Wanting to get some advice from the folks that have expanded their business or worked for a company that did something along these lines. The company that I currently work for is trying to take that step from doing smaller jobs like bathrooms, kitchens, basements, along with larger jobs to doing whole house remodeling, additions, and new homes full time. We are beginning to expand our use of subs and take on larger and larger jobs. I see this as an opportunity to step up and present an idea to the owners that has potential in it for them, along with me. My idea is to let them continue on with the larger jobs and to let me run a division that does jobs that aren’t as huge. I don’t know whether to present it as a seperate company or as part of the same company, but as a different division. I don’t really know what the tax/insurance aspects of it would lead into.
There are a few reasons I’m thinking of presenting this to my bosses. The first is to continue to provide a place for our customers to get work done. At the moment, we are all running around like chickens with our heads cut off trying to do jobs that are well over 500k while continuing to do jobs that are well under 10k, in order to keep customers satisfied. If a new division were created to deal with these, it would keep referrals and good will up with our existing customers and possibly bring in new customers. The second reason I’m doing this, is to give myself the chance to learn the aspects of running a business without as much risk.
If anyone thinks I’m stepping on toes, here’s some further information: My father owns the company and has a partner. The partner and I have talked about me taking a larger role (Not this idea though) and I know that he trusts me. The only obstacle for him, as well as for myself, would be convincing my father that I’m capable and ready for a position such as this.
I’d appreciate pro and con comments from anyone willing to respond.
Replies
Bumping this up for morning people.
^
your dad has a heart attack tomorrow, are you ready to step in and take over the whloe show, would he trust you at it
can your dad send you to a job and know it will be done right, cost effective and safe without pissin off the world
can you do the books yourself, scheduling etc and not just hand a wad of receipts adn time sheets to a bookeeper amd let them foigure it out
if you can answer yes to all the above, then I think you should tell dad your plans,
just trying to get the discussion going
This is a reply for you and Dave. Right now and for the last few years, I've been left to do jobs with a pile of tools and a slap on the back. This included scheduling subs, directing them, dealing with change orders, etc.I've had my hands partially in the business aspect of it for as long as I've been allowed. I try to take in as much as they'll give without actually sitting down and the rest I've learned through self education.Even beyond what you've asked, I've gone on sales calls and written up bids for them.
I've been left to do jobs with a pile of tools and a slap on the back. This included scheduling subs, directing them, dealing with change orders, etc.
How well did these jobs go? Did you meet (or beat) the schedule and budget? Did you make a profit?
I've had my hands partially in the business aspect of it for as long as I've been allowed
This statement raises a flag for me. In your first post you said that you had talked to your Dad's partner (but not your Dad) and now you use the word "allowed". Is there some conflict between you and your Dad? Are you wanting to fly higher, faster, and further than he's willing to let you? You may need to have a real heart-to-heart talk with your Dad. He needs to know what you want to do and why you think you can do it. You need to be ready to hear why he doesn't agree and then both of you need to work out a plan for how you get to where you want to be.
FWIW, I'm not trying to put you down here. I'm remembering the relationship between my Dad and me in the late 50's and early 60's - lol.
Thanks for the replies everyone. The jobs I've been put on have gone well or better than expected. I've never really had any complaints from the customer or employer side. Let's just say that the Father/son relationship hasn't gotten me any further within the business than any of the other employer/employee relationships within the company. On more than one occasion, it's been mentioned that I am treated more harshly and more employee like then some of the guys that work here. While this might not sound like a positive, it has been because everything I've done and learned has been done on my own. I haven't had someone there to prop me up.
You don't say how long you've been in the business or how much education you have; and nothing about your current level of responsilility. If you're just one of the grunts, you're probably not ready to try to run part of the business right now.
You should talk to your Dad about your future role in the company and what you need to do to move up. His partner may have an opinion, too.
FWIW, you should be ready for some resentment from the crew(s) if you start getting supervisory assignments. There will always be a question if it's because of your ability or your bloodline - lol.
I think that is it a good idea. The labor force and subcontractor base is totally different for 10k jobs from 500k +. I work for a company that does the larger jobs and we struggle with the little ones. We take small jobs on as customer service for our larger job clients.
We have tried (somewhat unsuccessfully) to use the same personnel and subs. If set up right a separate division would be a benefit to the company.
Owen Roberts Group
10634 East Riverside Drive # 100
Bothell, WA 98011
http://www.owenrobertsgroup.com
Edited 7/24/2005 3:12 am ET by Adam Greisz
I think it is an excellent idea for a separate division. As mentioned by others, a big company often does not do a good job with the small stuff but would be an excellent support for a small job division in terms of sales, office staff, financial resources and manpower. The small job division would reciprocate by handling customer service.
Whether it is a good idea for you and your father is another question. I think you should spend at least five years working for someone else. This time would teach you different ways of doing business and establish your independence. Unless your father is a remarkable man, he will always view you as an appendage of himself. A separation might make him see you for what you are. If nothing else, the others in the company will be more likely to value you for your own qualities.
If you are thinking about the big picture, whether at you father's company or anywhere else you work, you have a big leg up on most employees. If you combine that vision with hard work, you will be a valuable asset. Good luck.
On the legal side of company structure , you need to talk with a lawyer and accountants
Consider setting it up as a separate company which is a subsidiary of the main company (Is the main co really a partnership?)
If you set it up as a subsidiary, you can take an equity position, say as x% owner, which can mean extra money for you if the business prospers.
Keep in mind, though, that the majority owners can make business decisions which affect the dividend payout to shareholders:
"Of the $10 profit this year, we'll pay out x% to the shareholders and retain Y% for business reserves and capital improvements."
There can be tax effects, however.
If your father doesn't go for it maybe you should start your own business doing what you described(apparently there's a need for it) without burning bridges with him. It could be mutually beneficial, you could be referring customers back and forth. And if his businees and reputation is good, you could benefit from that also(name recognition).
I think it might a mistake for your father and partner to pass on this opportunity assuming you are capable of handling it. I've considered eventually doing the same thing in my business, it's seems there's no shortage of small handyman type jobs or new homes, etc. in my area. The small jobs are the ones people have the most trouble finding dependable tradespeople for(sometimes this is because they're unwilling to pay the going rates).
Go for it either way!