Originally Posted by chefj
I don't want to be overly critical, but I think the model is wrong.
I wouldn't want "amateur" kids mowing lawns in an "upscale community" with homeowner grade or less equipment. While charging the same rate as a 20 year veteran that is using all professional equipment and I know he'll show up every Tuesday morning.
Sorry, but do you understand my premise?
Originally Posted by GreenI.A.
Here are my big concerans -
First and foremost. If you are going to be charging the same rates as larger companies, why would anyone hire a kid whose service they do not know about when they can hire a good known, recognized, well reputable company for the same price
These guys are going to be considered sub contractors since you are requiring them to use their own equipment, vehicle, responsible for fuel, wear&tear etc, just being paid a flat rate per lawn.
Insurance - these guys probably wont be able to afford propper liability insurance, which means you are responsible for this. Liability insurance and workmans comp coverage is usually higher to cover subcontractors than to cover your own seasonal employees. you may think that there is little chance that a guy doing 20 lawns will have an accident, but it happens. With 20 subcontractors it is now 20x more likely to happen.
Tax - as pointed out above you are responsible for 1099ing them.
You may think these are not big issues but here is a common occurrence when people are improperly sub-contracted. You decide a guy is doing a poor job and decide to no longer give him work. He doesn't understand how things work and tries to file for unemployment. He's denied coverage, but then fills out all of the forms for an appeal, during the appeal process it comes out that because of how the process was done he may be considered an employee. You end up spending a ton of money fighting this on your end, ultimately the state can come in and determine they are actually employees and make you pay fines and provide coverage.
Another common occurrence with improper employment/sub-contracting practices, is that the sub-contractor get injured and goes to the hospital. When asked what happened he says he got hurt working. They advise him about workers comp, (i know when I have had work related injuries the ER has given me a pamphlet about WC and workers medical rights), he finds out that as a subcontractor working on your customers property he may be covered by your insurance. But you don't have insurance, so you are sued. You don't have much, but your mother is involved in the management of the business so she is sued as well.
Here's a third possible outcome. The kid working for you causes damage, hits a rock and puts it through a window/glass door. Who is responsible? Do either of you have the insurance to cover this? What if that rock hits little Jimmy in the head as he ride his bike by the driveway?
For the costs of what you are considering, I would think you would be much better off starting it slowly and buying your own equipment and vehicles and setting up one more route at a time.
If the guy has his own vehicle, all his own equipment and you hand him a route of houses what is to keep him from knocking on the door and offering a better price and taking the clients? Once he has been working the property for a while the customer is going to see that it is him and not you doing the quality work. You said you are going to keep the majority of the funds while he pays all costs (other that the acquisition cost). What is to keep him from offering 25% off, he would be cheaper than you, and still be making more money than you paid him.
Your posts sound a lot like mine that was deleted. I told him I'd pay to NOT have teens mow my lawn.
Apparently that was too harsh so it was removed. Some people need to be a little less sensitive. Life isn't all about puppies and kitties and having smoke blown up your rear by only allowing "attaboy" replies.
I've said it before. Other forums frown upon discussion of illegal activities, yet here we are debating and making suggestions on how to run a completely
I'll go ahead and assume that I was 100% correct that the business name is not registered either.
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