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I Want To Own My Own Flooring Company

 
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Old 03-11-2019, 12:16 AM   #1
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I Want To Own My Own Flooring Company


, but I have no idea where to begin. I have the experience, I have a crew.
What steps do I need to take to find my own work legally?
What kind of insurance?
What kind of license?
What's a bond?
I'm very clueless to all the business stuff and would really appreciate some help.

To explain my situation, right now I'm a subcontractor that works for another subcontractor that gets jobs from a floor store.
I want to find jobs for our crew outside of that floor store. They just don't get enough work, I can't live off of 11k a year.
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Old 03-11-2019, 08:20 PM   #2
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Re: I Want To Own My Own Flooring Company


matters your state requirements.
i started out with a license i could buy - " store-front , and cabinet" lis.
then took the state exam , and got a builders license .
call the licensing bureau, and ask what you nee just to install flooring.
but you have to have a business license either way.,
liability insurance ( in florida , i believe the minimum coverage is $300,000)
you might need workers comp.
i can have Workers Comp Exempt , since i`m doing my own work.
And i pay my guy as a sub-contractor
but if you have a crew , you might need full workers comp.

can`t advertise without being licensed here


again licensing board will tel you all that

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Old 03-11-2019, 08:31 PM   #3
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Re: I Want To Own My Own Flooring Company


Not advertising, just trying to get answers. I have no idea how any of this works. My mentors failed to teach me all of this stuff. So I should start off by contacting the license board? Or should I get a business license first? I am basically in the position of your guy.
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Old 03-11-2019, 08:38 PM   #4
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Re: I Want To Own My Own Flooring Company


find out what licenses you need, state, city, county etc....

find out about what insurance you need.

liability, auto & comp. this bs that you hire an employee as a sub will bite you on the ass.

you should have a substantial amount of cash to cover slow times & to carry jobs/material/payroll as needed.

you should also have some credit & a line of credit with your bank.

have reliable transportation.

be able to talk with prospective clients with confidence & a positive image.

not all people who are skilled in a trade have the ability to be in business for themselves.
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Old 03-12-2019, 04:22 PM   #5
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Re: I Want To Own My Own Flooring Company


maybe you don't agree , but its worked for a while , paying as subs

i used to have the full payroll , and workers comp years back,
workers comp was 32% of payroll
so with a payroll of $6000 . i had to put out an extra $1900 per week.
its a lot .
plus taking taxes out .


for a guy starting out , its a good way to pay them , and do a 1099 at the end of the year .
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Old 03-12-2019, 05:15 PM   #6
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Re: I Want To Own My Own Flooring Company


All of the above is great advice, the only thing I would add is do not buy your flooring from LUMBER LIQUIDATORS
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Old 03-12-2019, 07:31 PM   #7
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Re: I Want To Own My Own Flooring Company


Quote:
Originally Posted by woodspike View Post
maybe you don't agree , but its worked for a while , paying as subs

i used to have the full payroll , and workers comp years back,
workers comp was 32% of payroll
so with a payroll of $6000 . i had to put out an extra $1900 per week.
its a lot .
plus taking taxes out .


for a guy starting out , its a good way to pay them , and do a 1099 at the end of the year .
Just be sure your "subs" are an actual business entity that does work for other people and operates independently of you (i.e. - set their own hours, have own equipment, are paid by the job, etc.)... otherwise, you run the risk of being hit by the employee status under the IRS 1099 independent contractor rulesand could potentially be hit for back taxes...
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Old 03-12-2019, 07:40 PM   #8
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Re: I Want To Own My Own Flooring Company


Quote:
Originally Posted by AFloorPerson View Post
, but I have no idea where to begin. I have the experience, I have a crew.
What steps do I need to take to find my own work legally?
What kind of insurance?
What kind of license?
What's a bond?
I'm very clueless to all the business stuff and would really appreciate some help.

To explain my situation, right now I'm a subcontractor that works for another subcontractor that gets jobs from a floor store.
I want to find jobs for our crew outside of that floor store. They just don't get enough work, I can't live off of 11k a year.
Griz makes important points overall that should not be overlooked...

Being an experienced tradesman does not necessarily translate into being a business owner... you wouldn't be the first to start out without the information, but things are different today than even 10 years ago...

I'd encourage you to contact your local S.C.O.R.E. rep to give you a real understanding of what's involved in your state to start with... we can give you all sorts of suggestions generically but the requirements for your state may be different than others...

Starting up right will literally save you years of frustration... one example is it seems you don't have an idea of where to get the business that is going to support your business (and what sounds like your crew)...

If you don't have the receivables to support your business, the rest is moot... look at it this way... you mentioned you can't by on $11K/year from the store you're currently working with... how are you getting other income?
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Old 03-13-2019, 05:56 AM   #9
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Re: I Want To Own My Own Flooring Company


man ,,, Agreed ;

i am an example of a guy who`s good at what he does . i`m very good with people, i have all the work i need .
but i always seem to be chasing money , and just not very good on the business side .
i never was a project manager with a bigger established company , so everything i do is from my own learning.
i`m a smart guy , but that doesn`t mean anything .


i started out like this fellow is.
just wanting to have my own business.
jumped in. took my builders exam , and got started .

had 6-8 guys for years .
thought i was the chitt in my 30`s
made some good investments ,
put our kids through college
' then a family tragedy set us back , had to use it all. and had to go bankrupt.

i`m 60 , and now its me and 1 or 2 guys
again i get all the work i need , i seem never to have enough money.
i`m a week by week survivor. still hands on .






.
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Old 03-13-2019, 09:02 AM   #10
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Re: I Want To Own My Own Flooring Company


Quote:
Originally Posted by woodspike View Post
man ,,, Agreed ;

i am an example of a guy who`s good at what he does . i`m very good with people, i have all the work i need .
but i always seem to be chasing money , and just not very good on the business side .
i never was a project manager with a bigger established company , so everything i do is from my own learning.
i`m a smart guy , but that doesn`t mean anything .


i started out like this fellow is.
just wanting to have my own business.
jumped in. took my builders exam , and got started .

had 6-8 guys for years .
thought i was the chitt in my 30`s
made some good investments ,
put our kids through college
' then a family tragedy set us back , had to use it all. and had to go bankrupt.

i`m 60 , and now its me and 1 or 2 guys
again i get all the work i need , i seem never to have enough money.
i`m a week by week survivor.
still hands on .
.
For those of us who have been down that path, and recognize that huge red flag, have you considered the combination of you have all the work you need but never seem to have enough money is because you're not charging enough to actually be in business?

You mentioned previously you've been doing this for 35 years... no better time to cash in on your craftsmanship and I'd imagine you have a large referral base at this point...

A common refrain is I think we all eventually learn starting out is that what we do is not retail... We think "man, if I charge just a little less than the other guy (who's already charging less thinking the same) I can appeal to a much wider prospect base and make more money"... otherwise known as casting a big net because it's not clear who your target customer is (ANY person is a customer right? )

One of the hardest mental transitions is going from thinking everyone is a customer to realizing that really your target customer is the one that you can charge the appropriate amount to be in business, pay yourself a wage you determine you need AND make a profit for your company.

Think of it this way... you USED to charge enough to support a crew of 6-8 guys and STILL do all the things you listed (i.e - investments, college, etc.)... what happened?

I'd encourage you to try upping your next 10 proposals for work you do by 10% (start at 5% if you can't mentally jump to 10%)... you're more than likely going to find it doesn't affect your close ratio to any degree but what you will now have is 10% MORE Profit... This is money you didn't have before so you might want to consider using this money to start a separate Capital Reserves account (3-6 months is ideal) and then an Emergency fund once that is established... DEDICATE that increased amount going forward to this purpose and within literally a few months you'll not only have a few THOUSAND in the bank, but you will find that you can zero in more on your target customer with a little less pressure (i.e. - people who can support what you need to charge to be in business)...

For anyone starting out, an absolute imperative is KNOWING what you need to charge to actually be in business... knowing your numbers inside and out is critical...
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Old 03-13-2019, 07:22 PM   #11
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Re: I Want To Own My Own Flooring Company


Quote:
Originally Posted by woodspike View Post
maybe you don't agree , but its worked for a while , paying as subs

i used to have the full payroll , and workers comp years back,
workers comp was 32% of payroll
so with a payroll of $6000 . i had to put out an extra $1900 per week.
its a lot .
plus taking taxes out .


for a guy starting out , its a good way to pay them , and do a 1099 at the end of the year .
Also illegal and asking for fines, payment of back taxes and litigation.

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