how do you overcome fear of starting out

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knoppdude

Senior Member
Location
Sacramento,ca
hello, i have been dealing with this problem for awhile about starting out on my own. I have a contractors license to do electrical work, as well as plenty of work experience in the electrical trade. What I have as a major obstacle is the fear of going into business. I really want to be self employed, and someday be able to offer someone else a job. I have come to realize that I am not an expert at business, and that there is so much I don't know about contracting. I know many on this web site are starting out themselves, and would like to know how they have overcome negative thoughts and mindsets. Any input is greatly appreciated. I like the security of a job, but there are all just temporary anymore. Thanks for the input.
 

benaround

Senior Member
Location
Arizona
The guy that owns Waste Management Systems never made it thru high school, but he

did have a dream. Would you rather try and fail or never try at all and wonder?
 

Article 90.1

Senior Member
Nike: "Just do it"! Fear of snakes, pick up a snake. Fear of heights, skydive, etc. But make a plan! Others will recommend visiting your local SBA, you should, but be openminded, most of the volunteers at the SBA's are retired corporate folks and don't really understand the operations of true small business, in my experience. Meet with your accountant and lawyer first, they will be a part of your business anyway. The best thing I can tell you is to have 1 year of personal expenses in savings. Have a business plan, and a plan B. In your plan, know where your fish or cut bait point is. Have fun! Try to find out all of your costs of doing business before opening (roughly) and estimate how much money you will need to operate monthly, you'll be surprised at how each town, village, city, etc. has their hand in your pockets- they even check the little one that Levi's made for carrying a watch!

I'm learning that nobody knows about contracting anyway, it's like this mythological moving target, more of an idea than an exact tangible thing. The rules are different for each entity, it seems. Agreements, however, is what make businesses work, its all about what you and your vendors, customers, and government agencies have agreed upon before starting a project, and each situation can be unique.

And there is much more. Some fear is healthy, but if you are paralyzed by it you will never get past it. Think of something that you were once fearful oz, I'll bet that once you faced it you were able to look back and say, "that wasn't so bad"!

The toughest challenge I've faced is learning how each municipality and utility handle installation requirements, code amendments, permit procedures, inspection schedules, etc.

Best of luck (planning) to you!
 

realolman

Senior Member
If you want to do it, plan a reasonable amount and give it a shot.


Myself, I don't think I was ever cut out to be a businessman... sometimes that bugs me... sometimes not.
 
a good businees plan

a good businees plan

First and formost Have a good business plan. Include this year, next year, 5 years out etc. The saying "People don't plan to fail, they fail to plan" is quite true.
Network everywhere you go.
Classes in estimating, business management are also very important.
I started my business in 1987 and looking back I made just about ALL the mistakes one could make because I didn't have a solid plan in place.
Good Luck. There's no greater reward than success
 

ksmith846

Senior Member
You never overcome the fear of failure....that's what keeps you on your toes. I started out 5 years ago with just about as much experience as you are saying you currently have. Make plan and start. I have 10 men working right now and I am still learning more about the business part of the job each day.

Ask lots of questions,teach yourself what you can and do it....if that is truly your desire.:)
 

JacksonburgFarmer

Senior Member
Well.....Either you got the cajones or ya dont.....I have been at it since summer of '07, and in that time have added two employees, 3 trucks, amassed a sizeable inventory of tools and materials.

Like others have said, have some money saved up (for the buisness and personal expenses) Start amassing tools BEFORE you need them. If you wait untill you HAVE to have something, you will pay big $, but if you are always "shopping" you may find a deal that is affordable. Auctions are a good place to do this, but know your stopping point on each item you bid on.

Be ready for long hours, long days, some weeks with no paycheck, and lots of headaches. But if you are succesful, the feeling of accomplishment is like nothing else in this world.....

Anyone whom tells you that starting out is easy is full of it....you know this already because you are nervous.....

I have always been the self employed type.....I started mowing yards at 5 years old, and at 13 was renting ground and farming about 30 acres of my own hay.....Some people are cut out for it...others not....GOOD LUCK:D
 

satcom

Senior Member
Pretty much what everyone else was commenting on, and if you have fear now that will convert to stress once you start the business, just remember you going into the business while others are leaving because the market is down, not expanding, in a good market even the guy that din,t plan and is a poor business operator, can still survive for a number of years, in my area right now we have, more shops are closing due to lack of work, yet there are guys that can't or don't want to see the warning signs, and dive in, they figure the other guy did it so why can't they, what they don't see is all the start ups that fail, there are plenty of guys that think all they need is get a license, and start a business. If you have long term contracts the whole situation changes and makes starting up a lot easier, but if your banking on the phone ringing, or building a usefull customer base, you using up all your pici dust, remember the main reason for entering the business world is to do better then working for wages, so make sure you can do that before you jump, and don't think that all the money you bring in is profit, the biggest chunk is overhead and operating, your salary is at the bottom of the list, until your well established.
 
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RH1

Member
Since no has mentioned the current economy, I'd like to say that this is exactly the WRONG time to start an electrical business. Knoppdude, you sound like a smart and sincere guy, stay put, if you attempt contracting right now, you will lose your shirt, guaranteed.

Timing is everything.
 

sparky 134

Senior Member
Location
Joliet, IL
I started as an electrician in Nov. 96 when I very undiplomatically quit my warehouse job. I started working for my brother the next day, worked for him about 8 years before he had to close due to non payment from GC's. Went to work for another contractor for about 6 months, left him and started my own shop.

My wife just had our first son and I came home and said, "I want to start my own shop."

She said, "Okay."

I've made it past the first two hurdles as 50% of new businesses fail within the first two years and 50% of the remaining fail within the next two years.

This has been slow year but I saw it coming last year. So far my wife has been able to stay home with our kids which is our primary goal. I was off about three months of this year.

My suggestion if you do start your own shop is LEARN WHAT YOU SHOULD BE CHARGING ! Most guys start out charging way too little and think they're charging enough. Make sure you have adequate liability insurance and a good contract. There are too many GC's that will take advantage of a new contractor.

Good luck.
 

Mr. Wizard

Senior Member
Location
Texas
Since no has mentioned the current economy, I'd like to say that this is exactly the WRONG time to start an electrical business. Knoppdude, you sound like a smart and sincere guy, stay put, if you attempt contracting right now, you will lose your shirt, guaranteed.

Timing is everything.

I entirely disagree. I can't speak for the rest of the country, but I'm very busy. My biggest piece of advice I can give is to try to save at least 4 to 6 months of bill paying money. You will probably start slow, run yourself a couple of ads in the paper, get in with some GC's you may know, or call the guys that remodel houses. Sell yourself - if you don't let anyone know you're open for business, no one will call. There will be people all the time trying to tell you that you won't succeed, the economy is horrible, you've got no business experience, blah, blah, blah. If this is something you want to do - I say go for it. Don't burn any bridges with your current employer, you may have to go back for a while if it don't work out. But the one thing I can tell you, the only time you fail is when you decide to quit. Get yourself a few months of money set aside to pay bills (this money may come from a tax return, a cashed-out 401k, streamlining your personal debt, etc...), and go for it! Don't let any of the nay-sayers get you down. They may have good intentions, or they just may want to see you not succeed, but no one knows what you need other than you. I have been down the road you are trying to get on. Some days are great, some days are not so great, but that's life, whether you are self employed or not. My biggest fear when I went on my own is my phone wouldn't ring, and it seems now I can't make it stop ringing. I say best of luck to you, follow your dream because life without a dream isn't a life worth living. Best of luck!
 

RH1

Member
I entirely disagree. I can't speak for the rest of the country, but I'm very busy.

I can speak for the rest of the country, and America is in the grips of a terrible recession which many feel will not recover until 2012. You are doing well and that's good, but you are an exception. Most Americans are suffering and very few homes are being built these days and people are deferring maintenance and remodel plans.

If the OP must start his EC business, I recommend doing so on nights and weekends, while continuing to work his regular job. When the income from his part time EC gig equals his normal pay, then he should consider quitting his job. Be very cautious and prudent.

:)
 

magictolight.com

Senior Member
Location
Indianola, Iowa
Since no has mentioned the current economy, I'd like to say that this is exactly the WRONG time to start an electrical business. Knoppdude, you sound like a smart and sincere guy, stay put, if you attempt contracting right now, you will lose your shirt, guaranteed.

Timing is everything.

Holy cow! Speaking of fear!

Fear paralyzed me for a long time due to another venture that went south bad. Get your head into good business books all the time. E-myth, Good to Great, Talent Over Rated. Gunilla Marketing.

I read somewhere "what would you do if you were not afraid?" Really think about that. Fear can be healthy or it can be a nasty constraint.
 

Mr. Wizard

Senior Member
Location
Texas
I can speak for the rest of the country, and America is in the grips of a terrible recession which many feel will not recover until 2012. You are doing well and that's good, but you are an exception. Most Americans are suffering and very few homes are being built these days and people are deferring maintenance and remodel plans.

If the OP must start his EC business, I recommend doing so on nights and weekends, while continuing to work his regular job. When the income from his part time EC gig equals his normal pay, then he should consider quitting his job. Be very cautious and prudent.

:)

Now I completely agree with that :) That would be good if the OP doesn't have any contacts. The work he performs at night and on the weekends will help cultivate new contacts. It takes a lot of work to get going, but if you want it bad enough...
 
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RH1

Member
Holy cow! Speaking of fear!

Fear paralyzed me for a long time due to another venture that went south bad. Get your head into good business books all the time. E-myth, Good to Great, Talent Over Rated. Gunilla Marketing.

I read somewhere "what would you do if you were not afraid?" Really think about that. Fear can be healthy or it can be a nasty constraint.

I've read E-Myth, I'll read those others. Good advice.
 

Teaspoon

Senior Member
Location
Camden,Tn.
I can speak for the rest of the country, and America is in the grips of a terrible recession which many feel will not recover until 2012. You are doing well and that's good, but you are an exception. Most Americans are suffering and very few homes are being built these days and people are deferring maintenance and remodel plans.

If the OP must start his EC business, I recommend doing so on nights and weekends, while continuing to work his regular job. When the income from his part time EC gig equals his normal pay, then he should consider quitting his job. Be very cautious and prudent.

:)

Very good advice.Most EC's I know of are definately feeling the pinch.
New Home Construction is way down in our area.
 
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