I just want to get some input on this possible scenario.
Let’s say I can get enough work to keep one or two guys busy most of the year but the work only brings in maybe $25 per man hour. If I pay independent contractors about $15 per hour to take care of the work that leaves me roughly $10 per hour they are working without having to raise a squeegee myself. There are no costs involved in getting the work, it’s a situation where I match the current price they pay and it’s mine. This is 95% outside only work that is time consuming but not particularly risky at all.
Is there something I’m not seeing that could make this a bad thing? I’d be making probably $10,000 a year with little to no effort on my part. I understand that I could run into issues if the contractors quit or something which means I need to find other guys fast or may have to do some of the jobs myself until I can find people. I also realize that the income overall is low per hour but it’s also quite a bit of work which deserves some price break I would think anyway. Is this something worth doing? Have any of you tried anything similar as far as using contractors and just making a little off the top? I obviously will continue to do the jobs I do now and I have a couple guys in need of work that should be perfectly happy with $15 per hour in pay. I am not signing any contract, just verbally agreeing to do the work for someone who doesn’t wash windows but has an in with a few property managers from the work that they do. They would be taking 15% of course which I subtracted before looking at the numbers. I trust the guy to pay me so no issues with that. I would be paid net 30 at the longest, usually faster. I’ve worked with the guy in the past so I know he’s not messing around. He just doesn’t want to bother with it and would rather hire me to do it.
This almost seems like one of those things that is easier than things are ever. It bugs me and I keep thinking I’m not thinking of something that will make this not work and end up screwing me in the end. I have done work for a few guys in the past before starting a company that paid me up to 70% of the income while they worked full time jobs in a different industry and had a window cleaning company for some extra income but never cleaned a window themselves. It seemed to work for them so I was figuring it should work here as well.
Am I missing anything?