That’s a good idea
20 hours a week during gutter season per employee and I will speak to my accountant and see what she says about profits.
If you guys are 1099 to avoid all the red tape. .be careful. One “sub contractor” contacts your states unemployment office you may get screwed. I had this happen to a friend, he was 1099 people who should have been classified as an employee, one of them filed for unemployment and won. State came after the employer for alot of $$$$ fines.
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Payroll
I’m confused, @Patriotspwashing is saying that unless you are pulling 100k for the employee you won’t make money. How are you making money off these employees? Are the laws different for what you need with part timers?
@Patriotspwashing why not hire part time at 20 hours only?
You will still make money, but not a huge profit. In order for your company to make 30k profit off an employee, that employee needs to add 100k revenue. If you are aiming to make 10K profit, then that employee needs to 30-35k in revenue. In Michigan pressure washing is seasonal, therefore by law your employees can draw unemployment during the offseason. Thus you have to notify the state your a seasonal business so they can calculate your unemployment rate to prepare for the large payments made to employees during the off-season.
If your doing all that, you wont make near the profit you think you will. All this red tape is what drives a lot of businesses into the ground.
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I’m not from michigan, but it was my understanding that if you work less than full time employers do not have to pay for unemployment.
I am sure I am most likely wrong here. I think I am going to need a better accountant. Mine seems knowledgeable but does not bring up those issues
Easy day.
30% should the return of an average employee after taxes, insurance, etc.
A good employee and the right prices will net 50% or better.
Anything below 30% return you’ve got 3 options: Retraining, change your prices, or terminate/replace.
Pareto’s Law is at play at all times and in every situation. I don’t care what it is.
20% of your employees will return 80%. The 80% of employees that’s returning 20%. Find new ones and fast.
Also, check your states laws. There’s no such thing as unemployment in Missouri for seasonal OR part time workers since they have to make a certain amount to even apply for unemployment. Retirees with Union pensions that just want to get out of the house more often care little about unemployment.
In Michigan, it sounds like you get bent over the barrel so to speak. Some state charge you unemployment in proportion to your claims, meaning if all your employees go on unemployment EVERY season, you’re paying a much higher rate. Bonkers.
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They actually just passed new legislation in Michigan to exclude mandatory unemployment benefits if the employee is guaranteed their job back when the season starts again ( starting in 2018)
Now with that, the hardest thing would be retaining good employees. I have went with the younger college kid route before, but that was a headache…show up late, hung over, dont really care. I have never went the older retiree route or even teachers off for the summer… hmm thanks for the idea.
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every state differs, and with that every claim differs.
As a teacher myself, there are plenty of willing and ready teachers who need an extra income and will work during their summer breaks. As with anything, there are lazy teachers who will not take it seriously, either.
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Yes. Had one. Always had an excuse why he couldn’t work when scheduled. Lol. He never worked a single day actually.
Teachers are a great summer market though for sure.
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@squidskc What branch/MOS were you?
I was Army active 11B/Airborne for 6 years. 08-14 Good to see another vet on here.
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Lol and that’s an example of a bad teacher.
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Navy Aviation Ordnance. 2003-2008.
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Hi, I haven’t posted on here much but I have owned a few successful business.
You have the equipment and employees, now is not the time to pull back and reduce your employee count. Assuming you have good employees now is the time to push forward, grow your business to the point where you can drive around give quotes and check on the quality of work… and take time off while your business keeps running.
Anyone who says you should bust your ass all day with one employee helping you is afraid to grow their business.
Spend some time figuring out the right advertising method, google ads, Facebook ads, etc. it’s worth it to pay someone to do it right, the return will be there of done correctly.
Expand to other services. Don’t be just a pressure washing company, be an exterior cleaning company. Have plenty of work year round. Make a huge push to commercial customers who always need other services.
My current business that offers exterior cleaning services, including pressure washing, is set to grow about 150%… for the second year in a row. So that’s my qualifications for offering this advice. Never stop pushing forward. Advertise, you have to spend money to make money. If you have gotten to the point where you have 4 employees and two trucks, you can keep pushing forward.
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Great advice! It’s time to connect to a new vision for this company, be creative, and push through these growing pains I’m going through. Thanks again!
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I’m fairly new to the biz and have been solo ever since I started. But I have been an employee for the past 13 years. All of the above info is great and I have this bookmarked for future use. I have managed 40+ employees in the past and noticed a huge increase in morale, culture and net profit when I pushed my employees to give 100%.
You must be doing something right if you have grown your business to the level that it is currently at, great job! Of course expenses are going to need attention and hard decisions are in you and your companies future. Just remember…you built this and you can continue to do so!
Give your current employees some incentives if you do not already. Measure their efficiency with every job, measure the amount of chemical being utilized and the size of the job. Throw out small bonuses if the job efficiency is over 120%, throw in another small bonus for customer satisfaction and no come backs.
Give your techs the initial estimate before going to the job and have them ask the home owner one more time for the work that the home owner did decline, ie) upsell. Give them a small percentage of the upsells they do make.
With these little bit of incentives, you will notice your employees try harder, work faster, be more professional and they get to reap what the sow! They will go the extra mile or sell that little bit of extra work that will go a long way for your financials.
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AFTER today I’m at the END OF MY ROPE
Any advice to invest more than necessary in this system is leading you astray. Growing your business is not life’s purpose.
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1000% couldn’t agree more.
Time to live my life without jeopardizing my independence is the absolute most important thing for me, but I find myself letting the game of business lead the way from time to time.
If I had to choose between a million dollar company and giving up my freedom and sanity to do it or working enough to make $60k and plenty of free time I’m taking the 2nd option without regret.
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