Myself and a partner operate a small carpentry company. We work primarily as subs for big builders, but also act as general contractors on our own jobs from time to time. We each have our own crew, and have not actually worked on the same job together for quite some time. The problem is that I feel we should work 10-13 hour days and he feels 8 is enough no matter what. For example currently I just finished framing a 7000 square foot home, and he is doing the exterior trim and siding on a similar sized home. I kept my job on schedule and finished in the time I had planned, I sometimes stayed until after dark to be sure that I would get the job finished. At the same time I would take on smaller jobs and get them completed. My partner is way behind schedule and feels no pressure to speed up or stay late. He is a hard worker, but has no wife or family to provide for and is maybe not as hungry as myself who has a wife and two kids. We split everything 50/50. I have found us every job we have worked on. He handles all of the banking and payroll. He is the most honest person in the world and he is basically a part of my family. I am thinking of splitting from him and operating a seperate company, we could still have the same working relationship, but I would be rewarded for all of my hours, and he would not feel so pressured to keep up. What are your thoughts on partnerships? I need to do something about the situation before it affects our friendship.
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Can't really help but have one Q: You said: >> He handles all of the banking and payroll. << Are you sure, when you are estimating the time he is putting in, you are giving a accurate estimate for his time on the book work?
nobody should be working more than 8, quick way to kill yourself. it be ten tomorrow 12 the next day and then 17 the follow week. You need to base the work week on 40 (8) and enjoy life.
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Haga su trabajo de fricken
Dear Captn self destructo,
How hungry are your wife and kids for their dad?
Lighten up. Pad your schedule, quit paying OT. Stop setting your partner's schedule to your work habits.
From a strictly fiancial viewpoint, both of you need to change that "split everything 50/50" to paying yourselves an hourly wage and leaving the rest in the company for the company's sake. At quarters end, do a paper split of the increase in owners equity for taxes.
Besides making your company a business and not just a self owned job, that would make you personaly would feel better knowing that your "take home" was 25% - 50% higher than your partners'.
SamT
Edited 9/12/2007 7:39 am by SamT
"From a strictly fiancial viewpoint, both of you need to change that "split everything 50/50" to paying yourselves an hourly wage and leaving the rest in the company for the company's sake. At quarters end, do a paper split of the increase in owners equity for taxes."
This is what we have been doing for almost 30 years. We have never had a problem with partners contributing equal hours, taking extended time off, etc. We have a requirement in our partnership agreement for a minimum of 20 hours per week average over the year.
I also agree that production hours should be limited to 40 hours in general. Sales, paperwork and the rest will run up enough extra time even if you are very efficient
All very good points, I appreciate all of the advice. I have been told by many that I put in too much time, and have listened to some extent, I now delegate much of the heavy lifting and physical work to others. I will not stop working all of the hours, but I am always looking for ways to work smarter. I have been told to work less and charge more. To me that translates charge more work more.
Work less and charge more is not a good equation in my opinion because the more you charge, the more "face time" a customer may expect. I tried that for a little while until a homeowner starting giving me verbal "hints" of what they expected of me by saying things like... "Half a day today??" "Do you have more than just my job to worry about", etc.
Partnerships are tricky. Very tricky. if you guys know, going in, than on a certain project you would be clocking more hours, then talk about (since you say you are close) not a 50/50 transaction, but more of a 60/40 or something like that. Key is communication. If you can talk to your partner, then that is half the battle, and dont keep things bottled up. If you are busting your tail, and your buddy is in the truck on the cellphone with the lady, time to speak up.... that sort of thing.
You need to lighten up a little, 4 years ago I was working about the same way, I would work some times 2 or 3 days in row with out sleep.
All I wanted to do was get things done on time, with the least amount of help to make the most amount of money. Then my family, but most of all your body will win in the end.
I ended up being being put on meds and taking a long vacation. The dio. was Post Tramatic Stress Syndrome.
I found a guy to run my crew and incresed the size of my crew. Am now off meds and working 8 Hrs. a day, and making more money.
Just realize that people don't run on your time schedule, and maybe it's time to combine the two crews into one big family.
I hpoe this helps.
Nailer
Ok, good partnerships are much like a good marriage, one is always going to fill in or do more than the other. The difference is in how you view the other person overall.
If you fell three floors tomorrow and got a really bad boo boo, would your partner begin working 16 hour days? etc.
Like marriages, most partnerships fail based on financial matters as you are leaning towards.
The best solution I have ever experienced can be summed up two similiar ways and I also must excuse myself from any accounting liability. The following senarios are for general discussion and should be ran by your accountant/attorney before proceeding.
Now with that said........
Incorporate if you haven't already. Find out the going hourly rate in your area for the type of quality service you provide. Next, pay yourselves for every hour you work whether it's swinging a hammer, giving estimates, closing a sale, sweeping the deck, washing the truck, oiling the nailers, doing the books.
End of year you have two choices, if you are equally financially invested in the company and carry the same risks, then split the profits equally and have it paid as a dividend thus no Social Security will be deducted. In this scenario if you break your neck, you still get half of the company profits at year end for building a fine company.
2nd choice at end of year, split profits based on number of hours worked. One of you ends up disabled, tough.....
Pedro the Mule - never carrying all my marbles in one poncho.....