on the table. Place all this in an official document and have it reviewed with the both of you and an attorney. By laying everything out on the table beforehand you will avoid complications down the road.

    And when, not if, a problem arises you need to be able to come to a solution that both parties agree too. Your in business to make money, not friends. I have a partnership (LLC officially) with my brother. We both have the understanding that business is business and personal is personal. We've been in many of arguements in the past...never, not once, have we let it interfere with our personal lives. We could be arguing one morning about something but at the family gathering that evening we would place that aside and make sure to tackle the issues at work, not at home.
     
  5. nitrotim

    nitrotim LawnSite Senior Member
    from nj
    Posts: 525


    I don't think so. For example if you I became partners and we each brought say $50,000 to the table. We would both have an equal stake finacially but you being the veteran and having the infinite knowledge of how things should be done would eventually want more of a cut. There would always be a superior - subordinate thing. Then the problem would be as I gain more knowledge I would sooner or later say hey I can do this myelf I don't need a partner. The other thing that never seems to work in partnerships is that both people have different things in their lives that are priorities. If I am married and have kids my priorities are different than someone who is single. NO two people are the same.
     
  6. mtdman

    mtdman LawnSite Gold Member
    Posts: 3,137

    I've done partnerships twice, and both times it didn't work out. Even when it worked, it worked because I was the dominant partner, did all the paper work and made all the decisions. Unless you can clone yourself, partnerships in this business are not a good thing. The only way I could see it happening is if one was a minority silent partner and understood their place in the company. But other than contributing extra money, I'm not sure why you would want someone like that.
     
  7. cgland

    cgland LawnSite Bronze Member
    Posts: 1,929

    I have a partnership w/ my cousin. Our skills compliment each other very well. we still both work in the field and do estimates and bookwork in the evening. We seem to have a pretty good system going and it has worked out very well.($500,000 in sales for 04 and $750,000 projected for 05) Maybe we are more the exception than the rule, but I wouldn't have it any other way. It's nice to have an equal to fall back on if problems arise.

    Chris
     
  8. Kelly's Landscaping

    Kelly's Landscaping LawnSite Platinum Member
    Posts: 4,414

    Of the three you mentioned and I am good friends with 2 of them I would pick Mac since he has had partnerships and has no negative things to say about his. Or at least has never publicly we would counter each other well as he likes more of the landscaping aspect and I would be more then happy to run 500 plus lawn accounts a week. Rod and Jim are both solo guys and I doubt they could yield some control. That said Bobby I am not leaving my state so they would need to move :p

    Now would I partner up with you bobby with your wealth of printing knowledge, which does look good in Feb when I am getting ready for our years ad blitz. I would have to pass I don't think I could use those small mowers you like with out snapping. :cool:
     
  9. promower

    promower LawnSite Bronze Member
    Posts: 1,232

    I think a partnership will work if the 2 partners have their own niche and are bringing value to the company. Maybe one is very good at the lawn maintenance/ and the other has great landscaping skills. If the company itself thrives on the knowledge of each partner it can work. As far as my lawnsite business partner it would have to be you BG. I would never have to worry about collecting money and I would have front row tickets to the UFC on a daily basis. We could go mow a few lawns, then call it a day and drink a few cold ones and do a few sets on the butt cruncher. What do ya say should I draw up the paper work?
     
  10. txlawnking

    txlawnking LawnSite Bronze Member
    Posts: 1,905

    IF you use the proper charter ( = corporation ) to do business with..

    Personally, I would never get into a partnership unless it was an L.P. or LIMITED partnership. You can form a GENERAL partnership in almost any state with nothing more than a handshake or a verbal agreement. In one of these deals, anything that one partner does, they can basically indebt ( make liable) the other partner to. And this type of partnership has no tax benifits or any of the other "perks" that a corporate entity does..

    A partnership can be made to work.. But consult with a legal professional first..
     

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