The dreaded partner

Discussion in 'Lawn Mowing' started by OnMyOwn, Jul 23, 2005.

  1. OnMyOwn

    OnMyOwn LawnSite Senior Member
    Messages: 372

    I am just curious who is currently partnered up (legally / professionally) with another non-family member.

    I ask this becuase my experience STINKS!

    IN2MOWING LawnSite Member
    from Zone 6
    Messages: 66

    Im on my way to doing it.

    I know what everyone is going to say but we have both sat down and poured over every detail and came to the conclusion there were more pros then cons.

    I will be running the mowing side and he will be running the chemicals. When one of us slows down we help each other out.
  3. OnMyOwn

    OnMyOwn LawnSite Senior Member
    Messages: 372

    Been there...done that, and it looked great on paper. I never thought I would be betrayed by my buddy. Business changes some people. Please be careful and cover all legal bases. Create an authorized exit plan during "good times" and "bad times".

    IN2MOWING LawnSite Member
    from Zone 6
    Messages: 66

    We both agreed that if something happens we will leave with what we came into the business with and the rest will be split accordingly. Contracts are being drawn up and all the legalities will be covered. I think we can make it work and if not...its not the end of the world.
  5. Nosmo

    Nosmo LawnSite Bronze Member
    Messages: 1,216

    #1 rule in going into partnership -- know your partner. You are responsible for any business decisions he makes regardless if you are aware of them or not. This one of the bad points of a partnership.

    Here is a good one. Lending institutions consider a partnership the better risk in lending money (for equipment or any business needs).
    Why ? Because there are now at least two people ( or however many partners there are) to collect from if the loan is in default.

    You better have a good accountant to keep your financial records straight. At the end of the year a partnership pays no income taxes but reports all income and expenses to the IRS and the final figure either net gain or loss (each partner's share) is to be reported on the individual's 1040.

    I used to do Income Taxes for about 10 years and had many types of businesses I did. Farms, Self Employed People, Partnerships and
    just everyday folks . I am really rusty on the subject of taxes because I gave up my tax business back in 1990.

    I don't want to discourage you but I just wanted to let you know what to look at concerning the future.

  6. Quikcut

    Quikcut LawnSite Member
    Messages: 8

    My experience has taught me to find a partner that has yours and his well-being in mind not one out only for themselves. Money as mentioned previously changes people and when times get slow, a selfish partner when quickly burn you.
  7. Oldtimer

    Oldtimer LawnSite Bronze Member
    Messages: 1,459

    If I robbed a bank with a partner, when we got to the street I would shoot him.

  8. Shuter

    Shuter LawnSite Bronze Member
    Messages: 1,171

    Last year I was in the process of merging 2 companies. I soon realized that it would not work. I was once told that partners are for dancing, not business.
  9. OnMyOwn

    OnMyOwn LawnSite Senior Member
    Messages: 372

    If I robbed a bank with a partner, when we got to the street I would shoot him. - Old Timer

    This may be the quote of the year!!! :D
  10. ProLawns

    ProLawns LawnSite Senior Member
    Messages: 476

    I don't see how a partnership can be beneficial. If you're not making profit off your partner then there's no benefit in having one. Same goes for him. You're trying to make profit off of him and he's trying to make profit off of you. Your profits would compete or cancel out. Why not your business do the mowing and his business do the chemicals. Two seperate businesses. That way if it doesn't work out you're already seperate entities.

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