Considering Partnership

Discussion in 'Starting a Lawn Care Business' started by zpv30458, Aug 3, 2005.

  1. zpv30458

    zpv30458 LawnSite Member
    Posts: 11

    Hey guys it's me again :waving: I was talkin to my cousin and he said I should talk to someone I know that has an expendable budget to get help with buying equipment/ or maybe a business. He is a lco and I rode with him one day just to see how he runs his crews. He got started this way, he borrowed money from someone and once he pays off the money the lender will own 10% of his company. I was thinking I could possibly do this and also the lender would get the tax write-offs plus 10% profit + free lawn maintance. Tell me what you think, also how would you go about proposing the idea? Thanks!
     
  2. Zeus661

    Zeus661 LawnSite Member
    from Ohio
    Posts: 8

    After being in several retail businesses over the last 25 years there is no way I would work up anything like that. Even if a person owns 10% of your work they will think they own 50%. I would go to a bank, sell a car or boat, and get my money some other way. Even if I used a 21" push mower for a year. Just my 2 cents.
     
  3. arborist-28

    arborist-28 LawnSite Member
    Posts: 246

    I have to agree w/zeus.. there is no way I would go ahead with a deal like that .. too risky, partnerships that work are very rare ...c
     
  4. MowingInAZ

    MowingInAZ LawnSite Member
    Posts: 79

    NEVER I REPEAT NEVER give a fraction of ownership of your business to someone else. When you pay off your loan, I know from experience that they will try to ROB YOU BLIND. This is just an example.... If you make $10,000/year with all your hard work, the man get 10% so he gets $1000 of your hard work. Never go in a partnership unless you can't avoid it.
     
  5. MMLawn

    MMLawn LawnSite Gold Member
    Posts: 3,569

    You can't do any of that because you are only 14 years old and to sign any legally binding contract you must be at least 18 years old. Just borrow the money from your parents and start small, plus the mowing season is more than 2/3's over now for this year anyway.
     
  6. a1 lawncare

    a1 lawncare LawnSite Member
    Posts: 153

    i'm with the everybody else here, i would start small, with little or no debt, you already have a leg up on alot of people in that you have a relative that is in the biz :) , a good source of info and maybe some slightly used equipment.

    best of luck, but if you start out with a lot of debt, imo you'll be starting back-wards, buy equipment as needed, not as wanted, ie, if you only have 10 1/2 acre yards weekly you wont need the new wizbangergrasschoppermagnumZtr 102" cut 90hp diesel super deluxe
     
  7. out4now

    out4now LawnSite Bronze Member
    from AZ
    Posts: 1,796

    Other than some cash injection what else does it really offer you? Avoid it if you can. Like everyone has said there are other methods of raising capital and at your age you can't enter into any valid contract. It may take you some time but you can grow a good biz if you are pretty savy with money and make good investments and limit your spending as you go.
     

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