Tips for expanding business?

3/1/2018 at 12:34:31 AM

I started small too Jason but don't be afraid to work over the table. If you want a legitimate business then treat it like one and pay your fair share of taxes like most of us. Remember we aren't in a race to the bottom. Do good work and expect to get paid well. Most people are willing to pay for good work and those that aren't, well, you don't want to work for them anyway. When I realized I needed help more often than not then I hired someone. I had the same apprehension you do but I committed to my new hire that I would keep him on full time. This meant I had to work differently. Keep him busy first and if you aren't busy then work on the business. Always remember that ideally you want to be working on your business not in it. Know your real operating costs and always charge your employees out at least twice their wage. i.e. $30.00/hr x 2+10.00 per hour for a truck. If you offer benefits make sure you calculate that into the charge out rate as well. Remember bidding jobs is more of an art than a science but stick by your rates. If you estimate a job at 40 hours then make sure you bid your fully burdened rate at the full 40 hours. Be sure to mark up your materials to offset any finance and administration charges to manage those purchases. Make sure you are having fun and don't look back. Go for it Jason!

3/1/2018 at 12:36:14 AM

First thing you should do is realize that there is no rush to expand, and you need to put a plan in place for your business. The reason so many construction companies fail is because they are owned by tradesmen, who while they may be very good at their trade, they know nothing about how to own and manage a small business. My advice to you is be patient, put a plan in place and follow it. Educate yourself in business management, accounting/bookkeeping, project management before you take the plunge and get into something you may know nothing about and ultimately fail.

Best of luck with your business.

3/1/2018 at 7:25:47 AM

Hey,

Tom here with Trusted Trades. It's a difficult topic, my best recommendation would be to have a higher operating capital as the transition can be costly with hidden fees.

Talk to your accountant or bookeeper. Talk about the WSIB, CPP and how often payroll remittances will take place. You may have to pay those monthy.

If you do financial forecasting you would want to plan and schedule remittance periods and wsib payments.

I would ensure your ability to get higher work volumes. When I hired I was just overwhelmed and busy, really helped me out but my guy got used to 40+ hours per week. The following new year was slow which brings me to my next point.

Educate yourself on EI incase it is ever needed and don't feel wrong telling you employee to enter the program if things get slow. They pay into for this exact purpose.

I would say your rates are going to increase but make sure its reasonable.

Your goal is to not have him on site when you truely dont need him. Dont pay wages on things you dont want to do simply because you feel lazy.

Train him immediately on things you do often and make him independent in those categories (grout a shower). This allows you to handle other tasks even off site or on another site.

Just make sure the training is adequate! Most people dont learn being shown once.

Final advice would be to incorporate if your a sole proprietor. This is expensive but can help protect you,(personally), legally from anything that happens under your business or if anything were to happen to your employee.

Best of luck, it's exciting.

3/1/2018 at 10:12:39 AM

Hello Jason,

I believe we are in same boat on this one. But I have learnt very fast in how to nativate the keeping the job going. There is no guideline on hiring process however, I suggest you keep your employees as a contractor with benefits (there are tons of insurance that can accommodate contractor). These will keep the employee from leaving knowing they are covered and your jobs is realizable and you can always focus on getting your business growing. Another thing is to sign up with employment agency that can get you temporary staff on speed dial. Either way you want to go you have employee to rely on.

3/1/2018 at 1:33:18 PM

The first step is to ensure that you have enough work scheduled in advance so you can keep the new employee working. It has to be the type of work in which is still profitable to have this employee work for you. In advance of hiring anyone it is always good to layout expectations because this business is usually feast of famine. Explain your intentions during slow periods. Will you be laying this person off or paying them when there is no work. Keep the lines of communication open and honest as there are benefits to having this employee instead of contracting out. Organized correctly this could increase your profit margins. Godd Luck.