Long story short I started a carpet cleaning and window cleaning company a few months ago. I got recruited by another’s local company that has nicer equipment than me for the carpet cleaning side. The main guy has his hands full with a landscaping company so he recruited me to run the carpet and window cleaning as an eventual 49% owner. I also am bringing in another company’s client list and phone number that does around 80k a year. Problem is I didn’t have the van and truckmount my partner currently has or the money to front for it. After using it for two weeks I discovered his equipment has been neglected and is not as pristine as he said, same with his current client base. (He had his knucklehead cousin running everything for the past few years so no returning customers). We haven’t signed anything yet and it’s been two weeks. Any advice from the forum? Should I get out now? The original guy I got the client list from said I could use his equipment for the time being. There’s a bunch of other factors but this is the gist of it. Also I am doing everything except billing. So the marketing side, answering the phone, doing the job, following up etc. He just owns the equipment. I own a portable system.
I likely would.
You basically just dont have the needed equipment?
I’m in the process of simplifying my business structure and it feels really really good. That said, this partnership sounds too complicated. If I were you I’d ask myself if the extra income is worth the headache.
I don’t know, are you into sadomatcism?
Yes. But I potentially can get the needed equipment to get me through temporarily
My gut tells me you’re getting taken. You’ll be overworked and uncompensated and after a few years of basically doing all the work as if it was your company without the benefits of it actually being yours you’ll reach a breaking point. And yes, while it was (supposedly) his cousin’s fault for bauching things up, it’s his company so ultimately his responsibility. It sounds like you and him have different values and I foresee that that will cause issues eventually. If you have other options, you should strongly consider those imo.
you should only go into a partnership if you have the same goals, ethics, the same skin in the game, you are looking out for each others interests and you enjoy each others company.
49% means you can be terminated and lose all basically.
Maybe he would consider selling his equipment to you?
So we broke up today. He’s a good guy. I offered to work as an independent contractor for future work with his company as I build my own. And if I have a job where I need his equipment I can use it and pay him out. His jobs he’ll pay me 30%, my jobs I’ll pay him 50%
The current arrangement does not sound beneficial to you.
I would gracefully bow out of your current arrangement and get yourself setup.
That was quick
Those % amounts should be flip flopped.
My attorney let me know that 90% of partnerships fail. That being said maybe you could offer to buy his equipment on terms.
Basically you are an employee. Get out!!