JoeBergess

I've finally had it with the unethical and cheating behavior of my boss. He cheats people out of every turn, trying to make a quick buck, with no regard with the reputation it brings on the company, the customers, or the employees that work for him.

Jobs are done shoddy because to do it the right way would mean an extra hour here or an extra dollar there. He prefers to cut corners, do shoddy work, lie to cover up his tracks, and treat vendors like garbage.

He actually threatened to fire a Vendor we do $300,000.00 worth of business with because they charged him a restocking fee on a $15 piece of molding that he ordered wrong. No exaggeration.



Therefore, I've decided to open my own company. I've been running a very small business on the side that dealt with Drafting and Design, but I'm opening my own construction firm. I believe in good work, and fair prices. Unlike my boss, who gouges for cheap work.

But I need advice on getting started. I'm using subs to start out with, so my employees are taken care of. Any practical advice you long time business owners can give me? Any place I should look to for good advertising and getting good leads?

I'm getting yard signs to stick around town in Suffolk and Chesapeake areas, in busy intersections to start with.

Any and all advice will be muchly appreciated. Thanks!

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Joe

MR. BUSH

I can understand your feelings for your current boss. I was there once. There are a lot of moving parts in keeping a home improvement firm moving. Dealing with employees, subs, suppliers and once in a while physco homeowners. It will be much different when the shoe is on the other foot and you are working for yourself. 8 out of 10 new home improvement companies are out of business in 2 1/2 years(data from bbb-nrca). Just open a phone book from 7 years ago and see who is still in business. Plan it well and line up a good therapist to deal with the extra stress.

Cole

I agree with everything above, but looking into the phone book is a bad idea. A lot of us wasted money on phone book ads in the past, which in turn made a lot of companies shy away from them now, including me.

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Midtown Tulsa Remodeling

realpurty2

I'm probably going to get ripped for stating my opinion here but it's comments like that that simply infuriate me both from a personal standpoint and business as well. ( Getting my ranting over with then I'll have valid suggestions to get you started and/or atleast things for your to consider) If you've read this site before, you will have seen many numerous post by those who are quitting their job and opening a business with absolutely no clue how to open, run or operate a business.

While your ethics for quality work and rates are a good start...How much thought and research have you put into this? It takes more than trade skills to open a company. If your goal is to open immediately to replace your lost income from quitting your job, you will be rushed into getting everything in order quickly. Which means you'll be forced into cutting corners yourself in order to meet expenses.

Are you aware of your overhead expenses to know how much you need to make to survive?

Are you aware of your competitor's pricing so that your not one of the "lowballers" that we all grumble about? Hey, if you want a respectable firm, you'll not want a lowballer reputation hanging over your head.

Are you opening up legal? County/City/State licenses (where required), EIN or Tax Id #, Zoning, Tax Status, Legal Business name or DBA, Gen. Liability, Work Comp, Surety etc.

How's your opening capital? Unless you have a nice selection of tools at your fingertips, better count those into start up capital needs. Also, legal fees to get all the contracts and paperwork written/checked. Accountants and accounting software is mandatory, even if it's nothing more than a good excel sheet. You'll need operating capital in the bank for slow periods because bills don't stop for holidays or winter slow downs.

This would be a 3 page reply if I went on with all you need. But based strictly on what you mentioned in your original post... are you really prepared enough to say "Oh joy, I'm a construction business owner today"? It didn't sound like it based on this...

Uh..no, your employees are not taken care of because a sub is not your employee. A sub sets their own hours, works when and where they want, and determines their own pay rate. Many of us use subs and employees both, but are you prepared to make it work with all sub labor? What control measures do you have in place to make sure the subs perform the quality of work you say you insist on? Do you have backup plans for when a sub doesn't show up or return calls? Do you have policy and proceedures, systems in place for the subs to follow when working on your jobsites? If not, God help you when you are trying to calm an angry homeowner because a sub was 3 days late showing up, and plopped their bricks right in the middle of her flower bed or used the wrong shade of yellow on her bathroom walls.
Sub will want paid anyway and will lien her house when you fail to pay on time. You prepared for those things?


See all the above and just about every thread on here if you search.


Sorry for being long winded and harsh, but I'm sure I'm not the only one out there who gets fired up by those who dive in feet first without a clue.

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Woman in a Man's World.

WNYcarpenter

I'm in a similar situation and once you have it in your mind that you're ready walk even the littlest things provoke you. Don't quit yet! or don't quit because you're angry. You'll be better off starting with a level head. Now that you've made up your mind pick a day that leaves enough time to sort out advertising, scheduling, and a little more research and start that day.

Don't leave your boss hanging either (he sounds like he's capable of anything). You may not be able to stand him, but if you walk in the middle of a project he's gonna be bitter, even more so if you'll be competing.

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"I knew I lost my wallet as soon as I threw my pants over the fence". -'lil jarhead bro when asking for a wire transfer...

fathersonfab

realpurty2 is right....

I can speak from experience...

I spent almost 10 years as a small business owner struggling to survive. I took business classes, asked for help, sought out mentors, but it was all too late. It's HARD to play catch up.

When the landlord wouldn't renew me lease on my 10,000 sqft building (over kill, I didn't need that much space, but I wanted a big shop) I couldn't afford to move. I also couldn't afford the CNC router I leased, so I had to give it back and file bankrupcy. The bankrupcy FINALLY came off my credit report last September.

Most of the problems I had where my own fault. I was having too much fun being "independent" and didn't know my ass from a hole in the ground when it came to running a business.

I've spent the last four years working for someone else, trying to recover. I want to go back into business for myself, but I've been a little bit afraid about it, but that's probably a good thing. I'm not going to rush into it again.

I've spent the last year reading, thinking and planning my next move. I'm going to do it right. I soak up all the info on this site like a sponge. I'm going to have all my ducks in a row before I start, which will be at the end of this year... 6 more months.

I think what realpurty and WNYcarpenter were saying is make sure you starting a real business and not just buying yourself a job. If you are just working your trade, you will never make it. You need to run a business and have a goal and a plan to succeed and know the difference of working IN your business and working ON your business.

I suggest reading The E-Myth by Michael Gerber

Hope that helps...
Brian

dirt diggler

Hope you've got the stomach ...

mahlere

I do believe that Nathan should put this thread (and the OP) in a special place...and in 1 year, the original poster should be given this thread again to revisit.

I would love to know how his ideals will have changed in that short time.

Outside of that...good luck.

But for the record...I agree with your boss regarding the restocking fee and the supplier. And you will too once you are paying the bills.

Glasshousebltr

Yeap .....except for the shotty work I'd say his boss has his head on straight. You almost have to be an a$$hole to make it in this biz joeberg. I'm not ....but that costs me weekly and I admire those who can with a clear conscience.

You better be ready to play hardball Joeberg .....and ya better give up everything else .......if ya plan on making it that is.

Good luck

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Bob

thom

If a vendor I spent $300,000. annually with charged me a restock charge I would give him hell too. Doesn't matter that it was my mistake, for that volume of business, I would expect them to take care of me. At that volume, the supplier makes mistakes that cost their customer time and money, if they won't work both ways, screw them.

dirt diggler

yeah, 300K

they can pound sand on a $15 restock fee

Heritage

Don't let the criticism stop you from going for it but heed the warnings, they are well intentioned. It's not easy to make it in this industry.

I got my master's degree and got accepted at law school, then I dropped out and opened a construction company. I had 5 years of construction experience. I'm in my second year now. It's not rocket science, but you really, really need to do your homework. Having the skills for the job is not nearly enough. You need to know how to run a business.

If you can afford to not work for 1 year and take that time to prepare, then fine.

If you can't afford to not work for 1 year, then you are not ready. You will be overwhelmed and out-competed by the 10 other companies that could be bidding against you on any given job. It's a consumer's market right now and the competition is fierce. Can you bid on a job against 10 other companies and still close? I doubt it, unless you are lowballing and breaking even, which begs the question...why are you in business?

Having the skills is only 1/3 the battle.

Your former boss may be an ass, but he's an ass that can run a company, which is a lot better than a really smart, nice guy that sinks his first year.

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Forry

Joe, don't let these guys be too hard on you.. It IS possible to slide into your own business, but you DO need to do your homework, and you better think your better than all the rest, 'cause if you don't, your clients won't either, and you won't get the job. Good luck!!

JoeBergess

Hmm....I appreciate all the unbiased advice. Some of it is harsh, but good advice none the less. Maybe I wasn't clear enough on stating that I'm not an idiot, and I don't need idiotically simplistic advice.

In response to "realpurty": I am not someone who has no clue on how to run a business. Yes, my drafting firm is small, but it nets over $100,000 per year. It's "small" because it's only me and one other employee.

As far as how much thought and research I've put into it, try about a years worth. Not to mention I've been running my bosses company for the past 3 years. Advertising, financing, sales, operations, legal matters, customers, taxes, inventory, human resources, etc.

I am aware of my competitors prices, and yes, I am a lower priced flooring company than most.

I am using subcontractors to start out with. I have been dealing with subcontractors for years. And when they "plop their bricks down in the middle of the floor" or do not do the job to satisfaction, they do not get paid.

And wow, sub's do set their own rules, hours, but dang if I'll have anyone show up 3 days late and expect to get business from me. I don't know what kind of subs you have working for you.

I can understand how you get fired up from people who dive in head first without a clue. But maybe next time you should ask questions before diving in headfirst without a clue yourself and being harsh to someone without having all the facts.

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Joe

dougchips

Let me know how this works for you (not paying). I have always paid everyone 100% of the time so the homeowners are not bothered by liens and fights on the job sites. I'm not saying your plan is wrong, I just don't understand how it works without upsetting the homeowner.

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JoeBergess

Thanks man. Seems the replies here are quite short of encouragement, and full of criticism, some unfounded. I appreciate all the encouragement I can get.

My #1 goal with this company is to do 100% good quality workmanship, be honest with customers, and ensure they are happy on average. I understand that some customers are psycho, and you can't please everyone, but you can dang sure try.

I am the 4th generation of construction business owners in my family. My father runs a contracting business, and has for 30 years. Always prides himself on being honest, and doing GREAT work. I used to work for him, and I still learn from him everyday.

Seems a lot of business owners today forget about pride. Pride in their company, in their name, in their work. And it's all about making money, making a profit.

Yes, we are all in it for the money. But it seems like so few are out there that haven't forgotten the other parts of running a reputable business, at least in this area.

I appreciate the advice, the encouragement.

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Joe

JoeBergess

Heh heh. He's closing down the end of the year. Can't afford to stay open. So it's debatable. I agree, if your going to be a butt, be a butt that knows how to run a company.

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Joe

JoeBergess

It's been working at my old company for 10 years. Never had a problem. Guy goes out and screws up the job, he doesn't get paid. It's a policy that the subcontractors sign when they are brought on board.

Don't get me wrong, I try to be as fair as possible. If it's small, of course I pay them. And I have had to go through a few subs who pulled stupid stunts, but thats fine. The ones I have now, I trust. They have become friends, and I trust them.

So your right, it doesn't always work, with everyone. It's how you handle each situation. No one can say "this is the rule, and this is what is ALWAYS followed". Each situation is unique to itself.

If my sub installed all the ceramic tile upside down, would you expect me to pay him anyway? I wouldn't pay him.

If my sub did a great job, but the customer was unhappy about the way a piece of trim looked? Of course he would get paid. I would probably even pay him a trip charge to go back out and fix it.

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Joe