For those of you who own your own business.

[Magnumcharger]

A serious line of questions, if you are self-employed:

How did you get your start?
What background did you have?
Did you grow up in a business atmosphere at home?
Were your parents/family a big influence?
How did you make the break from being a drone...to the owner of the hive?
What did you give up to get where you are?
What have you gained by getting where you are?
What words of advice can you offer?

[SFRT]

I have owned my business since 1987:

How did you get your start?

-Once I decided what i wanted to do (graphics and printing) I started by working in a print shop and learned how everything worked, Once I felt I knew enough I set up a real simple home set up and started approaching potential customers. I made sure to offer better deals and better work quality. They came in droves.

What background did you have?

- military technical training from the airforce, construction work, no higher education.

Did you grow up in a business atmosphere at home?

-no

Were your parents/family a big influence?

-in a reverse way, my old man was a typical lazy slob, all he wanted was a pension for the minimum amount of effort.

How did you make the break from being a drone...to the owner of the hive?

-just did. got sick of people dumber than me ordering me around. It was a pretty strange feeling, but once I realized it was going to work out ok I became very very happy about my decision.

What did you give up to get where you are?

-security, knowing where my next paycheck was coming from. buying extra stuff I didnt need, every penny went to growing the business for a very long time. I also lost every weekend and evening for 10 years.

What have you gained by getting where you are?

-freedom of choice, scope for action, travel and a very good income.

What words of advice can you offer?

-be ready to work 14 hours a day. pay attention to detail. get a CPA. DO YOUR TAX PAPERWORK. try to avoid credit. invest in tools and equipment, have the least possible amount of employees. SATISFY YOUR CUSTOMERS. a loyal customer is GOLD. be flexible, do not let setbacks bring you down. dont let successes get you egotistical. Try to have as many seperate income or distributoin sources possible so if someone else screws up it doesnt have a huge effect on your system.

did I mention get a CPA-DO YOUR PAPERWORK. 99% of the people I know who failed in business dodnt take care of their taxes and paperwork.

[1970 Charger 500]

I am a finish carpenter... http://mysite.verizon.net/resy0ydo/arilconstruction/index.html

How did you get your start?
My cousin, uncle and grandfather were/are in the construction business. I was doomed from the start!

What background did you have?
13+ years of just doing it

Did you grow up in a business atmosphere at home?
Not in my direct home

Were your parents/family a big influence?
Had my family been doctors or athletes or whores...I'd have been one of those most likely

How did you make the break from being a drone...to the owner of the hive?
After years of not getting along with my bosses, I new that if I WAS the boss, I'd have to get along with myself. Plus the paydays tripled!

What did you give up to get where you are?
Weekends!!

What have you gained by getting where you are?
More money, control, freedom to not worry about start/end times each day

What words of advice can you offer?
I offer a service and I make all profit.  If you offer a product, there is a lot more to worry about

You sounded very sincere with your questions and I am very honest and sincere with my answers...Good Post!

[Magnumcharger]

You sounded very sincere with your questions and I am very honest and sincere with my answers...Good Post!

Thank you for taking the time to answer! I am sincere with my questions as, you might have guessed, I'm planning on doing this myself.
Soon...

[CaptMarvel]

The most basic advice I can offer is to just (to quote ZZ Top) hit the streets a runnin and try to beat the masses,  and dont look back. When I made the jump in 91', I really thought I could do anything and even though thats a little unrealistic, there is something to be said for the cant fail attitude. In the years since then, Ive often wished I were even more of a risk taker than I am (and Im pretty good at that) Ive seen others who were too tunnel-visioned to know they couldnt succeed shoot past me in my same business. I think that type of attitude focuses you on success and doesnt even let the opposite come into view to cloud your possibilities. When I started my ceramic tile remodel business I targeted several large 20-30 yr old housing developments and started knocking doors with a big smile and a confident handshake (that got me much of what my customer base eventually became, and was very busy for many years-refferals etc.) No matter the business type, be ready for long long days, business at home and weekend work until you get really established. We only go around once, dont sit around if you really want to do this...be honest in your dealings with others, offer a great service/product at a competitive price, remember customer service (yea, they're always right) and get out there!!! Enjoy it, this can be the best decision you ever make...it can also open alot of other doors you might never have thought about too..Good luck!!

[FJMG]

    Excellent answers above people, I will reemphasize SFRT, PAPERWORK. Make sure it is in order.  Most people don't realize the extra taxes in Canada that small business has to pay. A self employed friend of mine told me to make sure you don't make any profit because it will dissapear at tax time! Having said that, if you need to make a profit then it needs to be huge to offset the taxes.  What some people don't realize is that a business is a separate entity (and files its own taxes) and you are the employee of it(even though you own it). If you want to make X$/hr then you need to charge 2X$/hr to break even. I have had this discussion with many fixed income people and I tell them this; if you are making $30.00/hr you can bet the organization you work for is charging $70.00/hr, no matter what service or product you provide.
    Don't get caught up in writeoffs! some people think that writeoff=free, wrong! it only means your business does not pay income tax on that expense and alot of times only on a portion of that expense,you still have to come up with all the rest!
    For some time your hrs will be crazy, but the flexibility gained is worth it (IMHO). If you offer a good service or product, you will have customers (just remember they are always right). If you are relatively competitive you will have loyal ones.
    I took over my father's business and my customers are children and grandchildren of his customers. SFRT and 1970 Charger 500 gave some excellent answers and advice, "listen well grasshopper".

[1BAD68]

What words of advice can you offer?

I've had 3 failed heating business'. But it finaly paid off when I met my wife, I moved to her area and now its going pretty good. If it failed again I would try again.
I just cant seem to stay working for someone else for more than a year at a time. I'm skilled at my trade and can make plenty working for another company but it just gets so mundane that I end up quitting.
My advice is, #1 make sure that you really want to be on your own (at first it will be hard, and you might wish you could just punch out and go home).
#2 if you fail, do it again. Work hard, and do something everyday that helps the business even when there's nothing to do.
#3 keep your expenses, overhead, etc. low. When things are going great, prepare for disaster, pile the money up and dont touch it, there will always be slow times.

[Blown70]

I have owned my own business from the time I left school.  April of 1998 and I started Nov. 2nd of '98.  Trust me  YOU WILL think some days why did you do it.  But YOU are ultimately responsible for YOU!!.  No boss, can be good or bad.  Meaning do you need someone to encourage you, ie. CHEW you out?  Keep in mind when you own/run the place the good DOES come with bad and you do need to deal with both.

That being said NO WAY i could even consider working for someone else now.  I am sure I would be fired in a day if not the first week.

WHAT DID I GIVE UP?

Well this is a charger board, cars.  Along the way I could have done more with cars but I had to put my business first.  It will be paid for this year.  Then I will have more $$ to play with cars.  THAT was NOT fun.

As mentioned too.  There are slow times.  Be prepared.  It happens.  YOU have to go get busiess do not expect to throw out your shingle and expect people to beat down your door.

BEST OF LUCK!!

[Charger-Bodie]

A serious line of questions, if you are self-employed:

How did you get your start?
What background did you have?
Did you grow up in a business atmosphere at home?
Were your parents/family a big influence?
How did you make the break from being a drone...to the owner of the hive?
What did you give up to get where you are?
What have you gained by getting where you are?
What words of advice can you offer?

First off, yes I have my own business. Actually Co-owner with my first cousin.
{1}I would say ,That I got my start by being patient ,and accumulating the equipment needed gradually and doing resto in my garage at night while working full time at a body shop during the day.

{2}The background is definitely a BIG part for me as my Dad had a body shop when I was born, and still did until I was 17 (his shop burned down when I was 14 , he then rebuilt , but didn't like the debt so he gave up a few years later) I spent pretty much ALL of my childhood at his shop when i wasn't at school.

{3} See Answer 2

{4} Was tired of working to make someone else rich, So Myself and Erik went to the bank and bought a shop and ,we are happy we did for the most part.

{5} Didn't really give up alot , so to speak other than the fact that for the first couple of years I was "married" to the shop about 80-100 hours per week.

[6] I think the gains are defiantly worth the stress. Ive gain freedom do decide my own destiny. You work as hard as you want to earn there is always work if you are willing to do it!

{7} My advice to someone wanting to go for it would be:

A= DO NOT compromise you're reputation for money If you do crap stuff to get by , before long thats all anyone will bring you is crap work!!
B= Don't think you are going to get rich immediately
C= treat the business like ITS you're boss, draw a paycheck and if its possible a bonus at the end of the year.
D= ( this one almost broke us the first couple years) Remember that the money in the business acct. is not youres and leave it there so you can still get a paycheck if you hit a slow period, cause the light heat etc bills will still come. Don't blow it cause its there YOU NEED A CUSHION! For the slow times

[RECHRGD]

All good comments above.  What kind of business are you going to start?  I'm a retired electrical contractor.  As already mentioned, get the business savvy part down before starting.  I've seen more people fail than I could count that were excellent craftsmen, but just could not manage paperwork or people.  The biggest headaches can come from your own employees.  Be very picky on who you hire without being discriminating and when you get GOOD people, take care of them.  Avoid organized labor, if at all possible.  (here comes the lock).

[nh_mopar_fan]

Lots of good advice in here.

1. ALWAYS remember that no employee is going to treat your business as their own. NO employee is going to care as much as you do. Yet, in the end you will be responsible for their results. Hiring is critically important.

Before I sold my biz, I used to tell everyone I was self-employed and only worked half-days, 12 hours.

[Blown70]

Lots of good advice in here.


Before I sold my biz, I used to tell everyone I was self-employed and only worked half-days, 12 hours.

Haha  That is the truth sometimes!!!!

[Charger_Fan]

I've been entertaining this notion heavily lately, too. My main problem is fear of losing my shirt (and house, and...) before I get things going well. I've decided to start it off as a hobby for a while, then jump in full boogie when the momentum gets going well enough.

Glad to read the good advise posted so far.

[Guns N Rotors]

A serious line of questions, if you are self-employed:

How did you get your start?

(1) My Father owned and operated an excavating business... I grew up around it.

What background did you have?

(2) I spent my summers on work sites. It was like a BIG sandbox. I started as a laborer when I was 13.
I operated backhoes, dozers, and excavators when I turned 20 then I joined the Army National Guard
and flew OH-58's for 10 years. During that time, my father had retired and sold off his company. When I
turned 31, I started working for a small excavating company until I was 39.

Did you grow up in a business atmosphere at home?

(3) Yes
Were your parents/family a big influence?
(4) Yes
How did you make the break from being a drone...to the owner of the hive?

(5) Three years ago, I was running my boss' company. I bid contracts, ran the excavator and
dozer, purchased supplies, answered phone calls at 10:00 PM and did all the worrying. He had a girlfriend
on the side, A new Mustang GT and a house on Lake Erie. I called a meeting, showed him everything
and asked for a $12,000 a year pay increase. He said no. I gave him my two week notice and found my
replacement for him. We are still friends but, competitors.

What did you give up to get where you are?

(6) To start my company, I cashed my 401(k), paid cash for my excavator, skid steer and trailer. I borrowed
half and paid cash on the other half on my dump truck.

What have you gained by getting where you are?

(7) Pride, focus and a life that I didn't know that I wanted, but love.

What words of advice can you offer?

( As said above, a good CPA.
Don't give up on yourself. You will have highs and lows, just keep moving forward.

My Dad always said, "The ocean is deep and wide. Some sink, some swim. The water is fine, c'mon in!"

Good luck to you! GnR

[NYCMille]

I think your father is a very smart man.

[NHCharger]

I've had my own construction company since 1991, although for the last 19 months I've been a job super for a commercial developer due to an elbow injury and seeing the downturn in building.

I got started in 1984, my Dad and younger brother were doing construction, buying dumpy houses, fixing them up and selling them. I hated my current job and decided to give swinging a hammer a try, I knew after one week I'd be doing this the rest of my life.

Backround, I started as a nail monkey, when you love your job you tend to learn quick.

My Dad had been self-employed since I was in second grade so I think i adopted allot of his habits. I spent 1 1/2 years in college for business so I had some idea on how to keep books.

In 1991 the economy went down the toilet (kinda like right now). My Dad decided to retire and my brother had a back problem which forced him to take a less physical job. I started my own company at that point, my Dad has actually worked for me off and on for the last 16 years.

The only problem is I gave up my family life to support my family. My wife and I were determined to have her stay home and raise the two boys until they were in school. Working those 12 hour half days were the norm. I have two great boys but I often wonder how good of a Dad I really am since I spent many nights in my home office working on estimates and doing paperwork.

Financial freedom was the biggest thing I gained. That's why we all want to be self-employed. I have 12 acres of land on a private road, a nice house and shop, and NO mortgage. I also have 12 rental units I own with my Dad that we built 4 years ago so I have a monthly income for a rainy day. I owe nobody nothing and it's a great feeling. I have busted my ass to be in this postion. I had a talented but extremely lazy carpenter working for me several years ago. He kept saying he wants what I have but I couldn't get it through his head you don't get there on 30 hours a week.

[Guns N Rotors]

I think your father is a very smart man.

Yes sir, he was a smart man. Sadly, he passed away 01APR 98. Not a day goes by that I don't wish
that he was here.  I wish I'd listened to him more instead of fighting him at every turn.

Thank you for the compliment, Sir.

GnR

[Magnumcharger]

I thank all of you for your insights.

I am currently a member of the Canadian Air Force. Once upon a time I was the owner of a bodyshop. It was a struggle to get it going as I had zero funds, and not a whole lot of talent.
I built the building myself, bartering building materials for bodywork. It took a year of nose to the grindstone to get it up and running, but I did it.
After three years of 100 hour weeks, hiring and firing theives, and generally getting beat up, I through in the towel.
I re-enlisted in the Airforce, and went back to boot camp (again...age 35). Who said life was easy.
I retrained as an aircraft mechanic and served at two Helicopter Squadrons until I re-mustered (changed trades) to Non Destructive testing. Best move I ever made. All of my "tickets" are actually civilian qualifications, and I've only one more year until I've got them all. Then I have one of three choices to make; hang in for four more years to get a pension, get out and work for an NDT company, or start my own gig.
I'm leaning towards the third choice.
As hard as it was when I owned the shop, I did rather enjoy the feeling of actually being my own person, something that you can never realize while being in the military.