I know, never start a business with family or friends. But when they are as excited and committed as I you are about what you are doing and they go out and make a hugh investment in you. How do you not take them with you for the ride. Well I already made it clear, I do not want a partner and why. But I could use the subport and some one looking out for me. So let me run this by you. I will have my LLC or SP and he with his LLC or SP. On pay day I write his business a check. If we have a falling out my assets come with me and his stay with him. Any thoughts or comments please.
To have a business partner or not to have a business partner
- Thread starter Vendetti
- Start date
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The wise says: "If you want to start a partnership, number must be odd; and if you are three, two are in excess....." Good luck
M
RVALUE
Addicted to ArboristSite
Partnerships are like marriage. In many ways, one in particular is that there is nothing better than a good one, and nothing worse than a bad one.
In my opinion, for the slim chance that a partnership works, the parties have to have different contributions towards the same goal. (This could be one contributes the bookkeeping and office functions, and the other runs the jobs, etc.)
Two guys that think alike, get along, and do the same things together will almost never make it.
An exception would be a "limited" partnership where there was an agreement for supplying (capital etc.). But again it falls under the different contributions.
Just my quick thoughts.
In my opinion, for the slim chance that a partnership works, the parties have to have different contributions towards the same goal. (This could be one contributes the bookkeeping and office functions, and the other runs the jobs, etc.)
Two guys that think alike, get along, and do the same things together will almost never make it.
An exception would be a "limited" partnership where there was an agreement for supplying (capital etc.). But again it falls under the different contributions.
Just my quick thoughts.
PinnaclePete
Addicted to ArboristSite
Make it a strageic partnership. What does he have that you don't, and what do you have that he doesn't. Build on each others strengths, not what you have in common. Keep it all about the business.
peregordusmc
ArboristSite Member
I have a business and my friend has his business. He runs his how he wants his ran and i run mine how i want mine ran. He has equipment i dont have and i have some he dont. Whenever we need help on a job we call each other. Work out details on payment to eachother. Whosever job it is, is the boss and calls the shots. Only had one dispute on one of his jobs. I voiced my opinion. He listened to it but said he want to do it an other way. Turned out he shoulda listened a little better but it was his job and his call. We originally talked about being partners but since we started doing it this way, im glad as well as him that we didnt do the partnership. Both have different ideas on what gear to invest in and how to do get certain jobs done. The partnership wouldnt have lasted. But this way is going strong and see 0 problems with it.
MillerTreeMN
ArboristSite Operative
i agree, this day in age you need to keep things separate to an extent.
when i had a pickup, dump trailer and a stump grinder, and ideal "team mate" would be someone with his own business who was a REALLY good climber, and had a chipper and chip truck. id take care of the cleanup while they are climbing, so that part is 50/50. they supply the chipper, i supply the stump grinder. thats pretty much a 50/50 share of responsibility.
if you get into a fight, or someone's life interferes with the business, you walk away, no titles or paperwork to settle.
when i had a pickup, dump trailer and a stump grinder, and ideal "team mate" would be someone with his own business who was a REALLY good climber, and had a chipper and chip truck. id take care of the cleanup while they are climbing, so that part is 50/50. they supply the chipper, i supply the stump grinder. thats pretty much a 50/50 share of responsibility.
if you get into a fight, or someone's life interferes with the business, you walk away, no titles or paperwork to settle.
stihlman95
ArboristSite Operative
run your own bussiness. a partner can turn his back on you and leave you a bad name, do it yourself and do it the way you want and be your own boss. make your own calls. a partner is asking for trouble, i guess it just depends on who you pick. stay by yourself. i run my own bussiness and do great with everything.
MillerTreeMN
ArboristSite Operative
i almost forgot this one-
a friend of mine who owns a landscaping business had a friend of his try to partner up with him. the new guy paid 20-30 thousand dollars to buy into the company, they used the money for equipment. a short time later, the new guy wasnt showing up for work, but was stealing money from the company account too....
a friend of mine who owns a landscaping business had a friend of his try to partner up with him. the new guy paid 20-30 thousand dollars to buy into the company, they used the money for equipment. a short time later, the new guy wasnt showing up for work, but was stealing money from the company account too....
RVALUE
Addicted to ArboristSite
BestTreeService
ArboristSite Lurker
Partners or parasites
http://www.arboristsite.com/members/peregordusmc.htm....this guy has some good advice.
I've been in Tree service for 4 short years.....lovin' it! Very passionate everyday about my carreer. I started like alot of guys.....half ton pick up and a trailer for brush or logs....not even a chipper yet.
I was a good body with tough daily work ethics.....and the first climber I worked with was a very skilled, young, talented climber with alot of rigging skills and experience for the young age of 30. Only problem.....he's "great in a tree....but the problems are out of the tree." He had substance abuse problems which made his scheduling and reliability a problem. I learned alot with him for me first year of work.
After getting my first old one ton dump....Chevy K30 4X4 350 with 4 spd Muncie....nice piece.....I started sub-contracting climbers. Everybody knows it can work good for awhile.....problem still remains the sub contracting climber may not want to be accountable to the partnership....word of mouth partnership like I was working. Well......I found even if I had contracts lined up to do.....the climber may not show or showed up workin' for another guy across town because there was more money. They seemed to like burning their bridges.
As my business and number of pieces of equipment grew....I saw it time to hire men to be legally employed by me....payroll, workers comp, etc. I had previously advertised for a partner to share responsibilities and skills with but no luck with the right guy.
I know partnerships work great for some....but ya' gotta go into knowing what you both expect from each other.....and what you won't put up with also.
Best of luck to ya'
Lew
http://www.arboristsite.com/members/peregordusmc.htm....this guy has some good advice.
I've been in Tree service for 4 short years.....lovin' it! Very passionate everyday about my carreer. I started like alot of guys.....half ton pick up and a trailer for brush or logs....not even a chipper yet.
I was a good body with tough daily work ethics.....and the first climber I worked with was a very skilled, young, talented climber with alot of rigging skills and experience for the young age of 30. Only problem.....he's "great in a tree....but the problems are out of the tree." He had substance abuse problems which made his scheduling and reliability a problem. I learned alot with him for me first year of work.
After getting my first old one ton dump....Chevy K30 4X4 350 with 4 spd Muncie....nice piece.....I started sub-contracting climbers. Everybody knows it can work good for awhile.....problem still remains the sub contracting climber may not want to be accountable to the partnership....word of mouth partnership like I was working. Well......I found even if I had contracts lined up to do.....the climber may not show or showed up workin' for another guy across town because there was more money. They seemed to like burning their bridges.
As my business and number of pieces of equipment grew....I saw it time to hire men to be legally employed by me....payroll, workers comp, etc. I had previously advertised for a partner to share responsibilities and skills with but no luck with the right guy.
I know partnerships work great for some....but ya' gotta go into knowing what you both expect from each other.....and what you won't put up with also.
Best of luck to ya'
Lew
treeman82
Addicted to ArboristSite
It's very rare that you ever hear about partnerships working out. I had a partner a number of years ago and it was a very short lived deal. I wanted to work, he wanted to fish.
There's a local landscape company that recently went through some ownership changes. 2 employees bought the owner out. They have been at it for 4 years now I think. 1 partner is a good guy, laid back, and easy to deal with, the other is a prick. I've never seen any arguements personally, but I honestly can't see this business lasting long-term as a partnership.
There's a local landscape company that recently went through some ownership changes. 2 employees bought the owner out. They have been at it for 4 years now I think. 1 partner is a good guy, laid back, and easy to deal with, the other is a prick. I've never seen any arguements personally, but I honestly can't see this business lasting long-term as a partnership.
CRThomas
ArboristSite Guru
O partners
I have run my business by my self have one retired part time help he's 60 y/o we work at the same speed I have had several people wanting to be my partner but they have not a thing to put in to the business. They have trouble with there business. Before you take a partner look at there back ground. See what there import things in life are. Family beer hunting fishing sports women race cars or work. You could not pay me to have a partner. Me and my helper ook at each and we say are we ready to qit for the day and we do but we finish the job. I have yet to see a partner ship last in the wood business. Later
I have run my business by my self have one retired part time help he's 60 y/o we work at the same speed I have had several people wanting to be my partner but they have not a thing to put in to the business. They have trouble with there business. Before you take a partner look at there back ground. See what there import things in life are. Family beer hunting fishing sports women race cars or work. You could not pay me to have a partner. Me and my helper ook at each and we say are we ready to qit for the day and we do but we finish the job. I have yet to see a partner ship last in the wood business. Later
D&B Mack
Sawin Wit It!
The way you have it set up is good. Only a partnership from a business relationship standpoint, not legally. Which is good for the reason you stated. But you should have a contract on every project you do, that way the liability ends with the completion of each individual job.
Let me jump in here and play Devils Advocate. You've mentioned your LLC and such, but which one of you is actually licensed and insured to be doing this rather dangerous work. My point is, if a tree falls on a house and kills some one, which one of you 2 is going to jail for 5 years for negligence? Sorry if I sound like a pr*ck, but I know most start up tree guys do it under the cuff, till they start making enough money to go legit. I say no to partners. But, a nice 1 ton dump and a medium size chipper really makes the difference between beating yourself to death, taking loads to the dump and fuel, and just tons of extra work, and going home at night knowing you have enough steam to head out and do it again tomorrow. So, you have to do the soul searching and decide if you need this friend/family member. Another thing, if this is family, and you do have a bad accident, what will that do to your whole extended family? Think hard about this one. Capitol to get started is a great thing, just weigh it out. good luck, Joe.
