Originally Posted by biodale
Oh my oh my oh my. I have enjoyed this post. I know you think you have a great business plan for a lawn care business. Let's say you have the marketing nailed. You have some money because the printing of 50,000 flyers cost a certain amount of money. I am assuming you are using nice card stock and maybe color to attract attention. The big boys tell me it cost $150 to get a customer with their promotions, discounts, gifts, and overhead. So the Trugreens and Brickmans would spend $37,500 to get 250 customers. But what do they know, they are only the biggest and best at marketing in the lawn care industry. So if you can beat them at the marketing game, your company will soon be driving Trugreen and brickmans into bankruptcy and that would be ok with me. Maybe your company will sponsor a super bowl add in a few years.
It is interesting to me how you are solving your labor problem. I pay my employees more than the standard for the industry and I still can't find reliable, hardworking, trustworthy employees with common sense. My employees arrive late, ruin equipment, have their driver's licenses suspended, etc. on a practically daily basis. You would think anybody could mow a lawn. Most of my employees I would not let mow my own lawn. I seem to be working full time fixing the problems they cause and putting out fires. But you have found a way to pay your employees nothing while still getting the job done. You are awesome. Tell me HOW YOU DO IT.
The next thing. The cost for handling the employees compensation in this way in fines, penalties and interest will amaze you. I hate L&I. The mafia is easier to deal with. Compensation in whatever form must equal at least minimum wage. So if your commission does not equal minimum wage you will be on the hook for that. It is perfectly legal to pay commission only as long as the compensation is greater than minimum wage. How do I know. Last year I paid one employee commission only for what do you know SALES. At the end of the season he turned me in to L&I and state unemployment agency. I said he was an independent contractor. To be an independent contractor he would have had to have his own business license and work for other people or companies than me. Since he just worked for me he was classified as my employee and I ended up paying his unemployment and back wages.
For the actual lawn care: You have contacts that will do the work for you. So you will charge your customers enough that you can pay someone else to mow for you. Lawn mowing doesn't bring in much profit. I will be surprised if you can find someone who will lower their prices enough to give you a cut of the mowing profit. If you can, great. You have that covered.
I guess you are the man. If this works for you I want to have your first franchise.
Good luck. You are going to get a schooling.
You do know he's not in the US, and all these labor laws may not apply in Australia.