Hiring/Managing Employees - Payment structures?

[kimwallace]

onthespot,
I admire you and your approach to doing business!!!

[FourStarDetail]

Additionally, I carry a garage keeper`s liability of $500,000 (per accident/per injury) which covers all vehicles that I work on as well as any personal injury accidents should they occur...

Just curious, how much does that kinda insurance run you per month, or per whatever period you pay in? I recently went "legal", got a biz registration and all that jaunk. I am wanting to get insurance as soon as I start to roll in some work.

:beer

[ben54]

onthespot,

Good plan. It`s nice to see businesses take those kinds of precautions. They will help ensure that you`ll be in business for a long time. It should also give your customers some comfort knowing that in the event of a problem, you`re already prepared to deal with them. It may cost your customers a little more for your sevices to cover your extra expenses, but I bet they are willing to pay that extra amount for a little peace of mind.

[BaDm0theR]

Im getting some helpful input bubbling along in here, outstanding!

Again, much thanks to those are taking their time to contribute to this thread. Im confident that with enough responses and input other people who will have similar questions in the future can look upon this thread as an excellent reference.

FYI: I work part-time detailing, im a full-time student in college at the moment as well. So although this is my primary means of income, this is not a `daily job` so to speak.

Groebuck: Yes, i think you presented very insightful advice. Im trying to design the payment structure for this would-be employee so there is incentive to do outstanding (rather than just `good`), and also to bring in new clientelle (for which he/she will be more heavily compensated for). Positive management and keen motivational techniques on my part will play heavily into the success/intensity of how well my employee will work...but i do feel that when a person is obviously going up and above what is expected they should be recognized and rewarded for it.


Ben54: As i mentioned above, because of the fact that my work is part-time (mainly trying to target high-end clients as well), i dont feel its necessary to hire someone solely for administrative/marketing work. This side of the business is something i take very serious (especially because im setting a certain reputation for myself) and i`d much rather prefer the social, administrative and marketing aspect to be solely up to me. This logic doesnt apply to the `physical` aspect of the detailing work...hence im searching for that god-send employee to give me their time and effort.
As far as quality control, i will be ensuring that by going over all the work (like small detailing tasks on-site) myself and correcting problem areas as needed.


Dr_Detail: Your input hit the nail on the head. Very well said. I strongly beleive that building strong rapport (both in your clients AND your employees) is the absolute crucial aspect for ANY successful person/business. I will do my best to POSITIVELY motivate and educate this person so that he/she can experience the kind of care, appreciation and dedication that i do toward my work. Patience will Inevitably come with the territory of management.

Keep the ideas & advice flowin :beer


Thanks again to the contributors, you all have delivered yet again above my expectations

[dr_detail]

Originally posted by ezragipson
I have a question about setting up an employee as a contractor. I have two questions:
1- Doesn`t the person listed as a contractor need a business license inorder for it to be legitimate?
2- Or does the law regarding this business set-up change depending upon the state in which you operate?

From past experience with a temporary worker and a state labor hearing... if you set their hours, or transport them to a job-site, or supply them with the necessary materials and/or equipment, or instruct how the job needs to be completed, or provide training to perform the tasks, or specify/provide them with a uniform, they are, according to the Federal Labor Laws/IRS Tax Codes, an employee and not an independent contractor. Of course I don`t think they will be chasing down a small time operation, and the first $600 can be paid as services rendered without a 10-99 or a W-4, however an ounce of prevention can save thousands in legal fees and fines. It might be a good idea to just contact your local SBA or a CPA for more insight.

If you go the independent contractor route, you might also consider paying them either by piece work, on a percentage basis or as a day laborer.

[onthespot]

Originally posted by FourStarDetail
Just curious, how much does that kinda insurance run you per month, or per whatever period you pay in? I recently went "legal", got a biz registration and all that jaunk. I am wanting to get insurance as soon as I start to roll in some work.

:beer

My premium is $1042 annually... It is difficult to find an agent who can write a policy for mobile detailing. I highly recommend (a company that specializes in writing business policies) ---> Auto Owners Insurance Company located in Lansing, MI
(Link to Auto Owners Website)

[jimmybuffit]

Dr Detail is correct about contract employees... you might be able to 1099 a paint touchup or dent guy, but certainly not an assistant. Taking on one employee is as difficult as taking on ten. Really makes it tough to take the next step...

My Garage Owners policy is $1162 per year.