Starting New Partnership

 
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Old 11-14-2017, 08:06 PM   #1
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Starting New Partnership


Good evening,

Thank you for taking the time to read my first post. After reading most of the posts on the forum that were relevant to my situation, I decided to start my own.

It has been a long time coming but, I have finally decided to initiate a start up business with a friend.

Let me give a bit of a background...

I am 30 years old and have a decade or so of experience working as a salesperson for my "family" company. Unfortunately, for me, the business has become to big and is now set up as a corporation. Long story short: I will never be more than a sales manager after another decade of time invested and it just isn't worth it to never become an owner of a business that has my last name on the side of the building.

So... I've decided to build something from the ground up.

I just now ordered a couple books including: Running a Successful Construction Company.

I will be working with a good friend who has a lot of experience in a similar field and we will be setting up a business plan in the coming days/months to get ready to launch in March.

I am just looking for advice on setting up the actual business plan. We are both new at this but we have a good understanding of what are defined rolls will be.

Thanks again in advance!

-Dave
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Old 11-14-2017, 08:32 PM   #2
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Re: Starting New Partnership


My advice would be to speak with a good lawyer and accountant. I'd also recommend reading the following books. Good luck!

Think and grow rich by Napolean Hill.
Good to great by Jim Collins.
Start with why by Simon Sinek.
E-Myth Contractor by Michael Gerber
Markup and profit by Michael Stone
Simple Numbers. Straight talk. Big profits by Greg Crabtree.
Duct tape marketing by John Jantsch.
Buyology by Martin Lindstrom.
Guerilla marketing by Jay Conrad Levinson.

Sales books from Jeffrey Gitomer, Zig Ziglar, Brian Tracy and any Sandler books.

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Jaws (11-15-2017)
Old 11-15-2017, 01:41 AM   #3
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Re: Starting New Partnership


The first thing in your business plan should be to start a business without a partner.

Many people only think they have their partnership roles, rules and business plans figured out, but how can anyone figure out something when they don't know what they don't know. You can ask people a lot of questions and get good advice, but people don't realize there are a million nuts and bolts for even small businesses.

Starting a business with a friend is the beginning of the end of most friendships.

Most people say each partner has strengths that will make the partnership successful. I would never ever think about risking my money or time in a partnership where 50% of the success of that partnership relies on that other partner because when he is gone you just lost whatever that 50% was that you needed to make your business successful. You will be left holding the bag.

If you can't start the business and make if successful then you probably should stick with your relative's business.

If you have to ask people on CT what you should do then you are not ready to start a business. Books are great to help with everything in life, but books also make people think they can walk on water when they cannot and they drown very quickly.

Don't pay attention to what I write. I am sure there will be a few people who will claim they have successful partnerships, but I would sure love to be a fly on their wall when they are together and when they are not together.

Last edited by daffysplumbing; 11-15-2017 at 01:53 AM.
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Old 11-15-2017, 06:02 AM   #4
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Re: Starting New Partnership


All I was going to say is that I hope you won't have any trouble finding a new friend, but daffysplumbing covered it better than I would have. The bottom line is that there can only be one boss.

I went in business with my brother who happened to be my best friend. We didn't speak to each other for 20 years. Of course everybody thinks that it won't happen to them.
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Old 11-15-2017, 06:18 AM   #5
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Re: Starting New Partnership


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Originally Posted by B.Johnson View Post
.



I went in business with my brother who happened to be my best friend. We didn't speak to each other for 20 years. Of course everybody thinks that it won't happen to them.


My brother and I were partners at first and after it went bad we didn't speak for 7 years. He's been working for me for about 15 years now and we've never even had a brief disagreement.

Guess it's kind of like a silent partnership actually because there is no way I could make the money I make or have it as easy as I have it without him. A lot easier when one person is calling the shots.


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Old 11-15-2017, 07:16 AM   #6
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Re: Starting New Partnership


Do either of you have asphalt and paving experience? Significant experience?

Is one of you very experienced in labor management and operations?

If both of you have similar experience but not strong in any one side of the business what is the purpose of the partnership?

It is rare two friends are going to be suited to be partners in business, it needs to be about what each brings to the table, not being buddies. Doubtful one of yall is a paving expert and the other a skilled business and sales guy. Like many have said partnerships aren't for most especially friends.

Where are leads from? Either of yall big networkerers? What is your anticipated volume? If it is a true startup, you will spend a number of years building operating capital and building a sales revenue suitable for that size company for two owners probably. Ypu habe equipment to purchase besides building operating Capital. Many of your contract will be 30 - 90 day net
probably. Your hands, supplier and equipment note holder would still expect to be paid and you will still have to keep your lights on and feed your kids Etc.

Y'all need to be very clear on how much is coming out of the company went to y'all's personal bank accounts and the rest needs to be retained earnings. Otherwise you'll just be another dime a dozen for a few years you last until you go bankrupt, underfunded companies, especially equipment companies, are generally the first ones to go down.

Remember business is business, personal is personal. Like the posters above, I have had to fire friends and relatives, and it is hard but it was necessary for my business to succeed. Deadweight is exactly that. Unlike the posters above, I still have a good relationship with the four people I am talking about, only you can know your relationship with your buddy well enough to answer that question.
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Old 11-15-2017, 07:20 AM   #7
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Re: Starting New Partnership


Quote:
Originally Posted by lawndart View Post
My advice would be to speak with a good lawyer and accountant. I'd also recommend reading the following books. Good luck!

Think and grow rich by Napolean Hill.
Good to great by Jim Collins.
Start with why by Simon Sinek.
E-Myth Contractor by Michael Gerber
Markup and profit by Michael Stone
Simple Numbers. Straight talk. Big profits by Greg Crabtree.
Duct tape marketing by John Jantsch.
Buyology by Martin Lindstrom.
Guerilla marketing by Jay Conrad Levinson.

Sales books from Jeffrey Gitomer, Zig Ziglar, Brian Tracy and any Sandler books.
Second.

My style of sales is totally different than gittomer or those kind of guys but reading the books several times was an invaluable help. Even if it's just one tip you can actually use the reads are worth it.

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