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Letters to the Builder's Engineer — On Business Partnerships

As everyone else, I routinely glance at my NAHB e-mail newspaper headlines and sometimes actually read a few. I have never, even upon invitation, been compelled to respond until now. After reading your article on business partnerships (“What Is the Optimum Shelf-Life of a Business Partner?”; Oct. 25) I felt I had no choice but to write. What a negative description of our business society and humanity in general! I would hope that you can substantiate your opinions well beyond the business life experiences of “Timultuous” and “Barfo.” I’m wondering if you were conked in the head to begin with, thus beginning the saga of repeated partnering failures. No disrespect intended here, Tim. It just seems such a sad commentary to think that only 10% of all partnerships will survive.

I would like to be the first to help restore your faith in “we” construction types. I am the 48-year-old vice-president and half-owner of Grendahl Construction, a custom home builder in the Sacramento, CA, area that was started in 1973 by Thor Grendahl, Sr., whose son, Steve, took the helm of the family business upon Thor’s retirement in 1980. Steve and I crossed paths in 1987 while I was working on my own as a licensed contractor and sub-contracting my services. I had the good fortune of cutting and stacking a difficult roof structure on a residential remodel for Steve.

Over the next three years when I did several more projects for Steve, coming and going in between, we began to find two things were abundantly clear. First, we both had something the other needed: his talents were in accounting and estimating while mine were solely in the building end of things. And second, which was surprising to both of us, Steve’s reputation and referrals began to have my name attached to them. After one of my departures to take a job as a residential building inspector for the county — which lasted until layoffs came six months later — I asked Steve for some more work. He asked me what it would take to get me to stick around this time and ended up offering me a partnership in the business.

Now it’s time for true confessions: I had been in a previous partnership that lasted for two years, but it was assimilation into a larger company that spelled our end, not disagreement. I did have reservations, nonetheless, so I trusted my gut and shook Steve’s hand. We incorporated in 1993.

Admittedly, it is not always easy. Steve and I have completely different personalities. He’s right-brained and I’m left-brained — the teacher and the drill sergeant working together! We often have to laugh at our sometimes diametrically opposed positions on certain topics. We can be worlds apart in our views on how to approach things, but rarely do we disagree in the end, and that’s because our core values and goals are alike. The fundamentals of integrity and trust come to mind. It is my firm belief that your 90% to 10% partnership failure ratio could be nearly reversed if these fundamentals were applied and adhered to.

A strong partnership is a bonus for the client in many ways. Two heads are better than one. If you alternate vacation schedules, a company owner is always available. Yes, you have to share the profits, but it’s great to know that what ever comes, somebody you can count on has “got your back!”

George P. Henley, vice president, Grendahl Construction 

One of the Lucky 10%

I enjoyed your article, and I will tell you that I am one of the lucky 10% you described. I have had a great business relationship with one individual for some nine years now in a partnership that was formed in less than 24 hours.

I agree with the reasons you cited for forming partnerships, but there is one thing that you may have overlooked. Partners can make up for each others’ deficiencies. I have more of a visionary personality and am not detail-oriented, which has caused me problems in the past. My partner is a doer, on the other hand, but can't plan ahead. As partners, I believe we’ve put together a whole that is greater than the sum of its parts.

Emil Wanatka, president, Timberline Builders; Durango, CO

Not Meant to Last

I had a business partnership once that lasted one year and four months. If it hadn’t been for the one-year warranty, it would have only lasted the four months. Compatibility was definitely not evaluated prior to joining forces. Not that things went bad, but I agree with your article.

Dan Foutz

A Good Match

My partner and I have been in business for 17 years. This will be the final year, since he is retiring. We have never really socialized outside of work, but we maintain a good business relationship. When I formed the partnership, I was matching my weaknesses with his strengths, and vice versa. We have seldom crossed over to the other person’s area of expertise. There may have been occasional differences, but they were quickly resolved through good communication. In any partnership, mutual respect is very important, along with trust. We never had a buy-sell agreement, so it can be done successfully without one.

Pam Guthrie 

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