The Challenges of Partnership with Plumbing Business Partners

When digitalization has taken over modern business, more and more companies are moving their work to the Internet. But there are occupations where manual labor is still necessary. These are all traders’ jobs, among which plumbing service stands out.

You may find it hard to believe, but plumbing is a pretty rewarding career. Moreover, for quality and reliable plumbers, there is a possibility of good earnings. If they follow modern technologies and market demands, success is almost guaranteed.

On the page below, see what you need to start a plumbing company:

https://academy.getjobber.com/resources/articles/how-to-start-plumbing-business-steps/ 

Reasons to Start Plumbing Business

Suppose you want a piece of a profitable plumbing cake. You have the necessary skills, knowledge, and resources. And a best friend or a relative to start a partnership. In that case, besides good will, you must have a partnership agreement with them.

You need to get a partnership agreement because of sharing the profits and obligations with your partner. It’s this division that is the main reason why people opt for this business type. With a smart choice of partner, a lot can be achieved by joining forces.

Besides, there is a factor of trust that makes a partnership successful. You work with someone you have known for a long time and with whom you share your beliefs. That’s why you can be relaxed and willing to dedicate yourself. Of course, you expect the same from the other side. But, as with any other mutual venture, your partnership and friendship may face challenges.

Decision-Making Process

The very definition of a partnership means it’s a joint venture of two or more parties with predefined roles. If you plan to start a plumbing company with a friend or a close person, you think that everything will go smoothly. In most cases, friends opt for the half-half share. 

In theory, it means that both obligations and benefits are divided equally and seems to be the fairest solution. But, unless defined in advance by the contract, problems in management can arise. The most common challenge is answering the question ‘who is the boss?’.

If you plan to start a joint venture with a friend, you must share business interest. Without mutual laser focus, plumbing business is doomed to failure. And if you have it, you probably think you will quickly agree on who is in charge. In practice, that’s often not the case. 

People are different, and so are their opinions and visions about work. Sure, everyone wants their business to succeed. But they want to achieve that in different ways. Management styles often differ, and disagreements are possible if the balance is not found in time.

Any decision made has to be carefully thought through. Both partners should weigh all the consequences of each action to ensure they decided right. In any case, a prior written and confirmed agreement is necessary, especially if one of the partners has more professional skills and the other has more experience in business management.

Labor Division

In a small plumbing start-up, running a business can be just as challenging as a large corporation. If you have started a small plumbing company with a friend, you must define your roles at the outset.

Suppose you both have the necessary experience, qualifications, and licenses to work as plumbers. In that case, you need to agree on a labor division. Whether it will be by parts of the city, call times, or something else, you have to know your duties. That way, you will avoid work overloading and picking up the slack if one screw up.

And what if one of the partners invests funds and the other provides know-how? Again, it’s all a matter of agreement. Labor must be valued because without it, it would not be possible to do the job. On the other hand, finances are not negligible – no money, no business at all. The agreement and consent of both partners, to mutual satisfaction, will prevent any power struggle.

Personal Habits

When you start a business with a friend, your business and private lives will intertwine. Maybe some things you didn’t know about your best friend will come to light. Some personal habits or poor work ethic can endanger the job (delays, lack of professionalism, health problems, substance abuse, etc.).

If there is a chance that this will happen, you must have patience and energy to solve the emerging problem. Different people have different coping mechanisms, so sometimes they need time to get used to new circumstances.

The solution is not in tolerating such things but in trying to solve them together. Communication is crucial in a plumbing business that includes more than one. Although some problems may be personal, as long as they jeopardize the joint work, you have to work on them together.

Financial Issues

Money is often the main trigger for business failure, but also the end of a friendship. That’s not the rule, especially if you plan to start a partnership with a stable person who has good financial habits. But a 50/50 split is not always possible. 

Maybe you have enough money to start a plumbing company but no professional skills. You need a partner who will bring experience and knowledge to the business. In such situations, the problem of equity division often arises. Is financial investment more important than labor?

As with everything else, it’s essential to get every aspect of your future plumbing business in writing. A plan in case of failure (which is very likely already in the first year of business) is a must. See this link to find out why most start-ups fail.

Another thing that can prevent problems between partners is separate accounts. Never merge personal and business accounts into one. This way, you will avoid confusion, have an insight into company’s funds, and calculate taxes much easier.

Several personalities in a mutual business don’t always have to be bad. In fact, that can contribute to success if different people find a mutual goal and interest. A plumbing partnership can be a profitable business venture, but only if you know how to set private and professional life apart.