[mgba_78]

I am in a partnership and it works fine 100% no probs ever, well i threw my dummy out once as i did 1 very messy upstairs window when my mate was in the van having a tea! We have been in a partnership for 3 years, and infact we have even let a friend of mine buy in and now we are 3 partners, 2 vans and 1 other employee!

A few things to consider:-

decision making - What are you going to do if you cant agree???

Sounds silly but we have had this discussion originally as a 2 man team and we decided the only way was to flick a coin, sounds stupid but how do you decide who knocks on awkward doors or who has to chase monies owed up etc etc, not major decisions but trivial day to day stuff

Buying in

We agreed an initial amount and i bought into the round from day 1, you want to be singing from the same hymn sheet from the start, if he has financial investment he will give 110% all the time like you!

Partnership agreement

We have done this to cover our selves, even silly stuff is on it but get it out in the open from day 1, not 3 months down the line. Even silly stuff like days off, working hours, who looks after the books, how much £ if one partner wants out, etc etc
It sounds trivial but we didn’t want to have a falling out about anything so have it all in black and white signed by all 3 of us.

Personally for us it was the best thing we could have done, going to a 3 partnership team means we now have 2 vans and the employee is always “looked after” by one of us :-) Plus all the costs are now 1/3rd and yes profits are also 1/3rd but we are now earning more for less days work as we can get round all our customers on time, we have gone from over 20 days to 12/13 days work a month, leaving loads more room for growth!

So I say if you can have an honest discussion about where you want the business to go and can get it all agreed go for it!

[mark dew]

can anyone see any positives,?

~growth,

~ makes you work harder earn more (incentive)

~ company.

Yes i an see all these positives in the short term. It is once everything / info starts geetting known by all that i belive would be the most vulnerable part of a partnership.
ANything he cam bring to the company can be achieved as an employee, with incentives. It is handing over the reins to the horse that resntment and conflict is most likely to keep in.
You don't need to give half of all you've woked for, to make use of those skills. You have down ALL of the hard work by getting this far.

[Clive McDonald]

mgba- impressed

[paul rulton]

me2

[Ian Lancaster]

One thing worth bearing in mind:  in a partnership if one (or more) partner(s) disappear, the Inland Revenue will come after the remaining partner for the absconding partner's share of the tax/NI owing.

It's one business in the eyes of the HMRC and each partner is 'jointly and severally' responsible for paying any tax due.

Make sure you consult a solicitor before doing anything else: you wouldn't want the Revenue repossessing your house to pay your friend/brother's tax bill would you?

[geefree]

Thanks for your advice, the more i read , and learn opinions... the more i feel that,


i may keep my existing round to myself, and build a round with him, and keep mine seperate,...

otherwise i am building a round splitting it in two, merging it with mine......and not earning much more than now...in other words creating work for someone, and having a partner to worry about., with little more benefit.


i would like a way round this..... , and i will get it all written up legally, i dont fiddle my books, so nothing to worry about there.

any more partnerships out there?

[Ian Lancaster]

By far the simplest (and safest) way is to have two completely separate rounds - different name, separate bank accounts, different trading addresses.  If you want to work together that's fine, just keep your own customers on your own separate books.

It's all about keeping proper records - you must be able to show that there are two genuine separate businesses with complete and accurate records for each one.

Working side by side is fine, but it would be better if you only worked 'one man per house' that way you're not sharing the work - you would also get more done as two men on one house can't do it half the time it takes one man on his own.

All the benefits of having someone to work alongside with none of the hassle of a partnership.

Also if two of you are in partnership you will reach the VAT limit twice as quickly!!

[Sean Dyer]

Thanks for your advice, the more i read , and learn opinions... the more i feel that,


i may keep my existing round to myself, and build a round with him, and keep mine seperate,...

otherwise i am building a round splitting it in two, merging it with mine......and not earning much more than now...in other words creating work for someone, and having a partner to worry about., with little more benefit.


i would like a way round this..... , and i will get it all written up legally, i dont fiddle my books, so nothing to worry about there.

any more partnerships out there?

good idea gazza, if it works out you can throw your round in too and let him buy in or have in writing it still is yours if you split but for now do that and keep it seperate!

i started in partnership and didnt fall out greatly but was awkward he was experienced and i was new but i was good at bringing in customers, i tried to get things in writing but it didnt happen so it was awkward settling up at the end, i paid back what hed put in but he still felt done so not been so friednly since

i wouldnt do it again

[daz1977]

my mate is a partnetr in an plstering business, and hates it,  if one has time off the other ahs to work harder yet they still get half the money,  my mate wanted to insure his car throught the business, so had to insure his mates dads car to make it even, other wise one was geting more than the other.  might seem like petty things but where do u draw the line at what can one have more than the other

the partner is in that much debt that he wants to go bankrupt,  but my mate will be stuck with loads of business debt, why we walks away

i would just employe him, get a van gear and build a round for him,  then if he wants to buy it off you then fair enough

working wth family can cause lots of problems, espicaly if it goes sour

[geefree]

Well i am glad i asked, because apart from a couple of pluses, there does not seem to be many positives to be taken out of this,

i cant afford to employ him,  not until an other round is built.... and i am now turning off the idea of partnership.....



Thanks for your help

[paul rulton]

good luck with wot ever u deside m8

[mgba_78]

mgba- impressed

Thanks 

I must admit, i do think the way we work is an exception to the rule. And w/c as a whole doesnt need to be run as partnerships to make decent money, you can earn very very good money on your own so why add the pressure and potential mess of involving someone else.
For us we want a fleet of vans with our name on but we want to take a little time to achieve this as we dont want it to crumble as soon as we make it, so for us the next step is another van and we have a partner and an employee in each van.

Gazzasp8, for me a partnership is all about everything 50/50 anything less or more either way will always end up being resented by the partner who is the lesser %
You need to work out how or if you will be better off in a partnership or not, financially and work wise, as after all if your not going to make that much more ££££ out of it why do it? You could just help your mate set up and help each otherand if needed or even he pays youto help him canvass???

[adixon]

I think i would go down the route of helping eachother out with canvassing to build two good rounds and then both go your seperate ways you can then help eachother out as and when but full partnership a wide birth me thinks

just my opinion

andy

[John Walker]

I started a business a couple of years after leaving school and then went into partnership with my best mate from school for over 20 years.   Total trust and a successful business between us throughout those years.  I always thought that was going to be it until retirement.

He then married late into a 'business' family.   Twelve months later I was out on my ear.  It was more or less a case of - leave or lose your house.  At the disolvement meeting, I was given £5 to make it legal after all those years.  The business has continued to thrive until it was sold recently.

My solicitor couldn't find any way of getting me out of the situation.

Much longer story than that but be warned.  I've never really fully recovered from that experience.

[reach&clean]

Hi mate

i am starting a partnership with a good friend of mine and i have thought about the effect it might have between us but to honest, i think if you both want the same thing and are willing to put 100% in then you should not have to many problems.  Dont get wrong i am under no elusions that at some time or another that there will be disagreement and we will both spit our dummies out at some piont but as long as you are both adult about it and talk i through i cant see why i would not work.

[paul rulton]

well said m8