Okay, so I've been in the plumbing- hvac trade for 15 years now, I've decided to venture out on my own. I've been the service manager for two companies, and in my time there the business has tripled. I know I should be successful, but self doubt and giving up a salary paycheck keep me up nights. I have reached the top of the payscale in my trade and it's not good enough for what I want to accomplish for my family. I have five children and a wife. My wife is an accomplished RN who makes a good salary, but would like to be more available to the children. I would like my kids to have an option of thier own career choice, not inhibited by finances, or to have a family business as an option. The only way I can provide this is to start my own company. So after stating the obvious, I guess I'm just looking for some moral support. The thought of "Hanging it all out there" is a little frightening, but I'm going to do it within a month from now. I know the risks and the potential nightmare if things don't work out. Any well wishes or words of experience would be greatly appreciated.
I need encouragement!
- Thread starter Argonaut
- Start date
A good accountant, and lawyer to set up a corporation are a must for asset and liability protection.
Best of Luck
Best of Luck
+1. Protect yourself.
Best of luck, I hope it works out well for you and your family.
Keep us updated...we all love a good success story!
good luck! wish the best for you.
(26 so uh yeah no advice on how to go about it)
(26 so uh yeah no advice on how to go about it)
I started my own primary business 25 years ago and have been a partner in a couple of others. There's nothing more rewarding, but at the same time you will work harder and longer than you ever have before. The fruits of your labor, however, are all yours.
Before you start, make sure that you have researched your business thoroughly and have a well thought out formal business plan.
Most new businesses fail due to negative cash flow. Ensure that you have 6 months reserve for expenses.
Wrap your head around the fact that your income will be sporadic until you're established. Don't get discouraged and don't take it personally. You have to be self-motivating to be successful in your own business.
Develop your sales skills. Remember selling yourself is just as important as selling your product/service. Work on estimating.
If your office will be at home to start, keep it separate. When you step into your office, you are at work. It's easy to get distracted at home.
Make a lot of contacts in related trades and with suppliers and ask a lot of questions relating to your business.
Don't try to re-invent the wheel at the beginning. Take whatever good ideas you see that others have and use them yourself.
Ask clients if you can use them as a reference.
Pay your bills on time. That way you build a relationship with your suppliers. Don't be afraid to negotiate terms. Find out what your competitors are paying. It's good to have regular suppliers, but shop around every once in a while to keep your suppliers on their toes.
Take advantage of good deals, but don't tie up your money in inventory unless you're sure you can turn it quickly. Remember cash flow is king at the start.
Always communicate with your clients, tradespeople, suppliers and the bank. Never lie. You don't have to volunteer every bit of information, but always answer honestly.
Don't undervalue yourself. You may have to take jobs at a discount occasionally just to pay the bills or keep your trades working, but don't make a habit of it. Price your work fairly and clients will pay.
Most important. Try to keep regular hours. It's very difficult when it's your business and you will have to work odd hours more than occasionally. It's very easy to spend all your time on your business and you can kiss a 40 hour work week goodbye right now. However, family is your priority. Not everything to do with your business is urgent, even though it seems like it at the time. Some things can wait till the next day/morning. Prioritize.
Down the road, if you start to get swamped (god willing), hire people to do things that are taking your time away from more important things that make you money. Put a dollar value on your time.
Don't get complacent and assume you know everything. You're always trying to learn. Have confidence in yourself. You weren't successful working for someone else by accident, you earned it. You will succeed.
- Peter
Before you start, make sure that you have researched your business thoroughly and have a well thought out formal business plan.
Most new businesses fail due to negative cash flow. Ensure that you have 6 months reserve for expenses.
Wrap your head around the fact that your income will be sporadic until you're established. Don't get discouraged and don't take it personally. You have to be self-motivating to be successful in your own business.
Develop your sales skills. Remember selling yourself is just as important as selling your product/service. Work on estimating.
If your office will be at home to start, keep it separate. When you step into your office, you are at work. It's easy to get distracted at home.
Make a lot of contacts in related trades and with suppliers and ask a lot of questions relating to your business.
Don't try to re-invent the wheel at the beginning. Take whatever good ideas you see that others have and use them yourself.
Ask clients if you can use them as a reference.
Pay your bills on time. That way you build a relationship with your suppliers. Don't be afraid to negotiate terms. Find out what your competitors are paying. It's good to have regular suppliers, but shop around every once in a while to keep your suppliers on their toes.
Take advantage of good deals, but don't tie up your money in inventory unless you're sure you can turn it quickly. Remember cash flow is king at the start.
Always communicate with your clients, tradespeople, suppliers and the bank. Never lie. You don't have to volunteer every bit of information, but always answer honestly.
Don't undervalue yourself. You may have to take jobs at a discount occasionally just to pay the bills or keep your trades working, but don't make a habit of it. Price your work fairly and clients will pay.
Most important. Try to keep regular hours. It's very difficult when it's your business and you will have to work odd hours more than occasionally. It's very easy to spend all your time on your business and you can kiss a 40 hour work week goodbye right now. However, family is your priority. Not everything to do with your business is urgent, even though it seems like it at the time. Some things can wait till the next day/morning. Prioritize.
Down the road, if you start to get swamped (god willing), hire people to do things that are taking your time away from more important things that make you money. Put a dollar value on your time.
Don't get complacent and assume you know everything. You're always trying to learn. Have confidence in yourself. You weren't successful working for someone else by accident, you earned it. You will succeed.
- Peter
Good luck, +1 on incorporating. A good lawyer and accountant will help you get to where you want to go with it.
Some people are cut out to be self-employed, some aren't. You won't know which category you're in until you try it. Good luck.
It seems your mind is made up, so do the necessary prep and go for it. Makes sure your family knows that there will be changes until you get established-you will need their support. I would print out greybeards advice and put it on the fridge. Refer to it often-it is well thought out advice. Keep us up to date. I would wish you good luck, but it sounds like you have the tools and experience to stack the odds in your favor already. Please keep us updated and let us know when you need advice, support etc. Oh what the hell, good luck, Larry
Best of luck to you. Have faith in yourself and your skills, you can do it.
Sue
Sue
Larry,
Most of this quote is great advice. I ran my own business from 1983- 1998, until I decided to retire and try a second career as a college professor.
I would just add a few tips: Make sure to provide for your tax payments; do not overextend on tools or help; watch the costs, as a dollar less of cost is a dollar more of profit; if someone does not work out, you are not a charity; concentrate on marketing and if possible find a niche in your market you can dominate; and watch your receivables. I would also add that there are two adages my grandfather taught me about business that worked for him, and for me: When you are the boss, be the boss and fast nickles beat slow dollars. Good luck to you- enjoy the ride
Richard
Sounds like you know the ropes pretty well. Be careful in signing any long term marketing contracts, or unfavorable marketing contracts. I've seen one plumber lose his shirt to the Yellow Pages.
The biggest issue today to being self-employed is health insurance. It sounds like you can get yourself covered under your spouse's insurance.
I am a self-employed lawyer. When I started health insurance was the last thing on my mind, now as I get up in age, it's a huge issue for me cost wise.
The biggest issue today to being self-employed is health insurance. It sounds like you can get yourself covered under your spouse's insurance.
I am a self-employed lawyer. When I started health insurance was the last thing on my mind, now as I get up in age, it's a huge issue for me cost wise.
- Thread starter
- #15
Thanks for all the great advice everyone, I'm actually off to purchase my first service van. Thankfully I held on to our '03 econoline 12 passenger van for a trade-in. Should be able to get a really nice service vehicle without going out of pocket too much. Thanks again for the encouragement and advice, most of the ideas I was aware of, but some of them were very insightfull. I completely agree on the marketing contract comment. The best thing about running someone elses business is finding out what works and what doesn't. Marketing purchases are strictly the responsibility of the owner at my current job, I've watched him throw away an obscene amount of money on fruitless advertising. I will be set up as an owner/operator company to start, and will work from a home office. Technichally, the van is more of your office/shop/warehouse combined. If your sitting at your desk, your not making any money. Hopefully in a year or two I'll be able to take on employees, thats where things will get complicated and expensive. I'll jump off that bridge when it happens.
[YOUTUBE]http://www.youtube.com/watch?v=JoqDYcCDOTg&feature=related[/YOUTUBE]
