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Discussion Starter · #1 ·
I am just curious who is currently partnered up (legally / professionally) with another non-family member.

I ask this becuase my experience STINKS!
 

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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.
 

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Discussion Starter · #3 ·
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".
 

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OnMyOwn said:
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".
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.
 

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#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.

Nosmo
 

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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.
 

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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.
 

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Discussion Starter · #9 ·
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
 

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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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I have had a business partner for 13 years. He is in charge of his part of the business (ie maintenance of equipt. & trucks, retirement plans, and buying supplies) and I do mine (office work, customers, & scheduling). It has worked great. We both make decisions together about employees, good and bad :rolleyes: We both run our own mowing routes and I keep the landscape crew occupied.

I highly recommend it if you can find the right person. Sure has made my life much easier and allows for more personal time.
 

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Couldn't you have hired an employee to do his job at a smaller expense? It's o.k. if he's a friend and you don't mind sharing profit 50/50 and maybe you couldn't find someone with his expertise. I'm just thinking bottom line.
 

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ProLawns said:
Couldn't you have hired an employee to do his job at a smaller expense? It's o.k. if he's a friend and you don't mind sharing profit 50/50 and maybe you couldn't find someone with his expertise. I'm just thinking bottom line.
very doubtful

an employee will never run the business the way an owner will
 

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My company is a partnership.We started together 8 years ago. Things work out well for us. Some of the biggest companies in the U.S.A. were started as partnerships. Ever heard of Apple,Microsoft,Starbucks, etc.,etc..
 

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Quikcut said:
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.
Are any of them different from this above rule? In almost 40 years, I've met VERY few people in this world who are not like what you just described, thou of course they ALL claim otherwise.
 

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

I ask this becuase my experience STINKS!
I'm sorry to report that I had to eliminate my own brother from our partnerhsip last week. Little bastard just doesn't like to work. He's rather clean his pool.
 

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You may also want to look into other forms of partnerships such as a limited partnership or a limited liability partnership. Do an internet search to get the details. Good luck.
 
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