If you are looking for a partner to help with your hot dog vending business, think twice.
This week I have been getting a lot of email from newbie slingers asking about partnerships. As these slingers found out, I have a very strong opinion about business partnerships as you will see.
In talking with many newbie hot dog cart owners, I have heard many different reasons for wanting a partner. Some say that the partner has start up money. Others say that the partner is good at bookkeeping. One even told me that the partner is the one who will get the health permit.
In reality, all of these are reasons are not the real reason. The real reason is simpler than that. You ready?
Here is the true reason that newbies seek parners: The newbie is just nervous. That’s all it is!
If you think about it, you can do everything that needs to be done to get your hot dog biz off the ground. You don’t need a partner for any of it.
Money can be raised or worked for. Permits can be gotten. Bookkeeping is so easy with the right tools. Locations are not that hard to get if you know how. I can teach you all of that stuff, no problem. I guarantee it.
But if you take on a partner, here is what will happen. You’ll start working together to open the business and things will be fine at first. You’ll both be excited at the prospect of the fun and freedom that running your own hot dog biz offers.
But inevitably one person will start to feel like they are doing more work than the other. Or you will have a disagreement on your business strategy. Sometimes one partner feels like they deserve more of the profits for whatever reason.
Bad feelings will occur sooner or later. These feelings will creep up on you at the same time that your business is taking shape and growing.
Then one day you will realize that your business is now fully operational and you don’t need any help. Looking back you’ll realize that you never really did. You could have done it by yourself and got to the very same place you are right now. But guess what? You are now tied to someone who you no longer like very much.
I’ve seen it happen many times. In fact it has happened to me.
Write these words on your bathroom mirror so you see them every day:
“A partnership is a permanent solution to a temporary problem.”
I’m not saying that partnerships never work. I’m just saying that you should think REALLY HARD about why you want a partner in your hot dog vending business. Then ask yourself if it’s really just a case of nerves. I bet you will find that deep down inside, you know you can do this on your own.
I know you can. And if you need help, I’m always here for you.
-Steve
Steve,
Your article reinforces the the principal that the first document/agreement to be worked on in a partnership is the need to have an exit strategy or article of dissolution.
Been there, done it.
Great advice Carl. If you’re going to partner up, have a way out.
My wife is my partner. I have tried a partnership in the past, like 20+ years ago and it ended up in hurt feelings, damaged friendships etc.. It is from that experience, with things like partnerships, that I came up with the saying: “Business associates can become friends, but friends cannot become business associates”. I have thankfully saved three other close friendships over years by adopting this philosophy. I value my realtionship with my close friends more than I do any business opportunity.
“Business associates can become friends, but friends cannot become business associates”
LOVE IT!
Steve: You couldn’t have said it better. I was in a partnership in Philly and things did not work out well. I am in Columbus, Ohio moved back home in 2013. Am missing the business and tired of working for someone else. I have just purchased a used cart from All A Cart here in Columbus. Thought of getting a partner but now after reading your article….no way. Will let you know how things go.
Thank you for your words of encouragement.
Tammy
You can do it!!!!
Not to get religious, but our only partner is God, pray a lot and you will make it through! My wife and I started our business at the end of November in Washington state where it’s cold and rainy this time of year. Put up a canopy and say a lot of prayers. Amen
Already have repeat customers, still need to grow a lot but working on it.
Religious is cool here David. I appreciate your comment. Good luck on building your business!
God is MY partner…no, wait, He’s my BOSS! And the best ever!
A “partnership” is a Permanent problem.
And very often even after the partnership
Has been dissolved, various problems just
Keep cropping up, sometimes for years…
Good point. The fallout can last for years.
100% agreed with you on that one!!
Sounds like great advice, and it also sounds like marriage! I’m just saying.
Mmm Hmmm.
Steve;
You are right. It is a marriage, and you know about how more than half of those are working out.
Unfortunately, yes.
Why, have a partner in the first place? Just hire somebody cheap and see if, they can help you sale a few extra meals…. If, they can’t make you three times more than what you are paying them then, cut them loose! It is the same in any business. Besides, I never pay a wage like the government says to do. I pay by the meal sold. If, they sale a lot, they make a lot, or if they sale very little then, they make very little!
I have had many people walk up to me and tell that, I need their help? Then, they go on to tell me what they’ll take as pay? It is always more than, I even would pay myself! I just get them to print me out a resume’. I tell them when, an opening appears, I’ll call them. After, they leave, (most of the time, I just throw their resume’ in the trash). Only, if, a food business manager is seeking away to make some extra cash will I check out their resume’? Even, then, they’ll never get to go by themselves, with my cart!
Plus, as a commissioned salesman, they pay for their own healthcare and taxes. They’ll not stay too long! I don’t pay that much per dog sold. I make sales because, I am cheaper than, anyone else in town! So, when your not bringing in gold, if, your smart, you’ll not be paying gold out, either!
Yes Greg, hire somebody if you need to. That way you are always in control of your destiny.
like you said bad idea , i had a partner in a bar and grill , at first all is well but things changed on how he and i wanted to run things , i really got into it because he already had a business and thought he could help me understanding the business paper work end of things and we where also friends , which i am sorry to say are no more .
That’s too bad. Lesson learned, right?
SPOT ON…I couldn’t agree with you more. The best way to ruin a good friendship is go into business together. Think about it newbie, you have a vision, ideas on what you would like to serve, a grand vision that you are sure will be successful. So will your partner. Do you want to give in to someone else because of money or lack of confidence?
As Steve mentioned, you can learn what it takes and earn what you will need to get started. Maybe it will take a little longer, but it will be worth it and you will appreciate your accomplishments more.
I know someone that started out with a small cart and built his brand. Soon he was able to develop a larger cart and expand his menu and services and eventually purchased a concession trailer. This was done over a span of a few years and taking the advice of experienced slingers. Start small, develop a business as though you were going to sell it, then do. Step it up and do it again and again.
“The best way to ruin a good friendship is go into business together.”
Yep. Right on Jack.
Yes you are right Steve….
Great advice.. thanks
I already have the best partner anyone can get…………….and that partner is YOU!!!
Aw shucks…
When I owned a construction company, I took on a partner to handle the books after I’d been in business (and in the black) for a few years. The decision to take on this partner would contribute to my decision to close my business. It was a power struggle from almost day one. I needed someone to help with the all of the paperwork and was looking for a like minded, success oriented individual. After my experience, I made the decision to never partner again. I would have been much better off to hire a part time office person than to hand over a portion of my (blood, sweat & tears) business. I understand that I am a newbie here, but I thought I would toss in my two cents……Thank you Steve !
Great comment Todd! Your experience is indeed valuable to us all.
Don’t do it …..some may work ….it is hard… Been there
Done that…. Donny Hill
i have not get up and rnuing but whan i do make or brake its my baby
Let me know how I can help Harlon!
One of things learned over past year with a business partner, is often they try to reinvent the proverbial hot dog wheel What has worked for me for over ten hot dog years, as far as hot dog sauce recipes, even the amount of sauce and chili cheese I put on each hot dog I lovingly sell, does not seem to make sense to him So much more, from debates over steaming a hot dog, to boiling, to more than a few issues would not be able to fit into this page One bit of advice to fellow hot dog slingers, is if you have been selling hot dogs for a while, and looking for some help in the hot dog business, you are at a real plus if you find that hot dog angel , who has worked with foods before I can tell you with a business partner, a CO Op is one of better ways to go! Gary that hot dog man with the hot dog plan
With places like Kick Start, why would anyone consider a partner!
hi steve i am from Suriname South America. and i wanna be the first real slinger in my country. i am 30 and out of work i already purchased an hot dog cart and several other thing to began with. the only thing i am waiting on is an permit for the location. but i have a verry good friend who i wanna start the bussines with because i wanna opporate at least 3 hot dog and worst stands in my city. is it better to just pay him a lone than when things get out of hand i can just fire him. the thing is i am gonna need others to run the other stands for me . i wanna start with him.
Yes. Just pay him as a worker. Then you remain in charge.
I had a partner and it did not go well. I would never do it again without everything in a written contract that spells out every detail. Including duties, compensation rates, cart maintenance, expenses, etc. Employees suck! They never work as hard or care about your business as you do. Someone working must have a financial stake in the success of the business. IMHO.
I am currently considering a partner. I have two great locations, an upscale lunch spot and a late night spot. In order to get the lunch spot I have to make a 5 day a week commitment. I can’t do it alone, and wife is not on board for full time. Having some additional capital to invest in additional equipment would also lessen the risk. We are looking to expand our menu. We want a cart with a steamer tables, flat top, deep fryers, and refrigerated prep station.