Lawn Care Business Forum Lawn Care Business Book Lawn Care Business Blog Lawn Care Software
Home Forum Contract & Flyer Templates Blog Software Videos Podcast Calculators / Estimators Store Mower Review Design It Yourself Lawn Business School

Go Back   GopherHaul Landscaping & Lawn Care Business Marketing Forum > Lawn Care, Landscaping, and Property Management Forums > General Talk

General Talk If it doesn't fit anywhere else, post it here.

Question about "business partners"


General Talk

If it doesn't fit anywhere else, post it here.
Reply
 
Thread Tools Search this Thread
  #1  
Old 07-29-2007, 12:41 AM
JODY84
Guest
 
Posts: n/a
Default

Hello everyone! I have learned so much from this site so far and we are very excited to get our business started soon!

Thanks for everything!

BUT-

I'm a bit concerned about the whole business partnership issue. You see, my husband and I have 8k that we are putting into the company, everything from equipment to the insurance. We are paying for everything. But he has a friend who has a lot of experience in the landscaping biz and he knows clients who would be intrested in our services. Anyways, my husband wants him to be our business "partner" but I really don't feel the need to have a partner. He plans to break down the profits as follows:

50 % profit goes back into company (more equip, advertising, etc)

25 % profit to my husband and I

25 % profit to our so called "partner"

Does this seem fair to you?

What would you do in our situation?
Reply With Quote

Stop guess-timating. Learn how to estimate and make money! $$$
Mow Time Estimator Lawn Care Price Estimator Mulch and Topsoil Calculator Snow Plow Estimate Calculator


  #2  
Old 07-29-2007, 02:55 AM
Steve's Avatar
Steve Steve is offline
Administrator
 
Join Date: May 2003
Posts: 38,003
Rep Power: 10
Steve has disabled reputation
Default

Lawn care business tipsLawn Care Business Book
Quote:
Originally Posted by [b
Quote[/b] ]You see, my husband and I have 8k that we are putting into the company, everything from equipment to the insurance. We are paying for everything. But he has a friend who has a lot of experience in the landscaping biz and he knows clients who would be intrested in our services. Anyways, my husband wants him to be our business "partner" but I really don't feel the need to have a partner.
I don't think you need a partner for this. What kind of experience does this partner have that he is bringing to the table?

Quote:
Originally Posted by [b
Quote[/b] ]50 % profit goes back into company (more equip, advertising, etc)

25 % profit to my husband and I

25 % profit to our so called "partner"

Does this seem fair to you?

What would you do in our situation?
I think most businesses shoot for 5 or so, maybe a little higher for marketing expenses. Others may disagree with me and want to spend more but I'd say that is the target.

What other equipment would you need through out the year? I'd try to keep as much money as I could and not spend it. If I needed a larger piece of equipment for a project, I would rent it. Troy may jump in here, but he will tell you how he went out and spent a lot of money on equipment when he got going. That was 5 + years ago? and he is still trying to get over that.

What are you foreseeing you will need to spend 50% on?
__________________
- Subscribe to my Lawn Care Marketing Blog Feed and get daily tips sent to you. Free!
Download your Free trial of Gopher Lawn Care Software.
Reply With Quote
  #3  
Old 07-29-2007, 06:43 AM
S.P.Martin Lawn Care
Guest
 
Posts: n/a
Default

I have a bit of experience with having a partner. My first mowing & landscaping business was a 50/50 split with responsibilities delegated to our particular strong points. It went well for the most part. We went into it as best friends and still are, even after 20 years, a not so common ending to such a partnership.

If I were to take on a partner again, everything will be in writing, no handshake agreements. Money spent with an attorney is well spent in this instance. Cover all the bases as only a legal mind can.

I may be wrong, but a couple of reasons for taking on a partner could be based on some insecurities you may have in your endeavor. Its reassuring to have somebody on board that has been there, done that, to avoid the pitfalls common to the business, or any other business for that matter.

Capital is always an issue, especially start up costs. Again, having another on board can help raise the needed cash, but remember, its very possible that an experienced partner could structure payback to his overwhelming advantage w/o you realizing it.

You are probably correct in questioning the need to have the "friend" on board. Is this person a friend or an acquaintance? There is a big difference in the quality of the relationship, especially over the long term and when the going gets tough. Will he bail out, sue you, damage what you work hard for?

You are on the right tract by having a plan and asking questions. Everybody experiences trepidation in getting off the ground. Everything I have read so far from you points in the direction of success.

Be conservative in your spending, rent instead of buying seldom used equipment, and ALWAYS ask questions.
Reply With Quote
  #4  
Old 07-29-2007, 06:59 AM
Steve's Avatar
Steve Steve is offline
Administrator
 
Join Date: May 2003
Posts: 38,003
Rep Power: 10
Steve has disabled reputation
Default

Quote:
Originally Posted by [b
Quote[/b] ]I may be wrong, but a couple of reasons for taking on a partner could be based on some insecurities you may have in your endeavor. Its reassuring to have somebody on board that has been there, done that, to avoid the pitfalls common to the business, or any other business for that matter.
I think you totally nailed it here. I give you 5 gold stars for this comment I agree this is why most new business owners go in with a friend. Jody, remember you and your husband are already going to be partners on this, taking in a third person is going to make it even rougher. That is my personal opinion though.

I don't think it is worth taking on another person to partner up with for their 'connections' or 'experience', when you have access to forums like this where others can give you their insight.

I can remember years ago, me and my friends would talk about businesses all the time and there was this feeling like if you want to go in on this, I will too. It's like we all needed each other to reaffirm that yes this was a good idea and it was going to work. If my friend felt the same as me, then it must work right? That was the mind thought at least.
__________________
- Subscribe to my Lawn Care Marketing Blog Feed and get daily tips sent to you. Free!
Download your Free trial of Gopher Lawn Care Software.
Reply With Quote
  #5  
Old 07-29-2007, 12:23 PM
Little's's Avatar
Little's Little's is offline
Brandon
 
Join Date: Jun 2007
Location: Shasta Lake CA.
Posts: 814
Rep Power: 10
Little's is on a distinguished road
Default

I have never used a partner, I guess because I have always had the ability to foresee potential problems, so I always avoided partners. When I needed any help with something, I would pay a friend to give me a hand for the day.
I would not be able to make it if I could only keep 25% of profits. Working for myself, I get to keep about 75%.
__________________
Northern California
Reply With Quote
  #6  
Old 08-04-2007, 11:39 PM
JODY84
Guest
 
Posts: n/a
Default

Thanks so much for the response! We actually sat down and talked to the other guy and he will just be one of our employees, so I feel much better about that! He's a hard worker no doubt but I didn't think just that should make him a partner but more as a top employee or something.
Reply With Quote
  #7  
Old 08-05-2007, 02:46 AM
Steve's Avatar
Steve Steve is offline
Administrator
 
Join Date: May 2003
Posts: 38,003
Rep Power: 10
Steve has disabled reputation
Default

Keep us posted on everything goes. I am feeling better you had that talk too.

I think things will work out better this way.
__________________
- Subscribe to my Lawn Care Marketing Blog Feed and get daily tips sent to you. Free!
Download your Free trial of Gopher Lawn Care Software.
Reply With Quote
Reply

Bookmarks

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is On
Forum Jump

» Recent Threads
  RatingTitle, Username, & Date Last Post Replies Views
New Business Owner
danesdanglas87
07-20-2016 12:31 PM
07-21-2016 05:04 PM
by Steve
2 87
How much to charge for...
jymie
03-31-2013 05:59 PM
07-21-2016 04:55 PM
by Steve
21 5,874
Hi from Long Island NY
Lori22
07-18-2016 02:01 PM
07-20-2016 09:09 PM
by Chilehead
8 149
Hi! I'm Tony from Tampa
Lawnline
07-12-2016 06:47 PM
07-19-2016 04:45 PM
by Steve
5 605
Question about...
Bradcook21
07-18-2016 05:22 PM
07-19-2016 04:38 PM
by Steve
2 95
Hello from Watertown New...
lawnmanrick81
07-19-2016 03:57 PM
07-19-2016 04:11 PM
by Steve
1 47
Gutter Cleaning Tool
DanielThomas
07-18-2016 08:23 AM
07-18-2016 04:36 PM
by Steve
1 80
Starting on a lawn care...
Coco3465
07-16-2016 11:26 AM
07-17-2016 09:20 AM
by Steve
1 108
Aspiring Company Owner
TJ136
07-12-2016 05:12 AM
07-15-2016 02:52 PM
by SC93
6 208
Hi Everyone
JavelinaLawn
07-10-2016 07:29 PM
07-13-2016 02:01 PM
by Chilehead
5 740
Review of our lawn care...
Lawnline
07-12-2016 06:40 PM
07-12-2016 06:40 PM
by Lawnline
0 381
Custom Canopies
JohnsLawnCare
07-12-2016 08:38 AM
07-12-2016 04:14 PM
by Steve
1 255
Spot checked by...
Just for Cuts
06-28-2016 02:34 PM
07-11-2016 03:53 PM
by Steve
4 268
John Deere JS40 issues
Mr. Mow
07-06-2016 01:28 PM
07-11-2016 03:52 PM
by Steve
3 199
Start My Own Business?
mowandblow1980
01-12-2016 07:43 PM
07-11-2016 11:18 AM
by DanielThomas
15 1,736
Rubber mulch...
avetslawncare
06-24-2015 09:28 PM
07-11-2016 09:11 AM
by Chilehead
9 3,283
Firefighter gone Lawn...
Firehouselawn@hotmail.com
03-10-2016 04:50 PM
07-07-2016 05:07 PM
by Steve
11 10,514
I need some business...
Firehouselawn@hotmail.com
07-06-2016 05:42 AM
07-07-2016 05:00 PM
by Steve
4 242
Business Overload
Chilehead
05-06-2016 09:27 PM
07-07-2016 04:53 PM
by Steve
24 1,233
Chemical Applications
acrajchel
06-24-2016 06:44 PM
07-05-2016 12:38 PM
by Chilehead
6 353
Is it too late?
Cpadgett
05-28-2016 09:10 AM
07-05-2016 11:54 AM
by Steve
14 855
3 Applications or 5...
stansg1fresh
02-18-2013 12:02 PM
07-04-2016 09:19 AM
by LawnPerfection
9 1,688
Best Push Mower You Have...
markty
05-14-2016 03:46 PM
07-02-2016 03:41 AM
by markty
27 1,900
Great Arborist Ladder
SGL1
06-04-2016 09:56 AM
06-28-2016 08:04 PM
by mowandblow1980
11 675
Newbie
Jhoell
06-25-2016 03:28 AM
06-28-2016 02:11 PM
by Chilehead
2 257
Say Hello !!!
Steve
03-19-2007 11:18 AM
06-28-2016 11:02 AM
by Brownieboy
1,253 440,147
Hello Everyone
JohnsLawnCare
06-22-2016 11:14 AM
06-28-2016 08:36 AM
by Steve
13 494
Exmark Turf Tracer
acrajchel
02-01-2014 11:34 AM
06-24-2016 07:23 PM
by acrajchel
5 2,322
Powered by vBadvanced CMPS v3.1.0

All times are GMT -5. The time now is 07:04 AM.


(C) 2011 Riggs Publications - Terms of use & Privacy Policy

All times are GMT -5. The time now is 07:04 AM.

(C) 2011 Riggs Publications - Terms of use & Privacy Policy