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Discussion Starter #1
hello, i am new to this forum, but i am glad that i did. I am 24 years old and just recently got licensed as a c-33 painting contractor in Northern california. I need help knowing how much to charge for my hourly rate. I also wanted to know how much does workman's comp cost. I am a bit confused also because it seems like you need more than just your contractor's license to work. there are insurances and buisness licenses that you need. However i first need to get some work before i can purchase all these extra insuranses and buisness licenses. How many of you actually got all your insurances and buisness licenses before actually getting steady work?

Right now, i have my contractors license and $10,000 required bond, is this okay for now while i am just getting started?
 

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You're telling us that you didn't know what you were in for?
Congrats on getting the license. From your post, you didn't look far enough ahead. You will need insurance, liceneses before you get started. Unless you are working solo, you need to look into workers comp too.
Getting started in today's world is much like starting GM or Ford, tons of paperwork and expenses.
Wish you luck.
 

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Discussion Starter #3
Of course i knew what i was getting myself into teetorbuilt, if not i wouldn't have gone through a year of application processing and certification of work experience. I know that it isn't easy to start a buisness, especially from the ground up, but i am willing to give it my best shot. what seems to puzzle me is the way that the state of California works. It only requires a bond of 10,000 dollars for your license to be valid, but my question is; are the other insurances like genreal liability required as well? i hear contractors talk about it, but when i was studying for my license nothing was said that it was required.

My other question pertains to workman's compensation: I know that when i get employees i will need it, but what people can't seem to tell me is how much will i be paying? they say that it will be a percent of my employees payroll of something like that, well i am just starting off and i am only planning on having one or two employees but not full time yet, since i still dont have steady work. So say for example my helper and i have steady work coming in for a month, and then it slows down and we don't work for month, does that mean that i don't pay workman's comp for that month? since it is based on how much my employee is making.

I hope you can understand my questions now, and will hopefully have answers to them.


Aaron Saucedo
 

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the insurance company is going to ask you to guess how much your going to pay your employee for the year. The quote will reflect that number. If he/she makes more than you will have to pay more at the end of the policy term when they audit your records. If he/she makes less than thats tuff stuff and they will keep all the money and just consider it your bad for overshooting your guess at how much money your guy would make. :Thumbs:
 

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Discussion Starter #5
thank you for your information. So i guess the rule of thumb is to guess a lower yearly income for your employee and if they make more then you just pay more. Its better than them just pocketing you money if your employee actually makes less than what you guessed right?
 

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I haven't read any of the E myth books but they seem so highly recommmended that I'm ordering from Amoazon after I get a bit of feedback. There seems to be a slew of them. Do they basically have the same information or what? Has anyone read the E myth for contractors one?

How have these books changed your way of doing business?
 

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Dale said:
I haven't read any of the E myth books but they seem so highly recommmended that I'm ordering from Amoazon after I get a bit of feedback. There seems to be a slew of them. Do they basically have the same information or what? Has anyone read the E myth for contractors one?

How have these books changed your way of doing business?
Dale, in my opinion, the E-myth revisited is the best of them.
As far as the rest, I think they are just spin-offs with a few case
studies thrown in. E-Myth Worldwide is into information selling.
A few years ago I registered for one of their "mastery programs",
an over the phone kind of course. I attended two of them, I didn't think
they were doing anything more than re-hatching the book. I skipped the
last few classes because I was too busy to attend. I was amused to
receive an e-mail congratulating me on the successful completion
of the course! I guess they had no idea I was not attending. So much
for personal service and much related to the discussion about
franchises in another thread here. If you are a Painting Contractor,
NAPP has the In Gear business training which is very much Painting
contractor specific. Having contributed to its creation I can tell you
there is nothing like it. Not even franchises have such resource
to their disposal. Like systems building on steroids!
 

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I read the E-myth Revisited, and the E-Myth Contractor. Both close to the same, only the contractor one has as said above case studies more pertinent to the trades. It is mainly a reality check for anyone wanting to start a business. Its also something good to go back and skim over for a 'battery recharge' when stuff gets hectic and so forth. Good books, only a couple bucks at amazon.
 

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Discussion Starter #12
Thank you guys for your responses they sure have helped. Now i have been doing my homework as to how much to have my hourly rate at, and after estimating taxes(i estimated 20% of my income), and insuranse costs(General liability) as well as buisness licenses, and how much i plan to work(11 months out of the year), i have come up with an hourly rate of $45 per hour, is this around the ballpark that some of you guys are charging?

I must add that i am going to be working in the northern california area(San Francisco bay area to be more specific)
 

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Aaron, I think your workers comp question has been answered as far as liability I would not do a job without it. Mine is only around $600 a year for $300,000 in coverage and it is a good feeling knowing that a small accident isn't going to take all my profit.

I do wonder why you are looking to hire help if you do not have steady work. Why not work alone and stay working steady until your business can support a second painter? You will have a hard time attracting and keeping good help if you can not offer them some job security.

Best of luck with your new adventure. Ask questions.

Jim Bunton, Bunton Painting
 

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Discussion Starter #17
your advice is so true painter, in fact that is what i have been doing, just working alone, i guess i was looking too far ahead into the future.

As for the general liability insurance, that is not a bad price, for some reason i was thinking it would cost more. 600 dollars or around that price is something that i can afford right now, i am going to look into it. thanks,

One question, do you live in california? Do insurance prices vary depending on what state you live in?
 
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