Partner advice...

[waterboy716]

Hoping some of you could offer some advice.

2 years ago I started a small ice cream bike business The first year I ran it solo, and was very successful. This past summer I purchased my 2nd bike and hired some people to run it. My main objective of the summer was to learn how to manage and deal with employees. I paid purely commission, as I thought that would provide more incentive to actually go out and work. Unfortunately that didnt prove to be the case. Turnover was high (its tough work riding a 300+ lb. bike) and my best 2 workers quickly figured out the days and times they would make the most money for the least amount of work and it was tough to get them to work other shifts. I wasted too much time training and managing and it really took away from the sales I knew I could make had I been out riding.

The bikes are pretty cool looking and, being the only ones in the city, they're very unique and popular. I think most of the people who rode for me didnt do so to make money, rather they were most likely using it to meet girls and to work on their tans.

Understanding pretty quickly that this model wouldnt work for my business I began thinking about other ways. Leasing the bikes out was a thought, but to be honest why would somebody pay me to use the bike when they could very easily buy their own since they're relatively inexpensive. Sure I could grow the brand and create a reputation that a competitor would need to invest alot of time to overcome... but it's a total impulse purchase so that wouldnt make a difference. (i have been marketing and building the brand tho)

I would like to add my 3rd bike for this upcoming season and the only way I can imagine that working would to be taking on 2 partners. For the sake of my company I'd be willing to give up part of my ownership in order to guarantee all 3 bikes are being worked to their fullest potential. Afterall, you do your best work when you have a sense of ownership. Plus, I could use 2 others to keep me focused and to compliment some aspects that I'm not particularly strong at, especially web stuff and employee management.

I've added a percentage to my daily average over the past 2 seasons as our responsibility to guarantee each of our bikes brings in daily. Out of that amount we will use the money to pay our salary, overhead, reinvestment, etc. A percentage of the money over and beyond that minimum will be reinvested either into this business or, hopefully, another one that we decide to create and a smaller percentage will be paid out monthly as a bonus.

I don't expect each of us to ride 7 days a week, 6 is fine, but I do expect that we make sure each bike is double shifted each day weather permitting. So, again, we will have to bring on employees... but they'll pretty much be icing on the cake. I want each bike on the road from 11 - 11 everyday, til 4 on the weekends (the bar crowd does indeed buy ice cream, lots of it!)

I guess I have a few questions that I'd appreciate comments on.
1. From the limited information I provided, does bringing on partners seem the best way to achieve sales success?
2. Is it smart to give up part ownership in order to get motivated individuals who would be willing to devote all of their time to the business. I worry about offering equal parts straight off the bat so i'm thinking I'll take 2 shares of stock to each of their 1 and when we collectively expand and bring on a new partner we'll so a stock split so to say offering the new partner 1 share and doubling ours. I guess that protects me in the beginning but as the company grows there'll be more parity considering it was all of us who got it there.
3. How the heck do I go about finding partners? Should I take an ad out in the paper, cruise business classes at local colleges, ? The ideal person would be someone around my age with my stamina and drive.
4. When should I start the search? The season will start full-time mid-May. I could be out, weather permitting, as early as April... but most likely not daily. I DON'T want to start the search too late and only end up finding people who just need a quick job... this is a seasonal business, but I really want to create a team with whom I'd be able to create other ventures with as soon as the season was over. On the flipside, I can't start the search too early for risk of losing a prospect because I don't have any work to offer just yet.
5. Maybe you have other tips or comments that you could offer. I would really appreciate it.

Thanks for reading.

James K

[paul2145r]

Well, have you thought about hiring temporary and/or seasonal international workers? You could hire a few international workers to work for you. In addition to the profit that you'd make on the bikes, you could also set up room & board on behalf of the company and get a pretty good tax break. Let me know if you are interested in learning more about this- international recruitment is kind-of one of my specialties ;-)

[Crysco]

When it comes to partners or employees, it takes time find the right ones.

You really have to know what you want in a person. You never know where you will find the right person.

People spend tons of money on gas where I am from to be ice cream truck drivers, some barely break even. You have a unique opportunity to offer, and the right person will see that. I don't think it would be too early to start looking, as long as people know when your season starts. I wouldn't put any limits on where to find people, college, shopping, professional events, etc....

Students have a lot of work and studying to do, this is a good option if your going to train them on a part-time basis. If they really like the idea, maybe you can build them into a full-time/partnership position in the future.

Just some thoughts though... Good luck in your search!