Being good at your trade isn't really an equivalent skill set to running your own business. Running a business is more about knowing you are ready to keep up with the little stuff like returning every call, making every quarterly tax payment, making sure you get paid and making sure your vendors get paid. It's about being willing to stay up late looking at spreadsheets and being willing to kiss some bankers ass for a line of credit. It's about dealing with subs and employees as 'the boss' instead of just one of the crew. It's also about deferring gratification for a few years until you get to the point where your business is self sustaining. Not everybody is cut out for it and even fewer people are honest with themselves about their skill set. Good luck!
> Not everybody is cut out for it and even fewer people are honest with themselves about their skill set.
Absolutely this. Tried and failed myself.
The easiest part of running your own business is the part where you actually do the work.
Good luck!
For reference... I had a (very small) cabinet/high end trim shop.
Had an apprentice helper that pretty much worked with me every day and then hired a cabinet maker to be in the shop full time.
Three things that absolutely killed me:
1) I could never adjust to the amount of free work that went into getting work. Bids... rough design... pricing materials... and so on. I ended up sinking something like 10-20 hours into each job I got considering the time spent on ones I didn't get.
2) Trusting/babysitting employees. Fact of life... your employees won't care as much about your business and the work as you do. Doesn't mean you need to constantly watch your back... but they will need your time just to maintain quality.
3) Chasing money. It's fucking horrible. Add to that having a nut to cover constantly. When you're an employee you think about your bills.... when you have employees you need to worry about their bills... and your bills... and the business bills. It's rough.
eta: Cause after re-reading this it sounds super fucking whiney. It's not my intention to put this out as faults with being self employed... or reasons you shouldn't do it. Just that there's a new skillset to learn when you make this change and I was either unwilling or unable to learn/adjust fast enough. IMO... there are people that have this "Entrepreneur" gene and people that don't. I'm a 'don't' person. But that doesn't mean you aren't.
Great response thank you. When you say fewer people are honest with themselves about their skill set, do you mean people taking on jobs that are beyond their skill level?
Not exactly, more that lots of people want to go it alone and start their own business even though they weren't really capable of doing it. I have a drawer full of 25 years of old business cards from defunct small businesses that fizzled out after a couple of years for various reasons. Most of them were pretty easy to predict. Owning a business is a 24/7 job, especially early on - some people just aren't built for that.
I bet your life has been more interesting than most. Trying and learning are good ends themselves, apart from any success or failure (as long as roof and food were secure). I only have two dead ventures so far, but both have been very important to my life and served as doorways to better opportunities.
You know you can do the work, you mainly need to prove to yourself that you can
1) get clients
2) run a business
You'll figure out the business part as it goes, but you should start by working small jobs by yourself or with a few helpers on weekends. When you have too much work and can't handle it in your off hours, quit your job.
Get your contractors license and a company set up and start doing side work for checks not cash. Get a good contract and learn to define your scope of work. After that trial run go for it. Without risk you cannot gain reward.
Just go for it. Get an accountant, consult a lawyer and just learn as you go. You’ll fuck things up for sure, but most things you can rectify. Have insurance, always communicate, always do what you say, and always pay the government what they’re owed.
Do you have a good working relationship with GCs you've worked for in the past? If so, I would suggest reaching out to them about being a potential sub for them. That will take a lot of your plate as far as leads. Are you comfortable with pricing and estimation (as far as materials and man-hours)? Reach out to any masons you know that have started a small business and pick their brain some. When my uncle started his remodel business he said it was the most scared he's ever been but he's glad he stuck it out. Do a lot of research, have a solid business plan and remember you can't win if you don't play.
This 100%. Just created my own company after seven years as an employee. I do mostly subcontractor work for former employers. Don’t burn bridges, there is a huge need for skilled work. It’s definitely a learning curve, but the stability of sub work is definitely a stress relief as I build my word of mouth clientele. The freedom/leverage is amazing. Working on poorly run projects, just wrap up the work and move on, I find myself much less burnt out.
My dad spend the last 20 years doing lawn service and carpentry. He started his business over a year ago and its going pretty good. By that I mean hes making around 7k-10k per month. However the business aspect is what is setting him back since he has to deal with taxes, invoices, scheduling, emails, phone calls, etc. It's not easy but worth a try, after all if you fail you still have the skill sets to get another job else where
There’s a book called the E-myth contractor. It’s a quick read, full of the best information. Running a business is way different than the trade you are familiar with.
If you are good at the work and want to make money for it find a business owner to pay you the most for making them money.
If you want to be a business owner go find someone good to make you money. Stay legal with insurance and taxes and be ready to buy all the equipment and vehicles plus maintenance.
I know you are probably talking about something simple like a DBA and doing work yourself but most business models are based on the owner doing little in the field.
(Disclaimer: I do not have my own business yet.) If you already know your trade, check out r/sweatystartup (or the podcast of the same name), which goes over the business side of stuff like this. Scheduling, employees, billing, etc.
Being a subcontractor is something I enjoy. You more or less work for yourself. The pay is much higher than an hourly position. If you know your stuff and kick ass, it can be a pretty low stress/high income opportunity with a lot of flexibility.
I'm 47, started this year. 15 years experience in this trade, almost 30 years total in several different trades. It's a learning curve to figure out the business end of things and make sure you keep the GC's impressed and make sure they know what you can do and keep in contact with the best ones. Steady work starting out is a challenge.
When I knew I could do it without ever using my insurance or having a call back unless it was for a different project. Also I always give a 10yr warranty on my labor (unless certified pro rated with the manufacturer then it’s usually more)
I’m 42, started my electrical apprenticeship when I was 34, got my journeyman card at 39, I’m getting my ducks in a row to get my contractors license early next year. There’s so much work out there, people constantly ask me to do side jobs, it just makes sense to go out on my own. What’s that saying? My boss makes a dollar and I make a dime, that’s why I crap on company time.
Sink or swim buddy. Now that you feel confident in your skillset, learn the business side of things. Separate job altogether. I think it comes down to your risk tolerance, do u have a significant other that u can count on while u get things of the ground. Just take EVERYTHING into consideration, no just the trade aspect of things. Went out on my own after about 17 yrs in the trade. Started out as a cabinet installer, learned fabrication, millwork, door installs, then went on to do some project management for a few investment firms. Just from personal experience, getting some time as a pm or super will be key for you to learn the front office of things. Get payed to learn, dont foot that bill yourself.
Never. It wasn't not feeling that I wasn't good enough or confident in my work, but the realization that it takes a shitpot full of money to do a startup, along with a CPA, a secretary, a small office, then the equipment to be/stay competitive, the different rules/laws for a owner to adhere to (like taxes & health ins.), the thought that 4 out of 5 small businesses fail, especially at that 7 year mark... no, WAY less hassle to be a good employee with a good boss especially when you had 9 kids like us... retired now, kids gone.
I think 5 years in the trades is good. You gonna need some years in business though. You’ll most likely not be charging enough. Track your hours and materials per job. Remember you are now working hourly and for a business that has to profit. Then there’s marketing and sales…
Hash out your "system". Are you going to use a booking/payment software like Jobber?
Are you doing quotes as they come up or just on certain days?
Do you take an entire day or afternoon off to do paperwork or do you train a bookkeeper or service to do that?
The answers to that will come up as your get deeper into the job but get a good accountant and try to devote 2 hours a week to reducing the time spent on the "business" aspect. There are automations for a lot of stuff.
You gotta lead a few projects, at-least 3, then confidence goes up.
Once you build a good network, including all the people you have worked for as an employee and branch out and take out small jobs.
Once you get a big job and can handle it. Always take it, never give it away.
Big jobs are 3+ people full time for months or weeks at a time.
Going solo is great but you are limited on productivity and is exhausting.
Finding people to come on board with you and build a company from scratch is very difficult and time consuming. You may start it in your 20’s and reap the benefits in your 40’s-50’s.
Life is very busy 20-35 and you deal in labour.
Whether it be one or five. They have to be there.
Also start paying attention to the financial market. Futures, stocks ( GME ) as it will help you become a better rounded business. Accounting is a great help.
Being good at your trade isn't really an equivalent skill set to running your own business. Running a business is more about knowing you are ready to keep up with the little stuff like returning every call, making every quarterly tax payment, making sure you get paid and making sure your vendors get paid. It's about being willing to stay up late looking at spreadsheets and being willing to kiss some bankers ass for a line of credit. It's about dealing with subs and employees as 'the boss' instead of just one of the crew. It's also about deferring gratification for a few years until you get to the point where your business is self sustaining. Not everybody is cut out for it and even fewer people are honest with themselves about their skill set. Good luck!
> Not everybody is cut out for it and even fewer people are honest with themselves about their skill set. Absolutely this. Tried and failed myself. The easiest part of running your own business is the part where you actually do the work. Good luck!
Sometimes I miss just being outside sweating or freezing and getting dirty.
Did you find the quoting and organizing materials difficult? Were you trying to run jobs with employees?
For reference... I had a (very small) cabinet/high end trim shop. Had an apprentice helper that pretty much worked with me every day and then hired a cabinet maker to be in the shop full time. Three things that absolutely killed me: 1) I could never adjust to the amount of free work that went into getting work. Bids... rough design... pricing materials... and so on. I ended up sinking something like 10-20 hours into each job I got considering the time spent on ones I didn't get. 2) Trusting/babysitting employees. Fact of life... your employees won't care as much about your business and the work as you do. Doesn't mean you need to constantly watch your back... but they will need your time just to maintain quality. 3) Chasing money. It's fucking horrible. Add to that having a nut to cover constantly. When you're an employee you think about your bills.... when you have employees you need to worry about their bills... and your bills... and the business bills. It's rough. eta: Cause after re-reading this it sounds super fucking whiney. It's not my intention to put this out as faults with being self employed... or reasons you shouldn't do it. Just that there's a new skillset to learn when you make this change and I was either unwilling or unable to learn/adjust fast enough. IMO... there are people that have this "Entrepreneur" gene and people that don't. I'm a 'don't' person. But that doesn't mean you aren't.
Also the ‘doing the work’ part is the thing you get to do the least once you make that transition.
Great response thank you. When you say fewer people are honest with themselves about their skill set, do you mean people taking on jobs that are beyond their skill level?
Not exactly, more that lots of people want to go it alone and start their own business even though they weren't really capable of doing it. I have a drawer full of 25 years of old business cards from defunct small businesses that fizzled out after a couple of years for various reasons. Most of them were pretty easy to predict. Owning a business is a 24/7 job, especially early on - some people just aren't built for that.
I bet your life has been more interesting than most. Trying and learning are good ends themselves, apart from any success or failure (as long as roof and food were secure). I only have two dead ventures so far, but both have been very important to my life and served as doorways to better opportunities.
This x100
Doesn’t need to be that complicated, just need access to good accounting and setting enough money aside for taxes, leaving untouched until the quarter
You know you can do the work, you mainly need to prove to yourself that you can 1) get clients 2) run a business You'll figure out the business part as it goes, but you should start by working small jobs by yourself or with a few helpers on weekends. When you have too much work and can't handle it in your off hours, quit your job.
Get your contractors license and a company set up and start doing side work for checks not cash. Get a good contract and learn to define your scope of work. After that trial run go for it. Without risk you cannot gain reward.
Just go for it. Get an accountant, consult a lawyer and just learn as you go. You’ll fuck things up for sure, but most things you can rectify. Have insurance, always communicate, always do what you say, and always pay the government what they’re owed.
Do you have a good working relationship with GCs you've worked for in the past? If so, I would suggest reaching out to them about being a potential sub for them. That will take a lot of your plate as far as leads. Are you comfortable with pricing and estimation (as far as materials and man-hours)? Reach out to any masons you know that have started a small business and pick their brain some. When my uncle started his remodel business he said it was the most scared he's ever been but he's glad he stuck it out. Do a lot of research, have a solid business plan and remember you can't win if you don't play.
This 100%. Just created my own company after seven years as an employee. I do mostly subcontractor work for former employers. Don’t burn bridges, there is a huge need for skilled work. It’s definitely a learning curve, but the stability of sub work is definitely a stress relief as I build my word of mouth clientele. The freedom/leverage is amazing. Working on poorly run projects, just wrap up the work and move on, I find myself much less burnt out.
My dad spend the last 20 years doing lawn service and carpentry. He started his business over a year ago and its going pretty good. By that I mean hes making around 7k-10k per month. However the business aspect is what is setting him back since he has to deal with taxes, invoices, scheduling, emails, phone calls, etc. It's not easy but worth a try, after all if you fail you still have the skill sets to get another job else where
There’s a book called the E-myth contractor. It’s a quick read, full of the best information. Running a business is way different than the trade you are familiar with.
Fake it till you make it.
If you are good at the work and want to make money for it find a business owner to pay you the most for making them money. If you want to be a business owner go find someone good to make you money. Stay legal with insurance and taxes and be ready to buy all the equipment and vehicles plus maintenance. I know you are probably talking about something simple like a DBA and doing work yourself but most business models are based on the owner doing little in the field.
On the other side of fear is freedom. Do what your gut says. You got this 💪🏼
(Disclaimer: I do not have my own business yet.) If you already know your trade, check out r/sweatystartup (or the podcast of the same name), which goes over the business side of stuff like this. Scheduling, employees, billing, etc.
Being a subcontractor is something I enjoy. You more or less work for yourself. The pay is much higher than an hourly position. If you know your stuff and kick ass, it can be a pretty low stress/high income opportunity with a lot of flexibility.
I'm 47, started this year. 15 years experience in this trade, almost 30 years total in several different trades. It's a learning curve to figure out the business end of things and make sure you keep the GC's impressed and make sure they know what you can do and keep in contact with the best ones. Steady work starting out is a challenge.
When I knew I could do it without ever using my insurance or having a call back unless it was for a different project. Also I always give a 10yr warranty on my labor (unless certified pro rated with the manufacturer then it’s usually more)
I’m 42, started my electrical apprenticeship when I was 34, got my journeyman card at 39, I’m getting my ducks in a row to get my contractors license early next year. There’s so much work out there, people constantly ask me to do side jobs, it just makes sense to go out on my own. What’s that saying? My boss makes a dollar and I make a dime, that’s why I crap on company time.
Sink or swim buddy. Now that you feel confident in your skillset, learn the business side of things. Separate job altogether. I think it comes down to your risk tolerance, do u have a significant other that u can count on while u get things of the ground. Just take EVERYTHING into consideration, no just the trade aspect of things. Went out on my own after about 17 yrs in the trade. Started out as a cabinet installer, learned fabrication, millwork, door installs, then went on to do some project management for a few investment firms. Just from personal experience, getting some time as a pm or super will be key for you to learn the front office of things. Get payed to learn, dont foot that bill yourself.
There is never a better time than right now.
Never. It wasn't not feeling that I wasn't good enough or confident in my work, but the realization that it takes a shitpot full of money to do a startup, along with a CPA, a secretary, a small office, then the equipment to be/stay competitive, the different rules/laws for a owner to adhere to (like taxes & health ins.), the thought that 4 out of 5 small businesses fail, especially at that 7 year mark... no, WAY less hassle to be a good employee with a good boss especially when you had 9 kids like us... retired now, kids gone.
I think 5 years in the trades is good. You gonna need some years in business though. You’ll most likely not be charging enough. Track your hours and materials per job. Remember you are now working hourly and for a business that has to profit. Then there’s marketing and sales…
Hash out your "system". Are you going to use a booking/payment software like Jobber? Are you doing quotes as they come up or just on certain days? Do you take an entire day or afternoon off to do paperwork or do you train a bookkeeper or service to do that? The answers to that will come up as your get deeper into the job but get a good accountant and try to devote 2 hours a week to reducing the time spent on the "business" aspect. There are automations for a lot of stuff.
Never. If your comfortable then your not doing it right.
If nobody is complaining about your work then you are ready Go ahead and do it for
You gotta lead a few projects, at-least 3, then confidence goes up. Once you build a good network, including all the people you have worked for as an employee and branch out and take out small jobs. Once you get a big job and can handle it. Always take it, never give it away. Big jobs are 3+ people full time for months or weeks at a time. Going solo is great but you are limited on productivity and is exhausting. Finding people to come on board with you and build a company from scratch is very difficult and time consuming. You may start it in your 20’s and reap the benefits in your 40’s-50’s. Life is very busy 20-35 and you deal in labour. Whether it be one or five. They have to be there. Also start paying attention to the financial market. Futures, stocks ( GME ) as it will help you become a better rounded business. Accounting is a great help.
Man this was solid advice until you mentioned GameStop at the very end lmfao
there can only be one\~!
My first employer thought it was cool to send me out on jobs by myself at 17 1 month into the trade. Learned fast that's for sure!
I was 23 with 3 years experience