Page 159 - Paulisms: Gold Nuggets for Small Business

The other day I was talking to an electrician doing some work for us in Christchurch. He was contracting some of his work out. He had realised that it was costing $35 per hour plus add-ons to employ a sparky – his true cost. He was employing a contractor all-inclusive for $45 – he had his own vehicle, tools, ACC, etc. He was invoicing him out at $75 per hour with no down time. He could easily scale up with other contractors. This is a good example of a smart way of ‘people working for you’.
There are other parts of your business that you can contract out. Think about your in-house administration – your books, etc. Contracting out allows more time to work on the business for more sales and profit. Why do it yourself when you can pay someone $20/hour and you can make $80–$100/hour on the side. You probably hate those jobs anyway. Please