Partnerships, need advice

[jandjsales]

I'm looking to adding another trailer unit to my business, my nephew has interest in getting started pressure washing part time, but has limited cash to start. we have discussed me providing the equipment, chemicals, liability insurance, parts and repairs, he would get his own jobs as well as jobs i get him to do when i'm too busy, he also has his own truck. I figure this situation would work out for both of us, as it would be adding to my business, and it would keep him from becoming some what of a competitor at least for a while. I'm also a distributor for pw equipment,tanks, parts and chemicals, so it wouldn't be too bad of a blow for me to put the equipment together and provide chemicals. he has good work ethics and if he is a part of it, he would do a better job than an hourly employee. I did a similar situation a few years ago with a friend and we did a 60% (me) 40%(him) cut on every job he did. this worked out pretty good, until he started doing jobs that i didn't know about.
Has anyone else here done a similar limited partnership???? i'd like to hear what has and hasn't worked for others.

Thanks, Jeff G
jandjsalesco@bellsouth.net

 

[steve r]

I'm looking to adding another trailer unit to my business, my nephew has interest in getting started pressure washing part time, but has limited cash to start. we have discussed me providing the equipment, chemicals, liability insurance, parts and repairs, he would get his own jobs as well as jobs i get him to do when i'm too busy, he also has his own truck. I figure this situation would work out for both of us, as it would be adding to my business, and it would keep him from becoming some what of a competitor at least for a while. I'm also a distributor for pw equipment,tanks, parts and chemicals, so it wouldn't be too bad of a blow for me to put the equipment together and provide chemicals. he has good work ethics and if he is a part of it, he would do a better job than an hourly employee. I did a similar situation a few years ago with a friend and we did a 60% (me) 40%(him) cut on every job he did. this worked out pretty good, until he started doing jobs that i didn't know about.
Has anyone else here done a similar limited partnership???? i'd like to hear what has and hasn't worked for others.

Thanks, Jeff G
jandjsalesco@bellsouth.net

make sure everything is in black and white .that way no problems.

 

[5 Star Johnny]

Playing devil's advocate, a lot of what you may have heard about being in business with family is ABSOLUTELY true. We were partnered with my sister & b-i-l for about 5 months. Bought them out and hardly speak to each other since. I also worked for a family business and saw miserable things happen.

My best advice: Business is business - Family is family. Don't confuse the two. Approach a possible partnership as a business venture. Don't cut slack ANYWHERE and make sure everything is spelled out. When it's time to work, it's not Uncle & Nephew, it's partner & partner.

If done successfully it can be very rewarding. If treated less than professionally and it goes bad......it'll be VERY BAD! Good Luck!!

 

[V I P]

I agree with 5 Star Johnny 100%. I have 2 businesses, a transmission shop and a cleaning business and have partners in both. I have had to refer to my partnership agreement a few times to set things straight with my shop. With our cleaning business, we have a verbal agreement with our partner (brother-in-law) and needless to say it is nothing but headaches. If I had to do it over, I would have had my lawyer draw up an agreement. I still might or offer buy him out.

A partnership agreement drawn up by a lawyer and filed with the state in which you live in is the only way to go.