Clean It Up
UK Window Cleaning Forum => Window Cleaning Forum => Topic started by: richywilts on January 27, 2010, 07:21:29 pm
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as you all know i work alongside steve78 that comes on here at the moment he just works for me but hes not long moved back home from nottingham and we used to talk about going into partnership. at the moment ste hasnt got any funds to invest but i know what his strengths etc are and what he can bring to the business in taking it forward we compliment each other.
just after a bit of advice in which way you all think we should turn the business into a partnership regarding the fact he has no money to invest. i was thinking of going limited offering a smaller percentage. and what sort of value you would put on the business at the min iv worked hard to get my round at good prices averaging £19-20 a house on some rounds
just to give a rundown of what he is coming into at present i have
a window cleaning round which has been going for approx a year and half thats growing constantly brings in roughly 2000 a month turnover which i want to double in next few months
56 vauxhall vivaro signwritten with an ionic pro 5 650 litre system with ionic glyder pole, brodex prolong speedlined with pole rack
a professional website
a 53 ford transit
2 honda 13hp pressure washers, rotary cleaner
omnivac gutter vac
graco airless sprayer
industrial steam cleaner
currently rent a unit with a portakabin as office
lots of stock of leaflets etc
there is no finance at the minute on any equipment
we are hoping to build up a large company with seperate umbrella business i.e window cleaning business, roof coating business, kitchen deep cleaning
or would you all just rebrand and have it all under one name??
any advice would be appreciated
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That's an impressive list after a year, so well done. I can't see an easy answer to your question though.
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£2000 a month? Is that between the two of you or have I jumped the gun?
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no ste just been workin a bit part time
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richy you do have an impressive portfolio of equipment.
i guess you do other work??
nowonly you know the value of this person to your business but persoanlly i would not be making him partnr just yet, i wold give him a % of profits and increase that the more he brings in.
Though Richy i would be intrested in chat some time.
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tbh although you have done well
your round isnt even full for one guy yet richy
at present you are offering half a van half your tools and £1k a month 12k a year before tax and expenses as a business
Im sure from looking at your posts and seeing your websites you aredoing and are gonna do well richy but at present i wouldnt personaly want to lose half of what still is a business under construction
but if you think he is a good man to have on board then maybe it will help in the long run
maybe decide what figure you think its all worth if you were to sell now then half that and take it out of his dividends till your paid back???
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anytime ronnie av u got me number
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thats exactly how im feeling sean i know that im not even half way to where i want to be, but i know how ste feels about wanting to come on board. i know my business isnt worth a great deal at the moment on sales etc but if two of us wer pushing it forward then i think it would get to where we want it to be. stes more hands on im more into more admin side of things.we just keep on talking about it and never getting anywhere iv said to just maybe see how the business builds over the next year
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is that number on website?
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yeah mate its 07894 821844
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You've got a good balance sheet but a poor profit and loss account.
Other threads on here say all partnerships end in disaster.
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steves good at sales worked in finance company selling car finance and as a holiday rep, hes great with the customers and hes hands on technical when any problems arise with the pumps or if theres a problem with pressure washers or any machinery hes hard working hes my best mate and im going to be best man for him in july.hes built up the knowledge etc of what all the waterfed pole window cleaning is etc and i trust him with anyfin.
where as im more of the organised one happy to get work coming in know a little more about running a business im more strategic and methodical enjoy dealing with paperwork etc
were both ambitious and want to grow the business we dont just want to have a window cleaning round.
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hard one to answer as most av said rich as hes yr best m8
u may feel obligated to him sum ow yr getting a lot ov business n growing
which is all time n effort on yr part id say wiv his lack ov funds etc
75 per cent you 25 per cent stev grow that on new business if u get me
hope this helps ,gav
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50/50 then, but he owns you the current value of the business today.
Good luck.
I would agrree with Ewan, but I would want the value plus interest on fixed month payment under contract, mates are mates, business is business. Money and mates gets messy, trust me I lost my best mate as greed by him took over, he was like my brother aswell :'(
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Richy,
I know everyone says business and mates don't mix but I set up a business with my best mate.
And when I say best mates, we really were - spent 24/7 with each other, never ever argued or fell out always had a great laugh.
We broke the business up 7 years ago and guess when was the last time I spoke to him.......... you guessed it 7 years ago!
My best advice is really really dont do it. As you said he's hands on and you prefer the admin side - or as he'll see it a couple of years down the line, he does all the hard work and you just sit on your arse & resentment will creep in!
But I suspect you've already decided and think that it'll be different for you 2, so the best thing I can recommend is to give him nothing now (pertcentage wise) but put a value on any new business he brings in i.e. 2x a clean and allow him to buy in this way.
Even with this I doubt it'll work out, but I hope it does and wish you the best of luck
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if you've got this business built up and its growing why not offer a bonus to ur m8 rather than half ur company . i bought into my best m8s run 15 months ago (his bro was his partner b4 me) , a good business with 3 full time employees and it turned to poop. only today have we agreed to part company with him goin in a different direction and me taking over the business .
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If he's such a good salesman put him on commission, his reaction to that alone should tell you whether or not it's a good idea going in with him. IMO.
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he doesnt want to be involved in sales really he happy goin out cleaning at min and he does it well to be fair
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Why cut him in then? Pay him for his work, give him a bonus if you want...
If you want to keep him enthusiastic offer him a %, verbally!
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Agreed Ewan, but it's his mate & he has no money to invest, alarm bells are ringing in my head...
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hes my best mate and im going to be best man for him in july.
That setlles it for me. Don't do it. Look at it as a choice. Friendship or business partner?
And with the best will in the world, he is human and won't be able to be both.
You have a tidy little business at the moment and a best friend. Why throw both up into the air? Business can be done anytime. Friends like you 2 are now is much harder to come by.
Regarding how much your business is worth, i think it is already grossly undervalued (without knowing your value) due to you considering selling parts off when the majority of hard work is done.
Optimise it now, while you are so close to achieving full potential. Then consider bringing someone full time.
There are plenty of other ways of getting your friend more involved into the business. Equal partnerships don't work.
He is your friend. Don't let him linger on the idea of becoming your partner for too long. That can cause problems if it doesn't materialise.
Income and profit share should commit him to your business just as much. And if you can grow it at 1/2 the rate you have, you would need more employees in 3 years. And your mate sounds like he would make a good manager. Of your business. :)
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cheers mark thats good advice the reason hes just a bit short at mo is hes been supporting his wife to be for last 3 years while she did a midwife degree away from home iv got full faith in him its just a hard one to draw up and decide what situation would work the best as its not just the window cleaning were planning on doing.
i was thinkin maybe setup a limited company start at a 70/30 split then increase his share ownership 10% each year and maybe have one person who is in charge overall
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cheers mark thats good advice the reason hes just a bit short at mo is hes been supporting his wife to be for last 3 years while she did a midwife degree away from home
All the more reason i think to not let the idea of partnerships become too ingrained. Especially at this stage of your business.
iv got full faith in him its just a hard one to draw up and decide what situation would work the best as its not just the window cleaning were planning on doing.
i was thinkin maybe setup a limited company start at a 70/30 split then increase his share ownership 10% each year and maybe have one person who is in charge overall
10% increase on 30% would give him 53% of the company in 6 years.
I just can't get on with the idea of giving away ownership. That side doesn't make any sense to me. You just don't need to do it.
Pay him equal shareholder wages if you want to. It's the giving away of your company that doesn't make sense to me?
You will cease to be boss and will become an employee like everyone else. Who just happens to own shares in the company.
You have nothing to gain and everything is possible to lose. Friendships are worth more.
Lol, you sound determined to become partners and the reason given against this is not about anyone ripping anyone off. It is about jeopardising a good friendship.
If/when you do become partners, keep it well away from your core business. Which is window cleaning. Become partners on new ventures you take up.
The thing with a window cleaning round is that you can always fall back on this while maintaining your lifestyle.
Share everything else but leave the window cleaning round for yourself.
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2k a month is barely enough to live on before costs.
i would work on your own get up to a full round of say about 6k? then look at it. I wouldn't recommend any partnership and would say that if you need someone to assist you in anyway, pay them for their services so you still have the final say!!
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i wouldnt ever set up any business with a friend.history is littered with broken friendships,resentments and hassle.i used to have friends working for me and that didnt work out!
i would say stick to building your round up as youve got a base now to grow bigger.i wouldnt even have him working for me!if you need help get someone whos not your best mate and let your mate start his own business thats seperate from yours if you want to stay friends!
just my opinion.....dont do it!
dazmond
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Partnership agreement is essential, set the ground rules for the breakup at the begining.
It seems to me that you may be a bit premature in selling half your business just yet. Maybe explore the option of buying work, to create the turnover to give steve an income out of which he could then consider investing in your business.
I would have no issue if you were starting out but for you to give away 1/2 of what you have built up now would be foolish imo.
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I have been running my business for 10 yrs. I have employed pretty much all of my mates at some point.
Sometimes it works.
You have to be clear from the start. Get a partnership agreement drawn up. Decide who will be ultimatley calling the shots.
It will become the only way eventually.