Your business success will be almost totally based on how good you are at generating and handling customer inquiries. That is your business. You have to remember that.
It is NOT house painting, it is not selling this or that, it is not coming out and installing this or fixing that
You business is handling and filling the customer’s needs?
You may have many businesses that serve many different needs and the work or installation or whatever gets farmed out and done by someone else.
You do not mark up your subcontractors prices and add your cut on. The rate to be charged the customer is at or under the local ongoing competitive rate,
You tell the contractor what you pay for his doing the work. You do not ask him for a price.
Here is what the contractor gets from you and what you do to earn your cut. You come up with a steady stream of business for them. (This is what you are good at)
You keep him working. He has to do no advertising or promotion etc.
He has no collection worries or waits.
You collect from the customer and he has no credit card problems, or bad checks, no not pays, billing expense and sits and waits for his money etc. You pay him almost instantly if he desires it.
If you do this right he may switch all of his work to you and let you handle his regular customer’s , in effect you handle all his office work problems and overhead that he gets from direct referred business and he can have you handle all that and he then is free to concentrate on just doing the job.
Do you do all this pay and collect work? yes or no, you can do it yourself, or subcontract it out to some superb person out of work and home able to do this for you at their convenience for a fraction of what they got paid having to go off to work to do it. How do you find them? Easy, craigslist. You can have a stack of applications in 12 hours.
They do not necessarily have to be in your town or even your country. They are a subcontractor, not an employee. They handle all this or whatever part you want to farm out, at a fixed cost per transaction.
If there is no business, they are paid nothing.
You pay them regularly, weekly for example, using PayPal or Xoom. You talk to them free with cell, or skype, no matter where they may be.
Email or Instant Messaging, all free.
Different businesses you will get a different cut of the transaction from a third to 15%.
The work or product has to be to the customer's satisfaction and customer pays you. If there is a dispute the subcontractor pays. (Customer is always right) If the customer is a no pay you are out. Not the contractor. We will show you how to avoid this.
Prices are very competitive these days and the price you quote have to be well under the big brick and mortar firms. (Those that have business store fronts etc.)
and the customer’s pay you whatever is determined a fair percentage for that type of business.
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