Starting a small operation

[Chase&ChoateFarm]

Thanks everyone

 

[plumber_greg]

Hey kids, I don't know what you will end up doing for a living, but if you want to stay close to home and build some equity, cattle is the way to do it. I am a plumbing contractor from Missouri, that has raised three highly successful kids, thanks to the value of cattle. I started with 2 ten year old cows and 5 rented acres. Worked my ass off, and my childrens, and now my net worth is about 3 million. I was lucky, made some good decisions, and had a good wife. The key in my opinion is to build equity, and mortage it. A small down payment, and the mortage of my two cows started me buying real estate a few acres at a time. My worst decision was to start with a partner. Once I got rid of him I was on my way. Unless you are afraid it do it alone, then you need no one to help. If you need help, then you had better not proceed on your own. Don't try to live off of the income of the cows. Think, if you have a job somewhere, pay 500 dollars for feed for your cows, sell the calves, reinvest in one more, you have saved about a thousand dollars this year. Now what can you save next year with 5 cows. It just continues on like it did for me, in 25 years you won't believe what can happen. Good luck, a plumber from Missouri.

 

[terra8186]

Dont your to young is the best advice I can give.

This strikes me as funny. I bought some straw from one of my neighbors and he said he saw I had a few feeder calves, and then he asked me "You just can't stand prosperity can you?" I laughed at the time, but that saying sticks with me and I find more true.

As far as your adventure goes, It sounds like you have the initial planning out. You should do it and then you will learn lots of new things. Good Luck.

I also 2nd the part of doing it without a partner.

 

[RD-Sam]

I agree with the others that said do it on your own, partnerships very rarely work out. Small squabbles over time end up in a big fight, next thing you know, you are going your seperate ways, and everything you worked for up to that point is at risk. If you only have the money to buy two cows instead of four, you are way better off, just go slow and you will be fine.

 

[smallrancher]

Hey Mobgrazer, lay off, he told you he is going to buy angus and you respond by asking if he's (sorry, or she's) going to have a dairy????
I say go for it, if you make money great, if you don't, I blew money on a lot worse things when I was your age. What a good life experience. Keep track of every little expense. No matter how little. I tried the partner thing to and it didn't work out, luckily we are close enough that we can tell each other exactly what we think, (even if that means fyou), and respect each other for it and remain great friends to this day. Try the partner thing, and if it doesn't work out, another experience gained.
Good Luck!

 

[skyline]

I say go for it. I wish I would have started much earlier in life. You'll learn some good lessons.

 

[newrancher]

I think you have gotten some good advice so far, but no one has mentioned that when you draw up this agreement both of your parents need to be involved . They can offer you help and insight, and Experience. Partnerships can be a good thing, but you must keep good books. Sounds really exciting to me. Good Luck.

 

[grubbie]

Take the advice given in this thread as to good bookkeeping. Go for it, win or lose you will gain some life lessons from it. Keep us posted, Im sure we would all love to hear how you are doing.

 

[Chase&ChoateFarm]

We both may go in our opposite directions after the 1st couple years, we are both 16, you have to note that, and we both are pitching money in like its a straw bale, so it may stay and be a success or break apart.

 

[grannysoo]

A partnership is in big interest though, because we both look at decisions and balence the different viewpoints, also the cost and profit is spilt, and im sure i wont have any problems from the partner im going in it with, we both have the same views for most part.

All partnerships "begin" this way. Few in fact work out but best of luck to you.

My thoughts exactly. The only sure thing in life is change.

 

[Nesikep]

I think it's a great idea, but like everyone else, be very afraid of partnerships, especially if it can't be split evenly right down the middle, because it could well happen that suddenly one of you has some unexpected expenses and can't pitch in for something... Keep good books, that will help a lot, and also remember you are friends, go do "friend" stuff together still, otherwise you're just coworkers/owners, whatever..

I don't think anyone here is saying it's going to be easy, and neither am I.. but at the same time, there's lots to be learned, as well as lots of fun in it too

 

[Bez+]

also keep on going to school.

Haha, of course i need to keep going to school, i got to get a buisness degree when i graduate highschool, im inheriting a couple million dollar farm when my father dies, i need to keep that going. And i thank all of your who support me.

You beware of broadcasting what you think you will inherit.

The future has a way of bringing about things we least expect.

Good luck

Bez+

 

[CKC1586]

Don't listen to that to young nonsense or one day you will be to old. This type of education in priceless. You cannot buy it at any High School or University. Good for you and I wish you all the luck in the world.
Don,t get me wrong, also keep on going to school.

I agree. Might be a good idea to write up the agreement between yourself and your friend so that there is no question as to the what ifs and whens etc...
Good luck and have fun.

 

[Angus Cowman]

Ok here is my 2 cents

Get evrything in writing and the most important document is a buy sell agreement
you think this is a small business but what happens down the road if this is a big business and one of you want out .I have been in several partnerships and they have all worked because we had written contracts

I feel the buy sell agreement is the most important because I started a bus with a partner we had an investment of $250k within 10yrs it was worth over 2.5 million then he had health issues and needed out so I bought him out as was stated in our agreement I pd him 10% dwn and pymnts over 10 yrs , without this agreement he could have forced me to sell out or sold to someone else and I wouldn't of had any say in it and who knows ifhe had sold to someone else if I would have wanted that person as a partner

So get EVERYTHING in writing and if the partnership works great if not then you may still have a friend

 

[I luv herfrds]

Everyone on here has given you some darn good advice. The only thing I would add is if you are set to do this partnership have a clause in there for the partnership to dissolve. Better to protect both of you now then to have massive problems later.

Here is an idea. Now if one of you decides to withdraw have it so the cattle you have both been involved in can be bought out in shares. Example: One of you keeps the cattle, but as they calve and the calves are sold the person that has left gets a 40% share. Any cows of theirs that are sold they get the funds from them. The partner that stays gets to keep any heifer calves for breeding.
Once all of their cows are sold over the next couple of years the partnership is completely dissolved.

 

[mobgrazer]

Hey Mobgrazer, lay off, he told you he is going to buy angus and you respond by asking if he's (sorry, or she's) going to have a dairy????

I made one post under this, I did miss read, and I would like to make an apology to everyone that reads this… We were asked what we thought and I guess my thoughts were to far out there for some people and I can understand. I grew up in a different place doing different things then everyone else so what I think might be way off as others that grew up and lived in a different place with different parents and friends.

 

[Nesikep]

hehe, take my advice, dont' listen to what any of us has to say :roll:

Seriously though, everyone here has good points, even though sometimes they may contradict, what you need to do is sort through it, and and pick and choose what is feasible for you.. I hope I can speak for everyone here wishing you good luck.. not gonna be easy, but there's good times in there too

 

[Brandonm22]

also keep on going to school.

Haha, of course i need to keep going to school, i got to get a buisness degree when i graduate highschool, im inheriting a couple million dollar farm when my father dies, i need to keep that going. And i thank all of your who support me.

You beware of broadcasting what you think you will inherit.

The future has a way of bringing about things we least expect.

Good luck

Bez+

Exactly, and if his dad is ~50 today, it probably will be 28 years or MORE before he has to worry about his inheritance http://www.cdc.gov/nchs/data/nvsr/nvsr56/nvsr56_09.pdf
by then lots of things can change. Best to help Dad as much as possible, while hedging your bets by stockpiling what you can for your own future needs.

 

[milkmaid]

A partnership is in big interest though, because we both look at decisions and balence the different viewpoints, also the cost and profit is spilt, and im sure i wont have any problems from the partner im going in it with, we both have the same views for most part.

All partnerships "begin" this way. Few in fact work out but best of luck to you.

Number one rule out there is - don't work with friends. I heard someone say once that it's okay to build a friendship on a business relationship, but never build a business on a friendship. Even in college, after a certain group project this last semester I've decided I won't even work with casual friends on a project. It's just too hard when others don't do their part or viewpoints change.

Best of luck to you though, whatever you decide.

 

[I luv herfrds]

milkmaid had a partner like that in a college course I took. Only thing she did was pick the subject and ask for her name to be on the paper.
After 2 weeks of research and numerous re-writes I turned in the paper with just my name on it. Teacher asked why and I told him why. Nothing was said after that. Especially since I was the only one in the class to show up with out my partner to give the verbal presentation.