Partnership

Discussion in 'Lawn Mowing' started by A+ Lawncare, May 31, 2005.

  1. A+ Lawncare

    A+ Lawncare LawnSite Senior Member
    Posts: 503

    My friend John contacted me 2day looking for a job/partnership in my co. i'm pondering whether i want this or not.... here's the deal & setup i'm running.... rite now i'm operating out of a ranger p/u & 2 toro trim mowers (21'') & all the handhelds, and its paid for. so i have no need to request $$ upfront from him as a partner.

    but my plan is to pay him $400 a week (40hrs) X 4 weeks, i plan to hire him next week if i do so and work him until next september. 10-12 weeks of 40hr work weeks...

    anyways, here the deal... rite now John doesn't have a lot of $$ to put down, maybe $250... my total mowing rig is worth about $1,500 w/o the p/u... the equipment used i could easily ask $800-1k 2day and get it... so the plan is to divide my cost of equipment value in half..... $900/2= $450.... $450-$250 (the amount of $ he could pay upfront)= $200 left to pay.

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    i currently have 20 accounts and plan to sign on 35 by the end of june to keep us busy full time...

    i cut lawns from size of 1/8-1/2 an acre rite now.... and make about $750 rite now.... by the end of june i plan to make $1,050 a week.....

    i want to pay him $370 a week for a month and subtract $50 a week from his pay to make up the cost of equipment.... so $370-$50=$320 a week.... $320/40hrs= $8 an hr

    from July to Sept. i'm gonna pay him 40% of the $ we make a week, since i have the truck and will supply the fuel.... so if we make $1,050 a week, thats $420 a week.... $420/40hrs= $10.5 an hr.
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    1 of my questions are if he by chance drives his truck for the day if my truck by chance goes down, how much extra should i pay him for the use of his truck & fuel?
     
  2. Charles

    Charles Moderator Staff Member
    Posts: 7,851

    I would not partner with anyone who only had 250$. Best bet to just hire him as an employees. Not much benefit to you as a partner
     
  3. gwwilson

    gwwilson LawnSite Member
    Posts: 89

    1. no partnership, period............

    2. you only have 20 jobs, what the h _ _ _, do need and employee for ????/

    3. i have 81 lawns, that range in size from 1/2 acre to 14 acres.........
    and i take care of all these lawns...................

    trouble is a coming !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!


    :blob3: :blob3: :cool2: :cool2:
     
  4. A+ Lawncare

    A+ Lawncare LawnSite Senior Member
    Posts: 503

    wilson u may have 14 acres you cut but i'm sure you have the a bunch of equipment to service this lot..... 14acres and .25 acres is a whole diff. lot, why compare the 2 and situations?
     
  5. Thirdpete

    Thirdpete LawnSite Member
    from Chicago
    Posts: 236

    even if you have a soft spot for your friend i wouldnt do this. thats letting him jump on the ship after its already left port, so to speak. after he sees its a cash cow if done right then of course he wants in. but either way, i would avoid a partnership at most costs.
     
  6. Turf Technologies

    Turf Technologies LawnSite Senior Member
    from Florida
    Posts: 590

    DO a search of partnerships and you will have your answer. I was in a partnership with my brother. It was ok. But we just ened it in April, he wants to try another line of work. If I knew then what I do know , I wouldnt have formed a partnership at all. And many others will say the samething.
     
  7. MMLawn

    MMLawn LawnSite Gold Member
    Posts: 3,569

    Dude you are 17 years old, you don't need any help to cut even the 35 yards that you hope to get with that young strong back!

    Besides at 17 you can't legally have a "company" a "partner" or an "employee" cause you have to be 18 for those things.

    Just cut them yourself and pocket that money you would give him!
     
  8. A+ Lawncare

    A+ Lawncare LawnSite Senior Member
    Posts: 503

    sole w/one mower,i'm only able to cut no more than 10-12,000 in about 35mins, so w/John i'm sure we cut up to 20,000 sq ft total lot size in about the same time..... so thats double the $$ we could make... in an hr time we could about ¾ acre or 32,670 square feet, which is about $45-50 going rate in our town. So $50-$10.50= $39.50....

    note i'm going to pay him 35-40% of what the company takes in after expenses each week, so hourly really doesn't have much to do with it....

    $
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    Expenses...........

    $10 an day ( gas for torros)


    75 miles/ 17 mpg= 4.4 gallons X $2= $8.80 gas expense per day

    $10+ $8.80= $18.80 an day gas expense X 5 days= $94 week expense
    $7.50/2 mowers= $3.75 each mower operational cost.... $7.50 X 5days= $37.5 mower expense

    $120 truck expense/ 24hrs= $5 an hr.

    $500,000 worth of liabity, annual premium is $730


    $730/ 14 weeks= $52.14 a week/ 40 hrs= $1.30 an hr expense

    $94 + $37.5 + $52.14= $183.14 week expense + $120 truck expense= $303.14 TOTAL(week)
     
  9. PTP

    PTP LawnSite Bronze Member
    from Tulsa
    Posts: 1,370

    This sounds like a bad idea.

    You should be able to do 35 lawns solo part time. I know that because I did it last year. They were about the same size that you are servicing.

    A 2 man crew can take care of 100 properties per week with your current set-up. If you want to hire him as an employee, that is OK but you will need more properties.

    So let's say that you can take in $1050 per week. You can take about 25% off for your overhead costs (I am being conservative here). That leaves you with about 800. You give your partner $420 and that leaves you with $380 in your pocket. Now, that is just for the mowing time. You still have to do the maintenance, billing, and the office things. And who pays for the garden hose that you accidently hit?

    In reality, your partner will be making more per week and much more per hour than you will be.

    Pass on this one.
     
  10. A+ Lawncare

    A+ Lawncare LawnSite Senior Member
    Posts: 503

    w/him i can cut the 40hr work week down to about 25 hrs.... so $1,050- $303.14= $746.88 cleared/2 = $373.44

    $373.44 /25 hrs= $15 an hr for both... but since he only gets about 35-40% thats $261.40-$298 for him (25hrs)..... $280/25 hrs= $11.2 an hr for John

    and $466.88 for myself.... $466.88/25hrs= $18.67 an hr....
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    Solo, i make about the same per hr. but its 40hrs instead of 25 hrs.... half the work and same amount of $ i make w/him.... IMO its a good deal for both of us.
     

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