Decisions Decisions

[TDub]

So..a relatively large contractor that works throughout the state (who I once worked for for a couple years) has moved to a more strictly CMGC role where they dont have self performed work anymore.

However, they want to start self performing work again...but with a twist. Essentially they want to absorb my company and make it a subsidiary of their company that would allow them to subcontract to me to perform self performed work on both commercial jobs and residential jobs (a market previously not really open to them, but where I already have connections and literally 3 or 4 years of work accumulated). They would handle the insurance, licensing, bonding, payroll etc.....I would be able to hire about 15-20 more guys and hire a couple superintendent types to run jobs. So my job would be basically to run and oversee that whole division of the parent company.

Im torn. I really enjoy the autonomy of my own deal, nobody to answer to but myself, no schedule that I cant adjust...no responsibilities except to myself, my employees and my clients. All the profit...but also all of the risk...

How much would that change....I dont know....

On the other hand, it would take a lot of the risk off my plate, and open up some financial backing that would allow me to stack multiple jobs at a time and expand into a market that appears to have plenty of work available. Ive turned down multiple jobs in the last few months that I have no time to pursue.

My guess, is I would make more money faster (I think if I stay on my current path I can make good money...just going to take some time to grow to that point efficiently)...but I would lose some of what I have worked so dang hard to build the last few years.


I dunno.....need more information on all of it...but I have no clue which way to play this.

[TDub]

I also enjoy doing the work myself.....I would guess that portion of my job would diminish to nearly nothing....But I realize I cant do this work forever either. I'm working on becoming a skilled trim and finish guy....thats how you make it to old age in this industry.


Also, I would immediately get incredibly improved health care and retirement options. At the cost of probably less time and flexibility for the family.

ugh.

[TDub]

I guess I should add they are testing this approach in my section of the state only for now if I were to agree so I wouldn't be traveling around the state....otherwise I'd flat out tell them to kick rocks. I'm done traveling for work. I got enough work here on my own I dont nees to chase it in other counties

[TDub]

One last thing to add....I think Ill.be fine either way. But, normally I have a pretty good idea what to do and I'm fairly confident in my decisions....this one I'm not really sure where to go with it. I can make either one seem like the definite right answer in my mind.

[jfish26]

This won't be that helpful, but...all you can do, is get all of the best information you can get, and whatever decision you make, you free yourself from second-guessing. Do the best you can with what you have, and you're making the right decision, even if it ends up being the wrong result.

I don't know enough about the specifics here to say anything more intelligent than that, but my first question would be, how hard would it be to get what you have back, if you try the other way and it doesn't work?

[Sparko]

Having spent 40-years at the whims of others, I would opt to stay my own company. This sounds like someone wants a cut of your profits with the freedom to string you along while absorbing your core business. One thing time has taught me is that humanity is a collection of cutthroats.
You have the ability to do things too, subcontract duties from your business yourself if needed. The labor market isn't great and you could grow quickly with three-stooges extras.
I like that you can control your own destiny.

My caveat here is if they offer you a high price unconnected to future returns that you could bank and walk away with.

[TDub]

This won't be that helpful, but...all you can do, is get all of the best information you can get, and whatever decision you make, you free yourself from second-guessing. Do the best you can with what you have, and you're making the right decision, even if it ends up being the wrong result.

I don't know enough about the specifics here to say anything more intelligent than that, but my first question would be, how hard would it be to get what you have back, if you try the other way and it doesn't work?

I mean, I could restart a business without too terribly much effort....other than waiting for the bearucracy to do its thing.

the bigger issue wouldbe, I think, this market isn't huge...if I did this and then went back out on my own, I'd be ssentially cutting into my own available job supply.

[TDub]

Having spent 40-years at the whims of others, I would opt to stay my own company. This sounds like someone wants a cut of your profits with the freedom to string you along while absorbing your core business. One thing time has taught me is that humanity is a collection of cutthroats.
You have the ability to do things too, subcontract duties from your business yourself if needed. The labor market isn't great and you could grow quickly with three-stooges extras.
I like that you can control your own destiny.

My caveat here is if they offer you a high price unconnected to future returns that you could bank and walk away with.

the ability to do whatever the hell i want has been freeing on a level ive not experienced in any other situation. But, it doesn't come without an abundance of stress. there are pros and cons for each, if I did it I would need some ironclad language in the proposal that would ensure a similar level of personal amd professional freedoms.

[Sparko]

I think you need to look at the stress parts and deal with them--cultivate your replacement and take more time away. If the business can't survive without you, you need to invest more in the right staff. I am trying to do this right now so I can have a post-work life. But the stress only increases with managers of your output and time.