CLA Connect Open Forum

1.  How to form a partnership

Posted 5 days ago
Hello

I am planning to get into this business with a partner. He would be “the money” and we would probably pay cash for an existing store. I would be the management. We plan to buy multiple stores over the years.

Has anybody done this and how did you arrange the partnership in terms of ownership and responsibilities etc?

Thanks

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2.  RE: How to form a partnership

Posted 5 days ago
That's a slippery slope my friend.

 Partnerships especially with laundromats rarely succeed.  Too many variables.

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Juan
Store Owner/ Employee
Cocoa FL
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3.  RE: How to form a partnership

Posted 5 days ago
I have a friend who is fond of saying...the first ship to sink is a partner-ship.

You will be bitter you are doing 'all the work' while he 'just put up the money'.

The Partner will become bitter that you have no skin in the game....he has all the risk with only 1/2 the reward.

How will the partnership be structured if the business plans fails?  Do you 'owe him'.

I had a partner once in another business.  Never again.

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Ronald Hogan
Store Owner/ Employee
Shoreside Laundromat
Revere MA
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4.  RE: How to form a partnership

Posted 5 days ago
Everyone here is correct! Partnerships end in disaster. Very few exceptions.

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Curt Harrington

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5.  RE: How to form a partnership

Posted 4 days ago
I have a partnership that has stood the test of time (20 years) and
has been lucrative for both of us.  We both understood what our
roles were in the partnership, we have always communicated, and there was a
level of trust that has never wavered.  It is possible but you need to know your
partner.

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Rick Woodroof
Store Owner/ Employee
Richard Keane Woodroof
Slidell LA
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6.  RE: How to form a partnership

Posted 4 days ago
^^ that is so the exception & not the norm.

 And you didn't provide specifics as they relate to the OP.  Is your partnership such that you or he put in all the money & the other party just did the work?

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Juan
Store Owner/ Employee
Cocoa FL
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7.  RE: How to form a partnership

Posted 4 days ago
Partnerships can work.  BUT it is a partnership.  You must both be brutally honest and spell out everything.  In this manner, you will both be aware of the others position.  Return on investment structure. Labor value consideration.  How to separate.  It is a marriage where divorce NEEDS to be considered up front.

Spell out things such as disputes where expectations do not align.  For example, what happens when the Moneyman is not satisfied with return and 'blames' management? Too many vacations, need for additional labor, growth not sufficient?  Flip that to the Labor side feeling not enough investment into the important areas of the business?

If you honestly walk thru lots of sceneries were there WILL BE disagreement ahead of time, you'll be prepared when there is a disagreement.  That said, you will also be happy when none, or few of the sceneries arise.

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Timothy Foster
Multi-Store Owner/ Employee
Toledo
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