Employee or Subcontractor

What a day, plenty of work and no helping hands. Where is the new team?

How to structure your business is at times tough, both employees and subcontractors have pros and cons.

Employees
Are paid by the hour which must not be below the minimum wage set by the government.
You are required to pay benefits such as sick leave, vacation leave with pay, super and other allowances
Having employees gives you people that you can rely on during the times when you are not around.
They are trained by you
Employees have no commitment to the company
The employer is to provide all equipment and tools of trade
What do employees do when a job is cancelled?

If you are a good employer, most of your employees will stay with you and you will have skilled and experienced staff in your company. It's a give and take situation - you pay them, provide them their compensations, and in return, you get reliable, skilled, and experienced staff that can make your company.

Subcontractors
Are paid a %of the job total or invoice you for the job
They are loyal to the job
Subcontractors have their own insurance and pay their own super.
They are trained and you are not required to pay them for training.
Subcontractors could send different people.
They provide their own equipment and tools of trade
Subcontractors are great for the not so regular work. They are great when you are starting out and growing your business but if you do not have a tight contract on a job % total you may not find it financially rewarding.

Quote "Encourage your people to be committed to a project rather than just be involved in it.'
Richard Pratt

Business Stages

I was once told that business is like a person growing up it has all the stages to pass through as it grows.
New Born: As a new born,you've just started your business or franchise. The papers may be signed, the name created and you the business owner are about to start your journey.
Infant: As an infant you are making money however you are the business it is fully dependant on you and you make all the decisions.
Child: As a child you are still taking care of most tasks however a business in the child stage has some tasks or jobs being completed by others, sub-contractors, staff or delegated to another company.
Teenager: The business now has employees/sub-contractors and is now making decisions without you the owner. You are still guiding these decisions and overseeing most of the days work.
Adult: A great place to be. The business is self relaint and no need for the owner to be there constantly. The employees sub-contractors are able to make sound decisions.

So where is my business. My franchise is a child, still needing my support as I found out when I had a few days off ill this past week.

Quote "From Little Things Big Things Grow' Paul Kelly's song

A job or a business

About 3 1/2 years ago I brought myself a service franchise. Everything sounded great and I had plenty of work almost immediately, however it did not take long for me to realise I'd brought myself a job.
Within a few months I had a friend working along side me to help me service my customers, and than a few months after that I started contracting work out.
Although my franchise on the outside looked great on the inside it needed work if my franchise was to become my business and not my job.
From today I will start sharing my business ups and downs as I work on the business while still working in the business.

Quote:
"The entrepreneur builds an enterprise; the technician builds a job."
Michael Gerber - Entreprener