I sold my car wash last month to 2 partners. The cash component is in the 150k range. I wonder what the odds are that 1 partner ends up doing more work than the other, becomes resentful and starts pocketing extra cash from the split. I didn't know if anyone had info on how partnerships worked out. I kinda think it would be a recipe for disaster.
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partnerships working out
- Thread starter celica
- Start date
washnshine
Well-known member
A properly set up business should not allow anyone to be able to “pocket extra cash” without it being noticed. Same would hold true for an attendant or any employees.
soonermajic
Well-known member
Celica is onto something. You guys aren't that naive, I know.
business partnership is like a marriage. everything seems great and agreeable in the beginning but as time goes things can change. unfortunately many partnerships need a divorce but financially may take years to figure out how to. i think a smart way to enter a partnership is to have an agreed on contract of how to end the relationship after 1,2,3…. years before committing to the partnership.
Look at this on a larger scale. GM, IBM, and 3m are just big partnerships and they seem to do fine. Maybe with just two there aren’t enough ideas to make it work, but it certainly can. Wilbur and Orville proved that. Just thoughts from an older guy who enjoys Irish whisky. Stop by my wash on St. Patty’s day and I’ll show you.
Greg_T
Well-known member
A slightly different perspective.....
My father and I are business partners in our auto workshop, which is our primary business. The carwash is a good little business, but definitely secondary.
In the auto workshop, being partners definitely has some advantages:
- Two people that can make the key / urgent decisions, so that if one of us is away, then the other one can cover.
- For big and difficult decisions there is someone else to discuss with and come to a better final decision.
- Two people bring a broader range of skills and experience to running the business. For example, my Dad has extensive automotive experience (50+ years) and I have skills in admin, accounting, technology. So when we combine our skills and experience it is a much stronger basis to run the business.
Some difficulties:
- Inevitably people disagree, and each partner has to find the right time to back down and be willing to compromise.
- Partners will each take on a different workload, which can create friction. I think it is key to just recognise that each partner will bring something to the deal and live with the fact that each partner is contributing something valuable.
The list of pros and cons could go on and on, but I think it is worth recognising that there are both good and bad this will come with partnerships. I think that there are really good things that can come from partnerships if each partner is willing to be flexible and compromise.
I like the idea of a partnership, but there would be a very small number of people on the planet that I would be willing to partner with.
My father and I are business partners in our auto workshop, which is our primary business. The carwash is a good little business, but definitely secondary.
In the auto workshop, being partners definitely has some advantages:
- Two people that can make the key / urgent decisions, so that if one of us is away, then the other one can cover.
- For big and difficult decisions there is someone else to discuss with and come to a better final decision.
- Two people bring a broader range of skills and experience to running the business. For example, my Dad has extensive automotive experience (50+ years) and I have skills in admin, accounting, technology. So when we combine our skills and experience it is a much stronger basis to run the business.
Some difficulties:
- Inevitably people disagree, and each partner has to find the right time to back down and be willing to compromise.
- Partners will each take on a different workload, which can create friction. I think it is key to just recognise that each partner will bring something to the deal and live with the fact that each partner is contributing something valuable.
The list of pros and cons could go on and on, but I think it is worth recognising that there are both good and bad this will come with partnerships. I think that there are really good things that can come from partnerships if each partner is willing to be flexible and compromise.
I like the idea of a partnership, but there would be a very small number of people on the planet that I would be willing to partner with.
Waxman
Super Moderator
I could see the right partnership working out really well for me personally. I feel like my business could grow by leaps and bounds with someone else besides me being the motivation behind every decision, project and idea.
I was in a partnership decades ago that did not work out. It was a family business and quickly became two against one, me being the one. When the two partners have different visions of the business and different ideas about pricing and Other important business strategies, it makes it very difficult for the business to survive. Mine almost didn't make it. The Partnership ended rather abruptly and I had A choice to either pack it in and go get another job or try to make something from what was left. I chose the latter and grew the business into something I'm really proud of.
I was in a partnership decades ago that did not work out. It was a family business and quickly became two against one, me being the one. When the two partners have different visions of the business and different ideas about pricing and Other important business strategies, it makes it very difficult for the business to survive. Mine almost didn't make it. The Partnership ended rather abruptly and I had A choice to either pack it in and go get another job or try to make something from what was left. I chose the latter and grew the business into something I'm really proud of.
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That's why we have employees.
jprb
Member
A partnership can work out just fine. About 3 years ago, my business partner of 23 years, and I, separated on good terms. I bought his share of the business. For about the last 7 years, I was drawing a wage to maintain and upkeep the washes (service & trash technician), and then we each drew an equal monthly disbursement. When we started the business, lots of people told us (separately) that partnerships never work out. In our case, it did.
