I am builder and remodeler in the midwest. I have been in business for just over a year and I have done alot more remodeling than building. At this time I have more work than I can handle. The problem is, alot of the work is work that I really don’t want to do. I guess I am afraid that if I don’t take these jobs I will run out of work. My question is, should I hire a helper and put him on the smaller jobs and check in on him periodicly,or just get caught up and turn down the smaller, crappier jobs? I should note that alot of the small jobs are for regular customers that I don’t want to disapoint. Any feedback will be greatly appreciated
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keek,
Its just me talking but can the real small jobs. I don't know what you consider small but if you can't make at least $100. on it...forget it.
Hire someone to help however so you don't lose business based on not being available. I used to give up a lot of work as I'd be on a remodel job that I knew would take me three weeks and I get a call for someone who wanted a couple doors hung but couldn't wait. I could have used help at either of the jobs so I could still be at the opposite one and making money.
The only restriction is whether you are required to pay Workmen's Comp and such like insurance. Thats what always prevented me from hiring as I would have a fair investment in someone long before I ever start actually paying them. I wasn't hesitant about the person themselves, just that I would still need them and that larger jobs would keep coming around. I could never find a person also licensed such as myself that I could tradefarm out work with and didn't want to take a chance on paying someone under the table.
Mike
I've certainly been in your shoes and since I prefer to stay small and involved in the work, getting the right help and keeping them busy enough and paid well enough to keep them can be a dilemma.
My personal modus operandi is to hire some one young, fit, willing and eager who has a phone and a reliable vehicle that I can train. It's worked pretty well (if a little discriminatory) but takes patience to find the good ones. (Be prepared to get burned occasionally). And don't be hesitant to let them go early on if things aren't working out.
I give increases in pay as my trust grows in the employee and his/her skills improve and reliability and safe work habits are developed. Often, the small jobs and the remodels are good training grounds because a green worker can be exposed to various types of conventional or unconventional construction, bad construction, quality construction and long-term results of both.
When your trust level is high enough, you can send them to do those little door adjustments, window replacements, small concrete pours, etc., while you pursue the bigger fish.
If you pick good people and treat them right, they'll usually stick around and become familiar and trusted by your customer base. Eventually, you can end up with a true working partner. One of my guys recently got his own limited license so he could do some side jobs and I suspect he'll eventually be on his own. More power to him!
Thanks for the advice. I think I'll give the employer thing a try. My only concern is the availability of good help in this area. But, I'll just screen applicants carefully. I will have to pay workers comp. Do you guys have any info. on that,as far as how costly that can be. Thanks again.
Look into a payroll service for the time being. The comp rate won't be any worse than what you will pay, and they will take care of the paperwork. You work and send them a check.
I agree and I should have mentioned the temp places because that's a good way to get started. The IRS and the insurance companies can drive you nuts in the beginning while the temp places take care of all that. The other thing is that you can pick your help and just have them sign up with the employment (temp) service and then you just request that individual.
Another thing to look into is the vocational rehab facilities. In my state (Oregon) there is a program that helps disadvantaged youth or young adults get prepped for jobs. The state picks up part of the tab for wages while you work and train them. Gradually, the states' subsidy tapers off as the employee becomes more and more your guy. I haven't taken advantage of the program, but a friend of mine did and it worked very well for him. In the beginning, his share of the employees' wages was about $2.50 per hour.
If you can't make at least a hundred dollars on it forget it. You must be kidding right? You better make a lot more than that, even on a quick repair if there is such a thing.
No, actually I was serious. I've done a lot of jobs that $100 was about the most you would be able to charge. In my area, you're only getting $125-150 or so to hang a door. (Exterior, finished, etc.) Drywall repairs, rotten soffit, fascia, etc. They're not high dollar work.
Granted, I won't do jobs like that any more but I've never seen the high dollar figures for those jobs that some guys quote here.
Just me though.
Mike
I havent seen them either , but I wonder ..............................
From my experience a good helper is invaluable. There are tasks that are more than twice as fast for two to take care of, as one. And while you are busy looking at and bidding new work they can be on the job still getting things done and making you money. Someone that is able and eager are also great to do some of the things that you may not savor too much, ie heading into that 12" crawl space.
I am very picky, because I don't want anyone that I have to be nervous about being around customers. For that reason I pay more than the going rate by a little bit. I can't imagine not having at least one helper. If you can stay busy enough they are a profit center for you, as long as you're bidding right.
I'm trying to only hire people with their own insurance, I've been able to call them subs. Seems like they also have enough responsibility for me to tell them what I need to have done, leave them alone, and they do it! It's a whole new dementia,no,no I mean dimension...the more work, the saner I get...
Bucksnort,
Your definition of a sub vs. employee may be very different from what the government views a sub vs. an employee. I would ask you to look into it for your own protection. My attorney and I have gone head to head about this several times and she always wins. I call them subs and she calls then employees. The problem is if the government calls them employees they will want you to pay the backtaxes plus penalties and interest. This has taken down more than a few contractors.
dl
I've got the checklist, and make sure they all qualify by government standards, not mine...I have none...
So long as you have covered your @ss.
dl
Small jobs..... I got a book that I read only the title of its "Saying Yes When You Mean No". Payroll...30 yrs and I still think sometimes 'happines is making the payroll'........CASH FLOW ....CASH FLOW. Having trouble collecting for one job after its completed will scare the hell out of youif you are depending on it. Helper..... he stays with you all the time. The only job you should send him on is at the back of the house when your working on the front, inspect what you expect. If you send him to another job the client is not getting what they want ,which is you. What you are going through may lead to the question do I want a crew or a company? If its a crew stay with them...If its a company hire the best trained professionals you can find at any price and then go get the jobs. Good Luck my friend