I should keep going........Right?

[TheTurfTender]

I am thinking of hiring a guy to run the day to day operations of my business. As some of you may know, I just started this thing a few months ago (Feb), but I have grown my client base to near 30, and I have 5 estimates ready for next week so the list should continue to grow.

I just got an offer in my previous line of work that doubles my projected 2nd year REVENUE for lawn care. It may be irresponsible not to take it. That being said, I still want to run this business, and grow it into something I can focus on full time. For now, I would like to hire someone to do the actual lawn care for me. I have a guy in mind with about 10 year’s exp, and don’t mind growing with the business, so I have that part down.

I am looking for two kinds of responses.

1. Some may think I am getting in over my head, but I assure you I am up for the challenge. I would, however, like to know what kind of contingencies I should be prepared for aside from the catastrophic.

2. How should I set up the employee relationship? I have the truck, all equipment and insurance (General Lia, Bonding, Appropriate licenses, etc). I don't have worker's comp. Should I purchase it, or can I set him up as an independent contractor? What other ideas should I be thinking of on this one?

Anything else you want to throw out there I will respond to and see if I can configure a work around.

If all else fails.....I have a bunch of equipment for sale and a pretty decent client list!!! :)

[IMAGE]

Workmans comp is pretty cheap, at least it is here. Its like $4 per every $100 you pay the employee. But it is capped at a max of about $1000 that you would have to pay in each yr per employee. That being said, i would hire an employee if you feel its neccessary

[MarcSmith]

for 30 accounts, I don't think thats worth it... your employee is going to want good pay for running the ship on his own...25K min...you are going to need gross 75 at least....25 for the employee,. 25 for overhead(fuel, equiment, taxes, insurance) and 25 for your pocket...any less and its not worth the headaches.

will 30 accounts pay the bills.????what happens when you lone employee decides to leave in the middle of summer and you are stuck.... What happens when the employee starts doing cash jobs using your equipment and your gas?

employee's need day to day supervision. and I don't think you employer will look to highly when you are on your cell phone every day taking with prospective clients or talking to your employee...

just some food for thought....Pick one....full time job or full time lawn care...

also you cannot hire him as a independent contractor since he is using your equipment and you are dictating the schedule, he is an employee...

[hackitdown]

Take the job. Give the employee a try, you have nothing to lose if the only other option is to close up shop. If he sucks, try another guy. You can use a payroll service like Paychex, they can help you with everything needed for employing a guy.

[bohiaa]

What I do is, take someone with me and see how he does,
not only does the "NEW Employee" need to be able to do the work, he's also a "Front man" MEaning he's the one that the customer see's, He's the one that people see doing the work. He better be on bord, Or you can loose your A$$......

you will have to check with your state for state laws, Dont take anyone's word here on the law.......


Good Luck

[topsites]

I think it would be irresponsible to hire someone at this early stage in the game.

[TLClandscaping]

BE CAREFULL! Make him sign a non-compete agreement before hand "if it sticks in your state".

[SilkKnitter]

BE CAREFULL! Make him sign a non-compete agreement before hand "if it sticks in your state".

That is a great idea!!! You should also see what kind of work he does. You don't want a hack taking care of your customers.

[TheTurfTender]

****UPDATE****

I did a ride-a-long with the new guy today. Like I said, he has 10 + years in the business, so he was actuallly willing to share a few ideas with me. He is excited to have an opportunity with a new company and likes the growth potential. Additionally, he did some great work. I am being careful and realistic with him as far as the expectations go, and let him know that there is only 2 1/2 days of work as it stands right now.

We did get 3 calls for estimates tomorrow, and I already had one set up, so he sees that as encouraging as well.

I am going to pay the $700 for Workers comp and have him sign the non compete. That's really it as far as the paperwork is concerned.

Image....$25 k for Six months of work and 2 1/2 days of work.....Will you hire me for that? If I can make a few hundred bucks a month for the time being and get some expierence running a business at the same time, I think it is going to be worth it.

I may fall flat on my face, but it won't be the first time!! It really seems manageable. Estimates, paying the bills, and returning phone calls promptly when I get home from my day gig doesn't seem to imtimadating to me. I am thinking that is when most people will want to talk anyways.

[mtnzone]

why dont you make him a managing partner??

Gives him a vested interest in making the business grow.

Pay him a salary or wages. tell him once he proves himself after second year he can put money into the businnes to purchase part in only 10% increments and now more than 30% total this way you maintain majority ownership and have final say in all manners.

Also after 1st year if he does well give him healthy bonus..
Second year give him profit sharing at the same time he is allowed to buy into company.. that way he can use the profit sharing for purchase in. you dont lose anymoney.. and if he takes the idea have it worked up by lawyer stating the percentage of profit sharing each year. and his responsibilites as being a junior partner in an increasingand profitable business...Just make sure that you keep the majority but also give him the right of first purchase offer if you decide to sell.

you have just gained a valuable pertner who has experience and for the first two years before he is a partner or not you have an employee that will want to work towards the futre..

This will also give you both time to assess how the relationship works if at all...

you have nothing to lose. and everything to gain this will allow you to expand the business, gain a good employee hopefully, and for you too concentrate more effort on the other job...

my 2 cents..

[ponyboy]

who is willing to work only 2 or 3 days a week how can one survie? is he retired or does he run another business on the side? hire him part time do the lawns after work and on sat if necessary, keep one day a week foe estimates.

[IMAGE]

****UPDATE****



Image....$25 k for Six months of work and 2 1/2 days of work.....Will you hire me for that? If I can make a few hundred bucks a month for the time being and get some expierence running a business at the same time, I think it is going to be worth it.



I believe you ment Marcsmith, not me :)

Although, since you ask:

yes I would work as am employee for $384 a day. However, I would not run a 30 account business as an owner for "a few hundred bucks a month" just to gain the experience. One insurance claim is more then that.

You could make a 'few hundred bucks a month' by dropping everyone and just keeping the 5 best paying accounts, heck that is probally more like 1k a month. If your gun ho on the new job, I would do it that way. You would have less head aches. But if your serious about growing the LCO biz, along with keeping the new job, then your gonna need alot more customers to make it worth it, IMO, because 'a few hundred bucks a month' is not worth the head ache to me.

* I'm a newbie! * **take all advice at face value and dont assume wisdom **

[TheTurfTender]

My apologies! I did mean the other fellow!

He has a few other side jobs including scrapping, etc. in which this endeavor works well for him. Anyway, people keep saying that he is going to be running the business....not at all. I am running the business. He is doing the day to day work. I am still the workforce manager, quality control, and financier.

Question. Say I titled this thread " Starting my 2nd Crew" How much different would that be besides the number of clients. Or for that matter "Thinking of going behind the desk" I am the first to admit I am ignorant to the grind of labor, but I feel like this is something I can be efficient with. If it continues to grow at this pace, and referrals start coming in, then I can start to focus on it full time again....

[MarcSmith]

Turf....when you start a second crew, you already have an established business though, you already have money coming and a good net profit to show that you are ready to open up a new crew. in most cases before you stick on a new crew, you would already be working over time hours, and extra days to keep up while praying for no rain so you don't get behind since you are stretched thin.

Here you are, not even close to a full route, no time behind a mower and you're gonna turn it over to someone. And for what....lets say you're getting $40 a cut on 30 homes....thats $1200 ($1 per minute target rate) potentially each week. Your one employee is going earn $15 an hour (hopefully more since $300 a week won't do squat) for 20 hours...$300... fuel $50 a week, WC, employer matching of SS, and medi, truck insurance, business insurance, breakdowns, and can't forget uncle sam.... so basically $300 to employee, $300 to overhead, $300 to taxes, and $300 in your pocket to pay your "manager wage". and nothing goes back into business. the business is living paycheck to paycheck....

Plus you are going to want your business to grow, which mean running on estimates after work and on weekends, you will still have to do the regular equipment maintenance at night and on weekends.. So for yourself, you are looking at 40 hours for your regular job and another 20 hours for the lawn biz.

What happens when your guy calls from the field in the middle of the day as a result of an accident or some other issue he can't handle, are you going to be able to leave your job and take care of the problems. I see you potentially burning your full time gig for 2 hours each day with your side biz answering the cell phone, replying to emails, ect.

Running a business is a full time deal, even if its a part time business. That is if you want to run it properly.

[mikewhit1010]

I work full time at an appraisal district and I am always in places where I cant answer my phone and we are very micro managed. That being said take the job and run your lawn business. You know what can happen. You can get fired but then you have a great back up job.

I have gone through 3 guys. Just go inspect the work after you get off. Let him know that you are doing it so that he stays on his toes. I tell my guys if they get cash jobs on the side to take them but call me first. If I cant get the person up more on money then they can take it after the work day is done and they can shoot me some money for gas. Why do I do this. Its to keep them happy. So far I have locked contracts with three people offereing $20 cash to do their lawn. I have gotten those people up to $32 and my employee was shocked. I told him that is why I own the business and if he sticks around he will be there too.

Make him feel very important but dont let him know you depend on him. If you have sick and vacation time use it wisely. When your guy gets sick you are getting sick. Make sense. Also if he books it make sure you have a back up plan.

Anyway that is some food for thought. Yes I am over loaded but I am growing my business and making a lot of cash while I am doing it.

Sorry this reply is so long.

[Greenery]

Turf Tender I just happened to see your ad in the wrightway shopper looked nice.