Advice needed please

[topshelf38]

Hi everyone I'm new here and I'm so glad I found this website! I hope this is posted in the correct section. I'm a new business owner and I need to figure out what pay is fair for my employee. The basics are I put up the money to start this business which was about 70k. They used to have their own company but sold it years ago so they have about 20 years experience. They are doing all of the physical work, securing contracts from their old connections, networking to get more jobs, and keeping the van clean and maintained correctly. If you were me, how would you pay them? If it's a split what percentage is fair? I'm so appreciative of him and everything he does so I definitely want to be fair, but also don't want to screw myself over. I financed the truck mount and the vehicle so I'm making payments. Thank you for your advice

 

[ACP]

I dont think anyone here can answer that without knowing your expenses. You need to calculate everything and then all said done realize that its basically passive income for you if hes the one doing all the labor, bringing in the customers, doing all maintenance etc.

you should expect a smaller percentage than him for sure

 

[Odin]

There is this thing or person called a CPA I think it's something new you should look one up

 

[Todd the Cleaner]

I’d figure a set of commissions for him. Something like the following. Adjust the numbers to what your business can support.

20% of jobs done

An extra 10% for any add on Work he does for jobs you booked.

An extra 10% for any jobs he brings in.

A good hourly rate for any office time or maintenance he provides ($20-25 an hour)

This all assumes a well experienced tech that is not being hand held.

 

[Garold Dixon]

I can share my financial horror story with you, too, haha. Thank god things have improved for me since then. There is a lot of useful knowledge here I used to find out more about banking systems: https://checkgain.com/ I had a pretty difficult year but things are looking good.

 

[United Custodians LLC]

Pretty darn good ask yourself where would you be without them with them having their own business before they know the cost

 

[Anderson]

Hi everyone I'm new here and I'm so glad I found this website! I hope this is posted in the correct section. I'm a new business owner and I need to figure out what pay is fair for my employee. The basics are I put up the money to start this business which was about 70k. They used to have their own company but sold it years ago so they have about 20 years experience. They are doing all of the physical work, securing contracts from their old connections, networking to get more jobs, and keeping the van clean and maintained correctly. If you were me, how would you pay them? If it's a split what percentage is fair? I'm so appreciative of him and everything he does so I definitely want to be fair, but also don't want to screw myself over. I financed the truck mount and the vehicle so I'm making payments. Thank you for your advice

bro

from what you are saying you dont have a lot of experience running a carpet cleaning business and may noot be able to run it without your workers???

difinetly a percentage..!!!....salary/commision????

set down and negotiate with your worker...what he expects and what is fair!!!

if he has say in the pay he will stick around...if not he could bail????

 

[HelenLondon]

I advise you to find a person who purposefully deals with all expenses and studies wages at the labor exchange

 

[Ken Raddon]

Pay him a fair wage (that would be based on your areas living expenses). If you cannot pay that amount like about what Todd said, $20 to $30 an hour then you need to charge more.

 

[Sabyl Nate]

This smells funny. He had a business, sold it, is back to it years later with your financial backing... but it's your business, and you don't know what you should be paying him...

So, I think the first thing that bothers me is... who's business is it? I get that you're the money man, but... do you dictate his hours? Book the work? Do the estimates? Meet new customers? Negotiate service contracts?

Seems to me you may want to consider this as more of a loan, establish a timeline, and come to an agreement on payment terms.

I don't see this ending well, structured as is. My 2 cents.

 

[Anderson]

bro i agree with sabyl....

this could be a mess.....

you gotta make sure you are in charge!!!!!

i bought a guys cleaning account a15 years ago....
then he wanted to come back and work for me.....

tried it for awhile.....didnt work.....he still thought it was his business!!!!