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me and a friend are going to start scrappin together this spring. he has the truck, i find most of the metal. ill do most of the preparing but he will help some also. how would you guys split the profit? 50/50? let me know what you guys do when you have a buddy with you..
I don't have anyone with me often scrapping, but I also cut firewood for extra money. When I've got someone with me, then we first take care of all the equipment (replace spent fuel, broken parts, etc) and then split the rest 50/50.
Well there are a few ways to do it.One you give him half of what he has in the truck and that would make everything 50/50 just so he cant come back and say i have more invested than you.2 Buy another vehicle and you to split the cost.3 i would say take out all the exspense and whatever is left over it should be a 60/40 split i would say.
If you are splitting thw work evenly then 50/50. Remember without the truck you cant haul and without you finding it he wouldnt have anything to haul. But if you are doing most of the prep work then 60/40 sounds good.
Bottom Line - partnerships without a formal, written agreement/contract up front, never work out.
thanks guys. what would we write in the contract? i guess if i put more work into it we will do 60/40 and if we do about the same we will do 50/50. i usually have my father take the loads to the yard (i dont have my license yet) but he does it when HE feels like it, which can take weeks or months but one good thing is he does it for completely free so i shouldnt be complaining too much. i should have my license by the end of this year
Sorry, if you're under 18, you can't legally sign a contract, anyway. Basically, decide how much money (or the worth of equipment ) each is putting into the business. Decide what duties each will have and to what percentage. Decide how expenses (purchases, repairs etc) will be met. Who will make final decisions and for what? Decide how profits will be distributed - and the percentage of profit each will get. Decide how each can take himself out of the business (buy or sell out to the other). When you get done, there should be no part of the business that is not addressed. There should be no ambiguity in any part.
I've got a buddy who casually scraps on the side of his full time job.. known each other for 15 years.. so there's a pretty good level of trust between us..scrapping is about 50% of my business but we both share a store space, but with our own separate piles of scrap.. we share tools, burn pile and ideas/opinions, not profits. He only has his truck, I have my truck and a utility trailer. I can't see how splitting the profit will bring any good. Someone will always feel like they're doing more or deserve more than what they get.
sometimes i get my brother to drive me to pick stuff up nd to the scrap yard since im the one loading and unloading and tearing stuff apart and since it was my idea i split 60/40 60 for me