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((((((((((Is this a good Idea?????)))))))))

Discussion in 'Business Operations' started by Gatewayuser, Dec 21, 2005.

  1. Gatewayuser

    Gatewayuser LawnSite Bronze Member
    Messages: 1,765

    Here my question. My brother who is 24 is going to be a account manager next year for my company, what he will be doing is running a crew or 2 depending on jobs, he will do all billing, phone calling, getting jobs and keeping track of his crews hours and jobs. My office manager will do the rest of the paper work. My brother wants $21.50 pay per hour or a 10% partnership of my companies profit and $15.00 per hour. He also owns a company and I would get 10% of his companies profit if we did the partnership with mine. All I would have to do for his is some paper work. He would be able to get me a whole lot of commercial jobs and he will be getting certified and also getting an applicator lic (I already have both). By him getting 10% he will always try to make my company grow and be very profitable. He has a ton of business knowledge and marketing skill so will this be a good idea and worth the high pay? All and if he was a partner it would save some workers comp cost. Here's the 1 of 2 comps he owns and that I would get 10% of. www.creditbreakthrough.com
  2. JB1

    JB1 LawnSite Fanatic
    Messages: 5,904

    yes , no, maybe, who knows, only you know what your company and brother is capable of.If your going to have a partnership what better than to have your brother..........................
  3. Gatewayuser

    Gatewayuser LawnSite Bronze Member
    Messages: 1,765

    With him I could have so many jobs by next year I would need 10 crews! I guess that could be good and bad, I don't want to grow to fast. I going to talk to my CPA and see what he says too. 10% of his credit company would be nice too, it would give me something to do in the winter when I'm not plowing.
  4. YardPro

    YardPro LawnSite Gold Member
    Messages: 3,570

    talk to an accountant and have him crunch the #'s then decide
  5. walker-talker

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

    Look at the numbers of his two business.....have they progressed over the years and what does 10% equal. Shoot, if he's your brother, why don't you just have him get you all those jobs you want and why must you become partners? Do you really need him on your managerial staff?

    If it came right down to it, I would give him just the $21.50 and hour. What happens if he gets the $15 an hour and 10% and then later quits....do you have to continue giving him 10% of profits?
  6. Gatewayuser

    Gatewayuser LawnSite Bronze Member
    Messages: 1,765

    No he would not get any money if he quit.
    His business is growing like crazy, a lot of people need there credit fixed.
    I was thinking that maybe this year I could give him $21.50 per hour see how it goes then decide if I should make him a partner, that would give time for both businesses to grow. Is that too much to pay per hour for that position. Thanks!:waving:
  7. Coreyb

    Coreyb LawnSite Member
    Messages: 146

    why not 15 per hour and 15 - 20 % of growth. the more you grow, the more he gets. everyone wins
  8. Gatewayuser

    Gatewayuser LawnSite Bronze Member
    Messages: 1,765

    I talked to him today and told him I will only pay him $19.50 per hour and we are both happy with that. Next year I will put him in charge of 2-3 crews and then he will get 10%.
  9. topsites

    topsites LawnSite Fanatic
    Messages: 21,653

    Wait a minute...
    In my company I decide who gets paid, and how much. I had a guy one time, one of his first questions was about pay, he wanted to know how much he was getting paid before he had even started working... I don't mind the question per se, but this guy wasn't happy with a ballpark figure, I told him what that was and it would vary depending on how quickly we got done, but that wasn't good enough, he had to know exactly how much he was getting.

    Needless to say, he didn't last. And, he was a lazy POS stood around all day running off his mouth.

    It's not quite the same thing, but it's along the same lines and I am not afraid to call the bluff. If his business is as good as he says, then why does he want to work for you? Yeah...

    From what I have seen in the past concerning job performance and actual results, nowadays I decide how much an employee gets paid AFTER I see some of their work, and I'm talking a little more than 5 or 10 minutes' worth.
    Thus it came to happen, I have no employees.
    They don't seem to like that.
    But I do.payup payup payup payup
  10. daveintoledo

    daveintoledo LawnSite Silver Member
    Messages: 2,587

    sounds like trouble... what about subing work out to each other, that way you can avoid the partnerships hassle, they hardly ever work out,

    one example on a bigger scale, Tony Packo's in toledo, the family is in court trying to battle out some disagreements from the partnership.... not good for the family, which should come first in my book...

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