Starting a business

[2lostspace]

OK guys I have been thinking about going into business for myself. I know some of you have your own business and was wondering what are some of the question that I need to ask myself?

How do I go and find those answers?

Now here is what I want to do.

I want to start at first a mobile equipment repair. This would be working on construction equipment and branch into trucks like dump trucks and such.
I would also like to do some 4 wheel drive stuff due to the fact there is no shops that do that here in my small town on a Island.

Thanks for the help

 

[coldwater]

You need to know first and foremost if there is a steady and available market for what you will do. The level of service you will be able to reasonably do, and what the level of care any potential customers will need from you. The security of the market you tap, is it healthy? and are they capable of payment without holding paper for 30-90 days before releasing payment. How much money you have laid back for expenses to cover start up idleness while building clientelle. Do you have the proper tools and equipment to do the work in a safe and timely manner. Insurance cost and availability, state licensing cost. Bank and financial start up cost, and the ability to open accounts and build a relationship with your key suppliers. Just to mention a few.

 

[LongHorn]

The businesses your talking about, I would think could be started as a part time operation to get it off the ground.( Kind of crawl before you fly)

 

[coldwater]

The businesses your talking about, I would think could be started as a part time operation to get it off the ground.( Kind of crawl before you fly)

My brother and I both started that way.

 

[BajaEdition]

most States will have a place you can go and get the requirements to start a business legally. Like any insurances, bonds, sales tax regs, licensing and stuff that needs to be done so you are covered on the legal side.
then the start up capital you need just for you Workmans comp, etc. Yes cover yourself please.
After that, you will need a few lines of credit with wholesale houses and gas companies and such.
then you need to advertise
now for the part you really need to ask, are you willing to work 7/12/365.
Everywhere you go, you will see clients and have to be representing yourself, taking the woman out to dinner can turn into a business conference when a guy needing dragline work walks in, and getting his business is not a call me tomorrow, it is a sit down and let me schedule it thing.
Then remember, it will be the best decision you ever make till you decide to end it.
I loved the 6 years I was in business, I also loved the day I got out, now I live a 40 hour week at work and enjoy the rest of my time doing as I please. I guess I am not the kind of guy to do it for long.
I respect you for doing it and hope it becomes your lifes work.

 

[BrockGrimes]

You never work a day, if you do what you love.
I've thought about opening a small engine shop,
work on mowers, chainsaws, etc. but I'd like to retire
someday, LOL.

 

[gert]

awesome hope you know about what you want to work on......keep money saved for uncle sam he hurts at the end of the year . my buddy folded his floor business over taxes good luck

 

[BajaEdition]

awesome hope you know about what you want to work on......keep money saved for uncle sam he hurts at the end of the year . my buddy folded his floor business over taxes good luck

there you go. one of the reasons I quit
double taxes

oh well. one of the biggest reasons jobs keep going offshore is taxes

 

[BrockGrimes]

Aren't they offering more small business incentives as one of the obama programs?

 

[LongHorn]

You never work a day, if you do what you love.
I've thought about opening a small engine shop,
work on mowers, chainsaws, etc. but I'd like to retire
someday, LOL.

Sounds like a great job for a retired guy.

 

[LongHorn]

Aren't they offering more small business incentives as one of the obama programs?

You need to talk to"Pete" He shook hand with him, maybe he's got some pull.

 

[KenB]

Do the paperwork!
I've been doing tax prep for about 15 years, and have had quite a few clients who started their own business. Most were really good at their craft. And about 90% went broke doing it. They concentrated on the work, and not the business. If you don't like paperwork, keeping records, find someone who does.

 

[2lostspace]

Do the paperwork!
I've been doing tax prep for about 15 years, and have had quite a few clients who started their own business. Most were really good at their craft. And about 90% went broke doing it. They concentrated on the work, and not the business. If you don't like paperwork, keeping records, find someone who does.

The paperwork is what scares me the most. I dont have a problem with the work, just coming home after a 10hr day and taking another 2hrs getting paper work done makes for a long day.

I have been taken it slow so far. I have been working for a contractor for the past week and he said that he could use my services on the weekend. He has been giving my name and number out to other people.
Mabe it is time to get a short run of business cards made up.

Thanks for all the help guys, I am taken baby step closer to the edge of the pool before I dive in.

 

[2lostspace]

Doing research is a pain in the butt. I have been looking on the net all week on what I need to do to start.

I got really burned out on that so last night I started looking at shop trucks so that I could at least start.

I found a couple that look promising but the price of the truck+shipping to Seattle+Barged up to Ketchikan= a lot of money.

I found 2 that would work but one is Forks Washington and the other one is in Eugene Oregon.
The one in Washington is set up the best with welder and air compressor and it is a larger truck. I just dont know if I could swing it.
The one in Oregon is a gasser and I would have to get a compressor and welder on it. So when all said and done with this one with a welder and compressor I would be in it about 5k

I would love to look at the truck myself but I can get down there to do that. I need something that will last a couple of years tell I could get a newer truck.

One in Oregon 1980 Ford F-350 Service Truck
One in Washington 95 F-Super Duty service truck

I just dont know what to do.

 

[coldwater]

I cant help you with what to do, that decision is allllllll yours buddy. A lot of guys I know own vans and or pickups with over sized caps. I found that for me, the best of both worlds was to buy a heavy dual axle trailer, and set up a full shop in it. When I don't need it, I park it and drive the Dodge for every day use. That way, I can keep wear and tear to a minimum on my vehicle, and still maintain a drop and hook fully loaded shop on wheels, ready to work. Just throwing it out there, maybe It will help you think outside the box and into other possibilities. Don't let the paperwork get you all bummed out. But you HAVE to do it, or you WILL fail. Here's a little advice, for what It's worth. One of the WORSE things a start up sole proprietor business can do to themselves, and usually causes failure and financial disaster. Don't, I repeat, DO NOT open any more credit accounts than is ABSOLUTELY NECESSARY to run your business on a short term basis. NEVER, EVER open a fuel account, It will ruin you over night. Pay with as much cash on hand to buy materials as humanly possible, without hurting your family. NEVER depend on one job to fund the next NEVER. It's foolish and deadly business practice to live on money that may or may not come in on the next job. You have to have your own operating capital to run on, at least until you become established. Should the worse happen, and you fail, at least you won't be in debt to the point of no return, or ruin your financial future. As far as paper work. Pay up front for as much material, and pay promptly on your few accounts to clear them, use credit sparingly, (as you should) keep a tidy desk and be sure to keep all your receipts. Now, once a week, take just a few minutes to organize everything, then once a month, gather the four tidy wees recipes, and simply transfer them to your ledger sheet when your bank statements come in, and at the end of the year, hand it over to your accountant. Tracking your business is not at all hard to do, If you keep tidy records, and ledger monthly. I can generally do mine in an hour. If you get lazy, you will fall behind, lose money, lose receipts, lose deductions, and drive yourself insane come tax time. A simple line ledger is your friend. I can guarantee you that I have seen at least 20 people I know personally that did exactly opposite, and went down in flames. Stupid greed and the overwhelming desire to be an instant big shot took the right into the crapper. Once you ever start to rob Peter to pay Paul, you're screwed. If you think you have the discipline and the proper start up cost, and have a market for your skills, then there is no reason to test the waters. Just be sensible and start humbly.

 

[2lostspace]

Thanks CW that makes sense, I understand looking outside the box for ways to do things. I just know from experience doing what I do I need a service truck. I have worked out of a pick up and it is really difficult. I understand not getting too dept. I have talked to other contractor in town and with the feed back that I have gotten, it will work. I think that the ledger would work out great. I could handle doing paperwork a couple of times a week. What about billing do you sit down once a week and do that also? Thanks for your input.

 

[coldwater]

Thanks CW that makes sense, I understand looking outside the box for ways to do things. I just know from experience doing what I do I need a service truck. I have worked out of a pick up and it is really difficult. I understand not getting too dept. I have talked to other contractor in town and with the feed back that I have gotten, it will work. I think that the ledger would work out great. I could handle doing paperwork a couple of times a week. What about billing do you sit down once a week and do that also? Thanks for your input.

I have a strict policy about billing....PAY ME! I never carry paper on a customer. Small or big jobs require partial payment UP FRONT, balance on completion. You may need to modify your payment schedule, but I don't know a single contractor that dosen't require payment when the job is done. On RARE occasions I accept later payment, If 7 days goes by and no $$, I go hunting. I'm not in business to carry someone that won't pay me when the job is done. This sets the red flag for me. Remember what I said about not relying on the next job to fianace the current one? When someone won't pay, it's because the have no money, and their waiting for someone else to give them some. How many other guys are waiting for their cut???? When I quote a job, I write it out on a bid sheet. It entails the work I will do, what it will cost, and when payment is expected. They sign it AFTER I go over every detail, including PAYMENT. Then and only then do I pick up my tools. When everyone is on the same page, and nothing is left to "interpretation" then everyone is happy. I stamp the check, deposit it on the way home, and ledger the deposits at the end of every week. Simple math. Work out, money in.

 

[2lostspace]

I like that! What happens if you quote something and you find issues that were not seen tell you got started? I could see this issue come up with what I want to do. IE the pumps on the machine went out due to a failed gear on the drive, and not seeing the gear that was bad. It happens alot on equipment one component goes out because of another one that is not seen.

 

[coldwater]

I like that! What happens if you quote something and you find issues that were not seen tell you got started? I could see this issue come up with what I want to do. IE the pumps on the machine went out due to a failed gear on the drive, and not seeing the gear that was bad. It happens alot on equipment one component goes out because of another one that is not seen.

That will happen for every contractor. I wish I had a buck for every time I quoted a job, opened a wall, and found a DISASTER! Again, It falls to your ability to know your job, and what it will need. The detailed quote is the ticket. Example. You go to a site, see a problem, say, a torn up bearing. You quote the job as replacing the bearing. Open it up, and realize it's because an oiler is shot. Well....I quoted the job as a bearing replacement, If you don't want the pump fixed, I'll just do the bearing, your money mr customer...Then out comes a new WRITTEN quote befor I go any further. Never do any work no matter how small, without a written contract. In many cases, I'll know full well there was an underlying cause for the seen failure, and add it as a note in the original quote. Then split the quote as "demo" and "repair" with two seperate costs. If the job becomes a disaster after I open up the can of worms, the customer has the option to bail out and pay me my demo time, or sign the new contract and quote. It also absolves me from actionable recovery in court. The customer was alerted to the possibility of further damage before the work began. This prepares the customer, and covers the contractor. Simple notes made in the contract before signing. Same goes for you. If you see a bigger problem, note it, even If the customer swears It's "just a bearing" Then If It ends up being a 5,000$ job instead of a 500$ job and they bail on you, you're contracted to be paid your time on site.

 

[2lostspace]

You have opened my eyes on somethings and it dosnt seem that bad or hard to do. I will have to really get into finding out information on the net and not let it discourage me.

Thanks