Why I Relied on Strategic Partners (and Why You Should Too!)
Build a strategic service partner network to cover overflow, share leads, and back you up—grow smarter without the headaches of a formal partnership.
KickStart: Partner up with other high-quality residential service providers instead of giving up equity and control in a traditional partnership.
As a residential services business owner do you often feel like you’re carrying the whole world on your back? Yes?
Trust me, I’ve been there, got the T-shirt, got the scars and the hard lessons learned to prove it! 😢
Sales, marketing, hiring, production, payroll, finances PLUS a long line of whining, entitled employees—it all lands on YOU! 😡 No wonder so many of my consulting clients tell me, “Steve, I’m going to take on a partner to help carry the load.”
This is where I literally drop to my knees, clasp my hands and beg this poor, beat up entrepreneur, “PLEASE, don’t do this!” 😮
Sure, there ARE a very, very few "good" partnerships. More years ago than I like to think about I had just such a beautiful business arrangement. 💕 Chris was the perfect partner for me and still is- we talk four or five times a week.
But for every partnership like the one Chris and I enjoyed (we’re still best friends), there are 1000's of partnerships that create so much unnecessary heartache. ❤️🩹 Lawyers, contracts, shared money, disagreements, hurt feelings, resentment—it can get real ugly real fast... and usually does!😢
But wait! This doesn’t mean the concept of “partnering” is bad. Far from it. You just need to "partner up" the smart way. This is where…
Strategic Partners (S/Ps) will save you.
Unlike formal partnerships, a S/P is a simple, handshake-style relationship built on trust and mutual benefit. No contracts, no legal mess—just two professionals watching out for each other.
Here’s how I used Strategic Partners in my residential services business (and how you can benefit from S/P’s too):
1. Overflow Coverage
The residential services industry is often "feast or famine". Some weeks you can’t keep up, other weeks you’re twiddling your thumbs. With a good S/P, you pass along overflow work to a trusted pro and still make some profit on the job.
NOTE: I recommend my clients negotiate a cut of 10–20% depending on the service. Along with of course a clear understanding to not steal their client. Then next time their S/P is swamped, they send my client their overflow jobs. Fair, simple, and lifesaving if you get sick, injured or inundated with jobs.
2. Teaming Up with Niche Providers
Not every residential contractor can handle big jobs. (Or highly technical, specialized work outside of your skill set.)
FULL DISCLOSURE: The sad saying, “Ready-FIRE-aim” was invented for me early in my career! But seriously, there really is a time to say to yourself (never the client), “This job would put me in over my head”!
If a smaller outfit sends you a project, bring them in as your subcontractor and give them a fair percentage. It’s a win-win for everyone. On the flip side, build relationships with subs who give you priority service when you need them fast.
Pro tip: Don’t just hand your S/P a clipboard and walk away. Make sure your Strategic Partners grasp and have systems focused on the “people side” of residential work—what I call the Emotional Dynamics. Your reputation (and future cash flow from this client) is still on the line. 💰💰💰
3. Commercial vs. Residential Trade-Offs
If commercial work isn’t your thing, don’t just walk away from those calls. Partner up with a reputable commercial pro and send them leads. In return, they kick residential work your way. You can both grow your business without stepping outside your lane.
Bottom line: You don’t have to go it alone. Strategic Partnerships let you share the load without losing control and/or equity. Build smart S/P relationships, protect your client base, and you’ll sleep a whole lot easier at night. 💤💤💤
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