View Full Version : Contracting out Services
04-22-2006, 08:02 PM
Have any of you thought about contracting out services such as lawn maintenance and landscaping maintenance?
What do you think your current customers reactions would be? Would they approve of it, of not like the idea that you are having any company do your work?
04-22-2006, 08:55 PM
Can you tell me the benefits, as you see them, of contracting out services?
04-22-2006, 11:35 PM
For example in my case, I could contract out the mowing services and landscaping maintenance services (pruning shrubs), and then I wouldn't have to worry about that in regards to equipment, also I could concentrate more on the application side.
Also, I still have my foot in the door, and am making some money at the same time.
04-23-2006, 12:33 AM
Well, I contract all my fert work out, and my fert guy has some big contracts that he plans on bidding all the maintenance and contracting the work to me. That way another company who mows and ferts wouldn't get the contract and possibly lose him the account too.
04-23-2006, 12:41 AM
As I was reading this I was thinking. What if you were able to have a division that did this, where you could find someone to run it and take a % of the profits.
I don't know if it is feasible but what if. Then you could have someone who has a vested interest in the company division as well as someone who who put in the extra effort to make it work.
Many times people just can't or don't know how to run a business but would like to have a part ownership in one. If you already have the understanding on how to run one and the infrastructure to do it. I could work.
04-23-2006, 09:09 AM
I would rather not have to worry about the maintenance side though TG. I know that I could always hire someone on, and have them do the work, but I really just want to kind of wash my hands with it. I mean, yes sure I would love to sit back and contract the work out, but when it comes to doing equipment maintenance, and having employees again that are directly with my company, I really don't want to do that
04-23-2006, 07:13 PM
I can understand your view.
When do you think you might start to do this?
04-23-2006, 08:31 PM
I really don't know. I thought perhaps maybe start right away with only a hand full of accounts just to see what it would feel like and how it would work out.
04-23-2006, 09:07 PM
You know what would be neat. To make a door hanger for you with this company, where one side is about your company and the other side is about theirs. then you could both use them.
04-23-2006, 09:42 PM
Well, I already kind of team up with one company in regards to giving each other work and marketing together.
But I am wondering whether my customers will be upset if I subcontract out the work to another company. I have been thinking about talking with a few customers and to see what they think.
04-23-2006, 09:56 PM
Well, you still would be the go to man if there was a problem. I think that should help the concept. When you sign up customers for such services maybe just let them know you sub contract out certain services.
Also do will you have the sub contractor sign some sort of agreement so they can't steal your customers?
04-23-2006, 10:03 PM
That is what I would have to do. I would have a non-compete clause.
04-23-2006, 10:10 PM
Well, good. I think this might be the best path for you now, knowing what you have told us.
04-24-2006, 05:57 PM
I recall reading about a guy that subcontracted all his work out. He was almost like a salesman or lawn care agent I guess you could say.
He basicly did all the paper work, did the running around to get the work, kept customer relations right, did all administrative work basicly. He would keep 20% off the top of everything and had umpteen companies working for him.
It's a really good idea actually. I mean theres so many companies out there, and alot of them don't have a clue on how to run a business or market properly. All he did was advertised, got the accounts and would assign the accounts to the certain companies. If the company wasn't doing good work he'd terminate their contract and move on to another company. As I recall, he was making good money doing this and had alot of companies going to him for work.
04-24-2006, 07:58 PM
It almost is like a virtual company in a way!
Come to think of it, I know someone who does this as well. He had many many connections in his community and that helped him have an opportunity to provide services to those people.
I think a big reason why businesses fail is because a lack of management skills.
When a person has management skills they can take things a lot further.
04-24-2006, 08:04 PM
That is what I was thinking. Basically, I do all the marketing and sales, and earn 15 to 20% on the property. I don't have to worry about equipment, or any high overhead. Simple and easy
04-24-2006, 08:45 PM
It sounds like your a good salesman so why not do it. From what I've read you should expect 20% for doing the management side so I'd stick to around there.
You could make some good money if you end up doing that and don't mind the extra paper work. Deffinitly be a nice thing to do until you can book the application side.
04-24-2006, 09:31 PM
How important would your company brand be with doing this?
The way I see it, the stronger your brand, the easier it would be for you to attract not only clients but people who would want to work for you as sub contractors.
04-24-2006, 11:08 PM
That is also the downside that I see as well. Yes, I could get me foot in the door easier because my name is recognized, but also if the companies that I contract work out to do a horrible job, then it reflects on me poorly.
04-24-2006, 11:10 PM
Very true. You would have to make it right. But as you go forwards and learn more, you will get more of a chance to flex your business muscles. There are many business owners out there that don't want to do that. They just want to work. It could be a perfect match with the right company.
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