Accepting the fact, that even though I have very little limitations, not everyone out there does.
Trying to find someone like me, who worked like me, was impossible.

 

My biggest struggle was following the correct ways to do things instead of thinking that I knew better.

Always making excuses for why I should do something my way instead of doing it the way that any real businessman would do it.

For example, "I can't charge that much, there is no way someone would pay that, I don't want to lose the customer."

Once I got over that, everything got much better. But I still struggle with it a bit today.

It's not just about money and charging, it's about everything. If I am doing something different than 15 people with successful businesses tell me to do it, and making excuses as to why my reason is correct, then I learned that I have to completely reevaluate my position.

 

For example, "I can't charge that much, there is no way someone would pay that, I don't want to lose the customer."

This is why my first and last go at my own computer repair business failed. My brother-in-law took over and hes now got 3 employees and 4 vans making bank.

 

It's an eye opener that you're qualified to do the work but you're basically clueless about business. You realize that to some extent you just don't know HOW MUCH you don't know.

Spend a lot of time and some money researching, talk to accountants, lawyers, insurance agents, and bankers. Sift through the old threads on this forum and you'll learn a lot, but be prepared to spend a lot of time. And some money.

 

A big struggle that new contractors have is money. They do things that they don't want to do and don't benefit their company because they are forced to do them in order to pay the rent.

I'm personally debt free, with minimal liabilities so id imagine it would be as good of a time as any.

This is great, you are already ahead of most people who start out.

But you should go one step further, you should have enough additional savings to cover you for at least 1 year, I really think 2 years is what you should aim for. And when I say additional, I mean not your retirement accounts or kid's college savings. You should have the capital to cover bad times and be able to freely use it without negatively effecting anything else.

This is important because it will allow you to run your company the right way. You won't have to whore yourself out in order to feed the kids.

 

Have all of what splatz said lined up, have vendor accounts ready, and some work on the table before giving notice. Then be prepared to work your butt off for the first couple of years until you start to feel a little like you got this.

 

Fears never had any.
Problems many.


My biggest problem was the no thank you part.
Getting used to not getting the bid or job. It took me awhile to understand that you may only get 1 out of 10 bids if you are lucky.
Trying cold calls and not getting in to see more than one person a day sometimes.
Mailing out ( before e mail and web ) 300 brochures and books and only getting 2-3 replies back.
That said I did get two great customers from the cold calls and the mailing out. That kept me going 5 for years. I was in machine upgrade business so that was all I needed, repeat customers that did not want to loose me.


My thoughts are go for it IF
You have enough money put away for 1 year of bills
DO not use your retirement money.
DO not use your house for a loan.
DO pay house bills first before business, you can lose business but not your house.
If married get 200% buy in from wife, not just an OK.
Get a lawyer and accountant for at the first two years.


Good luck
Cowboy

 

The biggest, most continued, and daily struggle was trying to keep the teeter totter of sales of new work to actually doing work fairly level. If you're the guy selling the work and the guy doing the work, it's a peculiar stress. You can easily sell more work than you can rightfully get done in a reasonable amount of time. You can also knock out all your work quickly and have no sold work to do next week. Keeping a balance between selling work and doing work takes.... well... a lot of screwing up before you find the proper balance. You have to have your mind in two places at once almost constantly.

 

I stepped out on my own in 2001.

Never mind what I was thinking....I got laid off right after 911.
went on unemployment and absolutely could not find work.

By Novemebr i figured screw it ...I'll get my own work.

The thing that caught me off guard is all the superintendents
of the various building companies who acted like I was the
next best thing to sliced bread (when I was handling their jobs
as the EC's employee ) suddenly got cold feet with me &
were no longer my pals.....heh-heh-heh ...all that talk
about "if you ever decide to open your own doors"...it was
just that...talk.

So I underestimated how difficult it was to gain access into the
construction business...started out doing service calls & remodels.

Now I've come full circle and could care less if a builder ever
called me again....doesn't mean I won't do it...they just don't
or won't like the bid.

 

In general the first 25 years were tough

After that it got easier

 

What was your setback and how did it pan out?

My own ignorance lain:, a spark does not a biz man make

ate a lotta crow:sad:

learned to listen:vs_OMG:

this is yr 20 for me:vs_cool:

 

Well my big struggle in the beginning was- Wait, we need some background first- I was quite young when I started the business, 28 yrs old. A surfer with (back then) surf muscles. And blonde hair from spending all my time in the waves.

I had 2 biggest struggles. One was going to work since I lived on the Northshore right down by Pipeline. The other one was with the housewives. :vs_laugh:


I don't struggle any longer , except with my knees.

 

The toughest part starting out to me is always the same thing; having enough money to pay the bills, support yourself and the family.

It takes more than a year, closer to 18-20 months before you really start getting money flow working in your favor.

Of course all of that depends on the market you are in and the type of work you are doing.

With my second business I had realized that having large maintenance contracts is an enormous plus for cash flow.

My 1st rule of doing business: never be afraid to charge large and do an excellent job that pleases the customer. They don't know or see what is inside their walls, they only see if a single plate is crooked, they need an extension cord to power something up or you had a poor attitude with them or disrespected their home/property.

What does Mike Holmes always say? "Code is just a minimum"

I agree with him.

 

Hardest part for anyone wanting to go out on their own is realizing they are now a business and not an employee.

You have to ditch the employee mentality and start thinking as a manager, entrepreneur and employee all as one.

I will always recommend to anyone considering going out on their own to read “the E-Myth revisited” first.

Reading and listening to audiobooks while I drive has provided me with a wealth of information and allowed me grow my own business 300% in two years.


Sent from my iPhone using Tapatalk

 

My official answer is 'I'll let you know in year 5'
Just passed the two year mark of owning the company.
Biggest struggles to date have been cash flow, collections, staffing (have had a number of staff get seriously ill and end up on disability claims)...to name a few...trust me i could go on and on...
It has been a pretty wild ride to date. Purchasing the company allowed us to hit the ground running, there was receivables coming in and we had a solid amount of work on hand. The downside has been business processes were already in place and had been created/evolved from the previous owners 25 years. It is still an ongoing task bringing things inline to where I feel they should be.

 

My best advice is that, if you’re debt free, do your best to keep it that way. Even if you decide to borrow for a vehicle, make a smart choice and buy up as money becomes available.

I read a book by a guy named Robert Ringer one time and it stuck with me. He said a positive mental attitude is a bad idea. Assuming things will turn out well will only get you in trouble. One of his principles is to “maintain a positive mental attitude by assuming a negative result”.

Think about it. It makes sense. If you assume things will go sideways, you will do your best to cover your ass and avoid getting screwed over. Money in your jeans and not the other guy’s will give you the feelgoods.

 

My best advice is that, if you’re debt free, do your best to keep it that way. Even if you decide to borrow for a vehicle, make a smart choice and buy up as money becomes available.

I read a book by a guy named Robert Ringer one time and it stuck with me. He said a positive mental attitude is a bad idea. Assuming things will turn out well will only get you in trouble. One of his principles is to “maintain a positive mental attitude by assuming a negative result”.

Think about it. It makes sense. If you assume things will go sideways, you will do your best to cover your ass and avoid getting screwed over. Money in your jeans and not the other guy’s will give you the feelgoods.

Good risk management skills

 

Don’t get behind on paperwork.

I have no problems getting jobs and making money. In year two and we are looking at 260k profit after my salary and 2 full time employee salaries for the year.

But I stay so busy that the papers pile up and I’m too cheap to hire a receptionist to sit at my nice pretty desk in my cozy office. I suspect that is going to change now that my wife is leaving me and won’t help with what she did help with.

Oh that brings me to my next point. Don’t neglect your family. Business has a way of taking over your life. It opened doors for me I wish I had slammed shut.

All that money is nothing when you lose your family and 3 little girls

 

Damn that sucks man! I'm just getting started and may quit my job this week. My wife is behind me but I've seen her roll her eyes a couple of times when I'm doing something that has to be done in the evening. Hoping I won't have to do so much when I go full time for myself. Being a GF for my employer and running a business on the side will make a 70 or 80 hour week quick fast in a hurry.

 

Paying for new tools like hydraulic knock out punches, 1 3/4" rotary hammer drill, a demolition hammer, new van, large fiberglass ladders, pipe threaders, Mouser.

 

Pawn shop is your friend.