Thread: Slowlane Business Proposition?

The owner of the work agency where I get my jobs from has often hinted to me in the past that whenever I want to set my own building company up he will help me. That was also my plan in the past to set up a building company.

He is a good person and has helped me to climb the ladder (perhaps faster than otherwise possible) in my trade, because of his influence.

So, after following on from a discussion with him last January in which he told me that his 'project' for 2012 is to create a plasterboarding and small construction works business. He told me he wants me to manage it!! I will get benefits of profit and he will do the investment. However.

From working in many construction companies I regularly see the owners putting in 60 hr + work weeks for a pay not much more than I earn now. Which is $3.5K per month for a 37 hour work week. Some, who have about 50+ employees earn considerably more but they are always there in the office from 6 in the morning till 7 at night!!!

So, the other day he invited me over to his house . We were discussing projects. His and mine. Interestingly he revealed to me that his work agencies, comprised of 16 outlets, that have between them have about 2000 workers on their books, makes a turnover of 50,000,000 Euros which is the equivilant of $65,000,000 makes a net profit of 500,000 Euros.

I just said to him, 'thats crap!!'

Interestingly enough he said 'I know' lol

Okay, so who am I to complain about his business model when he is making way more than I am. But when you look at it like this. 16 outlets. Staff. Hours. People. Wages. Problems. Phone Ringing Constantly. Threat of bad weather meaning people can't work, but you still have to pay some of them. Competition with other work agencies. Having to stay on top of everything all the time. etc etc. problems problems.

After all that, they are making zero point ten % net profit. 0.10% profit!! That is all they ever make, that is their business model, he told me himself at best they make 0.12%. Surely that is a crap business model!!??

Anyway, back to my original post.

I have a proposition now to go into business with him. He told me that he does not have time to run his work agencies plus another business plus create and run the building company therefore he needs me.

What do I do?

I got my own online projects now. If I run with him, I'm worried I might not have the time to deal with my own affairs but at the same time I don't want to let him down and I find it difficult to say no sometimes.

What would you do? Take up the offer of running a slowlane business requiring much hours and commitment. Or, continue my simple life working small hours in the week but giving me a small but steady income but allowing me more evening time to concentrate on my online efforts?

Sorry if I waffled a bit there but I am about to enter into another crossroads and I need some advice that can perhaps steer my destiny.

Are there manpower loading software packages available that the company is not taking advantage of?

The next meeting I have with him I will ask him about this

It can be a nightmare having all different trades trying to work in the same project at the same time and trying to coordinate that with material supplies. You're at the mercy of the weather, so you'll have inherent inefficiencies due to that, not sure what can be done other than either working in the rain or erecting protection to allow work to continue regardless.

I have thought about this before and infact. I have heard that in one counrty, perhaps it was germany, they have these massive domes that can be errected over the entire building site!!

There may be some efficiency gained by automating the back office, although I doubt admin accounts for much overhead.

In one branch that earns 18000 euros per month there is 3 girls on full time employment and a couple of others on half time that costs approx 12000 every month

Is he spending too much money on credit lines? Can cash flow be restructured so that he doesn't need to borrow money?

He told me that this is one of the biggest difficulties of starting a work agency. You have to wait 60 to 70 days to get your money from the client. But you have to pay your workers, at the end of 30 days!! With regards to borrowing money I do not know


Is there a problem with doubtful debtors? Late payers?

This is his number one problem. Clients going bust!! Last year he told me he dropped 100,000 Euros from one client alone. They closed down, liquidated and he didn't get paid!!! How can you get arround that???