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>I’m not sure that these are all truly one-person businesses. In my reporting, I often come across firms with a regular team of 7 or 10 people, but only one or
by jere 13y ago
>I’m not sure that these are all truly one-person businesses. In my reporting, I often come across firms with a regular team of 7 or 10 people, but only one or two classified as W2 employees and the rest working as contractors.
I have to agree, since I find it mind boggling that one-man construction firms are making millions.
- patio11 13y agoI have to agree, since I find it mind boggling that one-man construction firms are making millions. That's not that uncommon for a general contractor: you do project management and client relations, sub-contractors hire the people who string wires and swing hammers.
- jamesjporter 13y agoPatrick is right, I know people who are essentially one person companies doing exactly this and they do pretty well for themselves.
- tptacek 13y agoThese are businesses with sales in the low 7 figures. A 1-person contracting firm netting 1MM/yr would be impressive. Most small construction firms are staffed with 1099s.
- _delirium 13y agoIt would be interesting to get some data on typical profit margins among these firms. The few I know have quite low profit margins overall. An uncle of mine until recently ran a distribution business sourcing gift-shop items and selling them to gift shops, which would fall into the $1m-$2.5m-revenue category this article discusses. But his profit margins were typically ~5-10%, so he was basically netting a middle-class salary.