In Business with a partner?

Discussion in 'Lawn Mowing' started by EROSS17, Jul 19, 2001.

  1. EROSS17

    EROSS17 LawnSite Member
    Posts: 49

    I'm just curious how many of you started in this business with a 50/50 partner and if you are still doing it that way or if one of you bought the other one out. Or anything relating to having a partner.
     
  2. bubble boy

    bubble boy LawnSite Bronze Member
    Posts: 1,020

    i started with and still have a business partner. known him for 10+ years, thru high school and university. we worked together for a company previously, so we felt we could be friends and work together at the same time. we started out as a general partnership and then incorporated within a year at 50% ownership each.

    works out real well, we both are upfront guys, and we don't feel bad about telling each other off(this is key for us). trust was there already. advantages have been great. it works out that what i'm good at, he's not, and vice versa. splitting up duties comes naturally. plus, i don't know how guys who run their business alone find the time. i could not imagine adding all his tasks to my to do list.

    there are things to cosider.

    don't start up with someone just cause you both want to run a lawn business. you may not want to run the same way. i would say no matter what each of you bring into the partnership, make sure the financial split is even. one of you can be more dominating, intelligent, tougher, faster, and it can still work out. but if one of you has double the financial committment, this could be a problem. always keep $ split even, even if its $5 in gas money. the dollars and cents split is one thing about the business you CAN control
    also prepare for the worst case scenerio. accept the fact that you may not get along and have to end the partnership. see a lawyer about a partnership agreement, preferably with a shotgun clause.(the lawyer can fill you in)

    and if youre friends now, know that you may not stay that way. especially if you kill him for underbidding a job:D

    also remember-half the work, half the $$$$.
     
  3. EROSS17

    EROSS17 LawnSite Member
    Posts: 49

    I have been involved in a partnership for the last 5 years. We are Incorporated. Everything is 50/50. It's with my best friend, and there hasn't been any problems. But now that we have been doing it for this long, the excitement of a couple of buddies owning their own business has dissapeared (we were young and didn't want to work for anybody else). But now I have a great business oppurtunity being offered to me, (nothing to do with lawn service) making a lot more money than I'm making now (no 50/50 stuff just good old 100%), and was just curious if and how people got out of a partnership.
     
  4. Avery

    Avery LawnSite Bronze Member
    Posts: 1,389

    Started as and still a partnership. Will be incorporated within the next few weeks at the banks/accountants advice. I have heard many horror stories about partner ships. It has worked good for us thus far.
     
  5. SLS

    SLS LawnSite Bronze Member
    from Mars
    Posts: 1,540

    Although being partners can be both fun and beneficial my experience is that there is room for only ONE boss.

    Having done the parter thing twice I can say that I'm happiest being the only decision maker...right or wrong.

    Plus my personal 'bottom line' is WAY better than splitting things 50-50.

    For reasons I won't bore you with here, I'll NEVER do a 'partership' again.

    I already have a wonderful wife and one marriage is enough for me. :D
     
  6. bubble boy

    bubble boy LawnSite Bronze Member
    Posts: 1,020

    eross17-i mentioned the shotgun clause in my previous post, i'm not sure if you have one with your business partner.

    the way it could work for me, if i wanted out:

    i make my partner an offer of $xx. He then has two choices. He can accept the $xx and give up his half of the business, or he can instead purchase MY 50% for the $xx amount. This ensures that i make my bid of $xx a fair one to both of us.

    of course this is a scenerio that would occur if we couldn't come to an agreement beforehand. if you can agree on a selling price, then just let the lawyer work out the details.
     
  7. EROSS17

    EROSS17 LawnSite Member
    Posts: 49

    Thanks for the responses. I guess I'm mostly curious about how people got out of partnerships. Ya know, like how did you split everything. Or how did you buy out the other person or vice versa.
     

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