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question: i’m planning to open a home, church and etc…. maintenance that deals with repairs and i will be a contractor. is this a good business to get into and how much a year i will make after taxes. what do i need to open a business like this. the plan is to charge a yearly fee or monthly fee to maintenace there home, does includes landscape.
do anybody have a idea what i’m missing and how do i do this and what do i need to get going and how much will this business cost ti start. scence i’m self employed, what type of insurance do i need fro my family. please write back.

3 Thoughts on business home maintenance contractor?
  1. Reply
    Clive L
    July 22, 2011 at 7:34 am

    From what information you have given my advice to you is either forget the whole venture and save yourself and your family much stress and anxiety, OR, firstly spend a lot more time making a plan of what you intend doing and carefully investigating the processes and costs involved. Starting a business, is a serious matter and mistakes can be very costly. Only by carrying out a feasibility study will you be able to determine whether this is a viable proposition. As with any new business venture you will need available funds to cover at least six to nine months of out goings as a minimum, before you are likely to be earning any suitable levels of revenue. Most businesses will operate at a loss for many months. It is not usual for the break even point to be reached very soon in the startup stage. The cash flow break even point is when sales revenue equals total cash flows out of the business. It takes that long to get reasonably well established. Historically, of all the new businesses started at any one time, 20 to 40 per cent fail in the first year, by the end of the third year somewhere between 50 and 66 per cent have failed, by the end of the fifth year between 50 and 75 per cent have failed. Fewer than 20 per cent survive for more than ten years. The reason most businesses will fail in the first two years is because of insufficient cash flow into the business to cover the cash flows out of the enterprise.
    If you seriously wish to embark upon a plan of providing regular maintenance on a property you need to firstly itemise the types of maintenance you intend providing, i.e. painting of all external and internal walls, repairing of guttering, mowing of lawns, pruning of trees and shrubs, removal of all rubbish from the site, etc. etc. Then you need to thoroughly inspect the property and establish what firstly needs to be done immediately to get the property up to the standard to which you intend keeping it. You need to quote the owners a price to do this work now and that once this is completed and paid for, your yearly charge to maintain it at that level will be $ XXXXX.XX per month or per annum.
    What are your fixed costs likely to be running a business like this? Fixed costs are the costs regardless of any sales being made. Registration and insurance costs of your motor vehicle are a fixed cost, together with all the various business and other insurances you should carry. If you rent premises this is a fixed expense, also your telephone rental or service charge and electricity. A most important insurance you need is to cover sickness and accident, as you will be self employed. I assume you already carry sufficient life insurance on your life which should be owned and paid for by your wife. The amount of this insurance should be a sum sufficient, so in the event of you dying tomorrow, that when invested at say 5% per annum will provide the income that your wife and family will need to live on at their present standard of living. If this income needed was say $ 50,000.00 per year you should have your life insured for $ 1,000,000.00 right now. When you start your business, you should have sickness and accident insurance that will provide you with at least $ 1000.00 per week if you are unable to work. However if your fixed out goings per week in the business are say $ 200.00 per week then you will need cover for $ 1200.00 pw under the policy should you fall ill. Most people going into business for the first time fail to have adequate insurance protection- they do so at great peril to themselves and their families.
    One other matter to consider – are you willing to spend the long hours your new venture will demand. Will your family support you in this venture and accept that you will not be able to spend as much time with them as you previously did?

    This may all sound very negative – but going into business is not just a matter of having an idea and waving a magic wand for the money to start pouring in. On the contrary, as soon as you start a business money starts flowing out at a considerable rate before any starts flowing in. You need to have established just how much will be needed in those early months of the enterprise and have the funds available. This way you can concentrate on building up the business and not worrying about where to find the money to pay the next bill.

  2. Reply
    jackiniraq
    July 22, 2011 at 8:04 am

    First you have to ask yourself what kind of business person you want to be? There are only two types of business people in the world. Those who do a business, and those who ‘fund’ a business. The ones who fund a business have plenty of money to mantain their lifestyle and pay all of the expensess of a business. The second type are the ones’ who ask questions like yours. They are concerned with all the legal ‘whats’ and ‘whys’. Like “…will this be a good business and how much a year will I make after expenses/taxes (If you dont have a butt load of money, you really arent this person.)
    The first type, the business person that does a business never really considers business details. They started mowing the next door neighbors’ yard after school, then they started mowing someone else’s yard, then on saturday morning they were mowing two or three yards before they went to their ‘real’ job at starbucks, and they were working in one or two yards on their way to the library. And then one day they woke up and realized they mowed so many yards they didnt need to work at starbucks anymore.
    And then one day they were hanging out on Y!A and they read a question “What kind of business license or registration do I need to start a lawn mowing business and how much money will I make?” And they just kinda giggle a little bit, then go over to the ‘dating and romance questions’ where they can give answers that really help people.

    Two types of business people. 1) People who just do something they know and keep doing it until it’s a business. and 2) Those who have plenty of money and pay to have a successful business. Which type of business person are you?

  3. Reply
    joy frosh
    July 22, 2011 at 8:52 am

    Thanks, I am also think about this issue

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