I am a licensed plumbing contractor. Lately, cash flow has been such a grind that I'm thinking of giving it up, or maybe just doing it part time. I'm going to be talking to a local plumbing contractor who is pretty successful today, to see if he wants me as a foreman, and if he can pay me what I need.
Two general contractors promised me money this week, and both flaked. Now I'm going to be late on payroll and some bills. I can't live like this, and paying my guys late, even a couple of days, really bugs me.
I've heard that business often fail because of under-capitalization. Well, that's where I am, and maybe I don't deserve to be in business, at least not full time. If I get a job doing commercial work (what I'm looking for), I'll most likely work from 6:30-3:00 or so, leaving some time to manage other projects. I also would do work that won't directly compete with my employer.
I'm not insolvent, I've billed plenty of money that will eventually get here. But I can't take the uncertainty. All of these general contractors want me to be reliable and Johnny-on-the-spot. I can do that, but they have to hold up their end. They're not doing it.
I've been in this trade for nearly 30 years, and I know it inside and out. But I didn't know it would be so painful, physically and mentally, to try to operate a business.
Thinking about getting a job
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MolaKule
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I would recommend developing contracts with some kind of language that clearly states bills shall be paid by a certain date or time frame, with penalties for late payments.
I hear ya man, but no one said being in a business by yourself would be easy.
Hang in there! 
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I hear ya. I've been there done that lots of times over the past 35 years. Getting paid can be a real hassle, and keeping work flowing during lean times can be very hard. If I were you and I was looking for a job I'd try and get in with a large corp, not a mom and pop shop that's doing well now. Odds are at some point they're going to have the same problems you are experiencing, and you'll be one of the first guys to go. Good luck!!
I'll get raked over the coals for saying this, BUT, try and get a job with a government agency as a head plumbing guy. You'll likely make more money than any corporation or mom and pop, the benefits will be outstanding etc.
Originally Posted By: Drew99GT
I'll get raked over the coals for saying this, BUT, try and get a job with a government agency as a head plumbing guy. You'll likely make more money than any corporation or mom and pop, the benefits will be outstanding etc.
Can you stick a lien on the properties you worked on? That ought to ruffle some feathers and get the ball rolling.
My FIL subs for a GC and the GC has a kid in college, so he flakes on his other bills.
IMO the kid should get loans and let dad pay them six months to ten years later.
Originally Posted By: eljefino
Can you stick a lien on the properties you worked on? That ought to ruffle some feathers and get the ball rolling.
My FIL subs for a GC and the GC has a kid in college, so he flakes on his other bills.
IMO the kid should get loans and let dad pay them six months to ten years later.
just my idea. you could be an independent adviser payed per job. you knowledge IS priceless.
Originally Posted By: Drew99GT
I'll get raked over the coals for saying this, BUT, try and get a job with a government agency as a head plumbing guy. You'll likely make more money than any corporation or mom and pop, the benefits will be outstanding etc.
It happens, that's how I get my contractors to work for me instead of other people, I cut checks fast.
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I agree with Drew...
But what does your wife say about the situation ???
what you need to do is better manage you cash flow. if you can, fire the late payers. keep the good ones and take care of them and try adding to them.
All your money is in others hands. You are not a bank, and if they need money they can get a loan.
All this sounds harsh, but you have to do it to keep solvent. If you need to take legal action to get your money then that how it is. Many times when i have "fired" a customer, they will come back with money in hand. in most fields word gets around on who is good or not.
Originally Posted By: MolaKule
I would recommend developing contracts with some kind of language that clearly states bills shall be paid by a certain date or time frame, with penalties for late payments.
I hear ya man, but no one said being in a business by yourself would be easy.
Hang in there!
The construction business is tough, doing the work is easy collecting money is the hard part. I recall years ago on the job a GC telling the subs they couldn't start till after the Lien Waivers are signed!
Originally Posted By: hattaresguy
It happens, that's how I get my contractors to work for me instead of other people, I cut checks fast.
Originally Posted By: fdcg27
Originally Posted By: MolaKule
I would recommend developing contracts with some kind of language that clearly states bills shall be paid by a certain date or time frame, with penalties for late payments.
I hear ya man, but no one said being in a business by yourself would be easy.
Hang in there!
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i know that you cant get blood out of a turnip but you need to make your employees paychecks top priority. theres no excuse to pay them late. your opening your self up for a lawsuit there. plus they have bills that need to be paid too.
Originally Posted By: Drew99GT
I'll get raked over the coals for saying this, BUT, try and get a job with a government agency as a head plumbing guy. You'll likely make more money than any corporation or mom and pop, the benefits will be outstanding etc.
Originally Posted By: Chris142
i know that you cant get blood out of a turnip but you need to make your employees paychecks top priority. theres no excuse to pay them late. your opening your self up for a lawsuit there. plus they have bills that need to be paid too.
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2% 10, Net 30.
There is nothing easy about owning your own business. Not only are you responsible for your own family, but also the families of your employees. That is a responsibility that can weigh heavily on you.
One of the incentives that I've always used is 2% 10, net 30. If the invoice is paid within 10 days there is a 2% discount. Between 11 and 30 days the net invoice is due. It gives what can be a significant discount to those who pay their invoices within 10 days.
Not only is there nothing easy about owning your own business, but there is no career more rewarding than owning and building your own business. Your failures are your own, and your success is all your own; there will be plenty of both. You learn from your failures, and profit from your success. Your future rests entirely on your shoulders.
I suppose if one would be content collecting a government paycheck every week that may be good advice. I personally couldn't stand being a government paid lackey. But for those who don't have the confidence to take charge of their own lives it may be a good compromise.
Originally Posted By: Drew99GT
I'll get raked over the coals for saying this, BUT, try and get a job with a government agency as a head plumbing guy. You'll likely make more money than any corporation or mom and pop, the benefits will be outstanding etc.
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