Starting a trades business but sub contractors do the work?

velaut

New member
Already posted in r/entrepreneur, would like some insight on this sub.

Is it wise to start a sweaty startup but not physically do the work. I keep the difference of paying the sub contractors. Any experience doing this ?
 
@velaut I used to work for a company like that, except they have the money to give the “self-employed” tradies a branded van each to be used only for work with the business and then they did other work with their own car. You’ll have seen the vans around London.

Customer service team booked in jobs, logistics team coordinated jobs, one HR/admin person. Obviously you’ll be smaller scale and not have the brand, but if you keep the price alright people will book you.

There’s a shortage of some trades currently, especially in London. My brother is an independent electrician and has something like 16 jobs on the go. He had to make a waiting list for the rest…

The company I worked for affords the branding because they are expensive as hell, but people still hire them for all sorts of trades (plumbing, electrical, roofing, pest control, etc).

In terms of quality, people like to complain. There will be real quality issues. You’d get it anyway whether there’s real issues or not.

I’d say just don’t panic if you don’t make a profit on every single job at first. You need to on most, but getting word of mouth about your brand is important.

Also potentially start with trades which don’t require accreditation because I don’t know if you hold liability say if you sub to an electrician who turns out not to be up to date with accreditation and then a house he worked on kills a family in an electricial fire. Can’t go wrong with painters, etc.
 
@velaut What will make you different from everyone else doing this? You won’t have the quality control of the guy who’s involved in it.

Do you speak Spanish fluently? A lot of skilled tradesmen have a language barrier here in the US which keeps them from communicating directly with the customers and causes them to sub. If you do you might be able to do the hands off thing.
 
@ammo1113 Im from the UK not US so thats not a big problem here. You're correct about quality control and also the fact that each sub contractor would be wearing a different uniform each time which might hurt the brand possibly?

I guess i wont be much different other than good customer service (As a barbershop owner, it's something im good at). There doesn't seem to be many ways for being 'different' in the trades. I'd literally be just building a brand name here in London and finding customers.
 
@velaut It has nothing to do with being able to sub work. It has to do with mis-classifying workers and the British tax authority coming back and reclassifying your workers as employees instead of contractors and then handing you a huge fine and a bigger tax bill and making you pay for all their benefits and insurance.
 
@bmh3d So if i start a painting business, sub contract it out to painters and earn a profit consistently, does this class that subbie an employee?
 
@pastorpontibus Please, tax isn’t as strict here as it is in the US. It’s gonna be hard to tax a small business accurately within the first year of trading, and with a LOT of variables when it comes to costs/profit. You don’t know what you’re talking about, simply.
 
@velaut You also build industry knowledge. You learn how to communicate between customer and contractor, and you learn how to communicate between contractors.

The years and years of experience brings respect.
 
@velaut Nah fam, most successful business people learn their business before they grow. I don't have much appreciation for the "build a landing page and underpay contractors to do the work for you" approach some here so adore.
 
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