In the process of buying a self serve car wash plus the real estate in Houston. Partner would assist in maintaining car wash. No cleanup involved (current owner has someone who does this-would keep worker). Business grosses 12-14k a month. Loan for business/real estate would be in both names. Let me know if interested. Would like someone who is handy and knows about car wash equipment.
Looking for a partner.....
- Thread starter rightsal
- Start date
pitzerwm
Active member
IMO, the only reason for a partner is that you need their money or brains. The only ventures that I ever lost money on were the ones that I had partners. Maybe its just me.
Waxman
Super Moderator
IMO a partnership is the worst form of business.
I muddled through a partnership and as a family business for over 10 years. It was awful. I won't elaborate too much on this, but I would never ever in a million years form another partnership.
If you still insist on forming a partnership (but please do not!), clearly spell out everything in a written partnership agreement, including separate duties, responsibilities, and exit strategies.
Remember, in an equal partnership, when it comes to making a decision, all 'yes' votes must be unanimous and 1 yes and 1 no = NO. This is critical and must be considered. It's hard to float a great idea if one partner disagrees and that is not only frustrating, it can stifle creativity and impede financial performance of the company.
I muddled through a partnership and as a family business for over 10 years. It was awful. I won't elaborate too much on this, but I would never ever in a million years form another partnership.
If you still insist on forming a partnership (but please do not!), clearly spell out everything in a written partnership agreement, including separate duties, responsibilities, and exit strategies.
Remember, in an equal partnership, when it comes to making a decision, all 'yes' votes must be unanimous and 1 yes and 1 no = NO. This is critical and must be considered. It's hard to float a great idea if one partner disagrees and that is not only frustrating, it can stifle creativity and impede financial performance of the company.
A partnerships seldom works. However, in some special situation it might. Of about 20, I have never found one that did not steal, get greedy, quit working, become too smart for the job, have a romantic affair and ruin the partnership, go somewhat crazy, and lastly but not least leave your business to go into competition down the street from you. They always never seem to find another town, but rather go down the street to out do you. I am omitting many options such as wife interference, health porblems, gambling, lunacy, and down right meanmess. How quickly a partner forgets why he needed you should be written into a geat No 1 seller book. Just a little look into reality!
chadrpalmer
Member
dave ramsey says the only ship that wont sail is a partnership
pitzerwm
Active member
I agree on the structure "Partnership", but if you need brains or money a partner is a good choice, sometimes. Do an LLC or a Corp. I also always get the divorce in writing before I do the deal. I know that one way or another, this too will end someday, and you better have that exit strategy in place upfront, it makes it work better longer.
Rudy
Active member
Although I am NOT a lawyer, and you need to get your own legal advice, it's my understanding that the worst business arrangement is a GENERAL Partnership. I say skip the partner...but if you insist...set up a LIMITED Partnership, but do not enter into a general partnership. If I understand things correctly, in a general partnership, one partner's liabilities can flow to the other.....so...if your new general partner racks up lots of debt, the creditors can, and will come after you! In a Limited Partnership, your liability is LIMITED.....
"Danger Will Robinson...."
"Danger Will Robinson...."
ted mcmeekin
Fast and Clean
- Joined
- Aug 30, 2007
- Messages
- 412
- Reaction score
- 1
- Points
- 16
I have a bias against partnerships as I have not seen one work real well. I was a limited for a small real estate project that did not do well. Market changed and the General Partner did not have the gonads to take tough action and stop the bleeding. He hung on for 15 plus years as he had many of his relatives on the hook. We finaly broke even but a good businessman could have found as exit that made more sense. He was happy he returned all the principal but the fact that our money was tied up for 15 years was lost on him. Also carefully review tax consequences of your structure. I have a friend in this business who formed numerous LLC's and that is fine if you never make any money but now that the business are doing OK he realizes the big impact on his tax bill. That's why we formed a subchapter S--in our state that makes a huge difference but I don't have the same protection as LLC so we will need make this work.
Ted
Ted
Ted
Ted
madscientist
Member
well, since everybody is giving advice that you didn't ask for, i'll add some: don't get married either. all the same reasons apply, especially the one about including family members.
pitzerwm
Active member
Well, since we all know that you shouldn't be sleeping with the employees, that excludes hiring the wife. or in most cases her sister or mother
)
)
Hi : I just got a partner so I can open a new carwash. He put all the money, andI take care of all operations. I m the captain on the boat, we have a 50%-50% deal. So far relationship goes fine. Not a problem at all. Once a month we check the accounts, and split our profit. We do have an agreement ( went to lawyers for that).
By the end of the year we may open a newcarwash in other city
regards
Renato Rios
By the end of the year we may open a newcarwash in other city
regards
Renato Rios
pitzerwm
Active member
I would NEVER do 50/50 even if I had to give 1% to the lawyer. Neither one of you has the right to veto the other if there is a disagreement that you can't work out.
