Here's a Handyman who runs a you tube channel, giving a his opinion on why he likes the self-employment route as opposed to the business route.
I got sick of going up and down a ladder a hundred times when a helper could hand me a tool or materials in 2 seconds. There are many other examples... pulling wire, fishing wire, clean up, loading tools, etc etc.That is a fair perspective, but it is his perspective. While there are tons of jobs that I can do by myself, there are many more that I need help with. I probably could fish from a basement to an attic by myself, but it is easier with two people. I could dig a trench by myself, but why not get a helper to do it, etc.
What he does with his "profits" will vary with each jurisdiction. I think real estate has always been a good option; I have several holdings and plans for more. At some point those holdings will generate more income then from other sources and the likelihood of them diminishing is remote, however with this market (bubble or not) it is expensive to get into.
Not really. Our company buys others. Million dollar businesses so we might pay for estimators.I worked by myself for 10 years or so and wired 6000 sq.ft houses etc. It is tough but I didn't want to deal with employees. I now have 3 employees but I am getting out of the business at years end. One of my guys will take it over-- I am giving it to him-- no money..... I know I 'm crazy but ....
Not really. Our company buys others. Million dollar businesses so we might pay for estimators.
The trouble with businesses like yours is first look at your book value. The tools, trucks, etc. What is the depreciated value, not the appreciated (emotional) value? We’re talking EBay prices here.
Now look at the client list and potential income stream minus the lead sales/buyer/knowledge guy. What’s left? That’s what someone is buying. Honestly you often see businesses turning a million dollars a year or more that aren’t even worth half a million. And often if the key guy leaves they can’t make any money at all so you are just buying assets at clearance prices. If you all drive your own trucks and mostly your own tools and are all independent contractors just pooling your resources on the business name, sales, etc., then the “business” as such really is pretty worthless. They say the most valuable asset a business never owns is the people and that’s absolutely true in most modern countries.
So it might not be “giving” much away. Businesses are often shocked and disappointed at the size of the check.
Was recently involved in evaluating one. The business was really just an engineer going around selling power factor correction systems and maintenance contracts. He contracted out all the labor. So in the end what we were buying was some maintenance contracts and a client list. Not worth the millions he was asking so he could retire. His wife divorced and left him penniless except the business that the lawyers claimed was a lot and his health was failing. We were looking at maybe a couple hundred thousand.
I hear you bro.I have a helper that I share with another contractor. Sometimes he’s available, sometimes he isn’t and sometimes I book him for Saturdays. He’s good for wire pulls and anything where I need a guy in the sky and a guy on the ground. He’s also really smart and can do almost anything after I show him once. He’s pretty well the perfect apprentice.
There is part of me that says I should line up more work and keep him going full time. Then I think about the added responsibility and the frail economy here and it ain’t gonna happen. When Covid19 first started, I sat on my ass for two months. I couldn’t keep myself going so I’m not going to trick myself into thinking I need an employee now that business has gone into hyper speed.
I won't discuss it too far on the public forum but I will say this. There's more than one road to Rome, you can make or lose money with a one man operation or a 100 man operation. IMO it is a mistake to think the main difference between a one man shop and a 100 man shop is the number of employees.After having given it 2 go's already, seeing the highs & lows, going from having tons of work lined up and a full-time employee to back working alone again on several occasions -- I feel what this guy is saying. Seriously. The rollercoaster ride takes a toll on you.
If I ever go full time again, I think I will give some serious consideration to keeping it small instead of building a well oiled machine.
You post some good stuff dude. I enjoy reading most of it.If simplicity is a high priority, IMO most people most places are going to be better off overall finding a good job than as a one man show contractor.