Now Explain This...

J87513

I work for a construction that specializes in radiant floor heating and electrical work. There are 3 main employees who do everything, and 4 part time/ people who specialize in something. The 3 main guys know so much more than the owner of the company and have been doing it for many years.

What don't these guys get their contracting license go out and start their own company? I just don't understand, are they scared?

KillerToiletSpider

No, their smart.

They collect a paycheck, as opposed to trying to collect from customers, worrying about getting paid, dealing with suppliers, carrying the insurance and bonds needed to do the work, and the scheduling fiasco's.

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J87513

but they are never going to make that much money if they don't own their own company, don't you agree?

mdshunk

Well said.

There exists in most companies a few guys who seem like they should operate their own business. If they make enough money as employees, and enjoy turning off their brain to work at 5:00, then who's smarter than who in that scenario?

This is the exact type of person that is suited to a foreman or lead man position. He's basically running his own company (the job) within the company, but doesn't care to operate his own seperate business on his own. This is the guy every company would like to have 3 or 4 more of.

Leo G

Make more money or go totally bust and into serious debt. You need to have the business end of it down too. Just because you know how to do the work doesn't mean you know how to get the clients, manage the business, collect the debt, get the right insurances, clients, business etc. There is so much more to running a business than just doing the job at hand.

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mdshunk

Some people value their night and weekend time and mental health more than what's on their 1040 at the end of the year. No shame in that. Just because a guy seems like he probably could successfully operate his own business doesn't mean that he should. It hardly wrong or irresponsible for him to keep ringing the time clock. Some people ascribe most of their sense of worth (with regard to their trade) to actually working with the tools and doing the work.

JamesNLA

Well said Leo...
I think having prior experience in owning different business has helped me beyond words. And I agree, just cuz someone is a highly skilled tradsman doesn't insure success in operating a company. And on the other hand, even if one is more than capable to run a company, it is a lot to deal with. No sick days - huge responsibilities - no bonus at Xmas time.....It is a lot to deal with.

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J87513

I don't know about you guys, but it seems worth it for me to take the chance and make 300,000 a year compared to the lowsy 20,000 that I am making now.

Leo G

Do you really think that you will make that much with just a few guys working for you? You may make 300K in gross receipts but after all the expenses, payments, labor costs, insurances, fees, taxes, rents, gasoline, truck payments, materials ETC. You make a lot less than you would expect from all that work. You think you are going to work a 40 hour week? Don't make me laugh. Try 80 hour weeks for the first year and then it might start to get down to 60. Owning your own business can be profitable but it is also a lot of work. Sometimes it is worth it and other times you are ready to throw in the towel. Think before you jump. And if you do take the plunge I wish you all the luck and good business sense that you need.

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Heritage

I think it's a matter of your personality and character. Sucessfull business owners have vision, an unwavering will and take charge and responsibility over their fate. Employees...not so much. They generally like routine and stability. It's all in your individual personality. At the end of the day, you may be an owner, make good money...and be a miserable hack. You might be a janitor and happy. Not one is better imo.

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KillerToiletSpider

I am that guy, though I do operate a business, it has nothing to do with my trade.

I do it all, from print takeoff's to bid, and draw the plans after the bid is accepted to detailed material lists, and as built drawings. I also coordinate work and hire and fire employees as needed ( we're union, so all help comes from the hall). I get compensated for my time, my gas is paid for, and I have the freedom to leave early on a Friday with no questions asked, because I have an excellent relationship with my boss.

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J87513

well thank you all for you input. I have gotten so many responses so this must be a really good thread.

I still think that with out a slight doubt that owning my own business is best for me. I guess that some people need to be told what to do, I know that might sound harsh but I think that it is true.

K2

I remember my first year,( 1980), I put a half page ad in the paper and waited for the phone to ring. Even got an answering service to handle all the calls. Nothing, nothing and nothing.

That was lesson #1 of many lessons in "It ain't that easy"

But you gotta stick your neck out. Go for it.

jproffer

That's 2 people in 2 days that think they're gonna jump right in and start making hundreds of thousands a year (first one was 500,000 and now 300,000).

I said it to the other guy, and I'll say it again...if it was that easy, everyone would be doing it.

I'm not at all saying that it's not POSSIBLE, but it's not easy...and in your first year you want to make that....lofty goals my friend...lofty goals. I hope you reach it, but the best advice about life in general I've ever heard was "hope for the best, prepare for the worst and your bound to fall in between the two somewhere".

You've got the "hoping for the best" part down, but don't forget the other part. Again, don't let me rain on your parade, just prepare for the possibility of making 3,000 the first year instead of 300,000.

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Mike Finley

Sh*t! Is that what we are supposed to be making? I'm getting screwed!

J87513

When you make practically nothing like I do, the opportunities for me to make a descent living are impossible for me unless I own my own business. Keep in mind that I only make about 20,000 a year. I've done the math (labor, expenses, supplies and anything I could possible think of) and I figure that my boss makes at least 2m a year.

I'm sure that alot of you are wondering what exactly it is, but the industry is so so small that I don't want to say because word gets around so fast. There are only about 15 companies of my trade in California alone.

Chris Johnson

If there is only 15 companies in the trade and you make 20k a year, something is seriously wrong. This 'Trade' is specialized and specialist make more than 20k a year. Better rethink what your talking about here.

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dirt diggler

i've never really held a "real" job. I mean, anytime I tried to get one - it never lasted past that 90-day probation period.

so I've stuck with this "job" (as a business owner) longer than anything else.



here's the reality:

you wake up every morning. As an employee, you can count on with 99.999% certainty that you will be paid at the end of the week. You can plan vacations, you can make a cute little monthly budget, and you can make plans for what you're going to do on the weekends and evenings. Everything becomes a routine and, in general, you feel secure - at least financially. All you have to do is wake up on time, get into work and focus on doing your job. Nothing more will be asked of you than that.

As a business owner, you wake up every morning and the first question on your mind is "how much money will/can I make today??" Money will be spent, rest assured - it WILL be spent. Even sitting at home - you will spend money. Obviously, you have to make it as well.

Getting clients is great - but it DOES NOT guarantee that you will make money. It will give you a tinge of hope and allow you sleep that night - but YOU WILL NOT MAKE MONEY UNLESS EVERYTHING GOES RIGHT.


And once you get that money - there is an unspoken force that comes from 20 different directions that seems to want to take it from you.

oh - and then there's taxes




food for thought: it's just as important to know how to KEEP the money you make as it is in knowing how to MAKE it.



and then you'll reach a point (kinda where I'm at now) - where you'll realize that it will be necessary to grow your business (and maintain it at THAT level) JUST to be able to make a comfortable living (i.e. the same as working as an employee).

Thus, it's all risk. Your comfort levels for risk will be tested. And it's easy to sit back during your lunch hour and dream about this and say "oh i'll cross the bridge when I get there"


meanwhile - bills. Health insurance, mortgage or rent, truck payments, food, gas, and that's just personal expenses. These rascals will pop up every month - and I haven't figured out a way to make them go away.


you'll wake up with uncertainty
you'll lose money before you make it
once you make it - you'll have to learn to keep it
don't forget taxes
you'll need others so that you can grow
you'll need more work just so you can have others so that you can grow - this leads to even more uncertainty
you'll lose money again because you don't have experience
and there is not enough hours in the day to keep EVERYTHING in check

oh - and bills, food and gas (just basic necessities)
and you'll go to bed with uncertainty





and there's no such thing as lunch and weekends and Friday nights to unwind. You'll have to do "unwinding" somewhere on the road between jobs.

Stone Mountain

Oh how true, how true.
I've just had a phenominal month. But it's only a month. I wake up in the morning and go to my office where I worry about how to pay the bills, who owes me what, will I make payroll tomorrow, will I have enough cash flow to cover my monthlies (4 truck payments, rent phone, taxes, car payement, utilities, secretary, commissions, bookkeeper, etc, etc, etc), what do I do about the crazy customer who won't tell us what their problem is: ("You guys are carpenters, you should know") and of course won't pay, and a million other things.
I cannot plan long term for vacations(the last 15 years we've done virtually every vacation as a last minute booking), I rarely have a full weekend off during the season, and I work 4 nights a week, because that's when customers are home.
And you want to go into business for yourself and make $300,000 a year? Good Luck!!!

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J87513

Well I never said that the minute I get my contracting license that I will be making 300k a year and going on vacation for 4 months a year in Hawaii.

So far your arguments are not suprising to me at all. I still feel that owning a business is the best way for me. I will not deprive myself of any opportunities in life.