[richywilts]

as you all know i work alongside steve78 that comes on here at the moment he just works for me but hes not long moved back home from nottingham and we used to talk about going into partnership. at the moment ste hasnt got any funds to invest but i know what his strengths etc are and what he can bring to the business in taking it forward we compliment each other.

just after a bit of advice in which way you all think we should turn the business into a partnership regarding the fact he has no money to invest. i was thinking of going limited offering a smaller percentage. and what sort of value you would put on the business at the min iv worked hard to get my round at good prices averaging £19-20 a house on some rounds

just to give a rundown of what he is coming into at present i have

a window cleaning round which has been going for approx a year and half thats growing constantly  brings in roughly 2000 a month turnover which i want to double in next few months

56 vauxhall vivaro signwritten with an ionic pro 5 650 litre system with ionic glyder pole, brodex prolong speedlined with pole rack

a professional website

a 53 ford transit

2 honda 13hp pressure washers, rotary cleaner

omnivac gutter vac

graco airless sprayer

industrial steam cleaner

currently rent a unit with a portakabin as office

lots of stock of leaflets etc

there is no finance at the minute on any equipment

we are hoping to build up a large company with  seperate umbrella business i.e window cleaning business, roof coating business, kitchen deep cleaning

or would you all just rebrand and have it all under one name??

any advice would be appreciated

[Clive McDonald]

That's an impressive list after a year, so well done. I can't see an easy answer to your question though.

[ftp]

£2000 a month? Is that between the two of you or have I jumped the gun?

[richywilts]

no ste just been workin a bit part time

[ronnie paton]

richy you do have an impressive portfolio of equipment.

i guess you do other work??

nowonly you know the value of this person to your business but persoanlly i would not be making him partnr just yet, i wold give him a % of profits and increase that the more he brings in.

Though Richy i would be intrested in  chat some time.

[Sean Dyer]

tbh although you have done well


your round isnt even full for one guy yet richy

at present you are offering half a van half your tools and £1k a month 12k a year before tax and expenses as a business

Im sure from looking at your posts and seeing your websites you aredoing and are gonna do well richy but at present i wouldnt personaly want to lose half of what still is a business under  construction

but if you think he is a good man to have on board then maybe it will help in the long run

maybe decide what figure you think its all worth if you were to sell now then half that and take it out of his dividends till your paid back???

[richywilts]

anytime ronnie av u got me number

[richywilts]

thats exactly how im feeling sean i know that im not even half way to where i want to be, but i know how ste feels about wanting to come on board. i know my business isnt worth a great deal at the moment on sales etc but if two of us wer pushing it forward then i think it would get to where we want it to be. stes more hands on im more into more admin side of things.we just keep on talking about it and never getting anywhere iv said to just maybe see how the business builds over the next year

[ronnie paton]

is that number on website?

[richywilts]

yeah mate its 07894 821844

[Clive McDonald]

You've got a good balance sheet but a poor profit and loss account.


Other threads on here say all partnerships end in disaster.

[richywilts]

steves good at sales worked in finance company selling car finance and as a holiday rep, hes great with the customers and hes hands on technical when any problems arise with the pumps or if theres a problem with pressure washers or any machinery hes hard working hes my best mate and im going to be best man for him in july.hes built up the knowledge etc of what all the waterfed pole window cleaning is etc and i trust him with anyfin.

where as im more of the organised one happy to get work coming in know a little more about running a business im more strategic and methodical enjoy dealing with paperwork etc

were both ambitious and want to grow the business we dont just want to have a window cleaning round.

[Gav Camm lammy 283]

hard one to answer as most av said rich as hes yr best m8
u may feel obligated to him sum ow yr getting a lot ov business n growing
which is all time n effort on yr part id say wiv his lack ov funds etc
75 per cent you 25 per cent stev grow that on new business if u get me
 hope this helps ,gav

[Window Washers]

50/50 then, but he owns you the current value of the business today.

Good luck.

I would agrree with Ewan, but I would want the value plus interest on fixed month payment under contract, mates are mates, business is business. Money and mates gets messy, trust me I lost my best mate as greed by him took over, he was like my brother aswell 

[Alistair@AWC]

Richy,

I know everyone says business and mates don't mix but I set up a business with my best mate.

And when I say best mates, we really were - spent 24/7 with each other, never ever argued or fell out always had a great laugh.

We broke the business up 7 years ago and guess when was the last time I spoke to him.......... you guessed it 7 years ago!

My best advice is really really dont do it. As you said he's hands on and you prefer the admin side - or as he'll see it a couple of years down the line, he does all the hard work and you just sit on your arse & resentment will creep in!


But I suspect you've already decided and think that it'll be different for you 2, so the best thing I can recommend is to give him nothing now (pertcentage wise) but put a value on any new business he brings in i.e. 2x a clean and allow him to buy in this way.


Even with this I doubt it'll work out, but I hope it does and wish you the best of luck

[daztheger]

if you've got this business built up and its growing why not offer a bonus to ur m8 rather than half ur company . i bought into my best m8s run 15 months ago (his bro was his partner b4 me) , a good business with 3 full time employees and it turned to poop. only today have we agreed to part company with him goin in a different direction and me taking over the business .

[James Smith]

If he's such a good salesman put him on commission, his reaction to that alone should tell you whether or not it's a good idea going in with him. IMO.

[richywilts]

he doesnt want to be involved in sales really he happy goin out cleaning at min and he does it well to be fair

[James Smith]

Why cut him in then? Pay him for his work, give him a bonus if you want...

If you want to keep him enthusiastic offer him a %, verbally!

[James Smith]

Agreed Ewan, but it's his mate & he has no money to invest, alarm bells are ringing in my head...