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neil 47

  • Posts: 1345
Partnership
« on: April 14, 2012, 09:01:31 am »
Can a partnership ever succeed  ???

Neil
IICRC

Paul H

  • Posts: 878
Re: Partnership
« Reply #1 on: April 14, 2012, 09:14:15 am »
Can a partnership ever succeed  ???

Neil

maybe  so long as its not a marriage ;D

Doctor Carpet (Ret'd)

  • Posts: 2024
Re: Partnership
« Reply #2 on: April 14, 2012, 09:18:36 am »
Old banking truism

Partnerships are the easiest types of business relationship to get into...

....and the hardest to get out of.

Moral of the story-get a properly drawn-up partnership agreement if this is what you want to do.

Rog
Diplomacy: the art of letting other people have your way

Doctor Carpet (Ret'd)

  • Posts: 2024
Re: Partnership
« Reply #3 on: April 14, 2012, 09:19:03 am »
Neil

Why do you ask?

Rog
Diplomacy: the art of letting other people have your way

neil 47

  • Posts: 1345
Re: Partnership
« Reply #4 on: April 14, 2012, 10:28:24 am »
Hi Rog
Me and a friend are working together on large jobs and letting agents . I have found that the work is easier we get on well and as a pair we are in and out of jobs far faster and easier with half the costs.
We are starting to pick up more work and find that with 2 we have flex ability .
Also having been coming on ciu and other forums I have noticed the more successful cc have been couples whether through marriage , family, but didn't notice many partnerships .
IICRC

Doug Holloway

  • Posts: 3917
Re: Partnership
« Reply #5 on: April 14, 2012, 11:08:59 am »
Hi Neil

Roger knows more than me on this but as I understand it in a partnerhip you will become liable for all the debts, his as well and vice versa.

Probably safer to be joint owners of a limited company.

Cheers

Doug

John Kelly

  • Posts: 4461
Re: Partnership
« Reply #6 on: April 14, 2012, 11:15:38 am »
If what you are doing is working at the moment then I would continue just as a loose business arrangement.
If you are ever considering a partnership then you really want to look at what the other party is bringing to the table.
In a carpet cleaning business I would be looking at bringing somebody in with excellent marketing & sales skills. This together with the practical knowledge of the carpet cleaner could really push the business forward. Nowt to stop the other partner getting on the tools to help out.
You could also sey up a seperate company together for joint enterprises but also keep your own business running in case it does go pear shaped.

Ian Gourlay

  • Posts: 5748
Re: Partnership
« Reply #7 on: April 14, 2012, 11:23:24 am »
When i was working I used to do Letting Agents  work with a mate but it all ended in tears , over a disagreement non cleaning related.

Doctor Carpet (Ret'd)

  • Posts: 2024
Re: Partnership
« Reply #8 on: April 14, 2012, 12:30:53 pm »
Hi Neil

As John says if it's a loose business relationship then there shouldn't be too many problems. In a similar way I've worked on jobs with Clinton and others but it's usually because the size of the job demands it. In this type of situation the job usually "belongs" to one of you and in effect you're subbing out part of the work. If both of you are doing this then there is less chance of resentment from either party.

In a partnership agreement-and do be very careful over this, because even if there is nothing written down-whilst all is going swimmingly there are rarely any problems. When problems do occur if can be the case that one party would argue that by dint of the situation a partnership had been formed and therefore the parties would be estopped from denying it. It only takes for one party of the partnership to feel grieved that they are putting more into the relationship for the whole ship to go belly up.

If it's to be more than a loose, occasional joint working then you need to cover such matters as who does what, what each of you is bringing to the relationship, and what is expected of each party and what the split of the rewards are to be. So for example, one person may be brilliant at bringing in the business which can be perceived as less back-breaking, and have rubbish equipment/cleaning skills, whilst the other partner has all the equipment and technique  (and has to work long unsociable hours actually doing the cleaning) but couldn't give away a beer in a pub. In such a scenario you could have a perfect storm of resentment building up as to which party makes the partnership work best.

(Another example would be Rolls Royce cars. Mr Royce was a brillian engineer/mechanic whilst Mr Rolls was the master of selling exclusive cars. Thankfully they worked out their differences including the fact that the cars are called Rolls Royces and not Royce Rolls (although it is also known that within the factories they are always known just by the name "Royces". But I digress.)

A formal "partnership agreement" whilst it will cost you money to draw up can save hours of arguements, lawyers bills and generally "losing out" in the long run. And such an agreement is really no different (and probably cheaper) than setting up a limited company with the accompanying Memorandum and Articles of Association which are in effect the same thing as a Partnership Agreement.

Rog
Diplomacy: the art of letting other people have your way

The Carpet Cleaning Pro

  • Posts: 753
Re: Partnership
« Reply #9 on: April 14, 2012, 01:34:36 pm »
What i had problems with many years ago was the other party had some personal debts so wanted more money out of the business to help pay his debts. As for the running of the business, it can be ok as long as you both are wanting it to work and are both preparred to put in the graft. Its when the money side of things problems could arise.

Doug Holloway

  • Posts: 3917
Re: Partnership
« Reply #10 on: April 14, 2012, 01:57:38 pm »
Hi Guys

I used to be in a partnership although we were limited.

The trouble for us was that our needs diverged, I had a young family and my partner did not. My wife gave up work and his partner had a steady job at the Treasury, so I needed more money from the business.

We went our seperate ways but remained friends and I was best man at his wedding a few years later.

Cheers

doug

Kinver_Clean

  • Posts: 1120
Re: Partnership
« Reply #11 on: April 14, 2012, 02:57:38 pm »
Who gets the work?
Who does it?
Who owns the gear?
What happens if one cannot work?

I have heard so many tales of disaster with partnerships that I would be very careful.
A mate of mine bought out his partner for a large sum and reconned he would pay it back in 3 years. He found the partner was having so much out of the business he paid it back in 13 months.

I personally would be inclined to work with this chap but on a job by job basis. Whoever gets the work pays the other for his labour etc.
God must love stupid people---He made so many.

neil 47

  • Posts: 1345
Re: Partnership
« Reply #12 on: April 14, 2012, 10:03:52 pm »
Some very good points , I can see some very good advantages and some negatives . If u want to maximise a buss then u cant do everything , what someone. Rings to a buissness is a excellent question and one I will give some thought to .

Neil
IICRC

Simon Gerrard

  • Posts: 4405
Re: Partnership
« Reply #13 on: April 15, 2012, 09:05:45 am »
Neil,
In answer to your question - rarely.
Sounds like you've got a good thing going, so why spoil it with needless complications? One of you owns and runs the business, the other works for himself and gets a percentage of the jobs. Nice and simple and no need for lawyers when it all goes tits up - which in time, it will.

Simon

Kinver_Clean

  • Posts: 1120
Re: Partnership
« Reply #14 on: April 15, 2012, 11:19:18 am »
Why did you decide to be your own boss in the first place??

I threw the company car keys on the boss's desk and walked out. Then had to get my wife to pick me up. She did not speak to me for a week.

Best thing I ever did except marry her!!!
God must love stupid people---He made so many.

PaulKing

  • Posts: 1626
Re: Partnership
« Reply #15 on: April 15, 2012, 01:46:34 pm »
if you both go in for the same amount of investment  do  exactly the same jobs never have sick leave longer than each other or more frequent, share everything 50/50  and take the risks 50/50 take holidays 50/50 and never feel resentful that one might be getting more than the other
It might work,

Tends not to though.

www.revitaclean.com  established 1968 in Newcastle Upon Tyne