I have more and more side work calls every day and they are much more lucrative than my job as a carpenter with a local remodeling company. I know I have alot more to learn, but when did you realize that it was time to go it alone and start your own company?
Join some of the most experienced and recognized building professionals for two days of presentations, panel discussions, networking, and more.
"I have learned so much thanks to the searchable articles on the FHB website. I can confidently say that I expect to be a life-long subscriber." - M.K.
Dig into cutting-edge approaches and decades of proven solutions with total access to our experts and tradespeople.
Start Free Trial NowGet instant access to the latest developments in green building, research, and reports from the field.
Start Free Trial Now
Replies
When you crunch all the numbers and realize that you can pay the bills and be your own boss (with you're wife's permission, of course).
Do it right, or do it twice.
Good question!! Ive been thinking of posting something similiar. To add to the question ( hope this is not hi-jacking, sorry if it is, will re-post), how many of you went out on your own before it was best/ ideal. Of course it would be best to go on your own once you are accomplished on the technical aspects ( the actual building knowledge), have a sound business plan down, and have the financial backing. But when does/will that ever happen ( kind of like waiting until the perfect time to have a child...it'll never happen).
M2akita
I'd say that answer pretty much wraps it up!
I did things in reverse. Grew up remodeling with my Dad. Worked other jobs...but never had a boss in construction till I was in my 30's.
Had to decide "when it's time".....to work under a real boss.
Decided it was "time" to go back out on my own about 5 minutes into the meeting were they told me we were all getting laid off!
Jeff
Buck Construction Pittsburgh,PA
Fine Carpentery.....While U Waite
Thats when Non-Carpenters here go out on there own. When the get laid off. Why , Because they can make more than working at Burger King, and there neighbor doesn't have to pay what it really costs to build a deck. its a win/win. Then the get the next one. and so on.
Where there's A wheel there's a way, got any wheels?
Edited 5/18/2003 10:09:43 AM ET by MuleSkinner
It's probably different for everybody, but I worked for 5 years for other contractors then the scary step. It's one I look back on as the right thing to do. There's lots of smaller jobs that will lead to larger if done right.
Consider.....
Just a few thoughts and perhaps some homework
Something about that steady paycheck keeps alot of people from going it on their own.
What have you got to lose? It may be the best thing you've ever done in your life or you might fall flat on your face. In which case you will brush off the dust and be wiser for the experience.
I broke out on my own in 86 and again in 88, sometimes good, sometimes bad. The only thing I would have done different is to have started sooner.
Turtleneck
Pete gave you some good things to think about objectively.
But for me, it has always been a little bit more of a subjective decision. The first time was after I had been roofing for three years and finding myself with more side work that paid better so I jumped ship and doubled my cash flow. I was young and emnergetic.
The last time, I had tried working for the security of a regular paycheck for three years but I kept getting stuck with all the last chancers on my crew just because I had more patience than most crew leaders. Added to that, some other things in the company was creating a lot of morale problems, like the owners son getting away with things and customers not paying on time. The owners attitude was creeping into the work crews by osmosis and I couldn't foresee myself being part of the Fall of the house of Usher so I went out on my own again.
That was in '91 which was not a very good economic year so some people thought I was either crazy or uncommonly courageous but I've always had confidence in myself which is one of the major ingredients of successful entreprenuers. ( Of course, over-confidence is a common ingredient in un-sucsessfull entreprenuers...but that's another story)
Since then, that company folded and I have half of their old customers. ( the ones that paid their bills)
Excellence is its own reward!
I think the tip off was when I was chasing the boss around the parking lot with the van, (he was a fast little bugger). Anyhow, I could see staying there would interfere with my quest to be a people person.
Back then I knew everything, so that made the decision easier as well. ;-)
ROTFLMAO
I wish I could master the art of fitting so much into so few words!
You are a genius!
Person peoples united!.
Excellence is its own reward!
For me, the biggest factor was that I was not having any fun working for others. But note that the advice of others, already posted, is sound (especially the CPA stuff). One question that I asked myself before I took the plunge........
"Out of all of the jobs that people will ask me to bid/quote on, will there be some for which my reaction will be 'I haven't a clue how to do that, or what subs I'll be able to find who do, or even where I'll find the proper help in finding that out'".
Having analyzed that, I'm guessing that you'll do just fine.
Vast projects should not be founded on half vast ideas.
For those that don't know me, I'm not in the construction trades, but am an avid DIY'er with a deep appreciation for doing it right, once. Anyway, I opened a speed/off-road shop about 2 1/2 yrs ago after 18 or so as an amateur racer/mechanic and 10 as a dealer master tech.
I had always thought of going out on my own(as most do), but not real seriously until the last year before I did it. By then I had a pretty firm game plan, and was as fed up as I've ever been with busting my a$$ for somebody else's profit, and the rest of the reasons you all have already mentioned.
Early in my career I worked with a guy named Mario that used to own his own shop(gas station/shop), and when I asked him what happened, he just kinda shrugged and said "too many headaches". By the time I was ready to do it myself I thought I had that statement pretty well figured out. I didn't have a clue.
If it wasn't for Tara's support(financial and moral), I would not have survived the first year. It's amazing how many people pop out of the woodwork with their hand out. Dealing with the bank and the local planning board were/are the lowest of the lows. As my recent absence from the 'shed might indicate, I've been waaaay busy for the last year as I've built a reputation and customer base, so things are definitely going the right direction, it just took longer that I thought it would, and "I've got miles to go before I sleep".
Most of my problems stemmed from opening a retail store/shop so they won't apply to a new sub with a home office, etc., but the time commitment and stress factors are the same.
Do I ever think about callin it quits? Sure, there are a lot of times when I think of Mario and his 5 day work week and regular paycheck, and I now understand what he meant. I still don't get one after 2 1/2yrs of 6 1/2 day weeks.
Would I do this all again? Absolutely, although I'd definitely do some things differently. I wouldn't trade the experience, pride, respect, or most importantly the ability to determine my own future. Win or lose.
Mike
PS: Sorry for the long-windedness(?)
When I realized that my boss was working less than 1/2 days, playing on his yacht, never working weekends, and finally, having to deal with HIS clients when he could not be found or what ever other reason. The firstyear I worked long hours, paid off $15,000 in machinery loans and even made more money than working for my old boss. Then, the recession hit. My old boss went under, sold his business/shop, and was never heard from again. I survived(barely). I then bought 2 1/2 acres with a shop, cashed in my equity on my life insurance and built a 1300 sq ft shop and never paid shop rent again. When the next recession hit, I again survived and many other shops didn't.
Being self employed has it's +/-. Like when contractors go bankrupt, clints get divorced in the middle of a job, plus all the other nightmares.
But, I have always been able to take 2-4 fishing trips in the summer. I just schedule around MY vacations. I don't think I ever had more than a week off at any time, a paid vacation, or insurance from any employer
Several things made me go out on my own, which happened 2 years ago. The major factor was the fact that I was tired of working for hacks, or for guys building million dollar homes and paying me $12 an hour. When more and more sidework started coming my way that allowed me to make at least $20 an hour, I started to really look at it. I studied the ways that the original jobs had come my way, and pre-marketed those avenues. I do repairs and remodel work, so I hit every realtor in town with a stack of cards and a firm handshake. This proved to be highly worth while. The hardest thing for me has proven to be estimating, and the business side in general. I'm only 27, so even with growing up in woodwork, the biz side is a challenge. Just be honest and dependable, and do great work the first time. Word of mouth and blind faith have gotten me all of my jobs. Advertising has done very little. Always have a card with you, and save money so that you can enjoy time off when it occurs. Done be afraid to chance it, because if it fails, you can always find somebody looking for good help. Good Luck!
I did it the last time I completed a project I was really proud of, and heard my boss take the credit. That was 1987.
When it became obvious that working a full time job and doing construction part time was not a good plan for our ( me and my family's ) future. When having finally attained the factory job so coveted by many in my socio-economic group, I realized that I would be stuck working 2nd or 3rd shift doing the same thing every day for 20 years before ever being able to work a day shift. When the DW suffered a bout of severe depression, due in part to my working at night while she was home alone caring for our severely disabled son and his pre-school aged brother.
It was a no brainer for me. I could work for myself and probably make the same income. Work hours better suited to my family. If I had no prospects, it was still the same as getting laid off or going on strike at the factory which were always a possibility
I haven't regretted my decision at any time. It's been three years and while we sometimes struggle and the business isn't where we want it to be yet, the flexibility I have has been an incredible blessing to my family.
I just got through reading "How to Run a Successful Construction Company" (published by taunton) and can highly recomend you reading it. It will give you good advice on that question and a 1000 more you probably have not even thought to ask yet. Good Luck!
Playdoh
p.s. If you don't want to buy it, check your local library, mine carries just about every book taunton publishes. Save your pennies, you might need them!
I had finally had enough of running someone elses business in which I had little say as to how things were done. I was tired of being the last guy on the job that had already taken too long because the boss and the rest of the crew were off to start the next one. I was tired of hearing "If we get this next job, we`re all going to make out". I was tired of having to learn spanish in order to make my fellow employees understand what we were doing each day. I was tired of being the "shoulder to cry on" for my boss who was driving a new Benz to the jobsite daily. I was tired of busting my #### to fill someone elses pockets. I was tired of creative bonuses meant to substitute pay raises.
But the kicker was when I told him I was leaving. He offered me an extra 20 grand a year to stay. That really brought it home....yesterday I wasn`t worth an extra bill a week...suddenly my value skyrocketed when he realized I wasn`t going to be around much longer.
J. D. Reynolds
Home Improvements
"DO IT RIGHT, DO IT ONCE"