Start Up Paying Staff

[swinny]

No ones asked the guy to make sure he has employers liability insurance.

[Ian C]

30days are pretty standard for commercial work and I don't mind that but 60 or 90 are no good.

[hamdogg]

  IC TREES said:

30days are pretty standard for commercial work and I don't mind that but 60 or 90 are no good.

 

 

Yeah 30 days is fine IMO but this 60 - 90 days is what's makes it hard for small business's

[Marc Lewis]

  swinny said:

No ones asked the guy to make sure he has employers liability insurance.

 

Whats that got to do with it?

[swinny]

  Marc Lewis said:

Whats that got to do with it?

 

He may be new to this, and if he's trying to work out how to find funds to pay the guys it may have slipped his mind about insurance for them also. Just a helper for him

 

 

Btw 2 + 2 is 4 in my book pal.

[Marc Lewis]

  swinny said:

He may be new to this, and if he's trying to work out how to find funds to pay the guys it may have slipped his mind about insurance for them also. Just a helper for him

 

 

Btw 2 + 2 is 4 in my book pal.

 

Fair do's

[kongtrees]

In my opinion its a risky strategy relying on invoices to pay staff. Im owed thousands by companies that have 30 day accounts that turn into 60 day, 90 day etc etc. Try a start up loan.

[daveatdave]

to get back to the original question you have to pay staff weekly / monthly, employers liability insurance is required, 13% employers NI to pay on there gross wages , holiday and bank holiday sick pay. protective clothing to supply, overtime if the job runs over start and finish in the yard. plus the paper work that takes time /cost

[steve@crown]

Its hard the first time with a big job....but pay your guy's on time...if you want to keep them! I have a contract set up...you really need to invest in this...it will save you later...however great you think your guys are...trust me!!!

 

I pay monthly by the 4th of each month. Try to get small jobs in here and there to help with cashflow...and ask for some money up front...they won't be shocked and set up a payment plan through the job...standard practice in most cases....

[theflyingscotsman]

I tend to ask for a 'weekly drop' from clients for a few reasons.

 

1. You can pay the guys at the end of the week

2. You aren't getting into a hole yourself and waiting months to be paid (large organisations can take 2 months to cough up these days)

3. Safety net, if you ask for the money on the first Friday morning of the job both you and the client has a ideal time to comment on how your work is going, for you- if the jobs not going well issues with either work or pricing - you can re negotiate if needed. As can the client.

 

As a start up you shouldn't need to borrow wages: that's what your working for. No sense business wise putting yourself in that hole. If it's a 4 week job you can't afford not to be paid if your employing people.

 

Like wise if you need 25 staff at 50-60 per day to complete the job in front of you-- if suggest walking before you can run and start smaller.

 

You likely haven't the info structure to support them.

 

Years ago I used my closest chums and family members to start up.

 

Good luck, a weekly drop is the only way forward- no employer should question it either as it shows your not a mug and won't work for nothing.