express168 Posted January 31, 2007 Report Posted January 31, 2007 I know many of you here run your own businesses and I was wondering how many of you left old jobs to do it. I currently have a well paying job with good benefits and a pension, but I am not happy at it. I am 33 and I have been looking into starting my own business for some time now. It would be something I enjoy doing alot more and my wife is working full time at the moment and is supporting my decision to try this. It isn't a money issue but rather it would improve my family life because i currently spend at least 3 hours a day commuting back and forth and barely have any time with my kids during the week. I leave home at 5am and don't get back until about 7pm each day, so you could understand my stress levels. The business would be a local service oriented business that only has daytime hours so that would help with the family life considerably. I would be able to start part time initially but would eventually have to leave the security of my job if I really wanted to make it. With 2 young kids and a mortgage it is kind of nerve racking to take that jump. I guess I just wanted to hear from any of you that took that jump and how you felt about your experiences. Thanks , it is kind of theraputic to talk about it ,because it sits on my mind all day.
steve_paul Posted January 31, 2007 Report Posted January 31, 2007 I have done it and not sure what to say. Myself, personnally, having to do it all over again in the same position you are in, I would not have done it. Too many sleepless nights wondering who to juggle, the bank, the suppliers, etc to ensure food on the table. Of course, the stress is different than being in a job I was unhappy in. I escaped that but created a new set of stresses much worse. On the other hand, hard to tell someone not to follow their dreams. Just be very realistic in your financial predictions, what you will need to live on in the next few years, etc. Take the time to put together a very good business plan - many templates are available on the internet. If you can't put a business plan together for your own business, reconsider going into that business because for the most part you will be all you have to fall back on. Good luck whatever you decide - hopefully whatever path you choose makes you happy.
bigfish1965 Posted January 31, 2007 Report Posted January 31, 2007 I'm doing both. The web business is good, but horribly cyclical. Plus I can't give up the benefits they give at my day job. So for now it is 70 hour work weeks for me during the winter.
GbayGiant Posted January 31, 2007 Report Posted January 31, 2007 I don't think I would risk it if I had a family to support, but you could take all your spare time ( the little that you have ) to get everything to start the business ready to go and than ask your boss for enough time off if possible to test the waters and see if it will work for you as a profitable business. My parents did what your thinking of doing and opened two small businesses, but let me tell you having there own business only made their work hours even longer it's 24/7 with small businesses, you may have less time to spend with your family.
irishfield Posted January 31, 2007 Report Posted January 31, 2007 (edited) Do it now...while you're young enough to fall on your face and still be able to re-enter the work force! And I mean that with all the sincerity in the world. If you've thought about it this hard you'll only kick yourself in the arse 20 years from now....wondering if you'd be sitting in a fishing boat on a Wednesday morning...instead of behind the desk you're behind right now. I did it 22 years ago and at the time I left an $18.65/hr job with lots of overtime. Going hiring rate at Wang, IBM and Spar Aerospace in those years was ~ $6/hr, so I'd say I left a good job at the time. .. Now with John's post...I will add that the sacrifice for independance was I missed my three kids growing up! But I'll tell you I'd never have been able to afford their average of $15k/yr (x 3 kids x 5 years average each) for University if I hadn't taken the gamble. Edited January 31, 2007 by irishfield
express168 Posted January 31, 2007 Author Report Posted January 31, 2007 (edited) If I was sitting behind a desk it might not be so bad, but I work in residential and commercial foundation construction and I don't know if I will last till 55 or 60 to collect my pension let alone what type of condition will my body will be in 25 years from now. Like you said Irish I know I am capable of getting a job in my current field in a heartbeat if it came down to it but I sure hope it doesn't. My wifes job will allow us to maintain a benefit plan for the family at least. I will be able to schedule appointments on weekends to start and maintain my current job , but hopefully as I make a name for myself I would obviously have to take it on fulltime I hope. But that is why I posted this, I wanted to hear both the pros and cons from others expeirences, because I know it is not easy and all rosy to do. Thanks for sharing your experiences and I would love to hear any others. Edited January 31, 2007 by express168
verno Posted January 31, 2007 Report Posted January 31, 2007 I would say think things through and then do it. Like wayne said you dont want to be wondering how it would have worked out. Just be smart enough to quit before you get too far in debt if it isnt going well.
Bernie Posted January 31, 2007 Report Posted January 31, 2007 (edited) All I can add is be prepared for lots of dedication to your new endeavor. When I started out there were lots of 12 to 16 hr days. Startup costs can be very expensive. Lots of worry days too. Like Irishfield my time with my kids was limited but the spare time I had was spent with them. It all worked out and now 13 years later I can relax a little bit. There are still days I wish I worked for someone else and was able to head home when the 5 o'clock whistle goes. But I am not the type to be told what do do and would never go back. I planned for 2 years before I did it and saved a few bucks by working a second job to get startup costs. Good luck and go for it PS...My last boss told me when I left "the best advise i can give you is dont accept credit. It will kill your business" He was right. I see lots of businesses go down because of that. Edited January 31, 2007 by Nipissing
Daplumma Posted January 31, 2007 Report Posted January 31, 2007 I made the jump in 1990 I was 30 years old then.I had a wife akid and a mortgage.I had an old high school bud that wanted to start up a plumbing business with me.After 8 months I had lost my buddy and the business.We sold off the assets and I bought the truck and started over.I only had about one months worth of bills in the bank so I was highly motivated.So far so good 17 years and counting.I will say that if you are thinking that you will have more family time you may want to rethink it.The first few years are a bit nerve wracking.After that you may have some time to yourself though.I still think its all a dream and I will wake up and have to go to work for someone!At your age I would say go for it but make sure you are not underfunded.You might not get lucky like I did at the time and put your family in fiscal jeopardy.If you really think you can make a go at then do it!!What type of business are you going into.PM me if you dont want to discuss it on the board.I'm in Virginia so I dont think I will be competing with you for customers.Best of luck to you. Joe
Sinker Posted January 31, 2007 Report Posted January 31, 2007 I'd say go for it. Working in construction....and concrete to boot......is gonna hurt you in the long run. I got out of construction in the last few years, and it was the best thing I've done! I had my own company for a number of years, framing houses, and its not worth the backbreaking work and long hours.......... I didn't get another job to replace my company.......I went back to school......and I'm loving it. I"m poor as dirt right now, but it will pay off in the end. If all goes well, I'll end up with a career that I enjoy and I won't be busting my back to make a good buck. What type of work are you thinking about going into on your own? Sinker
Puckhead Posted January 31, 2007 Report Posted January 31, 2007 Do it now...while you're young enough to fall on your face and still be able to re-enter the work force! And I mean that with all the sincerity in the world. That's the truth... I left my job, which paid incredibly well, to set up a competing operation (not a prick move, it was more than justified). First year was a bit of a tug but the rest has been better than I expected. It wasn't easy. I didn't have the option to work at my old job while getting the new company off the ground, naturally, but did have the ability to take some clients with - which is a nice thing to have when starting your own thing. I had to quit cold turkey and jump into the new setup straight away. 3 weeks later I find out my wife is pregnant with our first child. Yikes. Talk about picking a good time to leave. Felt like I had the weight of the world on my shoulders that first year... Bottom line, there is never a right time, only a time. Better to do it while you have less responsiblites, but not the fall on your face bit, just to have a clearer mind about it IMO. You need to focus on your plan (and make sure you have a good biz plan and a good mental strategy) the less distraction the better. Feel free to PM me if you have any questions. We leaned on a lot of good people's advice getting this thing off the ground. Heck, we still lean on lots of contacts for advice on certain things and probably always will - that's one key to good business practices, getting as much info/advice as possible before coming up with your own opinion. More than happy to answer anything that I know the answers to. Best of luck.
camillj Posted January 31, 2007 Report Posted January 31, 2007 Yep ... go for it .... I did it .... not by choice ... I was too loyal and dedicated to jump ship .. and I was too worried about the folks that needed me would be abandoned if I just moved on .... until I got the boot ... then like it or not it was time to get BUSY on something I wished I had started many years sooner .... its been the best four years of my working life .... in so many ways. You will find (even if it doesnt work exacty as you originally hope or plan) ... nothing is more rewarding than building something that can not only help you and your family but put you in a position to help others around you .... and that by the way is my definition of success Best of luck whatever you decide.
daisy_girl58 Posted January 31, 2007 Report Posted January 31, 2007 Going for your dreams I was taught by my parents how to have a self-employed business... In fact I just told my mom how much that small family business taught me skills to set the rest of my future. My husband and I just got married a year ago, one thing attracted me is how he worked hard at a pool company and then repaired computers in the evening and weekends. Well as of July 2006 I help convince him, I thought with careful budgeting, we could live off what he was making for repairs.... Right now we are able to pay the bills, maybe every once in awhile a dinner out.... But we are making it, and our business grew from 75 customers to now over 200 and still growing! We can advise you on the best way to advertise and cost efficiency...In other words we learned the hard way If you are good at whatever you do people will pay the extra to have a job done right.... Make sure you take time for yourself...and by all means FISH! it relieves stress! Lorissa...
crusty Posted January 31, 2007 Report Posted January 31, 2007 (edited) I just recently started my own heating company in Ottawa. Last time, I had time to check, it had been about two years. I got a layoff two years ago, had no kids at the time(just a mortgage) and that was the kick in the ass I required. I set up McCrostie Mechanical(shameless plug) knowing the technical side of the business, now I had to learn the suit side of things. I didn't want fail, as most sole proprietors don't. This ment working every chance I could. My first June, I worked 38 strait days. Boy I'm Glad to be paying for a boat I can't use. So the next year I hired more employees, to free up my time. This creates huge problems. Finding the right people, training, deductions, writing paychecks. Once again no fishing. My one largest complaint would have to be paperwork.... It's everywhere. Piles of it. It takes time, even if your service job ended at 5 you would do paperwork long after the kids are off to bed. Once again no fishing. If you work a 4o hour work week now, It could be worse. My pb is close to 100 hours. My word of caution DO NOT pay any franchise fees A friend of mine now owes 200,000 a sure bet that failed. unless its tims Edited January 31, 2007 by crusty
ch312 Posted January 31, 2007 Report Posted January 31, 2007 a fellow concrete dude eh? lots of money to be made in the concrete world right now so you might as well try now. i plan on registering my own business in may. i tested the waters last year and did very well on my own (actually had to stop doing side jobs because i was working too many hours) and i know that i can go on my own. sure is a nice knowing ill make alot of $$$ this year only you know if you can really handle it on your own or not. some people can do it, while others cant no matter how hard they try.
Big Cliff Posted January 31, 2007 Report Posted January 31, 2007 In 1983 I walked away from a $100,000.00/ year job and started my own business. It wasn't easy, there were a few times I had to make my mortgage payment on my VISA card but I worked at it. At one point I even took a full time job on afternoon shift and ran my business during the day. It took time but it gradually grew to the point where I was making a very comfortable living and had 12 people working for me. Should you do it or not...... that isn't something I can answer for you without knowing a lot more about you and what you are planning. The one big thing to consider is..... If you do this and a year later can't work for three months... would you still have an income? As a business owner you won't be eligable for EI or anything. Also, as others have mentioned, you can't walk out the door at 5 and leave it all behind and if you think that by owning a business you will be your own boss. Think again, the government will tell you what you have to pay and when, your customers will tell you what they want and when they want to pay for it, your suppliers will tell you what you can have and when you have to pay for it and if you ever get employees..... well, lets not even go there. I sold my business in 2003 because I got offered a lot of money for it and I realized that if anything were to happen to me 3-6 months down the road I really wouldn't have much to fall back on. (better a bird in the hand...) I could start another business today if I wanted to but would be much happier working for someone else. If you do want to sit down with me and go over everything I'd be happy to do it for you. I have a pretty good track record and a lot of experience. I've held middle or senior management positions with national companies since I was in my 20s, been involved in the start up of 5 companies (all very successful) and played a significant role in the growth of a couple of others. I have a bit of time on my hands for the next week or two and would be happy to share my experience with you if it will help. Cliff
aplumma Posted January 31, 2007 Report Posted January 31, 2007 I am selfemployeed in the plumbing industry and I am very happy that I took the step 14 years ago. I started with 10,000.00 dollars a new van and all of the tools and stock I needed on the truck. I have was worked long and hard hours for 4 years before I could start keeping "normal" hours and it was tough to do 12+ days no matter what day it was. Now it is much easier because I have learned the ins and outs of the business and have a comfortable customer base. I had alot of good advise some spoken some observed and Daplumma helped me when I got too slow. ( thanks Joe) If I were you and I had an offer from Cliff to talk about it I would travel from Virginia to Canada for that meeting he has a wealth of knowledge that I would have loved to have had. Good luck and hard hours will eventually pay off just dont go into it under planned and under funded. Art
1leggedangler Posted January 31, 2007 Report Posted January 31, 2007 Wow, some solid advice from the members. I left a great sales job to start my own program 12 years ago. Just me and my girlfriend(now wife) taking on corporate Canada. I won't lie to you there were a lot of times we looked at each other and said what have we got ourselves into? But after many and I mean many long hours in the first couple of years we could see a little light at the end of the tunnel. As mentioned, please make sure you have a solid business plan and see if you can find a mentor through a business association or somebody in your field to help steer the ship. Good luck with whatever you decide. No risk, no reward! Cheers, 1leg
John Posted January 31, 2007 Report Posted January 31, 2007 Well, I'm 20 years older than you and at 33 knowing what I know now, I would do it in a heartbeat. However, firstly, don't think that the hours will improve, they won't, at least for the first few years. Secondly, perhaps the best piece of advice I can offer is no matter how simple the business is, do your due diligence and put together a business plan. Third and perhaps the best piece of advice I can give is take Big Cliff up on his offer and spend a few hours or days with him and absorb it all. You are at an age where you can recover from failure. Don't get to an age where you can't recover from regret. J...
dustink Posted January 31, 2007 Report Posted January 31, 2007 Wow, as a guy just 30 years old, with a great paying job, but not liking to sit behind the desk all day, this has been a great post!! This is why OFC is the best. Some great advise by all! If I were you and I had an offer from Cliff to talk about it I would travel from Virginia to Canada for that meeting he has a wealth of knowledge that I would have loved to have had. Good luck and hard hours will eventually pay off just dont go into it under planned and under funded.Art Yep....take up that offer from Cliff!! Good luck in whatever decision you make! dk
Zib Posted January 31, 2007 Report Posted January 31, 2007 It's funny that you posted this question because just this morning they talked about this very topic on the local news. They said that more than 90% of 1st time business owners report a loss in their 1st year of business. They said that before going into business for yourself that you should talk to other people that have started their own business. They also said that a majority of the people wished they had had some financial education prior to starting their business. I have wanted to start my own business for years. Being an accountant/tax auditor I believe I have a slight edge over those with no financial background. Problem I have is deciding what type of business that I want to start. I have several ideas but always find something negative that makes me change my mind.
crusty Posted January 31, 2007 Report Posted January 31, 2007 Zib, would the next progression for you be to become a cfp, and manage portfolios?
Headhunter Posted January 31, 2007 Report Posted January 31, 2007 My best advice to you would be as follows; -talk to people who have been there and done that... Cliff would be an excellent resource -save your money, ensuring that you have atleast 6 months worth of funds available to you, should there be a dry period with receivables -take some courses, accounting comes to mind... your not going to have challenges in the day to day work, your experience will guide you, but if you have limited experience with accounting and watching your receivables, they will cause you the most stress. -consider setting up an Incorporation rather than a Sole Proprietorship... you will have less personal liability and a lower tax rate -WATCH YOR RECEIVABLES! This is the number one reason new companies fail! HH
Zib Posted January 31, 2007 Report Posted January 31, 2007 Zib, would the next progression for you be to become a cfp, and manage portfolios? Nope. Not interested in that at all. Actually I don't want to do anything related to finance or accounting other than doing it for my own business. Being an auditor, I see a lot of businesses that waste money that they pay to CPA's that they could be doing the work themselfs.
Garyv Posted January 31, 2007 Report Posted January 31, 2007 (edited) While in my 30's my employer and I parted company, and after a few months of floating and an interview for employment in the scale business with a total jerk I decided to do something for myself ( and the family ). Here we were, US citizens in a foreign country, and stood to loose a lot of $$ if we decided to move back to the states. Without a long story we moved from Acton went into the Audio/Video and movie rental business in a town we knew no one in. In the beginning business was fantastic we made some nice income property investments, and bought into or started some other ventures including appliance, pizza, ice cream parlor, army surplus ( that was a blast ) and as few more. I took up Canadian citizenship as I loved Canada and decided I wanted a voice, however weak through my vote, in politics. As the big box nationals closed in we started to liquidate and at 55 I retired. Yes things worked out OK BUT and this is a big BUT be prepared to work your butt off ( you most likely will spend more time working than before, especially in the first few years ) and be willing to sacrifice desires to purchasing what is needed to expand the business. Be prepared for some disagreements with your spouse along the way. If everything works out you'll never look back. Edited January 31, 2007 by Garyv
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