Handing over the reigns.

Discussion in 'Business Operations' started by Mowin4Dollas, Jul 23, 2014.

  1. Mowin4Dollas

    Mowin4Dollas LawnSite Member
    Posts: 87

    Alright fellas, I'm now going off to college due to I got a scholarship to be on a schools bass fishing team. My original plans were to attend community college, and grow my biz. Now, if I hand my business off to my brother in law, would it be too much for me to ask for maybe a 10 percent kick back of all profit, since I am essentially giving him the business? Thanks ya'll. any advice, tips, opinions are appreciated. GOD BLESS!
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  2. easy-lift guy

    easy-lift guy LawnSite Gold Member
    Posts: 3,376

    Quoting the OP "I got a scholarship to be on a schools bass fishing team", Incredible!, that aside I believe it would make more sense to have a valuation done on the business and have a payment plan set up say One down payment with x number of payments due every month and the final payment larger than all the rest to complete the transaction. If your getting out of the business to go to school close down your business like a business man would and sell out and move on. Otherwise your setting yourself up for problems that you don't need or want.
    easy-lift guy
     
  3. RedSox4Life

    RedSox4Life LawnSite Bronze Member
    from Mass
    Posts: 1,466

    Life.

    Sometimes, it doesn't suck.
     
  4. Mowin4Dollas

    Mowin4Dollas LawnSite Member
    Posts: 87

    I'm blessed for sure. My father wants to keep the business in the family. But as you said easy lift, it does seem like a lot of potential for problems for me if he doesn't do a good job.
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  5. easy-lift guy

    easy-lift guy LawnSite Gold Member
    Posts: 3,376

    Sell the business to your dad and let him run it as he sees fit. Just remember sell it and move forward.
    easy-lift guy
     
  6. Jobber

    Jobber Sponsor
    Posts: 338

    You can get a scholarship to be on a schools bass fishing team? Thats amazing! I wish I would have done that. Congrats.

    If you can trust them to run it well the 10% might work well. If you have any doubts you might be better off just selling it and be gone fishin. I guess it also depends on how many systems you have in place so someone can just step in and keep it going without learning too much.

    -Landen
     
  7. TurfWizardllc

    TurfWizardllc LawnSite Member
    Posts: 101

    I agree, I wish I could go bass fishin in college. These guys are right, you might be heading down a treacherous path with family, but come up woth a good number and get out. If it's a profitable business I'm sure you can come up with a number everyone agrees on. Good Luck!
     
  8. ztman

    ztman LawnSite Bronze Member
    Posts: 1,007

    I would have spent more time on the lake and less time hitting the books if I knew that. I will leave the Master Baiter jokes out

    And by the way, if you have an actual business formed, make sure you get the necessary paperwork in order. Don't want him running your biz and have something go wrong, and they hold you responsible. I know its family and all, but its still important to observe the corporate formalities
     
  9. ed2hess

    ed2hess LawnSite Fanatic
    Posts: 13,138

    Give him the business and get out. Sell theequipment to him. No liability to follow you.
     
  10. Will P.C.

    Will P.C. LawnSite Senior Member
    Posts: 965

    I would completely sale the business. Otherwise you will be spending lots of time doing free favors. If landscape work is out of the picture for good, and no plans to return to the business after school, sale it.

    You also might want to keep your options open in case school doesn't work out, can't find a job, etc and get a legal team to come up with some type of provision.

    Whatever you do, do it above board. A lawyer and the SBA should be able to help you by recommending the necessary steps and people to involve.
     

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