Business Consolidation

Discussion in 'Business Operations' started by Infinite, Feb 12, 2006.

  1. Infinite

    Infinite LawnSite Member
    Messages: 100

    So heres the thing I got an offer from another lawn care business owner/friend to consolidate and wanted your opinions on what to do? Heres the story: Last year was the start up year of my lawn care business, previous to that I worked for the guy that wants to consolidate for 5 years. At first working for him he was involved everyday. As the years went on he became less involved and put the work more on me. By the 5th year I was running everything by myself everyday, while he was a full time paramedic. This got old because I had no reliable help, and I was responsible for everything while my boss was making cash off me. After the year was finished out I told myself there is no way I'm going back and working for him. This led me to starting my own lawn care business. Last cutting season was my first year in business on my own. I did fairly well ending up with 16 accounts and grossing about 14,000. I enjoyed working for myself, really enjoyed it, u can't beat being ur own boss. So now my friend and old boss is calling me and wanting to go talk to a lawyer about consolidating our businesses. The only way I can possibly see myself doing this is if it is 50/50. He is not well established cuz he doesn't market but I am getting to be established in my area. My equipment consists of a year old Redmax tirmmer, year old Exmark Metro 48 inch HP, a Redmax Blower, a 1994 Ford F-150, and a small trailer. This year I plan on buying a 14 foot trailer and an Exmark rider. His equipment consists of a 14 foot trailer with a jungle jim caddy, a 2000 52 Bobcat rider, a 2003 Scag 52 Hydro WB, and a 1998 48 John Deere Fixed Deck WB. He hauls this with a 1999 4X4 Chevy Silverado. He has 18 accounts and a 16 acre cemtary. Should I give him a counter offer? If so, what? Also I know I will be working more than him so how should we get paid? A fixed hourly income?
  2. smarino21

    smarino21 LawnSite Senior Member
    Messages: 345

    to tell you the truth thats not a bad situation for either of you. Tell him this, depending on whos got more money. Take all the good equpt that runs good and **** and keep it and the junk sell it buy a few good things that will make u money and tell him this we need this this and this. i will *orhim* will put up the money to buy everything and advertise. Then tell him you get 70% of profits.
  3. DiscoveryLawn

    DiscoveryLawn LawnSite Senior Member
    Messages: 408

    Partnerships are a pain in azz. I would not do it. I don't understand why you would want to share ANY portion of the proceeds from YOUR work with someone that is likely to be absent most of time. You already own your own equipment and have a small route started. I would continue to build YOUR route while saving money to purchase more equipment when you need it. I suggest you simply be patient and continue to operate as a solo. Before you know it you will have more work than you can handle and plenty of money to hire help. The key is IT WILL ALL BE YOUR MONEY. payup
  4. TurfProSTL

    TurfProSTL LawnSite Senior Member
    Messages: 693

    :rolleyes: Agree. You grew to his level in one year on your own. You don't need him and its apparent he thinks he needs you. Offer to buy his accounts if you want them. Maybe give him a percentage of the income off of them until they are yours.....
  5. walker-talker

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

    You did good on your own and I would keep it that way. You have 16 accounts in one year and he has 18 accounts (and a cemetary) in 5 years. I would consider buying him out, but not a partnership.....especially not 50/50. One person has to have the controlling half.

    HOOLIE LawnSite Gold Member
    Messages: 3,981

    I don't see the second time around being any different. Really...the guy wants you back because he knows you can run the show while he goes off and does other things. I'd stay away from partnering with this guy.
  7. Infinite

    Infinite LawnSite Member
    Messages: 100

    Yeah the thing is though he's a good friend, we have always got along well, and the big thing is we would both be working towards the same goal-getting as big as we possibly can. Also I live in a different area then him and it would connect our routes. One more thing is I wouldn't be by myself running a business nor would he. We are knowledgable about business in different areas my aspect being marketing. Just a few things thrown up in the air.
  8. Infinite

    Infinite LawnSite Member
    Messages: 100

    Also I don't mind running the show, but I like to have help with me to bullshit with in the truck on the way to the jobsite and also to be there in case of accident.
  9. TurfProSTL

    TurfProSTL LawnSite Senior Member
    Messages: 693

    Ooops, I thought you were asking serious business questions.....

    By all means, hang out with your buddy if thats what you want to do.
  10. Infinite

    Infinite LawnSite Member
    Messages: 100

    No man u don't understand I'm not getting into it with u, we would run seperate crews in different areas, so no I wouldn't be hanging out with my buddy. We would keep both trucks, trailers, and equipment.

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