job offer

[petersonra]

The work you get from this arrangement requires no marketing or sales effort on your part, nor any billing or collections. For many small businesses, a substantial part of the owner's time is tied up in those kind of issues.

There are a few things that just suck, and a few things that need some clarifications, but it is not all bad IMO.

Its not real clear to me if he wants to employ you in the sense of you being his employee, or if he just wants you as a subcontractor. That would be something to clear up.

It could be this is an opportunity to get some additional business with little risk to yourself and little extra work, or it may not be worth it. its hard to tell from what you posted. See if you can work out a deal if you are interested. Otherwise, politely tell him no thanks.

 

[zappy]

I did this once

I did this once

I got 1099 and i was a contractor.They wanted me to go give free estimate to everyone.That got old quick.There pay was like 70% me 30% them.I had to have insurance,keep my van fully stocked,take my logo off my van,and had to be on-call 24/7.I got some side work too from customer's.I wasn't suppose to.

 

[Sparky555]

Looking at it from my point-of-view...if I made $80k/year with $20k retirement/year with medical benefits with truck and tool reimbursement...I'd wire all the lights they want in an 8 hour day (no extra charge), do all the free estimates they want, let them use my license, refuse to take on side jobs, etc.

But that's not what they're offering, is it?

To agree to work only for them for a percentage of sales with no minimums is a bad joke.

 

[Rewire]

45% does not seem like enough.

 

[acwservices]

Without some more facts on your current situation, I would not be so quick to run away from this. Are you currently self-employed, or working for someone as an employee? If you are currenlty working for someone else, and are thinking about stepping out on your own, this could be a good opportunity for you. You could get your feet wet before you take the full plunge. While 45% doesn't sound like much, keep in mind that your expenses will be extremely low. You will not have any WC or GL insurance to pay, advertising or office expense, and the milege allowance should offset the cost of your vehicle (provided it is high enough). Not that bad of a deal with all things considered.

 

[Teaspoon]

Run like the wind,

 

[nafis]

Hi guys
I appreciated your input , to answer some of your questions

Yes I am self employed. I am not going to do any advertisement or marketing . the employer will sell the job I do the work . payment is % 45 of the total payment after the taking the helper cost and material

I have meeting with the folks tomorrow
thanks

 

[ishium 80439]

I hate to continue the negativity but I am curious about these terms. It really seems that they are getting you into a corner. As others have said in times like these you have to do whatever it takes to get work but I would be very cautious of this arrangement. I have a few questions that pop into my mind:

What are they risking? If they can't get you work and you can't solicit your own work they lose nothing and you lose a bunch.

Do they have a proven track record? Are there independent sources you can check to see if they have helped others that you can contact?

What is the duration of the contract? Can either of you call it off at any time or will you be beholden to them for an extended period?

You have to do what feels right for you, I would just advise that you go in w/ a skeptics eye.

 

[quogueelectric]

Buy a good pair of sneakers and run.

 

[growler]

I hate to continue the negativity but I am curious about these terms. It really seems that they are getting you into a corner.
What are they risking? If they can't get you work and you can't solicit your own work they lose nothing and you lose a bunch.

Yes and I'll be darned if I'm going to work for regular customers ( already in customer base) or solicit new one's and do the work for 45% of labor cost & mileage.

He would be better off to pay for his own liability insurance and just sub the work from the company with the option to pick up any additional work that comes his way.

 

[petersonra]

Yes and I'll be darned if I'm going to work for regular customers ( already in customer base) or solicit new one's and do the work for 45% of labor cost & mileage.

He would be better off to pay for his own liability insurance and just sub the work from the company with the option to pick up any additional work that comes his way.

It was not entirely clear to me that he could not continue doing work for existing customers except for the light fixture type work this guy wants him to do.

 

[growler]

It was not entirely clear to me that he could not continue doing work for existing customers except for the light fixture type work this guy wants him to do.

He probably could do some work under the table but you are only allowed to sponsor one company. When he uses that license for the fixture company then he can't be in business for himself. If you operate your own company and then sponsor another that's two companies under one license.

Here is where the trouble comes in. If you go out and do any work then it must run through the company books for liability, workmans comp. and tax purposes, even the warranty required would have to go through the fixture company. Now any work you do the fixture company would have to have you insured and be responsibile for you as an employee.

The only way to keep it straight as far as paperwork would be for him to keep his own independant company and sub work from the fixture company.

It would be a better deal all around, he could mark all panels with his company name and number, hand out business cards and start building contacts for his own business. For tax purposes there are a lot more write offs for a business than as an employee. An employee can only take certain mileage for a business deduction and a business can use the real cost of operation of said vehicle not to mention the cost of tools and any interest charged on inventory, plus any overhead associated with the business.

It's not good to try an run a business as someone's employee because you lose all the advantages of running a business. If the company wants to give you a salary and furnish you a vehicle and tools then that's another thing.

All they are offering is a percentage of labor so he may as well be in business for himself. He is shouldering all the disadvantages of self employment. A general contractor may go out and find the work and organize the job but that doesn't mean you need to sign your company over to him. It's possible to outlast lots of other businesses if you don't let them run your business interest.