Expand The Biz Or Not?

 
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Old 10-04-2007, 11:22 PM   #1
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Question

Expand The Biz Or Not?


My husband and I have owned our small plumbing business for a little over a year and we have had a laborer for the last 3 months. He doesnt know very much about plumbing and is really just now starting to be useful to us as far as plumbing is concerned and even then he is just a laborer so he really isn't supposed to be doing much actual plumbing until he starts an apprenticeship.

However, he is really knowledgeable and handy as far as general remodeling goes and we have seen several bathrooms where he has done all the framing, drywall, tile, flooring and painting and we were very impressed with his work. He is great with customers and he could definitely handle being in charge of a modest remodel from start to finish. Ultimately this is what he really wants to do.

He has told us that he wants to stay with our company and help grow the business and he is really the type that could be "a lifer".

We want to keep him and have him reach his full potential so we are planning to take on some small bathroom remodels and put him in charge as the job supervisor. We would hire a laborer to work with him. My husband would still do all the plumbing jobs we would normally do and we would hire a new laborer to help him.

Are there any other plumbing subs out there who have expanded business this way? If so, any advice? In your experience are bathroom remodels as profitable as just plumbing?

We are technically "specialty contractors" in Oregon which states: "These contractors specialize in two or fewer unrelated building trades for any size contract."

What technically qualifies as a "building trade"? Would tile, flooring, paint etc. all be considered different building trades when it comes to contractor status, or just the trades that require a separate trade license like plumbing/electrical? I tried to find this info on the CCB website but It didn't go into it.

My best guess is that we will need to up our bond and change to general contractor status but it would sure be nice not to. Anyone know?

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Last edited by SevenKitty; 10-05-2007 at 01:01 AM.
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Old 10-05-2007, 03:24 PM   #2
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Re: Expand The Biz Or Not?


i own and operate a small plumbing & heating business in the midwest, am also a woman. first of all unless your state is not as strict, you are running a risk of having a plumbers asst, that is not a licensed appren. a lot of questions regarding the amount you can charge for carpentry work vs. plumbing. what is the going rate in your area? what do you have to pay the helper? is he going to want more money when he supervises bath work? a lot of things to consider. dee
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Old 10-05-2007, 08:45 PM   #3
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Re: Expand The Biz Or Not?


I dont know squat about your area or market but it sounds like a terrific oportunity. If there is enough market share for you to grab a part of I would persue it, with caution, but persue it.
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