partners....

Discussion in 'Business Operations' started by gogetter, Apr 22, 2004.

  1. gogetter

    gogetter Banned
    Posts: 3,256

    Okay, I know this topic has been discussed a thousand times and the replies are always the same......."don't do it".

    But we never hear from the successful partnerships here. I know there are at least a few here.

    And when you read the profiles they do on larger companies in the trade magazines, they are often owned by partners.

    So, are there any happy partnerships out there that want to share there experiences with us? What do you like about having a partner, what do you dislike about it, and how do you deal with that?
    Are you related, were you friends first, if not how did you get together?

    Just curious, not necessarily looking for a partner.
     
  2. jajwrigh

    jajwrigh LawnSite Bronze Member
    Male, from Martinsville, IN
    Posts: 1,405

    I would guess that some "partners" in those larger companies merged into one company at some point and the original owners joined together.
     
  3. specialtylc

    specialtylc LawnSite Bronze Member
    Posts: 1,656

    My company is a partnership. We both worked at the same place and became friends there. We started like most of the guys on this site by doing it part time. I enjoy our partnership because we have different business strengths. I do alot of the estimates and bids. I also do all the office work. My partner is the one who does are scheduling, runs our crew, and he is the type of person that enjoys working hard 12 hrs a day 7 days a week. Keeps ME moving. We have been in business since 1998.
     
  4. Team Gopher

    Team Gopher LawnSite Platinum Member
    from -
    Posts: 4,041

    Hi Gogetter,

    Here is a quote from this site.

    "You need to be careful. Certainly, there are many good aspects to having a partner, but partnerships are fraught with danger. You have to weigh the benefits against the burdens and decide if bringing in a partner is right for you.

    Let me begin by playing devil's advocate. The first thing to be wary of is the emotional aspect of having a partner. One advantage to being the boss is you have no one to answer to except yourself. That's one of the definite perks of being a solo entrepreneur. Bringing in a partner means you will have to consider another point of view before any major decision is made.

    Also, the partnership may not work out. Growing up, I watched my father and his partner grow their small, single carpet store to a chain of 13 stores. His partner also happened to be his best friend, and they had a lot of fun in that business. Yet, after 17 years, my father's partner bought out my dad and the two never spoke again.

    Another thing to be aware of are the legal risks. In a partnership, each partner has the legal right to make decisions and enter into contracts on behalf of the whole partnership. The danger is that your partner can make some dumb decisions, get the partnership into debt, and you will be personally responsible for that debt.

    On the other side of the ledger, there are many things to be said for having a business partner. One is that it enables you to have someone to brainstorm with. That great idea you have may not be such a great idea after all, and a partner you trust can tell you why.

    A partner also gives you another pair of hands to do the work. It is difficult to be the one who has to do everything, when you are solo. Partners alleviate that.

    Last, and certainly not least, having a business partner gives you someone to share the financial responsibilities of the business. That is significant.

    Having considered the pros and cons, having possibly concluded that a partner can help more than it might hurt, and maybe even knowing someone you would like to partner with, I would still suggest that before jumping in, that you "date" first.

    Find a project or two and work together. See how you get along, how your styles mesh (or don't), how you deal with deadlines, and if the union enhances your work.

    Remember, you will be spending a lot of time with your partner, so you need to be sure that you work well together, have a good time, and have skills that complement one another.

    Finally, get some work references and make some phone calls. Deciding to partner with someone is one of the most important decisions you can make in your small business, so don't skimp on the homework."
     
  5. Kelly's Landscaping

    Kelly's Landscaping LawnSite Platinum Member
    Posts: 4,406

    I am very pleased with my partnership however it is set up as an S corp not a partnership he has 400 shares and I have 600.

    What makes ours work is we have different areas in which we are good he works out side with me but his selling points is he does all filing all billing all comp work and all phone work and he sets up the estimates that I do. He also does the fert yes we are both qualified for all that but with running the company planing the jobs and comanding the job sites and writing the estimates and bids. I have enough to deal with so he frees me to do what I do best and in doing so we are stronger as a team then we would be solo.

    This is our 1 year mark were over 100 lawn accounts its growing at an insane rate we get 15-30 calls a day and it looks like 250-400 k is quite likely for our sales this second year. Not sure what the solo guys do in their second years but that growth rate is very hard to do with 2 guys Id hate to try it with just me.
     
  6. coyoteman

    coyoteman LawnSite Member
    Posts: 89

    Our business is a partnership and has worked out great. we both have the same work ethic and share all other duties. We are currently in the process of incorp. and having some contracts written up for each other. This is a must with partners. Money is money and friendships need to be put aside sometimes. Also with a partner it is another face that people will know bringing in more bussiness.
     

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