I wasn't arguing if your points of business were right.
Just merely pointing out that "the new guy" brings a half mill in work, and the boss is cutting benefits/perks. Something ain't right, you know what I mean? Employee should be shown a fat reward for the new business. Also, I question why the employee is handling the calls? Why doesn't the office?
To the OP......you are just buying your time till you start your own business. You stated most of these customers will come with you. Also, these customers don't even go through your current companies office.
Maybe, your boss is not greedy, but is smart enough to see what's going on. If I was your employer and knew what you posted, I wouldn't give a crap about compensation to you. I would milk it, until you left.
if you bring in a half million dollar job that cost seven hundred to do, you are out of business. just stating the obvious. show me the value, not the price. oh, you didnt get your finders fee? sorry.
lots of customers prefer to call their tech first. i encourage it, as sometimes it saves an emergency. a tech can do things over the phone that an office girl never will. office girls are great with papers, but suck with chillers. note, i dont fear my guys competing with me, i dare them to try then tell me how good it is.
$500k is peanuts!
For an already established business owner that could be $40-50k in his pocket!
Not bad!
How much do you make a year where you are at right now?
lots of customers prefer to call their tech first. i encourage it, as sometimes it saves an emergency. a tech can do things over the phone that an office girl never will. office girls are great with papers, but suck with chillers. note, i dont fear my guys competing with me, i dare them to try then tell me how good it is.
I agree. Not only that he should go on his own. Finding help that's qualified is the hardest thing. Always keeps you scrambling. He thinks he is on call now. Good luck is all I can say.
If you are only making 5% on 500K worth of work, you'll have many serious issues with just staying in business......
Yeah, that 500K may only cover so many expenses AND make you a little profit, but we aren't talking about the OP'er opening a business. We are speaking about his employer BENEFITING ANOTHER 500K from one employee bringing business with him. You're right, it should have been negotiated up front, but if the bossman is taking away perks, even though this employee is bringing an ADDITIONAL half million in business, well, can you really defend that?
Should he? Yea, IMO. He already has half a million in work.... How many guys starting out have that benefit?
500k as a one man show? Absolutely go on your own, as an owner operator you'll never see higher profit margin, the trick will be maintaining it when you have some employees and real expenses.
in general, startups have a higher percentage of overhead than existing businesses. many though, dont realize it. here is why. lets say this guy works 40 hours a week on these accounts. his current boss has an existing office staff that does all the peperwork, and burden rate is diversified across all service contracts. and lets say for argument, burden on this cost 15/hour for girls. o/p then goes on his own, spends the same 40 hours on the accounts, but then has to do paperwork on saturday. does he get paid overtime to do it, or just do it free. lets say he makes 20/hr. his burden rate on saturday is actually 30/hr if he pays, or his hourly rate DROPS, since he is working for free. since he is a field guy, he is likely less efficient then office girls, and is less organized, another efficiency loss. while this seems a little bit elementary, his profit ratio is lower. if margins are already slim (we dont know), he is working harder for a lower hourly rate.
this is the exact reason why soo many hvac businesses fail in the first three years. guys come to the realization that: they are working harder for less, their wives are unhappy with how much they work, they have missed too many birthdays or other family events, and the things that matter have passed them by.....
in general, startups have a higher percentage of overhead than existing businesses. many though, dont realize it. here is why. lets say this guy works 40 hours a week on these accounts. his current boss has an existing office staff that does all the peperwork, and burden rate is diversified across all service contracts. and lets say for argument, burden on this cost 15/hour for girls. o/p then goes on his own, spends the same 40 hours on the accounts, but then has to do paperwork on saturday. does he get paid overtime to do it, or just do it free. lets say he makes 20/hr. his burden rate on saturday is actually 30/hr if he pays, or his hourly rate DROPS, since he is working for free. since he is a field guy, he is likely less efficient then office girls, and is less organized, another efficiency loss. while this seems a little bit elementary, his profit ratio is lower. if margins are already slim (we dont know), he is working harder for a lower hourly rate.
this is the exact reason why soo many hvac businesses fail in the first three years. guys come to the realization that: they are working harder for less, their wives are unhappy with how much they work, they have missed too many birthdays or other family events, and the things that matter have passed them by.....
and if he has a small shop and so on and so on-i always get a kick out of it when people say a small shop can do the work cheaper,as flange said overhead is a percentage-its all relative.
a guy can sell 500k all day long but if the margins arent there wtf is the point-the minute you go into business for yourself you better realize what your true costs are or you will regret it in a hurry
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Originally Posted by flange
