So I've had another post a while back about potentially buying my boss out as he is getting older and starting to think about retirement. This was when I had first gotten my license and my boss maybe fearing I was going to leave, approached me about the future and what my intentions were. Since this last meeting, about a year ago, nothing has really changed what so ever except my pay and bonus which is all good. I'm not one to sit around and wait for things to happen so I started my own LLC and started doing smaller projects, now have a couple new homes being built and things are starting to get exciting. I should do about half my full time time salary this year with my side hustle and it gets me thinking about my options. All of my side work and business is behind the scene and nobody in the office knows. Now that my interests are more focused on my own projects, I am naturally slacking a little in the office. I think my boss is starting to notice and has approached me again last week to go out for lunch to "talk". He again asked me my intentions of the future and said hes hiring another employee who he thinks I would work together well with. He talked about a potential partnership where he would still be involved but getting some younger blood in the office to keep things moving. I kept pretty quiet because I am not sure what I want overall and can't help think that my boss just wants to golf all week while some younger "partners" do all the work with the the dream for a full buy out in the future. Now we didn't get into all the specifics as far as % of ownership and the details that actually matter so obviously thats the important information. but I also feel like maybe the carrot is being dangled in front of me to keep me motivated. I know this was a long rant so thanks for reading. I am torn between continuing my focus on my own business or switching gears to the possibility of this partnership opportunity. What do you all think? any advice, insight or information is greatly appreciated. The current firm I am at is a small 6 person firm, gross revenue roughly 2 mil on a good year. My side LLC is peanuts in comparison but enough to survive for one person and this is just weekend work with zero advertising ect. so who knows what the future holds.
I think i'm in a somewhat similar, but not as good, position, here's my 2 cents....
The advantage of the existing firm is they are known for a particular type of work and they hopefully have at least some work coming in without any marketing needed. Obviously this is a good thing. All that work is probably related to the guy who's name is on the door. If anyone else is to take over then there needs to be a fairly long transition period so that existing clients feel comfortable with new leadership.
If you aren't interested in the existing firms niche or it has a fairly low barrier to entry than focusing on your own thing makes more sense. If you want to do high end commercial or govt, you may not want to struggle for 20 years before you get into that type of work.
Thanks for the replies. The firms niche is mainly country club work, although we do residential and commercial as well. The boss is the main connect, he knows everybody and brings in all the work, Its not really the "firms" reputation as much as it is my bosses personal connects. As mentioned a long transition would be critical and that has not begun to happen at all. The other issue I have is that I am young and look young (30). My boss and his gray haired connections will have a hard time taking a "kid" serious. Maybe I am being negative but I cant help being realistic. I think I keep doing my side hustle and if something transpires in the office thats great.
Don't pay a lot and definitely not in a lump sum. He needs to have some skin in the game to be motivated to make the transition a success. Also, if he is retirement age what happens if he unexpectedly dies? Also, what is the age profile of the clients? If they are near retirement age, they won't do much for you in the long run.
Aug 21, 18 6:53 pm ·
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Partnership opportunity
So I've had another post a while back about potentially buying my boss out as he is getting older and starting to think about retirement. This was when I had first gotten my license and my boss maybe fearing I was going to leave, approached me about the future and what my intentions were. Since this last meeting, about a year ago, nothing has really changed what so ever except my pay and bonus which is all good. I'm not one to sit around and wait for things to happen so I started my own LLC and started doing smaller projects, now have a couple new homes being built and things are starting to get exciting. I should do about half my full time time salary this year with my side hustle and it gets me thinking about my options. All of my side work and business is behind the scene and nobody in the office knows. Now that my interests are more focused on my own projects, I am naturally slacking a little in the office. I think my boss is starting to notice and has approached me again last week to go out for lunch to "talk". He again asked me my intentions of the future and said hes hiring another employee who he thinks I would work together well with. He talked about a potential partnership where he would still be involved but getting some younger blood in the office to keep things moving. I kept pretty quiet because I am not sure what I want overall and can't help think that my boss just wants to golf all week while some younger "partners" do all the work with the the dream for a full buy out in the future. Now we didn't get into all the specifics as far as % of ownership and the details that actually matter so obviously thats the important information. but I also feel like maybe the carrot is being dangled in front of me to keep me motivated. I know this was a long rant so thanks for reading. I am torn between continuing my focus on my own business or switching gears to the possibility of this partnership opportunity. What do you all think? any advice, insight or information is greatly appreciated. The current firm I am at is a small 6 person firm, gross revenue roughly 2 mil on a good year. My side LLC is peanuts in comparison but enough to survive for one person and this is just weekend work with zero advertising ect. so who knows what the future holds.
Why not use your side work to bargain from a stronger position?
Is your current firm's name or reputation or clients list worth anything? If so, consider sticking with it. If not, continue on your own path.
I think i'm in a somewhat similar, but not as good, position, here's my 2 cents....
The advantage of the existing firm is they are known for a particular type of work and they hopefully have at least some work coming in without any marketing needed. Obviously this is a good thing. All that work is probably related to the guy who's name is on the door. If anyone else is to take over then there needs to be a fairly long transition period so that existing clients feel comfortable with new leadership.
If you aren't interested in the existing firms niche or it has a fairly low barrier to entry than focusing on your own thing makes more sense. If you want to do high end commercial or govt, you may not want to struggle for 20 years before you get into that type of work.
Thanks for the replies. The firms niche is mainly country club work, although we do residential and commercial as well. The boss is the main connect, he knows everybody and brings in all the work, Its not really the "firms" reputation as much as it is my bosses personal connects. As mentioned a long transition would be critical and that has not begun to happen at all. The other issue I have is that I am young and look young (30). My boss and his gray haired connections will have a hard time taking a "kid" serious. Maybe I am being negative but I cant help being realistic. I think I keep doing my side hustle and if something transpires in the office thats great.
Careful, small firms tend to be personality oriented and when the main personality goes so do the clients. Don’t ask me how I know.
Choose black or white. You can't be half hearted on anything.
Don't pay a lot and definitely not in a lump sum. He needs to have some skin in the game to be motivated to make the transition a success. Also, if he is retirement age what happens if he unexpectedly dies? Also, what is the age profile of the clients? If they are near retirement age, they won't do much for you in the long run.
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