Forums: Discussions for entrepreneurs and small business.

I just shared my startup idea with a good friend of mine and he absolutely loves the idea.  He wants to come into the biz with me but I have my doubts.

Do any of you guys have any regrets with taking on a partner?  Do any of you wish you went at it alone?

My friend and I both have strong personalities, and have had some tiffs working together in the past.  He does have lots of experience in areas where I could really use help though.  I`m really afraid of losing control of my idea and ruining a friendship.  I have lots of doubts.

I`m just at the point where I could really use some help though.  If I take him on as a partner... would it be bad if I had more of a share in the company than he does i.e. 60/40 or 70/30?

What do you guys think?

Please chime in...

thanks.

-------------------------

calvin1214@hotmail.com

A Partnership is like a marriage.  If you guys are friends I wouldn`t recommend making him a partner.

I would suggest telling him to start a `consulting company` and paying him through there.  Maybe you can have an agreement written up where if you sell the company then he gets 30% etc... 

You`re right in that you`ll want to keep control, because 50/50 can quickly end in a mess.

- Bryan

-------------------------

Bryan C. Fleming

http://www.BryanCFleming.com

Calvin,
It seems like you are at a point in your life where a decision needs to be reached asap. Some things you need to take into consideration are; who`s business idea is it? did you guys both come up with the idea or did you mention it to him. The reason why I am asking is because this will lead to your answer. Secondly, which of you has deeper pockets, and is doing all the research and will most of the cash down?

Third, If you are get a gut feeling or are skeptical, most obvious you don`t want to bring him in.
Finally, It`s better to preserve a friendship.. What you can do is if you are considering bringing him in offer him 10% of the company to begin, to see if he is putting as much into it as you, then if you feel like you want to give him more, have it in writing and offer him more. Try not to go 50/50 or 60/40..
I had a terrible business partnership experience when I was 21, forcing me to never again bring in friends or loved ones..INTO business

-------------------------

Edgar Monroy
Web Developer / Owner / Consultant
When starting your own business the need to "know-how" is greater than money!
http://www.nuevolution.net

well... the idea is mine and the bplan is mine.  he`s a just a good friend that i shared my idea with to get feedback.

it sounds like including friends/family into your biz is a bad idea from what i`ve been reading.  how do partnerships work then?  i want to find a long-time partner to help me get this project off the ground who i can trust.  do most partnerships not begin with friendship?

based on what you guys are saying... it sounds like the best idea is to go solo at this...

-------------------------

calvin1214@hotmail.com

I would agree with Bryan
Hire him as a consultant.  If you loose control of your idea ... you may find yourself working like a dog for something you don`t believe in.  It can be a nightmare.

You can always become partners later, or some other consultant may join you.

Well if the idea is yours,
Just tell him you want to bring him in as a partner but, that he is limited to decision making and what goes on with the company. But before you can bring him aboard put him through simple tests. give him a project and give him a dead line.. for example, tell him something like, Well since we are going into business, I need for you to come up with a brief marketing plan with a dead line of 4 days(remember it`s brief) then tell him we will sit down and discuss your strategies on the date given.. This is where you will find out if he is going to bring something to the table!!!
Let me give you an example of what I did to weed out the good from the bad, I gave my so called to be Vice-President of the company a simple task to develop a brief marketing plan for the company as to how we where going to approach the business growth and how we were going to compete against companies such as "GoDaddy" and other registrars and hosting companies, my man! it`s going on two weeks now and he hasn`t had the decency to call me and tell me, hey I had a problem or check your email. But let me tell you when we where at the meetings, I couldn`t get him to shut up and let others speak. Somehow he had all the solutions in his hands... (yeah right!!!)

Don`t learn the hard way, what gets me the most i s he "was" supposed to be the vice-president. So my best advise to you is, go in it by yourself, yeah starting a business can be overwhelming and scary at first because it`s unknown territory to you, but in the long run you will learn as you go and realize it was better that way.
Now if you`d like start an LLP, limited liability Partnership and take it from there.

-------------------------

Edgar Monroy
Web Developer / Owner / Consultant
When starting your own business the need to "know-how" is greater than money!
http://www.nuevolution.net

What does he bring to the table?  If he`s just got "hey, that`s a great idea" and nothing else, then find your "business support" here or somewhere else.  Unless he has skills to get the business off the ground that are equal to yours, then just let him be a "cheerleader" or hire him to consult. 

I read something in a business book once that said, "Never take on a partner when an employee will do".  That was excellent advice.  Hire him through some other means, but I wouldn`t take him on as an equal unless he really fills in your business gaps. 

All great advice.

I had a partner with a rest. 14 years ago, worst mistake ever.  He lied, He had stolen money.....  I`ll stop there.

One thing I learned that I seldom hear, 

 no matter what, one of you will feel they work harder than the other, heck maybe both of you will, and that is just the beginning of the end. 

I say take him on as a 50/50 partner, so when the next persons asks, you can jump in line with us and tell`em why you wouldn`t.  JK!!

I did like the one idea.  Give him a little and if he earns it let him have more, 

The test  also sounds like a great one.  the future marketing plan test will allow you to find out about his vision amoung other things.

MIke

Mike, Thank you. for the comment.
The reason behind putting your partner to the test is to see, if he can carry his own weight. Once your business starts to pick up you are going to find out real soon that 24 hours is not enough to run a business and to keep all customers happy. The least you need is to be baby sittting.
If baby sitting is what you are going to end up doing might as well open a day care.
Mike, my situation was different. While I was putting in 18 hour days my partner was busy trying to date all the female clients and passing himself as the owner.
Not only that but I would find myself working longer than him. So I finally told him one day that he wasn`t performing up to his responsabilities and I cut him loose. You know where the worse nightmare came into play. I had registered with the IRS, as a partnership, used my social security and it became a mess. So to make the story short.
Calvin, you have a big family now "THE SUN" family. You will see that you will get great advise here. So don`t hesitate.. Go for your dream

-------------------------

Edgar Monroy
Web Developer / Owner / Consultant
When starting your own business the need to "know-how" is greater than money!
http://www.nuevolution.net