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Starting A Sister Company

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Old 10-04-2014, 02:52 PM   #1
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Starting A Sister Company

Good day. Not my first time here, but my Logon info didn't work, so I had to reregister..... I know there's probably no wrong answer, but just looking for what other are doing:

I'm a GC who started out doing only new custom homes several years ago, but as many others have, branched out into larger remodeling jobs, using the same GC approach. Not counting my chickens yet, but as the home building business has the potential to grow again, I'm looking to bring someone on to help with the remodeling side of the business. (I don't want to leave it, as I don't want to take for granted that home building alone will feed the beast, plus it's good revenue, and provides good references, etc.) So, basic question is how do you compensate the new guy? Just pay him a salary to run the business or somehow "split" the revenue from jobs? I'd still handle vendor relations, many customer interactions, billing, insurance, etc, and certainly, everything would be under my company name.

In a perfect world, I'd even find someone who already has a remodeling business to join up with. I know what's in it for me: farm out the smaller jobs while I concentrate on larger home builds (just being honest) but I want to make it something that's appealing to him....

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Old 10-05-2014, 08:01 AM   #2
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Re: Starting A Sister Company

id pay salary...i wouldnt consider a partner


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Old 10-05-2014, 11:56 AM   #3
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Re: Starting A Sister Company

How is a guy going to grow without partners ? One guy can only do so much, and it seems as though (s)he wants to grow. It can't be done alone. Unless you have the margins to pay for said person (higher prices to the customer), some form of a partnership is necessary.

Finding the right person is the issue.
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Old 10-08-2014, 06:06 PM   #4
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Re: Starting A Sister Company

Thanks. I guess I see where you're coming from based on my comments, but I guess I didn't intend to make this person a "partner." (Although not a terrible idea, especially if its just on the remodeling side....) But I guess I was intending to compare a "salary" vs a "commission" sort of thing. A flat fee for coming to work each day, some easy, some hard; vs a "percentage" of the job, some small, some big....... Any new thoughts based on that clarification? Thanks again.
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