When do you know enough?

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JoeNorm said:
I'd eventually like to run my own one-man show. Mostly residential I think.

My question to others is this: when you started out on your own did you feel confident you'd be able to handle any situation thrown at you?

Or is there always going to be inherent doubt in one own abilities, and you just sort of figure everything out after you jump all in?

Curious how you all got past this little hump of putting yourself all out there and going into business?

thanks
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"Mostly", I think"? Maybe, could be and I'll think about it can lead to years of uncertainly.

The first small job I performed as a contractor I was embarrassed that I went to Home Depot and bought 10' sticks of EMT. They still had the tags on. I remember shifting the tags to the bottom as they sat in the hallway of a hospital, so they didn't know how small I was... We all go through those days. 2,500.00 investment and millionaire on paper nine years later and I didn't have a clue what a PO was from an Invoice those first days. But, I was a darn good electrician. The rest is drive and determination to keep the phone on until you figure it out!
 
I spent 5 years running my own business and fell flat on my face. I worked harder than ever before and never had any money. I ran up $30,000 debt. I spent the next 5 years working for someone else and paying it off.

What killed me was....

No help. I did get friends sometimes when available and a couple of temps from an agency. Mostly I was alone, working both ends and the middle. I wore myself out. I was 51 when I started, well past my physical prime.

Disorganization. I didn't have a good work truck most of the time and had a hard time keeping material organized. I'd run out of simple stuff and have to keep running out for stuff I should have had on hand. I also didn't stay on top of my job accounting and lost track of profit and losses.

Underfunded. I could only pay for general liability insurance and a ghost policy for workers comp. Most commercial customers won't deal with you with a ghost policy. My few small commercial customers didn't think to ask for proof of insurance. You really need standard coverage, which is very high.

Delays on quotes. I was usually good at getting quotes back quickly but I missed the boat more than I should have. I would get home and crash soon as I sat down. Then I would get busy next day and let too much time go by getting the quote out. Best to do a quote on the spot if you can, next day if not. FORCE yourself to do this. Also, my last year, I was totally worn out and forgetting to keep up my planner. I missed a few appointments and lost chances at several jobs.

The economy. I started in 2008 when things were getting tight and they got worse from there. I priced work cheaper than my previous 2 bosses and still couldn't get but 3 or 4 jobs out of 10.

Not having a website. For a while, I could not afford it at all. Then I found a provider who could sell me a simple site for $300 something. I paid for it and then couldn't figure out setting it up. It was a do it yourself thing. I tried to get my older daughter to help do it but it was a bad time in her life and it didn't happen. If you start up, do get a website. People used to consider you legit if you were in the yellow pages. Now they consider you real if you are on the web.

I was pretty good at not taking on bigger jobs than I could do. I was not afraid to refer out projects too large or too complex.


Is it possible/practical for you to start off doing side work? That is a good way to hone your business skills while still having a paycheck. Take jobs your boss isn't interested in. Learn to track your expenses per job and see if you can make a go of it. Also, see how many of the boss's jobs you can do without having to call for advice/direction. If you can do most jobs on your own and learn quickly the ones he has to help with, you can probably manage your own shop. If you can do the planning and accounting too, you will be OK.

The little bit of payroll I had, I did through a payroll service. I knew I would lose track of tax withholding and get in major trouble with the IRS, so I had them do it. One of the few really smart things I did.

I hope it works out for you.
 
jmellc said:
I spent 5 years running my own business and fell flat on my face. I worked harder than ever before and never had any money. I ran up $30,000 debt. I spent the next 5 years working for someone else and paying it off.

What killed me was....

No help. I did get friends sometimes when available and a couple of temps from an agency. Mostly I was alone, working both ends and the middle. I wore myself out. I was 51 when I started, well past my physical prime.

Disorganization. I didn't have a good work truck most of the time and had a hard time keeping material organized. I'd run out of simple stuff and have to keep running out for stuff I should have had on hand. I also didn't stay on top of my job accounting and lost track of profit and losses.

Underfunded. I could only pay for general liability insurance and a ghost policy for workers comp. Most commercial customers won't deal with you with a ghost policy. My few small commercial customers didn't think to ask for proof of insurance. You really need standard coverage, which is very high.

Delays on quotes. I was usually good at getting quotes back quickly but I missed the boat more than I should have. I would get home and crash soon as I sat down. Then I would get busy next day and let too much time go by getting the quote out. Best to do a quote on the spot if you can, next day if not. FORCE yourself to do this. Also, my last year, I was totally worn out and forgetting to keep up my planner. I missed a few appointments and lost chances at several jobs.

The economy. I started in 2008 when things were getting tight and they got worse from there. I priced work cheaper than my previous 2 bosses and still couldn't get but 3 or 4 jobs out of 10.

Not having a website. For a while, I could not afford it at all. Then I found a provider who could sell me a simple site for $300 something. I paid for it and then couldn't figure out setting it up. It was a do it yourself thing. I tried to get my older daughter to help do it but it was a bad time in her life and it didn't happen. If you start up, do get a website. People used to consider you legit if you were in the yellow pages. Now they consider you real if you are on the web.

I was pretty good at not taking on bigger jobs than I could do. I was not afraid to refer out projects too large or too complex.


Is it possible/practical for you to start off doing side work? That is a good way to hone your business skills while still having a paycheck. Take jobs your boss isn't interested in. Learn to track your expenses per job and see if you can make a go of it. Also, see how many of the boss's jobs you can do without having to call for advice/direction. If you can do most jobs on your own and learn quickly the ones he has to help with, you can probably manage your own shop. If you can do the planning and accounting too, you will be OK.

The little bit of payroll I had, I did through a payroll service. I knew I would lose track of tax withholding and get in major trouble with the IRS, so I had them do it. One of the few really smart things I did.

I hope it works out for you.
Click to expand...

I have to give you kudos for trying to start at 51. I was 30 years old and finally quit a good job thinking I was getting too old. I had already had a master license from four years before thinking I was going into business. I finally said, if I wait too long, I'll have accumulated too much to lose if I get any older. I went right for Public work. I knew they paid thier bills. First, a Fire alarm maintenance contract for Dade County, (Miami). Then the next year, A Contractor type assist that took TM Electricians rates to all places throughout the county. It was a goldmine for the first five years as we banked the money and grew. Then, we went out to the Generals and the rest is history. The key is to get away from the trunk slammers. I went in business thinking the only work is bonded work. It served us well...
 
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