I am considering something...

[JasonJ]

Right now, I work for a small local pest control company. I make above average wage for the area, my wages are close to what the big city exterminators make. I have been crunching numbers, doing the math, and am pondering the possibility of branching out on my own. Pest control is a very expensive business to operate. There is equipment, chemical, insurance, fuel, vehicle, advertizing. It is rough, and I am never envious of my boss and the heck he goes through, but when I am bringing in over a grand a day on average for him, I cannot help but think that maybe that money would be better placed in my bank account. The downfall is that this is a small area, and our company pretty much calls the shots here. There is no other big company, and only a few one man operations. I feel like there would be enough room here for me to be on my own, but it is a serious gamble. Also, the season is only 8 months, so I need to bring in enough cash to cover the entire year. <br /><br />I have calculated that if I only get 5 jobs a day for five days a week, I will get roughly $9000 a month. Break that down to cover the entire year, I would have about $6000 a month. Business expenses will eat up about $2500 to $3000 a month, leaving about $3000 a month. That puts me to about what I am making now. Now, obviously, if I get more jobs a day, then more money comes in, but costs go up as well, but not at the same rate. I average about 8 to 10 jobs a day during my season. So, its a huge gamble. Go from a fully benefitted job with okay pay to being on my own, future sketchy, and in direct competition with my former employer. What do ya'll think? <br /><br />I still want to get on the local Police Department, but being in business for myself is intrigueing as well...

 

[JGREGORY]

Re: I am considering something...

Jason, Life is a huge gamble, Heck I might get run over by a Beer truck when I go home. <br /><br />Couple of Sugestions,<br /><br />1. Actually find out what the hard cost are going to be. Ins, transportation (your auto carrier for ins. may have somthing to say), I'm assuming that you will be working from your house so check out the zoning requirements.<br />2. Only 1/5 of new businesses survive the first 5 years make sure you have the capital to manage that period.<br />3. Check to see if there are any franchises available where you can buy in and start out with a reputable name like orkin or ehlirch, they are well known out here.<br /><br />Also if you are interested in getting on a local PD couple things to consider.<br /><br />1. Our Police Dept. for the Town I work for Hires cops one of 2 ways.. A. they will hire them as Emergency dispatchers and if they have what it takes will offer to send them through the police academy.<br /><br />or B. we will recruit at the Police Academy. B. is favored more than plan A. <br /><br />Just some thoughts.

 

[Ralph 123]

Re: I am considering something...

The key is figuring out how you are going to compete. You can compete on price, be different in some key way (differentiation) or be a niche player (focus on some specialty or customer type)<br /><br />Next, marketing. how are you going to get customers? What are the customer segmanets (commercial, residential, etc) How do customer segments select a service provider? What is important to them?<br /><br />Next, competition. Who are your competitors and how do they compete? How do they price? How do they market? Etc.<br /><br />Figure those out first and then see where you are. <br /><br />If you feel good where you are after that post again...

 

[steam_mill]

Re: I am considering something...

Jason,<br /><br />I've been having the same thought for years. My employer bills me out at a ridiculous hourly rate (>$100 hour) and it seems I only get a small part of this. But then I have the following thoughts:<br /><br />1. I'm salaried so my employer pays me if I work a little or a lot.<br /><br />2. I'm a computer consultant so start up would be minimal. I'm not a salesman. I don't want to sell my services. I would estimate that I would spend one third of my time getting new customers. One third on administrative (invoicing/collections/skill upgrades etc.)<br /><br />3. On the weekends, I go fishing. With my own business there would be much more responsibility.<br /><br />4. I was home all summer recovering from a hip replacement collecting my salary. Wouldn't if I was on my own.<br /><br />I've been looking to start my own business for a while now. But I'm not a risk taker.<br /><br />I like to get a regular pay cheque and not have all the responsibility. I do not have the enterpeneur spirit.<br /><br />But remember that it is not the high income earners (doctors, lawyers etc.)that drive the Ferrari Maranellos. It's the entrebpeneurs.<br /><br />Some make it big, may fail.<br /><br />Just my opinion.

 

[JasonJ]

Re: I am considering something...

Yeah, its a tough one. Since our company is small, I am intimate with the knowledge of how it works and what the costs are, and the costs are daunting. I wouldn't mind getting into another business, but the competition is worse. When I first moved here in 98 I gave resumes to all the auto shops in town, but there are five billion mechanics here, so that was a wash. I kind of stumbled into the pest control thing because my boss is friends with my then girlfriends (now ex) boss and she told me he was looking for help, and I have been there ever since. I considered someting boat oriented. For such a large boating area there is no place to get hull repair that I know of, and a few places for mechanical repair. That would require a large building, huge start-up costs, much worse than pest control. This is all why I have been content to be a worker bee, its easier. I see small businesses start and fail here all the time, its just a matter of coming up with something I am good at that other people need. <br /><br />As far as the Police department, I am on standing application with them. I applied last spring and they wanted me but they had people who were already cops in the application pool. I stay in touch and there have not been any new openings. the Chief had told me I was at the top of their list if a new opening comes up, but we'll see on that one. With Oregon laying off its state police, they'll be looking everywhere for openings. Unfortunately, it doens't matter how good I look, if a pre-qualified guy rolls in, he has the job. There are some openings in the Sheriffs department for corrections officers in our county jail, that may be something I might look into.

 

[Ralph 123]

Re: I am considering something...

Jason,<br /><br />Don't give up just yet. Lay out the competitors in a matrix, understand your customers and look for an untapped opportunity (an uncovered spot on the matrix). If you find one, you can make a killing. There is nothing better than being a smart competitor in a mundane business. For example, you may be able to specialize and focus on restaraunts and own that segment of the market.....

 

[crab bait]

Re: I am considering something...

i'd keep your job for one more year,now that your really serious... in this year.. really focus on the rite stuff.. look for good equipment deals,, contacts.. bussness software an books,, an save your freakin' butt off.. <br /><br />this time next year ,,put the proposial up for debate ,, with yourself.. <br /><br />rite now you only have one boss ... go in bissness,, you'll have hundreds...<br /><br />also ,,look at health care cost..

 

[WoodRust]

Re: I am considering something...

I've worked for myself for nearly 20 years and think that you've left some major """thinks"" out of your decision making process. The time & $$$ of managing your own business.<br /><br />If you work 40 hours per week you will spend at least 10-15 hours on top of that to manage it... Banking, Accounting, Remitting state & federal taxes. IRS, etc. Hire some one to do most of it and you get more bills. The list goes on, the hours involved go on.<br /><br />Yes it can be rewarding. That's why I do it. But believe me when I tell you it is a 7 day a week job. As in TGIF - only 2 days left in the work week. <br /><br />Plan carefully. The 1st 5 years are really hard, especially if you are married. Wives don't necessarily accept you working at night and on weekends for the same amount of $$$ (or less) than you made when you just went home after working for some one else.

 

[JasonJ]

Re: I am considering something...

Thanx guys, that is why I wanted to use this as a sounding board for the idea. I watch the hell my boss goes through, dealing with disgruntled cutomers, getting calls at all hours all days a week. He lives in hell, and I guess I tend to filter all that out. Part of me has "I could do it better" syndrom as well. I do know there are some management aspecks I could do better, but unfortunately the company is too small to need a manager. At the same time, we as technitions have to deal with those same customers, we work horrid hours, etc. Its hard to say, you know how that whole grass is greener thing is. Its all good, nothing needs to be decided tomorrow.

 

[mellowyellow]

Re: I am considering something...

let's not forget the extra taxes guys...<br />JJ, look at you pay stub and see the amount<br />withdrawn. what you don't see is that your<br />employer matches the same contribution.<br />you will be responsible for the full amount<br />when self employed.(double the amount on stub)

 

[tylerin]

Re: I am considering something...

Jason' I'm not sure about your field, but I am in the construction field. I quickly learned that if someone can make off me than I can make money for myself. I've been my own boss for 20 some years. I worked for "the man" during the week while building up my own clientel on the weekends. 20 yrs old working 7 days a week, and shuffling papers at night. Got to the point where there just wasn't enough weekends to get my own work done. I was honest w/ my boss and gave my 2 week notice, which turned into a month, because he needed me. It was hard work for the first few years but the road did smooth out. Start out as owner operator so you don't have to pay workers comp, taxes on them etc. Whatever you decide I wish you luck

 

[SoulWinner]

Re: I am considering something...

Don't live with "would'a, could'a, should'a" in your life. I love being self employed. There is no better motivation to work than doing it for yourself.

 

[muskyone]

Re: I am considering something...

been self emploed for 5 years love most of it hate the insurane the taxes and the never knowing if i'll have a job when i'm done with the one i'm working on i'm off right now cuse the company i do all my work for is slow waiting on contracts was told last mounth we had a ton off work to get through winter so i tossed all my saveings into building a house and now i'm sweating as i get nothing when i'm not working also look at heath care its big bucks and as mellow said taxes you can right a ton off but then if you need a loan forget it say you make 80k not sure what the taxes are on it there here about 22% if you wright it off to be about 40k sure your taxes go down but the banks look at that as your income ok i'm babbleing with bad spelling you get the pic

 

[mattttt25]

Re: I am considering something...

i could write a long post about what i think, but i'll spare you. i say go for it. not because you will get rich off this. you probably won't. but you will learn so much. learn the business lessons and move on. too many people get stuck in a profession they can't get out of (my dad comes to mind). once that happens, it's all over. so learn how to start your own business, not how to become a good rodent killer. after a year or two, look around and see what else you can do. good luck.

 

[Bigfun]

Re: I am considering something...

Go for it, but have a bus. plan. debt is a bus. killer, avoid it like the plague. If you decide not to, make sure your decision is based on the strength/weakness of your bus. plan. Fear of failure stops most peoples from pursueing their dreams. Get advise from SUCCESSFUL entreprepenuers. Ifyou don't try you will probily regret it.

 

[jerzshaw]

Re: I am considering something...

I love being self employed. But a few suggestions:<br /><br />- whatever you think you will consevatively do in businees revenue (ie accounts in your area), haircut that number by 25%. see if it still makes sense. When I started out...I had customers of mine "lined up", yet when I started...several of them conveniently "forgot me".<br /><br />- Do you have a signed non compete with your current employer? Our dog groomer didnt read the one she signed with her boss, and after going out on her own this fall, she is dealing with a petty and vengeful lawsuit.<br /><br />- Your work hours will go up dramatically. More comlicated tax preparation, insurance issues, billing, customer problem resolution, employee issues etc. what happens if you are on vacation?<br /><br />- do you live in a growing community? is it a suburb of a major metropolitan area where people are net moving to? Or is the area shrinking (farm belt perhaps where the kids go off to school and dont come back)<br /><br />The upside is you should get more tax breaks (home office, depreciation, etc).<br /><br />Just things to consider...not trying to throw cold water on you. After all I considered all of these things and still went for it. Best of luck.<br /><br />Sal

 

[JasonJ]

Re: I am considering something...

Jerzshaw, I have done all my numbers on the extreme low end of the scale, trying to assume for the worse. Yeah, there was a no competition clause, but the law states that that can only be applied to direct solicitation of his customer base. He cannot, by law, not allow me my right to earn a living in the manner I choose to. He tried to enforce it on the last guy who tried to go out on his own, and was unsuccesful. That guy is still in business, but he does not do a lot of customers that we know of, and the ones he has done has had a lot of complaints. It is still all up in the air, I am just laying all my options on the table and seeing which ones look the best.

 

[rodbolt]

Re: I am considering something...

hello<br /> having been self employed while also working as a contact tech at several marinas since 1995 I can tell ya its a 7 day a week thing. taxes come quarterly workmans comp cause I work at other business's, liability insurance cause I have to work with large boats in the water. 3 million worth, an X wife cause all she saw was the dollars signs but overall I am happier now than when I punched a clock. I mean I cuss at the boss, get fired get rehired all in the same day. sometimes the boss is a pain but I am glad I have the experience. that is how I am or have been certified in merc,mariner,force, yamaha, suzuki, mercruiser and volvo-penta. I have a class in kennesaw GA soon and then another in FEB and hope to have my masters certificate in yamaha outboards. I am trying to land a field service tech spot with yamaha or volvo-penta. since 1995 I have done a mobile marine repair so field work is something I am very knowledgable with. nothing like walking up to a 33ft well craft or carolina classic that I have never seen before down at oregon inlet fishing center and finding and repairing the problem. no pressure just 5 people drinking beer and trying to go fishing but the boat broke. usually cause no preventative maint was performed.<br /> crunch all your numbers then ask if its worth it for no vacations and such for the next 5 years, sometimes I wish I was on a timeclock again for a large company or back in navy blue standing security rover watch. but overall its more enjoyable to be self employed. at least I get to see the kids school programs.<br /> good luck and keep posting

 

[mercrewser]

Re: I am considering something...

I fired my boss year and a half ago. I'm in Carpet Cleaning and Flood Restoration. The only thing I can recommend is Savings. I paid cash for all my equipment. Also, I bought a running business from a Gentleman who was retiring. I work less than a 5 day week and make decent money. When I first started, I had no mortgage and dindnt borrow money for equipment. So I couldnt fail. I could always work part time somewhere if the work cut out. Just be ultra conservative. I drive a beat up ford pickup and (gulp) I sold my 24' Mariah. All my money went into my company truck and machinery.