DH career change

[purplemush]

DH is a builder with own small company. He works incredibly hard. Day and evening doing the actual work, admin, quoting , sourcing materials, paying suppliers, managing customers, managing the project, managing the guys who work for him etc. he has worked with a huge range from door hanging, bespoke furniture, kitchens replacement to main contractor on 8 new build houses. I'd say the admin isn't his strong point, takes him longer than it would take me.

I am sick of it. He works so so much and is a strain where it affects me. He had a customer text him at 3 am last week about windows in her extension! Been like this for years but since he has gone limited it has got worse. Takes up all his time, v.stressed. I honestly don't know anyone with a stronger work ethic and the last 12 months I have realised he has taken home 18k! Whilst his subcontractors getting 40k for turning up and going home.

I am at my wits end, and it's destroying DH soul although he keeps going (I don't know how). Obviously this is impacting us financially as I am picking up all the Financial burden and has heavily impacted my own finances now.

So question: he is 35.. he needs to change his career somehow but building is all he knows really. His work ethic is so strong I'm just thinking there has to be something for him out there that isn't this!

Any ideas where he can utilise his skills and have a better work life balance and at least some money in his pocket? We can't go on like this. I'm thinking rail network infrastructure, project management, new build projects for someone else? He has never interviewed in his life.

I honestly believe if he got a position somewhere he would work so hard to ensure he gets the best outcome but he just needs the chance.

I am not sure he has charged incorrectly. I think it's a combination of things. He is spread far thin pricing, quoting, managing customers who are quite frankly annoying (change scope, want everything priced then change their minds) and pricing takes DH far too long. Workers that are useless and don't have common sense is another issue on site.

He needs to move away from running a company as it clearly doesn't work for him

Site managers tend to have a load of extra qualifications, such as NEBOSH (health & safety) etc. which take time and money to get, plus a track record in site management, a lot were never trades, always managers, surveyors etc..

Yep I hear your point. Maybe he needs to go back to some trading again. I'd rather DH just go work for someone else, less hassle.

@purplemush does he want to change, or are you looking for a new role for him because you're unhappy? If any change doesn't come from him, he might resent it.

@Livinghappy(sorry, accidentally clicked your name when writing my post and can't delete it!)

Instead of employing subcontractors taking home 40K to his 18K, wouldn't he be better off employing an office manager/admin assistant to do the paperwork and he does the actual labour? He/she could manage his diary and handle enquiries so he isn't spread too thin.

I'll take a look at this thanks

He needs to take a business course and learn how to run his business properly.

I used to do full house re-wires, wiring on new builds, extension etc. No good money in any of that, lots of Pfaff with quotes, customer changes, hanging around for other trades.

I now only do small jobs and repairs and earn far more - most people don't want a quote, just job done, which saves admin time and jobs are completed, invoiced and paid quickly.

Perhaps your DH can alter his model to small works and maintenance, no staff to hire, fly under the VAT threshold and save accounting fees that way, get accounts done properly etc..

Over the years I have done my share for free. I'm at a point where I can't support it anymore as I am tired of it and have my own career to look after.
I'm looking for alternative suggestion's I can put forward to him and help research

Does he want to do something different?

If his contractors make more than him then he's not charging enough. It is better to charge more, with bigger margin, and have fewer jobs than to do dozens of jobs for the same end result. If he is a quality builder that model will work and he'll get word of mouth referrals.

Less jobs means less of every admin task.

Yes something needs to change for sure. Think he will need to go back to being sole trader.

CIS & VaT is another element that takes up too much time instead of time on the business.

He could either do smaller simpler jobs with no employees, charge more and do fewer of them, which would reduce his workload or go and work for someone else.

As an example, what is the cost of his business before his wage, including his contractor costs?

Say it costs him 200k a year for his work load. If he wants a 100k salary, then the jobs have 50% markup.

If it costs 400k, for a 100k salary, it's a 25% markup after the job is costed.

And so on and so forth

I'm not saying you should do it for free. I'm saying he should EMPLOY someone. An office assistant won't expect to earn 40K a year like his subcontractors are!

A lot of self employed people struggle to go back to being an employee and answering to a boss

he can utilise his skills got all the equipment but without the hassle of dealing with employees

Going back to sole trader cuts out both as we don't do CIS or VAT, A lot of sole traders I know get customers to pay direct for materials, a great kitchen fitter I work for gets the customer to pay Howdens for the kitchen, this means he doesn't have to have cash tied up and can be under VAT whilst making a good profit and the customers pay the trade price, win win.

I should say we don't have to do CIS (if working directly for the customer) or VAT if we fall below the VAT threshold, otherwise of course you have to.

My ex owns a building firm. Few things....firstly he needs admin support, hes a builder that's how he makes money not shuffling the paperwork. Secondly, there's a point with small firms where you're just working to pay the men's wages and it's gets stressful when the next project isnt lined up on time and these guys need to pay their mortgage. At that point you either grow to scale up or cut down size. £18k income per annum - his pricing is well out. Have a word with his accountant or get an accountant if he hasn't already. He got the know how it's just how he's applying it.

I have seen this so many times, Tradies who are really skilled but can't run a business.
He needs to look at that side of things, a decent SME Advisor should be able to help. Sometimes a local council can offer it for free or it might be worth investing a bit of money in but don't go to some sort of life coach with no real business experience or he will just waste his money. If he has a decent Accountant they should be able to help/point him in the right direction.
Feel free to PM me if you like.

He could work full time in B&Q for more money FGS.

Yes I think you got the nail on the head. I think the sizing is troublesome. Too small where the outlay is high enough with not enough staff which warrants the expenses such e.g insurances, accountancy fees, tools, vehicles etc.

This is what I was going to suggest. He also needs to re-think his costings as clearly he isn’t including in his time at a reasonable rate. Finally, WRT customers - separate work phone/email and be clear he is not available between 18:00 and 08:00.

Has he thought about a degree apprenticeship for a career pivot? Civil engineering? Earn, & learn for free.

Freelance Project Manager (eg extensions/renovations that people try to do themselves)
Retrain to be a Buildings Inspector
Handyman or small building works, companies round here charge a fortune