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On the surface, a subcontractor model seems like a good idea.

That’s what Red Branch Construction business owner Jacob Toler thought. Higher margin, lower overhead.

It worked great for him, until it didn’t.

His reputation was unremarkable. His margins were thinning out. Lack of accountability almost toppled the business.

And so, Jacob made a massive change that took him from negative profit to a healthy 8.5% net profit.

He cut the subcontractors, restructured his office team, and hired four crews in just five months.

If you’ve ever wondered whether you should switch from subs to employees or vice versa, then today’s episode will give you a great perspective.

00:00-Intro

02:05-Initial Subcontractor Model

06:47-The Warning Signs & Near-Collapse

15:28-Transitioning to In-House Employees

21:28-Recruiting & Vetting Processes

27:59-Subs vs Employees Model Analysis

35:28-Checklist for Business Model Evaluation