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General Business Discussions A place to talk about general business discussions.

Is this truly worth it in the long run


General Business Discussions

A place to talk about general business discussions.
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  #1  
Old 03-26-2006, 02:22 PM
UnitedEnvironment.com
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I just had a conversation with my father about a contract for a retirement center. He is placing a bid on the place this friday. The man in charge of reviewing the bids is a close friend of my uncle. Now if my father gets the account he wants me to take it and do the maintenance. The account would require 4 days of straight mowing, and 2 days of extras, such as mulching, pruning, seasonl flower arrangements, etc. Of course The Landscaper would continue, but I would have to move, the location of this place is approx 2 hours from where i live.
So the pros
6 days a week steady work, if he gets the contract, I probably wont have to worry about losing it till the guy dies

dad would be buying all the machinery needed, trucks, etc.

uncle would be supplying a crew

Im told that the money would be very well worth it

now the cons
some of you know the situation between my father and I, when it comes to business we seriously clash.
To take this job means, he is subcontracting it out to me, and technically I would be answering to him again in a way. The check would be coming form him each week.
I would be on a salary, which, the place would be under a contract so a set amount would be sent a month anyway, but he is avoiding telling me how much its really worth.
I know its worth at least $100,000 a year, i just dont know how much more.
Now he would take whatever number out of the contract each month, (which im fine with him taking a set amount to pay himself back for the machines, even with a small amount of interest, but after that, I have a problem with him taking say 40 % of the contract, when he isnt doing anything.) and he wants everything done his way. Now are ways are similar regardless when it comes to quality of work. I worked with him most of my life, so his methods of lawn maintenance are mine, the differences are in how we run a bussiness, he doesnt, i do.
On friday I will find out exactly what this is going to be worth to me financially. After that I have to decide.
I just dont know if Im giving up my freedom by taking this.
How would you handle this situation?
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  #2  
Old 03-26-2006, 05:45 PM
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I guess that it really comes down to the relationship with your father. I know that if my father was in a situation like this I would jump all over it, because I know that he is good for his money and always looks out for my brother and I.

But, I would personally look at the property. Figure out how much you think it's worth to do. I would figure out two costs: one is how much you think it would cost to do it with equipment (imagine that you actually own the equipment and are charging based on that), and the second way is to figure out how much time it would take you without the cost of the equpiment (so figure an hourly rate). Once you come up with those numbers I think that it would be easier to figure out exactly how much you should get paid, and how much your father should get paid.

An important thing to remember is that he is sticking his neck out on the line for the equipment, but also remind him that you are his saving grace because if you walk away he is screwed in regards to someone doing the work
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Old 03-26-2006, 10:09 PM
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Hi UnitedEnvironment.com,

What I don't like about the idea is that this is a very big chunk of your weekly time dedicated to one customer. When you do that, this one customer can make a huge difference in your company's future. What if they are bought out by someone else. What if they go under. What if........
Now do you want that much of your future tied to this one company? Or would you rather spread the risk out to many customers.
Could you find the same growth (possibly slower) by going out and finding customers yourself?

These are my concerns.

What's your view on all this?
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Old 03-27-2006, 12:11 AM
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well i completely agree on the risk
I plan on keeping all my accounts up this way, and my partner on unitedenvironment will be taking care of all the chemicals, and aiding me on the maintenance, so I do not plan on spending all of my time there. Im not worried about the work, its being back in business with dad thats got me in a noose
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Old 03-27-2006, 12:31 AM
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Could you back out of it if it becomes too difficult working with your father?

Maybe you could set up some agreement ahead of time about this? To prevent a blow out?
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Old 03-27-2006, 08:11 PM
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Being commited to one property has it pros and cons

Pro
1. You only have to worry about one property all year long

Con
1. You only have one property to worry about all year long
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Old 03-27-2006, 11:04 PM
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well, i plan on having a long discussion with him regarding the matter friday.

by the way
i like the new color scheme
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Old 03-28-2006, 01:42 AM
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Let us know how it works out.

Would you ever consider getting it all in writing? I know it's with your father and all, but would this help lay down the potential problem area and show the resolutions you came up with, so as to avoid fights over it in the future?
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Old 03-28-2006, 11:06 AM
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i wouldnt do it if it wasnt in writing, i dont trust him
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Old 03-28-2006, 07:28 PM
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well if you don't trust him, then I personally would not do it.
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