[adman]

Hi all,

I have been asked to quote a large contract approx £50k per year.  It would be our largest by some distance if I won it.

Currently I am a sole trader,  with two franchisees all paying into my Ltd franchise business and the new contract would presumably have to be with me (with the 2 franchisees helping me complete the work)

The contract will send my sole tradership through the VAT threshold, and as I'm 70% domestic I think I'll only be able to recover some of the additional 20% increase in cost.  We're all full too, and would need at least 4 operators to look after the contract, so would need to find someone ASAP.

My question is, should I bother?  I've been pondering it for 2 days now and can't reach a decision I'm comfortable with.  I've been chasing work and growing my business relentlessly since I started, and can't get my head around passing up this opportunity.  I also don't want to take on a massive contract that will mean a pay cut elsewhere and a head ache...does anyone have any good ideas how to alternatively manage the VAT situation? 

Any advice or experience very much appreciated

[Splash & dash]

It might be a simplistic statement but 50k divided by 4 more staffs wages doesn’t seam worth it to me , unless it’s a stepping stone with other work to make it viable .

[NWH]

How much time does that contract require a month.

[adman]

Sorry, its 1 more franchisee required to make 4.  It will be once per week for 4 people in total

[Arnold Palmer]

Sorry, its 1 more franchisee required to make 4.  It will be once per week for 4 people in total

One full day you mean?

[adman]

[/quote]

One full day you mean?
[/quote]

Yeah, 1 full day for 4 people each week

[windowswashed]

Lot of eggs in one basket. Lose that contract after being use to it will hurt. I lost a big contract when I employed and it took quite a time to fill that void. Lot riding on one customer, no wonder it's making you question it. Go with your gut instinct.

[colin bird]

One full day you mean?
[/quote]

Yeah, 1 full day for 4 people each week
[/quote]

I don't have anywhere near the amount of work as you, one full day for four people works out about £250 per person is that enough when you take into consideration running costs etc,depending where you are based I feel you would get a better return for a full day on domestic,,also your risk would be spread across the board,rather than having a large amount riding on one job,personally I would keep pushing for domestic work ,it may take a while to generate 50k worth of work but it the long run it will generate more income with less risk,and increase the value of your business

[Smudger]

If it's going to be £240 per man for the day then it's not worth the hassle either you need to work faster, smarter, harder to get it working for 3 men or pass,

If your having that much trouble deciding to run with it then I'd say it's not for you

Darran

[adman]

If it's going to be £240 per man for the day then it's not worth the hassle either you need to work faster, smarter, harder to get it working for 3 men or pass,

If your having that much trouble deciding to run with it then I'd say it's not for you

Darran

I can quote whatever I like, it's not really about just what the day rate is, although I appreciate any thoughts on what my larger competitors would be charging

If I was an employer, I'd employ another person, put my domestic prices up, and push through the Vat threshold and use this as a stepping stone to growth.

I'm not, I had always planned to stay as a small sole trader and build up a large franchise of smaller businesses.  This contract muddies my waters

[adman]

One full day you mean?

Yeah, 1 full day for 4 people each week
[/quote]

I don't have anywhere near the amount of work as you, one full day for four people works out about £250 per person is that enough when you take into consideration running costs etc,depending where you are based I feel you would get a better return for a full day on domestic,,also your risk would be spread across the board,rather than having a large amount riding on one job,personally I would keep pushing for domestic work ,it may take a while to generate 50k worth of work but it the long run it will generate more income with less risk,and increase the value of your business
[/quote]

I hear what you're saying, but it's £50k of work.  It's a prestigious client too and might push us into a different league.

  I'll probably put my quote in and not hear back so should probably stop stressing about it lol

[Richard iSparkle]

One full day you mean?

Yeah, 1 full day for 4 people each week

I don't have anywhere near the amount of work as you, one full day for four people works out about £250 per person is that enough when you take into consideration running costs etc,depending where you are based I feel you would get a better return for a full day on domestic,,also your risk would be spread across the board,rather than having a large amount riding on one job,personally I would keep pushing for domestic work ,it may take a while to generate 50k worth of work but it the long run it will generate more income with less risk,and increase the value of your business
[/quote]

I hear what you're saying, but it's £50k of work.  It's a prestigious client too and might push us into a different league.

  I'll probably put my quote in and not hear back so should probably stop stressing about it lol
[/quote]

if you decide to quote make sure the price you give is very worthwhile for you.

i would quote high and then some

if you aren't used to quoting a job on this scale. you are likely to underprice it. any mistake could turn into a huge problem

also, if ends up being more hassle than its worth for your franchisees they could just refuse to do it..leaving you in a pickle

also with this type of thing... cashflow could be a big problem for you.

if they are big and slow to pay you, you could end up out of business

personally,  in my position i would quote for it. but in yours, from what you have said, i think i'd dodge it

[ok cleaning]

50k a year contract what will you be cleaning Buckingham  palace?

[KS Cleaning]

Sorry, its 1 more franchisee required to make 4.  It will be once per week for 4 people in total

So let’s say the contract brings in £240 per man for a full days work. How much would the franchisees be invoicing you for that day? I wouldn’t  imagine that they would do a days work for any less than £200? This contract would be doable with employees but not franchisees IMO.

[Splash & dash]

50k a year contract what will you be cleaning Buckingham  palace?

Ime guessing it’s more than one building there are a lot of contracts out there with big firms for far more than 50k per year

[NWH]

All they’ll all be working their 🥜 off for that amount of money again compared to what they’d get on domestics,250 notes for a days constant grafting on a big building 50-60ft high no thanks I’ll stick to my houses.

[Ascjim]

I really doubt you will get it anyway.

[adman]

I really doubt you will get it anyway.

That's the spirit 🤣

The quotes gone in and expecting an answer this week.  Will let you know how I get on

[Arnold Palmer]

I really doubt you will get it anyway.

That's the spirit 🤣

The quotes gone in and expecting an answer this week.  Will let you know how I get on

Good luck 🍀