Originally Posted by hurryrainscomin
Situation: Schedule is full and I've been turning away new business.
I am considering hiring for the first time, but the numbers tell me it's a good amount of hassle for not a huge benefit. Here are the numbers I have.
Crew expense 52%
Owner % 7%
The current 59% that comes to me drops to 7% if I begin to hire.
I have a good amount of depreciation expense holding down my federal tax bill, but combined, I expect tax/equip to approximate the combined 25% going forward.
From what I see, if I add 2 people and add 40 residential accounts, I can only take $2 - $3 per invoice for myself, or $80-$120/week net increased personal benefit, much of which would be off-set by additional payroll paperwork and equipment maintenance.
Adding employees would let me quote more and larger mulching and fall clean-up jobs, so one question is, how much revenue beyond just new accounts have others found in their experience as they add workers?
What have others found as they went from solo to adding crew, both in net dollars, as well as your satisfaction of running a business?
Very good homework. Sounds like you might have answered your own question allready. I have employees and there are advantages but if you are making good money right now and paying your bills fine consider just staying where you are unless you want to grow in size, some days i want to go back to just having 1 employee but will wait and keep working at it for now.