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Hi all I am now at a crossroads in my business in that I'm getting too many calls to do all the work, yet I'm concerned about employing someone. Any tips on how to move forward would be greatly apprciated many thanks Richard

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  • PRO
    Or do I just put prices up to deter some people and even lose some to free up,some time and then build again with new customers on higher rates. Thus making more from less?
  • Why are you getting too many enquiries Richard? Hopefully, it's because you are good at what you do and not because you are under-priced. I will assume it is the former and that you work on your own.  If so, I would definitely consider taking someone on. It really depends what you want out of life I suppose.  Our very first accountant advised us that if you try and 'flat-line', eventually, the only way will be down.  

    Working on your own limits the size of job you can take on and your earning potential.  Expansion should eventually give you a better work/life balance, higher earnings - but a few more headaches!!

  • Richard, my suggestion would be to "go premium" - it's a bit difficult to tell somebody I don't know to visit the bog, could be completely misunderstood, even more so if I shout it in capitals - and get some ideas about whether you are pricing sufficiently high enough if you don't already know.

    Alternatively, there have been discussions on the topic in open forum so you could hit the search button (that small icon of a magnifying glass at the top right corner of the screen) and try a few search terms.

    It sounds as though you need to employ somebody but if you are not charging enough for your services you are likely to hit cash flow difficulties immediately should you do so. It may be that you only need to raise your fee levels for now.

    If it is a matter of prices/fees you are looking into it at exactly the right time with the first day of a new year just three and a half weeks away. But you will need to tell your clients how much they will have to pay in good time.

  • Every time I employ someone to grow I sit and think carefully about it and wonder if its the right thing to do. I took my 4th guy on this year. we were at the stage of picking and choosing our jobs and still being overwhelmed with work. We sat and looked at the situation and it was akin to having a shop with people queuing out of the door and not being served. It was money being turned away. Every time I have done it, it has worked. The decision is the principal of taking a person on, and don't be disappointed if the person you take on doesn't work, you may need to go through a few to find the right one. Weve gone through 6 new starters this year, and got 2 out of it that I really want. The first one you take on is always the big step. Youre no longer on your own. If you can get the right person (and that is not always easy) then its a revelation. The first guy I took on was 16 and has been with me for 9 years. He is my supervisor now, so I was very lucky. Taking someone on makes you massively more productive and efficient and gives you a chance to produce more and make more money. It doesn't happen overnight and it is definitely a learning curve and has a settling in period. I found wee could fit more work in on a larger job, and had the ability to do the extra little jobs on the way home, like fit a gate or repair a fence panel. Do a few of those a week and it makes a hell of a difference.

    Plan for things to go wrong and have contingencies. I have 4 guys working for me now. It amazes me the amount of work we can get through and what we are now capable of, however I have the Sunday night/Monday morning scenario at the back of my mind every day of what if someone is sick/injured, how do we cope. You need to be aware of things like employers liability insurance payroll etc for them. None of it is difficult, but you have to take your responsibilities seriously. Look after them and treat them properly and it gets paid back. I am at the stage where we turn up to a new job, I outline what we are doing and I can stand back and let them get on with it and be a boss as well as do the work I want to.

    Never forget you are the boss, and always keep that in perspective to yourself and to them. Be flexible but don't be soft. Bottom line is, if it doesn't work or someone isn't working out, don't be afraid to change it. It was never my intention when I started out to grow like this, but its evolved and things change. It is hard work sometimes, as it gives you more balls to juggle, but it settles down and you get used to it. It definitely allows you to make a lot more money, but you have to be aware that you've got to get more work in to keep them going.

    Any decision in business to change up is a hurdle, like buying a new van etc. I always put it into the perspective of a moving house with a bigger mortgage. AT first you think, god how we will pay that. 6 months down the line you become used to it and don't even think about it.

  • PRO
    Hi everyone thanks for all replys.<br />
    Firstly I think I'm probably not charging some people enough.(original customers I find it hard to put them up too much feel like I owe them something ) new customers and the newer ones are reaching the local limit I think. I say that as I have have lost a few quotes due to higher prices I think so I think I am charging about as much as the market will stand. I would like to think that I am very busy because I'm good. I always strive to do my best on every job.<br />
    I am looking at everything in the business now as I'm nearly done for this year(well 2 more weeks and then some leftovers for a couple of weeks in January.<br />
    I am running quite behind this year as it's been so mild.<br />
    I find having to turn away new higher paying customers really annoying but don't feel I can let down the originals. Maybe I just need to get a thicker skin and drop them!<br />
    As for paying staff I think the mortgage analogy is a good one as last time we moved I thought how will I manage that every month but after a few months you stop noticing.<br />
    Also how do I charge for the extra help. Same rate as myself or lower?
    The reason I say this is I feel I need to make a decent margin on an employee or why bother with the hassle?
    Thanks again for all comments
  • PRO
    Wow so much to think about from your replies.
    Right now I'm thinking a combination of all these things. Prices going up. Get more capital and then maybe take the plunge!
    Needs a lot of thought!
  • This reply was deleted.
    • hardest thing is to find the right staff i now got 2 working for me will be adding a

      second van in the spring 

    • just remember good staff are worth keeping and will earn you money. bad staff are expendable and don't hesitate in losing them. they will cost you money, business and any hair that is not grey yet. DO your best to stick with good staff through bad times. Ours get paid every week come hell or high water before anything else.

      It doesn't take a massive amount of capital to employ someone as they should be earning you money, but start to put money aside to cover wages for a rainy day.

      with regards charging it depends what you are paying them and what they are doing. you should be making a profit on using them after all the overheads are covered, including holidays, bank holidays etc etc. 2 men will do the job quicker, sometimes more than double the speed of one man. Some jobs can onnly stand a certain rate, others cant, but if it can be done quicker then you can make it up on the other job you fit in.

  • PRO
    Thanks everyone yet more to think about.
    Will come back when I've had some time to digest!
  • Would an apprentice not be an option, I see lots of firms always going straight to qualified guys over noobs so to speak. I only ask as paying an apprentice minimum wage is nearly twice what they are expected to be paid, you can teach away in the style that suits you and if you've got the right guy/girl you could have a top future employee with quals.

This reply was deleted.

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