Finders fee!!!

[flange]

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.....

[cold in alberta]

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