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Old 03-27-2017, 07:22 PM   #1
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What can/should I expect (ohio) for insurance on a one or two man company. ( approximate cost.. Non commercial to start.....) Just trying to get an idea before talking with a provider. Any help is appreciated!
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Old 03-27-2017, 09:49 PM   #2
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What can/should I expect (ohio) for insurance on a one or two man company. ( approximate cost.. Non commercial to start.....) Just trying to get an idea before talking with a provider. Any help is appreciated!
That's gonna vary by location and type of insurance and numerous other factors. Call several agents and shop the prices.
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Old 03-28-2017, 05:57 AM   #3
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From $500-$$$$. It varies from state to state but from what I've seen $500 minimum.
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Old 03-28-2017, 10:13 PM   #4
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I think you could safely budget $100 per month for commercial liability. It may be less, especially with only one person. That's where I'm at with 2 full-time currently. Commercial auto is cheaper than regular here, so I wouldn't budget too much more than you are paying for normal auto.

Comp is the bigger bite. I'm at 18% of payroll, so you'll need to check that before diving. All of this varies considerably state to state, but we are regional neighbors, so this info might have some value.

*actually, I seem to be at $120/mo for comm liab. They base it on gross sales and employees (Erie)

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Old 03-28-2017, 10:33 PM   #5
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If you pay an employee $20/hr, you'd be looking at a comp cost of $600/mo + the $120 for commercial liability+the $100 or so for commercial auto on one newer vehicle.

That gets us to $820/mo + the employer share of taxes (maybe $230, give or take)...

So, I'd budget $1,050 for indirect, gov mandated, costs of business, but there are many other ones involved as well. You've got your state and local licenses, B&O taxes in every podunk municipality you may pick up a brush, various state and local sales taxes, municipal user fees, state unemployment , et al.

Lest we forget, you also have to cover the $20/hr 40/wk payroll, so you need to be producing another $3,200/mo to cover that. You might want to get paid as well, so you'll need another $5,000 to come close to what you pay your own employee, at the bottom minimum.

You need, at bear minimum, to be netting (not grossing) $10k/mo to run a poor two-man show.
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Last edited by ParamountPaint; 03-28-2017 at 10:38 PM..
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Old 04-09-2017, 02:50 AM   #6
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Poor two man show? Sound like my boss/another old cooki that discourages a newb to go on their own. Who in their right mind would start a business if these details were so? I don't doubt some of this to be true, but where in the world besides a factory or travel company would someone pay another "laborer" $20/hr Get that crap outta here....Now while I don't know a whole lot about that, I know this is bull.......otherwise every small business in town would be non existent. Thanks though, hopefully in a few yrs it's not a told ya so deal haa have a good one
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Old 04-09-2017, 02:51 AM   #7
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So what's it take to run a poor one man show?
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Old 04-09-2017, 02:53 AM   #8
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Thanks everyone for the feedback
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Old 04-09-2017, 07:15 AM   #9
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Poor two man show? Sound like my boss/another old cooki that discourages a newb to go on their own. Who in their right mind would start a business if these details were so? I don't doubt some of this to be true, but where in the world besides a factory or travel company would someone pay another "laborer" $20/hr Get that crap outta here....Now while I don't know a whole lot about that, I know this is bull.......otherwise every small business in town would be non existent. Thanks though, hopefully in a few yrs it's not a told ya so deal haa have a good one
To be a legit business ParamountPaint is right with the numbers again to be legit it costs a small fortune. You can run the business illegally and make more money but then the ones of us who do play by the rules get very upset as costs for us go up because of non legit businesses.

$20 an hour for a good painter is actually right on or a but low. Our bottom person was making $15, top guy was at $30 and all on payroll.

Liability insurance
Workers comp
Bonding (If needed)
Payroll
Vehicle 1
Vehicle 2
Trailers
Office/shop
Accountant
materials
I'm sure I'm missing a few of the must charge for monthly.

Add all this up and yes $10k a month for a 2 person operation is very realistic.
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Old 04-09-2017, 12:17 PM   #10
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but where in the world besides a factory or travel company would someone pay another "laborer" $20/hr
Check out prevailing wage rates and try to figure out why the laborer pushing a wheelbarrow makes more money than the painter. In Oregon, it's nearly a 3$/hr gap on those jobs.
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Old 04-09-2017, 02:07 PM   #11
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Check out prevailing wage rates and try to figure out why the laborer pushing a wheelbarrow makes more money than the painter. In Oregon, it's nearly a 3$/hr gap on those jobs.
Hey! I've got a wheelbarrow! Hmmmm. I'm gonna be rich!
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Old 04-22-2017, 08:45 PM   #12
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Poor two man show? Sound like my boss/another old cooki that discourages a newb to go on their own. Who in their right mind would start a business if these details were so? I don't doubt some of this to be true, but where in the world besides a factory or travel company would someone pay another "laborer" $20/hr Get that crap outta here....Now while I don't know a whole lot about that, I know this is bull.......otherwise every small business in town would be non existent. Thanks though, hopefully in a few yrs it's not a told ya so deal haa have a good one


10k a month averages out to about $2300 a week. That's 1 exterior or 1-2 interiors. It's not quite as bad as it sounds. The problem is getting enough work to make it and making sure that your 2-person team can finish the work that quickly.
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Old 04-23-2017, 01:25 PM   #13
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It's not very difficult to hit the $10k or more. It is slightly more difficult to hit it year round.

While my numbers were not agreeable to the OP, that was a pretty decent list that he will soon find to be resonably accurate. Frankly, it was by no means inclusive. You still have capital costs of vehicles and equipment in addition to profit for the company and a slew of other overhead items to cover: advertising and marketing, internet, phone services, professional fees (laywers, accountants, etc).

As regards $20/hr, I would be interested to hear what a fair wage would be for someone who knows what they are doing. $20 is OK in my rural area, but I'm sure it takes more in higher cost areas. Sheetz convenience stores hire clerks starting at $15, so it seems to be difficult to find someone who wants to do manual labor for any less than clerk wages. $15 is a fair starting point for a new hire, I feel.
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Old 04-23-2017, 02:15 PM   #14
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I wrote up a spreadsheet and did a little research and it would be more like 12k... not including advertising, physical office with staff, or fees. But that does include 80% single person medical premium reimbursement with a gold plan, a new company vehicle and major tools (sprayer, pressure washer, etc) every 5 years, ladders every 10, and various other hand tools/brushes every 3 months. Probably missing a lot still.
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Old 05-02-2017, 09:15 PM   #15
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Poor two man show? Sound like my boss/another old cooki that discourages a newb to go on their own. Who in their right mind would start a business if these details were so? I don't doubt some of this to be true, but where in the world besides a factory or travel company would someone pay another "laborer" $20/hr Get that crap outta here....Now while I don't know a whole lot about that, I know this is bull.......otherwise every small business in town would be non existent. Thanks though, hopefully in a few yrs it's not a told ya so deal haa have a good one
In MN you get 20 if u can fog a mirror.

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Old 05-02-2017, 10:27 PM   #16
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Check out prevailing wage rates and try to figure out why the laborer pushing a wheelbarrow makes more money than the painter. In Oregon, it's nearly a 3$/hr gap on those jobs.
Pushing the wheelbarrow is harder, and has fewer applicants. Supply and command.

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Old 05-02-2017, 10:37 PM   #17
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At 20$/hr, you're looking at paying someone a salary of $40,000/yr. If that employee has a family to support, they may well still receive government subsidies.

To find the best people, you'll need to pay like it. $20 is OK for my area, but I am looking at overall moving the wage scale up. Happy wife, happy life (insert employee for wife).

No reason customers should not pay for it. Painting is a luxury service. If you don't like the price, paint it yourself. Painting emergencies are non-existent.

I also want to add that I'm 36 years old and have been a self-employed business owner for 12 yrs (I think...time does fly). I haven't been at it as long as many on here, but I've been around the block a few times.

Last edited by ParamountPaint; 05-02-2017 at 10:44 PM.. Reason: add
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