Whos self employed?

[Jangles]

Ive been doing some serious evaluating in my current employment situation in the last year and am looking for some input in exploring self employment. I consider myself a well rounded mechanic and have good skills when it comes to organizing paperwork and quoting work. I do have a family to support but by no means live from payday to payday. Now, I know to get going I would have to do what it take sot get the bills paid but realy want to focus on refrigeration in the long run. I have a coworker/friend that is interested in partnering up. Toss out your ideas on anything that may be valuable to someone in my position, from getting a business license to making my first million Id appreciate all.

Thanks
Jangles

[Gleng]

I am self employed.I did so because I was tired of making my boss a lot of money and not geting paid what I thought I should.You have to weigh your options and look at some things before going into your own business.Do you have some money saved up? do ypu have some customers already? Do you have a family to support? I was single,had a customer base, and had a low rent and expense at the time.If you have some backing,customers setup,and support, Go for it.You won't know if you don't try. But be smart about it.Have a plan .

[kiwireeferman]

You need to be really careful about a partnership. I have seen so many that didn't work out. If you decide to go down that track you will need to decide who will be the "front" man. One of you will have to take the back seat, but you both need to realise that both positions in the company are equally important.

My opinion, but the partnerships operating on this basis are the ones I have seen succeed.

Also I suggest you keep your wife/partner out of the scene as the more people involved the bigger the chance of a falling out.

Try to secure an anchor customer, one that will provide the bread and butter so to speak.

I started at 23years old, no money, no clues. (That is not the way to do it.)

Have now been going for 39 years. Would I do it again? yes, but I would be a hell of a lot more professional. Being successful is being good at business not good at your trade!

[MI-Amore]

I ventured to running my own h&c business decade ago mostly doing residential work and few light commercials'. I learned it first hand that if you want to succeed in this field you have to be on call 24/7. People will call you anytime of the day or night. This might be a good job for a young entrepeneur with lots of passion, and willing to update himself with new technologies to keep up with his competitors. Well, I am not a spring chicken anymore, love my weekend off, spend time with family and friends, and see the world on my vacation, so I decided to work for a Company again. And there is nothing wrong with this. Good luck.

[coolwhip]

Went on my own 7 years ago or so. Incorporated, got insurance and bought a service van. I advertised in the local papers, on the web, and in the local phone book.
Starting out was slow, but eventually you build a customer base. I have not advertised in almost 3 years now and am staying as busy as I want to be....there are slow times that you have to save money for, especially here in MI.

Im not out to start a big company, and enjoy working for myself and by myself for the most part. Sometimes it gets lonely and I talk to myself.

I do mostly service work on residential and small commercial buildings with the occasional gaspak, furnace, and compressor changeout.

I dont think I could ever work for someone else ever again.

[A1 Burt]

I am self employed & on this web site @ 10:30 A-M HOW EVER I AM WATING FOR A COMPRESSOR TO ARIVE AT UNITIED AROUND 2:00 THEN I WILL PUT IT IN & WHO KNOW'S HOW LONG THAT WILL TAKE BUT I WILL STAY TILL JOB IS DONE. it take's time to get a business going one thing i can say is return all phone call's as fast as you can good luck.

[IceDoctorII]

my advise - go it alone and be careful of who and if you give credit.

[tarzanseal]

Read the book "THE BUSINESS OF CONTRACTING" by FRANK BLAU. If you still want to own your own business, find a banker. This man or bank will be your partner. There is not much profit (notice I did not say money) in repair work. The profit is in sales and new construction. Next get a accountant a good one. Join a builders exchange. Good Luck!!!!

[uniservice]

Be prepared to work a heckuva lot harder than you ever did for someone else,,,plan on being available to your cusomers 24/7. Warn your wife that you are starting an affair with the most demanding woman in the world. Don't let her get involved in the company or else when you do get a minute to yourself in the quiet privacy of home, she'll just have to bring up something about the biz, and blow the whole concept of "Vegging."
As far as a partnership the previous statement of one guy being the top dog is the best concept that I've seen. Lots of unsuccessful partnerships that I've seen are when each of the partners are convinced that they are doing 90% of the work, while the other guy is just coasting. I wouldn't have a partner. Be prepared to work hard, not make any profit for the first 2 years, and lose a lot of sleep worrying about everything from when will the supply house get in the special order part for such and such, how much longer can I drive my truck before the brake job, wonder if I'm gonna get the bid on that job I looked at yesterday, hope that unit on the roof and yada yada hold together til I can get the parts to fix it right. It's all fun,,,,,,,,,,,,,,,

[INTECHBILL]

Be prepared to work a heckuva lot harder than you ever did for someone else,,,plan on being available to your cusomers 24/7. Warn your wife that you are starting an affair with the most demanding woman in the world. Don't let her get involved in the company or else when you do get a minute to yourself in the quiet privacy of home, she'll just have to bring up something about the biz, and blow the whole concept of "Vegging."
As far as a partnership the previous statement of one guy being the top dog is the best concept that I've seen. Lots of unsuccessful partnerships that I've seen are when each of the partners are convinced that they are doing 90% of the work, while the other guy is just coasting. I wouldn't have a partner. Be prepared to work hard, not make any profit for the first 2 years, and lose a lot of sleep worrying about everything from when will the supply house get in the special order part for such and such, how much longer can I drive my truck before the brake job, wonder if I'm gonna get the bid on that job I looked at yesterday, hope that unit on the roof and yada yada hold together til I can get the parts to fix it right. It's all fun,,,,,,,,,,,,,,,

I've been self employed for over 25 years , In fact when I was younger companies I new would even hire me to sub for them.., It is allot more difficult but I could always put my tools down and take time off when I wanted to, but the price you pay takes everything you got...Later on when my wife got seriously ill and needed multiple brain surgeries and this brought a closure to all of my business.. If you do it, do it right !

[baub]

If you take on a partner, remember, you are taking on two partners- him and his wife.

A1 Burt brought up an important point- always return all calls promptly. Even if you have bad news for the caller, they will at least remember you got back to them. If you can't (or won't) do the job, try to have a name for them to call. I won't do any residential work, but I have the phone numbers of a good appliance guy and a residential HVAC company in my wallet.

If you are a one man show, remember you will be on call 24/7. Realize what that will mean to your family life. Week long vacations with the wife?; only if you want the name "undependable". Kid's soccer game, or get the cooler running tonight?

I don't have to go into the positive points of self-employment. You already know them since you are thinking about going out on your own. But the best part is, you are in control of your future, win, lose or draw, you get the credit or the blame. It's all yours.

[Paul Bee]

I would suggest buying an existing business. It is the best thing I ever did. I quit my job on friday and started for myself on monday without missing a beat. I had all the work I wanted for twelve years. If you are the kind of guy that has money in the bank, lots of life insurance, a retirement nest egg, and loves to work overtime,including saturday, then self employment is for you! Oh yeah and an occasional Sunday. If you don't like the sound of this, think it over real carefully. Good Luck to you whatever you decide!

[ChaseAir]

Is your plan to make money in commercial refrigeration? As a one-man operation you can make money doing anything. If you want to have employees and benefits for you and them, you may not want to be involved in the markets of HVAC that have low profit potential.

If you try to build a company based on commercial refrigeration, you would have to be very large and very efficient to make 3% net profit.

In residential replacement you can make 15% if you are really efficient. So you have 5 times the profit potential in residential. Commercial tends to not pay on time and often not pay at all. The path you choose is going to contribute to your overall happiness in the future.

[INTECHBILL]

Is your plan to make money in commercial refrigeration? As a one-man operation you can make money doing anything. If you want to have employees and benefits for you and them, you may not want to be involved in the markets of HVAC that have low profit potential.

If you try to build a company based on commercial refrigeration, you would have to be very large and very efficient to make 3% net profit.

In residential replacement you can make 15% if you are really efficient. So you have 5 times the profit potential in residential. Commercial tends to not pay on time and often not pay at all. The path you choose is going to contribute to your overall happiness in the future.

The last commercial job I did with a friend of mine, when we finshed & got paid , I couldn't even close my wallet.. Residential market in some areas is good for 2 to 3 months & the rest of the time the techs are trying to survive. Remember there are many avenues to research. I never did have to partner cause I always had other contractor friends that could fill in when my family came first.. I always enjoyed industrial and commercial refrigeration , the milk aways has to be cold and renters don't pay when the chiller is down . Go for it dude !

[Integrity Aire]

good feedback so far. if you can put together a few good techs and pay them well you can manage things in a way to offer yourself some flexibility and still make a great living. as far as a partner, I would opt to compensate him as a 1099 and offer him a higher % of the parts and labor billing. timing: I would lay out my plans and begin just before the busy season. make sure you take "your" customers with you which is seen in all industries. keep a low overhead.

[ChaseAir]

As I stated earlier, a one man operation can make money anywhere in HVAC. Do you want to be a one man show forever? That is a question that should be considered. Not too many one man shops can afford health care, and I have seen a lot of them try to grow in the wrong direction and lose their house in bankruptcy.

[totalcomfort]

Been at it for 10yrs,LOVE the half day schedule (1st half or 2nd half LOL).I did it because I wanted things done my way.I love to hunt and generally it slows way down in OCT.I hunted 46 days this year and answered my phone on my tree stand.I had to come down on calls 34 of those days!! Always answer the phone or return calls asap.NEVER break your word always do what you say and for the price you say.Customers will suffer a while as long as they know what is going on!!Good Luck

[INTECHBILL]

Been at it for 10yrs,LOVE the half day schedule (1st half or 2nd half LOL).I did it because I wanted things done my way.I love to hunt and generally it slows way down in OCT.I hunted 46 days this year and answered my phone on my tree stand.I had to come down on calls 34 of those days!! Always answer the phone or return calls asap.NEVER break your word always do what you say and for the price you say.Customers will suffer a while as long as they know what is going on!!Good Luck

You said it totalcomfort , it's really nice to be self-employed , I tried working for someone else a few times and always ended up running the other guys company when he was out hunting ( up in the tree ) or up in his plane.. I have many great memories being on my own.. More good than bad.. It takes all you got but , no one can ever take away the freedom you feel when your successful and reach all of your goals...

[selfemployed]

The other posters have the subject covered well.

[FSE_]

IMHO
Work for someone, who has to handle all of the small business issues, and LEARN, LEARN LEARN. We are in a business that the actual "work" is not important, it is the knowledge!! Bust your butt, learn the trade, then sell yourself to the highest bidder. You have to earn it, the respect of your peers and your customers.
I had over 50 employees recently (I am now with a new company) , I hired men, excuse me, people, that had 20-30 years in the field. They were beat up, couldn't carry a tool bag up the ladder, but had a world of knowledge (expertise and skills acquired by a person through experience or practical understanding of a subject). We hired out the actual work. But my people were the best there was, professionals that knew the industry first hand and were the "best of the best". I was never so proud in my life as I was of my men in my department. We were the Titans of the supermarket industry!
Working for yourself is a double edged sword, especially in the current political climate. But knowledge can never be taken away. If I had to today, I could get back in a truck and know I could provide for my family. But only because of what I know, not what I can do.
again
IMHO