Looking for advice and suggestion....

[renegade_cowboy]

So here the deal, I have been in the industry for 10 years and have various certs. I am working on going full time with my business early next year. I have great ideas, good marketing and business plan, just little money and time right now. My brother wants to join my venture. He can come in and put up some money to get the ball rolling big time.

The problem is, is this business is my baby that I have been planning for years and I am in complete control of it. My brother understands that and respects that. He is just looking towards the future and wants to quit working for the man. He wants the freedom and $$ being self employeed, this is something he wants to do. He got me into carpet cleaning 10 years ago and steemer. He is good and can work hard, but how should I handle this.

I know my ideas will work if I had the money/time and I do want him to be apart of my business but I don't know about the money aspect. We both need to make a certain amount of money to take care of what we got. I think he could be a big asset to my business in many ways, but the money aspect maybe the downside to it.

How do other people handle business partners or family partners? Like I mentioned I do want him to be apart of it but I also want to build a future for my wife and 3 kids. I currently have a Tm and van that is paid for and all the equipment. I mostly do family , friends and referrals. My marketing plan (that I really want to do) to get the customers require more money than I have right now.

My ultimate goal is to own a multi-truck operation, not clean carpet and just focus on building this company outside of carpet cleaning too. I want to brand Go Green and sell various green products online and in stores (like kiosk in the mall to start). While spending more time with my family and being able to have the funds to take care of whatever life has to offer. I guess the American dream. :shock:

Thanks
:mrgreen:

 

[steve frasier]

From a person that has been in a partnership for 16 years I would say don't do it. It sure sounds good right now doesn't it.

if I was you the next thing I would do is read a book, I am sorry but the name of the book escapes me right now but I pass it around to people then they give it back and I give it to some one else that I think needs it

Scott Rendal gave me the book at Connections, someone on here should remember the name of the book

 

[Guest]

I don't have to even read all of what you wrote! NO, NO, NO Family!!!!!!

Did i say NOOOOO

JMO

Cheers, Mr. Slide

 

[Ernie G]

Brent,

It sounds like you've come a long way since I saw you last, good for you. Are you still working for Alpine? It sounds like you have been doing your homework. Be careful with partners, even if it is your brother. Make sure you guys put things in writing-Its betterfor both of you. And then if you add the wives it can get messy.

 

[renegade_cowboy]

Brent,

It sounds like you've come a long way since I saw you last, good for you. Are you still working for Alpine? It sounds like you have been doing your homework. Be careful with partners, even if it is your brother. Make sure you guys put things in writing-Its betterfor both of you. And then if you add the wives it can get messy.

Naw I left there awhile ago. Yeah i'm not sure what to do, I am gonna talk to him soon about it more. Maybe he can invest in it instead of partnering.

:mrgreen:

 

[rhyde]

There are ways to set this up to protect both of you as the owner and be fair to your brother talk to a business attorney the best advice is get everything in writing. I would be more inclined to work it as a investor/ employee you can always make your brother an owner later if thinigs work out well it sounds like the cash flow might not be there at first to support two full time perhaps you full time and him part time?


What about the advantages... a seasoned veteran of the industry with his money on the line and strong desire for the business to succeed
hard to come by with just an employee

 

[Greg Loe]

If you take on a partner, make it legal to protect all. Get a real partnership agreement. An understanding of all responsibilities for each of you.

 

[John Watson]

Don't forget, with your brother or an employee, you will now have 2 families to feed and shelter, Kind of hard on a start up!! Not impossable, but still kind of hard. Compared to an owner operator.

 

[Steve Toburen]

My brother wants to join my venture. He can come in and put up some money to get the ball rolling big time.

The problem is, is this business is my baby that I have been planning for years and I am in complete control of it. ... how should I handle this.

How do other people handle business partners or family partners? Like I mentioned I do want him to be apart of it but I also want to build a future for my wife and 3 kids.

While spending more time with my family and being able to have the funds to take care of whatever life has to offer. I guess the American dream. :shock:

Thanks
:mrgreen:

First, Brent, congratulations on asking the right questions BEFORE you commit yourself to a business relationship fraught with many perils. (My guess is you already foresee this which is why you are seeking answers.)

Of course, it is great that you want to help your brother AND that right now you both have a close relationship. However, I must caution you (as others have done above) that the odds are against both of you IF you enter business as a partnership.

I always tell our members three things re: partnerships in general:

1. Never give up equity. Right now it appears to be no big deal. After all, what is 50% of "nothing", which is what the approimate value of your business is right now! BUT look down the road. One of my best friends is inthe process of selling his company (not in carpet cleaning) for around 7 million dollars. 20 years ago he took on his brother as a partner. They are splitting the sales price yet my friend is by far the more capable businessman and could have done it easily without his brother's help. Bottom line- hire skills and/or borrow money. Do NOT give up equity for either one of these things.

2. Never give up control. You hit the nail above, "this business is my baby that I have been planning for years and I am in complete control of it." Enough said. Bottom line- hire skills and/or borrow money. Do NOT give up equity for either one of these things. (Sorry to sound like a broken record.)

3. Most partnerships are like marriage without sex. All the down side- none of the advantages.

Believe it or not- I have written on the pros and cons of entering a traditional partnership and some much better alternatives. If you (or anyone else) want the info just e-mail me at stoburen@homefrontsuccess.com and put the word "partnership" in the subject line. If you want my free DVD include your mailing address.

I gotta go catch a plane and see how badly Yeadon has screwed up my Langhorne SFS class.

Steve Toburen
Director of Training
Jon-Don's Strategies for Success

PS Of course, Brent, in the final analysis, you must make the decision. But don't let emotions get in the way. There ARE successful family partnerships out there. (Nick and John Paolella of Jon-Don come to mind.) BUT they are few and far between. Sort of like your uncle that lived into his 90's and was a chain smoker for 70 years. How many other smokers crashed and burned in their 50's? You get the idea. Go with the odds.

 

[Jim Pemberton]

I know of very, very few successful partnerships. I know fewer that work with a family member.

One of my favorite quotes:

"Your friends get you when your relatives are through with you"

Cynical? Yes. Often true? You bet.

 

[Jimmy L]

Remember its YOUR passion and NOT his.

He just wants out of his job and wants a piece of the pie.
Its all fine and dandy to have visions of granduer in owning your own business but the fact is this is not an easy business to sustain especially in this econonmy.


Keep your job for now and put the extra carpet cleaning money in the bank.

You have a family to support.

 

[Brian R]

I have been in a partnership with family. Bad situation. I have yet to hear of a partnership at our levels that work. I am sure there are some..Maybe. Look at marriages (partnerships) they don't work. Even when people stay together it doesn't work.
You are better off starting slowly at the bottom or get financing from someone who only cares about the money...that could be your brother. Get a loan from him instead of giving him part of your passion. But even then it can cause tension. Both parties need to adhere to their parts of the agreement which should be spelled out...preferably by an attorney. There are companies that help lending between family members by making it a legal obligation to be paid to the attorney and then he or she pays the relative..you don't want to owe money to an attorney.

Maybe he can be a silent partner but at the end of the day he is family, how silent will he be?

I am so much happier being in business with myself and not worrying about my "partner". That sounded a little gay but you get what I mean.

You may be letting impatience decide for you. Money now is always better than money later. It's the problems that come with that you have to weigh.

 

[RandyHilburn]

Just as a general practice, I wouldn't hire family.

Starting up a full time business may require encouragement and emotional support, so I understand where you're at. However, if your brother likes the idea of starting a carpet cleaning business, encourage him to buy his own truck and equipment. If there are days you guys need or want to work together, it's a one day or single project choice!

In order to have a successful business it takes capital or things could colapse in no time at all - far quicker than the frequently referenced three year average. In my opinion, before going full time (quiting your day jobs) I'd encourage both of you to eliminate your personal debt (except your house), sell your cars (you'll be living in your truck anyway) and save cash reserves of $75K each.

That said, there will quickly be guys on this board that will tell you that they started with far less than $75K. However, keep in mind that the guys who started with less and failed, more than likely aren't even reading this board anymore - so you won't be hearing from them.

Good luck.