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geefree

  • Posts: 6180
When to take on staff
« on: January 22, 2008, 05:13:55 pm »
At some point most of us will or will have taken on staff when our rounds begin to get
 too much to handle alone,

but when is the best time to take on ,?

lets say your round is bringing you 500 per week home, but its getting too much,

so you take a full timer, on and pay him 250 per week,

so it makes life easier but hals your earnings, in fact you are going backwards in my view, as most of us want to build and expand,

so do you struggle on and get to 750 per week to give yourself 500 after paying a helper, or do you take a pay cut,

 and build build build

that seems to be the way, but as you know i have not been going 18 months yet but i am asking the guys who know and already employ of their experiences of takin on lots of work and employing,

also i am sure one ortwo of you will say dont do it, as it causes more problems than it is worth, getting them to work to your standards, paying taxes, days off being late etc
pinching customers.


could i have some of your views on this please guys.

chers.

Gary.

bluez

  • Posts: 519
Re: When to take on staff
« Reply #1 on: January 22, 2008, 05:35:16 pm »
Hi Gary

IMO the only safe way to do it is to add the capacity for more work before you add the work. But that is me and I am over cautious.

You could take on a part timer and train him in to free you up to do the canvassing for more work and build it bit by bit or try having a marketing plan ready to fuel growth after you start the new dude.

hi

Re: When to take on staff
« Reply #2 on: January 22, 2008, 06:26:01 pm »
I have always worked on a 4/6 week basis if I am right up to date it is 4 weeks and anything up to 6.

when I took on my first guy I was flat out at 6 weeks then cut it back to 4 covered his wage and got more work, worked for me this way and still do this now

Richy L

  • Posts: 2257
Re: When to take on staff
« Reply #3 on: January 22, 2008, 06:37:58 pm »
i took someone on when i had too much work for myself.
started working 3 days a week for the two of us.

now im earning as much as 5 days worth of work in 3 days, easy!

if you take someone on, you have to benifit, or its just not worth the hastle

Skyglide

  • Posts: 198
Re: When to take on staff
« Reply #4 on: January 22, 2008, 07:03:04 pm »
You've got to be working flat out and have spare capital to take someone else on.
You will be sacrificeing your income in the short term - quoting, running around first cleans, admin all eats up time and money. The new guy will need a decent income or he'll leave, needs training, motivating and you need employer's liability insurance.  You will be taking on all work just to get volume.  You will still have to clean as many windows as possible yourself for quite a time (sometimes to pay his wages and he'll be earning more than you). Then it's still feeding the monster - regular payments of PAYE and NI, holiday pay, and looking to be VAT registered. Increased turnover means more likelihood of equipment wear, vehicle damage, the public sueing you, complaints.  Then it's more equipment, software, vehicles to be purchased and premises to work from and park the fleet.
If you have the desire and money saved (not borrowed - margins are too smal to be paying interest in my opinion)) you can take this up to as high as you want.  Dogged determination, hard work will get you there.
Just our experiences expressed. It can be done, but not without a few grey hairs along the way.
Chris

Ian Lancaster

  • Posts: 2811
Re: When to take on staff
« Reply #5 on: January 22, 2008, 07:08:47 pm »
 ::) ::) ::) ::)

Richy L

  • Posts: 2257
Re: When to take on staff
« Reply #6 on: January 22, 2008, 07:23:14 pm »
christies ... looks like you have had some bad luck.

It not all that bad. If you want to make money, sure, there are a few risks, but its worth it. if you can take seomone on, i would!

Wayne Thomas

Re: When to take on staff
« Reply #7 on: January 22, 2008, 08:18:04 pm »
If you're rushed off your feet with work and considering whether it's time to employ someone, ask yourself "is ALL my prices decent". If they are not all decent, then try to increase your prices on your low priced work. That will lose you a few customers, allow you some freed up time and boost your earnings. Then when you become rushed off your feet again, you are in a better position financially to employ someone and learn all the pitfalls of employing ;D

Dean Aspects

  • Posts: 1786
Re: When to take on staff
« Reply #8 on: January 22, 2008, 08:36:27 pm »
I employed last tax year and it did not really work out for me so i am now a sole trader again got rid of a lot of work increased prices and lo and behold i have turned over nearly the same amount this year with 3 months to go all this on my own with no wages insurance and second van to pay for

Dean

Skyglide

  • Posts: 198
Re: When to take on staff
« Reply #9 on: January 22, 2008, 08:59:02 pm »
Agree with Wayne. First thing to do is bump up prices and rationalise rounds. Then keep flat out and decide.
I'm just trying to prevent failure or disappointment to anyone considering employing. Not many realise the full cost involved.

Chris

geefree

  • Posts: 6180
Re: When to take on staff
« Reply #10 on: January 23, 2008, 09:51:12 am »
Thanks for your imput guys, very helpful        :)