Am I Crazy?

[A-1Sparky]

what sounds like a great idea can rapidly become a mess when you stop wanting to spend your time working like a dog to keep your business afloat. being self employed, even part time, is something that only a few people really do very well. most end up making less than they could just working for someone else.

I'm the type of person who refuses to be defeated. I'll find a way to succeed one way or another, regardless of what I have to sacrifice to do so. I know that's good and bad, but it's just the way I'm wired. .
Unfortunately, I'm only making about $21/hr right now, and I know that I'm worth significantly more than that. And I'm at a point in my life, age-wise, where I feel it's either "now or never". You only have a limited time working in the trades before, physically, it becomes too difficult. I just don't want to wait too long.

 

[K8MHZ]

A very important thing to know about yourself is 'are you a businessman?'

It took me over 10 years and several opening and closings of my business to realize that I wasn't. Chasing down people that owe you money sucks, doing paperwork sucks, dealing with over demanding customers suck, trying to justify your prices suck, dealing with the IRS sucks, people calling you at home in the middle of the night sucks (my home number was in the book. Owning a business will make you get an unlisted number in a big hurry) trying to do a million things at once sucks and so on. Your shop may be 9 - 5 but your brain will be working on your business 24/7.

If that's not bad enough, there are issues at the shop or office to deal with, equipment that has to be kept working or needs to be replaced and more so on.

I loved the work and solving the problems. I hated being a businessman and now that I know it, I wouldn't open another one no matter what shape the economy was in.

 

[A-1Sparky]

If you are in a position to be able to save that kind of money, STAY WHERE YOU ARE! I was in the same boat, making a 6 figure salary and saved alot. Invested in the business. Now, back with a contractor, savings depleted, making 40% less than I did before I started my business and paying back all the personal guarantees.

I didn't save the money working this job. It's money I made from selling the first house that I built. I have been planning the transition to EC for a few years now, and building and selling that first house was all part of the plan.

P.S. Sorry the EC thing didn't work out for you.

 

[A-1Sparky]

One more thing that I didn't mention...the university that I work at has an EE program that I'm interested in. I can take classes for free and get a master's degree. I have a bachelor's in an unrelated field, so I have a lot of gen-ed classes out of the way already. I could probably get the degree in about the same amount of time that it would take me to get a business established and profitable.

I know that I could make a lot more money as an engineer, but I love to work with my hands. That's why I'm leaning more toward the EC route.

 

[kwired]

I don't regret taking that plunge, there has been some good times, there has been some bad times. I'm just getting closer to the point where I no longer want to deal with everything, but I still love doing this kind of work, just hate all the extra work that is attached to being the contractor. Unless you have a well established organization and can afford to hire people necessary (and be lucky enough to get the right people) you are also the accountant, investor, legal adviser, purchasing/sales agents, marketing director, human resource manager, bill collector.....

I am always telling people I need to fire who I have in many of the positions I listed above - but I can't ever seem to get it done.

 

[A-1Sparky]

I still love doing this kind of work, just hate all the extra work that is attached to being the contractor. Unless you have a well established organization and can afford to hire people necessary (and be lucky enough to get the right people) you are also the accountant, investor, legal adviser, purchasing/sales agents, marketing director, human resource manager, bill collector...e.

Those are some of my concerns...I'm not super enthused about having to wear all those hats

 

[kwired]

Those are some of my concerns...I'm not super enthused about having to wear all those hats

Not all those hats are so big at first, but the head they need to fit usually does grow, if it doesn't grow, you would be better off with your current job - from a personal financial perspective anyway. There is also more then just finances that need to go into such a decision.

 

[kwired]

If local economic conditions are favorable, you can get away with being a poor manager, or any of those other "Hat people" much easier then if economic conditions are not so favorable. Look at how many new homes were being built a few years ago nationwide, if you knew how to do any trade associated there you had a good income. Then the change came and many of those people had little work, not because they couldn't do the work, they didn't have manager skills to know how to get work when it wasn't coming to you, there was still some work out there to be done though.

 

[dhalleron]

I mostly got my EC license and insurance to protect myself while doing side jobs. Been licensed as a master since 1995. When I first got licensed as a contractor in 2010 I tried to advertise but soon found I didn't have time to do all the estimating and the work and still do my full time job that has nothing to do with tools.

A couple customers found me. They own several rental houses and they buy and sell a few houses a year. One of them now just emails me a work order, I go do the work, email him an invoice and he mails me a check. All with us talking on the phone little if any. He knows I am part time and understands when I don't have time to get to his work right away. He has another electrician he uses in those cases but prefers to use me.

I can't imagine myself staying busy with this in my free time. I just do it now and then.

I don't really want to do this full time and to me it is just something to make a little extra money and help keep up some of my skills.

 

[mjf]

I'm the type of person who refuses to be defeated. I'll find a way to succeed one way or another, regardless of what I have to sacrifice to do so. I know that's good and bad, but it's just the way I'm wired. .
Unfortunately, I'm only making about $21/hr right now, and I know that I'm worth significantly more than that. And I'm at a point in my life, age-wise, where I feel it's either "now or never". You only have a limited time working in the trades before, physically, it becomes too difficult. I just don't want to wait too long.

You neglected to add on the $20-$30/hr for benefits. That retirement check will also certainly come in handy. Do you have enough time in to have earned at least partial retirement?

I know I'm not the greatest businessman. As I already stated, I take a lot more time off work to do family stuff than most folks I know. I give lots of folks breaks when it comes time to figure out their invoice. I already know I won't be in a position to retire until about 2 weeks after they're throwing dirt on me. I'm OK with it.

I am absolutely not trying to talk you out of contracting. I love it. Make an informed decision and be happy. Good luck.

 

[readydave8]

Unfortunately, I'm only making about $21/hr right now,

that's $21 guaranteed plus benefits, no unpaid prep, paperwork, estimating, etc., unpaid time. No chasing down bad debts or going back on warantee work. So to break even you'll need to charge--$75? $100? I don't know the number but I guarantee it would astound you.

As far as needing to be selective for 3-day a week business:

Great! You'll be selecting the better paying jobs, not taking on marginal work just to stay busy. And you can easily cull contractors that can't give you a schedule, the ones that call at 11:00 pm needing a switch that you installed weeks ago moved because of another trade or customer indecision, and it has to be done by 8 tomorrow morning so you don't hold up the sheetrockers, never mind that you already have something else promised, which is just as urgent to another customer.

(I don't like working for GC's)

 

[kwired]

that's $21 guaranteed plus benefits, no unpaid prep, paperwork, estimating, etc., unpaid time. No chasing down bad debts or going back on warantee work. So to break even you'll need to charge--$75? $100? I don't know the number but I guarantee it would astound you.

and the things mentioned are just a partial listing of what unreimbursed expenses you may have, also consider insurance, utilities, vehicles, buildings, tools, supplies, routine maintenance/repairs to some of these items, income tax you pay either way but as self employed you do pay the portion of social security/medicare that another employer otherwise contributes for you, which is generally equal to what employee has withheld -so your SS effectively is double if self employed then if you are an employee with same net earnings.

 

[growler]

I don't have any children, but will be getting married in a couple of months. My wife-to-be has a good job with the state, so I could get my health insurance through her eventually.

I know, I know...but she's a good oneShe supports me...and may have to continue to if my business fails

No one has mentioned this but women tend to be a lot more supportive before the wedding than after. Before the wedding a woman will agree to almost anything but after she will agree to almost nothing. I don't think I would wish to start a business and get married at the same time. Both have problems that will need to be ironed out and take much attention.

 

[John120/240]

You can be a A+ Super Electrician Trouble Shooter but a poor Businessman. Doing the work is the satisfying part. Figuring the bill is the hard part. I am a much better Electrician than businessman.

 

[Esthy]

Don't do, continue there making the 21 and doing some part time contracting. I started 30 yeas ago my own business, too much time for that, 24/7, not finding good and reliable help, at the end, at 70 started working for someone but I just walked away because I worked for myself too long. Now, working as a dog ... I don't think so, look my dogs!

 

[kwired]

You can be a A+ Super Electrician Trouble Shooter but a poor Businessman. Doing the work is the satisfying part. Figuring the bill is the hard part. I am a much better Electrician than businessman.

To be successful businessman you have to throw at least some of your ethics out the door or you will never get to where you financially want to be:happyyes:

Don't throw too many of them out though, or you easily could end up in jail.

 

[sparky=t]

You can be a A+ Super Electrician Trouble Shooter but a poor Businessman. Doing the work is the satisfying part. Figuring the bill is the hard part. I am a much better Electrician than businessman.

Been there....

 

[A-1Sparky]

You neglected to add on the $20-$30/hr for benefits. That retirement check will also certainly come in handy. Do you have enough time in to have earned at least partial retirement?

I just started the job about a month and a half ago. It's not really what I want to be doing, but it was better than the job that I had. I was working for a controls contractor on large commercial projects and traveling all over the place. Doing that and building a house at the same time kinda burned me out.

Retirement contributions from the university don't start until you've been there for three years, but I can contribute as much on my own that I want to. After the three years, the university contributes 10% toward a 403b account.

Thank you for the info and advice.

 

[A-1Sparky]

A very important thing to know about yourself is 'are you a businessman?'

It took me over 10 years and several opening and closings of my business to realize that I wasn't. Chasing down people that owe you money sucks, doing paperwork sucks, dealing with over demanding customers suck, trying to justify your prices suck, dealing with the IRS sucks, people calling you at home in the middle of the night sucks (my home number was in the book. Owning a business will make you get an unlisted number in a big hurry) trying to do a million things at once sucks and so on. Your shop may be 9 - 5 but your brain will be working on your business 24/7.

I loved the work and solving the problems. I hated being a businessman

.

These are all good points, as I don't particularly enjoy a lot of the "business" end of contracting.

 

[A-1Sparky]

To be successful businessman you have to throw at least some of your ethics out the door or you will never get to where you financially want to be:

I think that I may have a hard time with that aspect of contracting.