# Advise on setting up a partnership hobby business



## Rader Sidetrack (Nov 30, 2011)

I'm not a commercial scale beekeeper, but I have been in a business partnership. 

Here is a major stumbling block in your partnership proposal ...


> This would be a hobby business



There are enough challenges in a regular 'business' partnership; and even more in an agricultural operation where uncontrollable outside influences like the weather can make everything collapse, but what you are proposing has even more challenges as it is not being managed as a business. 

If your investor wants to pay for your hobby, that's fine, but he shouldn't expect much more than than some honey in return.


----------



## gww (Feb 14, 2015)

rader


> If your investor wants to pay for your hobby, that's fine, but he shouldn't expect much more than than some honey in return.


:thumbsup:
Cheers
gww


----------



## DeepCreek (Jan 23, 2015)

This plan is much to small to consider as a business, IMO. Especially dragging someone else into it.


----------



## Greeny (Jun 27, 2016)

Not an expert by any stretch of the imagination, but my curiosity is piqued.
You said your thoughts are to start with 6 hives, ant that this would be a hobby business. What about your investors thoughts? Is he expecting this to be a profitable venture instead of a hobby? How deep are his finances? Can he fund 60 hives right now and can you manage them? 600 hives?
I would be careful about mixing your personal bees and material in with the business. Best to keep the business all business. That's not to say you won't reap some swarms or other benefits, but try to keep the boundaries clear.
What would you like to get out of the arrangement? A percentage of the honey? A number of splits? A percentage of the profits? A percentage of the gross? Once you decide what YOU want, then you can discuss it with your financier.
I suggest a frank and open discussion with your partner, agree on all areas of involvement and compensation and break it down in writing. Not necessarily a contract, but at least a clear memo of your joint expectations that can be referred to if needed. 
I wish I had a rich buddy who would fund my hobby!
Good Luck!


----------



## Eikel (Mar 12, 2014)

Keep your "return" expectations low and you're likely not to be disappointed, not being mean but you don't see too many rich from beekeeping or at least I don't know any. Greeny's point of how much can he afford and how many can you manage are valid. A real, no kidding, business plan is advisable.


----------



## Scott Gough (Dec 10, 2015)

The only ship that will not sail is a partnership. 

Expand slow if you want to expand and use honey and nuc sales to fund it yourself. You will save yourself a lot of headaches!


----------



## snl (Nov 20, 2009)

Never, ever not have partnership and dissolution agreement.............. in writing.


----------



## Oldtimer (Jul 4, 2010)

My advice about this partnership would be don't go into the partnership. I think you have been beguiled by money, thinking what sort of payment for your time, etc.

You want to set up 6 beehives. Hardly a big investment, and you already have 1/2 the equipment. So finance it yourself.

If your beekeeping skills are as great as the other person thinks, you should be able to get enough honey to finance further expansion without anything coming out of your own pocket.

The reason I suggest against the partnership is that partnerships, like a marriage (which is a form of partnership), can be fraught with difficulty, with two different people with two different ideas. Because the financial investment is so tiny, why burden yourself with someone expecting a financial return?

Problem is that I suspect you are seeing this as a way to make money, ie, get paid for your time. Bottom line is the other guys expectation is to get back more money than he puts in, obviously. Or, why do it? Yours is a little different, seems like you are expecting to get paid along the way, keep most of the honey, build up assets and do OK out of it, while the other guy funds this. The two different goals conflict and the whole thing could end badly.


----------



## msl (Sep 6, 2016)

I am with OT
if you feel your skills are up to the task it should be no big deal to by a few packages and be at you golel in a few years, selling nus to finance youself as you go.. and not haveing to deal with the partnership over head.. 



you need to dot the Is and cross the Ts on the business side as well... you will find little helpfull nuggets as you go... things like you don't need a commercial kitchen in your state till you break 150 gallons of honey..


----------



## Hive5ive (Nov 21, 2015)

My two cents, don't do a partnership! This business is difficult enough! What you could do if you really need his money is to take a loan from him at a reasonable interested rate. His risk is high, he may require as much as 10% APR. Before you do it start an LLC and get the loan against that. Keep your stuff and the LLCs separate. See if you can set up the terms so that your payback coincides with the harvest. A partnership allows someone with no experience access to your planning and day to day business, do you really want that?


----------



## odfrank (May 13, 2002)

So many Oxymorons in the OP's post:

"He is thinking a percentage of profits, the amount has yet to be discussed."

"Hobby business"

"I would be renting a commercial kitchen for the honey harvest."

"I need to have some sort of payment for my time."

"The investor opined that I have the knowledge"

I suggest both of you run, run run....


----------



## gww (Feb 14, 2015)

Oddfrank


> So many Oxymorons in the OP's post:
> 
> "He is thinking a percentage of profits, the amount has yet to be discussed."
> 
> ...


:thumbsup:
Cheers
gww


----------



## JWPalmer (May 1, 2017)

All the above caveats are things to be aware of. If the financier is so impressed with your skills, have him contract with you to manage HIS hives. You get a paycheck and he gets to carry the risk and potential reward. A partnership in a business that isn't really a business is an incredibly bad idea.


----------



## Charlie B (May 20, 2011)

Forget all of that and keep bees for enjoyment. Work at Walmart as a greeter and you’ll make the same amount of money. Maybe more.


----------



## Gazelle (May 17, 2015)

I was offered $30,000 investment in my plan to one day “go commercial “. I turned him down. From advice I’ve gained on beesource, never borrow money. Grow your Aparary, don’t buy it. The thought of one day something happens, CCD, theft etc., and still owing money, yikes!


----------



## schmism (Feb 7, 2009)

"Hobby business" is a hobby.

IMHO have him buy all the assets. bees, woodenware, extracting equipment. Then you provide the "free" bee keeping knowledge as your hobby. If it makes money great, if not your not out anything. He wants you to harvest, uncap, bottle - (beekeping) great. Its his job to sell it. (marketing - business) 

If you want to get paid for your time (perhaps honey payment) then its a business business not at hobby one.


----------



## Ted (Feb 20, 2000)

Partners are for dancing


----------



## Live Oak (Oct 11, 2008)

Ted said:


> Partners are for dancing


Good call! :thumbsup:


----------



## Live Oak (Oct 11, 2008)

Ted said:


> Partners are for dancing


Good call! :thumbsup:


----------



## Astro 08 (Mar 20, 2018)

Here is my two cents, this is a small business that is really a hobby I would not do a partnership. I personally been in them before and it was not fun, all we did was agrue. 
If you're wanting to do beekeeping start small and grow your apiary. This hobby does not cost that much to start up.
This is just my 2 cents.


----------



## BadBeeKeeper (Jan 24, 2015)

Is it a hobby? Or is it a business? The IRS will insist that it is either one or the other...with very different considerations for each.


----------



## DanielD (Jul 21, 2012)

I like the recommendation to run. If this person is a friend to you, you're most likely to loose a friend.


----------

