Why I Don't Have Employees or Helpers | THE HANDYMAN BUSINESS |

hello I wanted to start today's video off by thanking everyone that participated in the last video the comments are great they're well thought out and extremely valuable to the community that follows this channel if you haven't seen that video yet I'll link it in the description and there'll be a card at the end of the video that you can just click on and it'll take you right there the topic of this video is my second most asked question from the main channel the first one is just just aggravating we'll get into that and maybe a live stream sometime as you saw from the title it's all about employees or helpers or business growth why I don't do any of it I don't have employees I don't have helpers and I'm not trying to grow a construction business a remodeling business a handyman business I'm not trying to do any of that it's me from the future literally five seconds in the future if you guys are committed to growing your business and managing your employees managing your customers you need a system to help you out Jabar is an app you can use on your phone and on your computer that does it all from your employees your customers money in money out materials it's all in one spot now I have a special landing page on their website there it'll be linked in the description below you go to that link you'll see a picture of me there's a little bit business advice that I came up with to put on this page and you can download jobber and get started at a discount you at least need to try it and see if it works for you links in the description and it confuses people and understandably so I guess we'll start off with why I don't have a helper one is I find that I don't need a helper they cost money and the ones that are affordable they're not good for business they usually don't have a vehicle it'll bring your lunch they all have a criminal record now I used to be an under-the-table hourly helper well back when I was in high school or in college but times have changed college kids are not out to do manual labor at all anymore high school kids same thing I would entertain the idea of a 10 $12 an hour 20 year old kid 18 something like that but that's just not the demographics that I live in the quality individual that I could tolerate being around is not going to go do manual labor they're not kind of just changed they're probably on a paid internship doing graphic design or something so now let's go to a legit employee those guys are expensive you have to pay taxes on them they're their FICA tax you have to pay 7 percent of that unemployment insurance workman's comp insurance put in the comments below what else what other fees are attached to having a legit employee now you can 1099 someone that is where you kind of release your your liabilities on all those fees and you put it on the guy the employee so they have their own insurance they pay their own taxes and that's it most of the guys that have their act together and can afford their insurance and pay their own taxes have a vehicle most of them are in business for themselves there's a few that aren't but they're expensive there it's just an expense and if you do the math maybe the area that you live in doesn't pay as high as mine does there's a specific price point that you are limited to in certain regions every place is different people are willing to pay me a lot I like keeping the money for myself and I've done this experiment I've stopped doing the experiment but oh five six years ago I I would tell myself oh okay it's gonna take me X amount of time to complete this bathroom remodel now if I want to go easy on myself I'm gonna hire a fictitious helper and I'm gonna include their fee into my estimate which would be about 700 - we'll call it a thousand bucks so I say okay I'm gonna raise my price by a thousand bucks to see if someone's willing to pay that so that I could pay an employee and I get the job I'm like wow I just made an extra thousand dollars I don't have to give to an employee so well okay well we'll just keep that as a standard and the next one I'll I'll estimate or bed it up to you know an extra $1,500 and they pay me that - I'm like wow that's the next $2,500 that I wasn't making six months ago and I get to keep it all and not give it to an employee because I'm making all the extra money I don't need to fill my schedule out and have that high volume of jobs that comes with having employees you got to pay these people more and in order to pay them more and still make a profit you have to do more work what that introduces is more stress more anxiety and more business stuff stuff that I don't like doing I like dismantling plaster walls I don't like managing people managing jobs invoicing running around town chasing work what that means is going to estimate here go an estimate here going further than I like to drive to get a job to keep the employees working to keep the machine working staying self-employed it just is simple and I keep all the profits if I was growing the business I wouldn't be doing the manual labor the profits are the same the profits are the same and most of the time when you're growing a business you're feeding the profits back into the business to grow it and grow it to a well-oiled machine that you can then sell or it eventually becomes profitable and you can start taking dividends out of it and the reason you have to wait so long is you need a large market share you have to have a huge reputation and a large marketing budget so the people know you so that it that it runs itself it's a big job that I don't want what I have found is that I take all these profits that I don't give to employees and I invested I'm investing in things that give me passive income which are rental properties and the stock market and the whole stock market thing and whether it's mutual funds or index funds or or different IRA plans that's a topic for a different video you got a guy let's call him Colton handyman and he has built a nice remodeling company he's got five or six employees they they got trucks we have a shop maybe it's this shop and there's got an office maybe I turned that room into an office or it's another standalone building and it's going good why is it going good because the economy is going good going great right now say there's a downturn in the economy well the demand for my work is gonna follow that downturn especially a downturn in real estate people aren't going to be investing as much into their their home so now I can no longer keep the guys busy and you gotta let him go and I gotta shut the office down I got to shut my shop down and I'm back to being self-employed because the demand is gone a perfect example of this is 2008 I watched dozens more than dozens of companies very successful or what you would perceive to be as successful thriving businesses from landscapers to painters framing companies all of them they're gone they went belly-up why because they put all their money back into the business to get more contracts hiring more guys to handle those contracts all their money all their business is gone and now the economy starts to come back and they're like ooh coming back hey : all the guys get them all back and they're starting from scratch again they're building it up they're reacquiring more equipment they got the word the shop they got the office again it's just a repeat but they got a work work work work work and to just to get to the point where they were before the recession the recession will always come take take take the other the other guy named handyman stayed self-employed took all his profits on that the upswing the peak which we're at right now and he is stuffing that away sending it off to his financial planner every single month he's got it I got it dialed in it's just a few clicks of the mouse boom there's $3,000 that's all I can afford this week hey I just landed a deal to make a 30-second video for an amazon seller for 3 grand bring it in click click click another 3 grand goes off to the financial planner get a little off on tangents into the stock market IRA s mutual funds I also put it into real estate same recession comes hits me all my stock values go down all my real estate values go down boom but what happens next ok the economy starts coming back and this is the difference for me it's my mentality I don't do anything I don't go to work I'm gonna call the guys I'm gonna go chase down more contracts find my old contacts and build the business back up to its old value I don't do any of that I just wait and watch and it starts climbing all by itself all by itself and if you look at the stocks if you look at real estate today's value versus say two thousand six and a half two thousand seven values they're higher so I didn't do anything except wait it came back up sure there'll be another recession it'll go down it'll come back up even higher the whole time I'm still feeding it I'm still feeding the money in there that's my main that's my main deal right there of why I don't have employees and why I'm not growing a corporation like a big big company to sell okay I guess you would say I'm going on the lower risk side I find that putting all your money all your drive all your energy into growing a construction company is a higher risk then staying simple keep it and also keeping that anxiety and that stress manageable when you get a big company and you're still running and you're the president you're the CEO whatever you want to call yourself but it is a very high stress and high anxiety career I'm trying to avoid that I'm trying to bring my stress and anxiety down and have a real easy life because I am ridiculously financially free and I don't have any any Yahoo's running around the job site injuring themselves and then Sue and me are trying to sue the homeowner that's what you get with the the under the table guys my real world experience comes from both sides I lived it in 2008 working for a major home builder and I'm living it now as a self-employed person learning from the mistakes of what I firsthand watched I remember this one landscape company he had the contracts I think of all of our job sites and we were doing 350 homes a year and growing up to 380 homes a year and I want to say this guy had like 90% of the contracts for the landscaping whether it was massive retaining walls you like that massive on a hillside or if it was just sodding a regular flat you know house flat lot we always looked at him like man he's a baller he's rolling in a look at him he rolling up and he's like pimped out back then and what was the fancy truck back in like Oh a oh seven I don't know what it was but we all thought he was rich well the market crashed everybody lost their job and that landscaper had nothing he had one house one truck and he was back to doing manual labor hopefully he figured out a way to ship some money off to Sweden or into the Caribbean or something like that but I just saw so many guys lose everything so if you've got some experience like that personal observations put them down below so that we can all learn I think that is where the value of this small youtube channel is it's in the viewers and the guys that take the time to help everybody else out it's a big world out there don't worry when I'm creating competition for ourselves that's gonna be a video in the future about the home services industry in my opinion won't be based on well be a little bit on experience my relevant experience now but it's a speculation of what the future holds for the home services industry

Channel: The Handyman Business

Views: 275,107

Keywords: Jobber, business management, how to run a business, s corporation, employees, cost of employee, employee liability, employee taxes, business strategy, handyman business, construction business, painting company, plumbing business, carpentry business, small business, wolf of wall street, logang

Id: wmiOPu_B2_w

Length: 13min 37sec (817 seconds)

Published: Mon Oct 21 2019