I run a small landscaping business, three employees including myself. Last month two different people approached me about becoming partners. One has a truck and some equipment, the other has a bunch of commercial contacts. On paper it could make us look bigger. But I keep thinking if I bring someone in just so we seem more established, I'll end up with someone who wants a say in everything and doesn't actually add anything I can't build myself over time. Am I overthinking this? I just don't want the business to get blown up because of ego.
Partnerships
I don't want a partner just to make the business look bigger
You're not overthinking it. I've watched two smaller companies merge here in town and within a year the original owners were miserable. One guy brought contacts that mostly dried up anyway, and then he wanted a title on the door and a say in scheduling. The paperwork looked nice for a while.
What does 'look bigger' actually get you? Is there a contract or a loan or a job you're being passed over for specifically because of size?
Honestly there's one commercial account I've been trying for. They mentioned they usually work with bigger crews. That's part of what got me thiNking about this.
That's a real reason to consider it, but it's also the easiest thing to fake with a written proposal and a subcontracting plan. You don't need to hand someone equity to show a commercial client you can staff a job. If you do consider a partner, get a lawyer and spell out who owns what. Most of these fall apart on the small stuff, not the initial handshake.
I'd keep it simple. The contacts guy probably wants your customer list more than he wants to work.
What mowingmama described happened to a friend of mine in a different trade. It wasn't even about the equipment. The other person just started treating the whole thing like it was his call on every small thing, and the original owner stopped being able to move fast. The slowdown was the killer.
Are both offers actually comparable, or is one more appealing? I know you lumped them together but a guy with a truck is a different bet than a guy with contracts.
Not really comparable, no. The contacts one is more tempting on the surface. The truck one would be easier to just hire instead of partner with. That's probably my answer, I just wanted to see if I was being stubborn about it.