Expanding and taking on a partner

Well, I was going to get out of the scrap metal business but that was last week. Today, I talked to a guy who has a good background in scrap metal and going into partners with him. Young guy who has the stamina I don't. He has the connections and background for buying cars which I don't and I have the equipment & tools which he doesn't. Really think it's going to work out. About an hour after talking to him he called and has a line on two Blazers for $200 each. Tomorrow he'll be coming over to work on my scrap pile to maximize worth before we haul it in.

Good luck Mick hope it works out for you.

Hey that sounds great, are your steel prices up there enough for that? A young hand around is great at times. My expartner trashed quite a few decent computers/printers and other stuff that I see now could have generated a lot more money by selling.

Like they say, "he stepped over a dollar for a dime". Otherwise, good luck with it.

Mick, as someone who has done it a couple of times, I will tell you that egos get in the way. It takes a REMARKABLE relationship to make partners work, and it sounds like you just met this guy. Wouldn't an employee be better? You can fire an employee at any time, and you retain control.

As a friend told me once: "The only ship that should never sail is a partner ship."

(Or a Carnival Cruise Ship, I guess.)

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Originally Posted by Mechanic688

Like they say, "he stepped over a dollar for a dime". Otherwise, good luck with it.

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Huh, must be "INFLATION". I always heard it as "he stepped over a quarter for a nickle". lol
Anyways, good luck Mick. If anyone can make this partnership thing work its you. Only thing I would suggest is try to retain at least 51% of the business. Even in a partnership someone needs to have the final word.

Best of luck with your new venture. One way to look at it you were about to stop scraping now you may be getting bigger. Mike.

Thanks, all. Yeah, I'll still have the majority say. He's not in the formal business structure (really typical in this state). He was over today getting a load ready for tomorrow (or Tuesday if they're not open for President's Day). Just keeps getting better and better with his contacts for buying cars. I'm well aware of the "ego thing" although I don't see that here. I don't need to prove anything to anybody and he's pretty "down to earth". Each of us is bringing what the other doesn't have.

Sounds like it can't do anything but get bigger and better for both of you, congrats on finding the "missing link".

Best of luck Mick, I hope it works out for you.

Can't let him be a member here! Or you will not be able to let us know how this is working out! LOL

Cars are tough right now with it being Tax Time.. If he can pick up two vehicles for $200 bucks.. you may be onto something.. hopefully it isn't a flash in the pan.. Getting one or two is great.. but it is the constant supply of getting vehicles that I have found to be a challenge! I wish you well with it, I have had my ups and then downs with trying to have a partner with vehicles.. seems greed on one end always likes to creep in. I'm not sure why.. I am hoping you don't find the same!

Still working on the Blazers and trying for a Saab. Did get an '01 Lumina yesterday. "Everybody's got to start somewhere". His goal is two cars a day. I'd be happy with two a week.

http://s1209.beta.photobucket.com/us...tml?sort=3&o=0

sounds like a good match and structure. they say to be successful you have to find a need and fill it. Looks like you both have found a way to fill that need. Remember there are times when you will have to agree to disagree. Hope it works out for ya all.

You going to part out the cars?

So he has the contacts and the muscle but you provide just the tools, how exactly will the money be split then (since he seems to be getting and doing most of the work). In the end you are going to get cut out one way or the other, hopefully not losing your tools in the process.

i wish i could get blazers for $200 each, i have to beg people to take my $800 offer

guy turned down my $600 offer for one that had been totaled on the front end

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Originally Posted by unknownk

So he has the contacts and the muscle but you provide just the tools, how exactly will the money be split then (since he seems to be getting and doing most of the work). In the end you are going to get cut out one way or the other, hopefully not losing your tools in the process.

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No worries on losing the tools. Split - Haul stuff to the scrap yard. Take expenses off the top (gas, purchase price etc), then 50-50. I'm putting a little more than that into it (think it through). If he makes it on his own and cuts me out, that's fine with me. I'm not worried about it. I hope he does make it so he can get a truck and trailer of his own. I wasn't buying cars before, anyway, and doing as much as I wanted.

Everybody can use a boost once in a while. It's what they do with it that counts.

landmine - thought about that today when I saw this car. Probably will.

Ok, sounds like it will work then. Some people just don't bother looking at things long term but seems like you have.

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Originally Posted by jghilino

i wish i could get blazers for $200 each, i have to beg people to take my $800 offer

guy turned down my $600 offer for one that had been totaled on the front end

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You have to be willing to walk away always