Brother wants to become my partner.

Discussion in 'Business Operations' started by Hitsy, Oct 4, 2005.

  1. Hitsy

    Hitsy LawnSite Member
    Messages: 8

    My brother wants to become partners with me. I've had my business for five years now. We are having a difficult time in deciding what he should pay me to buy into the existing business. We plan to expand after the deal. We both have trucks, and I have all the equipment that I need. He will be purchasing a zero turn. Does anyone have some ideas on what would be a fair deal? Thanks.
  2. The landscaper

    The landscaper LawnSite Senior Member
    Messages: 845

    Add up the equipment you already have and have him pay you for half of it. Decide what your accounts are worth. And dont forget about your time you put into the business to get it where it is. Charge something for that time.
  3. Itsgottobegreen

    Itsgottobegreen LawnSite Silver Member
    Messages: 2,177

    Personally family and business is never a good thing. He sees your success and wants a piece of it with out doing anything. It would be better to let his start his own. Just give him help to get it started.
  4. mrusk

    mrusk LawnSite Gold Member
    Messages: 3,260

    say no

  5. Varsity L&G

    Varsity L&G LawnSite Senior Member
    Messages: 418

    My vote is to help him get started on his own.
  6. walker-talker

    walker-talker LawnSite Platinum Member
    from Midwest
    Messages: 4,771

    I would suggest this before taking on ANY partner. Do you feel you NEED a partner?
  7. daveintoledo

    daveintoledo LawnSite Silver Member
    Messages: 2,587

    partnerships are bad enough, let alone with a family member,,,, your asking for alot of trouble
  8. Reliable Lawn Care

    Reliable Lawn Care LawnSite Member
    Messages: 136

    Like the above answers, "Just Say No". Yes, help him get his own thing started and maybe get him to offer something you are not, in that way you can try to send business to each other. Each get your specialty down, and move forward. A partnership, without a doubt, will start moving you both backwards eventually. I have been approached by both friends and family and told them no. Some have worked for me, and that has turned out ok to this point. Good Luck in whatever your decision is, because as the owner of the company, you have to make the final decision!
  9. Mdirrigation

    Mdirrigation LawnSite Gold Member
    Messages: 3,792

    What do you value more your relationship with your brother or money ?
  10. LB1234

    LB1234 LawnSite Gold Member
    Messages: 3,208

    I disagree with almost all of these posts.

    My brother and I have been partners now (50/50 split) for going on 6 years. It is a win-win situation for us. I would highly recommend it, of course this is with our situation and under our circumstances.

    Yes, we definately have our differences and get into our arguements about how things should get done. However, we have a great relationship...We both understand that business is business and pleasure is pleasure. We have a business plan and we BOTH placed our signatures on it. Any changes must be approved through the both of us. We have never gotten to a point were we can't agree on anything (knock on wood).

    We are both responsible for the actual labor. However, I'm responsible for the office/business end (taxes, invoicing, quotes, etc.)and he is responsible for all the equipment maintance/repair.

    I like the fact that I can go on vacation with my family for an extended time and know that my business is in good hands. Same goes the other way. Time off is much easier with a trusted partner. He gets sick I get sick we really don't have to worry about Aunt Millie calling to ask were we are or what a crappy job our employees did cause an owner wasn't present. Heck, when we were really busy in late spring this year one of us was able to take an employee to do the weekly mainteance accounts while the other was able to take an employee to the landscape job.

    Remember, you both must understand that this is a business and who has control of what and who has final say in certain matters.

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