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A buddy and I who have been working a lot together over the past year or so have decided to merge our business's. We are both at the point of needing to hire someone but just aren't ready to. We have spoke in great detail about joining each others business and have decided to move forward. We are going to change both our names to one and bring all customers to one. Does anyone have any advice?? Thanks

New name and logo! Thoughts? Will be for 2014

BHLC said:

A buddy and I who have been working a lot together over the past year or so have decided to merge our business's. We are both at the point of needing to hire someone but just aren't ready to. We have spoke in great detail about joining each others business and have decided to move forward. We are going to change both our names to one and bring all customers to one. Does anyone have any advice?? Thanks

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Put together a written partnership agreement. In it:

• Define and itemize the amount of capital investment by each.
• Define how one partner may exit the agreement and with what assets.
• Consider buying life insurance on one another. If one of you dies, the other is left with all the work, perhaps only half the assets, and possibly all the debt!

Some other things you better decide

• who is charge of keeping the checking account.
• how to manage receivables and lines of credit with your customers.
• how and when you will pay yourselves, as in a set draw amount periodically, or a policy of "as available, ever how much" capital withdrawal from the company checking account.

great advice:thumbsup:

BHLC said:

New name and logo! Thoughts? Will be for 2014

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I like it! :thumbsup:

Don't forget to look at how well your two families, especially the better halves, get along. A business is a family affair and any tension can lead to big argument and problems down the road. If they are not involved in the decisions, both of you may regret it in the future. Finally, get a business lawyer involved, as they will be able to point out things that neither of you have thought about. It may cost money up front, but will save you both in the future.

Rivets said:

Don't forget to look at how well your two families, especially the better halves, get along. A business is a family affair and any tension can lead to big argument and problems down the road. If they are not involved in the decisions, both of you may regret it in the future. Finally, get a business lawyer involved, as they will be able to point out things that neither of you have thought about. It may cost money up front, but will save you both in the future.

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In my partner venture, we used a lawyer to set up our LLC, and, as you said, it was a good investment! For example, he is the one who gave us the advice about the life insurance policy, one I especially remember. His fee was only some several hundred dollars.

Additionally, when we had to borrow capital from the bank, the operating agreement and the insurance policies were key components of our loan application that made a difference to the bank.

He was our corporation's agent, and when we received a patent infringement inquiry letter, he was copied, and immediately was in a good position to help us respond professionally and effectively.

Good luck to you and your partner. I am sure that together you will have a much better and more successful business than would otherwise be possible.