[Eddie Conroy]

After trading full time for approximately 18 months I am now having to turn some jobs away.
I have the confidence to raise my prices by 10 to 15% which may restrict the take up level but I feel that my next move is to take on help, presumably part time to start or to pursue going into a partnership.
Any advice as to the best way to proceed. I am sure some of you guys on the forum have gone through these growing pains.
Regards
Eddie

[Damian]

Eddie as far as im concerned the worst ship that ever sailed was partner-ship! if ya doing well mate then remain the boss and take on hired hands.  there are grants available for this am sure.

[the red carpet]

Hi Eddie, im in the same boat as you at the minute.

Plenty of work on, and no time to fit more in.

I like you am gonna raise prices a touch, and im also getting a truck mount to speed me up. Taking someone on will then be my next step, when i do i will have them out on the van with me helping.

The only advice i can give is, if and when you do take someone on make sure they earn there keep.
If they aint spotting, vaccing or scrubbing dont let them stand there with there hands in there pocketts, give them a nice big stack of leaflets and get them out posting

[John Kelly]

Eddie, why enter into a partnership when you have done all the hard work to get where you are. The best option in my view and one which I have used is to utilise another carpet cleaner as a sub-contractor. Split the jobs either 50-50 or 60-40. This gives you extra capacity and some extra income without the burdens of employing someone or splitting your profit with a partner.
Alternatively raise your prices more than the 10-15% you mention. I don't know what your rates are now but the market can sustain quite high rates if you do it correctly and market to the right client base. This way you would be earning more money and maybe doing less work.

[Abi]

Hi John

How would the sub-contracting work in practice?  Is there a percentage of the earnings paid to the sub-contractor?

Grateful for your response?

Thanks.

Abi

[carpetclean]

i know of one very successful company who for yrs have  employed several teams on self employed basis . he gets the work and gives it to the teams who use their own vans buy their chemicals from  him and get 40 % of the job last time i checked he had 7 vans working for him

[Abi]

Thanks.  Does the sub-contractors also  buy their own equipment?

Abi

[craigp]

Abi, a sub-contractor will be a carpet cleaner the same as you, so they will have there own business, van, equipment, etc.

you simply send them to job, they invoice you, say £150 you invoice the client say £200. your cut £50.

i agree with John thats by far the easiest route, if upping prices is not best idea.

trouble with employing someone is youll need at least two big jobs a week just to pay them plus tax, then you need profit from there input too, as why else employ them. problaly be better get them a van send them out but you have to have stacks of work coming in for that. oh probaly worth taking note of Shauns findings on that subject, on money matters topic.

[carpetclean]

abi as far as i am aware the man in question does not employ the people as such and each have their own vans and kit . he keeps them very busy with work and i know he earns quite a lot from each person

[Abi]

Thanks for responding to my questions.

Abi

[Steve Chapman]

I have done similar with sub contracting work out, but have been advised recently that inland revenue are clamping down on it , esp if the sub contractors do work soley for you

They say they really should be employed

probably worth investigating

anyone know any different
regards
steve

[John Kelly]

Steve, you're right in the fact if they are working exclusively for you the tax people will class them as an employee. Thats why you need to provide someone with only a proportion of their work, then there is no problem.

[Smiths Cleaning]

looked into this myself recently the inland revenue were very helpful, its broken into stages can't remember exact figures but its around £98 a week once you cross that figure you are responsible for all N.I. payments sick benefit holidays etc but like i said I.R.S. very helpfull and gave me a phone number of a workshop were you get free training, advice in employee employer matters all goverment funded told me about grants to apply for and many other things well worth the call

[The Great One]

Hi

As of next year 2007, if you sub contract out, 1st need to phone the Inland revenue, give them the details of the person you are giving the work to, also their tax reference code. If they are eligable for tax, the inland will tell you if you can use them, if not then you have to pay thier tax for them. If there are any problems it is your fault!

It was meant to come in this year but the tax office weren't ready...

Regards

Martin