PMWITHQUESTIONS
New Member
I am a PM with a general contractor. I am looking to start my own business and looking at 2 options.
Option 1. Go out on my own as a general contractor or subcontractor. I have approximately 30k in the bank.
Option 2. My boss has indicated he would like to start a subsidiary to our GC company as a site work company. We have discussed that I would run the company as an estimator and PM. I have little site work takeoff experience other than gathering numbers from our site contractors. My boss has offered to put up around 200K in order to purchase a mini, a skid steer, trailer and dump truck. We have not negotiated my stake in the business, but in my mind I would like to shoot for 51% ownership since he neither has the time or interest to be involved in any of the day to day operations. While this is obviously putting a lot trust in me, I now typically run 1-3 jobs at a time ranging from 1-3 million in value. We have discussed hiring an operator and a couple laborers, with the experienced operator having the capability to help me with bidding until I have a good handle on it. Our company puts around 20 million dollars worth of work in place a year so there would be opportunity to do our own site work as well as bid out to other GC's. My idea is come to an agreement that I would take a salary and my portion of any profit in the business would go into paying back half of the 200-250k in capital that he initially invests plus interest.
There is a lot of construction going on in our area right now and I feel like there is a good chance of success whether I go this route or make a clean break and go on my own.
Any advice?
Option 1. Go out on my own as a general contractor or subcontractor. I have approximately 30k in the bank.
Option 2. My boss has indicated he would like to start a subsidiary to our GC company as a site work company. We have discussed that I would run the company as an estimator and PM. I have little site work takeoff experience other than gathering numbers from our site contractors. My boss has offered to put up around 200K in order to purchase a mini, a skid steer, trailer and dump truck. We have not negotiated my stake in the business, but in my mind I would like to shoot for 51% ownership since he neither has the time or interest to be involved in any of the day to day operations. While this is obviously putting a lot trust in me, I now typically run 1-3 jobs at a time ranging from 1-3 million in value. We have discussed hiring an operator and a couple laborers, with the experienced operator having the capability to help me with bidding until I have a good handle on it. Our company puts around 20 million dollars worth of work in place a year so there would be opportunity to do our own site work as well as bid out to other GC's. My idea is come to an agreement that I would take a salary and my portion of any profit in the business would go into paying back half of the 200-250k in capital that he initially invests plus interest.
There is a lot of construction going on in our area right now and I feel like there is a good chance of success whether I go this route or make a clean break and go on my own.
Any advice?