Is a partnership feasable?

[PurePrecision]

Hello all. I'm in the process of putting my business together, which will be completely mobile. I have a buddy who is interested in starting a partnership. He has a truck and enclosed trailer and is willing to train with me. At this point I do not yet have my rig, but could budget for one. My question, does it make sense to have a partnership? In a sense, you should expect better performance from a co-worker who is also invested into the business as apposed to picking up helpers and paying them hourly. But, can I expect this extra edge to ensure that we will still profit after roughly 2/3 of the gross income is split between the two of us and the last 1/3 being reinvested? Any thoughts and opinions would be greatly appreciated.

 

[Richard Grasa]

Sure, it can make total sense to have a partnership, but the question is, is he a friend of yours or just an associate? IMHO, business and friendship do not mix and it's only a matter of time before you are no longer friends. You may be lucky and be fine, but I've been there, done that, as quite a few other people I know and it never turns out pretty. If he's a friend, think long and hard before you get into a business partnership with him.



If you do decide to go with a partnership, it's very important to get an attorney involved for the legal matters, contracts, etc.



I also have a buddy right now that wants a partnership, but I won't do it, I value our friendship too much.

 

[Nth Degree]

I think it is possible, but could bring up many issues.



How do you make business decisions when both partners don't agree?

What if one partner wants to leave the partnership? Will the other buy them out? Can you/they afford to?

What if they want to go out on their own? How do you determine a division of the customer base?

What if one partner gets sick/injured?

What if one partner's personal financials affect the business?



Make sure to put everything in writing and consult an attorney. If neither of you have a lot of experience I would definitely proceed with caution. This is a business that looks easy but requires both great patience and physical ability at times.

 

[Richard Grasa]

Another option may be for one of you to be the owner of the business and the other "work for you" as a subcontractor. That way if one decides to leave the business, things don't work out, whatever, you won't have the legal matters of the partnership to deal with.



Though this route could have it's own problems to deal with, but something to consider.

 

[PurePrecision]

Sure, it can make total sense to have a partnership, but the question is, is he a friend of yours or just an associate? IMHO, business and friendship do not mix and it's only a matter of time before you are no longer friends. You may be lucky and be fine, but I've been there, done that, as quite a few other people I know and it never turns out pretty. If he's a friend, think long and hard before you get into a business partnership with him.



If you do decide to go with a partnership, it's very important to get an attorney involved for the legal matters, contracts, etc.



I also have a buddy right now that wants a partnership, but I won't do it, I value our friendship too much.

I think it is possible, but could bring up many issues.



How do you make business decisions when both partners don't agree?

What if one partner wants to leave the partnership? Will the other buy them out? Can you/they afford to?

What if they want to go out on their own? How do you determine a division of the customer base?

What if one partner gets sick/injured?

What if one partner's personal financials affect the business?



Make sure to put everything in writing and consult an attorney. If neither of you have a lot of experience I would definitely proceed with caution. This is a business that looks easy but requires both great patience and physical ability at times.

Thanks for the quick responses. I will look into attorneys around my area and see where that gets me. I hadn't really thought about these conflicts that the two of you have brought up. Our discussions have majorly been about splitting start-up costs and the benefit of two brains behind the marketing side of the business. My biggest concern at this point is creating enough income for two owners instead of one. I'm going to keep considering this, thanks a lot for your input.