New Route With A Partner

[Johnny Ringo]

I am thinking about starting my own vending route. I have been doing a lot of research. I was telling a friend of mine about the industry and he is very interested, as well. He even came with me, today, to look at some used vending machines.

Now we are thinking about doing this together. He has a strong background in sales and a good business mind, so I feel he would be a good asset. I also have a sales background, as well. Anyways, what do you think about us being partners. Obviously, we would have to split the profits, but we would be able to split the expenses and work, too.

Thanks,

Johnny Ringo

 

[g_r_vending]

Has worked very well for me so far, as my partner has some stenghts i dont have and vice versa, even with a friend you should get something down on paper that you both sign in regards to what % each owns, and you should make things leagl with a dba.

[Johnny Ringo]

Good for you g r vending. Thanks for the input.

[alyssamma]

Johnny, the one piece of advice I will give you is that often people who are friends do not work well together. Just make sure you can separate business issues from personal issues

Kevin

[sterling]

A partnership is like a two headed monster. One of the heads isn't necessary.

Meaning someone always does most of the work. Which makes the situation not a good one in the end. Having said that, partnerships can work, just make sure everything is written out so if there is a break up there is no hard feelings in the end.

Best of luck to you.

[Johnny Ringo]

Yeah, I'll make sure we have something written out if we do it. Also, he's more of a co-worker than a friend. We are mainly just friends at work. I don't know if that is good or bad.

[nam]

It could work out but the odds are against it. As far as I'm concerned, you're better off to do this on your own. Be your own boss, make your own decisions and you either benefit or you don't based on what you have done. Not what your partner agreed in a compromise to do! In some cases to heads are better than one but not in a small business. Maybe a silent partner that lets you make the decisions and they just invest money for a share. The failure rate on new small businesses is bad enough but partnerships just make it worse. There should only be one captain of the ship - not two unless you want to run aground.

nam

[reel]

i have been involved in a number of different small businesses over a period of nearly 30 years, and still am involved in 3 including vending.

all i can do here is totally endorse what kevin, sterling and nsm has said above, from my experiences i can only agree.

[bcron]

I am not speaking about vending together, but I can honestly say that I have known several people, including family members who have gone into business with friends or other family members. I cannot think of one that has not negatively affected the friendship or family relationship. My thoughts are to never go into business with friends or family. Just my $.02

[Johnny Ringo]

I'm starting to see an overwhelming consensus here: Don't go into business with friends and there is no need for a partner!

I really appreciate all of your insight. I will rethink the topic and will much more strongly consider doing this on my own.

My potential partner doesn't really have any funds to contribute financially, anyways. I am interested in having him in order to help find locations because of his strong sales background. Do you think that having him work FOR me to find locations would be better than having him as a partner?

[nam]

Johnny,

Yes, pay him to locate machines for you is much better than having him as a partner.

Better yet would be to learn to locate yourself! You will always need machines placed. It's something that will never stop as you'll forever be moving machines for one reason or another. Learning to locate is no different than learning to bowl, play golf or use the computer. You have to learn how to do it and then lots of practice!

nam

[Johnny Ringo]

nam,

Yeah, maybe I will just hire him as a locator. That way he can get some experience in the business, too, before he goes out on his own.

I would definitely be out there locating, as well. I know that is a must. Any tips on locating - the best types of businesses, how to find them, getting to decision makers, in person, on phone, flyers...?

Thanks!

Johnny Ringo

[Zeke]

I am currently in the same situation.  Went in with my best friend.  We both had vending backgrounds, so we thought it was a win win.  I have to say it has been the hardest thing I have ever done.  We are still great friends, but the business has been suffering.  It is better to go at it alone.  Business is tough and adding an emotional anchor to it will really bog you down. We rarely have the conversations we used to have.  Although I feel we are still great friends...it's just different.

 

Zeke

[Johnny Ringo]

Zeke,

Is your friend the "C" in "C&Z" Vending?

Yeah, I'm getting pretty solid on doing it by myself, but maybe having my friend do some work locating (if he is cool with that). I am thinking about offering him a deal similar to this: I will pay him a fee after I place machines in a location that he finds. If after a month, the machine generates a designated profit from the location then I will pay him an additional bonus. How does that sound?

Johnny Ringo

[antoniocinisi]

a buddy of mine places credit card machines,if he sees a location that needs a rack he tells me and I pay him 40 bucks flat no matter what the machine does.it is half of what locatotrs charge but no warranty.usually they have been good though because he sells me locations that have higher credit card sales.