Is one employee worth it?

[jnoden 15]

I currently have a very cushiony FT job but started my power washing business on the side 4 years ago to supplement my income. My day job is super flexible meaning that I can come and go as i please and I can carry comp hrs from one week to the next along with a lot of time off. I will keep this job because I like the work and the benefits are great (county job) but not quite the income I wanted. I have been working about 60-70 hrs a week with both jobs and have had a helper who has been doing good work and understands the business fairly well. I by no means have acted like a fly by night company. I have ins, a nice web site, embroidered shirts and hats, business account,business phone,brochers,flyers,professional proposal forms,yard signs,trailer signs, good equipment etc etc.

I will be speaking to an accountant about growing my business. I would like to be responsible for estimates and logistics of my company and my helper would like to become a FT employee. With the marketing I have in place for next year I am fairly confident that I can provide him with FT work. I know it is going to cost me a lot (no longer a sole proprietor) however I think that I can make atleast the same amount of profit and labor a little less. Has anyone tried anything like this or does anyone have any thoughts about this who currently has employees? Im not sure if it is worth it or not. It is a bit of a scary step although not as scary as quitting my day job (which may become an option down the road if I am succesful).

[PressurePros 248]

Its absolutely worth it. Your goal should always be geared towards business owner not laborer. My mistake this year was keeping myself as a crew leader thinking I would keep one full time crew busy then myself and a part timer would fill in the gaps. What a disaster. Every one of my businesses suffered and I worked mad hours for what equated to nowhere near enough profit. Next year there will be three crews and I will NOT be on any of them. I am changing my philosophy about deck work. Speed and efficiency will be paramount. I am way too slow to be in the field.

I wish you luck with your growth. Let me know if there any pitfalls I can help you avoid..

[Celeste 341]

We have been completely unsuccessful with keeping employees for more than several months....seems the honeymoon ends and they lose interest in keeping up the initial drive that made them wonderful! Add to that the increase in WC premium (based on payroll), and all of the taxes to pay (it's worse than an additional paycheck). And don't even ask about what happens if you forget to do the stupid reports one quarter!!!!! Guess we're just going to let our company own us for a little while longer!

Celeste

[kevinw 14]

You're at a great place, you can make sure your ducks are in a row before you dive in full time. First suggestion is find yourself a good CPA. A good accountant will be a big help in determining how you want to organize your business. As an example, my accountant handles payroll (including writing paychecks for me to sign and direct deposits) and monthly/quarterly taxes...for $65.00/month. I wouldn't even mess with it for that. If he screws up and there's a penalty, he pays it.

Ken's statement is very true...think about where you can spend your time most effectively. Sales? Maybe...but if you're making sales calls, who is running the business? Making decisions about marketing? Handling customer issues? Answering the phone? Insuring quality control on jobs?

I have a recommendation regarding compensating employees. Everything that is done in my company is based on "pay for performance". Hourly employees tend to milk the job out as long as possible to get a bigger paycheck. I've set my crews up as being paid a percentage of the job. Each crew has a lead, who is responsible for completion and customer sign off, and a helper, who is...a helper...handles lines, lifting and toting. They're both paid a percentage of the job. If they get the job done quickly, they make more per hour. If they take longer, they make less. Their incentive is to get out early, get the job done, and get back to the shop.

The lead man is responsible, period. If there's a call back, they handle it at no compensation...I pay them to do the job right one time, if they have to go back it's at their own expense. If damage occurs due to negligence, they have to take care of it. The lead man is responsible for checking the equipment at the beginning of each day, and making sure inventory on the rig is kept up. If something is left behind at the job or lost, he has to replace it.

When it's time to turn in payroll for the accountant, I calculate the total of jobs done in the last pay period, multiply it by the percentage they're paid, and turn the gross amount in to the accountant and he calculates taxes, etc.

The big question...does it work? In 4 years I've had 1 lead quit and never had to terminate any of them. I terminated 1 helper for cause. Not bad turnover. Leads make between $60K - &70K/year, helpers make $25K-$35K/year. They work their butts off...but they make good money and put in less hours than their friends for the same money.

It may not work for everyone, but it's worked well for me. The key is hiring the right guy...once the word gets out, you'll be surprised how many guys and girls approach you for a job.

kevin

[Don L 14]

Ken,

May I ask what % are your lead's,and helpers getting.Your concept is intriguing.I am positing to carry this out next season,and I am curious.

[Craig 111]

It worth it! Go for it!

In 3.5 years (2 full time) I've grown our company into a very solid entity. Here's what works for us now:

1 person doing books, answering calls (in the office), paying bills, payroll and helping with personal bills and organization.

1 Crew Leader. He's responsible for keeping up the equipment and making sure the crews are doing what they're called to do. He get's work orders directly from me over the phone and basically runs the day-to-day operations out in the field. He will do work if an employee is sick and manages their time in the field.

6 laborers. Two of them are very good and can operate rigs by themselves if needed.

I do the estimates, problem customers, sales calls and keep everyone on track.

This managing technique is working for us very well. The only time things go crazy is when we get the 1 to 2 week jobs at night. We're doing one right now that takes 4 rigs running (6 employees) and will go for 14 days. My solution for this is to cut back on the employees and get a machine that can do the work of 10 rigs....ALAS, the SWABBY!

[HotShot 34]

You guys are real inspirations. I love hearing positive stories like that Craig and Kevin....thanks for sharing :)

I just hired my first "real" employee yesterday. I'm paying a % of the job as well. Being that I'm still on the truck, he will be my helper until he's pretty comfortable doing what helpers do. Then, I'm going to train him to be me, and move myself into the helper slot. When I'm comfortable with his work in that position, I will then hire him a helper and step off of the truck.

I plan on continuing this pattern until I have about 3 or 4 crews going. (gotta see what the market will bare)

[John T 744]

It worth it! Go for it!

In 3.5 years (2 full time) I've grown our company into a very solid entity. Here's what works for us now:

1 person doing books, answering calls (in the office), paying bills, payroll and helping with personal bills and organization.

1 Crew Leader. He's responsible for keeping up the equipment and making sure the crews are doing what they're called to do. He get's work orders directly from me over the phone and basically runs the day-to-day operations out in the field. He will do work if an employee is sick and manages their time in the field.

6 laborers. Two of them are very good and can operate rigs by themselves if needed.

I do the estimates, problem customers, sales calls and keep everyone on track.

This managing technique is working for us very well. The only time things go crazy is when we get the 1 to 2 week jobs at night. We're doing one right now that takes 4 rigs running (6 employees) and will go for 14 days. My solution for this is to cut back on the employees and get a machine that can do the work of 10 rigs....ALAS, the SWABBY!

Craig if your really interested in getting the swabby down the road let me know. Maybe between us two we can negotiate a better deal then if someone was to buy one. I may lease a swabby...I still need a few more months to think about this one but it seems my direction of travel is always turning towards a swabby.

John T.

[jnoden 15]

This is all good to hear. As a sole proprietor everything has been simple. No WC needed, taxes are simple and I am at every job site making sure it is done right. I am in the same boat as you Anthony, I am turning myself in to a helper and letting my guy do most of the laboring. I will probably just help stain larger deck jobs. If everything is working out I will try to hire a PT helper and next season have another rig. I am thinking that three people can operate two rigs. One person is a floater and will probably just be assisting in staining and larger jobs. Having two rigs out there FT must be sweet.

[Paul B. 523]

Everything that is done in my company is based on "pay for performance". ...If there's a call back, they handle it at no compensation...I pay them to do the job right one time, if they have to go back it's at their own expense. If damage occurs due to negligence, they have to take care of it.

A word of caution - in most states (if not all) this method is not considered legal unless it's a sub-contract. All it takes is one complaint.

Check the requirements for exempt and non-exempt employees.

[PRESSURE PACKED 14]

What Are Your Thoughts On Temp Agencies

[Washaway 64]

A word of caution - in most states (if not all) this method is not considered legal unless it's a sub-contract. All it takes is one complaint.

Check the requirements for exempt and non-exempt employees.

If you get them to sign off on the their terms of employment and payment schedules then that shall prevail over the law. After all they knew under what conditions they accepted the position.

[kevinw 14]

Everything that is done in my company is based on "pay for performance". ...If there's a call back, they handle it at no compensation...I pay them to do the job right one time, if they have to go back it's at their own expense. If damage occurs due to negligence, they have to take care of it.

A word of caution - in most states (if not all) this method is not considered legal unless it's a sub-contract. All it takes is one complaint.

Check the requirements for exempt and non-exempt employees.

That's why you need to find a good accountant.

kevinw

[Grime Dawg 14]

I am way too slow to be in the field.

I'm not a fast cleaner and I'm not a slow cleaner. That must make me a Half-Fast cleaner!

[LyonsPressureWash 14]

I used to work for a nationwide construction company that also used the pay per hour plus incentive for speedy work. Let me tell you, it works and works well. You know you only have so much time to get the job done. If you have a slacker on the crew, the other guys will get him to pick up the slack because they're losing money. And yes we did sign the proper paper work before being hired that allowed them to do so. I will only give one word of advice. Remember that no matter who you have helping you, will not work as hard as you the owner to make sure every job is done the best possible way. And if you can find one that can, pay him well and keep him like a son. Good luck and let us know how you make out.

[HotShot 34]

why couldn't we have a spec sheet (I dont remember what they are really called) but say you take your car to the shop to have a water pump replaced. They have a book that says how long that should take. If the mechanic takes longer than that, it's on him-he loses money. If he can do it quicker than the time alotted in the book then he's making money.....

just a thought....

I know how long it takes me to clean different systems. I could pretty much put that on paper and if my employee takes longer than what's on the paper...it's on him, right?

[FLORIN 21]

By paying a percentage of the job, won't it give the employee the temptation to cut corners so he can get the job done faster so he can get paid more. For instance he might put chemicals on a roof to get the mold and mildew off but it does not completely remove it after the first application and dwell time, he would just be tempted to just crank up the pressure a little bit and go to town instead of having to wait another dwell time and application time. If he causes damage it might not even be noticed until the rainy season but it will still come back to your business insurance.

[Craig 111]

John T-

I'm definately going to get one, probably in the tune of 6-8 weeks out. Tracy from Sunbrite called me and we worked out some numbers but there's always room for improvement. How far are you out from getting one?

[Littlefield 65]

Florin, there will always be an opportunity to cut corners. I work my guys by the hour until I can separate the self motivated,( has nothing to do with money at all) from the external motivated (everything to do with money, get rid of them fast, they will always find a way to cut corners) workers.

Once I am rock solid sure of their quality control, THEN they get the privilege of working on percentage.

Also, always pay a little less on percentage then you do hourly, in order to have a pot growing for things that may need fixing. As much as they may WANT to, if they damage something and it was somehow unforeseen, it will be hard for them to be able to afford to fix, that's our job as business people, not theirs as employees.

By paying a percentage of the job, won't it give the employee the temptation to cut corners so he can get the job done faster so he can get paid more. For instance he might put chemicals on a roof to get the mold and mildew off but it does not completely remove it after the first application and dwell time, he would just be tempted to just crank up the pressure a little bit and go to town instead of having to wait another dwell time and application time. If he causes damage it might not even be noticed until the rainy season but it will still come back to your business insurance.

[John T 744]

John T-

I'm definately going to get one, probably in the tune of 6-8 weeks out. Tracy from Sunbrite called me and we worked out some numbers but there's always room for improvement. How far are you out from getting one?

Craig,

I'm not that close in getting a swabby....yet. I'm trying to find work that can justify the expense for it. There's a big company here that may be looking for bids to have there parking garages powerwash and I think there going to want that water reclaimed. If the opportunity arises and they accept bids and then if I'm picked this is when I'll Have Pete/Tracy put a swabby deal together for me. If I buy the swabby now with out having any work to justify it right away I think my wife would SHOOT ME!! Especially since I just bought that F-350:)

[Washaway 64]

John, you're not talking abou thte F350 on Ebay that you posted about?

That was a sweet rig.

[Craig 111]

I'll let you know when I'm going to buy mine, we'll see where you're at. It'd be nice to get the prices down.

[John T 744]

John, you're not talking abou thte F350 on Ebay that you posted about?

That was a sweet rig.

yea that be the one...Dont matter the dodge will be sold and with that I'll pay the last year of my wife tahoo off then she'll get the rest to buy furniture...You got to grease the hands once in awhile

[Beth n Rod 1,279]

Another good read!!!

Beth