# Should I start my own business??



## alanmoore (Dec 29, 2009)

So GO DO IT. Write your resignation letter today, walk in on Monday and drop the bomb on them.

Dont rely on canvassing for all your jobs. $200 is a lot. We are averaging $50-75 a call for our window contractors with half turning into paid jobs once they do the estimate.


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## BDiamond (Nov 2, 2009)

BamBamm5144 said:


> Ask yourself this.
> 
> Would you be considering going out on your own if your friend who passed didnt leave you 50 thousand dollars? Or are you content and happy enough where you are that if this never happened, you would be plenty happy just to go back to work tomorrow.
> 
> I know most people think of going out on there own when they think they know enough, maybe have enough money, and hate their current boss because they dont get paid enough and the boss has it so easy.


I've thought about it before but just didn't feel I had the capital to go at it. I figured I'd need at least $50K to even have a shot and I've actually told my wife that when I got $50K saved up that I would give it a shot. 

I can't say I've been chomping at the bit to do it. I'm happy with our lifestyle. I'll have to work until I'm 65 before I can retire. Both of my parents died around there so I figure I won't go too far past that. A successful business might give me an opportunity to retire earlier and enjoy life a little before I get there. 

But yes, I am relatively content doing what I'm doing now. I won't do this forever though and will ultimately get a VP position somewhere. My thought is why not be the President/CEO and Founder?


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## alanmoore (Dec 29, 2009)

festerized said:


> No offense Al, but who in their right mind would spend that much money on advertising.
> Any one from jersey can tell you who the top 10 business are in each field.
> I know most of these company’s and they don’t advertise like your suggesting. And yes we stay busy all year round


Move your operation down to the Baltimore and DC DMA's and try to compete with hardly any marketing budget. Marketing should be a % of sales and most factor in 20%. If you want to do a few hundred thousands a year, then you are looking at $5 a month. If you want to do a few hundred thousand a month, do the math. Our area has a lot of contracting companies doing millions a year in revenues. I work directly with a lot of them and know what they are doing and what they are paying. I'm not talking about the owner with a few guys who work fulltime and a couple more part timers.

Busy for you isnt busy for most companies down here. Just saying. Dont take it personally.


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## festerized (May 19, 2007)

Al No need to get hot headed
I own a taxi service for 6 years, a cleaning company for 2 years, framing contracting for 12 years and a general contractor for 6 years. I know how to run a business. And No I don’t plan on writing any resignation letter anytime soon
I’m new at the whole online market [6 months] and I’m doing pretty well at it. Just pick up some books and read, “If knowledge is power then a god am I” the Riddler
I played the Adwords game; it works great to give your company recognition. I’m running a deck ad right now. 
And no I would not relocate my business anywhere else. NJ has the most people per square mile, look it up We have one of the best economies here. I have built a reputation over the years, I was on the apprentice second season, i did some big projects in Wildwood NJ, and I built the addition on that new “table for 12” show.


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## BDiamond (Nov 2, 2009)

alanmoore said:


> So GO DO IT. Write your resignation letter today, walk in on Monday and drop the bomb on them.
> 
> Dont rely on canvassing for all your jobs. $200 is a lot. We are averaging $50-75 a call for our window contractors with half turning into paid jobs once they do the estimate.


I'm sure you know your stuff but how can you throw those stats as an average? 

There needs to be some clarification.

If it's $50-75 per call (demo) with 1/2 turning into paid jobs once they do the estimate then that's assuming he called on AT LEAST 2 people. So your numbers depend on a rep either having a consistent 100% closing rate (called on 2 and wrote 2) and 50% approval ratio (1 got approved) or a 50% closing rate (called on 2 and wrote 1) and 100% approval (1 got approved). 

Using those numbers than your cost per approved job is AT LEAST $100-150.

However, those numbers aren't realistic.

Let's assume a 40% closing rate which is decent, and a 60% approval rate which is conservative. So using your numbers a rep would have to "call" 5 people (already factoring in no shows/1 legs etc) to get 1 approved sale which is an approved sale cost of $250-375.

My $200 per approved sale is conservative. If I use what I think the numbers WILL be it's 2 canvassers for 4 hours at $12/hr. 1.35 contacts an hour for 2 days = 21 leads. I'll call and get 8 appointments out of the 21 leads. I'll demo 5. Sell 2. 1 will get approved. If I ran long term numbers that's actually 1.55 sales a week which is 6 sales a month at a canvassing cost of $832 which is actually $138 an approved sale.

If I was going to have 6 sales a month under your system using your stats then it'd be $208-$312 per approved sale.

Over a year using my system I'm saving $5040 over using your lower number of $208 per approved sale.

If your talking LEAD cost it's $9.24 a lead without factoring in phone time to set the appointment. I CERTAINLY hope you're not suggesting $50-75 a LEAD. If so I've just found what business I'm going into with NO hesitation!

If I'm wrong or misinterpreted your numbers please clarify.

Thanks for the advice and help!


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## custrel (Jun 30, 2009)

Get a business license & contractor's license to start your window company, but *keep your current job*.

Get the $50k from the will.

Take a $50k draw.

Close your business.


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## rselectric1 (Sep 20, 2009)

BDiamond,

In reading this thread, I have noticed that you have done what most guys who head out on their own choose to ignore. Actually running numbers! (or at least realistic ones)

Your wife is correct in suggesting a business plan. They are a PITA to actually write but it forces you to look for potential problems. (See how much of the 50k is left after deducting realistic start up costs) Also have a CPA do a cash flow analysis based on your figures.

If you weren't doing so well already, it would be a no-brainer.

Your stress level will absolutely, postively go up being in business for yourself.

It sounds like you have everything required to make a go of it. However if your heart is not completely in it, the results may not be what you hope for.

You have a tough decision to make. This scenario sounds like it could make a good movie! (Easy Money/Rodney Dangerfield) :laughing:

Only YOU know the answer. We'll help whenever we can.

Is there a time limit?


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## d-rock (Oct 17, 2009)

I was in the same boat. Great union foreman job, earning six digits, full benefits, pension , annuity, etc. I left it to start my own thing. I still don't know if it was the right thing, too early to tell. To be honest, I don't regret it at all. I've had to tighten the belt, and I now work crazy hours. Somehow, I knew it was something I was gonna do since forever..


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## BDiamond (Nov 2, 2009)

rselectric1 said:


> BDiamond,
> 
> In reading this thread, I have noticed that you have done what most guys who head out on their own choose to ignore. Actually running numbers! (or at least realistic ones)
> 
> ...


I'm a big numbers and metrics guy so I have been crunching numbers obsessively. My buddy told me to walk away from the numbers for 3-4 days and just see if it FEELS right. I like that idea.

Unfortunately the only reason my wife wanted a biz plan from me was to see when I accounted for her quitting her job! She was VERY interested in that. (Won't show her the part where it requires her to get a 2nd job:w00t

I have 6 months at which time the $50K will go to a charity of my choice. 

That's why my wife was looking up how to start a non-profit!!:no:

I'm gonna chill on it for a bit. I have some time. Just let the idea sink in. 

I know this will be a great source if information and I have alot of respect for you guys that have taken that step and been successful at it and those that plug away despite setbacks because it's what you want to do. 

It's interesting that someone pointed out that it appears I know my stuff, they know I built a $5M/year company from nothing but a $5000 credit card for a guy, but I'm intimidated by doing it for myself when all the numbers and experience say I'll be fine. I wonder what that's about? Hmmmm....

Thanks for the good words!


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## custrel (Jun 30, 2009)

d-rock said:


> I was in the same boat. Great union foreman job, earning six digits, full benefits, pension , annuity, etc. I left it to start my own thing. I still don't know if it was the right thing, too early to tell. To be honest, I don't regret it at all. I've had to tighten the belt, and I now work crazy hours. Somehow, I knew it was something I was gonna do since forever..


I'm right there with ya... 

Hang in there bro.


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## Mike Finley (Apr 28, 2004)

You're in an enviable position. 

There are some people who if given the opportunity of having 50k in free start up money wouldn't even hesitate about starting their own business.

You should really give a lot of consideration to the fact that you don't feel the same way. 

No burning desire, no driving entreprenurial desire to go into business? No financial sword hanging over your head? You'll be at a serious disadvantage. As a salesmanager you know like I do that the salesman who has the new car, the new baby, the new house, the new boat payment is the salesman that will be out there busting hump, and outselling everybody else.

By the way -- this owner you are talking about--



BDiamond said:


> I see the company I work for now making mistakes every day that affect their potential for growth. The owner doesn't really let any suggestions filter through so I get very frustrated in my current position just sitting here watching the madness ensue.


That will be you, and you'll have a guy working for you who is thinking the same thing about you.

That's the way it works. :laughing:


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## atrawlings (Feb 9, 2009)

Now THIS is a good thread. I really appreciate your openness and honesty of your situation. With precious little information, none of us can tell you what to do...as a man's path is his own. BUT....this is contractor TALK so here you go...

Your friend sounds like a gem...I'm sorry he's gone from your life. His gift to you was to get you to think about your life...it was not the $50k. To take advantage of using the money to start a business is a huge blunder. As was said before...$50k will go very quickly.

It may very well be that you possess many skills that would serve your business well but you are lacking that one thing...that one burning desire...unexplainable to its origin or depths...but a drive to take yourself higher and further than you currently stand.

Don't get me wrong...you are currently in an enviable position...a place that many aspire to...but also a place that others look back to and are thankful to no longer be bound.

A good friend, who has also passed on, once told me: "Don't let something good be the enemy of something better." The key is...knowing when what you have, and where you are is exactly what YOU want.


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## lawndart (Dec 3, 2006)

Think about this:

Your friend,(who you probably looked up to) was obviously a good business man left you $50,000 because he believed without a doubt in his mind that you have the skills to run and operate a sucessful business. What do you believe? Good luck :thumbsup:


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## alanmoore (Dec 29, 2009)

Sometimes others have more confidence in the person then they do. There still seems to be a lot more soul searching for him to to.

The bottom line is this, if your $100k a year job went away or you didnt have that crutch right now, would you go into business for yourself?

You also need to realize that you are being paid 6 figures a year by your current boss, whom you would be in competition with in the future. Obviously there is money to be made HENCE your double your area salary. But if you go into business against your old boss, dont think for a second that he wont bring you to court as I am confident he was smart enough to get you to sign a non-compete or non-solicitation agreement. If he didnt, he is a fool.


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## BDiamond (Nov 2, 2009)

So here's the conclusion. Decided "what the hell--let's go for it". I can make money selling anything so if it doesn't go well go get another sales job. 

So I told the president of the company my situation, what my plans were, and that I was going to resign and I'd help someone make the transition so I wanted to put a plan together to make that happen. 

He asked if I would be asking for my job back if things didn't go well and I told him no. I'd probably ramp up my consulting business. He asked if I had any suggestions for his company before I left. 

I ran through a bunch of stuff. He asked my how I'd go about making those changes. I told him it'd cost him. I was making a joke and thought, "that was probably dumb since the guy's paying you six figures and you might have to come back."

So he says, "How about VP of New Business Development and a 40% raise and bonuses?".....Huh??

He offered me a promotion to stay. 

With bonuses I'll almost double my pay, I'd be working less hours, less travel, my wife could quit if she wants, and I'd have my own department with staff. 

Sooooooo....I think the company thing is done. I worked out a deal with the president of my company that with it's contribution and Dave's $50K entrepreneurs can apply for a $4000 grant to help them get their business started through the local SBA and SCORE organization. This way Dave's money doesn't help just get 1 business started--it may help dozens. :thumbsup:

Thanks for all the candid advice. I truly respect all of you who strive to be successful everyday and still take time to share your experience and knowledge with others. Hopefully my contributions have helped and I look forward to mixing it up with you guys some more!


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## rselectric1 (Sep 20, 2009)

Sounds like the right decision to me!:thumbsup:


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## alanmoore (Dec 29, 2009)

Good deal. I bet him counter-offering never entered your mind either. Good for you and your family.


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## cretebug (Feb 8, 2010)

Even with finacial backing and all of the work you could possible handle, a new business is like a new baby...it requires all of your attention to raise it. I have found a balance that allows me to take the work I want for the money I need. In todays clilmate you almost have to give your work away if you want to work at all so you will have to work extra hard and hope your sales hat is pointy.


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## carolinahandyma (Jan 6, 2006)

There are both pros and cons to receiving and accepting a counter offer after resigning a job. Take a look at some of these counter offer suggestions http://www.careerknowhow.com/guidance/counter.htm

Good luck to you.


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## alanmoore (Dec 29, 2009)

Right off that link that I feel is of importance to this conversation.

Being made an attractive counter offer is instantly good for your ego, but you must take a number of things into consideration before saying “thanks” or “no thanks”:

You have only received a counter offer because you resigned. It is a purely reactive tactic from your employer and should make you wonder whether you need to resign every time you want to improve your situation. If your employer thought you were truly worthy, why didn’t they improve your situation anyway?
Do your reasons for wanting to leave still exist? You may have a number of reasons – salary too low, no promotion in sight, don’t like your boss. You may be offered more money to stay, which can be tempting, but if you still have other issues outstanding, you’ll probably end up leaving anyway.
Despite what your employer is saying to you, they will probably now consider you a risk and may make contingency plans without your knowledge. You may not be seen as a true member of the team
The counter offer could simply be an interim tactic from your employer to bridge a gap whilst they look to replace you.
Much research and many surveys have been completed over the years to measure what happens to employees who accept counter offers. Only 6 out of 100 employees are still with their company after 12 months, and 2 important points become apparent:

Salary was hardly ever the prime motivator for resigning – more money didn’t ultimately change the true state of play
Things didn’t take long to return to the way they were before the resignation
Before accepting a counter offer, ask yourself why your employer has made the offer. There is a strong possibility that the cons will outweigh the pros and you will realize that your decision to resign was right after all.


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## On The Rock (Feb 5, 2010)

alanmoore said:


> You have only received a counter offer because you resigned. It is a purely reactive tactic from your employer and should make you wonder whether you need to resign every time you want to improve your situation. If your employer thought you were truly worthy, why didn’t they improve your situation anyway?


A wise person will consider this point well worthy of import. This is why I so strongly dislike being a "squeaky wheel." If I can't get the "grease" I need to function in my job from my employer unless I complain, then one of two things is going on. Either A) My boss's business awareness is high (which is good), but in spite of their knowledge of what an appropriate compensation package is for me, they pay me the least to keep the most in their pocket, or B) My boss's business awareness is low, and they don't realize the value of the work I'm doing for them. In the first case, I am a fool to trust my employer because of their intentions. In the second case, I am a fool to trust my employer because of their ignorance.

When a person who hires me demonstrates an awareness of my needs by meeting those needs _without_ my having to prompt them (that is, directly inform them), that evokes a loyalty from me that will cover a multitude of imperfections and bridge nearly any gap....


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## BuenaHomes (Jun 13, 2007)

*self-promoting?*

no offense, but to mee, sounds like you are promoting your services among contractors in a clever manner, I maybe wrong, if i'm wrong I apologize.:notworthy


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## On The Rock (Feb 5, 2010)

BuenaHomes said:


> no offense, but to mee, sounds like you are promoting your services among contractors in a clever manner, I maybe wrong, if i'm wrong I apologize.:notworthy


Not sure if this is referring to the OP or to the post just before yours, but if it is referring to the post just before yours, I know that promoting one's services is against CT's rules.

I was only expounding on an excellent point made by alanmoore concerning BDiamond's situation. I could have expounded on the point using the third person, but then my statement would not have been absolutely true.

I am a business owner who is trying to distance himself from the practice of subbing, since my experience is that too many GC's don't compensate fairly for value. I did not join CT to promote my services; I joined to contribute what I know as an expression of my gratitude for the valuable knowledge I'd received from CT. In fact, if I were offered work by a CT member, I would decline it just so no one could say anything bad about my motives for posting.

Maybe that'll clear up any misunderstanding, unless it was BDiamond you were referring to, but it didn't seem to me like BDiamond was promoting his services, either. If you use the "quote" button, that'll help in the future.


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## Mike Finley (Apr 28, 2004)

On The Rock said:


> When a person who hires me demonstrates an awareness of my needs by meeting those needs _without_ my having to prompt them (that is, directly inform them), that evokes a loyalty from me that will cover a multitude of imperfections and bridge nearly any gap....


As an employer I quite frankly don't like that.

While I do not try to underpay employees because besides all the other obvious reasons, it's also quite short sighted in regard to turn over, however after an employee gets to a equilibrium wage I'm not going to go up to them every incremental 6 or 12 months and say, guess what you get a raise for breathe air for the last 12 months congratulations! :no:

Employees are a means of the company to perform the companies service, deliver it's product and create a profit. The more valuable an employee is to delivering that profit the more they are worth. If you want a raise it's time to speak up and tell me why you deserve it. Because your wife is pregnant isn't a good reason. Because we have a meeting together, discuss where you need improvement and where you can make changes to become more valuabe, set a time table for the goals and then see if you hit them, that's how an employee gets a raise.

To sit back and stew about it every day that nobody comes up to you week after week to announce YOU WON A RAISE!!! is silly.


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## On The Rock (Feb 5, 2010)

Mike Finley said:


> To sit back and stew about it every day that nobody comes up to you week after week to announce YOU WON A RAISE!!! is silly.


I can understand your point of view, Mike, but at the risk of remaining misunderstood, I'm going to bow out of this thread, as any further involvement on my part will look like hijacking....


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