6 Reasons to Use Subcontractors vs Employees

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You can also get access to free resources on our website here: https://paintingbusinesspro.com/ Working with subcontractors will make running and building your business so much easier.

I was talking to someone the other day who said “is it because it costs less”.

It actually has nothing to do with costs - and it doesn’t cost less with money.

It costs less with time and effort.

Let’s look at a few of the benefits to utilizing subcontractors in your business instead of employees.

→ Commitment.

Employees are working a “job” and if they get a better offer, they might just leave… maybe even leave the industry or go work for another company.

Subcontractors literally run a business. This is their business, they’ve registered it, they have insurance, and are likely even employing other people.

That means less turnover, and less re-hiring and re-training.

→ Equipment

Subcontractors have their own equipment. If you hire employees, you need to provide them with equipment which means over $1,000 to buy the equipment for a new 2 man crew.

This saves you money, and saves you time maintaining and keeping track of your equipment.

→ Training

You need to train any new employees that come on your team to ensure they are delivering a quality product.

The agreement you have with a subcontractor is for them to deliver on the contract. They get paid when the job is done and the contract is fulfilled.

If the job isn’t done, is sloppy, or the customer isn’t happy… The job isn’t done yet.

Their pay is contingent on delivering a quality product.

This saves enormous time training, and delegates the training accountability to your subcontractors.

→ Obligation to Provide Work

If you have employees, they are counting on you for work. If you don’t have work for them this week, what are they going to do?

They're going to leave and go somewhere that provides them consistent work.

Subcontractors run a business and if you don’t have a job, they will get one somewhere else.

Ideally, you want to keep them busy (that’s how you keep the best crews), but you aren’t going to lose them FOR GOOD if you go a week without work.

This takes a huge organizational burden off of you as the business owner.

→ Ramping Up & Ramping Down

We are in a seasonal business. At our peak in the summer, Foothills Painting will have over 120 painters working on jobsites each day.

In the slow season, that might drop to 20-40 guys working daily.

If we were an all-employee business, we would have to turn down work in the summer (when it’s busy) or lay people off in the winter.

This creates a huge burden on a business, or limits growth potential.

Learn more about how to utilize subcontractors and build winning relationships and partnerships with great crews.

Check out the Subcontracting playlist we’ve created on YouTube:
   • Residential Subcontracting  

And remember, the best training material we have isn’t posted free on YouTube.

If you really want to master this business, check out the PBP Training Program:
https://paintingbusinesspro.com/pbp-t...