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geefree

  • Posts: 6180
Hi,

Currently building but ultimately i want to take someone on , then i want to split the round in half and build again and so on...... but i could do with a little help right now ...

my dilemma is , do i take a cut in wages , take my brother on ( always nagging me)..

and build faster with two of us .. plus clean the existing houses quicker, therefore giving more breathing space...

or do i wait until i cant cope, then do it....

or do i  simply fill my round, and ditch the low priced calls, and carry on that way until i have a comfortable round without the hassle of employin...?

i would like to hear both views if i can... people who are succrssful employing people and those who would rather ,simply build themselves a decent round and shy away from the traumas of employing.

Thanks.

Gary.

Rob_Mac

Re: Business thinking guys.. do you Employ to build or build to employ.
« Reply #1 on: March 21, 2008, 07:32:58 am »
My opinion comes from the viewpoint that I want to be retired in the next five years (retired meaning not getting hands dirty anymore).

If you want to build a business that will continue to pay you, when you want some time off, want a 2 week holiday or are going to semi retire - then you have to employ or sub contract, franchise etc. Either way you are handing over the responsibility of the day to day running to another.

With this you will have the head aches that go with this decision, tax, N.I., paying for holidays, equipment being broken, the list is endless.

It is difficult as we have so many variables of different people on here, that are all in different situations and what is right for me may be completely unachievable for someone else, or just not their dream.

There are many on here who earn exceptionally well as lone operators, so can afford to take time off on the understanding that for a holiday period they will not earn but when they kick back in they will be back in the money, these same people may be sticking into ISAs and savings accounts for their retirement. On the flip side their will be the same who do not look toward the future and spend what they get in, as soon as they get it and fail to see the long term picture

You are coming towards a crossroads in your business and the decisions you will have to make will be difficult ones - I say employ, look after your employee/s and they will look after you and with the right people you can build a solid business capable of doing more work as you have more hands to utilise than the one man operation.

Good luck

Rob ;D


jonah

Re: Business thinking guys.. do you Employ to build or build to employ.
« Reply #2 on: March 21, 2008, 07:36:04 am »
excellent advice Rob  :)

Rob_Mac

Re: Business thinking guys.. do you Employ to build or build to employ.
« Reply #3 on: March 21, 2008, 07:48:44 am »
Thankyou

This is a difficult post to post on as I have just sold a residential round to concentrate on commercial - high end contract work and have reinvested heavily in three other areas, which will take us away from window cleaniing but still in the cleaning sector.

Phone call last night - £22000.00 window cleaning contract, we have been looking after for 4 years - lost to a national contracting company that has all the branches.

I am a little disheartened at the moment but this is the path I have chosen and the income will be replaced, we are already working on two other contracts and looking into moving into another specialist field.

High end contracts like these are not for everyone, for this very reason but boy they don't half pay well and the buzz when you pick a new one up is phenomenal.

Whatever day you have today, or if you lose a clean, or something goes wrong - take it on the chin, let it hurt, learn from it and get back out there and get some more work in.

Rob ;D

steve m

  • Posts: 796
Re: Business thinking guys.. do you Employ to build or build to employ.
« Reply #4 on: March 21, 2008, 09:24:04 am »
build to earn money, simple. All I want is to earn enough to have a good lifestyle, pay the bills and have enough to do whatever I need/want to do.

Employing people just seems to be complicating the job. If you need to earn more money start up something else

geefree

  • Posts: 6180
Re: Business thinking guys.. do you Employ to build or build to employ.
« Reply #5 on: March 21, 2008, 10:40:00 am »
Many thanks Rob,

it will be difficult when i have to make those decisions , as you have said,

i would probably go with your advice as i dont want to be killing myself physically later in life simply to have a comfortable lifestyle,.. how can it be comfortable, ?  apart from sundays.



Also if i wanted to go into something else, then i would be in the same boat eventually too.

Of course its about making money and that bit  IS simple to understand, (the reason we work ::)).... but when its at a point , a crossroads, there are decisions to be made..

Thanks for that brilliant advice Rob.


Ian Lancaster

  • Posts: 2811
Re: Business thinking guys.. do you Employ to build or build to employ.
« Reply #6 on: March 21, 2008, 10:53:12 am »
My opinion comes from the viewpoint that I want to be retired in the next five years (retired meaning not getting hands dirty anymore).

If you want to build a business that will continue to pay you, when you want some time off, want a 2 week holiday or are going to semi retire - then you have to employ or sub contract, franchise etc. Either way you are handing over the responsibility of the day to day running to another.

With this you will have the head aches that go with this decision, tax, N.I., paying for holidays, equipment being broken, the list is endless.

It is difficult as we have so many variables of different people on here, that are all in different situations and what is right for me may be completely unachievable for someone else, or just not their dream.

There are many on here who earn exceptionally well as lone operators, so can afford to take time off on the understanding that for a holiday period they will not earn but when they kick back in they will be back in the money, these same people may be sticking into ISAs and savings accounts for their retirement. On the flip side their will be the same who do not look toward the future and spend what they get in, as soon as they get it and fail to see the long term picture

You are coming towards a crossroads in your business and the decisions you will have to make will be difficult ones - I say employ, look after your employee/s and they will look after you and with the right people you can build a solid business capable of doing more work as you have more hands to utilise than the one man operation.

Good luck

Rob ;D



Not true ;D

geefree

  • Posts: 6180
Re: Business thinking guys.. do you Employ to build or build to employ.
« Reply #7 on: March 21, 2008, 11:04:15 am »
quote]

Not true ;D
Quote
why not  ian. please explain.

mick hay

  • Posts: 1072
Re: Business thinking guys.. do you Employ to build or build to employ.
« Reply #8 on: March 21, 2008, 11:07:58 am »
Hi Ian, ooking forward to your talk on franchises next week..see you there!

geefree

  • Posts: 6180
Re: Business thinking guys.. do you Employ to build or build to employ.
« Reply #9 on: March 21, 2008, 11:19:42 am »
 ;D

geefree

  • Posts: 6180
Re: Business thinking guys.. do you Employ to build or build to employ.
« Reply #10 on: March 21, 2008, 11:47:45 am »
Thanks Ewan,


that is one of the options i ahve stated... low priced... taken on at the beginning when i had little idea how to price,

Are there any w/cs out there who have a full round of excellent prices.... really truthful answer please?..... its a slow process to get rid and replace but it needs to be done...

by the way, when i fisrt started i did target larger properties, and my round is quite full of decent priced work... but there are a few i need to siphon out.

Gary

bluez

  • Posts: 519
Re: Business thinking guys.. do you Employ to build or build to employ.
« Reply #11 on: March 21, 2008, 11:52:52 am »
All businesses should have a business plan. Work out where you want your business to be in 1,3, 5 years and put in place a plan to get you there. By the sound of your post you are planning on building a business as opposed to a round.

You cant build a business on one person imo so you will have to employ/ franchise/ sub contract and deal with all the issues involved in that if you want to build a business.

If you have £1000 per week work now you are probably busy working hard. If you employ the right person they will do the £1000.00 work and you will pay them maybe £400 per week. You will supervise there work and also devote your time to getting new work. By the end of 1 year you should be aimimg to have double the work you started with and two employees so your turnover will be £2000 per week and your outgoings will be increased by £800 wages and the cost of running a second van. At this stage you have invested a year of your time and £20,000 in labour cost in your business and you are only now back to  earning the same as when  you started but if you continue the expansion by the end of year three you have a sizable business with 3/ 4 employees and an asset that can be sold or passed on.

The figures used are for example only.
  

hi

dave0123

  • Posts: 3553
Re: Business thinking guys.. do you Employ to build or build to employ.
« Reply #12 on: March 21, 2008, 04:10:11 pm »
Pity Ians talk couldnt be recorded for those who carnt go :( as its a very intresting subject.
Dave.

birdymiller

  • Posts: 682
Re: Business thinking guys.. do you Employ to build or build to employ.
« Reply #13 on: March 21, 2008, 04:47:09 pm »
I have been a wc for about 10 years. I always wanted to get to the stage where i could have enough work and staff to be able to send them out at the beginning of the week. At the end of the week they bring me my share say 30%, so if i had enough teams of staff say 4 teams of 2 i could collect in around a grand a week for not doing much.
This on paper or a screen looks great. The reality in my opinion is not so great. In previous posts people have mentioned the problems of being a big operation so im not going to go there. This is just my opinion. I have gone through about 40-50 lads in 10 years, i have tried it with older guys but they dont have the same motivation as you do when they realise they are gettin £10-£15 and you get however much you earn.
Im still trad but hoping to get into wfp soon. I enjoy trad cleaning and cant see the need to spend a couple of grand on wfp when ive a got a system that works.
For a month now i have been on my own. I have put prices up by £1 to £2 and so my hourly rate has inreased by 20%. The problem i have is that my round does about £1300 a week. Im pretty fast but i aint going to bet it all done. I have been thinking about selling some but i cant think of an area to sell because most of my custys think im great. Especially now im on my own.
I think at the start of this post i wanted to say that having staff is hastle and being on your own is not. But the more i type the more im not so sure.
Dont know if this makes any sense but to recap im alot happier being on my own earning great money, not having to rely on people, cover up their mistakes but i will never get around my round on time.
Cheers, Paul.

geefree

  • Posts: 6180
Re: Business thinking guys.. do you Employ to build or build to employ.
« Reply #14 on: March 21, 2008, 04:57:08 pm »
nive post birdy,

cant you get a working partner who would be willing to invest,

i totally understand your dilemma, well i  dont , i suppose because you have done it all, and i am very inexperienced compared to you.

have you tried just one reliable hard worker , to ease the strain for you, and pay him well?

you probably have tried it all,

it would be interesting to hear from the other guys who have staff.

Gary.

geefree

  • Posts: 6180
Re: Business thinking guys.. do you Employ to build or build to employ.
« Reply #15 on: March 21, 2008, 05:00:38 pm »
good sensible advice too Bluez  ;)

bluez

  • Posts: 519
Re: Business thinking guys.. do you Employ to build or build to employ.
« Reply #16 on: March 22, 2008, 04:38:56 pm »
I have been a wc for about 10 years. I always wanted to get to the stage where i could have enough work and staff to be able to send them out at the beginning of the week. At the end of the week they bring me my share say 30%, so if i had enough teams of staff say 4 teams of 2 i could collect in around a grand a week for not doing much.
This on paper or a screen looks great. The reality in my opinion is not so great. In previous posts people have mentioned the problems of being a big operation so im not going to go there. This is just my opinion. I have gone through about 40-50 lads in 10 years, i have tried it with older guys but they dont have the same motivation as you do when they realise they are gettin £10-£15 and you get however much you earn.
Im still trad but hoping to get into wfp soon. I enjoy trad cleaning and cant see the need to spend a couple of grand on wfp when ive a got a system that works.
For a month now i have been on my own. I have put prices up by £1 to £2 and so my hourly rate has inreased by 20%. The problem i have is that my round does about £1300 a week. Im pretty fast but i aint going to bet it all done. I have been thinking about selling some but i cant think of an area to sell because most of my custys think im great. Especially now im on my own.
I think at the start of this post i wanted to say that having staff is hastle and being on your own is not. But the more i type the more im not so sure.
Dont know if this makes any sense but to recap im alot happier being on my own earning great money, not having to rely on people, cover up their mistakes but i will never get around my round on time.
Cheers, Paul.

Birdy I understand your frustrations .................but If McDonalds gave up because of high staff turnover or because the ceo was the one the customers wanted to serve them they would like you be self employed as opposed to in business.

No disrespect intended but Maybe the issue with staff is about you and not them, they are never going to be as good as you are because it is your business/dream so you have to allow for that and they will leave you when the mood takes them but that is now your job as a small business owner you are the HR person, the accounts person the sales person etc, some who have worked hard physically for years building a round might find it difficult to move from a straight forward windows dirty......windows clean occupation to running a business and all of the headaches involved in hiring and firing and it can sometimes seem (and be) easier just to do the work yourself but that limits the potential of the business.

Just my opinion, no ,more valid than yours or anyone elses.

hi

Karl Wheeler

  • Posts: 377
Re: Business thinking guys.. do you Employ to build or build to employ.
« Reply #17 on: March 22, 2008, 05:03:38 pm »
Hi Guys
I have found you posts very interesting. I run a contract cleaning company and up to a year ago I worked alone. I had got to the stage where i was working from 4am through to 8am. I was getting no younger and the physical tolls started to show.Constantly tired and stressed. I decided to take the plunge and employ and I can tell you it was the best thing i have ever done. It allowed me to actually run the business properly, before i was the worker, the person who did the quoting and the admin work. I now have time to see what jobs are not cost effective, what areas the business was wasting money etc . This came from having suddenly having freed up time by having others do the work. In the last year the business has trebled in turnover and we hope to hit the £200,000 mark by the end of the year. I employ around ten staff now and when i went on holiday in February, it was the first time i was able to relax totally, knowing that all my contracts were covered by my staff.
It has allowed me the time to run my business properly, giving me time to target the larger companies where the real money is.
I know this is only my opinion but if you really want to own a business with a good turnover you need to employ. It is the future you need to look at and you have to ask will you be able to do the same work and hours when you are in your sixty.By employing and building your business correctly you should earn the same income as you do now ( if not more) but be sitting behind your desk with your staff earning the income for you.

Regards
Karl

nat

  • Posts: 993
Re: Business thinking guys.. do you Employ to build or build to employ.
« Reply #18 on: March 22, 2008, 05:29:02 pm »
Hi Guys
I have found you posts very interesting. I run a contract cleaning company and up to a year ago I worked alone. I had got to the stage where i was working from 4am through to 8am. I was getting no younger and the physical tolls started to show.Constantly tired and stressed. I decided to take the plunge and employ and I can tell you it was the best thing i have ever done. It allowed me to actually run the business properly, before i was the worker, the person who did the quoting and the admin work. I now have time to see what jobs are not cost effective, what areas the business was wasting money etc . This came from having suddenly having freed up time by having others do the work. In the last year the business has trebled in turnover and we hope to hit the £200,000 mark by the end of the year. I employ around ten staff now and when i went on holiday in February, it was the first time i was able to relax totally, knowing that all my contracts were covered by my staff.
It has allowed me the time to run my business properly, giving me time to target the larger companies where the real money is.
I know this is only my opinion but if you really want to own a business with a good turnover you need to employ. It is the future you need to look at and you have to ask will you be able to do the same work and hours when you are in your sixty.By employing and building your business correctly you should earn the same income as you do now ( if not more) but be sitting behind your desk with your staff earning the income for you.

Regards
Karl

amen  ;) man after my own heart, you need to be able to steer and grow your business and you can't do that holding a pole all day ;)

dave0123

  • Posts: 3553
Re: Business thinking guys.. do you Employ to build or build to employ.
« Reply #19 on: March 22, 2008, 05:31:02 pm »
Quote
amen   man after my own heart, you need to be able to steer and grow your business and you can't do that holding a pole all day 



I quite like holding my pole all day ;D
Dave.