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post #1 of 10 (permalink) Old 12-24-2013, 05:20 PM Thread Starter
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Small Company Survival

Hi,

How does a small company (me, myself & I) manage with the requirements for all of the insurance requirements. My workload is low volume in the out skirts of the cities, which other subs don't necessarily want due to distances and low payouts.

Since most of the major companies are requiring liability & E&O insurance, the business model doesn't work. The costs don't compensate for the revenue.

Are many of your in a similar situation? Figured I see if others are in the same boat.

Thanks & Happy holidays
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post #2 of 10 (permalink) Old 12-24-2013, 06:48 PM
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no one is making money working for nationials or regionals.. read throughout this whole forum and you will find your answers.. its a industry in a downwards spiral.. only people making anything are the nats and regionals.. drive around and look for foreclosed homes and call the broker that is handling it. will take time but you will snag one or two, get a DUNS and gets some goverment contracts, get out there and start advertising for landscaping in the spring summer and fall and plow snow or do interior contruction in the winter depending where you live.. but dont fall for the bs the nats and regionals feed you..

happy holidays
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post #3 of 10 (permalink) Old 12-24-2013, 07:01 PM
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Quote:
Originally Posted by Prather Guy View Post
Hi,

.....

Since most of the major companies are requiring liability & E&O insurance, the business model doesn't work. The costs don't compensate for the revenue.

Are many of your in a similar situation? Figured I see if others are in the same boat.

Thanks & Happy holidays
IMO, the business model doesn't work because this is not a business. Its a pyramid scheme. The money stays at the top. The lialbilty, expenses, and risk goes to the bottom.

IMO, to give yourself the best chance of success, diversify your business model. Do other things along with PP work. Operate with the goal of eventually using PP work as fill in work, and work hard on growing other parts of your business. This way you put yourself in a position where you can only accept PP work that is truly profitable.


Good Luck!
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post #4 of 10 (permalink) Old 12-24-2013, 10:42 PM
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IMO, to give yourself the best chance of success, diversify your business model. Do other things along with PP work.
Or in laymans terms, subsidize the PP work with other work from other industries...
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post #5 of 10 (permalink) Old 12-26-2013, 11:03 AM
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if you have the equipment and/or skills to work in this industry then you have the ability to use them elsewhere to make a real living. You will have to go find the work instead of waiting for a nat or reg to drop it in your lap like most here do then whine when there is nothing to do. If you want a real future then you will have to leave pp work in the dust. Unfortunately this industry attacks people who can't do anything else so there will always be job insecurity.
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post #6 of 10 (permalink) Old 12-26-2013, 12:24 PM
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Or in laymans terms, subsidize the PP work with other work from other industries...
Thats really NOT what I'm saying. PP work is fine and can stand on its own financially. But only if you accept the work that is truly profitable. PP work is not much different from other industrys. A lot depends on your source of work.

In another line of work, we used the term 'fullfillment work' to describe work orders that orginate from, and are part of the National's Vendor Network (aka pyramid scheme). PP work that originates outside these networks are much more likely to be more profitable for most contractors.
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post #7 of 10 (permalink) Old 12-27-2013, 01:29 AM
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Quote:
Originally Posted by K&L preservation View Post
no one is making money working for nationials or regionals.. read throughout this whole forum and you will find your answers.. its a industry in a downwards spiral.. only people making anything are the nats and regionals.. drive around and look for foreclosed homes and call the broker that is handling it. will take time but you will snag one or two, get a DUNS and gets some goverment contracts, get out there and start advertising for landscaping in the spring summer and fall and plow snow or do interior contruction in the winter depending where you live.. but dont fall for the bs the nats and regionals feed you..

happy holidays

Pp is just filler work. The unions will pay their people more.
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post #8 of 10 (permalink) Old 12-29-2013, 04:06 PM
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Quote:
Originally Posted by Prather Guy View Post
Hi,

How does a small company (me, myself & I) manage with the requirements for all of the insurance requirements. My workload is low volume in the out skirts of the cities, which other subs don't necessarily want due to distances and low payouts.

Since most of the major companies are requiring liability & E&O insurance, the business model doesn't work. The costs don't compensate for the revenue.

Are many of your in a similar situation? Figured I see if others are in the same boat.

Thanks & Happy holidays
Your in Cali, so your hosed no matter what

Go apply at Pelco.... After expenses, taxes and the work/time/equip maint/upload ratio you will make more $$ at a 40hr a week job over doing this alone...
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post #9 of 10 (permalink) Old 12-29-2013, 05:17 PM Thread Starter
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Thanks for your comments. I agree with most of the items that have been expressed. This environment is definitely no longer a primary income business, nor was it a sole income for me. Like many others, getting a full time job is easier said than done. I'm going to presume that many doing this work today are doing it for that same reason.
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post #10 of 10 (permalink) Old 12-31-2013, 04:10 AM
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I spent 12 hours today sorting thru code trying to build a website for another field. That'll make you wish you were shoveling frozen diapers and dead cats into a trailer.
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