Starting A Sister Company - Business - Contractor Talk

Starting A Sister Company

 
Thread Tools Search this Thread Display Modes
Old 10-04-2014, 02:52 PM   #1
Registered User
 
CDH's Avatar
 
Trade: Custom Builder
Join Date: Oct 2014
Posts: 2
Rewards Points: 4

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....

Thoughts?
CDH is offline  

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 10-05-2014, 08:01 AM   #2
Pro
 
huggytree's Avatar
 
Trade: plumber
Join Date: Nov 2013
Location: wisconsin
Posts: 819
Rewards Points: 1,418

Re: Starting A Sister Company


id pay salary...i wouldnt consider a partner

Advertisement

huggytree is offline  
Old 10-05-2014, 11:56 AM   #3
Pro
 
flashheatingand's Avatar
 
Trade: H.v.a.c.
Join Date: May 2008
Location: Boise, Id
Posts: 3,912
Rewards Points: 3,516

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.
__________________
http://www.37flash.com/
flashheatingand is offline  
Sponsored Links
Advertisement
 
Old 10-08-2014, 06:06 PM   #4
Registered User
 
CDH's Avatar
 
Trade: Custom Builder
Join Date: Oct 2014
Posts: 2
Rewards Points: 4

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.
CDH is offline  


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
Starting a New Business, going to try postcard marketing. Any tips? Garage Doctor Marketing & Sales 95 02-19-2013 11:21 PM
Jet Table Saw not starting without assistance Texas Wax Tools & Equipment 0 11-15-2012 07:37 PM
just starting a property preservation company Cornerstone P S New Member Introductions 24 09-03-2012 04:42 PM
Thinking of starting a drain tile company... contractor123 Business 0 09-05-2009 12:22 PM
starting a gc/trim company woodworkbykirk Business 4 10-05-2008 09:20 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?