Thinking about taking on a partner....

Discussion in 'Business Operations' started by Albery's Lawn & Tractor, Apr 21, 2008.

  1. Albery's Lawn & Tractor

    Albery's Lawn & Tractor LawnSite Bronze Member
    Posts: 1,674

    There's a guy I know that him and his wife have a small time lawn biz. They're good people the guy seems like a very hard worker, and so does his wife. The reason why I'm thinking about doing this is for a couple of reasons. One, it is impossible to find decent help here, I pay way more then others do and they still don't want to show up or do a decent job. Two everyone in town is doing lawn care now so it is hard to pick up accounts.

    So I am thinking if he brings over his accounts (1/3), we use my equipment, I bring 2/3 of the accounts, maybe offering a 65/35 split on the net income. Say $10K Gross, minus $2K in expenses, leaves $8K $5200 me and $2800 him, and he would have no expenses. Even thinking about offering a salary of say $300 guranteed per week.

    I just think that if the other person working has something at stake they will do a better job as well as push for new business. In the past I have been having to turn work away because I can not find help.

    If you guys have another idea for me to try please let me know.
     
  2. bobw

    bobw LawnSite Senior Member
    Posts: 807

    OK, so you've posted all this. I can read it and understand why YOU want to do the deal. Why would HE want to do it? You obviously plan on being the boss and running things. So, why would he want to be your employee and not his own boss?
     
  3. Albery's Lawn & Tractor

    Albery's Lawn & Tractor LawnSite Bronze Member
    Posts: 1,674

    His wife just enrolled in Nursing school and will be gone 4 days a week, so he has no help. He also wants to grow but is very limited due to equipment (all homeowner stuff), and doesn't have the money to do a decent advertising campaign which I have already started mine.
     
  4. N.H.BOY

    N.H.BOY LawnSite Bronze Member
    Posts: 1,604

    I think this would be O.K. for the RIGHT person. You might have to tweak it alittle, because I'm sure he would want more. I like the idea, he get's no overhead and no gas and equipment. What would he write-off come tax time? $300 bucks a week on top of gross per week? Is that all winter? 52 weeks? I don't know maybe someone else can chime in on this, because it sounds pretty interesting
     
  5. kleankutslawn

    kleankutslawn LawnSite Bronze Member
    Posts: 1,185

    can u give a little more info
     
  6. Albery's Lawn & Tractor

    Albery's Lawn & Tractor LawnSite Bronze Member
    Posts: 1,674

    Like what????
     
  7. Albery's Lawn & Tractor

    Albery's Lawn & Tractor LawnSite Bronze Member
    Posts: 1,674

    My numbers are just estimates as I am not sure what he charges or makes. Heck if he only charges $25 a yard for bi-weekly then i wouldn't be interested. We talked briefly about it and I told him to show me on paper what he does per month gauranteed (Contracts). I figured we would pay our selfs $300 each per week, Pay his wife maybe $50-75 per week (plus a comission) to simply go out and advertise for us. We currently work Full Time for 8 months but could easily turn it into 12 with going after commercial properties. I had to turn down 2 $25K contract offers simply because I wasn't sure I would be able to find a dependable helper.
     
  8. supercuts

    supercuts LawnSite Silver Member
    Posts: 2,785

    $300 a week??? if he had 10 lawns @$30ea that would have been $300 a week! my guy took home nearly $500 last week. and you pay the most in your area?? no wonder why you cant find good help. this doesnt sound like a partnership but you buying out and offering a job. sounds good for you bad for him.
     
  9. Albery's Lawn & Tractor

    Albery's Lawn & Tractor LawnSite Bronze Member
    Posts: 1,674

    But I was also offering 35% of Net profit, so it would be more like $800 or more per week.
     
  10. lifetree

    lifetree LawnSite Fanatic
    Posts: 5,370

    Very astute question ... congratulations !!
     

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