Dealing with growth

[Muggs]

Some random thoughts...

I've found that the best way to keep guys is to make sure they feel like they're learning and growing. I always say "if you're not learning at work then you are missing out on a significant portion of your compensation". I look for climbing nerds at least half as obsessed as I am. You recognize these types almost instantly, within a day or two on the job. If they're not learning then it turns into "just a job" for them.

If you want to keep guys around then you have to go hard. You can't just work when you want to. We pay salary rather than hourly so everyone is incentivized to bang out the jobs and get it done.

Most young guys who get into the trade, at least around here, are trying to learn the absolute minimum they need to know before they feel confident enough to start their own business. We call it the 2 year syndrome. They'll work for you for about 2 years before going off on their own. Just the way she goes.

That being said, not everyone is entrepreneurial minded. If you can find guys who want to work for you then you can build a good long-term business around them.

Whenever possible, don't let your employees see how much the jobs are worth. Don't let them know how much money is coming in unless you are letting them see how much is going out. This, in my opinion, is the number 1 cause of the 2 year syndrome. Young guys see how much tree work sells for, and they just think of it all as profit. They have no idea how high the expenses are on the back end...

To the original question, grow as slowly as you can tolerate. Raise your prices if you really can't keep up. Fast growth can be a recipe for disaster. What grows quickly can crumble just as fast.

 

[evo]

Oh my goodness that's terrible. I'd never contemplated that. Nearly a worst case scenario. Glad it got sorted out.

I don't know if its my dumb luck, but this shit tends to happen in different flavors every once in a while. Its a roll with the punches and deal with it kinda thing.

 

[southsoundtree]

Random thoughts.

Subcontracting work is a fine move, if real subbing. You are a broker of the deal for a profit (if things go as planned), in a way, and also responsible for it.

That is a different scenario, and quite useful. I've subbed a 60 hp stumper and a crane/ op.



I've used laborers from a temp service (lame experience, limited data set).







A miniloader is a small (ish) down payment and monthly, especially compared to $10-15k per employee.



There are far too many dead/ hazard trees for ME not to want to do it all, diverse arborist work and wrecking work. The mini takes so much work out of it.

Do you think your preservation customers won't also have needed removal work? Would they go with half- price Harry on removal work?




Easier to hire a green laborer looking for landscaping- type work (drag branches, rake up, blow off) from an employment agency than a climber.

Which do you need more?

A mini is so much more use to ME than an employee.

 

[Brando CalPankian]

Random thoughts.

Subcontracting work is a fine move, if real subbing. You are a broker of the deal for a profit (if things go as planned), in a way, and also responsible for it.

That is a different scenario, and quite useful. I've subbed a 60 hp stumper and a crane/ op.



I've used laborers from a temp service (lame experience, limited data set).







A miniloader is a small (ish) down payment and monthly, especially compared to $10-15k per employee.



There are far too many dead/ hazard trees for ME not to want to do it all, diverse arborist work and wrecking work. The mini takes so much work out of it.

Do you think your preservation customers won't also have needed removal work? Would they go with half- price Harry on removal work?




Easier to hire a green laborer looking for landscaping- type work (drag branches, rake up, blow off) from an employment agency than a climber.

Which do you need more?

A mini is so much more use to ME than an employee.

My thinking with focusing on preservation work is to attract the right clientele. I will do removals, I love doing them. I don't want it to be my focus. In my area especially, forging relationships is huge. Also, because of my area (rural, older folks, long drives) word of mouth goes a long way. By developing a client base with a foundation of caring for trees, I'll have more diverse work and ability to spread offerings than if I focus on mostly removals. I have a lot of competition in the removal arena and next to zero competition in PHC, pruning, and arboriculture. Plus with my wife becoming a master gardener, landscape/horticulture is a service we'll grow in to.


I agree with the statement about growing a green employee with the right equipment. A trailer and mini are my next major purchases, hopefully coming this spring.

Your advice on employees was insightful. I have been tripped up about if I should go hiring a journey level guy vs a greener guy who's a good hand but needs coaching. I don't NEED a climber, but with my time being limited between my full time job and this a foreman/climber would be really helpful. If I can be patient, I can train the groundie up so he's useful to said foreman and hire him later.... Decisions.

Yes, subcontracting correctly is the goal. It would be cheaper to make the climber a sub for when I need him (literally pay for his insurance and stuff). I risk him running off, but I could gain a good ally too.

 

[southsoundtree]

Good thoughts.

I think the preservation end is good to focus on. I do about half and half.

Being set up to perform more services can bring in more work, supporting the employees.

 

[Mike H]

Yes, subcontracting correctly is the goal. It would be cheaper to make the climber a sub for when I need him (literally pay for his insurance and stuff). I risk him running off, but I could gain a good ally too.
[/QUOTE]
Careful with paying expenses for your sub. When they cause damage at your clients' house it may get sticky. Worse is an injury on the job without workers comp

 

[Brando CalPankian]

So, per @Tom Dunlap , I found a company that will "hire" my employees and handle all of the odds and ends for a modest fee. I can use them as much or as little as I want. And since I am bringing my own guys, I get a discount. We'll see how it works. At least we'll be above the board.

 

[OasisTree]

On fast growth...I highly recommend that you find a good business coach to bounce ideas off of and help you find clarity with where you really want to go.

 

[Analog]

One of my best/smartest business moves I made was to find a day-labor company to 'hire' my crew. TOTALLY legit in Minnesota, maybe elsewhere. I talked with the owner and to the company who contracted for the insurances. I paid him something like 23-30% of payroll and he paid 'my crew' as if they worked for the day-labor/payroll company. All I did was pay him twice a month, in one check, for hiring the contract employees.

I did this as well for a couple of years. I had a great groundie who came to me trained and experienced. He didn't want full time work as he had other jobs so I found a staffing service who took care of everything. It was all app based and very easy, I just cut them a check every two weeks. They paid him daily via direct deposit. I thought it was a good solution for my very small company.