perplexed on the next move

E

Envious Eric

New member
Would like to hear input from those who have been there and done that in this thread please


 


Option 1 -


hire a guy, train him, buy supplies, expense (payroll, EDD, ins, etc), repeat the hiring and training as business rises


 


Option 2 -


sub everything out to another company and take a cut


 


Option 3 -


Get a shop location with an establish industry company and share the space and cross promote


 


 


With option 1 I see it as a longer term investment with more overhead and expense, where option 2 has next to no expenses but lower returns long run


Option 1- I control quality and what processes and products are used/applied, option two I dont


Option 1 hiring and training is a pain, but option 2 company has a different idea of a "detail"


Option 2 I can get to more cars theoretically where option 1 only can do 2-3 details a day


option 2 has a higher risk of another company doing the job and stealing future business from that client by offering for less money if they call them direct


option 3 obviously has higher mandated expenses monthly and needs to turn over a lot of business in order to break even (the way I am crunching numbers, thats just 100 a day + supplies with one employee)


option 3 - less driving to and from jobs (dead time - roughly 40-60 hours a month right now)


 


 


Thoughts on these perdicaments?
 
I'd do a combo of Option #1 & #3. I would never consider sub-ing out this type of work knowing my name is attached to it. 
 
I went with option #3 in October and haven't looked back. I found a quality auto body place to share space with, and the referrals between us are very nice. While I miss being mobile at times, remembering the drive time totals at the end of the weeks sobers me up.


 


Good luck with whichever decision you make!
 
uhg...its so hard for me to get out of the "I need to do all the work" mindset


 


one employee at one $150 job a day pays for the rent, expenses, utilities, payroll, employee pay, etc...


 


and I'd have a shop to work out of in a sense


 


This should be a no brainer if I can just take the plunge!
 
It is a fiscal question.


One job at 300, if it takes 6 hours is 50 an hour.

If you have an employer, you can assume 3 hours.

If you pay the employee 15 an hour, then your cut

for 3 hours 255, over 85 an hour.


Does the extra cash flow account for the training and oversight needed along with insurance and taxes?


But our work is our name. Passion is tough to get

from just an employee.


I found my earnings increase as I gained employees.

It was easier for me to have 3 workers, because I could go into more management and oversight. If it was just me and a worker, I wouldn't stop as much because it affects the amount of work being done significantly.
 
Its not always that cut and dry...hiring help is based on the premise I NEED the help in order to keep up with demand.  I'm not hiring someone just so I can make less money per day but have more time off.  An hourly rate means nothing when its not factored in a 8 hr per day, 5 day a week, 2000 hour year.  Sure you can make 200 per hour on a single job in 4 hours because the job paid 1000 and you had two guys helping you the whole time, but in the end, you only made 800 for the week, just 20/hr. 
 
I would like to ask another question:


 


From a business standpoint, should I have my website have two service menus - paint correction options / traditional detail options, or have two separate websites - http://www.enviousdetailing.com / http://www.enviousexpressdetailing.com  If you look at both, you can see enviousdetailing is higher end services NOT geared towards volume work cleaning minivans and doing full interiors.  EnviousEXPRESS is setup to provide the services that ENVIOUS DETAILING doesnt focus on and at a lower price point since the work is not as involved - i.e. AIO instead of a polish then sealant, NO paint correction, no coating offerings - the plan is to offer these, but have an employee performing the work
 
toyotaguy said:
Its not always that cut and dry...hiring help is based on the premise I NEED the help in order to keep up with demand.  I'm not hiring someone just so I can make less money per day but have more time off.  An hourly rate means nothing when its not factored in a 8 hr per day, 5 day a week, 2000 hour year.  Sure you can make 200 per hour on a single job in 4 hours because the job paid 1000 and you had two guys helping you the whole time, but in the end, you only made 800 for the week, just 20/hr. 
Click to expand...


 


Eric, by nature, that is just about how it must start. You should be able to start shifting your energy towards growth if you ever want to stop doing all of the manual labor. As someone who has been there and done that I can tell you that only you will make your business grow. If your time and energy are tied up in the manual labor, it will stifle growth.


 


By going ahead and bringing someone in, you can begin the process of getting someone trained and then you start managing projects more. Some things you will need to, and should, take the lead on. But the training must begin first. We spoke about some of the things you can do to keep your technician busy while you ramp up. When you are no longer cleaning every set of wheels, filling all buckets with water/shampoo then dumping and cleaning them out, cleaning PC pads, reeling up hoses and cords, drying every car, waxing and/or removing the residue, ect....ect... you can start working towards keeping a second guy busy. If you're turning away $175 jobs, that right there may be enough to merit starting with a full timer.


 


Just remember, once your time is gone you will never get it back. What is your time really worth? If you wait for this move for another few years, those are years that will forever be gone. Whatever you do, think big picture. Don't lose sight for the forest for the trees.
 
I think its more of taking that next step! 


 


I appreciate the input.


 


making less now to make more later and GROW the business seems to be where I am hung up currently.
 
Why are you hung up on making less.

Employees will help you make more per hour.

Yes, if you have ten jobs a week solo,

and ten a week with a worker you will lose money but gain time.


But a worker should allow you to finish more jobs in the same time, earning much more money.


If you look at the earnings from a single job yes it would be less.
 
right, thats what I havent been able to wrap my head around until recently.


 


becoming the boss, not the worker! 


 


Although, I love working on cars at the same time!
 
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