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Loan are partnership with friend?

Discussion in 'Business Operations' started by South Florida Lawns, Aug 28, 2006.

  1. South Florida Lawns

    South Florida Lawns LawnSite Platinum Member
    from usa
    Posts: 4,785

    Alright this guy I know wan'ts to go into partnership with me.

    He knows I have had to turn down work because I don't have enough time or workers.

    We got together and he is willing to put up a lump of money for hiring employees from a staffing company, also for advertising in the paper, fliers, and the phone book.

    I was thinking this might be worth looking into, but then I wouldn't't completely own SFL anymore.

    Then I spoke to a friend that takes out loans for this kinda stuff and also has a business credit card that he uses.

    I am almost outta college and wanna get cracking, I got all the equipment. I think a loan makes more sense, what do you think?
  2. Kickin Your Grass

    Kickin Your Grass LawnSite Senior Member
    Posts: 479

    Don't do it! Get a loan.............
  3. BSDeality

    BSDeality LawnSite Silver Member
    Posts: 2,850

    I just secured a $15,000 line of credit from the bank; I sign the papers Wedsnday. I can use it anyway I please. It doesn't take much to get it, but its there in a pinch. I have "ok" credit and got a prime plus 2% rate on it.

    I would steer clear of the partnership thing, for every one parternership that does work, 9 fail.
  4. WildWest

    WildWest LawnSite Senior Member
    Posts: 384

    I'd NEVER partner again! EVER! I don't mind working in conjunction with others, but never a legal partner! (Had one bad experience and swore NEVER AGAIN!) If you MUST...get a loan.
  5. South Florida Lawns

    South Florida Lawns LawnSite Platinum Member
    from usa
    Posts: 4,785

    I think I have good credit.

    Pay off card on time every month and pay my truck off on time. Loan on that is in my name.

    What else guys anymore input?
  6. he only wants to partner with you to get closer to the girls, hey not a bad idea.
  7. dcondon

    dcondon LawnSite Silver Member
    Posts: 2,246

    If you can do it stay on your own and then build your business. Don't want to see you get wiped out!!!!!!
  8. dvmcmrhp52

    dvmcmrhp52 LawnSite Platinum Member
    from Pa.
    Posts: 4,205

    Using credit to build a business is a smart tool under the right circumstances however I'm not convinced that creating debt for advertising is the best idea.
    Stay away from the partnership and work on getting some credit but use it very wisely. Too many lawncare businesses go broke from buying too much equipment and growing too fast.
  9. rocksrscott

    rocksrscott LawnSite Member
    Posts: 26

    Check out the SBA in your area for some free info. They might be able to show you how to expand without going the partnership route. :rolleyes:

    Good Luck Scott :usflag:
  10. South Florida Lawns

    South Florida Lawns LawnSite Platinum Member
    from usa
    Posts: 4,785

    thanks guys

    Right now Im in a good spot

    cuz the truck is 95% paid for and my z is almost paid off. (i can pay both off at same time whenever)

    Everything else I own and paid cash for, so Im ready to go the next step.

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