When To Hire Employees

 
Thread Tools Search this Thread Display Modes
Old 10-14-2017, 04:57 PM   #1
Registered User
 
droshmo's Avatar
 
Trade: remodel
Join Date: Oct 2017
Location: DC
Posts: 5
Rewards Points: 10

When To Hire Employees


Hello guys,

I am would like to start my own company.

Whats the right structure for a home remodeling.
I notice I am great at acquiring leads, and getting estimates and landing jobs.
However I need employees to work on the jobs while i get more work to keep them busy.

What structure should I instill in my company?

how much should I be paying a project manager,
Foreman, Labor, carpenter. I am in the VA,MD, MD area.
droshmo is offline  
The Following User Says Thank You to droshmo For This Useful Post:
ApparatusTeam (10-27-2017)

Warning: The topics covered on this site include activities in which there exists the potential for serious injury or death. ContractorTalk.com DOES NOT guarantee the accuracy or completeness of any information contained on this site. Always use proper safety precaution and reference reliable outside sources before attempting any construction or remodeling task!

   

Advertisement

 

Old 10-14-2017, 10:37 PM   #2
Pro
 
WBailey1041's Avatar
 
Trade: Gutters
Join Date: Jan 2014
Location: Chicago, IL
Posts: 632
Rewards Points: 1,333

Re: When To Hire Employees


Quote:
Originally Posted by droshmo View Post
Hello guys,

I am would like to start my own company.

Whats the right structure for a home remodeling.
I notice I am great at acquiring leads, and getting estimates and landing jobs.
However I need employees to work on the jobs while i get more work to keep them busy.

What structure should I instill in my company?

how much should I be paying a project manager,
Foreman, Labor, carpenter. I am in the VA,MD, MD area.
Don't bother with all the legal stuff just starting out, you don't even need insurance. Just find a couple of good guys around the Home Depot parking lot or Craigslist, pay em 350 a day.

Advertisement

WBailey1041 is online now  
Old 10-14-2017, 10:44 PM   #3
Pro
 
Windycity's Avatar
 
Trade: Masonry
Join Date: Oct 2015
Location: chicago
Posts: 1,076
Rewards Points: 4,590

Re: When To Hire Employees


Quote:
Originally Posted by WBailey1041 View Post
Don't bother with all the legal stuff just starting out, you don't even need insurance. Just find a couple of good guys around the Home Depot parking lot or Craigslist, pay em 350 a day.


Hot Damm at 350 a day you will probably see me standing in the Home Depot parking lot. At that rate I'll even have my tools with me

LoL


Sent from my iPhone using Tapatalk
Windycity is online now  
The Following User Says Thank You to Windycity For This Useful Post:
prowork (10-15-2017)
   
 
Old 10-15-2017, 11:37 PM   #4
New Guy
 
daffysplumbing's Avatar
 
Trade: plumber
Join Date: Oct 2017
Posts: 29
Rewards Points: 108

Re: When To Hire Employees


Quote:
Originally Posted by droshmo View Post
Hello guys,

I am would like to start my own company.

Whats the right structure for a home remodeling.
I notice I am great at acquiring leads, and getting estimates and landing jobs.
However I need employees to work on the jobs while i get more work to keep them busy.

What structure should I instill in my company?

how much should I be paying a project manager,
Foreman, Labor, carpenter. I am in the VA,MD, MD area.
Just curious! Do you have a license?
daffysplumbing is offline  
Old 10-16-2017, 07:34 AM   #5
Pro
 
SectorSecurity's Avatar
 
Trade: Low Voltage Wiring
Join Date: Nov 2013
Location: Ontario
Posts: 3,978
Rewards Points: 2,686

Re: When To Hire Employees


Why not start with an introduction and let us know what you have accomplished and perhaps where you are so we can better help.

Sent from my XP7700 using Tapatalk
SectorSecurity is offline  
Old 10-23-2017, 09:51 AM   #6
Registered User
 
droshmo's Avatar
 
Trade: remodel
Join Date: Oct 2017
Location: DC
Posts: 5
Rewards Points: 10

Re: When To Hire Employees


I notice introductions are big here, which is understandable.

So my name is Lexington, I help a small business.

We have several guys doing commercial work but I also have 2 guys doing residential remodels <<<<<that is where I want to see the growth.
I have done a few kitchen and bath remodels and one basement.

Pain is that I had to sub out some of the work and I feel like they care more about their on going projects over mine. I figure that with employees and building a good company culture they can care more about their work.
droshmo is offline  
Old 10-23-2017, 11:32 AM   #7
Pro
 
cwatbay's Avatar
 
Trade: Electrical Contractor
Join Date: Mar 2010
Location: San Carlos, California
Posts: 1,100
Rewards Points: 1,674

Re: When To Hire Employees


I would have at least 3 months salary in the bank for each employee before you start hiring them. .Otherwise, stick with subs until you can afford full timers, or, even part timers.

Subs and part timers have their interests first, not yours.

I have been doing this for about 20 years. Right now, I have 2 full time employees, before that it was one. Before all that, it was subs and other guys like me, where we worked together on projects.

I would like to hire more guys, but the work load has to justify the expense of employees. I don't want to be laying guys on and off, or, having people milling around with nothing to do. I am currently changing the structure and marketing of my companies to accommodate growth and diversification of what we do so that I can concentrate on the back room management, and, not be involved in the actual hands on part.

Based on the original post, it looks like you have a long way to go before considering having employees. Unless you got a boat load of money in the bank (like maybe $200k to start), I would evolve your company slowly.
cwatbay is offline  
The Following User Says Thank You to cwatbay For This Useful Post:
droshmo (10-23-2017)
Old 10-23-2017, 01:47 PM   #8
Registered User
 
droshmo's Avatar
 
Trade: remodel
Join Date: Oct 2017
Location: DC
Posts: 5
Rewards Points: 10
Thumbs up

Re: When To Hire Employees


We do not have a boat load of cash, however we are growing slow but want the additional help to grow at a more steady pace. So I may focus more on marketing, lead generation and sales. In the end you make perfect sense. Thank you I will take that information and run with it.
droshmo is offline  
Old 10-24-2017, 07:59 PM   #9
Pro
 
TxElectrician's Avatar
 
Trade: Electrical
Join Date: May 2008
Location: Central Texas
Posts: 5,559
Rewards Points: 80

Re: When To Hire Employees


Quote:
Originally Posted by cwatbay View Post
I would have at least 3 months salary in the bank for each employee before you start hiring them. .Otherwise, stick with subs until you can afford full timers, or, even part timers.

Subs and part timers have their interests first, not yours.

I have been doing this for about 20 years. Right now, I have 2 full time employees, before that it was one. Before all that, it was subs and other guys like me, where we worked together on projects.

I would like to hire more guys, but the work load has to justify the expense of employees. I don't want to be laying guys on and off, or, having people milling around with nothing to do. I am currently changing the structure and marketing of my companies to accommodate growth and diversification of what we do so that I can concentrate on the back room management, and, not be involved in the actual hands on part.

Based on the original post, it looks like you have a long way to go before considering having employees. Unless you got a boat load of money in the bank (like maybe $200k to start), I would evolve your company slowly.
I doubt many of us in here had 200k in the bank before we hired employees.

To me the hurdle to clear when makung a hire is to be certain I can keep them busy
TxElectrician is offline  
Old 10-24-2017, 08:16 PM   #10
Pro
 
cwatbay's Avatar
 
Trade: Electrical Contractor
Join Date: Mar 2010
Location: San Carlos, California
Posts: 1,100
Rewards Points: 1,674

Re: When To Hire Employees


Quote:
Originally Posted by TxElectrician View Post
I doubt many of us in here had 200k in the bank before we hired employees.

To me the hurdle to clear when making a hire is to be certain I can keep them busy
Well, the OP listed the following people for his crew: project manager,
Foreman, Labor, carpenter.

Project Manager: $40 p/h = $83, 000 per year + 20% for taxes, comp, etc. = $99, 600

Foreman: $30 p/h = $62, 400 + %20 = $75, 000

Carpenter: $25.00 p/h = $52, 000 + %20 = $62, 400

Misc Labor: +/- $60, 000 year

Total yearly wages + employment expenses (not include wages or draw for the owner): $ 297, 000.

To keep it simple I did not include: overhead expenses(rent, vehicles, insurance, licensing, legal fees, owner salary, etc)

He made it sound like wanted a fully functioning company with employees and management right off the bat.

Last edited by cwatbay; 10-24-2017 at 08:18 PM. Reason: added more info
cwatbay is offline  
Old 10-24-2017, 10:28 PM   #11
Pro
 
Windycity's Avatar
 
Trade: Masonry
Join Date: Oct 2015
Location: chicago
Posts: 1,076
Rewards Points: 4,590

Re: When To Hire Employees


Quote:
Originally Posted by TxElectrician View Post
I doubt many of us in here had 200k in the bank before we hired employees.

To me the hurdle to clear when makung a hire is to be certain I can keep them busy


Yea 200k is a dream for most contractors

Another option is to find some guys that want to work part time as well. I have 2 tuckpointers that really donít mind taking days off. Oneís wife is a nurse practitioner who works a ton of OT and makes coin so he loves his days off and the others wife is a manager at target and she does well. So they prefer part time however if I need them they will work full-time

There is a lot of guys out there that need days off due to child care, schooling etc and it is nice to find guys like that.

Another option is to find guys that want to work on Saturdays this way you can get your feet wet at hiring and having employees without actually hiring them. There usually is plenty of people available to work for extra on saturdays

Sent from my iPhone using Tapatalk

Advertisement


Last edited by Windycity; 10-24-2017 at 10:32 PM.
Windycity is online now  


Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes Rate This Thread
Rate This Thread:

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
How much do you "make" off your employees Windycity Business 25 11-12-2015 10:43 PM
Can anyone provide good sources on how to hire employees mike123456 General Discussion 10 11-07-2014 09:53 AM
How do you cover travel time for employees? RadRemod Business 31 03-18-2011 12:47 PM
Employees and employers national stats Mike Finley Business 4 08-26-2008 07:22 PM

Join Now... It's Fast and FREE!

I am a professional contractor
I am a DIY Homeowner
Drywall Talk is for
PROFESSIONAL CONTRACTORS ONLY!

At DrywallTalk.com we cater exlusivly to professional contractors who make their living as a contractor. Knowing that many homeowners and DIYers are looking for a community to call home, we've created www.DIYChatroom.com DIY Chatroom is full of helpful advices and perfect for DIY homeowners.

Redirecing in 10 seconds
No Thanks
terms of service

Already Have an Account?