The world of media advertising is over flowing, full to the brim and beyond with car adds and a good deal of them are for vans and Utes. One of the main groups targeted are the humble tradie and for a very good reason you need them, you buy them and for some you’re obsessed with them. Sorry car sales people but I’m going to say “NOooooo DON’T DO IT” not to everybody but definably a certain group. Let me explain myself.
Seven weeks ago I met a young man, 25 years old, living with his girlfriend, renting a small house, working for a decent builder, earning a reasonable wage for a tradesmen, and driving a Subaru Legacy station wagon (GT model no less). All sounds familiar and very cosy. A couple of days later the boss called a staff meeting, “you’re all laid off I don’t want to employ people anymore I am only going to use contractors from now on” so off they all went.
Now hold your horses a moment, don’t anybody go out and use the line above, you can do what the boss done and it’s legit but to do it properly there’s 3 or 4 pages that need saying not a one liner. Now we have cleared that up just before the lads left the boss said “if anybody wants to be a contractor come and have a chat”.
That was all seven weeks ago, three days ago I come across the same young man. Still with his girl, in the same house but now a business owner. The proud owner of Young Man’s Construction Ltd, okay I made that bit up as I can’t remember what he called it. He went to have a chat with the boss, got offered a huge contract $300,000, employed two of his mates who were also laid off and he was on his way to making millions. Then he done something else, something very familiar and not very cosy. Gone is the trusty Subaru Legacy station wagon (GT model no less) that has carried his tools for the past 5 years and has a tow bar for a trailer and “hello” he jumps out of a 2015 Ford Ranger, wheels big and black, a snorkel (why), the ugly angry mesh front and cream leather seats, really, cream leather for a builder!!!! But it wasn’t the GT model, thankfully. Is there a GT model? On top of all this actually behind it was a rather large twin axel very shiny trailer filled with nearly shiny tools. We are talking upwards of $70,000.
So what the shout goes out. I will tell you so what. He spent nearly 25% of the contract price in the first week. Who makes 25% profit on a construction job these days anyway? Who spends the profit before its earnt? Way too many people. Okay so he didn’t actually spend the money up front he ticked it all up on the never never, If he actually worked it out first he may of thought twice about it. (Yeah rite!) He had to work for two days a week just to make the repayments.
Back to the beginning the reason I say no to new business owners is get established first, make sure the work is sustainable and the list goes on and on. You may think its common sense and of course it is but that big shiny, just sign on the bottom line sir, flash as ute makes you feel and look like a real business owner.