Growing Pains

Discussion in 'Business Operations' started by chrisvinky, Apr 12, 2012.

  1. chrisvinky

    chrisvinky LawnSite Senior Member
    Posts: 350

    I have a couple of guys lined up that are willing to work on call now. I plan on utilizing them to get caught up with the landscaping. I am still considering purchasing another mower to add a second guy for mowing which hopefully would leave me some time to meet with prospects and run estimates, get materials, etc...

    I don't want to add a full time employee until I see at least 50 weekly mowing accounts. I think the numbers would justify it then. I would eventually like to find a trustworthy person and leave the mowing crew to them and I would head up landscaping, sales, estimating, etc...

    Thanks for all the candid responses. As most of you, I am good at mowing and landscaping...not so much at the business side sometimes. It's tough when you have to wear all the hats but that's part of it!
     
  2. Duekster

    Duekster LawnSite Fanatic
    from DFW, TX
    Posts: 7,961

    The hardest part is the accounting particularly when you do start adding people. I think as Obama care gears up the reporting of 1099's and such is going to mean more. The IRS is growing in size and they will be turning over every rock looking for people without insurance and why they do not have any.

    Measure twice and cut once as the saying goes so you may want to focus on the back office operations a little closer too. Good Luck
     
  3. GreenI.A.

    GreenI.A. LawnSite Silver Member
    Posts: 2,132

    Not to go completely off topic but I'm guessing it won't be hard for the IRS to see who has insurance. i'm guessing Obama care will use a similar method as Romney Care here in MA. Every hear your insurance carrier provides you with a form that shows the period you were covered over the year. There is an id number on the form that gets filed on your state Tax form. If you didn't have coverage for the year, the penalty is reflected directly in your tax's. Very simple process for them to track.

    As far as 1099's in this industry, that is something that has been discussed in a million other threads here and most landscapers with a half way decent CPA realize the dangers in that.
     
  4. Duekster

    Duekster LawnSite Fanatic
    from DFW, TX
    Posts: 7,961

    I do not know this is completely off topic. It is something to consider when planning. Part of the problem we do not know what to plan for.

    The OP mentioned having some buddies to pitch in on some landscape jobs. I did not want to go into the whole employee vs contractor deal because as you mentioned, it has been hashed to death.

    I am just saying that Obama Care, which will remain in some form or fashion not matter who wins.

    I just say you have to have some plans in place for this too.

    Perhaps you can tell us some of what you saw happen if you did not have insurance before.

    I know right now, I would be better off paying the guys some money for their insurance rather than join a group plan. Those cost about 25% of my payroll. That is not something my prices will bear nor will they unless everyone has to adjust too.
     
  5. cutbetterthanyou

    cutbetterthanyou LawnSite Bronze Member
    Posts: 1,178

    Not to get off topic to much...... but. As he grows, if buddies here a there arent enough to keep up. Full time isn't needed yet. What about best temps? You dont have to pay WC,payroll,1099, its legit without all the BS. What are some of you guys thoughts on them?
     
  6. Duekster

    Duekster LawnSite Fanatic
    from DFW, TX
    Posts: 7,961

    I have used these Day Labor temps before. It is pricey but will help in a pinch. You are talking about these places that charge a flat rate and they cover the comp and pay roll taxes.

    You can also try job corps and work force day labor camps as well as street labor. You just need to to know the ups and downs of each.

    The best bet is to find and hire someone that will help you grow and when to use them.
     
  7. Duekster

    Duekster LawnSite Fanatic
    from DFW, TX
    Posts: 7,961

    I have used these Day Labor temps before. It is pricey but will help in a pinch. You are talking about these places that charge a flat rate and they cover the comp and pay roll taxes.

    You can also try job corps and work force day labor camps as well as street labor. You just need to to know the ups and downs of each.

    The best bet is to find and hire someone that will help you grow
     
  8. GreenI.A.

    GreenI.A. LawnSite Silver Member
    Posts: 2,132

    Like I said in my post, i use LaborReady on a fairly regular basis for when I know I only need a couple extra guys to add to the install crew for a few days or a couple months. Yes, it does cost more money, but the convenience is worth it. The guys only end up getting paid minimum wage from the staffing service, I usually offer them a cash bonus if they bust their butt, and will request the same guys each time. They know that if they are working for my i will take care of them. I have only ever had a problem with them one time, one guy that kept disappearing and was obviously high on pills or something. I called the staffing service and they picked the guy up from the site and gave me a great credit to keep me happy. Later I found the cap to a hypodermic needle in the trailer and figured out he was shooting up.
     
  9. cutbetterthanyou

    cutbetterthanyou LawnSite Bronze Member
    Posts: 1,178

    sorry i asked a question after you had sugested it i didnt see your post my phone sucks
     
  10. Cadzilla

    Cadzilla LawnSite Senior Member
    Posts: 899

    3 days mowing and a handful of small landscaping jobs and you already want to quit shoveling and be the big shot.


    Admit it. You don't want to get your hands dirty.
     

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