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 online now
Administrator
 
Join Date: May 2003
Posts: 36,395
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 online now
Administrator
 
Join Date: May 2003
Posts: 36,395
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: 8
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 online now
Administrator
 
Join Date: May 2003
Posts: 36,395
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
30 Inch Push Mowers Pros...
Billy Goat
06-27-2013 08:07 PM
Today 04:50 AM
by Billy Goat
25 6,406
These are the days on...
ExtremeLawncareServices
03-22-2014 09:12 AM
Yesterday 08:12 PM
by ExtremeLawncareServices
122 8,533
This sucks...
Matther777
09-18-2014 04:56 PM
Yesterday 08:02 PM
by ExtremeLawncareServices
11 566
Trying something new,...
ExtremeLawncareServices
09-21-2014 09:07 PM
Yesterday 07:35 PM
by ExtremeLawncareServices
3 187
Hello from CNY
arazucontracting
Yesterday 06:07 PM
Yesterday 06:07 PM
by arazucontracting
0 53
Kohler command carb...
ExtremeLawncareServices
09-21-2014 03:09 PM
Yesterday 04:52 PM
by Steve
4 214
Not sure, but anyone do...
SnowRemoval2k14
Yesterday 12:10 AM
Yesterday 04:49 PM
by Steve
1 162
Tribulations of working...
stevef1201
09-13-2014 08:37 AM
Yesterday 04:45 PM
by Steve
9 630
Mulching beds
Bradcook21
09-21-2014 07:43 AM
Yesterday 04:43 PM
by Steve
3 238
Replacing a Shindi T-27
Dan Tanner
09-13-2014 12:59 PM
Yesterday 04:36 PM
by Steve
3 628
Scag turf tiger hydrolic...
ExtremeLawncareServices
09-04-2014 10:55 PM
Yesterday 04:35 PM
by Steve
12 989
2014 Gie-expo
ExtremeLawncareServices
08-19-2014 11:22 PM
09-21-2014 09:23 PM
by ExtremeLawncareServices
3 962
Mowing 7 acres
avetslawncare
08-31-2014 04:24 PM
09-19-2014 03:29 PM
by acrajchel
6 1,171
snowplowing
jshak40
09-01-2014 07:20 AM
09-19-2014 11:49 AM
by Steve
23 1,563
Looking for feed back on...
ExtremeLawncareServices
09-17-2014 08:38 AM
09-19-2014 08:17 AM
by ExtremeLawncareServices
9 568
Lowballers scrubs &...
Darksteel
01-13-2014 07:35 AM
09-18-2014 06:32 PM
by Northwoods Outdoors
58 6,967
Hello from upstate NY!
A&MLawn&Snow
09-18-2014 11:19 AM
09-18-2014 04:10 PM
by Sprinkler Buddy
2 420
Price to apply fertilizer
SS.Lawncare
09-15-2014 11:10 AM
09-18-2014 01:16 PM
by Steve
9 679
Trailer tires
J.A.S.LawnService
09-01-2014 10:17 AM
09-17-2014 09:57 PM
by curts lawn care
4 1,070
new to the forum
SGlawncare
09-16-2014 11:20 PM
09-17-2014 08:29 PM
by curts lawn care
3 493
Help With Snow Blowing...
Robertf31
09-13-2014 10:55 PM
09-17-2014 12:34 PM
by Steve
11 834
Non-Stop Summer?
SouthallMowing
09-14-2014 10:51 PM
09-17-2014 10:48 AM
by stevef1201
6 619
Poll - net income
Dan5082
11-15-2010 08:08 PM
09-16-2014 04:44 PM
by jrs.landscaping
12 3,355
Getting lowballed!
PineHillLawn
06-27-2012 07:23 AM
09-16-2014 01:25 PM
by jrs.landscaping
24 5,064
Compare this summer to...
Steve
09-03-2014 12:52 PM
09-16-2014 11:20 AM
by Hanks Lawn Care Services
15 1,269
thinking about throwing...
veteranslawncaresystems
09-09-2014 10:31 PM
09-15-2014 03:41 PM
by Steve
12 944
Hello
Robertf31
09-12-2014 10:34 PM
09-15-2014 03:17 PM
by Steve
2 530
Newbie......Again
Jibber
09-13-2014 12:17 PM
09-15-2014 02:54 PM
by Sprinkler Buddy
2 634
need help with starter...
GoGreenerKS
09-12-2014 04:23 PM
09-15-2014 02:25 PM
by Steve
3 548
Brake job!
kslawn
08-30-2014 07:49 AM
09-15-2014 02:16 PM
by Steve
12 1,274
Hello
jawnebgoode
08-28-2014 08:37 PM
09-15-2014 02:15 PM
by Steve
3 1,036
Employee uniforms
Gerardo_Landscape
01-21-2014 11:11 PM
09-15-2014 02:12 PM
by Steve
5 1,155
Greetings from the north
Northwoods Outdoors
09-13-2014 08:55 AM
09-15-2014 02:07 PM
by Steve
1 519
darleneh
darleneh
09-15-2014 12:33 PM
09-15-2014 02:07 PM
by Sprinkler Buddy
1 533
My 1st bid
WesleySnips
06-11-2014 03:13 PM
09-15-2014 02:05 PM
by Steve
29 1,950
New Aerator
Chaz
09-09-2014 11:43 PM
09-15-2014 01:50 PM
by Steve
9 776
Yearly contract Pricing
jrob0691
08-21-2014 08:57 AM
09-15-2014 01:23 PM
by stevef1201
8 1,443
getting ready to start
calebmoss
05-23-2011 09:35 PM
09-11-2014 12:21 PM
by Steve
34 11,434
Stihl pull cord replace
SGL1
09-03-2014 09:22 PM
09-10-2014 12:25 PM
by Steve
9 947
Softball field
kslawn
08-15-2014 09:28 AM
09-10-2014 12:16 PM
by Steve
18 1,711
Lawn Route Templates
Landscaper1165
08-30-2014 01:52 PM
09-09-2014 08:05 PM
by Landscaper1165
4 1,202
New truck and trailer...
Johnny Rocket
05-14-2012 03:41 PM
09-09-2014 07:23 PM
by Matther777
18 6,766
What gets you bad press?
Steve
09-09-2014 11:48 AM
09-09-2014 07:21 PM
by Matther777
2 644
Signs on your snow plow?
Steve
01-15-2007 01:07 AM
09-09-2014 11:42 AM
by Steve
19 6,393
Exmark Lazer Z S-Series...
BLC7
08-22-2014 10:18 AM
09-08-2014 08:08 PM
by avetslawncare
12 1,485
New to the business
flamingyouth87
09-05-2014 11:52 AM
09-08-2014 11:55 AM
by Steve
3 863
Hello from Ohio
kurtwin
08-28-2014 05:06 PM
09-08-2014 11:51 AM
by Steve
7 1,166
Facebook
element009
03-23-2011 08:36 AM
09-07-2014 07:35 AM
by avetslawncare
24 7,936
Help pricing cut down 7...
Bradcook21
08-26-2014 11:17 PM
09-06-2014 02:09 PM
by Bradcook21
8 1,256
billing matters
sbuchanan8154
09-05-2014 09:56 AM
09-05-2014 03:00 PM
by Steve
3 838
» Popular Tags
2wd apartment complex article marketing bid blades charge christmas lighting collections collections subcontractor commercial customers decorating ditches employee problems exmark ferris fundraiser georgia gopherhaul grass gravely growing a lawn care business hardscapes holiday lighting how much to charge installation kawasaki landscape services lawn lawn care lawn care business podcast lawn care business seo lawn care business show lawn care business website lawn care business website seo lawn care seo lawn care website lawn care website seo leaf lighting brass outdoor lights marketing mow mulch new buisness past due podcast promotion pto redmax running a business savannah scag schedule seo small engine repair snow sprayer starting a business steep lawns stihl sulky theft of services top dresser toro trimmer rack truck new used landscape turfgrass consulting walk behind walker won't return
Powered by vBadvanced CMPS v3.1.0

All times are GMT -5. The time now is 05:05 AM.


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

All times are GMT -5. The time now is 05:05 AM.

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