Quantcast
Jump to content

Partnerships... enough said right?

ncsvoboda7
 Share

Recommended Posts

ncsvoboda7 Enthusiast

ncsvoboda7

Posted
Posted

So I am entering a partnership and have found there is a horrible stigma out there about partnerships. Just wanted to get some input from your own experiences good and bad? Why have you had good or bad luck with a partnership?

cdhowell Enthusiast

cdhowell

Posted
Posted

I think it is ok if EVERYTHING is put in writing first. The duties of each partner, the return expected from each. Who has the final decision of a conflict. As well as an exit statagy.

weighit Enthusiast

weighit

Posted
Posted

How you going to protect your business should one of you have a tragic auto accident and someone gets killed or seriously injured? What if one of you get divorced and the ex-wife wants her half? How are you going to protect cash that might not hit the books? If you think your both always going to agree your not thinking this through. When only one person is in charge, that person controls the day to day operation as they see fit. When two of you are there it may become a head butting issue when you disagree on whatever the situation was. It sometimes is hard enough when you have a manager that is head strong and wants things done differently than the owner, let alone when the other has his money invested. You also need to write right at the beginning, how it will be divide should one of you decide right away, or 20 years from now they want out. I went through a lot of this when I was contemplating a partner, decided the only partner I wanted was the one I sleep with, my wife. Even then there were some issues we didn't agree on, but since we were married we always worked it out.

ncsvoboda7 Enthusiast

ncsvoboda7

Posted
  • Author
Posted

I'm not asking after I'm working on forming the partnership as we speak and yes that is exactly what I'm doing, paying big money to an attorney to set up a legit partnership that spells everything out before hand.

ncsvoboda7 Enthusiast

ncsvoboda7

Posted
  • Author
Posted

Also if your corporation is set up so that everyone is 50/50 owner of the shares of the business all decisions have to be passed through both owners not just one!

ncsvoboda7 Enthusiast

ncsvoboda7

Posted
  • Author
Posted

Ya I'm nor blindly trusting an attorney I have a lot of experience and a college degree in business so I am also going over everything with a fine tooth comb.

ncsvoboda7 Enthusiast

ncsvoboda7

Posted
  • Author
Posted

If you cannot agree what happens then? In my opinion 50/50 is the worst because no one is in control.

It definitely takes the most discipline and I think that is why people dont like partnerships, people partner just to partner and not because they need what the other partner can bring to the table. You simply have to learn how to compromise for a greater benefit in the end.
ncsvoboda7 Enthusiast

ncsvoboda7

Posted
  • Author
Posted

Here was the bottom line for me. I did not need what the other partner brought to the table but "I thought I needed it". The partnership was my way of dealing with my own lack of experience and my own uncertainty.

Well said and I guess maybe that could be the case for me too but I guess I will never know until I'm a few years down the road with this.
Elon Block Community Regular

Elon Block

Posted
Posted

Nate,

 

You've gotten some great suggestions here. It all boils down to:

What happens if...

 

You say you are meeting with an attorney. Hopefully, it is someone that

specializes in small business partnership arrangements, like you are

talking about, so he/she already has a big checklist of..

What happens if...

 

Here are a couple of real life "What happens if..."

If you are the person in charge of operations and you want to purchase an
alignment machine? Or hire or fire an employee...

How is the decision going to be made?

For example...
My wife and I are business partners and we have clear guidelines we have

developed that help us make the decisions for both of our businesses.

On some things, she has the final say. On others, I have the final say. These

guidelines are based on our individual strengths.

 

So, partnerships can work exceptionally well as long as clear expectations are

set in advance.

 

  • Like 1
John Pearson Collaborator

John Pearson

Posted
Posted

Nate, Like XRAC said you have youth on your side. Trust me I wish I had someone with a bag of money backing me though the addition and expansion that I am going through right now. But at the end of the day when you can sit back and say that I did all of it, I made it happen and it's MINE, thats pretty cool.

Dont be afraid to fail, success is even more scary.

  • Like 1
Hands On Community Regular

Hands On

Posted
Posted

Ya but this all can be solved by simply writing it all out and agreeing on it before hand.

ya I mean just like a treaty right, those always make everything better at that point.

 

The point is at some time there is going to be a conflict and you cant just pull out a peice of paper and expect both parties to go " oh yeah, silly me, i forgot about that" and the problem magcally goes away. And to say that there will not be any problems is to play ignorant. Some of the best marriges end in divorce.

 

Now I am not wishing the worse for you, but by preparing for the worse, we can usually end up surviving it. It is just that a partnership is in my opinion already starting out in a pretty bad spot and there is not a long fall to the worse that can happen.

  • Like 1
Hands On Community Regular

Hands On

Posted
Posted

So say we have a partnership that is properly formed do you guys see pros or just cons in a partnership?

Only cons, if you consider financial assistance a pro then your getting your financing the wrong way. If you see the partner as a pro because he is going to be an employee? he is not an employee, he is a second business owner. One thing that might help is if you described exactly how this partnership is going to function. Are you both mechaincs? Are you both going to be present and working. How much do you both expect to pull out from the business, and how long do you both think it will take to make that money. Are you both depending on this business to pay both of your bills? What do you envision the pro's to be?

  • Like 1

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
 Share
Go to topic listing

  • Available Subscriptions

    See all Subscription Plans

  • Have you checked out Joe's Latest Blog?

    • Joe Marconi
      The Technician Shortage Is Our Fault, And It's Time We Own It
      By Joe Marconi in Joe's Blog
         0 comments
      The Technician Shortage Is Our Fault, And It's Time We Own It
      Nearly every day, I hear shop owners complain: "There's a technician shortage. We can't find qualified people. There's no one out there." If that's true, then who's to blame?
      The industry? The schools? The government? I don't know how you feel, but who promised us an endless supply of qualified technicians?
      Another common complaint is that young people do not want to work in the trades. Well, if that were true, then why are other trades such as HVAC, electrical, and plumbing growing? What are they doing that the automotive industry is not? 
      Here's the reality we need to face: We do have a problem, but we shouldn't look for someone or any entity to rescue us. Not the government. Not the trade schools. Not the recruiting companies. No one owes us a workforce. If we want great people in our industry, it's up to us. At some point, we need to own up to the truth: Building a pipeline of qualified technicians is our responsibility.
      In this blog article, I will break down the key reasons we are in this situation today and what we, as an industry, can do to solve the technician shortage. Are you ready to look in the mirror?
      Have We Pushed Technicians Away?
      Let's take a look at flat-rate pay. True flat rate, which pays a technician only for the hours they produce, is a controversial pay plan that emphasizes high production levels and creates a competitive work environment that, if not properly controlled, can lead to increased mistakes and a decline in morale and team spirit. Additionally, the stress and physical demands placed on technicians as they age are not favorable to long-term employee retention. What do we do with technicians as they grow older into their fifties and begin to slow down? 
      I have heard all the arguments and pros and cons of flat-rate pay, and I am not going to judge any pay plan. Let the facts speak for themselves. True flat rate has changed in most areas around the country and has evolved into a pay plan that gives technicians some pay guarantee.
      Many shop owners have learned that team morale, along with the opportunity to earn income, is important to technicians and to the company's long-term success. But let me ask you: how many technicians have left or been pushed out over the years because of the old flat-rate pay system?
      Another issue is the workplace environment. I remember being grateful to be hired as a young technician at a local repair shop. While very thankful, the work environment was not ideal. The shop owner kept the bay doors open year-round (I am from New York) unless it rained or snowed. He felt that if the bay doors were closed, customers might think we were closed for business. We had no heat and no hot water. Many of the jobs were done outside, year-round,  in all types of weather. The starting pay was minimum wage, with no benefits, sick days, or vacation pay. 
      Now, again, I need to point out that I was truly grateful for the opportunity this shop owner gave me. I learned a lot working there, and the experience was pivotal in my career. But looking back, I wonder how many people were discouraged by these working conditions?
      While the physical demands of the repair workplace are daunting, perhaps even more critical is the culture. Too many of my generation shop owners preached the mindset of "my way or the highway." We were the business owners, after all. We started our companies, took all the risks, and provided jobs. Why shouldn't we be the ones to set the ground rules our way?   
      Many of us found over the years that the "my way or the highway" mentality was a sure way to isolate employees and make them more likely to look over the fence for greener grass. In other words, it led many technicians to seek employment elsewhere, where they felt they could be appreciated and recognized for their hard work. The issue, however, was that there wasn't much green grass around. Disappointment after disappointment, bouncing from repair to repair shop, eventually led to despair. So, I ask you: were workplace conditions a contributing factor in today's technician shortage?
      Another factor that we are all well aware of is the complexity of the modern automobile. When I started, the work was mostly physical, and you were required to master essentially three vehicle models: General Motors, Ford, and Chrysler. Let's fast-forward to today. The evolution of automotive technology, along with the extensive training and tools required, has outpaced the typical technician's pay compensation, with no clear career path. Again, leading to frustration and insecurity about the future.
      Here is the bottom line: people don't leave their job; they leave their experience. We must do a better job. 
      The News Isn't all Bad; Your Next Steps to Fix the Technician Shortage
      To fix the technician shortage, it will take a combined effort from everyone in the automotive industry, particularly automotive shop owners. Shop owners are in the perfect position to make the greatest impact, not only on their businesses but also on the future automotive workforce.
      First, shop owners must become better leaders and understand that their ultimate success is directly dependent on the people they assemble around them. Any shop owner who mistakenly believes they can build an empire solely on their abilities is destined for serious disappointment. Business owners who think like this will eventually plateau. Without the collective contributions from a team of qualified people, your business will stall; it will not continue to grow.
      Create a workplace that attracts top talent: a clean, professional, well-equipped facility designed to support productivity, teamwork, and a career, not just a job. Build a great reputation in your community by getting involved locally. Become the auto repair shop that people take notice of as "the" place to work.
      Next, shop owners must become more financially knowledgeable. Knowing your numbers and what you need to achieve for a strong bottom-line profit is essential to paying technicians the money they need and deserve. Profit will also allow you to compete with other trade industries by providing a benefits package that has real take-home value and security.
      When it comes to culture, this is where the rubber hits the road. People crave recognition, praise, and a sense of purpose. Despite what you hear, people are not just money-motivated. Once people feel secure in their financial situation, retaining and motivating technicians can only be achieved by connecting with them on an emotional level. You cannot show enough appreciation. Give out praise for a job well done as if your business depended on it, because it does.
      As technicians age, we need to have a place for them. Expecting a 58-year-old to perform like a 35-year-old is unrealistic. We need to be more focused on career pathing. Provide training, skill development, and coaching to develop leaders and mentors within our older workforce. While their bodies may have slowed, the knowledge they have gained is priceless. 
      Our future is dependent on young people entering our industry. We need to give more young people opportunities. Every shop owner across the country should consider hiring an apprentice, then build an apprentice training plan and career path for them. If every shop did this, we could solve the technician shortage within five years. Get involved with the trade schools and high schools in your area. Look into the NAPA Apprenticeship Program. Don't sit on your hands with this one. Do it today.
      Lastly, don't get left behind. Commit to ongoing training for all your employees. Keep up to date with tools and equipment tailored to your business model. Don't try to be all things to all people and all vehicles. Identify your core profile customer and the vehicles they drive, and become an expert on those vehicles and the services you offer.

  • Similar Topics

    • nptrb
      Mid-Year Reset: What Your Auto Shop’s Numbers Are Telling You
      By nptrb

      Premium Member Content 

      This content is hidden to guests, one of the benefits of a paid membership. Please login or register to view this content.

    • carmcapriotto
      Stop Hiring in Panic Mode: Build a Recruiting Pipeline for Your Shop [RR 1094]
      By carmcapriotto
      Thanks to our Partners, NAPA Auto Care and NAPA TRACS Watch Full Video Episode Host Carm Capriotto welcomes Chris Lawson, founder of Technician Find, to discuss one of the biggest challenges facing independent auto repair shops today: finding and keeping great technicians.
      Chris explains why many shop owners fall into what he calls "fire alarm syndrome," waiting until a technician leaves before starting the hiring process. That reactive approach often leads to rushed decisions, poor hires, and ongoing turnover. Instead, he advocates for an "Always Be Recruiting" mindset, where shops continuously build relationships with potential candidates long before they have an opening.
      The conversation explores practical strategies for becoming a destination workplace, creating a recruiting pipeline, and building a culture that attracts top talent in a competitive market.
      What You'll Learn Why reactive hiring creates costly staffing problems How to build a bench of pre-qualified technicians before you need them Why becoming "10-mile famous" can help attract both technicians and customers How culture-focused marketing can outperform traditional help-wanted ads The three things technicians value most: respect, growth, and compensation Why sign-on bonuses often fail and how to structure them more effectively Practical ways to engage passive candidates who are not actively job hunting Resources available through Chris Lawson's free online community for shop owners
      The best time to recruit a technician is before you need one. Shops that continuously market their culture, build relationships with local talent, and maintain a pipeline of qualified candidates are better positioned to grow, avoid staffing emergencies, and create a workplace where top technicians want to stay. Recruiting is no longer an occasional task. It is an ongoing business strategy. Chris Lawson, TechnicianFind.Com Love your shop? Stay, but stay ready. Auto techs join to level up, find good shops, and keep tabs on top indie jobs nationwide. Techs only. No BS. Independent Wrench Jobs: https://www.skool.com/independentwrenchjobs Finding Technicians Part 1- Chris Lawson [RR 803]: https://remarkableresults.biz/remarkable-results-radio-podcast/e803/
      Finding Technicians Part 2 – Chris Lawson [RR 816]: https://remarkableresults.biz/remarkable-results-radio-podcast/e816/
      Technician Attraction Blueprint [RR 921]: https://remarkableresults.biz/remarkable-results-radio-podcast/e921/
      Attract, Develop, and Retain Top Automotive Talent [CC 113]: https://remarkableresults.biz/remarkable-results-radio-podcast/cc113/
      Beyond Babysitters: Developing Strong Managers and Financial Transparency [RR 1076]: https://remarkableresults.biz/remarkable-results-radio-podcast/e1076/
      Thanks to our Partners, NAPA Auto Care and NAPA TRACS
      Learn more about NAPA Auto Care and the benefits of being part of the NAPA family by visiting https://www.napaonline.com/en/auto-care
      NAPA TRACS will move your shop into the SMS fast lane with onsite training and six days a week of support and local representation. Find NAPA TRACS on the Web at http://napatracs.com/
      Connect with the Podcast:
      Visit the Website: https://remarkableresults.biz/
      Subscribe on YouTube: https://www.youtube.com/carmcapriotto
      Follow on Facebook: https://www.facebook.com/RemarkableResultsRadioPodcast/
      Follow on LinkedIn: https://www.linkedin.com/in/carmcapriotto/ Follow on Instagram: https://www.instagram.com/remarkableresultsradiopodcast/ Join Our Virtual Toastmasters Club: https://remarkableresults.biz/toastmasters Join Our Private Facebook Community: https://www.facebook.com/groups/1734687266778976 Join our Insider List: https://remarkableresults.biz/insider All books mentioned on our podcasts: https://remarkableresults.biz/books Our Classroom page for personal or team learning: https://remarkableresults.biz/classroom Special episode collections: https://remarkableresults.biz/collections Buy Me a Coffee: https://www.buymeacoffee.com/carm   The Automotive Repair Podcast Network: https://automotiverepairpodcastnetwork.com/ Remarkable Results Radio Podcast with Carm Capriotto: Advancing the Aftermarket by Facilitating Wisdom Through Story Telling and Open Discussion. https://remarkableresults.biz/ Diagnosing the Aftermarket A to Z with Matt Fanslow: From Diagnostics to Metallica and Mental Health, Matt Fanslow is Lifting the Hood on Life. https://mattfanslow.captivate.fm/ Business by the Numbers with Hunt Demarest: Understand the Numbers of Your Business with CPA Hunt Demarest. https://huntdemarest.captivate.fm/ The Auto Repair Marketing Podcast with Kim and Brian Walker: Marketing Experts Brian & Kim Walker Work with Shop Owners to Take it to the Next Level. https://autorepairmarketing.captivate.fm/ The Weekly Blitz with Chris Cotton: Weekly Inspiration with Business Coach Chris Cotton from AutoFix - Auto Shop Coaching. https://chriscotton.captivate.fm/ Speak Up! Effective Communication with Craig O'Neill: Develop Interpersonal and Professional Communication Skills when Speaking to Audiences of Any Size. https://craigoneill.captivate.fm                                          Click to go to the Podcast on Remarkable Results Radio
    • Joe Marconi
      Why You, an Auto Shop Owner, Should Consider Coaching
      By Joe Marconi

      Premium Member Content 

      This content is hidden to guests, one of the benefits of a paid membership. Please login or register to view this content.

    • Riccardo
      If you had to step away from your shop for 30 days tomorrow, would your business continue operating successfully without you?
      By Riccardo

      Premium Member Content 

      This content is hidden to guests, one of the benefits of a paid membership. Please login or register to view this content.

    • Riccardo
      Why Are Modern Vehicles So Expensive to Repair?
      By Riccardo

      Premium Member Content 

      This content is hidden to guests, one of the benefits of a paid membership. Please login or register to view this content.



  • Joe Marconi

    Marketing Strategies To Attract and Retain Your Ideal Customers

    By Joe Marconi, in Automotive Marketing,

    1 comment 7,923 views
    Joe Marconi

    Every shop owner tracks gross sales. But is that really the number you should be focused on?

    By Joe Marconi, in Joe Marconi's Tips and Articles,

    0 comments 1 33 views
    nptrb

    Mid-Year Reset: What Your Auto Shop’s Numbers Are Telling You

    By nptrb, in Automotive Management,

    0 comments 2 views

  • Our Sponsors

Main Sections

More Sections

Discussion Forums

×
×
  • Create New...